Southern District of New York

The Justice Department today announced an eight-count indictment charging Mohammad Baqer Saad Dawood Al-Saadi, a dual Iranian-Iraqi national, with terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (IRGC), two U.S. designated foreign terrorist organizations (FTOs), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States. 

“As alleged in this indictment, Al-Saadi has been directly involved in terrorist operations and military decisions to attack U.S. and Israeli interests across the world and conspired with others to plan deadly attacks on American soil,” said Acting Attorney General Todd Blanche. “Now that he has been removed from his perch as an alleged commander of Kata’ib Hizballah with close ties to the Iranian regime and its proxies around the world, we look forward to vigorously prosecuting him under American law in an American courtroom.”

“As alleged, Mohammad Baqer Saad Dawood Al-Saadi worked with Iranian-backed terrorist organizations to direct successful attacks that targeted civilians and attempted to target civilians in the United States,” said U.S. Attorney Jay Clayton for the Southern District of New York.  “Al-Saadi claims to be part of the ‘resistance,’ a group that includes the IRGC, an Iran-based designated foreign terrorist organization.  These organizations have a stated goal of destroying our society and our collective commitment to freedom, security, and a better world for our children.  The IRGC’s claims are not just rhetoric, they are taking action around the world to undermine America and American values.  All Americans should recognize that we have sworn enemies and when your enemies tell you something, and when they act, you should know that they mean it.  For over 40 years, Iranian-backed groups, including the IRGC, have been committed to bringing terror to our shores, and our Office is proud to join with our colleagues across the Justice Department, the FBI, the NYPD, and many other partners to bring these groups to justice.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel. “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units, interagency partners and our allies around the world who delivered yet again.  This FBI will use our vast resources to detect and stop acts of terrorism and will work with our Justice Department partners to make sure those who engage in such actions are held accountable.”

According to the allegations contained in the Indictment and other public court filings, Al-Saadi, a longtime operative of Kata’ib Hizballah and the IRGC, has furthered the terrorist goals of those groups since at least in or about 2017. Al-Saadi allegedly has worked closely with senior leaders of both terrorist organizations and, following U.S. airstrikes killing certain of those terrorist leaders, has directed others to exact retribution by killing U.S. citizens and U.S. political and military leaders. In addition, as alleged, in recent months, Al-Saadi has helped plan and direct approximately 18 attacks and attempted attacks across Europe on behalf of those terrorist organizations (the “European Terrorist Attacks”). Those attacks were carried out in the name of a purportedly new terrorist group with the pseudonym Harakat Ashab al-Yamin al-Islamiya, which is actually a front of Kata’ib Hizballah and other U.S. designated FTOs.

In addition, in or about March and April 2026, Al-Saadi attempted to carry out attacks in the United States, including against a synagogue in New York, New York. Most recently, on or about April 30, Al-Saadi tried to find someone in the United States who could carry out a terrorist attack and kill or injure individuals here. Specifically, that day Al-Saadi called an individual in the United States (SOI-1) and asked if SOI-1 knew someone who could “attack” in the United States, including by “burning, . . . or whatever he can,” including “killing.”  The next day, however, Al-Saadi, who was based in Iraq, was detained while traveling abroad.

On or about May 14, Al-Saadi was transferred into the custody of the FBI and transported to the United States, where he was brought to the Southern District of New York. Several electronic devices that Al-Saadi had been traveling with, including an Apple iPhone (the “Al-Saadi Phone”), were also transferred into the custody of the FBI. While in FBI custody en route to the United States, Al-Saadi waived his Miranda rights and voluntarily made statements to U.S. law enforcement agents. Al-Saadi stated, in substance and in part, that he was a leader of “the resistance,” which he explained encompasses the IRGC and its proxies, including Kata’ib Hizballah, Hizballah, and the Houthis, all of which are U.S. designated foreign terrorist organizations. As part of his role in “the resistance,” Al-Saadi stated that he was in charge of media and psychological warfare, including against the United States, as well as strategy and military intelligence. Al-Saadi was also responsible for media for Harakat Ashab al-Yamin al-Islamiya, as part of his role handling media for the “resistance.” Al-Saadi explained that the propaganda videos of the European Terrorist Attacks were part of the “psychological warfare” that “the resistance” was waging against the United States, designed to instill fear and terror in civilians. 

Al-Saadi also described his close relationships with the current and former leadership of the IRGC.  Al-Saadi said he was like a son of Qasem Soleimani, the longtime commander of the IRGC Quds Force (IRGC-QF) who was killed during a U.S. airstrike in or about 2020. According to Al-Saadi, prior to Soleimani’s death, Al-Saadi constantly traveled with him and was supposed to be driving Soleimani to meet Abu Mahdi al-Muhandis, then the leader of Kata’ib Hizballah, the day that Soleimani and al-Muhandis were killed in a U.S. airstrike.  Al-Saadi further stated that he was also close with Iran’s former Supreme Leader, Ayatollah Ali Khamenei. Al-Saadi explained that approximately three days before the current conflict with Iran began on or about Feb. 28 and Khamenei was killed, Al-Saadi met with Khamenei in Iran.

Al-Saadi’s social media accounts and the Al-Saadi Phone also contain evidence of Al-Saadi’s allegedly longstanding role supporting the IRGC, Kata’ib Hizballah, and Hizballah, as well as of his direct involvement in the planning, execution, and promotion of the European Terrorist Attacks.

For example, the Al-Saadi phone contains videos and photos of Al-Saadi meeting with the leadership of the IRGC, Kata’ib Hizballah, and the Houthis; images glorifying the IRGC and Hizballah; and videos and photos reflecting Al-Saadi’s own role as a commander in Kata’ib Hizballah, with access to machineguns and other dangerous weapons, including a video of Al-Saadi meeting with Soleimani (the former leader of the IRGC-QF) and Akram ‘Abbas al-Kabi (a U.S.-designated terrorist and one of the main operatives in Iraq of the IRGC-QF) in what appears to be an underground operations center. Below are screenshots from the video, showing (i) from left to right, al-Kabi, Soleimani, and Al-Saadi together, and (ii) other individuals in the same room dressed in military uniforms.

Another photo, shown below, from on or about Feb. 12, 2024, of Al-Saadi standing in front of an array of machineguns in a conference room that Al-Saadi, in his post-arrest interview, stated was located in a building that at the time was used for “military intelligence” for “the resistance.” The room has a map on the wall of what appears to be the United States accompanied by a list of “legitimate targets” (redacted here) identifying a number of prominent former and current U.S. officials.

Al-Saadi’s social media accounts and the Al-Saadi Phone also contain evidence of Al-Saadi’s role in the planning, execution, and promotion of the European Terrorist Attacks. Al-Saadi participated in FaceTime calls with attackers as they were carrying out certain of the European Terrorist Attacks in real time, filmed those attacks as they were being conducted, helped create and disseminate propaganda videos of the attacks, discussed with a Kata’ib Hizballah member the need to engage in “psychological warfare” and the timing for certain of the attacks, and warned the Kata’ib Hizballah member about an attacker who had been arrested.

For example, on or about April 14, Al-Saadi received on an encrypted messaging application videos of two men dressed in hazmat suits, with the Harakat Ashab al-Yamin al-Islamiya logo taped to each suit, and a drone that appears to have two vials of white powder attached to it.  Screenshots from these videos are shown below. The content of these videos is consistent with the propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram on or about April 16, 2026, in which it claimed that its members had attacked the Israeli Embassy in London using drones that were loaded with dangerous carcinogenic and radioactive materials. 

A video from on or about April 18 — the day of one of the European Terrorist Attacks against a synagogue in London — of Al-Saadi and approximately three or four other men on a FaceTime video call. The video call is projected onto a large screen against the background of the Harakat Ashab al-Yamin al-Islamiyah logo. Al-Saadi is recording the attack through the call. In the video, one of the men, in English, instructs the individual on the other end of the call to execute the attack, directing that individual to take a lighter and “light one in your hand,” “light it” and “throw the fourth one.” Below is a screenshot from the video, with Al-Saadi, filming the attack, circled in red: 

The Al-Saadi Phone also contains evidence that the European Terrorist Attacks were conducted on behalf of and in coordination with Kata’ib Hizballah and related terrorist organizations, and that Harakat Ashab al-Yamin al-Islamiya was just a front of those organizations. For example, one of Al-Saadi’s primary phone contacts is a member of Kata’ib Hizballah (the “Kata’ib Hizballah Contact”), with whom Al-Saadi was constantly in touch during the European Terrorist Attacks. Al-Saadi exchanged with the Kata’ib Hizballah Contact propaganda videos of certain of the European Terrorist Attacks, which Al-Saadi instructed the Kata’ib Hizballah Contact to post on news outlets. In doing so, Al-Saadi explained that “[t]he most important thing is that within the psychological warfare, they [referring to Harakat Ashab al-Yamin al-Islamiya’s messages] are useful,” and that “anything that distracts the enemy is useful.”  For example, on or about April 29, 2026 — the day two Jewish men, including a dual U.S.-British citizen, were stabbed in London in one of the European Terrorist Attacks — Al-Saadi instructed the Kata’ib Hizballah Contact to “post it in the news[,] important,” referring to video footage of that attack, including a propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram in which it claimed credit for that attack. That same day, Al-Saadi sent the following message to the Kata’ib Hizballah Contact:  “If God grants us success tonight, there will be a shooting at a restaurant.”  Al-Saadi, however, was detained shortly after he sent that message.

*               *                *

Al-Saadi, 32, of Iraq and Iran, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) attempted acts of terrorism transcending national boundaries, which carries a maximum penalty of life in prison, (vi) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; (vii) attempted destruction of property by means of fire or explosive, which carries a minimum penalty of five years in prison and a maximum penalty of 20 years in prison; and (viii) financing terrorism, which carries a maximum penalty of 20 years in prison.

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

FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office’s Counterterrorism Division investigated the case. Assistance was provided by the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, and the New York State Police. 

This prosecution is being handled by the National Security and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner for the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

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, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., and Assistant Director in Charge of the Washington Field Office of the FBI, Darren Cox, announced today an eight-count indictment charging MOHAMMAD BAQER SAAD DAWOOD AL-SAADI, a dual Iranian-Iraqi national, with terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (“IRGC”), two U.S. designated foreign terrorist organizations (“FTOs”), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States.  The case has been assigned to U.S. District Judge Colleen McMahon.   

“As alleged, Mohammad Baqer Saad Dawood Al-Saadi worked with Iranian-backed terrorist organizations to direct successful attacks that targeted civilians and attempted to target civilians in the United States,” said U.S. Attorney Jay Clayton.  “Al-Saadi claims to be part of the ‘resistance,’ a group that includes the IRGC, an Iran-based designated foreign terrorist organization.  These organizations have a stated goal of destroying our society and our collective commitment to freedom, security, and a better world for our children.  The IRGC’s claims are not just rhetoric, they are taking action around the world to undermine America and American values.  All Americans should recognize that we have sworn enemies and when your enemies tell you something, and when they act, you should know that they mean it.  For over 40 years, Iranian-backed groups, including the IRGC, have been committed to bringing terror to our shores, and our Office is proud to join with our colleagues across the Justice Department, the FBI, the NYPD, and many other partners to bring these groups to justice.”

“As alleged in this indictment, Al-Saadi has been directly involved in terrorist operations and military decisions to attack U.S. and Israeli interests across the world and conspired with others to plan deadly attacks on American soil,” said Acting Attorney General Todd Blanche.  “Now that he has been removed from his perch as an alleged commander of Kata’ib Hizballah with close ties to the Iranian regime and its proxies around the world, we look forward to vigorously prosecuting him under American law in an American courtroom.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel.  “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units, interagency partners and our allies around the world who delivered yet again.  This FBI will use our vast resources to detect and stop acts of terrorism and will work with our Justice Department partners to make sure those who engage in such actions are held accountable.”

According to the allegations contained in the Indictment and other public court filings:(1)

AL-SAADI, a longtime operative of Kata’ib Hizballah and the IRGC, has furthered the terrorist goals of those groups since at least in or about 2017.  AL-SAADI allegedly has worked closely with senior leaders of both terrorist organizations and, following U.S. airstrikes killing certain of those terrorist leaders, has directed others to exact retribution by killing U.S. citizens and U.S. political and military leaders.  In addition, as alleged, in recent months, AL-SAADI has helped plan and direct approximately 18 attacks and attempted attacks across Europe on behalf of those terrorist organizations (the “European Terrorist Attacks”).  Those attacks were carried out in the name of a purportedly new terrorist group with the pseudonym Harakat Ashab al-Yamin al-Islamiya, which is actually a front of Kata’ib Hizballah and other U.S. designated FTOs.

In addition, in or about March and April 2026, AL-SAADI attempted to carry out attacks in the United States, including against a synagogue in New York, New York.  Most recently, on or about April 30, 2026, AL-SAADI tried to find someone in the United States who could carry out a terrorist attack and kill or injure individuals here.  Specifically, that day AL-SAADI called an individual in the United States (“SOI-1”) and asked if SOI-1 knew someone who could “attack” in the United States, including by “burning, . . . or whatever he can,” including “killing.” The next day, however, AL-SAADI, who was based in Iraq, was detained while traveling abroad.

On or about May 14, 2026, AL-SAADI was transferred into the custody of the FBI and transported to the United States, where he was brought to the Southern District of New York.  Several electronic devices that AL-SAADI had been traveling with, including an Apple iPhone (the “AL-SAADI Phone”), were also transferred into the custody of the FBI.   While in FBI custody en route to the United States, AL-SAADI waived his Miranda rights and voluntarily made statements to U.S. law enforcement agents. AL-SAADI stated, in substance and in part, that he was a leader of “the resistance,” which he explained encompasses the IRGC and its proxies, including Kata’ib Hizballah, Hizballah, and the Houthis, all of which are U.S. designated foreign terrorist organizations.  As part of his role in “the resistance,” AL-SAADI stated that he was in charge of media and psychological warfare, including against the United States, as well as strategy and military intelligence.  AL-SAADI was also responsible for media for Harakat Ashab al-Yamin al-Islamiya, as part of his role handling media for the “resistance.”  AL-SAADI explained that the propaganda videos of the European Terrorist Attacks were part of the “psychological warfare” that “the resistance” was waging against the United States, designed to instill fear and terror in civilians. 

AL-SAADI also described his close relationships with the current and former leadership of the IRGC. AL-SAADI said he was like a son of Qasem Soleimani, the longtime commander of the IRGC Quds Force (“IRGC-QF”) who was killed during a U.S. airstrike in or about 2020.  According to AL-SAADI, prior to Soleimani’s death, AL-SAADI constantly traveled with him and was supposed to be driving Soleimani to meet Abu Mahdi al-Muhandis, then the leader of Kata’ib Hizballah, the day that Soleimani and al-Muhandis were killed in a U.S. airstrike.  AL-SAADI further stated that he was also close with Iran’s former Supreme Leader, Ayatollah Ali Khamenei.  AL-SAADI explained that approximately three days before the current conflict with Iran began on or about February 28, 2026, and Khamenei was killed, AL-SAADI met with Khamenei in Iran.

AL-SAADI’s social media accounts and the AL-SAADI Phone also contain evidence of AL-SAADI’s allegedly longstanding role supporting the IRGC, Kata’ib Hizballah, and Hizballah, as well as of his direct involvement in the planning, execution, and promotion of the European Terrorist Attacks.

For example, the AL-SAADI phone contains videos and photos of AL-SAADI meeting with the leadership of the IRGC, Kata’ib Hizballah, and the Houthis; images glorifying the IRGC and Hizballah; and videos and photos reflecting AL-SAADI’s own role as a commander in Kata’ib Hizballah, with access to machineguns and other dangerous weapons, including:

A video of AL-SAADI meeting with Soleimani (the former leader of the IRGC-QF) and Akram ‘Abbas al-Kabi (a U.S.-designated terrorist and one of the main operatives in Iraq of the IRGC-QF) in what appears to be an underground operations center.  Below are screenshots from the video, showing (i) from left to right, al-Kabi, Soleimani, and AL-SAADI together, and (ii) other individuals in the same room dressed in military uniforms.

A photo, shown below, from on or about February 12, 2024, of AL-SAADI standing in front of an array of machineguns in a conference room that AL-SAADI, in his post-arrest interview, stated was located in a building that at the time was used for “military intelligence” for “the resistance.”  The room has a map on the wall of what appears to be the United States accompanied by a list of “legitimate targets” (redacted here) identifying a number of prominent former and current U.S. officials:

AL-SAADI’s social media accounts and the AL-SAADI Phone also contain evidence of AL-SAADI’s role in the planning, execution, and promotion of the European Terrorist Attacks. As described further below, AL-SAADI participated in FaceTime calls with attackers as they were carrying out certain of the European Terrorist Attacks in real time, filmed those attacks as they were being conducted, helped create and disseminate propaganda videos of the attacks, discussed with a Kata’ib Hizballah member the need to engage in “psychological warfare” and the timing for certain of the attacks, and warned the Kata’ib Hizballah member about an attacker who had been arrested.

For example, on or about April 14, 2026, AL-SAADI received on an encrypted messaging application videos of two men dressed in hazmat suits, with the Harakat Ashab al-Yamin al-Islamiya logo taped to each suit, and a drone that appears to have two vials of white powder attached to it.  Screenshots from these videos are shown below.  The content of these videos is consistent with the propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram on or about April 16, 2026, in which it claimed that its members had attacked the Israeli Embassy in London using drones that were loaded with dangerous carcinogenic and radioactive materials. 

A video from on or about April 18, 2026—the day of one of the European Terrorist Attacks against a synagogue in London—of AL-SAADI and approximately three or four other men on a FaceTime video call.  The video call is projected onto a large screen against the background of the Harakat Ashab al-Yamin al-Islamiyah logo.  AL-SAADI is recording the attack through the call.  In the video, one of the men, in English, instructs the individual on the other end of the call to execute the attack, directing that individual to take a lighter and “light one in your hand,” “light it” and “throw the fourth one.”  Below is a screenshot from the video, with AL-SAADI, filming the attack, circled in red: 

The AL-SAADI Phone also contains evidence that the European Terrorist Attacks were conducted on behalf of and in coordination with Kata’ib Hizballah and related terrorist organizations, and that Harakat Ashab al-Yamin al-Islamiya was just a front of those organizations.  For example, one of AL-SAADI’s primary phone contacts is a member of Kata’ib Hizballah (the “Kata’ib Hizballah Contact”), with whom AL-SAADI was constantly in touch during the European Terrorist Attacks.  AL-SAADI exchanged with the Kata’ib Hizballah Contact propaganda videos of certain of the European Terrorist Attacks, which AL-SAADI instructed the Kata’ib Hizballah Contact to post on news outlets.  In doing so, AL-SAADI explained that “[t]he most important thing is that within the psychological warfare, they [referring to Harakat Ashab al-Yamin al-Islamiya’s messages] are useful,” and that “anything that distracts the enemy is useful.” For example, on or about April 29, 2026—the day two Jewish men, including a dual U.S.-British citizen, were stabbed in London in one of the European Terrorist Attacks—AL-SAADI instructed the Kata’ib Hizballah Contact to “post it in the news[,] important,” referring to video footage of that attack, including a propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram in which it claimed credit for that attack.  That same day, AL-SAADI sent the following message to the Kata’ib Hizballah Contact: “If God grants us success tonight, there will be a shooting at a restaurant.”  AL-SAADI, however, was detained shortly after he sent that message.

*               *                *

AL-SAADI, 32, of Iraq and Iran, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) attempted acts of terrorism transcending national boundaries, which carries a maximum penalty of life in prison, (vi) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; (vii) attempted destruction of property by means of fire or explosive, which carries a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison; and (viii) financing terrorism, which carries a maximum penalty of 20 years in prison.

The statutory maximum and mandatory minimum penalties 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 FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office, Counterterrorism Division, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, the New York State Police, and the Department of State. 

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

1. ^

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

Jonathan Loadholt, 37, of Staten Island, New York, was sentenced today to 10 years in prison for his participation in a plot directed by the Government of Iran targeting Masih Alinejad, a journalist, author, and human rights activist. Loadholt previously pled guilty to one count of conspiracy to commit stalking and one count of conspiracy to commit money laundering before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.

“Tehran attempted to murder a U.S. journalist in the United States simply because she exposed a few of that regime’s many abuses,” said Assistant Attorney General for National Security John A. Eisenberg. “The defendant now stands convicted and sentenced to a lengthy prison sentence for his role in this plot. The Department and its colleagues will work tirelessly to protect Americans and to seek justice when our laws are broken.”

