Southern District of New York

United States Attorney for the Southern District of New York, Jay Clayton, announced that GIOVANNI PENNETTA pled guilty today before U.S. Magistrate Judge Gary Stein to wire fraud for running a scheme to fraudulently induce multiple investment clients to part with millions of dollars in exchange for economic exposure to shares of non-public companies.

“Giovanni Pennetta, manager of a New York-based financial firm, raised millions of dollars by claiming he could give investors access to shares of private companies before they went public,” said U.S. Attorney Jay Clayton.  “That access did not exist.  Instead, Pennetta diverted more than $10 million for his own benefit.  Protecting the integrity of New York’s public and private financial markets is a central part of our Office’s mission, and for the safety of investors, we will continue to hold fraudsters like Pennetta criminally accountable.”

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

Over a period of roughly six years, PENNETTA, the manager of a Manhattan-based investment adviser and private equity firm, engaged in a scheme to defraud investors who had entrusted him with millions of dollars to access shares of private companies.  PENNETTA induced investors to contribute capital to his private equity fund by promising them economic exposure to shares of pre-IPO companies.  Instead, PENNETTA misappropriated more than $10 million in investor money, moving much of it to his personal bank account.

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PENNETTA, 50, of New York, New York, and Italy, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  PENNETTA is scheduled to be sentenced on June 9, 2026.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of DERRICK VAN YEBOAH, a/k/a “Van,” for his role in an international criminal organization that stole more than $100 million from victims via romance scams and business email compromises.  VAN YEBOAH pled guilty today to conspiracy to commit wire fraud before U.S. District Judge Arun Subramanian.

“Derrick Van Yeboah pled guilty today to a massive criminal scheme targeting elderly men and women in online romance scams,” said U.S. Attorney Jay Clayton.  “Many New Yorkers search for companionship online, and no one deserves to have their vulnerability met with fraud and theft.  Van Yeboah cruelly exploited those vulnerabilities for over $10 million in illicit profit.  Today’s plea is a reminder to be vigilant online—especially on dating websites, never give money to someone you just met—and if it seems too good to be true, it probably is.”

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

VAN YEBOAH was a member of a criminal organization primarily based in Ghana that committed romance scams and business email compromises against individuals and businesses located across the United States.  Many of the conspiracy’s victims were vulnerable older men and women who were tricked into believing that they were in online romantic relationships with persons who were, in fact, fake identities assumed by members of the conspiracy.  Once members of the conspiracy had gained the trust of their victims, they deceived those victims into sending their money to the enterprise or into helping them launder funds from other victims.  The conspirators also committed business email compromises to trick and deceive businesses into wiring funds to the enterprise.  In total, the conspiracy stole and laundered more than $100 million from dozens of victims.  After stealing the money, the fraud proceeds were then laundered to West Africa.

VAN YEBOAH personally perpetrated many of the romance scams by impersonating fake romantic partners in communications with victims.  He is being held responsible for more than $10 million he stole from victims via his romance scams.

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VAN YEBOAH, 40, of Ghana, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.  VAN YEBOAH also agreed to make restitution and pay forfeiture, both in the amount of $10,149,429.17.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.   VAN YEBOAH is scheduled to be sentenced by Judge Subramanian on June 3, 2026. 

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  He also thanked Ghana and the U.S. Department of Justice’s Office of International Affairs for their assistance. 

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MITTEL PATEL, a United Kingdom national, was sentenced to 186 months in prison by U.S. District Judge Jennifer H. Rearden, before whom he previously pled guilty, for his participation in a conspiracy to import approximately 400 kilograms of cocaine into the United States.

“The illicit trafficking of narcotics and weapons poses an extreme threat to all New Yorkers and all Americans—and that threat is real,” said U.S. Attorney Jay Clayton.  “Mittel Patel conspired to sell an arsenal of military-grade weaponry to persons he believed to be working for a violent drug cartel so the purported cartel could protect a shipment of hundreds of kilograms of deadly narcotics into the United States.  The contemplated weapons and drugs could kill thousands of innocent Americans.  Thanks to the extraordinary investigative work of the DEA and our other law enforcement partners, Patel was apprehended before he could make good on his efforts to endanger American lives, and he is now incarcerated.  Large-scale drug trafficking and the provision of weapons pose a broad and deadly threat to our safety, security, and freedom.  Every American should know: the success of drug and weapons suppliers, and the cartels and other transnational criminal organizations they serve, comes at the cost of innocent American lives.”

As reflected in the Complaint, the Indictment, and other filings and information in the public record:

PATEL was a narcotics and weapons trafficker based in London, United Kingdom.  In 2021, an undercover DEA agent (“UC-1”) began communicating with PATEL about possible narcotics and weapons transactions, including PATEL and PATEL’s U.S.-based co-conspirators illegally providing UC-1 with an assortment of military-grade weapons, including machine guns, assault rifles, sniper rifles, and rocket-propelled grenades (“RPGs”).  As the discussions evolved, UC-1 conveyed to PATEL that UC-1 had arranged to purchase approximately 400 kilograms of cocaine from the Sinaloa Cartel, on the condition that UC-1 provide weapons to the Sinaloa Cartel to protect the drug shipment as it crossed the border from Mexico to the United States and in exchange for PATEL providing additional security for future drug shipments.

In August 2022, PATEL and his co-conspirators agreed to provide two sample firearms to UC-1, in exchange for $10,000.  PATEL and his co-conspirators then executed those sample weapons transactions and sent to an address located in the United States, in five separate packages, the parts for an AR-15 assault rifle and a sniper rifle with a scope, both pictured below:

PATEL understood from UC-1 that these weapons would be provided as a sample to the Sinaloa Cartel, as a prelude to the 400-kilogram drug transaction and a larger weapons order.  PATEL confirmed that, for the larger order, he and his co-conspirators could provide, in addition to the sample weapons, machine guns and RPGs.

On February 14, 2023, PATEL met with UC-1 in Athens, Greece to continue their discussions.  PATEL was arrested by Greek authorities following the meeting, and he was extradited to the United States on February 15, 2024.

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In addition to the prison term, PATEL, 47, was sentenced to five years of supervised release.

Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit.  Mr. Clayton also thanked the DEA New York Field Office, DEA Athens, the Office of International Affairs of the Department of Justice’s Criminal Division, and our law enforcement partners in Greece for their assistance.

The case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jonathan L. Bodansky and Jacob H. Gutwillig are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced the conviction of DARRYL COHEN for defrauding three professional basketball players who were among his former financial advisory clients, following a five-week jury trial before U.S. District Judge Vernon S. Broderick. 

“Financial Advisor Darryl Cohen built trust with successful pro athletes—then betrayed it, stealing their money to fund personal luxuries, including a state-of-the-art gym in his own backyard,” said U.S. Attorney Jay Clayton.  “New Yorkers deserve honest financial advice—not advisors who scheme to steal clients’ funds, rather than protect their financial interests—and this Office is committed to removing bad actors from our markets.”   

According to the charging documents, statements made in public filings, and public court proceedings, including evidence presented at trial:

From at least in or about 2017 through in or about 2020, COHEN, a registered investment adviser, orchestrated a scheme to defraud three different professional basketball player clients—Chandler Parsons, Courtney Lee, and Jrue Holiday—of a total of over $5 million by taking advantage of his advisory and fiduciary relationships with them. 

First, COHEN and accountant BRIAN GILDER fraudulently induced Parsons, Lee, and Holiday to purchase viatical life insurance policies at massive markups.  COHEN did not disclose that GILDER had arranged for a law firm (“Law Firm-1”) that he controlled to purchase the policies and then to sell them to the athletes at markups of 222%, 310%, and 244%, respectively.  Indeed, Law Firm-1 made approximately $4.5 million in profit from the sale of the policies to COHEN’s athlete clients.  COHEN and GILDER used a substantial portion of these illicit proceeds to pay their own personal expenses.  In particular, COHEN: (i) used approximately $178,462 of the funds to renovate his home and to perform work on his pool; (iii) used approximately $67,500 of the funds to pay off his personal credit card bill; and (iv) transferred approximately $200,000 of the funds to an individual with whom he was in a romantic relationship.

Second, COHEN directed that $500,000 be transferred from the accounts of Parsons and Lee as purported donations to a non-profit organization, Beast Basketball.  COHEN then used approximately $238,000 of the funds purportedly donated to the non-profit to build a state-of-the-art athletic gym in the backyard of his home.  Parsons and Lee never, in fact, authorized any transfers of their funds to Beast Basketball.  When Parsons confronted COHEN about the donations, COHEN told Parsons in a text message, in substance and in part, that Parsons’s money had “[h]elped a lot of future prospects and a lot of underprivileged kids.”  COHEN did not disclose to Parsons that a substantial portion of Parsons’s donations had, in fact, been used to build a state-of-the-art athletic gym in COHEN’s backyard.

Third, COHEN used a sports agency and another law firm to channel approximately $328,125 of Parsons’s money to repay a former professional baseball player, Nyjer Morgan, who was a disgruntled client of COHEN’s.  Morgan had expressed concern to COHEN about investments and loans that COHEN made on Morgan’s behalf and demanded to be repaid.  On or about February 19, 2020, in the midst of making the payments of Parsons’s money to Morgan, COHEN messaged GILDER, “We gotta send [Morgan] more to get rid of him.”  Parsons did not authorize COHEN to use of funds from his account to pay off Morgan. 

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COHEN, 52, of Chatsworth, California, was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison, as well as one count of investment adviser fraud, which carries a maximum sentence of five years in prison.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. COHEN is scheduled to be sentenced by Judge Broderick at a date to be determined.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the United States Attorney’s Offices for the Central District of California, the Northern District of Georgia, and the Southern District of Texas for their assistance in the investigation.  Mr. Clayton further thanked the U.S. Securities and Exchange Commission, which filed a parallel civil action against COHEN, for its assistance and cooperation in this investigation.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Kevin Mead, Brandon Thompson, and William Kinder are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that CHRISTINE HUNSICKER, the founder and former Chief Executive Officer of CaaStle Inc. (“CaaStle”), pled guilty to one count of securities fraud in connection with a scheme to defraud hundreds of investors in CaaStle, a retail-technology business.  As part of her plea, HUNSICKER agreed to forfeit nearly $300 million in proceeds from her illegal scheme, as well as from a scheme to defraud investors in P180, a related business venture.  HUNSICKER pled guilty today before U.S. District Judge J. Paul Oetken. 

“Christine Hunsicker fashioned a massive fraud scheme, built on forged documents, fabricated audits, and material misrepresentations to hundreds of venture capital investors,” said U.S. Attorney Jay Clayton.  “Today’s guilty plea sends a clear message: individuals who exploit investor trust for personal gain will be held accountable.  Fraud in the venture capital ecosystem not only harms investors financially, but also undermines innovation and confidence in emerging businesses. We will continue to pursue those who deceive investors and distort our private markets.”

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

HUNSICKER, a well-known entrepreneur and successful businessperson in the fashion-tech industry, founded and was the CEO of CaaStle, a clothing technology business.  While promoting CaaStle as a rapidly growing business valued at more than $1.4 billion, HUNSICKER knew that CaaStle was in financial distress with limited cash and significant expenses.  To raise the capital for CaaStle’s operations, HUNSICKER provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that grossly overstated CaaStle’s operating profit, revenue, and available cash.  She also misrepresented to investors that their funds would be used to purchase discounted shares from existing shareholders who needed liquidity, when in fact she fabricated the existence of those shareholders and used the money as new capital for CaaStle while concealing the company’s cash needs.

When confronted by an audit firm in October 2023 about transmitting a fake audit to an investor, HUNSICKER lied, falsely claiming that she had created the fake audit in connection with a lecture she gave at Princeton University, and that sending the audit to the investor had been a one-time error.  In reality, HUNSICKER had provided two fake audits to the investor while soliciting an investment.  She later repaid that investor to prevent the public disclosure of her fraud. Undeterred, she continued the scheme, providing an investor with fake bank account screenshots showing nearly $200 million in available cash when CaaStle had less than $200,000.  One month later, in October 2024, HUNSICKER provided a different investor with a fake draft audit.  In 2024, HUNSICKER also falsified the signatures of two Board directors to make it appear that the Board had authorized the grant of stock options to another investor, raising more than $20 million for CaaStle.

In 2024, HUNSICKER extended her fraudulent activities to P180, a new business venture. HUNSICKER intended for P180 to acquire clothing brands. P180 would then pay for and leverage the CaaStle service, which would infuse CaaStle with desperately needed cash.  HUNSICKER raised millions of dollars for P180 from existing CaaStle investors. In soliciting these investments, HUNSICKER repeated misrepresentations about CaaStle’s financial performance, and failed to disclose that her prior representations regarding CaaStle had been false.

In December 2024, the CaaStle Board removed HUNSICKER as Chair and prohibited her from soliciting investments. HUNSICKER, however, continued her fraudulent activities and raised and attempted to raise new capital for CaaStle and P180.  In February 2025, HUNSICKER attempted to sell an additional $19 million of her CaaStle shares to another investor.  HUNSICKER persisted in her deceptive practices even after law enforcement agents seized her electronic devices in March 2025, continuing to meet with the investor about a fake audit without revealing its fraudulent nature, her removal from the Board, or the prohibition against her selling shares.  CaaStle filed for Chapter 7 bankruptcy on June 20, 2025.

If you believe you have been a victim of the schemes described above, and you wish to provide information to law enforcement in connection to sentencing or to receive additional information, please contact Valeen Defendre, the Victim Witness Coordinator at the U.S. Attorney’s Office of the Southern District of New York, at 866-874-8900 or [email protected].

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HUNSICKER, 48, of Lafayette, New Jersey, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.            

The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  HUNSICKER is scheduled to be sentenced by Judge Oetken on August 5, 2026.

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action, for its assistance and cooperation in the investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, Administrator of the Drug Enforcement Administration (“DEA”), Terrance Cole, and Assistant Attorney General for National Security, John A. Eisenberg, announced today that TAKESHI EBISAWA, a Japanese national, was sentenced today to 20 years in prison by U.S. District Judge Colleen McMahon for his participation in a conspiracy to traffic nuclear materials, including uranium and weapons-grade plutonium, from Burma to other countries, as well as his participation in international narcotics trafficking, weapons, and money laundering crimes.  EBISAWA previously pled guilty to six counts for those offenses before Judge McMahon.

“The illicit trafficking of nuclear materials is an existential threat to every New Yorker and every American,” said U.S. Attorney Jay Clayton.  “Takeshi Ebisawa tried to sell uranium, thorium, and plutonium to fuel a purported nuclear weapons program, along with deadly drugs destined for U.S. streets.  In exchange, Ebisawa hoped to procure battlefield weapons for insurgent groups and profit for himself.  This case is a testament to the extraordinary efforts of our law enforcement partners, who worked across three continents to stop Ebisawa and bring him to justice in the United States.”