“The Government of Iran has repeatedly attempted to locate and murder Masih Alinejad, right here in New York City,” said U.S. Attorney Jay Clayton for the Southern District of New York. “The Government of Iran tried to silence Ms. Alinejad because of her efforts to stand up to the Iranian regime and expose its discriminatory treatment of women, corruption, and human rights abuses. While this plot was directed from Iran, the would-be assassins were American citizens who agreed to kill Ms. Alinejad for money — out of greed. Today’s sentence should be a serious warning to anyone who tries to profit by carrying out the wishes of a hostile foreign regime on United States soil.” 

“With today’s sentencing, Jonathan Loadholt will pay the price for participating in a plot orchestrated by Iran to kill a journalist and human rights activist who criticized the Iranian government’s policies,” said FBI Assistant Director Donald Holstead. “The FBI will use all our resources to detect and prevent anyone working for foreign powers who attempts to harm individuals living in the United States, and we will coordinate closely with the Justice Department to make sure such criminals face the full weight of American justice.”

“Jonathan Loadholt served as a hired gun to stalk, surveil, and ultimately assassinate Masih Alinejad — a United States citizen — on behalf of the IRGC,” said FBI Assistant Director in Charge James C. Barnacle Jr. “The FBI New York Joint Terrorism Task Force disrupted and arrested him before he could carry out his plan.  The FBI will squash all attempts to silence critics of oppressive regimes on American soil.”

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

In 2024, Loadholt’s friend and co-defendant, Carlisle Rivera, also known as “Pop,” a convicted murderer, was hired by Rivera’s criminal confederate, Farhad Shakeri, to murder Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (IRGC). The IRGC is a military and intelligence organization that directly reports to the Supreme Leader of the Islamic Republic of Iran and is the Government of Iran’s primary instrument for providing financial and lethal aid to proxy terror groups in the Middle East.  Among its activities, the IRGC plots and conducts attack operations outside Iran targeting, among others, U.S. citizens residing abroad and in the United States.  Ms. Alinejad is one of the IRGC’s principal targets. The IRGC and the Government of Iran’s intelligence services have long sought to kidnap or murder Ms. Alinejad because of her efforts to promote gender equality and civil liberties in Iran and to expose the regime’s corruption, oppression, and terrorism to the international community. In 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Ms. Alinejad in the U.S. for rendition to Iran; then, in 2022, the IRGC hired powerful, violent members of the Russian Mob to murder Ms. Alinejad.  After those efforts failed, the IRGC turned to Shakeri, who hired Rivera, who in turn recruited Loadholt to assist him, to kill Ms. Alinejad.

Shakeri offered Rivera $100,000 for he and Loadholt to locate and kill Ms. Alinejad, and Rivera agreed. Loadholt was recruited into the plot by Rivera and, using money sent by Shakeri, Rivera and Loadholt conducted surveillance on Ms. Alinejad with the aim of killing her.  Using money sent by Shakeri, Rivera and Loadholt purchased a firearm and “burner” cellphones. Loadholt and Rivera spent several months attempting to find and kill Ms. Alinejad, using Loadholt’s car and fake license plates, including by following her to a public speaking event at Fairfield University and repeatedly stalking the Brooklyn house where Shakeri and the IRGC believed Ms. Alinejad lived.    

During their efforts to locate and kill Ms. Alinejad, Loadholt and Rivera shared messages about their progress and photographs relating to their murder plot.  For example, in February 2024, Loadholt and Rivera messaged about an incoming payment from Shakeri, and then traveled to Fairfield University, where Ms. Alinejad was scheduled to appear, and took photographs on campus. In July 2024, Loadholt and Rivera exchanged messages discussing their expected upfront payment for murdering Ms. Alinejad.  During those messages, Loadholt expressed frustration about the apparent absence of a $10,000 advance, partial payment for Ms. Alinejad’s murder, writing to Rivera “So no 10 up front I’m guessing??” and, after Rivera confirmed no upfront payment had been made, Loadholt responded, “I’m so frustrated son I’m like ready to jump out the window.”

On November 7, 2024, before he and Rivera could complete their task of killing Ms. Alinejad, Loadholt was arrested. At Loadholt’s residence, law enforcement agents recovered, among other things, more than two dozen rounds of ammunition.

In addition to the prison term, Loadholt was sentenced to three years of supervised release.

Loadholt is the second defendant to be sentenced in this case. In January 2026, Rivera was sentenced to 15 years in prison by Judge Liman, after previously having pled guilty to one count of conspiracy to commit murder-for-hire.  Shakeri remains at large.

The case was investigated by FBI’s New York Joint Terrorism Task Force, which principally consists of agents and analysts from the FBI and detectives from the New York City Police Department, and the FBI Washington Field Office. U.S. Attorney Clayton thanked the Department of Justice’s National Security Division, the U.S. Customs and Border Protection New York Field Office, the Drug Enforcement Administration New York Division, and the New York State Police.

This case is being handled by the U.S. Attorney’s Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig and Michael D. Lockard for the Southern District of New York are in charge of the prosecution, with assistance from Leslie Esbrook of the Counterintelligence and Export Control Section.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Donald Holstead, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced that JONATHAN LOADHOLT was sentenced today to 10 years in prison for his participation in a plot directed by the Government of Iran targeting Masih Alinejad, a journalist, author, and human rights activist.  LOADHOLT previously pled guilty to one count of conspiracy to commit stalking and one count of conspiracy to commit money laundering before U.S. District Judge Lewis J. Liman, who imposed today’s sentence. 

“The Government of Iran has repeatedly attempted to locate and murder Masih Alinejad, right here in New York City,” said U.S. Attorney Jay Clayton.  “The Government of Iran tried to silence Ms. Alinejad because of her efforts to stand up to the Iranian regime and expose its discriminatory treatment of women, corruption, and human rights abuses.  While this plot was directed from Iran, the would-be assassins were American citizens who agreed to kill Ms. Alinejad for money—out of greed.  Today’s sentence should be a serious warning to anyone who tries to profit by carrying out the wishes of a hostile foreign regime on United States soil.” 

“Tehran attempted to murder a U.S. journalist in the United States simply because she exposed a few of that regime’s many abuses,” said Assistant Attorney General for National Security John A. Eisenberg.  “The defendant now stands convicted and sentenced to a lengthy prison sentence for his role in this plot.  The Department and its colleagues will work tirelessly to protect Americans and to seek justice when our laws are broken.”

“With today’s sentencing, Jonathan Loadholt will pay the price for participating in a plot orchestrated by Iran to kill a journalist and human rights activist who criticized the Iranian government’s policies,” said FBI Assistant Director Donald Holstead.  “The FBI will use all our resources to detect and prevent anyone working for foreign powers who attempts to harm individuals living in the United States, and we will coordinate closely with the Justice Department to make sure such criminals face the full weight of American justice.”

“Jonathan Loadholt served as a hired gun to stalk, surveil, and ultimately assassinate Masih Alinejad—a United States citizen—on behalf of the IRGC,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI New York Joint Terrorism Task Force disrupted and arrested him before he could carry out his plan.  The FBI will squash all attempts to silence critics of oppressive regimes on American soil.”

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

In 2024, LOADHOLT’s friend and co-defendant, CARLISLE RIVERA, a/k/a “Pop,” a convicted murderer, was hired by RIVERA’s criminal confederate, FARHAD SHAKERI, to murder Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (“IRGC”).   The IRGC is a military and intelligence organization that directly reports to the Supreme Leader of the Islamic Republic of Iran and is the Government of Iran’s primary instrument for providing financial and lethal aid to proxy terror groups in the Middle East.  Among its activities, the IRGC plots and conducts attack operations outside Iran targeting, among others, U.S. citizens residing abroad and in the United States.  Ms. Alinejad is one of the IRGC’s principal targets.  The IRGC and the Government of Iran’s intelligence services have long sought to kidnap or murder Ms. Alinejad because of her efforts to promote gender equality and civil liberties in Iran and to expose the regime’s corruption, oppression, and terrorism to the international community.  In 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Ms. Alinejad in the U.S. for rendition to Iran; then, in 2022, the IRGC hired powerful, violent members of the Russian Mob to murder Ms. Alinejad.  After those efforts failed, the IRGC turned to SHAKERI, who hired RIVERA, who in turn recruited LOADHOLT to assist him, to kill Ms. Alinejad. 

SHAKERI offered RIVERA $100,000 for he and LOADHOLT to locate and kill Ms. Alinejad, and RIVERA agreed.  LOADHOLT was recruited into the plot by RIVERA and, using money sent by SHAKERI, RIVERA and LOADHOLT conducted surveillance on Ms. Alinejad with the aim of killing her.  Using money sent by SHAKERI, RIVERA and LOADHOLT purchased a firearm and “burner” cellphones.  LOADHOLT and RIVERA spent several months attempting to find and kill Ms. Alinejad, using LOADHOLT’s car and fake license plates, including by following her to a public speaking event at Fairfield University and repeatedly stalking the Brooklyn house where SHAKERI and the IRGC believed Ms. Alinejad lived.    

During their efforts to locate and kill Ms. Alinejad, LOADHOLT and RIVERA shared messages about their progress and photographs relating to their murder plot.  For example, in February 2024, LOADHOLT and RIVERA messaged about an incoming payment from SHAKERI, and then traveled to Fairfield University, where Ms. Alinejad was scheduled to appear, and took photographs on campus.  In July 2024, LOADHOLT and RIVERA exchanged messages discussing their expected upfront payment for murdering Ms. Alinejad. During those messages, LOADHOLT expressed frustration about the apparent absence of a $10,000 advance, partial payment for Ms. Alinejad’s murder, writing to RIVERA “So no 10 up front I’m guessing??” and, after RIVERA confirmed no upfront payment had been made, LOADHOLT responded, “I’m so frustrated son I’m like ready to jump out the window.”

On November 7, 2024, before he and RIVERA could complete their task of killing Ms. Alinejad, LOADHOLT was arrested.  At LOADHOLT’s residence, law enforcement agents recovered, among other things, more than two dozen rounds of ammunition.

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In addition to the prison term, LOADHOLT, 37, of Staten Island, New York, was sentenced to three years of supervised release.

LOADHOLT is the second defendant to be sentenced in this case.  In January 2026, RIVERA was sentenced to 15 years in prison by Judge Liman, after previously having pled guilty to one count of conspiracy to commit murder-for-hire. SHAKERI remains at large.

Mr. Clayton praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents and analysts from the FBI and detectives from the New York City Police Department, and the FBI Washington Field Office.  Mr. Clayton also thanked the Department of Justice’s National Security Division, the U.S. Customs and Border Protection New York Field Office, the Drug Enforcement Administration New York Division, and the New York State Police. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jacob H. Gutwillig and Michael D. Lockard are in charge of the prosecution, with assistance from Leslie Esbrook of the Counterintelligence and Export Control Section. 

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a complaint charging MICHELE SPAGNUOLO, a/k/a “AlphaRaccoon,” a software engineer at Google, with commodities fraud, wire fraud, and money laundering arising from his scheme to misappropriate confidential information from his employer and use that information to place a series of profitable Google-related trades on a prediction market platform.  SPAGNUOLO, who resides in Switzerland, was presented today before U.S. Magistrate Judge Sarah Netburn in the Southern District of New York.

“Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets,” said U.S. Attorney Jay Clayton.  “As alleged, Spagnuolo violated the duties he owed to his employer and used Google’s confidential business information to make more than $1.2 million in trading profits on Polymarket.  Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”

“Michele Spagnuolo allegedly abused his elevated access to confidential trends to place bets with nonpublic information and receive more than one million dollars in unlawful profits,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI remains dedicated to searching for fraudsters who betray their employer for personal financial gains.”

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

SPAGNUOLO is a software engineer at Google.  In connection with his role, SPAGNUOLO had access to Google’s internal data systems, including an internal software tool that provided him with access to confidential, nonpublic data.  That software tool bore a banner that stated, in part, “Google Confidential” in red text.  Indeed, SPAGNUOLO certified his understanding of various Google confidentiality and ethics policies.  SPAGNUOLO created an account on Polymarket, which is a prediction marketplace, in May 2024.  That account was known as “AlphaRaccoon.”  Shortly after accessing Google’s internal information, SPAGNUOLO used the AlphaRaccoon account to place trades in various markets on Polymarket.  In total, from on or about October 15, 2025, through on or about December 4, 2025, SPAGNUOLO used the AlphaRaccoon account to risk approximately $2,754,092 on markets related to Google’s internal information.  Soon after Google’s information was publicly announced, and the markets resolved, SPAGNUOLO’s AlphaRaccoon account profited approximately $1.2 million based on his use of inside information in connection with bets placed on Polymarket. 

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SPAGNUOLO, 36, an Italian citizen residing in Switzerland, is charged with one count of violating the Commodity Exchange Act, 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 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 the judge.

Mr. Clayton praised the outstanding work of the FBI.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Thomas Burnett, Ryan B. Finkel, and Allison Nichols 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 constitutes only allegations and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced that PAUL JORGENSEN, the former Chief Revenue Officer of Doximity, was sentenced on May 21, 2026, by U.S. District Judge Katherine Polk Failla to 26 months in prison for committing securities fraud in connection with a multimillion-dollar scheme to trade in stock and options of Doximity based on inside information in advance of the company’s quarterly earnings calls. 

“While employed as a senior executive at Doximity, Paul Jorgensen repeatedly used Doximity’s confidential information to trade in advance of the company’s quarterly earnings calls, earning himself more than $2.5 million in illegal profits,” said U.S. Attorney Jay Clayton.  “Insider trading destroys faith in the fairness and integrity of our markets.  This Office is committed to protecting market integrity and rooting out bad actors.  As this prosecution and sentence make clear, executives who trade on their company’s confidential information will be prosecuted.” 

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

JORGENSEN engaged in a scheme to reap illegal profits by trading on material nonpublic information regarding Doximity, a publicly-traded company, in violation of the duties of trust and confidence owed to the company and its shareholders.

Doximity is an online networking service for medical professionals that trades on the New York Stock Exchange under the ticker symbol “DOCS.”  JORGENSEN joined Doximity in 2017 and became Chief Revenue Officer in 2022.  As a senior executive at Doximity, JORGENSEN had access to confidential information about Doximity’s financial outlook, performance, and earnings results, and owed a duty of trust and confidence to the company.  Doximity restricted its employees from trading in the lead-up to the company’s quarterly earnings calls, and from engaging in options trading.  Doximity further required all employees to hold their Doximity shares in company-monitored brokerage accounts.

In July 2022, as Chief Revenue Officer, JORGENSEN became aware that Doximity’s add-on sales to clients, referred to as “upsells,” had declined over the previous quarter.  On July 28, 2022, JORGENSEN attended a Board meeting in advance of the upcoming earnings call in which the company’s negative results were discussed.  Following the Board meeting, JORGENSEN texted a close family member that he was “[n]ot selling [his] DOCS shares” because he had “non-public confidential info and it’s just not right to sell.”  Two days later, however, after JORGENSEN learned that he had been reassigned to a sales role at the company, JORGENSEN texted the same family member that he “decided to sell [his] DOCS shares” because he needed to “protect us first and foremost.”  The following day, JORGENSEN sold 61,162 shares of Doximity that he secretly held in a personal brokerage account.

During the company’s quarterly earnings call on August 4, 2022, Doximity publicly announced its negative results regarding upsells and lowered its annual guidance by six percent.  Doximity’s share price fell by approximately seven percent, and JORGENSEN avoided losses of more than $300,000.

In 2023, JORGENSEN again traded based on Doximity’s confidential information. In July 2023, JORGENSEN became aware that Doximity’s upsells had continued to decline over the previous quarter.  In addition, on July 13, 2023, JORGENSEN learned that he was being terminated as part of a larger round of layoffs, and that the layoffs would be announced on the company’s upcoming quarterly earnings call.  In advance of the earnings call, JORGENSEN sold 15,000 shares of Doximity stock, earning $114,000 in illicit profits, and 1,300 call options, earning an additional $200,000 in illicit profits.  JORGENSEN also purchased 4,700 put options using his personal brokerage account. 

During the company’s quarterly earnings call on August 8, 2023, Doximity publicly announced its company layoffs and negative results regarding upsells and lowered its annual guidance by eight to nine percent.  Doximity’s share price fell by approximately 23 percent.  Following the earnings call, JORGENSEN closed out his put position, earning nearly two million dollars in illicit profits.  JORGENSEN was terminated from Doximity in August 2023.

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In addition to the prison sentence, JORGENSEN, 53, of Charlotte, North Carolina, was sentenced to two years of supervised release and ordered to pay $2,532,775.52 in forfeiture.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission for its cooperation and assistance in this investigation. 

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Alexandra Rothman is in charge of the prosecution.

Sean S. Buckley, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced today that JOHN ARTHUR HANRATTY, the founder and managing director of a multimillion-dollar municipal tax lien investment firm, was sentenced by U.S. District Judge Lorna G. Schofield to 12 months and a day in prison for his role in a fraudulent scheme to steal nearly $20 million from a Federal Deposit Insurance Corporation (“FDIC”)-insured bank.  In August 2025, HANRATTY was convicted following a jury trial of wire fraud, bank fraud, and money laundering.   

“John Arthur Hanratty scammed his bank by falsely claiming to own millions of dollars of assets to secure more than $20 million in loan advances,” said Attorney for the United States Sean S. Buckley.  “In reality, the bank was left without the promised collateral and suffered millions in losses.  The defendant’s conduct, which occurred over the course of years, jeopardized the bank’s lending ability.  Today’s sentence holds the defendant accountable for his conduct.” 

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

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

Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on commercial lines of credit that had been extended to Ebury Street Capital.  Specifically, HANRATTY made materially false statements about the tax lien collateral pledged to Victim Bank-1, inflating the value of that collateral by millions of dollars by adding supposed assets that Ebury never owned.  As a result of HANRATTY’s misstatements, Victim Bank-1 was defrauded of over $20 million.  In addition, HANRATTY falsely told both his investors and Victim Bank-1 that the tax lien collateral was managed by an independent third-party custodian, when, in reality, that was not true.  HANRATTY fabricated records to hide the truth about Ebury’s actual assets and the independent custodian.  The defendant’s fraud ultimately resulted in nearly $20 million of losses for Victim Bank-1. Ebury investors also lost more than $8 million in investment capital when the defendant’s fraud unraveled and Ebury collapsed.  After fraudulently obtaining money from Victim-1, the defendant laundered that money through his business accounts for his own ends.        

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In addition to the prison term, HANRATTY, 51, of Little Silver, New Jersey, was sentenced to two   years of supervised release and ordered to forfeit approximately $17.7 million, with restitution to follow.   

Mr. Buckley praised the outstanding investigative work of the Federal Bureau of Investigation, and also thanked the FDIC Office of the Inspector General for their assistance.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati are in charge of the prosecution, with assistance from Paralegal Specialist Alexander Ross.

“Moments ago, Daniel Sikkema was found guilty of hiring a hitman to murder his husband in cold blood,” said U.S. Attorney Jay Clayton.  “Amid contentious divorce proceedings with his then-husband, Daniel Sikkema used a burner phone line to callously order the killing of his husband in Rio de Janeiro, Brazil.  As a result of great investigative work by the FBI, Daniel Sikkema’s efforts to evade detection were thwarted.  The tragedy of Brent Sikkema’s death now has a meaningful measure of justice as a unanimous jury of New Yorkers has held Daniel Sikkema accountable for this senseless, cold-blooded murder.” 

United States Attorney for the Southern District of New York, Jay Clayton, announced the settlement of a lawsuit against ROCKLAND COUNTY (“ROCKLAND COUNTY”), which will result in the completion of 36 units of affordable rental housing within the County over the next five years.

The settlement under the Fair Housing Act (“FHA”) resolves a claim that ROCKLAND COUNTY breached a Voluntary Compliance Agreement and Conciliation Agreement (“VCA”), which it entered into in 2018 with the U.S. Department of Housing and Urban Development (“HUD”).  On March 4, 2026, the United States settled the lawsuit as to the VILLAGE OF SPRING VALLEY (“SPRING VALLEY”), the other defendant in the action, which was also a party to the VCA.

“We appreciate that Rockland County, along with its codefendant, the Village of Spring Valley, will build more affordable housing and finally resolve this long-running case,” said U.S. Attorney Jay Clayton.  “More affordable housing is good for everybody—by increasing the supply of affordable units, we can help bring high housing costs down across New York and the county.”

According to the Complaint filed in White Plains federal court and the Agreement entered by the court:

The VCA between HUD, SPRING VALLEY, and ROCKLAND COUNTY resolved a prior HUD investigation into allegations regarding a private developer who used HUD funds overseen by SPRING VALLEY and ROCKLAND COUNTY to build affordable housing, but unlawfully designed and marketed the resulting units almost exclusively for sale to White Hasidic Jewish prospective homebuyers, in violation of federal law.  Administrative complaints made to HUD alleged that SPRING VALLEY and ROCKLAND COUNTY became aware of allegations that the developer was excluding interested homebuyers based on protected characteristics, but failed to ensure that appropriate remedial steps were taken before the project was completed and the units were sold.

In 2018, SPRING VALLEY and ROCKLAND COUNTY entered into the VCA with HUD to resolve those administrative complaints.  The VCA required SPRING VALLEY and ROCKLAND COUNTY to build 62 units of affordable housing, meeting specified criteria for affordability by specified deadlines.  However, only four affordable units qualifying under the VCA were built by the time this lawsuit was filed in 2025, despite an amendment of the VCA in 2021 that provided SPRING VALLEY and ROCKLAND COUNTY with additional time to complete the required units.

The resolution between the United States and ROCKLAND COUNTY, in the form of a court-approved settlement agreement (the “Agreement”), was entered yesterday by U.S. District Judge Cathy Seibel.  The Agreement requires ROCKLAND COUNTY to ensure the completion of 36 affordable housing units by April 15, 2031.  Rental units are required to be occupied by households with incomes at or below 60% of the Area Median Income for Rockland County (at or below 80% in the event that the units are owned as opposed to rented), with deed restrictions or other legal measures to ensure continued affordability for at least 50 years.  The Agreement also requires ROCKLAND COUNTY to ensure appropriate monitoring of HUD grantees and continue to provide training regarding the FHA and related federal requirements.  ROCKLAND COUNTY also agreed to pay a $10,000 civil penalty.

The United States entered into a similar agreement with SPRING VALLEY on March 4, 2026, in which SPRING VALLEY agreed to build 22 affordable rental units by December 1, 2030. The four qualifying units built before 2025, when added to the 22 units to be built under the agreement with SPRING VALLEY, and the 36 units to be built under the agreement with ROCKLAND COUNTY, approved yesterday, will equal the total number of affordable units originally required under the VCA. With this agreement with ROCKLAND COUNTY, this case is now fully resolved.

Mr. Clayton thanked the staff of HUD’s Office of Fair Housing and Equal Opportunity for their assistance in this matter.

The case is being handled by the Office’s Civil Rights Unit in the Civil Division.  Assistant U.S. Attorney David J. Kennedy, with former Assistant U.S. Attorney Samuel Dolinger, is in charge of the case.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that the founders and operators of StraightPath Venture Partners LLC (“StraightPath”) and its affiliated entities were sentenced to significant prison time for defrauding their investors, skimming money off the top, and violating their fiduciary duties.  MICHAEL CASTILLERO, a/k/a “Michael Alejandro,” and BRIAN MARTINSEN, who were also convicted of obstruction of justice, were each sentenced to 11 and 10 years in prison, respectively.  FRANCINE LANAIA was sentenced to 8 years.  CASTILLERO, MARTINSEN, and LANAIA were convicted in November 2025 following a two-week jury trial before U.S. District Judge Jesse M. Furman, who imposed today’s sentences.

“Our private markets are the lifeblood of small and medium-sized businesses as well as tomorrow’s global giants,” said U.S. Attorney Jay Clayton.  “Small and medium-sized business drive domestic employment.  Our global giants in tech, energy, finance, life sciences, and other industries contribute greatly to the welfare of every American and provide strength on the world stage.  Those companies, their investors, their employees, and all Americans benefit from our private markets.  We, along with our partners at the SEC and law enforcement, are committed to ensuring that our private markets function well and fairly, and we are committed to rooting out bad actors.  The federal prison sentences imposed today send a message that private market frauds will be met with vigorous criminal prosecution.”

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

From 2017 through April 2022, CASTILLERO, LANAIA, and MARTINSEN engaged in a scheme to defraud investors in nine related private funds known as the “StraightPath Funds.”  Using “boiler room”-style call centers, the defendants marketed the funds as opportunities to invest in privately held companies at favorable prices before anticipated public offerings.  Despite representing to investors that no upfront fees would be charged, the defendants acquired pre-IPO shares and resold them to investors at arbitrarily inflated markups without disclosure.  The defendants also misled investors regarding the nature of their investments and hid the involvement of CASTILLERO and LANAIA, who had been previously barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”).  Moreover, in order to evade detection of their scheme, CASTILLERO and MARTINSEN destroyed records and otherwise obstructed the efforts of the United States Securities and Exchange Commission (“SEC”) to uncover the defendants’ fraud on investors.

Through the scheme, CASTILLERO, LANAIA, and MARTINSEN acquired nearly $400 million from investors.  They pocketed approximately $25 million each over the course of the fraud, and they also diverted investor funds to pay their associates. Altogether, the defendants and their associates misappropriated approximately $130 million in investor funds, and spent the money on luxury goods, houses, cars, watches, and a boat.

The StraightPath entities and StraightPath Funds are no longer operational and are under the control of a court-appointed Receiver tasked with taking possession of StraightPath’s assets and overseeing a plan to return value to investors.

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In addition to the prison term, CASTILLERO, 48, of Palm City, Florida; LANAIA, 61, of Northport, New York; and MARTINSEN, 49, of Palm City, Florida, were each sentenced to 3 years of supervised release.  They were also ordered to pay restitution of $115 million. The defendants were also ordered to forfeit specific real and personal property they obtained as a result of the fraud, and to pay the following forfeiture amounts: Lanaia: $24,259,128.80; Martinsen: $25,355,714.43; and Castillero: $24,279,516.80.

Mr. Clayton praised the outstanding work of the U.S. Postal Inspection Service.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed parallel civil actions.

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

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

United States Attorney for the Southern District of New York Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced the arrests of eleven defendants in connection with a multimillion-dollar scheme to evade tolls and parking and traffic tickets using fraudulently obtained temporary license plates.  The defendants are charged in a five-count indictment with offenses including wire fraud and access device fraud. All eleven defendants were arrested between May 19, 2026 and May 20, 2026, and nine of the eleven are expected to appear in White Plains federal court before U.S. Magistrate Judge Victoria Reznik.  Felix DeJesus Jimenez is expected to be presented before U.S. Magistrate Judge Brian S. Meyers in the Eastern District of North Carolina.  RAMON ELIGIO DEJESUS PERALTA is expected to be presented before U.S. Magistrate Judge Marty Fulgueira Elfenbein in the Southern District of Florida.

“For over five years, the defendants allegedly conspired to use fraudulently obtained temporary license plates, or ‘temp tags,’ to avoid fees, tolls, and parking traffic tickets,” said U.S. Attorney Jay Clayton.  “Their schemes deprived New York State and New York City of millions of dollars in revenue.  Hard-working, honest New Yorkers were footing their bills.  This Office and our law enforcement partners are committed to protecting New Yorkers from fraud, waste, and abuse.  The defendants allegedly spent years scheming to avoid tolls and tickets.  Their bill has now come due.”

“These individuals allegedly turned temporary tags into tools for evading accountability, allowing drivers to dodge tolls, and lawful traffic penalties,” said FBI Assistant Director in Charge James C. Barnacle. “Investigations found approximately a total of $15 million in unpaid parking violations, tolls, and vehicle registrations. Not only were millions of dollars in unpaid violations uncovered, but investigators also found that certain temporary registrations and license plates were linked to multiple criminal offenses. The FBI will not tolerate bad actors violating government rules.”  

As alleged in the Indictments filed on May 13, 2026, in White Plains federal court:[1]

Licensed auto dealerships may issue temporary motor vehicle registrations (“temp tags” or “paper tags”) in connection with bona fide sales or leases of vehicles.  In recent years, individuals have abused this system by setting up sham auto dealerships to generate fraudulent temp tags—unconnected to bona fide sales or leases of cars—that are then sold in, among other places, the Southern District of New York.

From at least in or about June 2017 through at least in or about March 2024, Felix DeJesus Jimenez, Julio Frias, Bladimir Tomas Valdez, Alba Nellys Rodriguez Gonzalez, Jefrey RAPHAEL Herrera Espinal, Sammy Rodriguez Francisco, Xavier Rodriguez Francisco, Clarisa Rodriguez Francisco, Cindy Rey, Luciano Moises Estrella, and RAMON ELIGIO DEJESUS PERALTA participated in a scheme to defraud New York State and New York City of revenue from vehicle registration fees, tolls, parking enforcement, and traffic enforcement, through the use of fraudulent temp tags.

As part of the scheme, the defendants created a series of companies for which they obtained used motor vehicle dealer licenses in the States of New Jersey and Georgia (the “Dealerships”). The defendants and their co-conspirators used those Dealerships to generate a total of more than 100,000 temp tags, a significant portion of which were registered to addresses in the Southern District of New York, and which they sold in the Southern District of New York and elsewhere at prices ranging from approximately $50 to $250 per tag, producing millions of dollars in profits.  In selling temp tags, certain defendants represented at times, in sum and substance, that, by using a temp tag generated by a Dealership, customers would avoid having to pay tolls and/or tickets.  Since at least in or around 2017, temp tags issued by the Dealerships have incurred at least approximately $11,800,000 in unpaid parking and traffic tickets in New York City and at least approximately $3,100,000 in unpaid E-ZPass tolls in New York State.

Temp tags issued by the Dealerships have been the subject of numerous complaints lodged with the New York Police Department and other law enforcement agencies, including by victims who have received bills for tolls and tickets that they did not incur.  Additionally, temp tags issued by the Dealerships were involved in at least approximately 1,200 incidents reported to the NYPD, including at least six homicides.

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FELIX DEJESUS JIMENEZ, age 62, of Englewood, NJ, JULIO FRIAS, age 61, of Teaneck, NJ, BLADIMIR TOMAS VALDEZ, age 30, of Manhattan, NY, RAMON ELIGIO DEJESUS PERALTA, age 52, of Miami, FL, ALBA NELLYS RODRIGUEZ GONZALEZ, age 25, of Bergenfield, NJ, JEFREY RAPHEL HERRERA ESPINAL, age 26, of Yonkers, NY, SAMMY RODRIGUEZ FRANCISCO, age 25, of Yonkers, NY, XAVIER RODRIGUEZ FRANCISCO, age 23, of Waterbury, CT, CLARISA RODRIGUEZ FRANCISCO, age 27, of Yonkers, NY, CINDY REY, age 28, of Hazleton, PA, and LUCIANO MOISES ESTRELLA, age 42, of West Milford, NJ, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years’ imprisonment,  two counts of wire fraud, each of which carries a maximum sentence of 20 years’ imprisonment, one count of conspiracy to commit access device fraud, which carries a maximum sentence of 5 years’ imprisonment, and one count of access device fraud, which carries a maximum sentence of 10 years’ imprisonment.

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

Mr. Clayton praised the outstanding investigative work of the FBI’s New York Field Office, Westchester County Resident Agency, the New York Police Department, the New York State Troopers, the New Jersey Motor Vehicle Commission Special Investigations Unit, and the Georgia Department of Revenue Office of Special Investigations.

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jake Sidransky, Benjamin Klein, Stephanie Simon, and Daniel Listwa are in charge of the prosecution.

The charges contained in the Indictments 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.

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, James C. Barnacle, Jr., announced today the unsealing of an Indictment charging MOHD HAFIZ LOCKMAN, MOHD YUZAIMI YUSOF, and KHANH THUONG NGUYEN, three former senior employees of Telekom Malaysia (USA) Inc., the wholly owned U.S. subsidiary of Telekom Malaysia Berhad, with wire fraud conspiracy, wire fraud, and aggravated identity theft. The charges in the Indictment arise from an alleged scheme by the defendants to divert more than $20 million of company funds through four interconnected frauds. The defendants used false statements, forged records, fictitious transactions, and corporate and individual impersonations to deceive counterparties, suppliers, auditors, and supervisors. LOCKMAN was arrested on April 20, 2026, at San Francisco International Airport, and NGUYEN and YUSOF surrendered to authorities on April 22 and 23, respectively. The case has been assigned to U.S. District Judge Dale E. Ho.

U.S. Attorney Jay Clayton also announced that the criminal conduct was reported by Telekom Malaysia Berhad to the U.S. Attorney’s Office in early April 2026, and the company has been cooperating with the Office’s ongoing investigation.

“Today’s fraud charges come within weeks of receiving a self-report from the company,” said U.S. Attorney Jay Clayton. “As alleged, Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen perpetrated a sprawling fraud to steal over $20 million. The defendants deceived counterparties, suppliers, auditors, and their own supervisors. As a result of the fact that the conduct was reported to this Office and quickly investigated, the defendants will now be held to account for fraudulently lining their own pockets.”

“These three individuals are alleged to have conducted a deliberate and calculated embezzlement scheme, falsifying corporate records for their own financial benefit,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “These charges highlight the FBI’s commitment to aggressively investigating and identifying fraud schemes that exploit the corporate system.”

As alleged in the Indictment unsealed today in Manhattan federal court and other public records of court proceedings:[1]

From July 2020 through February 2026, LOCKMAN, YUSOF, and NGUYEN were senior managers at Telekom Malaysia (USA) Inc. (“the American Subsidiary”), which is wholly owned by Telekom Malaysia Berhad (the “Parent Company,” and, collectively with the American Subsidiary, “Telekom Malaysia”), a major telecommunications company in Malaysia. The American Subsidiary’s primary business is selling access to broadband infrastructure to technology companies in the United States. The Parent Company approved major contracts of the American Subsidiary, relying on management of the American Subsidiary for information about U.S. deals.

While employed at the American Subsidiary, LOCKMAN, YUSOF, and NGUYEN pursued a multifaceted scheme to steal more than $20 million. First, they devised a scheme to sell Telekom Malaysia’s broadband capacity without the Parent Company’s authorization and to divert the proceeds of those sales to accounts under their control. For example, they requested Parent Company approval to sell eight terabytes of capacity to a multinational corporation headquartered in the United States (“U.S. Customer-1”) for roughly $54 million, but, in reality, $54 million was the price the American Subsidiary charged U.S. Customer-1 for six terabytes of capacity, not eight. After receiving the Parent Company’s approval, the defendants prepared two versions of the contract: one for U.S. Customer-1 that memorialized a sale of six terabytes, and another for the Parent Company that memorialized a sale of eight terabytes and that fraudulently bore signatures and initials of representatives of U.S. Customer-1, including one representative based in the United States. After misappropriating the excess two terabytes from the Parent Company, the defendants sold it for their own personal benefit to third parties, including a large U.S.-based internet services company and a subsidiary of a U.S.-based social media and technology company. To conceal those illicit sales from the Parent Company, and pocket the proceeds, the defendants executed the sales through a sham entity they incorporated with a name meant to look like the American Subsidiary’s name, and directed payments to bank accounts in the name of that entity, which they controlled.

Second, LOCKMAN, YUSOF, and NGUYEN impersonated a supplier of goods for the American Subsidiary and captured payments the Parent Company intended for that supplier. In 2021, the American Subsidiary was to acquire a particular type of cable from the supplier and resell it to an affiliate of the Parent Company at a markup. Unbeknownst to the Parent Company, the defendants had caused the American Subsidiary to purchase the cable from the supplier for roughly $500,000. But the defendants falsely represented to the Parent Company that the American Subsidiary had paid roughly $2.9 million for the cable. The American Subsidiary sold the cable to the affiliate of the Parent Company for over $3 million, reflecting the markup, and the defendants then caused the American Subsidiary to transfer roughly $2.9 million—the amount that the American Subsidiary supposedly paid the supplier—to a bank account held by another sham entity with a name meant to look like the supplier’s, but secretly controlled by the defendants. To accomplish this fraud, the defendants falsified several documents purportedly signed by individuals who the defendants represented were employees of the sham entity with the name substantially similar to the supplier’s. In reality, those individuals were employees of the supplier, and the defendants had falsified their signatures.

Third, LOCKMAN, YUSOF, and NGUYEN impersonated employees and interns of the American Subsidiary and captured salaries intended for those employees and interns. For example, the defendants caused the American Subsidiary’s records not to reflect the fact of a particular employee’s departure in 2020, and, from August 2020 through May 2025, the defendants caused the American Subsidiary to pay that employee’s monthly salary into a bank account that the defendants controlled. In 2025, the defendants finally recorded in the American Subsidiary’s records that employee’s departure, prompting Human Resources in Malaysia to request an exit interview with the employee. To sustain the fraud, the defendants recruited another individual to impersonate the employee during the exit interview. When Human Resources subsequently requested a video call, the defendants arranged for their imposter to disguise his appearance and bear the face of the departed employee through an artificial intelligence program.

Fourth, LOCKMAN, YUSOF, and NGUYEN sought reimbursements for fabricated work expenses. For instance, in January 2026, the defendants collaborated to request reimbursement for expenses incurred for a work trip that employees of the American Subsidiary supposedly made to Las Vegas in December 2025. In fact, no such trip occurred. When the Parent Company requested pictures from the trip, the defendants hastily organized a trip to Las Vegas and photographed scenes with Christmas trees to make it appear as though photographs had been taken in December.

Telekom Malaysia initiated an internal investigation of the American Subsidiary and the defendants. Upon discovering the fraud, Telekom Malaysia self-reported the conduct to the United States Attorney’s Office and received a conditional declination of charges against the company based on the company’s commitment to full cooperation, restitution, remediation of harm caused by the misconduct, and its agreement to report criminal conduct for a three-year period.  Today’s action reflects the Office’s commitment to using self-reports as a means to quickly and effectively bring cases that hold individual executives accountable for their misconduct.

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LOCKMAN, 48, of Dublin, California, YUSOF, 44, of Livermore, California, and NGUYEN, 48, of Manassas, Virginia, are charged with wire fraud conspiracy and wire fraud, each of which carries a maximum sentence of 20 years in prison, and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Complex Frauds and Cybercrime Unit. Special Assistant U.S. Attorney Michael S. DiBattista and Assistant U.S. Attorneys Samuel P. Rothschild and Matthew Weinberg are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the unsealing of an indictment charging JAIME CASTLE, former Chief Executive Officer (“CEO”) of Obagi Cosmeceuticals LLC (“Obagi”) with conspiracy, securities fraud, wire fraud, and false statements to auditors and improperly influencing an audit. CASTLE led a scheme to fraudulently inflate Obagi’s purported sales of cosmetic products to give the false impression that Obagi was a growing company. CASTLE used that fraudulently inflated revenue to deceive a public company that acquired Obagi, called Waldencast Plc (“Waldencast”), and its shareholders, obtaining a $2 million cash bonus for arranging the acquisition. Once her scheme was uncovered, Waldencast had to restate its revenue by more than $50 million as a result of Castle’s fraud.

CASTLE was presented Monday before Judge Lehrburger. The case has been assigned to the Honorable John G. Koeltl.

“Jaime Castle allegedly defrauded a public company and its shareholders by ginning up fake revenue to suggest growth that did not exist,” said U.S. Attorney Jay Clayton. “Castle then lied to auditors to try to keep her scheme from being uncovered. Today’s indictment is a reminder that this Office and our law enforcement partners will not hesitate to go to the C-suite to root out fraud and false statements in our business community.”

“Ms. Castle allegedly used the U.S. Mail to facilitate her criminal activity, swindling  her unsuspecting investors by providing them false information about her company,” said USPIS Inspector in Charge Ketty Larco-Ward.  “The U.S. Postal Inspection Service will work tirelessly to expose these investment scams and protect the public from individuals, who use deceptive tactics to make a profit.”

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

From at least in or about 2021 through at least in or about 2023, CASTLE orchestrated a scheme to enrich herself by fraudulently inflating Obagi’s revenue and financial performance in order to defraud Waldencast and its shareholders. CASTLE, the CEO of Obagi, created the illusion that Obagi was a growing company by artificially inflating purported sales of cosmetic products to a Vietnamese distributor (“Distributor-1”), even though CASTLE knew that Distributor-1 could not pay for and, in many cases, had no need for those products. This illusion of growth made Obagi appear to be an attractive acquisition target for Waldencast and for Waldencast’s shareholders, who voted to approve a merger with Obagi in July 2022. CASTLE received a bonus of over $2 million for the successful completion of that merger. She then continued to lie to Waldencast’s management, shareholders, and auditors about Obagi’s sales and revenue, in the hopes of receiving additional bonuses and to conceal her scheme. When Waldencast discovered CASTLE’s scheme, it restated Obagi’s revenue for 2021 and 2022, showing that more than $50 million in revenue had been fraudulently reported based on CASTLE’s lies.