“National security and public safety are the very tenets of DEA’s mission, and this case demonstrates our ability to dismantle the world’s most dangerous criminal networks,” said DEA Administrator Terrance Cole.  “Today’s sentence should send a clear message: threatening the United States by trafficking nuclear materials, narcotics, and military-grade weapons will trigger an uncompromising response.  DEA will hold conspirators accountable—no matter the distance, no matter their allegiance.”

“Thanks to the exceptional work of the DEA and our DOJ prosecutors, Takeshi Ebisawa has been held accountable for his crimes, including an attempt to sell weapons-grade plutonium to Iran and to flood New York with deadly narcotics,” said Assistant Attorney General for National Security John A. Eisenberg.  “The National Security Division will continue to work with our law enforcement partners to identify and dismantle criminal networks that seek to profit from the illicit trade in deadly weapons and substances.”

As reflected in the Complaint, the Superseding Indictment, and other filings and information in the public record:

From in or about 2019 until EBISAWA’s arrest on or about April 4, 2022, the DEA investigated EBISAWA in connection with the large-scale trafficking of narcotics, weapons, and nuclear materials.  During the investigation, EBISAWA unwittingly introduced an undercover DEA agent (“UC-1”), posing as a narcotics and weapons trafficker, to EBISAWA’s international network of criminal associates, which spanned Japan, Thailand, Burma, Sri Lanka, and the United States, among other places, for the purpose of arranging criminal transactions.  Over the course of three years, EBISAWA and his associates negotiated four sets of transactions with UC-1.

First, EBISAWA attempted to broker the sale of nuclear materials in exchange for military-grade weapons, including surface-to-air missiles, for an ethnic insurgent group in Burma.  EBISAWA intended to sell this nuclear material to UC-1’s associate, who was posing as an Iranian general in charge of Iran’s nuclear weapons program (the “General”). After initially offering uranium, EBISAWA proposed to supply the General with “plutonium” that would be even “better” and more “powerful” than uranium for Iran’s use.  In or about February 2022, EBISAWA and two co-conspirators met with UC-1 in Thailand, where one of the co-conspirators showed UC-1 samples of the nuclear materials (the “Nuclear Samples”).  With the assistance of Thai authorities, the Nuclear Samples were seized and subsequently transferred to the custody of U.S. law enforcement.  A U.S. nuclear forensic laboratory examined the Nuclear Samples and determined they contained detectable quantities of uranium, thorium, and weapons-grade plutonium.

Second, EBISAWA attempted to broker the sale of methamphetamine and heroin to UC-1 in exchange for heavy weapons for another ethnic insurgent group in Burma.  EBISAWA planned for the heroin and methamphetamine to be distributed in the New York market, and he understood the weapons to have been manufactured in the United States and taken from U.S. military bases in Afghanistan.  In or about February 2021, EBISAWA traveled to Denmark to inspect some of the purported weapons, including anti-tank rocket weapons, machine guns, and automatic rifles.

Third, EBISAWA conspired to sell, in a separate transaction, approximately 500 kilograms of methamphetamine and 500 kilograms of heroin to UC-1 for distribution in New York.  In furtherance of that transaction, in or about June 2021 and September 2021, one of EBISAWA’s co-conspirators provided samples in Thailand of approximately one kilogram of methamphetamine and approximately 1.4 kilograms of heroin.  The methamphetamine had a purity of approximately 98%, and the heroin had a purity of approximately 86% to 87%.

Finally, EBISAWA laundered $100,000, which UC-1 described to EBISAWA as narcotics proceeds, from the United States to Japan, in exchange for a 15% commission.  In or about November 2021, the DEA transferred $100,000 to U.S. bank accounts controlled by one of EBISAWA’s co-conspirators, and EBISAWA then delivered the Yen equivalent of approximately $85,000 in cash in Tokyo.

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In addition to the prison term, EBISAWA, 61, was sentenced to five years of supervised release.

Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit and the Internal Revenue Service – Criminal Investigation.  Mr. Clayton also thanked the DEA Tokyo Country Office, DEA Bangkok Country Office, DEA Chiang Mai Resident Office, DEA Jakarta Country Office, DEA Copenhagen Country Office, DEA New York Field Office, DEA New Delhi Country Office, the Counterterrorism Section of the Department of Justice’s National Security Division, the Office of International Affairs of the Department of Justice’s Criminal Division, and our law enforcement partners in Denmark, Indonesia, Japan, and the Kingdom of Thailand for their assistance.

The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky, Alexander Li, and Kevin T. Sullivan are in charge of the prosecution, with assistance from the Counterterrorism Section.

Today, Takeshi Ebisawa, a Japanese national, was sentenced to 20 years in prison for his participation in a conspiracy to traffic nuclear materials, including uranium and weapons-grade plutonium, from Burma to other countries, as well as his participation in international narcotics trafficking, weapons, and money laundering crimes. Ebisawa previously pleaded guilty to six counts for those offenses before U.S. District Judge Colleen McMahon for the Southern District of New York.

“National security and public safety are the very tenets of DEA’s mission, and this case demonstrates our ability to dismantle the world’s most dangerous criminal networks,” said Administrator Terrance Cole of the U.S. Drug Enforcement Administration. “Today’s sentence should send a clear message: threatening the United States by trafficking nuclear materials, narcotics, and military-grade weapons will trigger an uncompromising response. DEA will hold conspirators accountable—no matter the distance, no matter their allegiance.”

“Thanks to the exceptional work of the DEA and our DOJ prosecutors, Takeshi Ebisawa has been held accountable for his crimes, including an attempt to sell weapons-grade plutonium to Iran and to flood New York with deadly narcotics,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division will continue to work with our law enforcement partners to identify and dismantle criminal networks that seek to profit from the illicit trade in deadly weapons and substances.”

“The illicit trafficking of nuclear materials is an existential threat to every New Yorker and every American,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Takeshi Ebisawa tried to sell uranium, thorium, and plutonium to fuel a purported nuclear weapons program, along with deadly drugs destined for U.S. streets. In exchange, Ebisawa hoped to procure battlefield weapons for insurgent groups and profit for himself. This case is a testament to the extraordinary efforts of our law enforcement partners, who worked across three continents to stop Ebisawa and bring him to justice in the United States.”

As reflected in the Complaint, the Superseding Indictment, and other filings and information in the public record:

From in or about 2019 until Ebisawa's arrest on or about April 4, 2022, the DEA investigated Ebisawa in connection with the large-scale trafficking of narcotics, weapons, and nuclear materials. During the investigation, Ebisawa unwittingly introduced an undercover DEA agent (“UC-1”), posing as a narcotics and weapons trafficker, to Ebisawa's international network of criminal associates, which spanned Japan, Thailand, Burma, Sri Lanka, and the United States, among other places, for the purpose of arranging criminal transactions. Over the course of three years, Ebisawa and his associates negotiated four sets of transactions with UC-1.

First, Ebisawa attempted to broker the sale of nuclear materials in exchange for military-grade weapons, including surface-to-air missiles, for an ethnic insurgent group in Burma. Ebisawa intended to sell this nuclear material to UC-1’s associate, who was posing as an Iranian general in charge of Iran’s nuclear weapons program (the “General”). After initially offering uranium, Ebisawa proposed to supply the General with “plutonium” that would be even “better” and more “powerful” than uranium for Iran’s use. In or about February 2022, Ebisawa and two co-conspirators met with UC-1 in Thailand, where one of the co-conspirators showed UC-1 samples of the nuclear materials (the “Nuclear Samples”). With the assistance of Thai authorities, the Nuclear Samples were seized and subsequently transferred to the custody of U.S. law enforcement. A U.S. nuclear forensic laboratory examined the Nuclear Samples and determined they contained detectable quantities of uranium, thorium, and weapons-grade plutonium.

Second, Ebisawa attempted to broker the sale of methamphetamine and heroin to UC-1 in exchange for heavy weapons for another ethnic insurgent group in Burma. Ebisawa planned for the heroin and methamphetamine to be distributed in the New York market, and he understood the weapons to have been manufactured in the United States and taken from U.S. military bases in Afghanistan. In or about February 2021, Ebisawa traveled to Denmark to inspect some of the purported weapons, including anti-tank rocket weapons, machine guns, and automatic rifles.

Third, Ebisawa conspired to sell, in a separate transaction, approximately 500 kilograms of methamphetamine and 500 kilograms of heroin to UC-1 for distribution in New York. In furtherance of that transaction, in or about June 2021 and September 2021, one of Ebisawa's co-conspirators provided samples in Thailand of approximately one kilogram of methamphetamine and approximately 1.4 kilograms of heroin. The methamphetamine had a purity of approximately 98%, and the heroin had a purity of approximately 86% to 87%.

Finally, Ebisawa laundered $100,000, which UC-1 described to Ebisawa as narcotics proceeds, from the United States to Japan, in exchange for a 15% commission.  In or about November 2021, the DEA transferred $100,000 to U.S. bank accounts controlled by one of Ebisawa's co-conspirators, and Ebisawa then delivered the Yen equivalent of approximately $85,000 in cash in Tokyo.

In addition to the prison term, Ebisawa, 61, was sentenced to five years of supervised release.

The investigation was led by the DEA’s Special Operations Division Bilateral Investigations Unit and the IRS Criminal Investigation. The DEA Tokyo Country Office, DEA Bangkok Country Office, DEA Chiang Mai Resident Office, DEA Jakarta Country Office, DEA Copenhagen Country Office, DEA New York Field Office, DEA New Delhi Country Office, the Counterterrorism Section of the Department of Justice’s National Security Division, the Office of International Affairs of the Department of Justice’s Criminal Division, and law enforcement partners in Denmark, Indonesia, Japan, and the Kingdom of Thailand provided assistance.

Assistant U.S. Attorneys Kaylan E. Lasky, Alexander Li, and Kevin T. Sullivan for the Southern District of New York's National Security and International Narcotics Unit are in charge of the prosecution, with assistance from the National Security Division's Counterterrorism Section.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced that PHILIP CASTRACUCCO pled guilty today to filing false U.S. Individual Income Tax Returns before U.S. District Judge Jessica G. L. Clarke in White Plains federal court.

“As he admitted today in court, Philip Castracucco filed false tax returns that underreported income from his business,” said U.S. Attorney Jay Clayton.  “Castracucco attempted to avoid paying his full obligation back to the government, one we all collectively share for essential services and infrastructure.  He has now pled guilty to a federal crime and faces time in prison.  Cheating on your taxes is stealing from your fellow New Yorkers.” 

“Philip Castracucco concealed income from the IRS and evaded the payment of taxes, contributing to our nation’s tax gap in the process.  With today’s guilty plea, he is being held accountable.  This outcome demonstrates the strength of our investigative efforts and our commitment to safeguarding the public from financial misconduct.  He now faces the consequences of choosing fraud over compliance,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr. 

According to the Information, public court proceedings and filings, as well as CASTRACUCCO’s admissions during his plea allocation:

CASTRACUCCO was the owner of a contracting business (“Company-1”) that performed construction work, primarily for masonry projects in the vicinity of Westchester County, New York. From 2017 through 2022, CASTRACUCCO caused Company-1 business receipt checks in a total amount of more than $3.5 million to be cashed through a check cashing business and converted to cash, rather than deposited into Company-1’s business bank account. CASTRACUCCO used this cash to pay salaries and wages to himself and his employees; for other items purchased for his own benefit; and for materials used by Company-1.

From 2018 through 2023, CASTRACUCCO filed with the Internal Revenue Service (“IRS”) U.S. Income Tax Returns for an S Corporation, IRS Forms 1120-S, for Company-1 that omitted its gross receipts from the aforementioned checks and more than $1 million of salaries and wages paid by Company-1 to CASTRACUCCO and others. CASTRACUCCO also caused to be filed with the IRS Forms 941, Employer’s Quarterly Federal Tax Returns, for Company-1 that omitted these salaries and wages.

From 2020 through 2023, CASTRACUCCO filed and caused to be filed with the IRS personal U.S. Individual Income Tax Returns, IRS Forms 1040, that omitted more than $900,000 of business income CASTRACUCCO received from Company-1.

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CASTRACUCCO, 63, of Tuckahoe, New York, pled guilty to one count of making and subscribing to false U.S. Individual Income Tax Returns, which carries a maximum sentence of three years in prison.  CASTRACUCCO has agreed to pay restitution to the IRS, representing the additional tax due and owing as a result of his conduct, in an amount no less than $359,646.57.  Sentencing before Judge Clarke is scheduled for September 9, 2026.

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

Mr. Clayton praised the outstanding investigative work of IRS-CI in this case.

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

Jay Clayton, the United States Attorney for the Southern District of New York, Roman Rozhavsky, Assistant Director of the FBI’s Counterintelligence & Espionage Division, and James C. Barnacle, Jr., the Assistant Director in Charge of the New York Field Office of the FBI, announced today that DENIS ALIMOV, a/k/a “Denis Nazarovich Alimov,” a/k/a “Denis N Alimov,” a/k/a “Denis Nevsky,” a/k/a “Dionis Nevsky,” a/k/a “Denis Klimenkov,” a/k/a “Denis Nazarovich Klimenkov,” was arrested on February 24, 2026 in Bogotá, Colombia, based on an Interpol Red Notice related to charges filed in Superseding Indictment S2 25 Cr. 122 (JPC) in the Southern District of New York. The Superseding Indictment charges ALIMOV with participating in an alleged plot to murder or kidnap two well-known dissidents abroad, as well as related terrorism offenses. U.S. authorities plan to seek the extradition of ALIMOV from Colombia. The case is assigned to U.S. District Judge John P. Cronan.

“As alleged, Denis Alimov and his co-conspirators tried to murder or kidnap two well-known dissidents, with Alimov offering a co-conspirator $1.5 million for each victim,” said U.S. Attorney Jay Clayton. “This chilling attempt shows not only the lengths malign actors will go to silence critics, but also, the resolve, expertise, and ability of American law enforcement and our partners abroad to disrupt those plots and bring those responsible to justice.”

“Alimov has been arrested for his alleged involvement in a plot to locate, kidnap, and murder political dissidents who dared to speak out against their authoritarian regime,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence & Espionage Division. “Transnational repression poses a serious and growing threat to individual rights and freedoms, and the FBI is committed to investigating all plots involving U.S.-based criminal actors or victims. Today’s announcement makes clear that combating this threat is among our highest priorities, and we will work with our partners at home and abroad to find and hold accountable those who use threats and violence to silence dissent.”