Despite the fact that Distributor-1 had a long history of failing to pay amounts owed for Obagi products, routinely violated the provision of her distribution agreement with Obagi requiring timely payment, and was holding a backlog of unsold product, CASTLE pushed ever greater quantities of product to Distributor-1, which Distributor-1 did not need and could not sell or pay for, to create the appearance that Obagi was a growing company.

CASTLE’s lies caused Waldencast to file publicly and with the SEC financial information about Obagi that was not true, including—shortly before Waldencast’s shareholders voted to approve the merger with Obagi— that Obagi had “[o]ver-delivered on topline” in 2021 and had “[s]trong momentum” in 2022 “with Q1 outperforming versus budget and last year.” Meanwhile, in private messages CASTLE acknowledged the exact opposite, writing in text messages that Obagi was “getting almost no payments [and] it’s becoming a massive issue for us” and that she had “been trying to keep how bad the account standing [is] under wraps.” She also acknowledged that “[Distributor-1] has a ton of inventory” and that CASTLE was “not sure how to handle [the situation] without sounding every alarm and scar[]ing everyone in the company.”

After Waldencast’s shareholders approved the merger with Obagi, CASTLE continued to lie about the company’s financial situation to Waldencast executives and its auditors. But eventually her scheme was uncovered. Between January and March 2024, Waldencast issued multiple restatements to financial reports that it issued in 2021 and 2022. Those restatements had the effect of, among other things, reducing revenue from Obagi’s sales to Distributor-1 by over $14 million for 2021 and by over $40 million for 2022.

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CASTLE, 46, of Conroe, Texas, is charged with conspiracy to commit securities fraud, wire fraud, make false filings, and false statements to auditors, which carries a maximum sentence of 5 years in prison; securities fraud, which carries a maximum sentence of 20 years in prison; false statements to auditors and improperly influencing the conduct of audits, which carries a maximum sentence of 20 years in prison; and wire fraud, 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 work of the U.S. Postal Inspection Service. Mr. Clayton further thanked the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Thomas Burnett, Courtney Heavey, and Allison Nichols are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that GÖKÇE GÜVEN, the founder and former Chief Executive Officer of Kalder Inc. (“Kalder”), pled guilty to one count of securities fraud in connection with a scheme to defraud the investors in Kalder, a technology startup.  As part of her plea, GÜVEN agreed to forfeit nearly $7 million in proceeds from her illegal scheme.  GÜVEN pled guilty today before U.S. Magistrate Judge Sarah Netburn.

“Gökçe Güven defrauded more than a dozen venture capital investors through material misrepresentations about Kalder’s revenue and brand partners, then lied to obtain an immigration benefit,” said U.S. Attorney Jay Clayton.  “In our startup markets, ambition is not a substitute for honesty.  If you lie to investors in any market—public or private; venture or late-stage growth; fintech; biotech; energy; financial services; industrial; etc.—you will be held accountable.”

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

GÜVEN was the founder and CEO of Kalder, a New York-based technology startup focused on business loyalty and rewards programs.  GÜVEN promoted Kalder as a “fintech-marketing platform” that brands could use to create and monetize customized reward programs.  In April 2024, GÜVEN began raising Kalder’s “seed round,” soliciting investments from dozens of venture capitalists.  GÜVEN provided prospective investors with false statements, misleading claims, and fabricated documents regarding Kalder’s revenue and brand partners.  GÜVEN transmitted to potential investors a pitch deck that misrepresented, among other things, that Kalder had 26 brands “using Kalder” and 53 brands in “live freemium” (that is, using basic Kalder services free of charge).  As to some brands, Kalder had only entered into pilot programs to provide services for a limited time period and typically at a heavily discounted price.  Other brands had no agreement with Kalder whatsoever—not even for free services. Kalder’s pitch deck also falsely reported that Kalder’s recurring revenue had steadily grown month over month since February 2023 and that by March 2024, Kalder had reached $1.2 million in annual recurring revenue.  GÜVEN concealed the true financial condition of the company from multiple investors by maintaining two sets of books—one internal set containing Kalder’s accurate monthly and annual financial information that was prepared by Kalder’s outside accounting firm, and a second set with false and inflated numbers that was transmitted to investors and prospective investors.  GÜVEN also transmitted to prospective investors a forged contract between Kalder and a purported brand partner to further deceive her investors.  Through these lies and misrepresentations, GÜVEN raised approximately $7 million from more than a dozen investors.

GÜVEN, a citizen of Turkey, also made false statements and fabricated documents as part of a visa application.  Following the expiration of her student visa, GÜVEN caused Kalder to sponsor her for an O-1A visa, which is typically issued to individuals with extraordinary ability in the sciences, education, business, or athletics.  GÜVEN’s application repeated the same sorts of misrepresentations that GÜVEN had provided to Kalder’s investors.  GÜVEN also supplied letters of support and reference purportedly signed by business executives but that, in fact, GÜVEN had digitally signed herself without the executives’ knowledge or consent.  GÜVEN was ultimately issued an O-1A visa in the fall of 2025.

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GÜVEN, 26, of New York, New York, and Turkey, pled guilty to one count of securities 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 any sentencing of the defendant will be determined by the judge.  GÜVEN is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on September 17, 2026.

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

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

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

The Justice Department announced today the arrest of Mohammad Baqer Saad Dawood Al-Saadi, an Iraqi national and senior member of Kata’ib Hizballah, a U.S. designated foreign terrorist organization (FTO). Al-Saadi was charged by complaint with six counts of terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (IRGC), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States. Al-Saadi was arrested on the charges contained in the complaint, which was unsealed today, transferred into U.S. custody overseas, and transported to the United States.  Al-Saadi was presented earlier today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court and ordered detained pending trial.

“Thanks to the dedication and vigilance of law enforcement, this alleged terrorist commander is now in U.S. custody,” said Acting Attorney General Todd Blanche.  “As alleged in the complaint, Al-Saadi directed and urged others to attack U.S. and Israeli interests and to kill Americans and Jews in the U.S. and abroad, and in doing so advance the terrorist goals of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps. These charges show American law enforcement will never let such evil go unchecked and will use all tools to disrupt and dismantle foreign terrorist organizations and their leaders.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel. “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units and interagency partners who delivered yet again. We are greatly appreciative of the work of our allies around the world—especially to Ambassador Tom Barrack, who led this joint sequenced operation and has been instrumental in bringing this successful mission home to the United States.”

“As alleged, Al-Saadi coordinated a wave of attacks across Europe, including bombings, arson, and assaults targeting American communities and interests,” said Assistant Attorney General for National Security John A. Eisenberg. “The complaint further alleges that Al-Saadi discussed attacking locations in New York, California, and Arizona and presented a serious threat to our national security.  We will continue to work closely with international partners to hold terrorists accountable in U.S. courts.”

“Mohammad Baqer Saad Dawood Al-Saadi, a commander for the terrorist organization, Kata’ib Hizballah, faces serious charges for his role in numerous attacks against U.S. interests across the globe, including his efforts to kill on U.S. soil,” said U.S. Attorney Jay Clayton for the Southern District of New York. “As alleged, for years, Al-Saadi committed himself to furthering the terrorist goals of Kata’ib Hizballah and the IRGC, two terrorist organizations dedicated to harming the United States and its allies.  More recently, Al-Saadi attempted to carry out attacks in the United States, including in New York City. Al-Saadi attempted to disrupt American society through intimidation and violence. In a righteous and just contrast, his prosecution will highlight the best of our country. Those who engage in or support terrorism against Americans and on U.S. soil should take note: the whole of the federal government is committed to dismantling terrorist organizations and bringing their members to justice. I commend our law enforcement partners for their outstanding investigative work resulting in the arrest of Al-Saadi, who will now face justice in a U.S. court.”

“In the span of just three months, Mohammad Al-Saadi allegedly directed 18 terrorist attacks throughout Europe—including against United States citizens and interests—and planned to conduct a similar attack here in our country,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI New York’s Joint Terrorism Task Force maintains its unwavering resolve to hold accountable leaders of foreign terrorist organizations who utilize mass fear and suffering to further their anti-American agenda.”

“This case puts into stark relief the global threats posed by the Iranian regime and its proxies like Kata’ib Hizballah—Foreign Terrorist Organizations that have repeatedly targeted Jewish communities across Europe and the United States since the war began,” said NYPD Commissioner Jessica S. Tisch. “Working with our law enforcement partners, we disrupted a plot against a Manhattan synagogue, and in partnership with the synagogue’s leadership, ensured its security when the threat was elevated. The NYPD’s work in this case, from officers assigned to the JTTF, to intelligence analysis provided through our international liaison program, helped protect the streets of our city. The NYPD has the most robust municipal counterterrorism and intelligence capacity of any city in the world, which is only strengthened by our partnership with federal agencies on cases like this one.”

Al-Saadi is a commander for Kata’ib Hizballah, a U.S. designated FTO operating in Iraq that is closely aligned with the IRGC. The IRGC, which is also a U.S. designated FTO, is an Iranian military and counterintelligence agency that operates under the authority of Iran’s Supreme Leader. The IRGC has publicly stated its desire and intention to conduct operations targeting those perceived to be enemies of the Iranian regime, and it has plotted and conducted attack operations targeting, among others, U.S. citizens residing abroad and in the United States, including attacks that resulted in the deaths of U.S. citizens.  Iran and the IRGC use other terrorist and paramilitary proxies in the region to take lethal action and to carry out operations against the United States and its allies. These proxies include Kata’ib Hizballah, which has received extensive training, funding, logistical support, weapons, and intelligence from the IRGC’s external operations force, the IRGC Qods Force (IRGC-QF).

As alleged in the complaint, Al-Saadi worked closely with Qasem Soleimani, the longtime commander of the IRGC-QF who was killed during a U.S. airstrike in or about 2020, as well as Abu Mahdi al-Muhandis, who was the leader of Kata’ib Hizballah until he was killed in the same airstrike that killed Soleimani. Below are photographs from one of Al-Saadi’s social media accounts of Al-Saadi with Soleimani, including at a military-related facility:

In addition, as alleged, Al-Saadi has called on others to attack and kill Americans, including in retribution for Soleimani’s and al-Muhandis’s deaths.  On or about July 2, 2020, for example, Al-Saadi published on one of his social media accounts the following image of the U.S. capitol in rubbles projected against the faces of Soleimani and al-Muhandis, with the text “our revenge for the martyred leaders is ongoing.  No negotiations with the occupier.”

In recent months, Al-Saadi has also allegedly directed and urged others to attack U.S. and Israeli interests, including by killing Americans and Jews, to further the terrorist goals of Kata’ib Hizballah and the IRGC. In or about February 2026, for example, Al-Saadi posted on one of his social media accounts a message in Arabic, which read in part, “Do not abandon the blood of your Imam of the time, oh Shiites of Iraq. Kill everyone who supports America and Israel.  Do not leave any of them remaining. Civil and military targets, as well as voices of discord, kill them everywhere.”

As alleged, over the last several months, Al-Saadi and his associates have planned, coordinated, and claimed responsibility for at least 18 terrorist attacks in Europe (the “European Terrorist Attacks”), as well as two additional attacks in Canada, in the name of Harakat Ashab al-Yamin al-Islamiya, a component of Kata’ib Hizballah.  On or about March 9, 2026—the day of the first of the European Terrorist Attacks—Al-Saadi posted on one of his social media accounts a message calling on “warriors of Islam” to engage in “jihad,” or violent holy war.  From that point on, Al-Saadi and his associates allegedly have carried out attacks against U.S. interests. Al-Saadi and Harakat Ashab al-Yamin al-Islamiya have also published videos of the attacks.

For example, on or about March 15, 2026, individuals carried out an attack involving explosives against the Bank of New York Mellon, an American bank, in Amsterdam, Netherlands. The next day, on or about March 16, 2026, AL-SAADI posted a propaganda video of the attack, in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attack. The video also showed aspects of the attack planning, including maps of the location of where the attack would be and a message which read: “In the name of Allah, the Most Gracious, the Most Merciful This is the Final Warning[.]  To all the peoples of the world, especially in the European Union, Immediately distance yourselves [] from all American and Zionist interests, facilities, and what is affiliated with them.”

Similar attacks continued in or about March and April 2026, accompanied by videos allegedly published by Al-Saadi in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attacks.  In one such attack, on or about April 12, 2026, an arson was allegedly committed against a synagogue in Skopje, North Macedonia. On or about April 16, 2026, Al-Saadi posted a video showing the site of that attack with a red target symbol and surveillance footage of the synagogue on fire, as depicted in the screenshots below with the logo of Harakat Ashab al-Yamin al-Islamiya in the upper right corner of the images (circled in red):

In another attack, on or about April 29, 2026, two Jewish men—including a dual U.S.-British citizen—were stabbed and seriously injured in London, United Kingdom.

In addition, in or about April and May 2026, Al-Saadi, on behalf of Kata’ib Hizballah and the IRGC, allegedly attempted to coordinate and carry out terrorist attacks to kill individuals in the United States, including by targeting Jewish institutions in New York, New York, and elsewhere. On or about April 3, 2026, Al-Saadi spoke to an undercover law enforcement officer (“UC-1”) whom Al-Saadi believed could carry out attacks in the United States. That day, Al-Saadi texted UC-1 photographs and maps showing the exact location of a prominent Jewish synagogue located in New York, New York (the “New York Synagogue”), as well as two additional U.S.-based Jewish institutions in Los Angeles, California, and Scottsdale, Arizona, respectively, and directed UC-1 to carry out terrorist attacks against those targets. Al-Saadi also spoke on the phone with UC-1, and discussed with UC-1, with respect to the New York Synagogue, whether UC-1 would use an improvised explosive device or “set the place on fire.” Fortunately, no such attacks occurred at the time.

Al-Saadi, 32, of Iraq, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism of attempting and conspiring to murder nationals of the United States, and bombing and conspiring to bomb a place of public use, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; and (vi) attempted destruction of property by means of fire or explosive, which carries a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison.

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

The case was investigated by FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office, Counterterrorism Division, and with the assistance of the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, and the New York State Police.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner are in charge of the prosecution, with assistance from Trial Attorneys Paul Casey and James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, Assistant Attorney General for National Security, John A. Eisenberg, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., Assistant Director in Charge of the Washington Field Office of the FBI, Darren Cox, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the arrest of MOHAMMAD BAQER SAAD DAWOOD AL-SAADI, an Iraqi national and senior member of Kata’ib Hizballah, a U.S. designated foreign terrorist organization (“FTO”).  AL-SAADI was charged by Complaint with six counts of terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (“IRGC”), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States.  AL-SAADI was arrested on the charges contained in the Complaint, which was unsealed today, transferred into U.S. custody overseas, and transported to the United States. AL-SAADI was presented earlier today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court and ordered detained pending trial.

“Mohammad Baqer Saad Dawood Al-Saadi, a commander for the terrorist organization, Kata’ib Hizballah, faces serious charges for his role in numerous attacks against U.S. interests across the globe, including his efforts to kill on U.S. soil,” said U.S. Attorney Jay Clayton.  “As alleged, for years, Al-Saadi committed himself to furthering the terrorist goals of Kata’ib Hizballah and the IRGC, two terrorist organizations dedicated to harming the United States and its allies.   More recently, Al-Saadi attempted to carry out attacks in the United States, including in New York City.  Al-Saadi attempted to disrupt American society through intimidation and violence.  In a righteous and just contrast, his prosecution will highlight the best of our country.  Those who engage in or support terrorism against Americans and on U.S. soil should take note:  the whole of the federal government is committed to dismantling terrorist organizations and bringing their members to justice.  I commend our law enforcement partners for their outstanding investigative work resulting in the arrest of Al-Saadi, who will now face justice in a U.S. court.”

“Thanks to the dedication and vigilance of law enforcement, this alleged terrorist commander is now in U.S. custody,” said Acting Attorney General Todd Blanche.  “As alleged in the complaint, Al-Saadi directed and urged others to attack U.S. and Israeli interests and to kill Americans and Jews in the U.S. and abroad, and in doing so advance the terrorist goals of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps.  These charges show American law enforcement will never let such evil go unchecked, and will use all tools to disrupt and dismantle foreign terrorist organizations and their leaders.”

”As alleged, Al-Saadi coordinated a wave of attacks across Europe, including bombings, arson, and assaults targeting American communities and interests,” said Assistant Attorney General for National Security John A. Eisenberg.  “The complaint further alleges that Al-Saadi discussed attacking locations in New York, California, and Arizona and presented a serious threat to our national security.  We will continue to work closely with international partners to hold terrorists accountable in U.S. courts.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel.  “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units and interagency partners who delivered yet again.  We are greatly appreciative of the work of our allies around the world—especially to Ambassador Tom Barrack, who led this joint sequenced operation and has been instrumental in bringing this successful mission home to the United States.”

“In the span of just three months, Mohammad Al-Saadi allegedly directed 18 terrorist attacks throughout Europe—including against United States citizens and interests—and planned to conduct a similar attack here in our country,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI New York’s Joint Terrorism Task Force maintains its unwavering resolve to hold accountable leaders of foreign terrorist organizations who utilize mass fear and suffering to further their anti-American agenda.”

"As a senior member of a designated foreign terrorist organization, al-Saadi allegedly directed the planning and coordination of 18 terrorist attacks and attempted terrorist attacks targeting U.S. citizens and interests throughout the world," said Assistant Director in Charge of the FBI Washington Field Office Darren Cox. "Thanks to the FBI's diligence, the defendant will face justice on American soil. The FBI and our partners remain steadfast in our pursuit of all terrorists who threaten our country and our allies."

“This case puts into stark relief the global threats posed by the Iranian regime and its proxies like Kata’ib Hizballah—Foreign Terrorist Organizations that have repeatedly targeted Jewish communities across Europe and the United States since the war began,” said NYPD Commissioner Jessica S. Tisch.  “Working with our law enforcement partners, we disrupted a plot against a Manhattan synagogue, and in partnership with the synagogue’s leadership, ensured its security when the threat was elevated.  The NYPD’s work in this case, from officers assigned to the JTTF, to intelligence analysis provided through our international liaison program, helped protect the streets of our city.  The NYPD has the most robust municipal counterterrorism and intelligence capacity of any city in the world, which is only strengthened by our partnership with federal agencies on cases like this one.”

According to the allegations contained in the Complaint, and statements made during court proceedings:[1]

AL-SAADI is a commander for Kata’ib Hizballah, a U.S. designated FTO operating in Iraq that is closely aligned with the IRGC.  The IRGC, which is also a U.S. designated FTO, is an Iranian military and counterintelligence agency that operates under the authority of Iran’s Supreme Leader.  The IRGC has publicly stated its desire and intention to conduct operations targeting those perceived to be enemies of the Iranian regime, and it has plotted and conducted attack operations targeting, among others, U.S. citizens residing abroad and in the United States, including attacks that resulted in the deaths of U.S. citizens.  Iran and the IRGC use other terrorist and paramilitary proxies in the region to take lethal action and to carry out operations against the United States and its allies.  These proxies include Kata’ib Hizballah, which has received extensive training, funding, logistical support, weapons, and intelligence from the IRGC’s external operations force, the IRGC Qods Force (“IRGC-QF”).

As alleged in the Complaint, AL-SAADI worked closely with Qasem Soleimani, the longtime commander of the IRGC-QF who was killed during a U.S. airstrike in or about 2020, as well as Abu Mahdi al-Muhandis, who was the leader of Kata’ib Hizballah until he was killed in the same airstrike that killed Soleimani.  Below are photographs from one of AL-SAADI’s social media accounts of AL-SAADI with Soleimani, including at a military-related facility:

In addition, as alleged, AL-SAADI has called on others to attack and kill Americans, including in retribution for Soleimani’s and al-Muhandis’s deaths.  On or about July 2, 2020, for example, AL-SAADI published on one of his social media accounts the following image of the U.S. capitol in rubbles projected against the faces of Soleimani and al-Muhandis, with the text “our revenge for the martyred leaders is ongoing.  No negotiations with the occupier.”