“Denis Alimov allegedly plotted with others to kidnap or murder two foreign dissidents and offered a co-conspirator a bounty for his help carrying out that plot,” said FBI Assistant Director in Charge James C. Barnacle. “The FBI will continue to prevent hired guns from prowling the globe to carry out the nefarious agenda of others, no matter where they are.”

As alleged in the Superseding Indictment unsealed today and Indictment 25 Cr. 122 (JPC):[1]

An investigation by the FBI revealed that from at least in or about October 2024 through in or about March 2025, ALIMOV orchestrated a plot, with others, to kidnap or murder two well-known dissidents residing abroad (collectively, the “Targets”) from a republic in a particular foreign country. The Targets have previously been the subject of multiple reprisal and assassination attempts. In furtherance of the plot, in or about October 2024, ALIMOV met with an alleged co-conspirator, Darko Durovic,[2] at a restaurant near the headquarters of a particular foreign country’s internal security and counterintelligence service. During that meeting, ALIMOV paid Durovic approximately $60,000 to finance the plot. ALIMOV also agreed to pay Durovic approximately $1.5 million in exchange for murdering or kidnapping each of the Targets.

Following their meeting in or about October 2024, ALIMOV repeatedly communicated with Durovic regarding the planning and status of the plot, including providing Durovic with IP address and phone number information for one of the Targets. Durovic, among other things, researched Glock handguns while planning travel to a European country to find one of the Targets; traveled to a second European country to locate another of the Targets; and recruited another co-conspirator to participate in the plot, who discussed with Durovic the need to “finance a hunting team” to find the Targets.

*        *        *

ALIMOV, 42, is charged with one count of conspiracy to commit murder and kidnapping in a foreign country, which carries a maximum sentence of life in prison; one count of conspiracy to provide material support to terrorists, which carries a maximum sentence of 15 years in prison; one count of provision and attempted provision of material support to terrorists, which carries a maximum sentence of 15 years in prison; one count of conspiracy to finance terrorism, which carries a maximum sentence of 20 years in prison; and one count of financing of terrorism, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding efforts of the FBI New York Counterintelligence Office, the FBI Counterintelligence and Espionage Division, and the FBI International Operations Division. Mr. Clayton also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the Office of International Affairs of the Department of Justice’s Criminal Division, the Judicial Attaché Office in Bogotá, our partners at the United States Embassy to Colombia, and our law enforcement partners in Colombia, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley and Kaylan E. Lasky are in charge of the prosecution, with assistance from Trial Attorney Michael Dittoe of the Counterterrorism Section.

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

[2] Durovic was subsequently arrested in or about March 2025, and his case is pending before Judge Cronan.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSHUA SCHUSTER pled guilty before U.S. District Judge Valerie E. Caproni to securities fraud for his role in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER is scheduled to be sentenced on July 9, 2026.   

“Joshua Schuster promised to use investor funds to develop real estate projects throughout our City,” said U.S. Attorney Jay Clayton. “Schuster instead constructed a fraud, stealing more than $13 million from his investors in order to fund his lifestyle and pay off earlier investors in a Ponzi-like fashion. Fraud in the Real Estate market costs all New Yorkers, including through higher rents and home prices. This Office will continue to work with our law enforcement partners to protect investors in this market—and all markets—from fraudsters who line their own pockets at the expense of New Yorkers.”

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

Over a five year period, JOSHUA SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific New York-based projects. Instead, SCHUSTER misappropriated in excess of $13 million dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll.

*               *                *

SCHUSTER, 42, of Boca Raton, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against SCHUSTER, for its assistance and cooperation in the investigation.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.

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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 that Ukrainian national YURII NAZARENKO, a/k/a “Yuriy Nazarenko,” a/k/a “Uriel Septimberus,” a/k/a “Tor Ford,” a/k/a “John Wick,” has been charged and pled guilty for his role in operating the website “OnlyFake,” which sold fake photos of identification documents such as passports and driver’s licenses (“Digital Fake IDs”).  NAZARENKO pled guilty today to conspiracy to commit fraud in connection with identification documents, authentication features, and information before U.S. District Judge Margaret M. Garnett.

“We rely on government issued IDs to combat terrorism, hijackings, fraud, money laundering, and a host of other crimes,” said U.S. Attorney Jay Clayton.  “OnlyFake’s manufacture of fraudulent IDs and other documents puts us all at risk and must be stopped.”

“Yurii Nazarenko developed a website to produce more than 10,000 fake identification documents, earning hundreds of thousands of dollars from these illicit sales.  This platform offered its clients a myriad of criminal opportunities, including bypassing traditional regulations to launder money.  The FBI will not tolerate any individual who exploits technology to allow others to conceal their true identity for potentially nefarious purposes,” said FBI Assistant Director in Charge James C. Barnacle, Jr.

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

OnlyFake offered its customers the ability to generate various types of Digital Fake IDs.  For example, OnlyFake allowed its customers to generate fake U.S. identification documents, including digital versions of driver’s licenses for each of the fifty states, United States passports, United States passport cards, and Social Security cards.  OnlyFake also offered customers the ability to generate fake digital versions of identification documents of various other countries, including passports for approximately 56 countries other than the United States.

OnlyFake customers could customize the type of Digital Fake ID they wanted, including whether the Digital Fake ID should appear to be a scan of a real identification document, or appear to be a photograph of a real identification document taken on a surface like a table.  Photos of the menu to generate a Digital Fake ID and of a fake United States passport generated through OnlyFake are below:

Customers paid OnlyFake for Digital Fake IDs in cryptocurrency.  OnlyFake offered discounts for bulk purchases of Digital Fake IDs and offered packages of as many as 1,000 Digital Fake IDs at once. NAZARENKO operated and controlled OnlyFake.  From approximately 2021, up to and including 2024, OnlyFake received at least approximately hundreds of thousands of dollars from customers purchasing Digital Fake IDs, and OnlyFake was used to generate at least approximately 10,000 Digital Fake IDs.

Banks and cryptocurrency exchanges generally require individuals seeking to open accounts to provide some type of government-issued identification document to prove their real identity (called Know Your Customer, or “KYC” programs) in order to prevent money laundering.  Many of those financial institutions allow individuals to submit scans or photographs of their government-issued identification documents to establish their identity.  The Digital Fake IDs sold by OnlyFake allowed individuals to circumvent KYC programs and to launder money by concealing their real identities.

*               *                *

NAZARENKO, 27, of Ukraine, pled guilty to one count of conspiring to commit fraud in connection with identification documents, authentication features, and information, which carries a maximum sentence of 15 years in prison.  NAZARENKO also agreed to forfeit $1,200,000, representing the proceeds of OnlyFake’s activity.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  NAZARENKO is scheduled to be sentenced by Judge Garnett on June 26, 2026.

Mr. Clayton praised the outstanding work of the FBI.  He also thanked Romanian authorities and the U.S. Department of Justice’s Office of International Affairs for their assistance in securing Nazarenko's September 2025 extradition from Romania. 

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today the settlement of a civil rights lawsuit against the NEW YORK CITY DEPARTMENT OF PARKS & RECREATION (“PARKS”) and the HISTORIC HOUSE TRUST (“HHT”).  The settlement resolves violations of the Americans with Disabilities Act (“ADA”) at the Van Cortlandt House Museum in Van Cortlandt Park, in the Bronx, New York. 

“The ADA applies to all places of public accommodation, even those that predate our Declaration of Independence,” said U.S. Attorney Jay Clayton.  “The settlement approved today will expand access at the Van Cortlandt House Museum so more visitors, including people with disabilities, can experience this important piece of New York City history.”

According to the Complaint filed in Manhattan federal court, the Agreement entered by the court, and information from the Van Cortlandt House Museum:

The Van Cortlandt House was built in 1748 as the residence of the Van Cortlandt family.  During the Revolutionary War, General George Washington stayed at the House in 1776 and 1783.  At the end of the nineteenth century, the Van Cortlandt family sold the property to the City of New York.  The City has operated the property as a museum since 1897, in coordination with the HHT.  A Cottage was added to the property in 1910 that now serves as a welcome center and gift shop.  The Van Cortlandt House Museum aspires to recreate the furnishings and decoration of the home from 1749 to 1823.

The settlement, in the form of a court-approved stipulation and order (the “Agreement”), was entered today by U.S. District Judge J. Paul Oetken and requires PARKS, among other things, to embark on a long-term capital project that seeks to provide barrier-free access to the basement and the first floor of the House.  In the near term, the Agreement obliges PARKS to remove barriers to accessibility at the Cottage, many of which have already been removed.  After the United States issued its findings letter to PARKS regarding the violations of the ADA, PARKS installed a wooden ramp that for the first time provided access to the Cottage.  The Agreement obliges PARKS to maintain this ramp pending completion of the broader capital project.  While providing physical access to the second and third floors of the House is not readily achievable due to architectural constraints, the ADA requires places of public accommodation to explore other methods of accessibility.  As a result, the Agreement requires PARKS to offer iPads or similar electronic devices at the Cottage that provide a virtual 360-degree tour of the entirety of the House.

Mr. Clayton thanked the Disability Rights Section of the Department of Justice, and particularly its architectural staff, for their assistance in this matter.

Since President George H.W. Bush signed the ADA into law in 1990, the U.S. Attorney’s Office for the Southern District of New York has played a significant role in bringing numerous New York City institutions into compliance with the ADA and its regulations.  The Office’s enforcement efforts include, among many others, Yankee Stadium, Madison Square Garden, Radio City Music Hall, the Shubert Theaters, the Nederlander Theaters, the Jujamcyn Theaters, Avery Fisher Hall at Lincoln Center, the Metropolitan Opera, the Apollo Theater, the Rainbow Room, The Vessel at Hudson Yards, and dozens of hotels and restaurants.

To file a complaint alleging that any place of public accommodation within the Southern District of New York is not accessible to persons with disabilities, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website, https://www.justice.gov/usao-sdny/civil-rights.  Complaints should be emailed or sent by mail 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

[email protected]

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

U.S. Attorney for the Southern District of New York, Jay Clayton, announced today the Office’s new Corporate Enforcement and Voluntary Self-Disclosure Program for illegal activity involving fraud and financial misconduct affecting market integrity. The program, building on years of experience with corporate self-reporting, a focus on individual accountability, and a commitment to the interests of victims, is designed to protect investors, root out wrongdoing more quickly, and strengthen the integrity of the financial markets by encouraging companies to promptly disclose misconduct and take swift remedial measures.

The program establishes clear guidelines and predictable treatment for companies that voluntarily disclose certain classes of criminal activity to this Office. Under this program, eligible companies that self-report qualifying illegal activity, fully cooperate with law enforcement, commit to ongoing reporting of criminal conduct for three years, and remediate harm caused by the misconduct will have a clear, agreed path to a declination. Specifically, the Office will extend a conditional declination letter to qualifying companies shortly after they make a qualifying self-report. After a company satisfies its cooperation and remediation obligations and restitutes victim losses, the Office will provide a final declination letter, concluding the matter without criminal charges.

“The self-reporting program rests on a simple principle: prompt corporate disclosure and cooperation in rooting out and remedying wrongdoing is in the best interest of victims, shareholders, employees, and our markets generally,” said U.S. Attorney Jay Clayton. “When companies do the right thing—report quickly, cooperate fully, and remediate harm—they should know where they stand. With this program, we expect there will be strong alignment among corporate fiduciary duties, corporate cooperation with the Department of Justice, and the interests of victims, shareholders, and the public generally. To be sure, companies that choose not to cooperate proactively and are found to have engaged in criminal conduct, will face significant corporate consequences.”

The program builds on the Office’s longstanding practice of favorably weighing voluntary disclosures and sincere cooperation in its charging decisions. Consistent with this new program, the Office already has extended a conditional declination letter to a self-reporting company within a month of that company making a disclosure. These types of self-reports also enable the Office to focus on holding individuals accountable. During U.S. Attorney Clayton’s tenure, the Office has brought criminal charges against individual executives and employees based on information originally obtained through corporate self-disclosures and will continue to do so. These actions demonstrate that early disclosure and cooperation under this program will help this Office hold accountable individual wrongdoers, while also offering swift resolution and certainty to self-reporting entities that commit to remediation and cooperation.

Additional details about the SDNY Corporate Enforcement and Voluntary Self-Disclosure Program for Financial Crimes, including information about eligibility criteria and a model conditional declination letter, are available on the U.S. Attorney’s Office website. Please visit https://www.justice.gov/usao-sdny/self-reporting-program.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that KYLE WHITE was sentenced to 20 years in prison for advertising and distributing child pornography on his online marketplace he called “The Ho Zone.”  On October 21, 2025, WHITE pled guilty before U.S. District Judge Colleen McMahon, who imposed today’s sentence.

“Kyle White’s operation of the large-scale online pornography marketplace he callously dubbed ‘The Ho Zone’ caused immeasurable harm to his over one thousand child and adult victims whose sexual abuse materials he distributed to thousands of paying customers,” said U.S. Attorney Jay Clayton.  “White’s high-volume, illegal pornography enterprise earned him a staggering profit at the expense of innocent children and young women whose sexual trauma he broadcast to the world.  There is a clear message from today's 20-year sentence:  anyone who seeks to profit from the sexual exploitation of children will face justice for their heinous crimes.  Every New York family wants Kyle White's 'Ho Zone' operation shut down and Mr. White off the streets.”

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

WHITE ran an online pornography marketplace known as “The Ho Zone” on the messaging application Telegram, earning a profit of over $387,000.  WHITE categorized the pornography he advertised and sold on “The Ho Zone” into dozens of groups and channels with thousands of members and subscribers, such as “Other Teen (18+) Leaks,” “THZ Black Market,” “MOST POPULAR GIRLS LISTS,” “Tiktoker Private Leaks,” “ATHLEAKS,” and more.  Within each of these groups and channels, WHITE further categorized the pornography by the name of the woman or minor girl featured in the sexually explicit content.  Each group and channel on “The Ho Zone” featured a variety of free content as a preview of what users could get if they were to pay WHITE for full access. Such access cost between $15 and $75 depending on the pornography purchased.  Once a user paid WHITE for the content of a specific woman or minor girl available on “The Ho Zone,” the user gained permanent access to numerous sexually explicit photographs and videos of that woman or minor girl that WHITE had compiled, enhanced, and edited.

WHITE advertised and sold child pornography on “The Ho Zone,” which depicted minor victims as young as 11 years old, as well as minor victims engaging in sexually explicit conduct with their minor victim siblings.  WHITE also sold illegally obtained adult pornography on “The Ho Zone,” including pornography that had been hacked from women’s cellphones and pornography that was the product of blackmail and extortion.  Most of the women featured were between 18 and 23 years old.  In total, WHITE advertised and distributed illegal pornography of over one thousand adult and minor victims.

WHITE knew that running “The Ho Zone” was illegal but he continued to sell child pornography and illegally obtained adult pornography on the marketplace because it was lucrative. For example, WHITE claimed in a message to another Telegram user that he “made over 300k in the first year” of operating “The Ho Zone.”[1] WHITE also stated that he did not want to stop selling child pornography because “[i]t’s just easier said than done givin up $1,000’s,” and WHITE was “sure the feds got more important things to worry abt [sic] lol.”

After the FBI searched WHITE’s home and seized his electronic devices, WHITE engaged in obstruction of justice.  Although WHITE pretended to assist the FBI in shutting down “The Ho Zone,” in reality, WHITE continued running “The Ho Zone” on a backup account from a new cellphone.

Victims of WHITE and “The Ho Zone” are encouraged to visit https://forms.fbi.gov/victims/THZVictims to learn about available resources that may assist them.

*               *                *

In addition to the prison term, WHITE, 27, of Louisville, Kentucky, was sentenced to 20 years of supervised release. 

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation, and in particular, the victim specialists with FBI’s New York Division.

This case is being supervised by the Office’s General Crimes Unit.  Assistant U.S. Attorney Chelsea L. Scism is in charge of the prosecution.
 

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that a jury found RAMON RODRIGUEZ, a/k/a “Pollo,” guilty today of murder in aid of racketeering, attempted murder in aid of racketeering, firearms offenses, and racketeering conspiracy.  The convictions relate to RODRIGUEZ’s participation in the “Shooting Boys” gang (a set of the Trinitarios), the June 21, 2021, murder of Milton Grant during a robbery in Manhattan, and the attempted murder of another victim during that same robbery.  RODRIGUEZ was convicted following a two-week jury trial before U.S. District Judge Jed S. Rakoff, who will impose sentence on June 30, 2026.

“For years, Ramon Rodriguez—along with members of the Shooting Boys—committed shootings, robberies, drug trafficking, fraud, and witness retaliation throughout New York City,” said U.S. Attorney Jay Clayton.  “Worst of all, Rodriguez murdered Milton Grant in cold blood during a robbery, senselessly killing him for his watch, and attempted to murder another innocent victim at the same time.  Gang violence poses a grave threat to our communities.  Thanks to our prosecutors and law enforcement partners, including the NYPD, whose detectives drove this murder case from the beginning, New York streets are safer tonight.”

According to the allegations in the Indictment, public court filings, and evidence presented at the jury trial:

From at least 2018 through 2025, RODRIGUEZ was a member of the Trinitarios and an associate of the Shooting Boys, a set of the Trinitarios.  The Shooting Boys, who operated primarily in the Bronx and Manhattan, engaged in murders, attempted murders, robberies, drug trafficking, fraud, and witness retaliation.

On June 13, 2021, RODRIGUEZ and members of the Shooting Boys committed a robbery outside a Bronx nightclub.  During the robbery, RODRIGUEZ shot a man in the leg, causing significant injuries.

Just eight days later, on June 21, 2021, RODRIGUEZ and members of the Shooting Boys committed another robbery outside a Manhattan nightclub.  During the robbery, RODRIGUEZ shot Milton Grant in the head, killing him, then stole Grant’s watch from his lifeless body.  As Grant’s friend ran away, RODRIGUEZ shot at him as well, attempting to kill him.

After being arrested and detained at the Metropolitan Detention Center in Brooklyn, RODRIGUEZ continued to participate in the Shooting Boys gang, including by repeatedly possessing weapons.  On December 3, 2023, RODRIGUEZ and other members and associates of the Shooting Boys ambushed, stabbed, and slashed an inmate who was cooperating with law enforcement in order to retaliate against that potential witness and deter others from cooperating.

*              *             *

RODRIGUEZ, 21, of the Bronx, was convicted of one count of murder in aid of racketeering, which carries a maximum sentence of life in prison; one count of attempted murder and assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison; two counts of using, carrying, and possessing firearms—which were brandished and discharged—during and in relation to a crime of violence, each of which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other term of imprisonment imposed; and one count of racketeering conspiracy with a special sentencing factor, which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the New York City Police Department and Homeland Security Investigations and thanked the New York County District Attorney’s Office for its assistance.   

The case is being prosecuted by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Dominic A. Gentile and Jim Ligtenberg are in charge of the prosecution, with the assistance of Paralegal Specialists William Coleman and Sandy Alcantara.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that DEREK HASSELBRINK, a/k/a “Derek Spear,” was sentenced to 15 years in prison by U.S. District Judge Nelson S. Román for enticing a minor to engage in unlawful sexual activity.

“Sexual exploitation of children is a heinous crime,” said U.S. Attorney Jay Clayton.  “New Yorkers want sexual predators who target minors arrested promptly, prosecuted rigorously, and sentenced in line with horrific nature of their crimes.  Thanks to our prosecutors, Hasselbrink will not threaten our children for a long time.  If you suspect sexual exploitation, please reach out to our law enforcement partners.” 

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

From at least in or about April 2023 up to on or about July 2, 2023, HASSELBRINK, a convicted sex offender, engaged in sexually explicit message conversations with a 15-year-old girl (“Victim-1”), and traveled to meet Victim-1 near her home in Dutchess County, New York, to engage in sexual activity.

Any individuals with information concerning the sexual exploitation of children are asked to contact the Federal Bureau of Investigation at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.

*                *                *

In addition to the prison term, HASSELBRINK, 49, of Quincy, Illinois, was sentenced to 15 years of supervised release.  

Mr. Clayton praised the efforts of the FBI, the Dutchess County Sheriff’s Office, the Quincy, Illinois Police Department, the Adams County States Attorney’s Office, Carroll County Job and Family Services, the Office of the Attorney General of Kentucky, the Springfield, Illinois Field Office of the FBI, and the Canton, Ohio Resident Agency of the FBI in connection with this investigation.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kingdar Prussien is 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 today that NOMMA ZARUBINA, a Russian citizen, pled guilty to making false statements to the FBI relating to her relationship with the Federal Security Service of the Russian Federation (“FSB”), and to naturalization fraud for lying about her involvement in prostitution-related offenses.  ZARUBINA pled guilty today before Chief U.S. District Judge Laura Taylor Swain and is scheduled to be sentenced on June 11, 2026.

“While Nomma Zarubina was trying to cultivate relationships with American law enforcement, civil society organizations, and others, she was lying to the FBI about her ties to the Russian Federation,” said U.S. Attorney Jay Clayton.  “Today’s plea demonstrates our commitment to protecting the integrity of the naturalization process and reinforces that those who lie to federal authorities will incur serious consequences.”

“After years of lies, Nomma Zarubina finally confessed to her repeated denial to FBI special agents of her contacts and relationship with Russian intelligence services, as well as to her failure to disclose her involvement in an interstate prostitution network in an effort to secure U.S. citizenship,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Zarubina’s intentional concealment of her misconduct and her lies about her affiliation with Russian intelligence were an affront to law enforcement’s national security efforts.  The FBI continues to defend our homeland from those who seek to impede federal investigations and deceive U.S. authorities.”

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

The FSB is Russia’s principal security agency and is the successor agency to the Soviet Union’s Committee for State Security, otherwise known as the KGB.  The FSB is believed to engage in, among other things, intelligence gathering and other covert operations abroad, including in the United States.  The FSB and particular FSB officers have been sanctioned in the United States by both the U.S. Department of the Treasury and U.S. Department of State.

ZARUBINA began meeting with the FBI in or around October 2020 in connection with the FBI’s ongoing investigation into Elena Branson, a Russian national who had a close relationship with ZARUBINA and who was later charged in March 2022 for acting as an unregistered foreign agent.  During an April 2021 meeting with the FBI, ZARUBINA told interviewing agents, in substance and in part, that she had recently traveled to Russia but did not have any contact with Russian intelligence services.  Then, in September 2023, ZARUBINA told the FBI, in substance and in part, that she had been interviewed once by the FSB on her way back to Russia from the United States, but that she had not been interviewed by the FSB or Russian intelligence services on any other occasions.

ZARUBINA’s statements to the FBI in 2021 and 2023 about her contacts with Russian intelligence services, specifically the FSB, were false. Indeed, in June and July 2024, ZARUBINA admitted to the FBI that she had previously lied to federal law enforcement officers about her relationship with the FSB, stating, in substance and in part, that: in or around December 2020, while in Russia, ZARUBINA met with an officer whom she understood was from the FSB, agreed to help the FSB with “network marketing,” and was given the FSB code name “Alyssa”; between in or about December 2020 and in or about June 2022, ZARUBINA met with the FSB officer several times and communicated with the FSB officer on numerous occasions using encrypted messaging applications; and the FSB officer instructed ZARUBINA to share contact information of journalists in the United States, to attend the 2021 St. Petersburg International Economic Forum, and to look into a particular individual in the United States, which ZARUBINA agreed to do.

In addition, between at least 2018 and 2024, while residing in the United States, ZARUBINA participated in a scheme to transport women between New York and New Jersey to engage in prostitution at a massage parlor business in East Brunswick, New Jersey.  Notwithstanding her involvement in that conduct, in July 2022, ZARUBINA falsely stated in response to a question in her application for naturalization in the United States that she had never “procured anyone for prostitution.”

Finally, after being indicted and while on bail in the instant case, ZARUBINA sought to unlawfully influence a witness by sending numerous unsolicited and harassing messages to one of the FBI agents involved in her case.  ZARUBINA’s obstructive conduct continued for several months, including after being admonished by the Court to stop contacting the agent, and resulted in the revocation of her bail.

*               *                *

ZARUBINA, 35, of Brooklyn, New York, pled guilty to one count of making false statements to the FBI, which carries a maximum sentence of five years in prison, and one count of naturalization fraud, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI and the Counterintelligence Division of its New York Field Office, and also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for its assistance.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MICHAEL O’FLAHERTY pled guilty before U.S. District Judge Philip M. Halpern to making false statements to federal investigators about having disclosed to his former confidential informant turned fentanyl dealer that another law enforcement agency was actively and covertly investigating the drug dealer. 

“Michael O’Flaherty, a New York State Police narcotics investigator, exploited his position of public trust, betrayed the oath he swore to protect New Yorkers, and jeopardized the safety of fellow law enforcement officers,” said U.S. Attorney Jay Clayton.  “He did the unthinkable.  He tipped off a drug trafficker—responsible for distributing tens of thousands of fentanyl pills—to a covert narcotics investigation.  When questioned by federal investigators, O’Flaherty lied repeatedly to cover his tracks.  Today’s guilty plea demonstrates our Office’s continued commitment—and the commitment of our police departments—to rooting out the bad apples.”

According to the allegations in the Complaint, court records, and statements made in court:

In 2022, a state law enforcement agency and the U.S. Drug Enforcement Administration (“DEA”) conducted an investigation of fentanyl pill distribution linked to multiple overdose deaths in Dutchess County (the “Fentanyl Investigation”).  The Fentanyl Investigation identified a particular narcotics trafficker (“Individual-1”) and Individual-1’s network of runners as a prolific source of fentanyl pills in the county.  The Fentanyl Investigation also learned that Individual-1 had previously served as a confidential informant for the New York State Police (“NYSP”) and had been supervised by MICHAEL O’FLAHERTY, a police officer with the NYSP.  During conversations with members of the Fentanyl Investigation, O’FLAHERTY expressed a willingness to assist the Investigation. But unbeknownst to the Fentanyl Investigation and O’FLAHERTY’s own supervisors, O’FLAHERTY had maintained a personal relationship with Individual-1 both during and after Individual-1’s tenure as an informant.  O’FLAHERTY purported to assist the Fentanyl Investigation, but in fact O’FLAHERTY promptly told Individual-1 about the Fentanyl Investigation.  O’FLAHERTY also tried to dig for sensitive details about the Investigation, including the identity of the Investigation’s confidential source within Individual-1’s network.  At the same time, O’FLAHERTY attempted to prevent the Fentanyl Investigation from discovering the nature and extent of O’FLAHERTY’s interactions with Individual-1, including telephone calls, text messages, and one-on-one meetings that O’FLAHERTY had concealed from NYSP supervisors and colleagues. When federal investigators ultimately questioned O’FLAHERTY about the nature of his interactions with Individual-1, including O’FLAHERTY’s disclosure of the Fentanyl Investigation, O’FLAHERTY lied to federal investigators.     

*                *                *

O’FLAHERTY, 43, of Poughkeepsie, New York, pled guilty to one count of making false statements, 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.

Mr. Clayton praised the outstanding work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the valuable assistance of the DEA and the NYSP Professional Standards Bureau. 

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Qais Ghafary and Jeffrey C. Coffman are in charge of the prosecution. 

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 Superseding Indictment charging two gang members with witness tampering and witness retaliation: TYSHAWN PALMER, a/k/a “Ty Boogie,” a/k/a “pte_tm,” and HASSAN BROWN, a/k/a “Twin,” a/k/a “everythingsleezy.”  The charges relate to threats that PALMER and BROWN made to a witness during a racketeering and murder trial, United States v. Lamar Williams, which concluded last week with the jury returning a verdict of guilty on all counts.  Both PALMER and BROWN were arrested this morning.  The case is assigned to U.S. District Judge Loretta A. Preska, who also presided over the Williams trial.

“Threatening a witness and that witness’s family is an attack on our judicial system, the rule of law, and our society,” said U.S. Attorney Jay Clayton.  “As alleged, Tyshawn Palmer and Hassan Brown retaliated against a testifying witness in a federal murder trial.  In our federal courts, witness intimidation will not work—rather, it will be met with swift justice.”

“The alleged actions taken by the defendants to intimidate witnesses and their family members with violence are a deliberate attack on the integrity of our judicial system,” said NYPD Commissioner Jessica S. Tisch.  “We will not tolerate any attempt to influence the course of justice, and I thank the U.S. Attorney’s Office for their continued partnership on this case."

“As alleged, defendants Palmer and Brown attempted to undermine the rule of law and erode our justice system by witness tampering and retaliation,” said U.S. Marshal Ricky J. Patel.  “Their actions have been met with the profound reaction they face today after being charged and arrested by the United States Attorney’s Office for the Southern District of New York, the United States Marshals Service, and the NYPD.  The U.S. Marshals have been responsible for the protection of the federal judicial process since 1789, a responsibility taken very seriously to this day.  Ensuring the judicial process operates independently and free from harm or intimidation is paramount for law and order.  I commend the collective work of the Deputy U.S. Marshals who investigated and arrested these individuals along with our law enforcement partners in this case.”