In recent months, AL-SAADI has also allegedly directed and urged others to attack U.S. and Israeli interests, including by killing Americans and Jews, to further the terrorist goals of Kata’ib Hizballah and the IRGC.  In or about February 2026, for example, AL-SAADI posted on one of his social media accounts a message in Arabic, which read in part, “Do not abandon the blood of your Imam of the time, oh Shiites of Iraq.  Kill everyone who supports America and Israel.  Do not leave any of them remaining.  Civil and military targets, as well as voices of discord, kill them everywhere.”

As alleged, over the last several months, AL-SAADI and his associates have planned, coordinated, and claimed responsibility for at least 18 terrorist attacks in Europe (the “European Terrorist Attacks”), as well as two additional attacks in Canada, in the name of Harakat Ashab al-Yamin al-Islamiya, a component of Kata’ib Hizballah.  On or about March 9, 2026—the day of the first of the European Terrorist Attacks—AL-SAADI posted on one of his social media accounts a message calling on “warriors of Islam” to engage in “jihad,” or violent holy war.  From that point on, AL-SAADI and his associates allegedly have carried out attacks against U.S. interests.  AL-SAADI and Harakat Ashab al-Yamin al-Islamiya have also published videos of the attacks.

For example, on or about March 15, 2026, individuals carried out an attack involving explosives against the Bank of New York Mellon, an American bank, in Amsterdam, Netherlands.  The next day, on or about March 16, 2026, AL-SAADI posted a propaganda video of the attack, in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attack.  The video also showed aspects of the attack planning, including maps of the location of where the attack would be and a message which read: “In the name of Allah, the Most Gracious, the Most Merciful This is the Final Warning[.]  To all the peoples of the world, especially in the European Union, Immediately distance yourselves [] from all American and Zionist interests, facilities, and what is affiliated with them.”

Similar attacks continued in or about March and April 2026, accompanied by videos allegedly published by AL-SAADI in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attacks.  In one such attack, on or about April 12, 2026, an arson was allegedly committed against a synagogue in Skopje, North Macedonia. On or about April 16, 2026, AL-SAADI posted a video showing the site of that attack with a red target symbol and surveillance footage of the synagogue on fire, as depicted in the screenshots below with the logo of Harakat Ashab al-Yamin al-Islamiya in the upper right corner of the images (circled in red):

In another attack, on or about April 29, 2026, two Jewish men—including a dual U.S.-British citizen—were stabbed and seriously injured in London, United Kingdom.

In addition, in or about April and May 2026, AL-SAADI, on behalf of Kata’ib Hizballah and the IRGC, allegedly attempted to coordinate and carry out terrorist attacks to kill individuals in the United States, including by targeting Jewish institutions in New York, New York, and elsewhere.  On or about April 3, 2026, AL-SAADI spoke to an undercover law enforcement officer (“UC-1”) whom AL-SAADI believed could carry out attacks in the United States.  That day, AL-SAADI texted UC-1 photographs and maps showing the exact location of a prominent Jewish synagogue located in New York, New York (the “New York Synagogue”), as well as two additional U.S.-based Jewish institutions in Los Angeles, California, and Scottsdale, Arizona, respectively, and directed UC-1 to carry out terrorist attacks against those targets.  AL-SAADI also spoke on the phone with UC-1, and discussed with UC-1, with respect to the New York Synagogue, whether UC-1 would use an improvised explosive device or “set the place on fire.”  Fortunately, no such attacks occurred at the time.

*               *                *

AL-SAADI, 32, of Iraq, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism of attempting and conspiring to murder nationals of the United States, and bombing and conspiring to bomb a place of public use, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; and (vi) attempted destruction of property by means of fire or explosive, which carries a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison.

The statutory maximum and mandatory minimum penalties 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 FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office, Counterterrorism Division, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, and the New York State Police.  Mr. Clayton also offered particular thanks to the U.S. Department of State, and in particular Ambassador Thomas Barrack and Ambassador Rabbi Yehuda Kaploun.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner are in charge of the prosecution, with assistance from Trial Attorneys Paul Casey and James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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.

United States Attorney for the Southern District of New York, Jay Clayton, announced the arrest yesterday of CORY MATTHEWS, and the Indictment, on April 29th, of BETH SAIERS, a/k/a “Beth Young.”  MATTHEWS and SAIERS are charged in separate charging instruments with sexual exploitation of an infant and the receipt and distribution of child pornography.  MATTHEWS was taken into federal custody yesterday and presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court and detained.  BETH SAIERS was arrested in Lock Haven, Pennsylvania, on April 23, 2026, pursuant to a Complaint that was unsealed on April 23, 2026.  A Grand Jury in the Southern District of New York returned an Indictment of SAIERS on April 29, 2026.

“The charges here—sexual exploitation of an infant—allege horrific conduct,” said U.S. Attorney Jay Clayton.  “Every New Yorker wants children protected from life-scarring conduct.  We know our community wants this conduct investigated and, as appropriate, charged and prosecuted to the fullest extent of the law. The women and men of this Office are dedicated to that mission.” 

As alleged in the charging documents and statements made in court:[1]

On or about April 16, 2026, law enforcement executed a search of MATTHEWS’s residence in Putnam County pursuant to a New York state search warrant. Among the items seized was MATTHEWS’s cellphone.

A search of the phone revealed chats on a social media application between MATTHEWS and SAIERS on April 14, 2026.  In the course of the chats, MATTHEWS transmitted an image of an infant (“Victim-1”) to SAIERS, who responded “Put your dick in its face[.]”  Thereafter, MATTHEWS transmitted an image in which Victim-1 is visible in the background and a man’s erect penis occupies the foreground.  MATTHEWS asked, “Now what,” to which SAIERS responded, “Take a pic of my pedo dick in front of the babies face[.]”  Thereafter, as MATTHEWS transmitted a series of sexually explicit photos and videos of Victim-1 to SAIERS, SAIERS commented on the images and directed MATTHEWS to engage in sexual acts involving Victim-1.

On or about April 16, 2026, MATTHEWS was arrested and charged in the Town of Kent, New York, with promoting a sexual performance by a child and possessing a sexual performance by a child.  On or about April 19, 2026, following the discovery of the photos and videos depicting the sexual abuse of Victim-1, additional charges were added. The charges included, among other things, predatory sex assault against a child and rape in the first degree.

On or about April 23, 2026, SAIERS was arrested in Lock Haven, Pennsylvania, pursuant to a Complaint filed on April 21, 2026, in the Southern District of New York.  SAIERS was detained pending her removal to New York.  On or about April 29, 2026, a Grand Jury in the Southern District of New York indicted SAIERS for sexual exploitation of a child and receipt and distribution of child pornography.

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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MATTHEWS, 38, of Kent, New York, and SAIERS, 41, of Lockhaven, Pennsylvania, are each charged with sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison; and receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison.

The minimum and maximum potential 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, Putnam County Sheriff's Office, Putnam County District Attorney’s Office, Putnam County Child Advocacy Center Team, Putnam County Department of Social Services, New York State Police, Town of Carmel Police Department, Town of Kent Police Department, and the Lock Haven, Pennsylvania Police Department in connection with this investigation.                               

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Marcia S. Cohen and Jake Sidransky are in charge of the prosecution.   

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

United States Attorney for the Southern District of New York, Jay Clayton and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced the unsealing of two separate Indictments charging GORAN SPIRIDONOV and KRISTINA JANEVA, respectively, with federal crimes relating to their fraudulent sale of “Trump Bucks”—a fake form of legal tender—to victims across the United States.  SPIRIDONOV and JANEVA are both citizens and residents of North Macedonia and remain at large.  SPIRIDONOV’s case has been assigned to U.S. District Judge P. Kevin Castel and JANEVA’s case has been assigned to U.S. District Judge Lewis J. Liman, both of the Southern District of New York.

“As alleged, the defendants created a fictitious financial instrument and marketed it to Americans around the country under the false pretense that ‘Trump Bucks’ was affiliated with the funding of President Trump’s re-election campaign and other causes associated with the President and the Trump Organization,” said U.S. Attorney Jay Clayton. “That cannot be further from the truth. ‘Trump Bucks’ has no connection to the President, the campaign, or the Trump Organization. This fraud targets many senior citizens, taking advantage of their support for the President. We commend our FBI partners for detecting and thwarting this scheme. Importantly, this conduct may be ongoing, and we strongly urge anyone targeted not to provide financial information or funds to any entity related to ‘Trump Bucks’ or the fictitious products pictured in this press release.”

“These foreign nationals allegedly leveraged a false affiliation with the President's administration to steal hundreds of thousands of dollars from Americans,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI continues to target fraudsters that manipulate our country’s citizens, regardless of where they’re located.”

As alleged in the Indictments:[1]

From at least in or about 2023 through in or about the present, SPIRIDONOV, JANEVA, and others based abroad have engaged in a widespread scheme to scam victims out of hundreds of thousands of dollars through the sale of so-called “Trump Bucks.”  SPIRIDONOV and JANEVA have each falsely claimed that “Trump Bucks” are valuable legal tender affiliated with President Donald J. Trump and the Trump Organization.  In reality, these products are worthless and have no such affiliations.

SPIRIDONOV, JANEVA, and other participants in the scheme have each marketed and sold a number of different “Trump Bucks” and other related products to victims, mainly through the use of a certain online marketplace (identified in the Indictments as “Marketplace-1”) and encrypted messaging applications such as Telegram.  Scheme participants have fraudulently sold “Golden Checks,” “Membership Booklets,” “Golden Badges,” “Trump Dollars,” “Trump Checks,” “Golden Trump Checks,” and “Diamond Bucks,” among other fraudulent products, many of which are marketed under the “Trump Rebate Banking System,” or “TRB,” banner.  Pictures of some of the “Trump Bucks” products fraudulently marketed and sold to victims are below:

SPIRIDONOV, JANEVA, and other promoters of this scam have each falsely represented to victims that “Trump Bucks” products are affiliated with President Trump, members of his family, members of the Trump Organization, and members of the Trump administration, and that purchases of “Trump Bucks” would help fund President Trump’s re-election campaign and various causes purportedly associated with President Trump.  SPIRIDONOV, JANEVA, and others have also falsely claimed that these products are preloaded with tens or hundreds of thousands of dollars in cash that would be redeemable at banks during a Trump presidency.  These statements are all lies.  “Trump Bucks” products are worthless; are not redeemable at any bank; and have no affiliation at all with President Trump, his family members, or members of his administration.

During the scheme, JANEVA marketed several different fake “Bank of Trump” products to victims.  Below is an example of a “Ruby Certificate” marketed by JANEVA, which she falsely claimed was issued by the Trump Organization:

SPIRIDONOV has marketed several other fake “Trump Bucks” products to victims.  For example, in the below email, which was later sent to victims, SPIRIDONOV falsely claimed that any victim who purchased a “Patriot Eagle” product could exchange such product for $10,000 upon President Trump’s reelection:

SPIRIDONOV, JANEVA, and others have each used this fraudulent scheme to collect hundreds of thousands of dollars from victims across the country, many of whom are senior citizens.  

*                *                *

SPIRODONOV, 25, and JANEVA, 39, are each charged with conspiracy to commit wire fraud and wire fraud, which each carry a maximum sentence of 20 years in prison.  SPIRIDONOV and JANEVA are each also charged with aggravated identity theft, which carries a mandatory two-year consecutive sentence.

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

Mr. Clayton praised the outstanding investigative work of the FBI and the New York Field Office of Homeland Security Investigations.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, and Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Farhana Islam, announced today the unsealing of a Complaint charging RUDDY CENIT-THEN with conspiring to distribute fentanyl and methamphetamine.  CENIT-THEN was presented earlier today before U.S. Magistrate Judge Sarah Netburn and ordered detained pending trial.

“New Yorkers want us to send a message:  New York will not be a safe haven for any level of drug distribution, much less fentanyl and methamphetamine pill factories,” said U.S. Attorney Jay Clayton.  “As alleged, Ruddy Cenit-Then conspired with others to operate a pill mill out of a 20th-floor Manhattan apartment, right next to thousands of innocent New Yorkers just going about their lives.  That conduct will never be tolerated by this Office.  I am deeply grateful for the efforts of our law enforcement partners and the career prosecutors of this Office as we work to keep methamphetamine, fentanyl, and other deadly and debilitating narcotics off our streets.”

“Ruddy Cenit-Then now stands accused of using a Manhattan apartment as the base for a clandestine pill-pressing factory to produce narcotics-laced tablets on an industrial scale,” said HSI Special Agent in Charge Michael Alfonso.  “Pumping these toxic pills into our communities drives overdoses, fuels crime, and erodes the safety and stability of our families and local businesses.  HSI New York, together with our Homeland Security Task Force partners, will continue to utilize every lawful tool at our disposal to dismantle these operations and protect our neighborhoods from this deadly trade.”

“The DEA and our law enforcement partners remain steadfast in holding accountable those individuals responsible for pushing fentanyl and methamphetamine into our neighborhoods,” stated DEA New York Enforcement Division Special Agent in Charge Farhana Islam. “Ruddy Cenit-Then, who is charged with operating an industrial-scale pill press operation in Washington Heights and sought refuge in the Dominican Republic, thought he was safe from the reach of the DEA and our partners. Today he learned that our global footprint remains strong and wide, and that we are committed to holding traffickers accountable both here at home and abroad.”

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

On July 24, 2025, pursuant to a judicially authorized warrant, law enforcement officers searched an apartment in the Washington Heights neighborhood in Manhattan that appeared to be used by CENIT-THEN.  Inside the apartment, law enforcement officers found evidence that CENIT-THEN was using the apartment to run a clandestine, industrial-scale pill pressing operation.  Hidden behind panels inside a closet, law enforcement found, among other things, an industrial-scale pill press and approximately 37 pounds of a white crystal substance contained in a series of Ziplock bags for which field tests positively indicated the presence of methamphetamine.  The pill press, drugs, and other items found behind the hidden panels are pictured below in Image 1, and the hidden panels are pictured below in Image 2.

Image 1

Image 2

RUDDY CENIT-THEN, 46, of the Dominican Republic, is charged with one count of conspiring to distribute fentanyl and methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of HSI New York and the Homeland Security Task Force, DEA Group D-25, the New York State Police, the New York City Police Department, and the Kings County District Attorney’s Office.  Mr. Clayton also thanked the DEA Chemist Team for its processing of the scene and the U.S Marshals Service for the arrest of CENIT-THEN.  The Justice Department’s Office of International Affairs worked with Dominican authorities in securing CENIT-THEN’s arrest and extradition.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Getzel Berger, Katherine Cheng, and Joseph H. Rosenberg 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.

Last week the Department of Justice announced the launch of the remission compensation process to provide recovery to victims of AirBit Club, a purported virtual currency mining and trading company that was a pyramid scheme.

Beginning in late 2015, promoters marketed AirBit Club as a multilevel marketing club. Promoters promised victims that AirBit Club memberships earned passive, guaranteed daily returns on virtual currency mining and trading, and hosted lavish expos and small community presentations aimed at convincing victims to purchase AirBit Club memberships and further promote the scheme. While victims saw “profits” accumulate on their online portal, those representations were false; no virtual currency mining or trading took place.

In August 2020, the U.S. Attorney’s Office for the Southern District of New York announced charges against five defendants, including the AirBit co-founders Pablo Renato Rodriguez and Gutemberg Dos Santos, who were sentenced in September 2023. Other defendants included promoters Cecilia Millan and Karina Chairez and attorney Scott Hughes, who were sentenced in October 2023 and ordered to forfeit all of their fraudulent proceeds realized from the scheme, which included substantial amounts of virtual currency.

To date, the United States has forfeited over $400 million in assets which are now available to compensate eligible victims for their compensable losses. Any victims who have previously provided their information to the FBI or U.S. Attorney’s Office will be contacted by the remission administrator, RCB Fund Services, LLC, (RCB) to file a petition. For more information about the remission process and to access the petition form, please visit the official website at https://www.airbitvictimfund.com/ or contact RCB at (800) 765-7551.

“The Department will vigorously pursue those that abuse new technologies to steal millions from hard-working individuals,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The defendants took advantage of virtual currency’s popularity to promote the scheme and recruit additional victims. The criminal convictions and substantial asset recoveries obtained by prosecutors and law enforcement partners have enabled the Department to successfully launch this significant victim compensation effort.”

“Investor euphoria over new technology is all too often fertile ground for fraudsters,” said U.S. Attorney Jay Clayton for the Southern District of New York. “It is our job to root out those fraudsters. Here, the defendants led a multimillion-dollar pyramid scheme based on lies about virtual currency trading and mining. They now face justice, and this outcome should deter anyone who may be tempted to target others with false promises of high returns in virtual currency investments.”

“HSI New York's El Dorado Financial Crimes Task Force, the largest anti-money laundering task force in the United States, is proud to have played a vital role in delivering justice to the victims of the fraudulent AirBit Club," said Acting Special Agent in Charge Michael Alfonso of Homeland Security Investigations (HSI) New York. “Virtual currency fraud is one of the costliest scams affecting victims today. HSI New York, along with our law enforcement partners through our newly formed Homeland Security Task Force, will continue to pursue fraudsters who promote these schemes, and will utilize every tool at our disposal to recover their ill-gotten gains for investor victims.”

Assistant U.S. Attorney Cecilia E. Vogel for the Southern District of New York represented the government in both the criminal prosecution and forfeiture proceedings with valuable assistance from forfeiture contract paralegal Christina Lopresti. HSI’s El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans investigated the case. Attorneys and investigators at the SEC brought substantial expertise and diligence to develop the investigation.

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 Senior Attorney Advisor Carly Diroll-Black with MNF’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 

United States Attorney for the Southern District of New York, Jay Clayton, announced the filing of a Complaint charging BRYAN CRUZ SOLANO with sexual exploitation of a minor.  CRUZ SOLANO was arrested on Saturday, May 9, 2026, presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court and ordered detained pending trial by U.S. District Judge Kenneth M. Karas on May 12, 2026. 

“As alleged, Bryan Cruz Solano sexually abused a 12-year-old child and, even more disgusting, recorded that abuse in order to trade it for other child pornography,” said U.S. Attorney Jay Clayton.  “We have heard it clear and strong from all New Yorkers, particularly New York families: Use all available resources to get sexual predators off our streets.  And New Yorkers should know, predators often act with others, and we are committed to destroying these child sexual abuse networks.  Help us if you can.  Be vigilant. There may be additional victims in this case. If you have information to report about this or any other matter of child sexual abuse, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”

As alleged in the Complaint:[1]

On or about May 1, 2026, an individual (“Witness-1”) reported to New York State Police and the Federal Bureau of Investigation (“FBI”) that CRUZ SOLANO had sent child pornography to Witness-1, including videos depicting CRUZ SOLANO engaging in sexual acts with a minor (“Victim-1”).

A video was recovered from Witness-1’s cellphone depicting a recording of a video on another device depicting a prepubescent female’s hands stroking the erect penis of an adult male (“Video-1”). At the end of the recording, the video transitions to an electronic messaging conversation on Snapchat, which includes, in substance and in part, the account name “lil_cruzyyyy.” CRUZ SOLANO later admitted that the Snapchat account was his.

Law enforcement acted to address the possibility of potentially ongoing harm to Victim-1 and assumed control of Witness-1’s Telegram account to begin communicating directly with CRUZ SOLANO.  From May 4 to May 8, 2026, law enforcement engaged in multiple discussions with CRUZ SOLANO over Telegram, during which CRUZ SOLANO stated, among other things, that he had “new stuff” of himself and Victim-1 that he wanted to “trade,” that he would not send content without first receiving child pornography from Witness-1, and that Witness-1 should “make sure to sen[d] babies.” 

On May 8, 2026, law enforcement executed a search warrant at CRUZ SOLANO’s residence.  Officers obtained a cellphone from CRUZ SOLANO, which included, among other things, video recordings of child pornography involving Victim-1, including acts performed by Victim-1 at CRUZ SOLANO’s direction.

During an interview, CRUZ SOLANO admitted that he had engaged in sexual acts with Victim-1 on approximately 25 occasions in the past year, including at least as recently as two to three weeks ago. CRUZ SOLANO indicated that he had recorded these acts on at least approximately five occasions, while in Middletown, New York, and sent them to Witness-1.  Further, on approximately 20 occasions, CRUZ SOLANO made FaceTime video calls to Witness-1 while engaging in sex acts with Victim-1.  CRUZ SOLANO told law enforcement that he secured Victim-1’s cooperation by enticing Victim-1 with gifts.