As alleged in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]

Between February 2 and February 11, 2026, a jury in the U.S. District Court for the Southern District of New York sat for the federal criminal trial of United States v. Lamar Williams, 22 Cr. 600 (LAP) (S.D.N.Y.) (the “Trial”), in which Lamar Williams, a leader of the violent Mac Ballers gang in the Bronx, New York, was charged with participating in the Mac Ballers racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm.  On February 4 and February 5, 2026, a witness (the “Witness”) testified about the August 2013 murder that Williams committed, among other crimes.  Subsequently, the jury unanimously convicted Williams on all counts.

On or about February 4, 2026, PALMER and BROWN, who are Williams’s Mac Baller associates and have known both Williams and the Witness for years, learned that the Witness was testifying in the Trial.  During and after the Witness’s testimony, PALMER and BROWN, and other Mac Baller members and associates, used Instagram to post and repost threats designed to retaliate against the Witness for the Witness’s testimony, and to prevent or influence the Witness from providing further testimony or information to law enforcement.

In particular, PALMER and BROWN posted and reposted, among other things, the Instagram account name and photograph of the Witness; posts that repeatedly referred to the Witness as a “rat” and a “snitch”; and photographs of the Witness’s family members, including a photograph of the Witness and the Witness’s young child, in which the defendants threatened to “kill[ ]” the Witness’s child “at his school.”

*                *                *

PALMER, 32, of Hackensack, New Jersey, and BROWN, 34, of the Bronx, New York, are each charged with one count of witness tampering and one count of witness retaliation, each of which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the NYPD, the United States Marshals Service, the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York, and the Southern District of New York Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area. 

This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Ryan W. Allison, Katherine Wheelock, and Patrick R. Moroney are in charge of the prosecution.

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

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

[2] This image has been redacted, but the image as originally posted and reposted to Instagram included the unredacted faces of the Witness and the Witness’s young child.

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 the unsealing of an Indictment charging ANDREW WARNER, the former Chief Financial Officer of Mobileum, Inc., and KISHORE VANGIPURAM, the former Chief of Delivery of Mobileum, with conspiracy to commit securities fraud and wire fraud, securities fraud, and wire fraud.  The charges in the Indictment arise from an alleged scheme by WARNER and VANGIPURAM to inflate Mobileum’s key financial metrics in advance of the company’s 2022 sale to an investment firm at an enterprise value of $915 million.  Mobileum declared bankruptcy in 2024, after the fraud was uncovered.  WARNER surrendered in San Jose, California, on Friday and was presented before U.S. Magistrate Judge Susan van Keulen.  VANGIPURAM was arrested Friday at the San Francisco International Airport and will be presented today before U.S. Magistrate Judge Kandis A. Westmore.  The case has been assigned to U.S. District Judge J. Paul Oetken.

“As alleged, Andrew Warner and Kishore Vangipuram manipulated Mobileum’s financial metrics to sell the company at a higher price and, as a result, line their own pockets,” said U.S. Attorney Jay Clayton.  “The company’s investors, creditors, and employees deserved fair and complete financial information, not inflated numbers and schemes.  When C-Suite executives commit fraud, the women and men of our Office, together with our law enforcement partners, will hold them accountable.  That is what investors and the American people want.”

“Andrew Warner and Kishore Vangipuram allegedly exaggerated their company’s fiscal success through doctored billable hours and invoices to defraud an unsuspecting investment firm of nearly one billion dollars,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “These two executives allegedly exploited their respective CFO and CDO positions to betray the trust of an interested buyer out of selfish greed.  The FBI continues to protect the integrity of corporate transactions from fraudsters seeking to profit from deceitful practices.”

As alleged in the Indictment unsealed on Friday in Manhattan federal court:

WARNER and VANGIPURAM were the Chief Financial Officer and Chief Delivery Officer, respectively, of Mobileum, a Silicon Valley-based company that provided data analytics and network solutions to telecommunications firms around the world.

Beginning in or about September 2021, WARNER and VANGIPURAM schemed to deceive an investment firm into overpaying for Mobileum as part of a private equity transaction.  To inflate Mobileum’s apparent value, and to convey the illusion of robust growth and operational efficiency, WARNER and VANGIPURAM falsified the company’s financial metrics, including revenue and unbilled revenue.  In or about March 2022, after receiving those artificial metrics, the investment firm acquired Mobileum at an inflated enterprise value of $915 million.  In connection with the sale, WARNER received approximately $5.2 million, and VANGIPURAM received approximately $5.5 million, in cash, stock, and other proceeds.

WARNER and VANGIPURAM’s scheme hinged on the fraudulent acceleration of revenue. Under Mobileum’s accounting method, the company purported to recognize revenue over the life of a project in proportion to the work performed.  Consequently, any inflation of hours worked, or reduction in estimated total effort, resulted in fraudulent recognition of revenue.  WARNER and VANGIPURAM manipulated the revenue recognized by directing employees to transfer hours from projects where the hours were non-billable to projects where the hours were billable, to create the false appearance that billable work had been performed.  They also directed employees to artificially reduce the “level of effort” for projects, effectively shrinking the total work required so that work already performed represented a higher percentage of the contract.  By making projects appear significantly closer to completion than was factually accurate, the defendants manufactured millions of dollars in imaginary revenue.

To cover up their fraudulent acceleration of revenue, WARNER and VANGIPURAM engaged in more fraud.  Their fraudulent revenue acceleration resulted in a substantial spike in “unbilled revenue”—income recognized on Mobileum’s books but not yet invoiced to customers.  Before the sale of Mobileum, when the potential buyer repeatedly inquired about Mobileum’s high unbilled revenue as a red flag indicating poor cash conversion, WARNER and VANGIPURAM directed employees to create fictitious invoices for billing milestones that Mobileum never reached.  To prevent discovery of the underlying fraud by Mobileum’s clients, WARNER instructed that those invoices be processed internally to satisfy the investment firm’s scrutiny but strictly withheld from the customers themselves.

Even after the sale of Mobileum to the investment firm, WARNER and VANGIPURAM continued their deceptive practices to prevent the investment firm from discovering the true state of Mobileum’s financial health.  After the sale, VANGIPURAM cautioned a subordinate not to send emails about their invoicing because it would land them in a “lot of trouble.”  The scheme unraveled in 2024 after the investment firm discovered the defendants’ fraud, Mobileum’s true financial condition was disclosed, and the company—which the defendants had represented as a nearly billion-dollar enterprise—filed for bankruptcy.

*                *               *

WARNER, 62, of Morgan Hill, California, and VANGIPURAM, 53, of Pleasanton, California, are charged with conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison; securities fraud, which carries a maximum sentence of 20 years in prison; and wire fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by 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 Peter J. Davis, Alexander Li, and Samuel P. Rothschild 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 today the unsealing of an Indictment charging TEDDY CACERES, a/k/a “Tito,” with distribution of narcotics resulting in death in connection with the April 13, 2025, fentanyl overdose death of a resident of Yorktown Heights, New York.  CACERES was also charged with drug and firearms offenses in connection with the search of his Bronx residence in January 2026, during which law enforcement found a significant quantity of fentanyl and a loaded firearm.  The case has been assigned to U.S. District Judge Lewis J. Liman.

“As alleged, Teddy Caceres sold fentanyl that tragically claimed a life,” said U.S. Attorney Jay Clayton.  “That did not deter him from dealing in death.  Nine months later, when law enforcement executed a search warrant at his residence, Caceres was once again allegedly in possession of fentanyl, as well as a loaded firearm.  New Yorkers want streets free from those who distribute deadly fentanyl, and together with the NYPD, the FBI, the DEA and our other law enforcement partners, the women and men of the SDNY will hold them accountable.”

“The FBI and our law enforcement partners will do everything in our power to decimate the drug trafficking industry and save American lives,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Teddy Caceres is an example of the problem; he allegedly continued to traffic fentanyl even after he contributed to the fatal overdose of an unsuspecting victim.  The FBI remains determined to investigate and charge those who threaten our community’s safety with narcotics and firearms.”

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

On or about April 13, 2025, the victim was found unconscious by members of her family at their residence in Yorktown Heights, New York.  The victim was transported to the hospital where she was pronounced dead.  At the family’s residence, law enforcement recovered several yellow glassines filled with fentanyl, consistent with the yellow glassines that video surveillance captured CACERES had sold to the victim the day before.

Approximately nine months later, on or about January 14, 2026, law enforcement executed a search warrant at CACERES’s apartment in the vicinity of Pelham Parkway South in the Bronx, New York, where they recovered a black .45 caliber Glock 21 with a magazine loaded with 18 .45 caliber live rounds, and 17 cartridges of 9mm ammunition, as well as two large blocks of fentanyl.

*                *               *

CACERES, 43, of the Bronx, New York, is charged with one count of distribution of narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; one count of possession with intent to distribute fentanyl, crack cocaine base, and methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of firearms use, carrying, and possession, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison; and one count of possession of a firearm after a felony conviction, which carries a maximum sentence of 15 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 outstanding investigative work of the FBI, New York City Police Department, and Yorktown Police Department.

This case is being handled by the Office’s Violent Organizations & Crime Unit. Assistant U.S. Attorney Jared Hoffman is in charge of the prosecution.

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

A 38-count superseding indictment (S4 indictment) was unsealed today charging 27 members of the Anti-Tren faction of the designated foreign terrorist organization Tren de Aragua (TDA or TdA) with offenses including racketeering conspiracy, murder in aid of racketeering in connection with an April 15, 2024, double murder in the Bronx, New York, murder-for-hire conspiracy, kidnapping in aid of racketeering, sex trafficking and sex trafficking conspiracy, and other offenses. Twenty-one of the 27 defendants charged in the S4 indictment were previously charged in a 12-count indictment. Of the six newly added defendants, five are now in federal custody.

To date, the U.S. Attorney’s Office for the Southern District of New York has charged approximately 38 members or associates of TDA and Anti-Tren.

“As alleged, these members of Anti-Tren, a splinter faction of the terrorist organization Tren de Aragua, planned and carried out a series of horrific crimes, including gunpoint robberies, murders, and the exploitation of vulnerable young women through sex trafficking,” said U.S. Attorney Jay Clayton for the Southern District of New York (SDNY). “Tren de Aragua is in the business of murder, sex trafficking, and intimidation, and they brought that business to New York while being unlawfully present in the United States. Today’s charges reflect our commitment to bankrupt TDA and bring its members to justice. The gang members charged today exerted ruthless control over sex trafficking victims through intimidation, brutality, and threats of violence against them and their loved ones — leaving lasting trauma in their wake. The women and men of the SDNY are unwavering in their commitment to bankrupt gangs that corrupt our neighborhoods, prey on the vulnerable, and pursue violence as a way of life.”

“Homeland Security Investigations New York continues to stand at the forefront of investigations against vicious criminal enterprises like Tren de Aragua and Anti-Tren,” said Acting Executive Associate Director John A. Condon for Homeland Security Investigations (HSI). “Through their use of ruthless tactics and blatant disregard for human life, TdA and its offshoots are among the fastest emerging transnational criminal organizations to encroach upon American soil. HSI New York, through the Homeland Security Task Force, continues to target these gangs that seek to perpetrate destruction and terror in our communities. Together, alongside our law enforcement partners, we are committed to ensuring that no corners of the TdA and Anti-Tren enterprises are beyond the reach of justice.”

“TdA and its faction Anti-Tren grew from a prison gang to a transnational criminal organization to a foreign terrorist organization. The violence and horrific acts as charged here including the double murder, murder for hire, kidnapping, and sex trafficking will be met with the full weight of our justice system,” said Co-Director Christopher Eason of Joint Task Force Vulcan (JTFV). “The charges against these TdA associates and Anti-Tren members are directly in line with JTFV’s mission: a collaborative, whole of government effort to destroy TdA and its factions. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate and bring these important charges.”

According to the allegations contained in the S4 indictment, Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TDA. Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere around the country, including in Illinois and Washington. The purposes of Anti-Tren included:

• Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TDA;
• Enriching the members and associates of Anti-Tren through, among other things:
  • The unlawful smuggling of individuals, including women and girls from Venezuela, into the United States,
  • The sex trafficking of young women or “multadas” who had been unlawfully smuggled into the United States,
  • The trafficking of controlled substances, including “tusi,” and
  • Armed robberies;
• Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence;
• Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates;
• Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained; and
• Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

Anti-Tren engaged in human smuggling and sex trafficking of young women or “multadas,” into the United States in exchange for debts that the young women would pay back by engaging in commercial sex work. Like TDA, members of Anti-Tren enforced compliance among these young women by, among other things:

• Threatening to kill the young women and their families,
• Assaulting the young women,
• Shooting or killing the young women, and
• Tracking down and kidnapping the young women who tried to flee.

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

The new charges in the S4 indictment allege, among other things, that:

• On or about April 15, 2024, Yender Mata, Ervin Hernandez, also known as “Coco” and “Coquito,” and Kerlyn Nataliy Perez-Lopez, also known as “Mou,” conspired to murder and caused the murders of Jhombeyker Jose Bisbal Pina and Adrian Mendoza Isturiz, who were shot to death in the Bronx.
• In or about April 2025, Guillermo Enrique Freites-Velazquez and Roiman Noe Bello Ferrer conspired to kill an individual in New York (Intended Victim-1).
• From in or about February 2025 until in or about March 2025, David Valencia-De La Rosa and Johan Carlos Mujica-Urpin, also known as “Sobrino,” conspired to kill another individual in New York (Intended Victim-2).
• In or about April 2025, Roiman Noe Bello Ferrer and others conspired to kill an individual in Florida (Intended Victim-3).
• On or about Oct. 5, 2024, Jesus David Barrios Garcia, also known as “Morocho,” ordered Kellen Jaspe Bustamanate to shoot an Anti-Tren member in the leg as a form of gang punishment. On or about the same day, Barrios Garcia also ordered Enrique Gustavo Boada Yanez, also known as “Chino,” to shoot a different Anti-Tren member in the leg, also as gang punishment.
• In or about January 2025, Keiswuel Orlando Palacios-Milano, also known as “Oturache” and “Inmortalidad,” Anderson Smith Zambrano-Pacheco, and Yeferson Prieto Galviz, also known as “Flacot” and “Flacote,” conspired to commit and did commit a gunpoint home invasion robbery of an individual (Robbery Victim-1) and Robbery Victim-1’s family in Yonkers.
• In or about January 2025, Keiswuel Orlando Palacios-Milano, also known as “Oturache” and “Inmortalidad,” Anderson Zambrano-Pacheco, Mario Pereda, also known as “Cara de Hombre,” Wilfredo Jose Avendaño Carrizalez, also known as “Kabuvy,” and Carlos Gabriel Santos Mogollon, conspired to commit a gunpoint robbery of a drug trafficker (Robbery Victim-2) in the Bronx.
• In or about 2024, Luis Jose Velasquez-Hurtado, also known as “Chito,” engaged in sex trafficking of a young woman from Venezuela (Trafficking Victim-1) whom Velasquez-Hurtado threatened with a gun, caused to be kidnapped, and whose immigration documents Velasquez-Hurtado caused to be seized.
• In or about 2024, Jesus David Barrios Garcia, also known as “Morocho,” Enrique Gustavo Boada Yanez, also known as “Chino,” Jesus Ruben Lopez Gonzalez, also known as “Lopez,” and Danger Leoner Sanchez Alfonzo, also known as “Danger,” engaged in sex trafficking of another young woman from Venezuela (Trafficking Victim-2).