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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CRUZ SOLANO, 20, 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 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 New York Hudson Valley Safe Streets Task Force, the FBI New Haven Child Exploitation Task Force, the New York State Police Computer Crimes Unit - Troop F, the Orange County Child Abuse Unit, the Orange County Child Advocacy Center, and the Hartford Police Department.

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Anthony P. Ferrara 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.

United States Attorney for the Southern District of New York, Jay Clayton, announced that RODERIC SAGE pled guilty today to conspiring to defraud the United States in connection with a scheme to help high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and evade U.S. income taxes.  SAGE was presented yesterday and pled guilty earlier today before U.S. Magistrate Judge Valerie Figueredo.  The case has been assigned to U.S. District Judge Gregory H. Woods. 

“As admitted, Roderic Sage helped U.S. taxpayers conceal more than $60 million in offshore accounts through a scheme designed to hide assets from the IRS,” said U.S. Attorney Jay Clayton.  “For years, Sage and his co-conspirators used layers of nominee accounts and offshore entities to disguise the true ownership of these funds and evade U.S. taxes.  Offshore schemes are not beyond the reach of American law enforcement, and this case shows the strength of international cooperation in identifying and dismantling complex financial fraud schemes.  It is straightforward: tax fraud is a fraud on your fellow Americans, and they want tax fraudsters brought to justice.”

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

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

SAGE was arrested on May 7, 2025, in the United Kingdom and extradited to the United States.

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SAGE, 73, of Gloucestershire, United Kingdom, pled guilty to one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.  SAGE is scheduled to be sentenced by Judge Woods on July 30, 2026. 

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

Mr. Clayton praised the outstanding work of IRS-CI.  Mr. Clayton also thanked the Department of Justice’s Office of International Affairs, Interpol, and the United Kingdom’s National Extradition Unit and the Crown Prosecution Service for their assistance in the arrest and extradition of the defendant.  Mr. Clayton further thanked the Justice Department’s Criminal Division for their partnership on this case.

This prosecution is being handled by the Complex Frauds and Cybercrime Unit and the Tax Section of the Justice Department’s Criminal Division.  Assistant U.S. Attorneys Olga I. Zverovich and Matthew Weinberg and Senior Litigation Counsel Mark F. Daly of the Tax Section are in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Bryan DiGirolamo, announced today the arrest of MALIK BROMFIELD, FAIZAN ALI, and KAMAL SALMAN, who are charged with multiple offenses relating to the transporting of 89 firearms, including at least 17 that were reported stolen, and attempting to smuggle those firearms to Canada.  BROMFIELD, ALI, and SALMAN were presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court, and detained.

“As alleged, Malik Bromfield, Faizan Ali, and Kamal Salman were caught transporting more than 80 guns, including short-barreled rifles and stolen firearms, to smuggle them out of the country,” said U.S. Attorney Jay Clayton.  “It is critically important to New Yorkers and Americans to keep illegal weapons out of the hands of criminal actors.  The trafficking of dangerous weapons will be relentlessly pursued by this Office.”

“These three defendants, including two foreign nationals, allegedly endangered our communities as they attempted to smuggle 89 firearms—17 of which were stolen—into Canada,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI is committed to working with our federal and state law enforcement partners to take illegal guns off our streets.”

“Illegal firearms trafficking threatens the safety of our communities and fuels violent crime,” said ATF Special Agent in Charge Bryan DiGirolamo.  “ATF New York’s Hudson Valley personnel were proud to assist the FBI-led investigation alongside the New York State Police to help prevent dozens of firearms, including stolen weapons, from reaching the streets.”

As alleged in the Complaint:[1]

On or about May 7, 2026, personnel with the New York State Police (“NYSP”) initiated a traffic stop of a white Ford Explorer (the “Subject Vehicle”) after observing the vehicle commit traffic violations while driving on State Route 17 near exit 90. Upon approaching the Subject Vehicle, troopers encountered BROMFIELD, ALI, and SALMAN.  After asking the occupants to exit the vehicle, the troopers observed that the occupants gave inconsistent and evasive accounts in response to NYSP questioning. During the interview, ALI consented to a roadside search of his person, during which a trooper recovered an expired Pakistani National Driving Permit issued to an Afghan national in another name concealed in ALI’s buttocks.

An NYSP canine conducted a sweep of the exterior of the Subject Vehicle and alerted to the potential presence of narcotics. During a preliminary search of the Subject Vehicle, the troopers observed an unusually heavy suitcase, which was found to contain a large cache of firearms:

Additional firearms were recovered in the backseat area of the Subject Vehicle:

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BROMFIELD, 22, a citizen of Canada, ALI, 25, a citizen of Pakistan, and SALMAN, 22, a citizen of Canada, the United States, and Jordan, are each charged with one count of smuggling from the United States, which carries a maximum sentence of 10 years in prison; one count of unlicensed dealing in firearms, which carries a maximum sentence of five years in prison; one count of transporting stolen firearms in interstate commerce, which carries a maximum sentence of 10 years in prison; and one count of unlawful possession of firearms, which carries a maximum sentence of 10 years in prison.   BROMFIELD is also charged with unlawful possession of a firearm by an alien, which carries a maximum sentence of 15 years in prison.

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

Mr. Clayton praised the efforts of the New York State Police - Troop F, Community Stabilization Unit, FBI’s New York Hudson Valley Safe Streets Task Force, and the ATF.

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John Sarlitto 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.

United States Attorney for the Southern District of New York, Jay Clayton, announced today the unsealing of a Complaint charging ANDREW FORD with sexual exploitation of a minor and transportation of a minor for unlawful sexual activity.  FORD was arrested today and presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.

“As alleged, Andrew Ford sexually abused a 13-year-old child and documented that abuse with photographs—compounding the harm to an already vulnerable victim,” said U.S. Attorney Jay Clayton.  “Sexual predators should know this: In 2025 and 2026, our Office has brought federal charges against an unprecedented volume of individuals for the sexual exploitation of children and child pornography.  If you prey on children in New York, you will be identified, arrested, and prosecuted.  New Yorkers want you in prison.” 

As alleged in the Complaint:[1]

In December 2024, a 13-year-old child (“Victim-1”) disclosed to law enforcement that FORD had sexually abused her on multiple occasions, both in Westchester County, New York, and in Connecticut.

On May 12, 2025, FORD was arrested and charged in the Justice Court of the Town of Rye, New York, with two counts of rape in the second degree.  On or about May 13, 2025, he was arraigned in the Town of Rye Court and released on bail.

Following FORD’s arrest, a search by law enforcement of FORD’s cellphone revealed the existence of sexually explicit images of Victim-1 that were taken in Connecticut after FORD transported Victim-1 from Westchester County to Greenwich, Connecticut.

There may be other victims.  If you have information to report, please contact the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov. 

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FORD, 42, of Stamford, Connecticut, is charged with one count of sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of transportation of a child for unlawful sexual activity, which carries a mandatory minimum sentence of 10 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 efforts of the FBI, the Port Chester Police Department, the Greenwich Police Department, and the Westchester 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 Marcia S. Cohen and Ioannis D. Drivas 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.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that BRADLEY HEPPNER, the former chairman of GWG Holdings, Inc., a publicly traded company, was found guilty by a jury following a three-week trial before U.S. District Judge Jed S. Rakoff.  HEPPNER was convicted of securities fraud, wire fraud, conspiracy to commit securities fraud and wire fraud, and false statements to auditors in connection with a scheme to fraudulently extract more than $150 million from GWG.

“A unanimous jury has found former public company CEO and Chairman Bradley Heppner guilty of fraudulently extracting $150 million,” said U.S. Attorney Jay Clayton.  “Heppner used shell companies to hide his scheme.  When his house of cards began to collapse, he did not come clean.  Instead, he doubled down by falsifying emails and backdating documents to lie to the auditors, directors, and the SEC.  Our world-leading capital markets are built on trust and transparency.  The honesty and candor of C-Suite executives is essential, and this action should send a message: C-Suite executives who breach the public trust will be pursued by the SDNY’s Securities and Commodities Fraud Task Force and our dedicated partners at FBI, vigorously.  That is what investors and the American people want and deserve.”

As established during the trial:

Between 2018 and 2021, HEPPNER, as chairman of GWG Holdings, Inc.—a Nasdaq-listed financial services company that raised capital through bonds sold predominantly to retail investors and retirees—executed a scheme to fraudulently divert GWG funds to his own benefit through a shell company he controlled, the Highland Consolidated Limited Partnership (“HCLP”).

To effectuate the scheme, HEPPNER fabricated a $141 million debt that Beneficient, a subsidiary of GWG that HEPPNER had founded, purportedly owed to HCLP. Under the guise of repaying that debt, HEPPNER told the board of directors of GWG that it was necessary to transfer millions of dollars to Beneficient.  When a special committee of GWG’s board inquired about who controlled HCLP and would receive the debt payments, HEPPNER falsely represented that HCLP was independent and disclaimed any personal financial interest in payments made on the purported debt.  Those representations were false.  HCLP was controlled by HEPPNER, and when GWG authorized payments to satisfy what it believed were arm’s-length obligations to a third-party lender, those funds flowed through multiple corporate entities and ultimately into HEPPNER’s personal accounts.  HEPPNER used the proceeds for personal expenses, including renovating his Dallas mansion and purchasing a private jet travel and jewelry.

To conceal the scheme, HEPPNER made false and misleading statements and caused the preparation of backdated and fraudulent documents to deceive auditors in connection with their assessment of whether HCLP was independent of HEPPNER.  After GWG received a subpoena from the SEC, HEPPNER also falsified the minutes of an October 2019 board meeting, adding language to create the false appearance that he had previously disclosed to Beneficient his history of borrowing funds from HCLP, and caused the falsified minutes to be transmitted to the SEC.

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HEPPNER, 60, of Dallas, Texas, is scheduled to be sentenced by Judge Rakoff on October 7, 2026.  He faces a maximum sentence of 20 years in prison on each of the counts of securities fraud, wire fraud, and false statements to auditors, and a maximum of five years in prison on the conspiracy count. 

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

This case is being handled by SDNY’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel G. Nessim, Alexandra Rothman, and Kyle Wirshba are in charge of the prosecution.

Today, a Bronx man was sentenced in New York for the June 2021 murder of a U.S. national in Bangladesh.

Ganet Rozario, 54, a U.S. citizen from New York, was sentenced to 15 years in prison. Rozario previously pleaded guilty to one count of foreign murder of a U.S. national.

According to court documents and statements read in court, Rozario used a shotgun to kill his uncle, Michael Rozario, in Bangladesh. Both men are naturalized U.S. citizens originally from Bangladesh. The men had been involved in a years-long property dispute over the family home located in Munshiganji, Bangladesh. During a visit to Bangladesh in 2021, both men were staying at the property.

On the evening of June 11, 2021, Ganet went outside the family home to smoke a cigarette near his uncle’s bedroom window. While outside, he overheard his uncle, who was inside the house, insulting him. Ganet became angry, went back into the house, retrieved a shotgun, and went back outside. After shouting words to the effect of “you will not see the sun tomorrow,” Ganet fired a single shot through an opaque window shutter striking Michael Rozario on his right stomach and abdomen area, killing him. Ganet returned to the United States in July 2023 and was indicted for the murder of his uncle in April 2024.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and U.S. Attorney Jay Clayton for the Southern District of New York made the announcement.

The FBI Los Angeles and New York Field Offices investigated this case.

Acting Deputy Chief Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Christy Slavik for the Southern District of New York are prosecuting the case. The FBI’s Legal Attaché in Dhaka, Bangladesh and the Justice Department’s Office of International Affairs provided valuable assistance to the case. The Justice Department thanks the Government of Bangladesh for their cooperation.

United States Attorney for the Southern District of New York, Jay Clayton, announced that JADHIAN CORDERO was sentenced today to eight years in prison by U.S. District Judge Jed S. Rakoff for aiding and abetting the brandishing of a firearm in connection with an August 27, 2025, midday armed robbery in which a 69-year-old bystander was shot and killed.

“Jadhian Cordero chose to participate in the armed robbery of a drug dealer in the middle of the day on the street in East Harlem, which led to the death of Robin Wright, a 69-year-old, wholly innocent woman,” said U.S. Attorney Jay Clayton.  “New York City families deserve to live free of senseless and destructive violence on our streets.  Today’s sentence demonstrates that the women and men of this Office are dedicated to holding all participants in violent gun crimes accountable.”

As alleged in public court filings, statements in public court proceedings, and the charging documents in the case:

On August 27, 2025, shortly before 12:30 p.m., CORDERO and two co-conspirators (“CC-1” and “CC-2”) robbed a drug dealer (“Individual-1”) near East 109th Street and Madison Avenue in Manhattan.  During the robbery, CORDERO and his co-conspirators got into a physical altercation with Individual-1 before grabbing backpacks from Individual-1—which contained marijuana—and fleeing north on Madison Avenue.

CC-1 pulled a black firearm—equipped with a machine-gun conversion device—out of his right sweatshirt pocket and discharged 15 shots in quick succession in the general direction of Individual-1.  A 69-year-old woman, Robin Wright, was standing with a walker on the northwest corner of East 110th Street and Madison Avenue—in the direction that CC-1 shot the firearm—when she was struck by gunfire.  The victim was transported to the hospital, where she died.

Multiple members of the victim’s family submitted letters to the Court describing the victim as a loving parent and grandmother who was simply enjoying her afternoon when she fell victim to this senseless crime.

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In addition to the prison term, CORDERO, 19, of New York, New York, was sentenced to five years of supervised release.

Mr. Clayton praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the New York State Department of Corrections and Community Supervision, and the New York State Board of Parole.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Alexandra S. Messiter, Kathryn Wheelock, and Brandon D. Harper are in charge of the prosecution.   

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging SHORAI MOORE with one count of committing a hate crime in connection with his assault of a gay man on April 1, 2026.  MOORE was arrested this morning and will be presented later today before U.S. Magistrate Judge Valerie Figueredo.  The case has been assigned to U.S. District Judge Richard M. Berman.

“All New Yorkers deserve to live in their communities free from hate-fueled violence,” said U.S. Attorney Jay Clayton.  “Hate undermines all that we hold dear in New York, including providing opportunity to all.  No one should be targeted because of their sexual orientation.  This Office, working with our state and federal law enforcement partners, will always protect New Yorkers from hateful, violent crimes.”

“This alleged assault traumatized an innocent victim due to his sexual orientation,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Hate Crimes Task Force is committed to working with our law enforcement partners to protect our communities against violence driven by hate.”

“This defendant—who was already serving a federal sentence at a residential reentry facility—violently attacked a gay man based on the victim’s sexual orientation,” said NYPD Commissioner Jessica S. Tisch.  “Bias-motivated crimes tear at the fabric of society, and the NYPD will never tolerate hate of any kind in our city.  I thank our NYPD investigators, our partners at the FBI, and the U.S. Attorney’s Office for the Southern District for their work in this case, for their efforts to bring this criminal to justice.”

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

On April 1, 2026, MOORE was serving a term of imprisonment for narcotics trafficking at a Federal Bureau of Prisons residential reentry center in the Bronx, New York.  On that day, MOORE, while standing outside a Bronx deli, yelled anti-gay slurs and statements, including that gay people should “get off the block,” before assaulting a gay victim with his fist, a recycling bin, and a plastic crate. 

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MOORE, 31, of the Bronx, New York, is charged with one count of committing a hate crime, which carries a maximum sentence of 10 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 outstanding investigative work of the FBI and the NYPD.

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division.  Assistant U.S. Attorneys Andrew Jones and Madison Reddick Smyser are in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that FAISIL McCANTS was sentenced today to 37.5 years in prison by U.S. District Judge Jed S. Rakoff for possessing a machine gun in connection with an August 27, 2025, midday armed robbery and shooting in which McCANTS fired 15 rounds on a public street in East Harlem, striking and killing a 69-year-old bystander who was resting on her walker on the sidewalk. 

“Faisil McCants, a repeat violent offender, unloaded 15 bullets in a matter of seconds in the middle of the day on the street in East Harlem, killing Robin Wright, a 69-year-old, wholly innocent woman and forever destroying a family,” said U.S. Attorney Jay Clayton.  “It is an unspeakable tragedy, born of wanton violence that outrages all New Yorkers and all Americans.  New York City families expect and deserve to be free from purveyors of violence.  To deliver for the good people of New York, we must get gun-toting criminals off our streets.  New Yorkers have been clear:  if someone commits a federal gun crime on our streets, New Yorkers want them prosecuted to the fullest extent of the law.  McCants is now where he should be, serving a 37.5-year prison sentence.”     

As alleged in public court filings, statements in public court proceedings, and the charging documents in the case:

On August 27, 2025, shortly before 12:30 p.m., McCANTS and two co-conspirators (“CC-1” and “CC-2”) robbed a drug dealer (“Individual-1”) near East 109th Street and Madison Avenue in Manhattan.  During the robbery, McCANTS and his co-conspirators got into a physical altercation with Individual-1 before both McCANTS and CC-1 grabbed backpacks from Individual-1—which contained marijuana—and then fled north on Madison Avenue, turning onto East 110th Street.

McCANTS pulled a black firearm—equipped with a machine-gun conversion device—out of his right sweatshirt pocket and discharged 15 shots in quick succession in the general direction of Individual-1.  A photograph of McCants firing the machine gun is below:

A 69-year-old woman, Robin Wright, was standing with a walker on the northwest corner of East 110th Street and Madison Avenue—in the direction that McCANTS shot the firearm—when she was struck by gunfire.  The Victim was transported to the hospital, where she died.

Multiple members of the Victim’s family submitted letters to the Court describing the Victim as a loving parent and grandmother who was simply enjoying her afternoon when she fell victim to McCants’ crime.

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In addition to the prison term, McCANTS, 19, of New York, New York, was sentenced to five years of supervised release.

Mr. Clayton praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the New York State Department of Corrections and Community Supervision, and the New York State Board of Parole.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Alexandra S. Messiter, Kathryn Wheelock, and Brandon D. Harper are in charge of the prosecution.   

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced the unsealing of an Indictment charging VLADIMIR SKLAROV, a/k/a “Val Sklarov,” a/k/a “Gregory Mitchell,” a/k/a “Mark Simon Bentley,” with charges relating to his orchestration of an elaborate stock-backed lending scheme that defrauded a victim of at least approximately $450 million in valuable company shares.  SKLAROV was arrested in Chicago and presented before U.S. Magistrate Judge M. David Weisman in the Northern District of Illinois on Monday, May 4, 2026.  The case has been assigned to U.S. District Judge Analisa Torres in the Southern District of New York.

“As alleged, Vladimir Sklarov represented his company to be affiliated with, and have the financial backing of the famed New York Astor family in order to burnish his brand,” said U.S. Attorney Jay Clayton.  “That was a complete lie.  Sklarov used false prestige to gain control of hundreds of millions of dollars in stock and then liquidated those shares for his own benefit.  We urge investors in all sectors of the market to beware of fast talkers and smooth talkers who hide behind prestigious labels and cosmetic signs of wealth and access.  And refer fraudsters, pretenders, and cheats to the SEC, FINRA, the FBI, and the DOJ.  Our Office will continue to protect the integrity of the markets by pursuing bad actors who abuse trust and exploit others.”

“Vladimir Sklarov allegedly betrayed a trusting victim to steal more than $450 million in company shares,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI is committed to investigating fraudsters looking to selfishly profit.”

As alleged in the Indictment:[1]

From at least in or about 2021, up to and including at least in or about 2024, SKLAROV operated an entity called Astor Asset Group (“Astor”) that held itself out as a legitimate and experienced provider of stock-backed loans affiliated with the prominent Astor family.  In reality, SKLAROV had no such affiliation, and instead ran a sham company designed to steal valuable stock through lies and misleading representations.

SKLAROV used Astor to defraud a victim (“Victim-1”) of at least approximately $450 million through the operation of a purported stock-backed lending agreement (“SLA”).  SKLAROV told several lies in order to induce Victim-1 to transfer valuable shares in a company owned by Victim-1 (the “Company Shares”) as collateral for the loan, including that the loan would be funded with capital from the Astor family. Victim-1 received no such loan. Instead, soon after Victim-1 transferred the Company Shares, SKLAROV sold them; used some of the proceeds from the sale of Victim-1’s own property to fund the purported loan; and kept the hundreds of millions of dollars in remaining proceeds for himself and other members of the conspiracy.