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

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

U.S. Attorney Clayton praised the outstanding investigative work of HSI New York, Seattle, Chicago, and Portland, and the NYPD. He also thanked Joint Task Force Vulcan; the Arapahoe County District Attorney’s Office; the Aurora Police Department in Aurora, Colorado; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (USMS); the U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York and Chicago Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); U.S. Marshals Service-District of Oregon; U.S. Customs and Border Protection-New York; the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area; the Computer Crimes Unit at the NYPD; the King County, Washington Sheriff’s Office; and the Seattle Police Department.

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

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

This case is being handled by JTFV and Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, and Andrew K. Chan for the Southern District of New York are in charge of the prosecution.

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, announced that RAI THOMAS, a/k/a “Bandz,” was sentenced today to 160 months in prison for sex trafficking of a minor and use of interstate facilities to promote sex trafficking and prostitution.  In October 2025, THOMAS was convicted at trial before U.S. District Judge Nelson S. Román, who imposed today’s sentence. 

“Rai Thomas preyed on a child for profit, advertising her to strangers on the internet and selling her for sex again and again so he could enrich himself,” said U.S. Attorney Jay Clayton.  “New Yorkers want child sex traffickers off our streets, never to return.  Today’s lengthy prison sentence is indicative of this Office’s commitment to continuing to work tirelessly with our law enforcement partners to remove sex traffickers like Thomas from our streets and communities.”

According to the allegations in the Indictment and the evidence at trial:

Between January and February 2022, THOMAS trafficked Minor Victim-1 to engage in commercial sexual activity across multiple hotels within the Bronx and Brooklyn, New York.  Minor Victim-1 had been living in a children’s group home at the time that THOMAS trafficked her.  THOMAS facilitated and benefited from the scheme in numerous ways, including by enticing Minor Victim-1 to engage in commercial sex; coordinating the transportation of Minor Victim-1 to hotels; reserving the hotel rooms in which she engaged in commercial sex; facilitating the advertisement of Minor Victim-1 on the internet to customers for commercial sex; and profiting from the sex trafficking scheme.

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In addition to the prison term, THOMAS, 31, of Mount Vernon, New York, was sentenced to five years of supervised release. 

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation’s Hudson Valley Safe Streets Task Force, the Town of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and the New York City Police Department. 

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Qais Ghafary, Kaiya Arroyo, and Jorja Knauer represented the Government at trial, with the assistance of Paralegal Specialists Gabriela Salerno, Samantha Olsen, and Shannon Becker.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director of the Counterintelligence and Espionage Division of the Federal Bureau of Investigation (“FBI”), Roman Rozhavsky, Administrator of the Drug Enforcement Administration (“DEA”), Terrance C. Cole, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that NIKHIL GUPTA, a/k/a “Nick,” an Indian national, pled guilty to all three counts contained in the Second Superseding Indictment, charging him with murder-for-hire, conspiracy to commit murder-for-hire, and conspiracy to commit money laundering, in connection with his efforts to murder a U.S. citizen in New York City.  GUPTA pled guilty today before U.S. Magistrate Judge Sarah Netburn and is scheduled to be sentenced by U.S. District Judge Victor Marrero on May 29, 2026.

“Nikhil Gupta plotted to assassinate a U.S. citizen in New York City,” said U.S. Attorney Jay Clayton.  “He thought that from outside this country he could kill someone in it without consequence, simply for exercising their American right to free speech.  But he was wrong, and he will face justice.  Our message to all nefarious foreign actors should be clear: steer clear of the United States and our people.”

“Nikhil Gupta was a key participant in a murder-for-hire plot against a U.S. citizen, a murder that was prevented thanks to the actions of U.S. law enforcement,” said FBI Assistant Director Roman Rozhavsky.  “The U.S. citizen became a target of transnational repression solely for exercising their freedom of speech.  The message from the FBI should be clear—no matter where you are located if you try to harm our citizens we will not stop until you are brought to justice.”

“It is often a slippery and dangerous slope from drug trafficking to deadly violence, as demonstrated by the murder-for-hire plot orchestrated by international narcotics and weapons trafficker Nikhil Gupta,” said DEA Administrator Terrance Cole.  “This case is a stark reminder of the ruthless lengths criminals will go to in order to further their illegal enterprises.  I commend the men and women of DEA’s New York Task Force Division for their outstanding investigative work successfully foiling Gupta’s assassination plot.  Let there be no doubt: DEA remains steadfast in its mission to protect America.  We will continue to leverage our superior investigative expertise and unmatched intelligence capabilities to dismantle the drug trafficking networks that threaten our safety and well-being of our communities.”

“At the direction and coordination of an Indian government employee, Nikhil Gupta plotted to assassinate a United States citizen on American soil, facilitating a foreign adversary’s unlawful effort to silence a vocal critic of the Indian government,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI will continue to aggressively defend the homeland against any foreign adversaries who target our citizens for exercising their constitutionally protected rights.”

According to the allegations contained in the Second Superseding Indictment, other public court documents, and statements made in court:

In or about 2023, GUPTA worked together with others in India and elsewhere, including, as alleged in the Second Superseding Indictment, co-defendant VIKASH YADAV, who was at relevant times an Indian government employee, to plot the assassination of an attorney and political activist (the “Victim”) on U.S. soil.[1] The Victim, who is a U.S. citizen of Indian origin, is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India. The Victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the Victim and his separatist organization from India.

GUPTA is a citizen and was a resident of India, and he has described himself as an international narcotics and weapons trafficker in electronic communications with YADAV and others. YADAV was employed by the Government of India’s Cabinet Secretariat, which houses India’s foreign intelligence service, the Research and Analysis Wing.

In or about May 2023, YADAV recruited GUPTA to orchestrate the assassination of the Victim in the United States. At YADAV’s direction, GUPTA contacted an individual whom GUPTA believed to be a criminal associate, but who was in fact a confidential source working with the DEA (the “CS”), for assistance in contracting a hitman to murder the Victim in New York City.  The CS introduced GUPTA to a purported hitman, who was in fact a DEA undercover officer (the “UC”). YADAV subsequently agreed, in dealings brokered by GUPTA, to pay the UC $100,000 to murder the Victim. On or about June 9, 2023, YADAV and GUPTA arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder.

In or about June 2023, in furtherance of the assassination plot, YADAV provided GUPTA with personal information about the Victim, including the Victim’s home address in New York City, phone numbers associated with the Victim, and details about the Victim’s day-to-day conduct, which GUPTA then passed to the UC. GUPTA thereafter provided YADAV with regular updates on the assassination plot, including surveillance photographs of the Victim. GUPTA directed the UC to carry out the murder as soon as possible, but GUPTA also specifically instructed the UC not to commit the murder around the time of the Indian Prime Minister’s official state visit to the United States, which was scheduled to begin on or about June 20, 2023.

On or about June 18, 2023, approximately two days before the Indian Prime Minister’s state visit to the United States, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada. Nijjar was an associate of the Victim, and, like the Victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government.  On or about June 19, 2023, the day after the Nijjar murder, GUPTA told the UC that Nijjar “was also the target” and “we have so many targets.” GUPTA also added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the Victim.

On June 30, 2023, GUPTA was arrested in the Czech Republic and subsequently extradited to the United States.

*                *                *

GUPTA, 54 of India, pled guilty to murder-for-hire, which carries a maximum sentence of 10 years in prison, conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the DEA’s New York Drug Enforcement Task Force and the Counterintelligence Division of the FBI’s New York Field Office.  Mr. Clayton also thanked the DEA’s Special Operations Division, the DEA’s Vienna Country Office, the FBI’s Prague Country Office, the Department of Justice’s National Security Division, and the Czech Republic’s National Drug Headquarters for their assistance. The Justice Department’s Office of International Affairs worked with Czech authorities to secure the arrest and June 2024 extradition of Gupta.

This case is being handled by the Office’s National Security and International Narcotics Unit, Violent Organizations and Crime Unit, and Narcotics Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas, and Alexander Li are in charge of the prosecution, with assistance from the National Security Division’s Counterintelligence and Export Control Section and A.J. Dixon of the National Security Division’s Counterterrorism Section.

[1] YADAV has been charged in the Second Superseding Indictment but has not yet been arrested in connection with those charges.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Executive Associate Director of Homeland Security Investigations (“HSI”), John A. Condon, and Co-Director of Joint Task Force Vulcan (“JTFV”), Christopher Eason, announced a 38-count Superseding (“S4”) Indictment (the “S4 Indictment”) charging 27 members of the Anti-Tren faction of the designated foreign terrorist organization Tren de Aragua (“TDA”) with offenses including racketeering conspiracy, murder in aid of racketeering in connection with an April 15, 2024, double murder in the Bronx, murder-for-hire conspiracy, kidnapping in aid of racketeering, sex trafficking and sex trafficking conspiracy, and other offenses.  21 of the 27 defendants charged in the S4 Indictment were previously charged in a 12-count Indictment.  Of the six newly added defendants, five are now in federal custody.  The case is assigned to U.S. District Judge Mary Kay Vyskocil.

To date, the United States Attorney’s Office for the Southern District of New York has charged approximately 38 members or associates of TDA and Anti-Tren.

“As alleged, these members of Anti-Tren, a splinter faction of the terrorist organization Tren de Aragua, planned and carried out a series of horrific crimes, including gunpoint robberies, murders, and the exploitation of vulnerable young women through sex trafficking,” said U.S. Attorney Jay Clayton.  “Tren de Aragua is in the business of murder, sex trafficking, and intimidation, and they brought that business to New York while being unlawfully present in the United States.  Today’s charges reflect our commitment to bankrupt TDA and bring its members to justice.  The gang members charged today exerted ruthless control over sex trafficking victims through intimidation, brutality, and threats of violence against them and their loved ones—leaving lasting trauma in their wake.  The women and men of the SDNY are unwavering in their commitment to bankrupt gangs that corrupt our neighborhoods, prey on the vulnerable, and pursue violence as a way of life.”

“HSI New York continues to stand at the forefront of investigations against vicious criminal enterprises like Tren de Aragua and Anti-Tren,” said HSI Acting Executive Associate Director John A. Condon.  “Through their use of ruthless tactics and blatant disregard for human life, TdA and its offshoots are among the fastest emerging transnational criminal organizations to encroach upon American soil.  HSI New York, through the Homeland Security Task Force, continues to target these gangs that seek to perpetrate destruction and terror in our communities.  Together, alongside our law enforcement partners, we are committed to ensuring that no corners of the TdA and Anti-Tren enterprises are beyond the reach of justice.”

“TdA and its faction Anti-Tren grew from a prison gang to a transnational criminal organization to a foreign terrorist organization. The violence and horrific acts as charged here including the double murder, murder for hire, kidnapping, and sex trafficking will be met with the full weight of our justice system,” said JTFV Co-Director Christopher Eason. “The charges against these TdA associates and Anti-Tren members are directly in line with JTFV’s mission: a collaborative, whole of government effort to destroy TdA and its factions. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate and bring these important charges.”

According to the allegations contained in the S4 Indictment:[1]

Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TDA. Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere around the country, including in Illinois and Washington.  The purposes of Anti-Tren included:

• Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TDA.
• Enriching the members and associates of Anti-Tren through, among other things:
  • The unlawful smuggling of individuals, including women and girls from Venezuela, into the U.S.;
  • The sex trafficking of young women or “multadas” who had been unlawfully smuggled into the U.S.;
  • The trafficking of controlled substances, including “tusi”; and
  • Armed robberies.
• Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence.
• Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates.
• Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained.
• Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

Anti-Tren engaged in human smuggling and sex trafficking of young women or “multadas,” into the U.S. in exchange for debts that the young women would pay back by engaging in commercial sex work. And like TDA, members of Anti-Tren enforced compliance among these young women by, among other things:

• Threatening to kill the young women and their families,
• Assaulting the young women,
• Shooting or killing the young women, and
• Tracking down and kidnapping the young women who tried to flee.

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

The new charges in the S4 Indictment allege, among other things, that:

• On or about April 15, 2024, YENDER MATA, ERVIN HERNANDEZ, a/k/a “Coco,” a/k/a “Coquito,” and KERLYN NATALIY PEREZ-LOPEZ, a/k/a “Mou,” conspired to murder and caused the murders of Jhombeyker Jose Bisbal Pina and Adrian Mendoza Isturiz, who were shot to death in the Bronx.
• In or about April 2025, GUILLERMO ENRIQUE FREITES-VELAZQUEZ and ROIMAN NOE BELLO FERRER conspired to kill an individual in New York (“Intended Victim-1”).
• From in or about February 2025 until in or about March 2025, DAVID VALENCIA-DE LA ROSA and JOHAN CARLOS MUJICA-URPIN, a/k/a “Sobrino” conspired to kill another individual in New York (“Intended Victim-2”).
• In or about April 2025, ROIMAN NOE BELLO FERRER and others conspired to kill an individual in Florida (“Intended Victim-3”).
• On or about October 5, 2024, JESUS DAVID BARRIOS GARCIA, a/k/a “Morocho,” ordered KELLEN JASPE BUSTAMANATE to shoot an Anti-Tren member in the leg as a form of gang punishment.  On or about the same day, BARRIOS GARCIA also ordered ENRIQUE GUSTAVO BOADA YANEZ, a/k/a “Chino,” to shoot a different Anti-Tren member in the leg, also as gang punishment.
• In or about January 2025, KEISWUEL ORLANDO PALACIOS-MILANO, a/k/a “Oturache,” a/k/a “Inmortalidad,” ANDERSON SMITH ZAMBRANO-PACHECO, and YEFERSON PRIETO GALVIZ, a/k/a “Flacot,” a/k/a “Flacote,” conspired to commit and did commit a gunpoint home invasion robbery of an individual (“Robbery Victim-1”) and Robbery Victim-1’s family in Yonkers.
• In or about January 2025, KEISWUEL ORLANDO PALACIOS-MILANO, a/k/a “Oturache,” a/k/a “Inmortalidad,” ANDERSON ZAMBRANO-PACHECO, MARIO PEREDA, a/k/a “Cara de Hombre,” Wilfredo Jose AVENDAÑO CARRIZALEZ, a/k/a “Kabuvy,” and CARLOS GABRIEL SANTOS MOGOLLON, conspired to commit a gunpoint robbery of a drug trafficker (“Robbery Victim-2”) in the Bronx.
• In or about 2024, LUIS JOSE VELASQUEZ-HURTADO, a/k/a “Chito,” engaged in sex trafficking of a young woman from Venezuela (“Trafficking Victim-1”) whom VELASQUEZ-HURTADO threatened with a gun, caused to be kidnapped, and whose immigration documents VELASQUEZ-HURTADO caused to be seized.
• In or about 2024, JESUS DAVID BARRIOS GARCIA, a/k/a “Morocho,” ENRIQUE GUSTAVO BOADA YANEZ, a/k/a “Chino,” JESUS RUBEN LOPEZ GONZALEZ, a/k/a “Lopez,” and DANGER LEONER SANCHEZ ALFONZO, a/k/a “Danger,” engaged in sex trafficking of another young woman from Venezuela (“Trafficking Victim-2”).

*                *                *

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

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

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

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

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

This case is being handled by the Office’s Violent Organizations & Crime Unit and JTFV.  Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, and Andrew K. Chan are in charge of the prosecution.

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

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

1

Racketeering

conspiracy

18 U.S.C. § 1962(d)

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a “Mariguana,” 

     a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE,

     a/k/a “Mantequilla,”

JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN,

      a/k/a “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO,

GUILLERMO ENRIQUE FREITES-VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA,

     a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO,

     a/k/a “Cachorrito,”

ANDERSON JESUS DURAN BERROTERAN,

     a/k/a “Cachorro,”

ROIMAN NOE BELLO FERRER,

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA,

     a/k/a “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,

     a/k/a “Flaco T,” 

     a/k/a “Flacote,”

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON,

     a/k/a “Care de Peo”

2

Sex trafficking conspiracy

18 U.S.C. § 1594(c)

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,”

JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

ANDERSON JESUS DURAN BERROTERAN,       a/k/a “Cachorro,”

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA, 

     a/k/a  “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO, and

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito”

3

Alien importation and harboring for immoral purpose – conspiracy

18 U.S.C. § 371

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,” JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

ANDERSON JESUS DURAN BERROTERAN,       a/k/a “Cachorro,”

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA, 

     a/k/a  “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO, and

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito”

4

Drug trafficking conspiracy

21 U.S.C. §  846

REINALDO RAFAEL GONZALES-VALDEZ,

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,”

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO, 

     a/k/a  “Cachorrito,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,       a/k/a “Flaco T,” a/k/a “Flacote,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON, 

     a/k/a “Care de Peo”

5

Firearm use, carrying, and possession

18 U.S.C. §§ 924(c)(1)(A)(i) and 2

REINALDO RAFAEL GONZALES-VALDEZ,

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,”

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO, 

     a/k/a  “Cachorrito,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,       a/k/a “Flaco T,” a/k/a “Flacote,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON,

a/k/a “Care de Peo”

Life in prison

Mandatory minimum sentence of five years in prison

6

Obstruction of justice

18 U.S.C. §§ 1512(c) and 2

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

7

Unlicensed dealing of firearms

18 U.S.C. §§   922(a)(1)(A) and 2

8

Possession of a firearm and ammunition by a fugitive from justice and illegal alien

18 U.S.C. §§ 922(g)(2) and (5), and 2

9

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

JHONKENNEDY BRAVO-CASTRO,

           a/k/a “Negrito,”

10

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

11

Murder in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison or death

Mandatory minimum sentence of life in prison

12

Firearms use, carrying, and possession

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

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

13

Murder in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison or death

Mandatory minimum sentence of life in prison

14

Firearms use, carrying, and possession

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

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

15

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

16

Murder-for-hire conspiracy resulting in death

18 U.S.C. § 1958

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison or death

Mandatory minimum sentence of life in prison

17

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

GUILLERMO ENRIQUE FREITES-VELAZQUEZ,

ROIMAN NOE BELLO FERRER

18

Murder-for-hire conspiracy

18 U.S.C. § 1958

DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN

19

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN

20

Murder-for-hire conspiracy

18 U.S.C. § 1958 and 2

21

Assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3) and 2

KELLEN JASPE BUSTAMANTE,

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho”

22

Firearms use, carrying, and possession

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

KELLEN JASPE BUSTAMANTE,

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

23

Assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3) and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

24

Firearms use, carrying, and possession

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

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

25

Conspiracy to commit assault with a dangerous weapon in aid of racketeering

18 U.S.C. § 1959(a)(6)

KELLEN JASPE BUSTAMANTE,

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho”

26

Conspiracy to commit Hobbs Act Robbery

18 U.S.C. § 1951

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON PRIETO GALVIZ,

a/k/a “Flaco T,”

a/k/a “Flacote”

27

Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON PRIETO GALVIZ,

a/k/a “Flaco T,”

a/k/a “Flacote”

28

Firearms use, carrying, and possession

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

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON PRIETO GALVIZ,

a/k/a “Flaco T,”

a/k/a “Flacote”

Life in prison

Mandatory minimum and consecutive sentence of seven years in prison

29

Conspiracy to commit Hobbs Act Robbery

18 U.S.C. § 1951

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

MARIO PEREDA,

a/k/a “Cara de Hombre,”

WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON

30

Firearms use, carrying, and possession conspiracy

18 U.S.C. § 924(o)

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

MARIO PEREDA,

a/k/a “Cara de Hombre,”

WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON

31

Attempted Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

MARIO PEREDA,

a/k/a “Cara de Hombre,”

WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON

32

Sex trafficking by force, fraud, and coercion

18 U.S.C. §§ 1591(a), (b)(1), and 2

LUIS JOSE VELASQUEZ-HURTADO,

a/k/a “Chito”

33

Kidnapping in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

LUIS JOSE VELASQUEZ-HURTADO,

a/k/a “Chito”

34

Unlawful conduct with respect to documents in furtherance of trafficking and forced labor

18 U.S.C. §§ 1592(a)(1), (a)(2), (c) and 2

LUIS JOSE VELASQUEZ-HURTADO,

a/k/a “Chito”

35

Sex trafficking by force, fraud, and coercion

18 U.S.C. §§ 1591(a), (b)(1), and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino,”

JESUS RUBEN LOPEZ GONZALEZ,

DANGER LEONER SANCHEZ ALFONZO

36

Kidnapping in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

37

Assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3) and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

38

Firearms use, carrying, and possession

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

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

Life in prison

Mandatory minimum and consecutive sentence of seven years in prison

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Acting Commissioner of the New York City Department of Investigation (“DOI”), Christopher Ryan, Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., and Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (“FDIC-OIG”), Patricia Tarasca, announced today the unsealing of an Indictment charging former Commanding Officer of the New York City Police Department (“NYPD”) School Safety Division (“SSD”) KEVIN TAYLOR and Florida businessman GENO ROEFARO with bribery and related offenses.  TAYLOR was arrested this morning and will be presented today before U.S. Magistrate Judge Katharine H. Parker.  ROEFARO was also arrested this morning and was presented in the Southern District of Florida.  The case has been assigned to U.S. District Judge Vernon S. Broderick.  

“The NYPD is the greatest police force in the world, including because it invests wisely and honestly in resources,” said U.S. Attorney Jay Clayton.  “The NYPD procurement process is not for sale.  As alleged in the indictment, in 2023 and 2024, Kevin Taylor engaged in a corrupt relationship with Geno Roefaro—a Florida businessman who paid tens of thousands of dollars’ worth of bribes to Taylor—in exchange for Taylor agreeing to use his power and influence within the NYPD to enrich Roefaro’s company.  As alleged, Taylor also used his influence within the NYPD to attempt to extort at least two other businessmen for payments.  Corruption will not be tolerated from those, like Taylor, who are entrusted to keep New York City’s children and teachers safe.”

“Former NYPD Commanding Officer Kevin Taylor allegedly accepted bribes to steer city contracts to a co-defendant, Geno Roefaro, and attempted to extort another company,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “His alleged actions corrupted the city's contracting process and manipulated high-level executives.  While this alleged misconduct is exceedingly rare among NYPD officials, the FBI will not tolerate those who abuse their authority for personal gain.”

“When public servants choose to ignore their responsibility to follow the rules and promote fairness and integrity in what they do, they compromise the very fabric of good government and people’s faith in it,” said Acting DOI Commissioner Christopher Ryan.  “As charged, the former Commanding Officer of the NYPD’s School Safety Division allegedly monetized his authority and influence for personal gain, promising to advise and pressure others in City government to award contracts to a Florida businessman in return for tens of thousands of dollars in cash and gifts, including luxury hotel lodging, a helicopter tour, and Broadway tickets.  In a second alleged corrupt scheme, the NYPD official used his position to try and extort money from employees of a second company with an NYPD contract, threatening economic harm to the company in an attempt to obtain the payments.  I thank the United States Attorney’s Office for the Southern District of New York and our federal law enforcement partners for working with DOI to protect the City’s integrity.”

“Kevin Taylor is accused of leveraging his role as Commanding Officer of the NYPD School Safety Division to solicit bribes and extort employees,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “By offering lavish vacations and high-end dining, Geno Roefaro allegedly exploited his illicit relationship with Taylor to secure government contracts.  Following today’s arrests, they will now face the repercussions of their alleged misappropriation of City funds.”

“We are pleased to join our law enforcement partners in announcing this indictment,” said FDIC-OIG Special Agent in Charge Patricia Tarasca.  “These charges reinforce the FDIC-OIG’s commitment to investigating all allegations of financial misconduct, including bribery offenses, as we seek to maintain and preserve the integrity of the banking sector.”

As alleged in the Indictment:[1]

From at least in or about July 2023 through in or about February 2024, TAYLOR repeatedly abused his authority and considerable influence as the Commanding Officer of the NYPD SSD by soliciting or demanding bribes in two corrupt schemes.

First, TAYLOR solicited and received bribes from ROEFARO in exchange for promises by TAYLOR to advise and pressure others in the New York City government to award ROEFARO millions of dollars’ worth of contracts. 

At all relevant times, ROEFARO was the founder, majority owner, and chief executive officer of a company (“Company-1”) that markets and sells cellphone-based tipline applications to school districts and police departments.  In or about summer 2022, ROEFARO began attempting to sell his products to the New York City government through seemingly legitimate means.  When those legitimate efforts did not progress to ROEFARO’s liking, ROEFARO chose to bribe TAYLOR on multiple occasions to achieve the results he wanted.  ROEFARO bribed TAYLOR with multiple cash payments and paid for TAYLOR’s vacations, entertainment experiences, and dining at high-end restaurants.  In exchange, TAYLOR advised and pressured others, including other high-ranking officials at the NYPD and the City Council of New York, to procure goods and services from Company-1.

Second, TAYLOR solicited and attempted to extort as much as $75,000 from two employees (“Individual-1” and “Individual-2,” respectively) of a second company (“Company-2”) that had contracted with the NYPD to outfit the SSD’s members with ballistic vests.  TAYLOR sought these payments in exchange for TAYLOR’s official acts facilitating and not disrupting Company-2’s contract with the NYPD.  TAYLOR also threatened economic harm against Company-2 as a means to obtain the payments. 

Specifically, in summer 2023, TAYLOR signed a contract with an event space (the “Event Space”) in Manhattan so that TAYLOR could host a holiday party for the SSD at the Event Space in December 2023.  Through that contract, TAYLOR was personally liable to pay the Event Space more than $100,000 for the holiday party.  In an attempt to satisfy that personal liability, TAYLOR repeatedly solicited payments from Individual-1 and Individual-2 in exchange for TAYLOR facilitating Company-2’s contract with the NYPD, and TAYLOR otherwise threatened Company-2 with economic harm to obtain those payments.  Despite TAYLOR’s efforts, Individual-1 and Individual-2 never made the bribe payments solicited by TAYLOR.

*               *                *

TAYLOR, age 52, of Yonkers, New York, is charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; two counts of bribery, each of which carries a maximum sentence of 10 years in prison; and two counts of extortion, each of which carries a maximum sentence of 20 years in prison. 

ROEFARO, age 39, of Pompano Beach, Florida, is charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; and one count of bribery, which carries a maximum sentence of 10 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the FBI, the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York, DOI, IRS-CI, and FDIC-OIG.  Mr. Clayton also thanked the NYPD Internal Affairs Bureau, Group 25 for their assistance with this investigation. 

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jessica Greenwood, Matthew J. King, and Daniel H. Wolf 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 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, announced that a jury found LAMAR WILLIAMS, a/k/a “Black,” a/k/a “Little Black,” a/k/a “Chase Money Marz,” guilty today of murder in aid of racketeering, murder through use of a firearm, and racketeering conspiracy.  The convictions relate to WILLIAMS’ murder of 28-year-old Rasheed Barton on August 11, 2013, in the Bronx, New York, and WILLIAMS’ leadership of the Mac Ballers gang.  WILLIAMS was convicted following a seven-day jury trial before U.S. District Judge Loretta A. Preska, who will impose sentence on May 19, 2026.

“Moments ago, a unanimous Manhattan jury rightly found that Lamar Williams, a leader of the violent Mac Ballers set of the Bloods gang, gunned down Rasheed Barton in cold blood,” U.S. Attorney Jay Clayton said.  “New Yorkers want violent gang members off our streets.  Our office, together with our law enforcement partners—including the NYPD, FBI, DEA and HSI—is committed to that mission.  In this important case, I commend the women and men of this Office for closely partnering with New York’s finest in bringing a leader of a gang whose stock and trade is murder, violence, and intimidation.”

According to the allegations in the Indictment, public court filings, and evidence presented at jury trial:

From at least 2013 to 2022, WILLIAMS was a member and leader of the Mac Ballers, which is associated with the national Bloods gang.  The Mac Ballers operated primarily in the northeast United States, including in the Bronx, and in jails and prisons of New York City and the State of New York.

Members of the Mac Ballers committed acts of violence, including murder, to protect and expand the gang’s territory, to retaliate against rival gang members, to keep victims and potential victims in fear of the gang, and to otherwise promote the gang’s reputation.  They also distributed controlled substances in order to enrich themselves.  Mac Ballers members promoted and celebrated the gang’s criminal conduct, including acts of violence, drug distribution, and firearm usage.

On August 11, 2013, WILLIAMS shot and killed Rasheed Barton in the vicinity of East 174th Street and Bronx River Avenue in the Bronx, New York.  WILLIAMS murdered Barton in connection with WILLIAMS’ membership in the Mac Ballers gang and his conspiring to sell crack cocaine.