At all times during the scheme, SKLAROV hid and lied about his true identity and instead claimed to be “Gregory Mitchell,” the “Managing Director” of Astor. Another individual acting at SKLAROV’s direction (“CC-1”) also used an alias and falsely claimed to be “Thomas Mellon,” the “CEO” of Astor. SKLAROV and his co-conspirators falsely claimed that their sham company was “[o]riginally set up on the foundations of the wealth of John Jacob Astor” and that they had various high-profile clients, including prestigious universities and investment funds.  In addition to lying about his own identity and the identity, history, and intentions of Astor, SKLAROV and other members of the scheme falsely represented that Victim-1’s Company Shares would not be sold unless Victim-1 defaulted on the loan.  Instead, shortly after liquidating Victim-1’s Shares, SKLAROV directed the proceeds through a complex web of domestic and international accounts associated with him, his co-conspirators, and his family members.

*                *                *

SKLAROV, 63, of Athens, Greece, is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, all of which carry a maximum sentence of 20 years in prison.

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

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Jackie Delligatti and Shaun Werbelow 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, 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 results of Operation Iron Pursuit, a one-month, nationwide enforcement effort to find child victims of sex abuse and arrest child sex predators.  More than 200 child victims were located and over 350 child sexual abuse offenders were arrested.  All 56 FBI field offices and U.S. Attorneys’ offices around the country participated in the coordinated takedown effort.

The operation commenced April 1 and ended April 30.  The Administration for Children and Families recognizes April as National Child Abuse Prevention Month.

“Every New Yorker wants, and every American wants, those who sexually exploit children and traffic in child pornography to be brought to justice and to be removed from our streets,” said U.S. Attorney Jay Clayton.  “The Department of Justice is committed to that mission, and under the leadership of Acting Attorney General Blanche we are delivering with a coordinated, all-hands-on-deck effort to identify, charge, and convict sexual predators.  The unified message we’re sending is clear: if you think you can get away with targeting children—you’re wrong.”

“This operation puts every child predator on notice: we are coming for you,” said Acting Attorney General Todd Blanche.  “The sexual exploitation of minors is an abomination with no place in our society.  We will hunt down these offenders, hold them fully accountable under the law, and deliver justice for victims.”

“Every single day this FBI is working 24/7 to break networks of child abusers all across this country,” said FBI Director Kash Patel.  “Last year we joined our partners delivering a record year, identifying and rescuing over 6,300 missing children, and today’s announcement of Operation Iron Pursuit is just the latest success in that work—with over 200 victims located and over 350 offenders arrested.  Let this be a message to criminal actors who seek to target America’s children: you will be pursued, and you will be brought to justice.”

“Removing dangerous child sex predators from our streets—such as the arrest of a Rockland County man for his alleged sexual exploitation of a minor—protects some of our most innocent and vulnerable members of society,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “We will never take our foot off the gas in the crimes against children fight.  May today’s announcement emphasize FBI New York’s commitment to holding accountable those who commit this horrific abuse.”

Victims recovered include a 10-year-old from Utah who was flown from Cuba to home and the child’s biological mother.  The child was supposed to be on a camping trip with a transgender parent, partner, and another child.  The group instead flew from Canada to Mexico and then to Cuba; concerns existed that the 10-year-old child was taken to Cuba for gender reassignment surgery.  FBI Victim Services Division (“VSD”) assisted with the recovery of the children, providing crisis support and stabilization.

Those arrested are alleged to have committed various crimes, including sexual exploitation, sex trafficking, abuse, kidnapping, and possessing, distributing, or receiving child sexual abuse materials.  Some of the alleged offenders include:

• A Columbus, Ohio, man who pleaded guilty to creating AI-generated obscene material of adults and children and to cyberstalking exes;
• A District of Columbia man charged with producing child pornography;
• A New York man charged with sexually exploiting a child; and
• A Pennsylvania man and former felon charged with sexually exploiting a child and illegally possessing a gun.

This effort follows three other successful operations last year.  Operation Relentless Justice, concluded in December 2025, resulted in the rescue of 205 children and arrests of 293 offenders.  Operation Enduring Justice, concluded in August 2025, resulted in the rescue of 133 children and the arrests of 234 offenders.  And Operation Restore Justice, concluded in May 2025, resulted in the rescue of 115 children and the arrests of 205 child sex abuse offenders.

The FBI’s VSD assisted victims during Operation Iron Pursuit and provided services such as forensic interviews, referrals for medical and mental health resources, and coordination with partners.  VSD's mission is to inform, support, and assist victims in navigating the aftermath of crime and the criminal justice process with dignity and resilience.

The Department of Justice partners with and oversees funding grants for the National Center for Missing and Exploited Children, which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI's tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

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

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, and Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), Frank Russo, announced today that MIGUEL FRANCISCO MORA NUNEZ pled guilty to possessing ammunition as an illegal alien in connection with the July 19, 2025, shooting of an off-duty CBP Officer in Manhattan.  MORA NUNEZ pled guilty today before U.S. District Judge Loretta A. Preska and is scheduled to be sentenced on September 1, 2026.

“Miguel Mora Nunez shot a federal officer in the face,” said U.S. Attorney Jay Clayton.  “Gun-toting criminals threaten our families, our communities, and our law enforcement professionals, who strive every day to keep us safe.  New Yorkers want criminals who use guns off the streets, and we are committed to delivering that result.”

“Last year's shooting of an off-duty CBP officer was an attack on the greater law enforcement community and on the rule of law itself, and this guilty plea is a significant step toward holding the defendant accountable and making clear that such violence will not be tolerated,” said HSI Special Agent in Charge Michael Alfonso.  “Together with our vital partners, HSI New York will continue to disrupt and dismantle criminal networks, ensuring our city, and our country, remain safe.”

“This guilty plea is an important step toward accountability for a brazen act of violence against one of our officers,” said CBP’s Director of New York Field Operations Frank Russo.  “Our focus remains on the well-being and recovery of our colleague, and on safeguarding the men and women who serve our communities every day.  We are grateful to the U.S. Attorney’s Office, Homeland Security Investigations, and the NYPD for their exceptional work.  Their continued partnership helps keep New York City safer and ensures that those who commit violent acts are brought to justice.”

As alleged in the charging instruments and statements made in public filings and public court proceedings:

On or about July 19, 2025, at approximately 11:50 p.m., MORA NUNEZ shot an off-duty CBP Officer in Fort Washington Park in Manhattan.  A bullet MORA NUNEZ fired struck the CBP Officer in the face and right arm.  The CBP Officer appeared to return fire, hitting MORA NUNEZ twice, before MORA NUNEZ fled on a motorbike driven by his co-defendant.

MORA NUNEZ entered the U.S. illegally, is in the U.S. unlawfully, and is subject to an order of removal from the U.S.

*                *                *

MORA NUNEZ, 22, of the Dominican Republic, pled guilty to one count of possession of ammunition as an illegal alien, which carries a maximum sentence of 15 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 Homeland Security Investigations, CBP, and the New York City Police Department for their assistance in this case.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Mostafa Khairy, Samantha Fry, and Christy Slavik are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that CARSEN MANSFIELD was sentenced to six years in prison by U.S. District Judge Cathy Seibel for receipt and distribution of child pornography and extortionate interstate communications.  MANSFIELD previously pled guilty to one count of receiving and distributing child sex abuse material and one count of extortionate interstate communications.

“Carsen Mansfield didn’t just traffic in sexually explicit images and videos of children—he threatened them to create more,” said U.S. Attorney Jay Clayton.  “In a city where kids are online every day, that kind of conduct is especially dangerous, and we will go after anyone who uses the internet to prey on them.  New Yorkers want their children protected from this heinous conduct and we’re listening.”

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

On August 1, 2024, MANSFIELD, while in Newburgh, New York, communicated with an individual (“Individual-1”) on X (then Twitter).  MANSFIELD used the X username “expogirlsss.”  MANSFIELD and Individual-1 discussed exchanging sexually explicit content with each other.  The defendant said, “[b]et and is there anything you’d like to trade in return? Or just take a look?”  Individual-1 replied, “just take a look and if I like I’ll maybee trade.”  The defendant replied, “[o]kay, I’ll send some tonight.”       

MANSFIELD then sent Individual-1 approximately 2 videos. One of the videos is of a topless woman on her knees with a penis in her mouth (“Adult-1”).  MANSFIELD described Adult-1 as his “sister.”[1]

Individual-1 then messaged MANSFIELD, “u expose ppl?” MANSFIELD replied, “[y]eah I do, but upon request.”  MANSFIELD then sent Individual-1 approximately 7 additional videos and 5 images, one of which was a sexually explicit video of a minor, Minor Victim-1, fully naked and masturbating (“Video-1”).  MANSFIELD then messaged Individual-1, “[u] got anything for me or nah? I was really hoping for at least a lil sum.”  MANSFIELD had originally received the video of Minor Victim-1 on SnapChat from Minor Victim-1.  Minor Victim-1 confirmed that MANSFIELD shared the video without her consent.

On or about August 4, 2024, MANSFIELD, while in Newburgh, New York, communicated with Minor Victim-2, who was located in Michigan, on Discord.  MANSFIELD used the Discord username “nonme45.#0.”  The defendant sent Minor Victim-2 a series of sexually explicit photographs (the “Minor Victim-2 Photos”).   At the time that the Minor Victim-2 Photos were taken, Minor Victim-2 was 14 years old.

After sending Minor Victim-2 the Minor Victim-2 Photos, MANSFIELD then demanded that Minor Victim-2 send him additional sexually explicit material.  MANSFIELD threatened that if Minor Victim-2 did not send him additional content, then he would release nude photos of Minor Vicitm-2.  MANSFIELD stated, “[w]ell I have these pictures and if you don’t send me more I’m going to send them to your friends and family.”  He added, “[y]our my slut now [and] failure to make me happy will end up exposed to your friends and family.”  Minor Victim-2 told MANSFIELD that she was not going to send him pictures and asked him to delete them.  MANSFIELD replied that he was “gonna pay you to make some stuff for me while I had these pics,” and “[b]ut if you don’t wanna do stuff I’ll just post everything it’s fine.”  Minor Victim-2 asked MANSFIELD why he was threatening her.  MANSFIELD replied, “I love power, and tbh most of the time I do this to sisters of people to get videos of them sucking off their brothers but you are an exception.”

*                *                *

In addition to the prison term, MANSFIELD, 24, of Newburgh, New York, was sentenced to five years of supervised release.           

Mr. Clayton praised the efforts of the Federal Bureau of Investigation Hudson Valley Safe Streets Task Force, Detroit Field Office, as well as the Town of Newburgh Police Department.                         

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Patricia M. Reville and Margaret Vasu are in charge of the prosecution.

[1] Adult-1, who is not MANSFIELD’s sister, confirmed that MANSFIELD shared the video without her consent.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JORDAN WATSON was sentenced to 78 months in prison by U.S. District Judge Nelson S. Román for receipt and distribution of child pornography.  WATSON previously pled guilty to two counts of receiving and distributing child sex abuse material. 

“Jordan Watson crossed a clear legal and moral line by pressuring children to produce sexually explicit images,” said U.S. Attorney Jay Clayton.  “This kind of conduct deepens the harm to victims and spreads far beyond a single interaction.  It affects families and communities here in New York, and we will hold accountable those who engage in this reprehensible conduct.”

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

In July and August 2021, WATSON—who was 23 years old at the time, but pretended to be 16 years old—while in Wappingers Falls, New York, communicated with a 12-year-old girl in Arizona (“Victim-1”) and a 12-year-old girl in Indiana (“Victim-2”) online, and persuaded each to engage in sexually explicit conduct, to produce a visual depiction of such conduct, and to transmit one or more images or videos depicting that conduct to him over the Internet. 

For example, over Snapchat, WATSON engaged in sexually explicit conversations with Victim-1. On July 18, 2021, WATSON described in graphic detail how he wanted to have sex with Victim-1 and asked Victim-1’s age.  Victim-1 initially told WATSON that she was “14” years old, although she was 12 years old at the time.  Later that same day, WATSON messaged Victim-1 “Send the pics”; “Send me stuff if you’re horny . . .”

On July 26, 2021, WATSON engaged in further conversations with Victim-1, the context surrounding which indicated that suggested that he was requesting or had requested sexually explicit material. Among other things, WATSON directed Victim-1 to “[p]ut them on infinity,” which is a reference to a setting on Snapchat that makes a video play on loop, so the video keeps repeating without stopping until the recipient closes it.  The same day, Vicitm-1 messaged Snapchat Account-1 “I’m almost 13,” reflecting her true age of 12.

On August 1, 2021, Victim-1 sent WATSON a sexually explicit video of herself masturbating.

WATSON also engaged in sexually explicit conversations with Victim-2 over Snapchat.  For example, on August 3, 2021, WATSON asked Victim-2 “how old are you”; Victim-2 responded that she was “13,” although she was in fact 12 years old.  WATSON then messaged Victim-2 “[l]ater TN you should show me something and I wanna fuck you it’ll be nice to see your titties bounce.” Several hours later, on August 4, 2021, WATSON sent Victim-2 numerous messages asking her to send sexually explicit images or videos of herself to him.  WATSON messaged Victim-2 “What would you send me”; “You can go to the bathroom and do some stuff please I’ll fuck you whenever you want”; “No pussy that’s what my dicks gonna be in and send videos playing with them”; “If you do it in the red you gotta send another pic of just your pussy.”  WATSON then directed Victim-2 to send “[t]its and face in bathroom and a video fingering yourself.”  When Victim-2 expressed concern that, if she sent WATSON sexually explicit videos, he would post them online, WATSON responded, “Please a quick pussy playing video no one will know.”

On August 5, 2021, WATSON messaged Victim-2, among other things, “Finger yourself for me”; “Show me and send like 20 videos put them on infinity so I can jerk off to them”; “And spit on the brush and suck on the brush and show your face cuz I wanna think that I’m fucking you.” Victim-2 responded “my wifi is slow but some are sending”; “6 videos.”  WATSON responded, “Send more please I’m horny asf for you.”

Shortly thereafter, on August 5, 2021, Victim-2 sent two videos to WATSON: a sexually explicit video of herself masturbating with a hairbrush, and video in which her face is visible, in which Victim-2 puts the same hairbrush in her mouth.

*                *                *

In addition to the prison term, WATSON, 27, of Wappingers Falls, New York, was sentenced to five years of supervised release.       

Mr. Clayton praised the efforts of the Federal Bureau of Investigation Hudson Valley Safe Streets Task Force, the Dutchess County Sheriff’s Office, and the Putnam County Sheriff’s Office.                                

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Patricia M. Reville and Stephanie Simon are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that NYDIRA ADAMS, a/k/a “Nadira Adams,” a/k/a “Nadira Adams-McMillan,” pled guilty today to carrying out a scheme in which she caused federal student loan borrowers to submit documents containing misrepresentations and false statements to the U.S. Department of Education to take advantage of the Public Service Loan Forgiveness program.  ADAMS’s scheme sought to cause the Department of Education to forgive over $5 million in federal student loan debt based on lies, misrepresentations, and falsehoods.  ADAMS pled guilty before U.S. District Judge Denise L. Cote.

“Nydira Adams marketed herself as a guru, but what she was really selling was fraud,” said U.S. Attorney Jay Clayton.  “Adams’s greed cost an important federal program servicing the American public over $5 million.  Programs funded by taxpayers and designed to reward genuine public service cannot be treated as personal profit centers.  New Yorkers and all Americans want us to make sure their tax dollars are not stolen.”

According to court filings and statements made in court proceedings:

From at least in or about March 2023 through at least in or about January 2025, Adams held herself out as the “Student Loan Default Guru” and operated a business under the same name.  In reality, AdAMS used misrepresentations, false statements, and false documents to deceive the Department of Education into forgiving federal student loans issued to borrowers who paid Adams thousands of dollars for her purported services. On multiple occasions, Adams knowingly and intentionally caused applications for Department of Education relief programs to be submitted that contained falsehoods pertaining to the borrowers’ eligibility for the relief programs. Among other falsehoods, Adams claimed that one California-based borrower worked full-time at a New York-based religious institution and falsely represented that another borrower worked full-time for a public school district.  Adams’s scheme resulted in an intended loss of over $5 million to the Department of Education.       

*                *                *

Adams, 38, of Pensacola, Florida, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 60 months 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 outstanding investigative work of the Department of Education Office of Inspector General – Eastern Regional Office, the New York Division of the U.S. Postal Inspection Service, and the Special Agents assigned to the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution. 

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

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, Special Agent in Charge of the New York Task Enforcement Division of the Drug Enforcement Administration (“DEA”), Farhana Islam, Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Bryan DiGirolamo, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging DARYL RUTHERFORD with firearms trafficking, the unlicensed dealing of firearms, interstate transportation and distribution of firearms, and possession of firearms and ammunition after a felony conviction for his involvement in illegally transporting over a dozen firearms, as well as ammunition, from South Carolina to New York City.  RUTHERFORD was arrested earlier today in South Carolina and is expected to be presented tomorrow morning before U.S. Magistrate Judge William S. Brown in the U.S. District Court for the District of South Carolina.

“Gun trafficking into New York fuels violent crime and New Yorkers want it stopped,” said U.S. Attorney Jay Clayton.  “As alleged, Daryl Rutherford contributed to the illegal flow of guns into New York City, endangering New Yorkers for nothing more than personal, financial gain.  New Yorkers deserve to live in communities free from illegal firearms and those who use them to commit crimes.  So, anyone who is thinking about trafficking firearms to New York should think again.  We and our law enforcement partners are watching, and we will hold you accountable.”

“As alleged, this defendant turned the South Carolina-to-New York City corridor into a freeway of illegal guns—smuggling semiautomatic pistols, rifles, and a high-capacity drum magazine through several states, and into the hands of an individual he believed was a criminal with bad intentions,” said HSI Acting Special Agent in Charge Michael Alfonso.  “This alleged reckless behavior arms criminals, endangers families, and fuels violence.  Each illicit weapon intercepted in this case prevents potentially tragic shootings that can destroy families and children’s futures.  HSI New York, together with HSI Greenville and our Homeland Security Task Force partners, will relentlessly target and dismantle gun pipelines that threaten the safety of all individuals residing in our communities.”

“Illegal interstate firearm trafficking schemes are a significant driver of gun violence in New York City and put communities at risk,” said ATF Special Agent in Charge Bryan DiGirolamo.  “The conduct alleged—a convicted felon transporting and selling an array of illegal firearms for profit—demonstrates a clear disregard for public safety & had the potential to cause devastating harm.  This case reflects the strength of coordinated law enforcement efforts—ATF NY Crime Gun Enforcement Team working with HSI, DEA, NYPD, and our prosecutorial partners—to disrupt these dangerous networks and hold offenders accountable.”

“Gun violence has plagued our city streets, many times fueled by illegal firearms being funneled into New York City by individuals who operate with no regard for human life, driving violence, turmoil, and fear in our neighborhoods,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam.  “Today’s arrest and indictment of Daryl Rutherford expose a dangerous pipeline responsible for trafficking multiple semiautomatic pistols and rifles, and other illegal firearms from South Carolina to New York City.  The DEA, along with our federal, state, and local partners, will continue to identify and target these criminal organizations at every level.  Let our message be clear: whether you traffic guns or drugs into New York City, you will be held accountable and justice will be delivered.  DEA New York’s Enforcement Division remains committed to protecting our communities and saving lives.”  

“The defendant allegedly transported a large cache of firearms—including semiautomatic rifles and a shotgun—along with ammunition across state lines and sold them illegally on our streets for profit,” said NYPD Commissioner Jessica S. Tisch.  “Thanks to the work of our NYPD investigators, law enforcement partners, and the U.S. Attorney’s Office for the Southern District of New York, this interstate gun trafficking pipeline has been shut down, dangerous firearms are off our streets, and this alleged criminal is being held accountable.” 

As alleged in the Indictment unsealed today in Manhattan federal court and in public court proceedings:[1]

From at least in or about December 2025 through at least in or about February 2026, RUTHERFORD, a convicted felon, illegally transported firearms and ammunition from South Carolina to New York City and sold them to a purchaser whom RUTHERFORD understood to be a prohibited person and an unlawful reseller of firearms.  Specifically, in four transactions, RUTHERFORD illegally sold approximately 14 firearms to an undercover law enforcement agent.  The firearms included multiple semiautomatic pistols, semiautomatic rifles, including one with a high-capacity drum magazine, as well as a 12-gauge shotgun.

Firearms RUTHERFORD sold on December 12, 2025

Firearms RUTHERFORD sold on December 18, 2025

Firearms RUTHERFORD sold on February 17, 2026

Firearms RUTHERFORD sold on February 24, 2026

*                *                *

RUTHERFORD, 51, of South Carolina, is charged with one count of firearms trafficking, which carries a maximum sentence of 15 years in prison; one count of unlicensed dealing of firearms, which carries a maximum sentence of five years in prison; one count of illegally transporting and distributing firearms, which carries a maximum sentence of five years in prison; and one count of possession of firearms and ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.

The statutory maximum and minimum 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 HSI New York Field Office, ATF, DEA New York Division, the NYPD, HSI Greenville, the New York Field Office of U.S. Customs and Border Protection, the South Carolina Law Enforcement Division, and the Union Public Safety Department.  

The case is being prosecuted by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorney Diarra M. Guthrie is in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced today the unsealing of an indictment charging RUBEN ROCHA MOYA, ENRIQUE INZUNZA CAZAREZ, ENRIQUE DIAZ VEGA, DAMASO CASTRO ZAAVEDRA, MARCO ANTONIO ALMANZA AVILES, ALBERTO JORGE CONTRERAS NUNEZ, a/k/a “Cholo,” GERARDO MERIDA SANCHEZ, JOSE ANTONIO DIONISIO HIPOLITO, a/k/a “Tornado,” JUAN DE DIOS GAMEZ MENDIVIL, and JUAN VALENZUELA MILLAN, a/k/a “Juanito,” with drug trafficking and related weapons offenses.  MILLAN is additionally charged with offenses related to his participation in kidnappings of a DEA source and the source’s relative that resulted in their deaths.  The defendants are all current or former high-ranking government and law enforcement officials in the Mexican State of Sinaloa (“Sinaloa”), including the current Governor of Sinaloa, RUBEN ROCHA MOYA, and are alleged to have partnered with the Sinaloa Cartel to distribute massive quantities of narcotics to the United States.  The case is assigned to U.S. District Judge Katherine Polk Failla.

“The Sinaloa Cartel is a ruthless criminal organization that has flooded this community with dangerous drugs for decades,” said U.S. Attorney Jay Clayton.  “As the indictment lays bare, the Sinaloa Cartel, and other drug trafficking organizations like it, would not operate as freely or successfully without corrupt politicians and law enforcement officials on their payroll.  The support of corrupt foreign officials for deadly trafficking of drugs must end.  Let these charges send a clear message to all officials around the globe who work with narco-traffickers: no matter your title or position, we are committed to bringing you to justice.”

“The Sinaloa Cartel is not just trafficking deadly drugs, it is a designated terrorist organization that relies on corruption and bribery to drive violence and profit,” said DEA Administrator Terrance Cole.  “This indictment exposes a deliberate effort to undermine public institutions and put American lives at risk.  The defendants allegedly used positions of trust to protect cartel operations, enabling a pipeline of deadly drugs into our country.  No one is above the law.  We are grateful for our U.S. and Mexican partners who choose integrity every day and stand with us to safeguard our communities.  Together, we will continue to apply sustained pressure against the Sinaloa Cartel and the networks that support it to protect the American people and save lives.”

According to the allegations contained in the Indictment, other court filings, and statements made during court proceedings:[1]

The Sinaloa Cartel (the “Cartel”) is one of the most violent criminal organizations in the world and has transformed the Mexican State of Sinaloa into the geographic epicenter of the global narcotics trade.  From its home base in Sinaloa, the Cartel has worked with criminal elements around the world—cocaine producers and distributors in Colombia and Venezuela, drug traffickers and corrupt politicians throughout Central and South America, and precursor chemical manufacturers in China and elsewhere—to distribute massive quantities of narcotics into the United States and inflict severe damage on communities throughout this country.  The Cartel has also carried out rampant violence, including thousands of murders, throughout Mexico and elsewhere around the world, including in the United States.

To protect and grow this drug trafficking empire, the Cartel has allegedly partnered with corrupt politicians and law enforcement officials, including the defendants, who have abused their authority in support of the Cartel, exposed and subjected victims to threats and violence, and sold out their offices in exchange for massive bribes.  Indeed, certain police officials in Mexico, including, as alleged, certain of the defendants, have directly participated in the Cartel’s violence and retribution, including by murdering enemies of the Cartel and kidnapping individuals in Mexico suspected of cooperating with U.S. law enforcement in this investigation.

The defendants charged in this Indictment are current and former government or law enforcement officials in Sinaloa.  As alleged, each of the defendants has participated in a corrupt and violent drug trafficking conspiracy with the Cartel to import massive amounts of fentanyl, heroin, cocaine, and methamphetamine from Mexico into the United States.  The defendants have played a variety of essential roles for the Cartel:  among other things, the defendants have allegedly shielded Cartel leaders from investigation, arrest, and prosecution; caused sensitive law enforcement and military information to be provided to members of the Cartel and allied drug traffickers to assist the Cartel’s criminal activities; directed members of state and local law enforcement agencies, such as the Sinaloa State Police, the Investigative Police for the Sinaloa State Attorney General’s Office, and the Culiacan Municipal Police, to protect drug loads stored in and transiting through Mexico to the United States; and allowed brutal drug-related violence to be committed by members of the Cartel without consequence.  In exchange, the defendants have collectively received millions of dollars in drug money from the Cartel. 

As alleged, the defendants have been most closely aligned with the faction of the Cartel run by the sons of Joaquin Archivaldo Guzman Loera, a/k/a “El Chapo,” the Cartel’s notorious former leader, who are themselves known collectively as the “Chapitos.”  The defendants have operated at all levels of government and law enforcement in Sinaloa and each abused their positions of trust and authority to help facilitate the Chapitos’ operations.  For example, ROCHA MOYA was elected Governor of Sinaloa, a position he has held since on or about November 1, 2021, after the Chapitos allegedly helped him get elected by, among other things, kidnapping and intimidating his rivals.  In exchange, both before and after he became Governor, ROCHA MOYA allegedly attended meetings with the Chapitos, at which he promised to protect the Chapitos as they distributed massive quantities of drugs to the United States and, as Governor, ROCHA MOYA has allowed the Chapitos to operate with impunity in Sinaloa.  Similarly, the other defendants have directly and repeatedly helped the Chapitos in exchange for massive drug-fueled bribes.  For example, ZAAVEDRA, who is the Deputy Attorney General for the Sinaloa State Attorney General’s Office, has received approximately $11,000 U.S. dollars each month from the Chapitos and, in exchange, has protected Chapitos members from arrest and informed the Chapitos of planned U.S.-backed law enforcement operations.

Certain of the defendants are also alleged to have themselves directly participated in the Cartel’s campaign of violence and retribution.  For example, MILLAN, a high-level commander in the Culiacan Municipal Police, allegedly received more than approximately $1,600 U.S. dollars each month from the Chapitos.  In exchange, MILLAN gave the Chapitos unfettered access to the Culiacan Municipal Police and used officers from the police force to help the Chapitos maintain their control over Culiacan, including through arrests, kidnappings, and murder.  In or about October 2023, MILLAN allegedly helped the Chapitos kidnap a DEA confidential source and the source’s relative, who the Chapitos then had tortured and killed, because the source was suspected of providing information to the Government in connection with this investigation.

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This Indictment is the latest in a series of indictments issued in this District since 2023, charging more than 30 members and associates of the Cartel, including members of the leadership of the Cartel, for their involvement in distributing massive quantities of narcotics into the United States and related crimes, which has resulted in a meaningful disruptive impact on the Cartel’s drug trafficking operations.

A chart containing the charges and minimum and maximum penalties each defendant faces is below.  All of the defendants are believed to currently reside in Mexico.

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

Mr. Clayton praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit and the DEA offices in Mexico and Phoenix, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division, and the Government of Mexico.  Mr. Clayton also thanked the U.S. Attorney’s Offices in the Northern District of Illinois and Southern District of California, and the Justice Department’s Money Laundering, Narcotics and Forfeiture Section.

Mr. Clayton also thanked the Homeland Security Task Force, a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jane Y. Chong, Sarah L. Kushner, and David J. Robles are in charge of the prosecution.

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

This case is part of the Homeland Security Task Force ("HSTF") initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. 

Defendant

Title

Age

Charges

Minimum and Maximum Penalties

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices

Narcotics importation conspiracy;

Possession of machineguns and destructive devices;

Conspiracy to possess machineguns and destructive devices;

Kidnapping resulting in death;

Conspiracy to commit kidnapping resulting in death

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that KEROME LENDON PAISLEY was sentenced to 10 years in prison for conspiring, while already imprisoned, to traffic more than a kilogram of fentanyl.  PAISLEY’s sentence was imposed by U.S. District Judge Cathy Seibel, who also presided over his guilty plea.

“After serving nearly 22 years in federal prison for a prior narcotics conspiracy, Kerome Paisley was given a chance to reenter society,” said U.S. Attorney Jay Clayton.  “Instead, he brazenly chose to traffic more than 10,000 counterfeit fentanyl pills from behind bars, potentially endangering countless New Yorkers.  Those who are committed to dealing deadly drugs as a way of life—even from prison—will earn themselves substantial federal prison time.”

According to the Complaint, the Indictment, and other documents in the public record:

During February 2025, as part of a narcotics trafficking conspiracy, PAISLEY used a contraband cellphone to organize the sale of over 10,000 counterfeit fentanyl pills that resembled legitimate 30 mg oxycodone pills.  After a co-conspirator of PAISLEY’s brought the pills to Peekskill, New York, to sell them, law enforcement officers found and seized them.  At the time, PAISLEY was approaching the end of a nearly 22-year federal prison sentence due to his role in a prior narcotics trafficking conspiracy.  After determining PAISLEY’s identity, law enforcement officers arrested PAISLEY on the day he was due to be released from his prior sentence.

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In addition to the prison term, PAISLEY, 49, of Jamaica, was sentenced to five years of supervised release.

Mr. Clayton praised the investigative work of Homeland Security Investigations and the Drug Enforcement Administration.  

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Carmi Schickler is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the Washington, D.C., Field Office of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Cynthia Hearn, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that MAXIMILIEN DE HOOP CARTIER was sentenced to eight years in prison for his role in a sophisticated international money laundering network that laundered hundreds of millions of dollars in illicit proceeds, including the proceeds of drug trafficking, through the United States.  CARTIER was sentenced today before U.S. District Judge Mary Kay Vyskocil.  On October 23, 2025, CARTIER pled guilty to one count of operating an unlicensed money transmitting business and one count of conspiracy to commit bank fraud. 

“Maximilien de Hoop Cartier exploited his knowledge of U.S. and international financial systems to launder drug money and other crime proceeds,” said U.S. Attorney Jay Clayton.  “De Hoop Cartier created a network of shell companies and crypto accounts to wash and conceal criminal proceeds.  He used that network to funnel hundreds of millions of dollars from the United States to overseas criminal organizations, fueling their continued illicit operations.  Stopping money laundering stops crime more broadly.  This federal prison sentence sends a clear message that those who launder criminal proceeds will face serious consequences.” 

“Today’s announcement demonstrates IRS Criminal Investigation’s commitment to disrupting the illicit flow of money that enables narcotics traffickers to illegally launder millions in illicit drug money,” said IRS-CI Acting Special Agent in Charge Cynthia Hearn.  “Our Global Illicit Financial Team is proud to have provided its financial expertise in this investigation.  CI and our law enforcement partners are committed to aggressively investigating individuals who engage in money laundering and other financial crimes.”

“Maximilien de Hoop Cartier exploited U.S. companies and banks to launder hundreds of millions of dollars in support of international criminal enterprises,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI and our law enforcement partners on the New York Homeland Security Task Force remain determined to stopping illegal cash flow into foreign countries.”

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

Since at least 2018 through the date of the defendant’s arrest, CARTIER, a descendant of the Cartier family known for luxury jewelry, ran an unlicensed money transmitting business that operated an over-the-counter (“OTC”) cryptocurrency exchange to buy and sell cryptocurrency on behalf of his clients.  This operation played a key role in a sophisticated international money laundering network that exploited the U.S. financial system to launder hundreds of millions of dollars in criminal proceeds through the United States to Colombia, among other countries.

CARTIER’s OTC cryptocurrency exchange consisted of a large network of U.S.-based shell companies that CARTIER operated and controlled for the sole purpose of converting cryptocurrency into hard currency.  CARTIER opened more than a dozen accounts at U.S. banks, lying to the banks about the nature of his businesses and the purposes of the bank accounts.  CARTIER fraudulently claimed the businesses operated in the software publishing and software development industries, when in fact they existed for the sole purpose of receiving and transmitting drug money and other crime proceeds.  CARTIER used forged contracts, invoices, and other business records to make it appear to banks that the funds related to legitimate business rather than crime.  CARTIER received drug money in the form of cryptocurrency, converted that cryptocurrency into hard currency, deposited it into shell company accounts that CARTIER opened and controlled, and then transmitted the funds to other nodes in the money-laundering network to further conceal their nature and origin before the funds were ultimately withdrawn in local currency in Colombia.  CARTIER knew that he was operating a money services business for criminals but did not register as a money transmitting business or follow the anti-money laundering protocols required by law.  In total, CARTIER personally helped launder more than $470 million through his shell companies.

In April 2021, as part of a separate investigation, a court issued warrants to seize three accounts held by CARTIER’s shell companies because they had received approximately $937,000 in drug trafficking proceeds from an undercover law enforcement account.  After the seizure, CARTIER and his lawyer met with federal agents and prosecutors with the U.S. Attorney’s Office for the Eastern District of Pennsylvania to persuade law enforcement to return the seized funds.  During this meeting, CARTIER admitted that he told banks he was in the business of technology software services—instead of stating that he operated as a cryptocurrency exchange—and also acknowledged that he was operating as an unlicensed money remitter.  CARTIER also lied to the federal agents, however, falsely claiming that he had know-your-customer and other compliance procedures and that he was in the process of applying for a money transmitting license; and provided forged business records to support his claim to the funds.  Based on CARTIER’s lies and forged records, a portion of the seized money was returned to him.

*                *                *

In addition to his term of prison, CARTIER, 58, a resident of France and citizen of Argentina, was ordered to pay $2,362,160.62 in forfeiture, representing funds CARTIER kept as a commission for his work with the Network converting cryptocurrency to hard currency.  He was additionally ordered to forfeit certain of his shell companies’ bank accounts.

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) and its New York Field Office; Homeland Security Investigations’ New York El Dorado Task Force; and IRS-Criminal Investigation, Global Illicit Financial Team.  Mr. Clayton also thanked the FBI’s Legal Attaché Office in Colombia, the Colombian National Police, the Department of Justice’s Office of International Affairs, and the U.S. Embassy in Colombia.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Jennifer N. Ong, Eli J. Mark, and David A. Markewitz are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Special Operations Division of the Drug Enforcement Administration (“DEA”), Cindy Marx, announced today the unsealing of an Indictment charging WENFENG CUI, a/k/a “Vincen,” and FAN PANG, a/k/a “Jerry,” with conspiracy to traffic methamphetamine, conspiracy to import methamphetamine precursor chemicals, and methamphetamine importation related to a nearly year-long effort to research, develop, and put into operation a technologically sophisticated factory to mass produce methamphetamine.  The defendants were arrested in New York City on February 2, 2026, after a meeting in which they provided detailed instructions for the chemical synthesis of the drug, as well as the technological operation of industrial machinery the defendants created to produce it.  Law enforcement authorities later seized shipping containers packed with the equipment at a port in Europe.  Both defendants were previously charged by criminal complaint and presented before U.S. Magistrate Judge Gabriel W. Gorenstein, who ordered them detained pending trial.  The case is assigned to U.S. District Judge Lorna G. Schofield.

“As alleged, the defendants worked with chemists and engineers to develop and deploy a sophisticated technology for the industrial production of methamphetamine capable of producing 400 kilograms of ‘meth’ every day,” said U.S. Attorney Jay Clayton.  “Their goal was terrifying in its ambition.  The potential harm of this scale of methamphetamine on our streets should give all New Yorkers and all Americans pause.  This Office will find and prosecute not only the dealers distributing poison to New Yorkers, but also the people behind those operations.  Working with our international law enforcement partners, we will bring narcotics traffickers to justice—no matter where they are in the world, and no matter whether they commit their crimes in laboratories or on street corners.” 

“This indictment underscores the evolving threat posed by the synthetic drug market, in particular the increase we are seeing in methamphetamine,” said DEA Special Agent in Charge Cindy Marx, Special Operations Division. “The level of technical expertise, industrial-scale machinery, and international reach revealed in this case is a stark reminder that today’s illicit drug trade is driven by innovation and relentless adaptation. The cartels are adapting, and so are we. DEA will continue to leverage its resources to protect our communities from the devastating impact of synthetic drugs.”

According to the allegations contained in the Indictment and other public court filings:[1]

Over the course of approximately eight months, confidential sources acting at the direction of the DEA and posing as narcotics traffickers communicated regularly with CUI and PANG in order to broker chemical agreements.  During one recorded call, CUI said that he could produce customized machinery to produce methamphetamine over the course of several months, and additional machines with subsequently refined designs in as few as 30 days.  CUI said that he could provide training in the assembly, installation, and operation of the equipment once it was produced, and offered ongoing parts and technical support on-site in Central America to a narcotics trafficker who purported to be located in Guatemala.

During a June 5, 2025, meeting, CUI said that he had many repeat customers who purchased hundreds of kilograms of precursor chemical from which methamphetamine could be synthesized from CUI and PANG.

During a June 17, 2025, meeting, CUI said, in sum and substance, that prototype machinery was already working.  PANG said that a completed machine could be ready by July and would produce as much as 800 kilograms of methamphetamine per production cycle.  During the meeting, CUI and PANG also offered to facilitate the sale of a sample of approximately forty kilograms of methylamine hydrochloride, a List I chemical used in the synthesis of methamphetamine.  CUI offered to deliver the chemical from China to New York in exchange for $4,000.  After the meeting, on or about June 18, 2025, CUI sent a confidential source screenshots of the chemical compositions of controlled substances his synthesis techniques could produce, including the CAS Registry number for methamphetamine. In August 2025, the defendant directed the shipment of methamphetamine precursor chemicals to New York.

In the course of developing the technology, CUI produced and disseminated detailed blueprints and schematics, technical specifications, equipment lists, and instruction manuals for both the assembly of the machinery into an industrial laboratory and the operational synthesis of methamphetamine using the machinery.  For example, CUI provided: a spreadsheet identifying dozens of necessary component parts, including stainless steel reactors, condensers, storage tanks, valves, explosion-proof pumps, refrigeration and hydrogenation systems, cylinders, centrifuges, and compressors; a detailed, nearly 5,000-word instruction manual for synthesizing meth using the technology, specifying, among other things, chemical proportions, pressure levels, and temperature controls; a flowchart visualizing the steps of production; and renderings of the laboratory assembly:

In January 2026, CUI sent a confidential source multiple photos and videos of the machinery as it neared completion, including the below:

After completing fabrication in December 2025, CUI and PANG directed the shipment of the full-scale methamphetamine production factory to a port in a European country.  According to freight records, the laboratory equipment—weighing more than 21,120 kilograms and measuring nearly 200 cubic meters—was packed into multiple shipping containers and dispatched from a port in Shanghai.  CUI sent a confidential source photographs of workers loading the equipment into shipping containers.  Standing next to the machine, CUI’s workers boasted that the technology—a “complete set of automated equipment”—represented the “future of the global chemical industry”:

In February 2026, law enforcement officials in a European country seized multiple shipping containers containing the machinery, including the components pictured below:

*               *                *

CUI, 41, and PANG, 26, both citizens of the People’s Republic of China, are charged with one count of conspiracy to distribute methamphetamine, which carries a maximum sentence of life in prison; one count of conspiracy to import methamphetamine precursor chemical with intent to manufacture narcotics, which carries a maximum sentence of 20 years in prison; and one count of importation of methamphetamine precursor chemical, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit.  Mr. Clayton also thanked the Polish Provincial Police of Wroclaw and the Lower Silesian Branch of the National Prosecutors Office, and the German Zentrale Kriminalinspektion (“ZKI”) Osnabrück.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Ryan T. Nees is in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, 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).

*                *                *

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.

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.

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.

*                *                *

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.

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

*                *                *

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.

Count One

Racketeering Conspiracy

18 U.S.C. § 1962(d)

ALEJANDRO COLON

OSCAR OLIVENCIA

Count 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

Count 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

Count 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

Count 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.

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.

*                *                *

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.

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.

*                      *                      *

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.

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.

*                *                *

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.

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.

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.

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.