*                *                *

WILLIAMS, 35, of the Bronx, New York, was convicted of one count of murder in aid of racketeering, which carries a statutory maximum sentence of life in prison and a mandatory minimum sentence of life in prison; one count of murder through use of a firearm, which carries a statutory maximum sentence of life in prison; and one count of racketeering conspiracy with special sentencing factors, which carries a statutory maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the New York City Police Department and the investigators at the United States Attorney’s Office.

This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Ryan W. Allison and Patrick R. Moroney are in charge of the prosecution, with the assistance of Paralegal Specialists Chanel Foster and Sophie Keegan.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Superseding Indictment charging JALEN TEAGUE, a/k/a “Bizzle,” a/k/a “Too Official,” and CHELEIA COUNCIL SANDERS, a/k/a “Mercedes,” with racketeering conspiracy and TEAGUE with murder in aid of racketeering in connection with the August 16, 2023, poisoning death of a robbery victim in midtown Manhattan (“Victim-1”).  The Superseding Indictment also charges TEAGUE, SANDERS, and MEGAN STERNGAST, a/k/a “Megan - E Village,” with conspiring to distribute Gamma-Hydroxybutyric acid (“GHB”), resulting in death, in connection with Victim-1’s murder.  The case is assigned to U.S. District Judge Vernon S. Broderick. 

“As alleged, Jalen Teague directed a group of workers to locate, drug, and then rob men in New York City and across the country,” said U.S. Attorney Jay Clayton.  “These defendants displayed a startling indifference for New Yorkers, resulting in the death of an innocent man.  We deeply appreciate our agency partners at DEA and NYPD for ensuring these charges and ending this deadly scheme.”

“The charges filed today against Jalen Teague for allegedly masterminding a scheme to target, rob, and poison unsuspecting victims, including one which resulted in death, reflect the devastating consequences when individuals use controlled substances as weapons,” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts.  “GHB is a powerful and dangerous illicit drug, and in this case its misuse proved fatal.  These crimes represent a profound violation of trust and a complete disregard for human life.  The DEA remains committed to protecting the public and working with our law enforcement partners to ensure justice is delivered for the victims and their families.”

As alleged in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]

From at least in or about November 2022 through at least in or about June 2024, JALEN TEAGUE led a criminal enterprise and provided female workers with GHB, a rape drug that can cause users to lose consciousness.  The women then went to bars, restaurants, and clubs in several locations around the United States, including New York City, carrying GHB, often hidden inside small energy drink bottles.  There, at TEAGUE’s direction, the female workers looked for men wearing expensive watches or displaying other signs of wealth.  After identifying victims, the women would travel with the victims to their homes or hotel rooms.  Once alone with their victims, the women dosed—or “dropped”—the men by putting GHB into the victims’ drinks without the victims’ knowledge.  The victims would often lose consciousness or otherwise become vulnerable to robbery.  At TEAGUE’s direction, the women then frequently stole whatever they could, including luxury watches, wallets, credit cards, smartphones, gaming consoles, and identification documents for TEAGUE’s benefit. 

After the robberies, TEAGUE typically retrieved the women and would often attempt to use the stolen credit cards and cellphones to enrich themselves by transferring money using banking applications and buying gift cards and expensive electronics, among other things, before the owner of the credit cards woke up and could begin freezing accounts.  Between at least in or about November 2022 and in or about June 2024, the Teague Enterprise perpetrated approximately more than 100 GHB-assisted robberies in various locations around the United States.

Several victims of the Teague Enterprise’s GHB distribution scheme were hospitalized, and on August 16, 2023, TEAGUE caused the death of Victim-1 through this scheme.

If you believe you are a victim of the Teague Enterprise, please contact the Victim & Witness Services at the United States Attorney’s Office of the Southern District of New York at 866-874-8900.

*               *                *

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

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 defendants will be determined by a judge.

Mr. Clayton praised the outstanding investigative work of the DEA, the NYPD and Southern District of New York Digital Forensic Unit, the Complex Analytics and Social Media Enhancement Team at the New York/ New jersey High Intensity Drug Trafficking Area.  Mr. Clayton also thanked the New York County District Attorney’s Office for their invaluable assistance.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Rebecca R. Delfiner and Joseph H. Rosenberg are in charge of the prosecution.

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

Count

Defendant(s)

Min. and Max. Penalties

JALEN TEAGUE (32), and

CHELEIA COUNCIL SANDERS (31)

JALEN TEAGUE (32),

CHELEIA COUNCIL SANDERS (31), and

MEGAN STERNGAST (42)

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), Amaleka McCall-Brathwaite, announced today that ALICE + OLIVIA, LLC (“ALICE + OLIVIA”) has agreed to pay $3,200,000 to resolve allegations that it violated the False Claims Act by falsely certifying that it was eligible for a Paycheck Protection Program (“PPP”) loan.  Under the settlement approved by U.S. District Judge Analisa Torres, ALICE + OLIVIA has admitted and accepted responsibility for conduct alleged in the Government’s Complaint, including that it was ineligible to receive the PPP loan due to the total number of individuals it employed.

The PPP, administered by the SBA, was created to assist small businesses nationwide adversely impacted by the COVID-19 pandemic.  In early 2021, the SBA permitted qualifying businesses that received an initial PPP loan to apply for a second PPP loan (a “Second-Draw PPP loan”) if they met certain requirements.  For example, when ALICE + OLIVIA applied for a Second-Draw PPP loan in January 2021, a business generally could have no more than 300 employees, including the employees of its domestic and foreign affiliates.  ALICE + OLIVIA exceeded this size eligibility requirement.   

“The Paycheck Protection Program was established to help businesses weather the extraordinary economic disruption caused by the COVID-19 pandemic by offering forgivable loans,” said U.S. Attorney Jay Clayton. “But too many applicants sought and obtained loans that they were never entitled to receive.  The women and men of this Office are dedicated to holding actors who attempt to bilk public programs accountable.”

“This settlement reflects our continued commitment to protecting taxpayer dollars and ensuring that federal relief programs are used as Congress intended,” said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite.  “SBA-OIG will continue working closely with our law enforcement partners to hold accountable those who misrepresent their eligibility.”

As alleged in the Complaint:

On or about January 21, 2021, ALICE + OLIVIA submitted, through its authorized representative, an application for a Second-Draw PPP loan to a financial institution, and ALICE + OLIVIA was subsequently approved for and received a Second-Draw PPP loan for $2,000,000.  On or about February 9, 2022, ALICE + OLIVIA, through its authorized representative, applied for and received full forgiveness of its Second-Draw PPP loan.

ALICE + OLIVIA stated in its Second-Draw PPP loan application that it had 293 employees, when in fact ALICE + OLIVIA (together with its domestic and foreign affiliates) had more than 300 employees.  ALICE + OLIVIA also certified, among other things, that it was eligible to receive the Second-Draw PPP loan and that the information provided in its application and supporting documents was true and accurate in all material respects.

When ALICE + OLIVIA later applied for PPP loan forgiveness, it misrepresented in its application that it had only 271 employees at the time of its Second-Draw PPP loan application.  ALICE + OLIVIA also certified, once again, that the information provided in its application and supporting documents was true and correct in all material respects.

ALICE + OLIVIA violated the False Claims Act by knowingly presenting and making, or causing to be presented and made, false claims and statements in connection with its submission of its Second-Draw PPP loan application and forgiveness application.  Specifically, ALICE + OLIVIA falsely certified its eligibility for the Second-Draw PPP loan because ALICE + OLIVIA (together with its domestic and foreign affiliates) employed more than 300 employees and was thus ineligible for the loan it received.

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

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

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 the unsealing of an Indictment today charging IVAN VALERIO SAINZ SALAZAR, a/k/a “Mantecas,” with fentanyl importation and related weapons offenses in connection with his participation in a conspiracy to produce fentanyl for the Sinaloa Cartel and import it into the United States.  The Mexican government announced the arrest of Sainz Salazar and his associates in Badiraguato, Sinaloa on January 19, 2026.

“As alleged, Sainz Salazar served as a major producer of the Sinaloa Cartel’s fentanyl shipments bound for the United States,” said U.S. Attorney Jay Clayton.  “Fentanyl kills, and violent dealers in fentanyl must be taken off our streets.  Today’s charges target a major producer behind the Chapitos’ supply chain and underscore the commitment of the women and men of our Office to holding traffickers at all levels of the production and distribution chain accountable.”

“Fentanyl is the deadliest drug threat this nation has ever confronted, and today’s indictment makes that unmistakably clear,” said DEA Administrator Terrance Cole. “The Chapitos, a faction of the Sinaloa Cartel, a foreign terrorist organization - ran an enterprise protected by armed sicarios and military-grade weapons, producing millions of counterfeit pills that have killed many people, and leaving devastation in their wake. This is not just alleged drug trafficking. Fentanyl is a weapon used to destroy lives. The DEA is dismantling these networks from the top down, and we will not relent until the laboratories are shut, the traffickers are behind bars, and these cartel organizations are destroyed piece by piece.”

According to the allegations contained in the Indictment:1

The Sinaloa Cartel (the “Cartel”) is one of the most powerful drug cartels in Mexico and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States.  Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin.  Fentanyl represents the single deadliest drug threat that the United States has ever encountered—it has ruined lives, devastated communities, and killed Americans at an unprecedented rate.

The sons of the Cartel’s notorious former leader, “El Chapo,” who are themselves collectively known as the “Chapitos,” have variously and at times led the most powerful faction of the Cartel.  To protect and further their fentanyl trafficking operation, the Chapitos and their confederates have relied on armed enforcers, known as sicarios, who commit acts of violence to protect the Chapitos’ operation and its leaders, territory, labs, trafficking routes, and money, and regularly use military-grade weapons smuggled from the United States, including machine guns, to perpetrate violence, including murder, torture, and kidnapping.

From at least in or about 2022, up to and including in or about 2025, SAINZ SALAZAR served as a key fentanyl producer for the Chapitos.  Among other things, SAINZ SALAZAR worked with others to produce millions of fentanyl pills on behalf of the Chapitos, participated in meetings to arrange fentanyl transactions, carried firearms and relied on armed security personnel at those meetings, and reported to high-ranking lieutenants of the Chapitos who themselves relied on sicarios armed with AK-47s and FN Minimis for the protection and promotion of their fentanyl operations.  In or about 2023, the Chapitos consolidated fentanyl production at labs operated by SAINZ SALAZAR and his associates and issued orders authorizing only SAINZ SALAZAR and his associates to produce and distribute fentanyl in territories controlled by the Chapitos.

*               *                *

SAINZ SALAZAR, 40, a Mexican national, is charged with conspiring to import fentanyl into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; conspiring to distribute and possess with intent to distribute fentanyl in the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; using, carrying, and possessing machine guns and destructive devices in connection with the fentanyl importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and conspiring to use, carry, and possess machine guns and destructive devices in connection with the fentanyl importation conspiracy, which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit and thanked the DEA San Diego Field Division, the DEA Hermosillo, Mexico Resident Office, and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance.

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 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, announced that CHRISTIAN LUGO, a/k/a “Coco,” was sentenced today to 19 years in prison for LUGO’s leadership role in a racketeering conspiracy that used fraud and violent intimidation to run a tow truck and auto repair shop known as Certified Auto.  On February 7, 2022, LUGO allowed and encouraged a co-conspirator who worked for him at Certified Auto to shoot at members of a rival tow truck company, which resulted in the death of Gloria Ortiz.  In August 2025, LUGO pled guilty to racketeering conspiracy and firearms offenses, while admitting to his role in the murder, before U.S. District Judge Dale E. Ho, who imposed today’s sentence.

“As Christian Lugo has now admitted, his rivalry with other tow truck companies set in motion a deadly chain of events, which caused a broad daylight shooting, killing Gloria Ortiz,” said U.S. Attorney Jay Clayton.  “Lugo used a gun to further his tow truck business, itself part of a criminal enterprise.  His actions led to the murder of a woman.  He is now where New Yorkers want him—off the streets and in prison.” 

According to the indictment, public court filings, and statements made at court proceedings:

LUGO, along with others, corrupted the operations and activities of Certified Auto, which was a company that provided towing and auto repair services to vehicles damaged in car accidents.  LUGO and his co-conspirators used Certified Auto to commit wire, mail, and insurance fraud and to assert control over the towing and auto repair industry in their territory in the Bronx, New York, using violence and threats of violence.

LUGO had a rivalry with a nearby tow truck shop owned by Gloria Ortiz.  On February 7, 2022, one of Lugo’s tow truck drivers got into a minor car accident while driving one of LUGO’s pickup trucks (illegally used as a tow truck) with a passenger vehicle in Ortiz’s shop’s claimed territory, resulting in a physical dispute with workers for that shop over the right to tow the passenger vehicle. LUGO then contacted another subordinate member of Certified Auto (“CC-1”) to pick up the driver, after which they all met up with LUGO.  At that meeting, LUGO allowed and permitted CC-1 to shoot at members of the rival company. Specifically, during that conversation, LUGO told CC-1 “are you going to take care of it or am I?” and CC-1 stated that CC-1 would do so.  CC-1 then drove to Certified Auto, where Gloria Ortiz and her workers had gathered. CC-1 opened fire, causing the death of Gloria Ortiz and nonfatal injuries to two other people outside of the Certified Auto shop.

*                *                *

In addition to the prison term, LUGO, 38, of the Bronx, New York, was sentenced to six years of supervised release. 

Mr. Clayton praised the outstanding investigative work of Special Agents from the FBI New York Safe Streets Task Force and the New York City Police Department.  Mr. Clayton also thanked the Bronx County District Attorney’s Office for their assistance in the investigation. 

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Michael R. Herman, Ni Qian, and Andrew Jones are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that PAMELA DILLARD, a former supervisor in the New York City Police Department (“NYPD”), pled guilty to participating in a conspiracy to solicit and accept bribes.  DILLARD admitted to providing personally identifiable information of automobile accident victims contained in a non-public NYPD database to a co-conspirator (“CC-1”) who owned and operated a call center that referred accident victims to lawyers and doctors, in exchange for bribes of money and other things of value.  DILLARD pled guilty today before U.S. District Judge John G. Koeltl and is scheduled to be sentenced on July 1, 2026.

“The NYPD is the gold standard of police departments,” said U.S. Attorney Jay Clayton.  “There is no place in the NYPD for those who compromise the Department’s integrity for personal profit.”

“Pamela Dillard shamelessly exploited her law enforcement position to profit from the personal information of vulnerable accident victims, betraying the public’s trust for her own selfish gain,” said HSI Acting Special Agent in Charge Michael Alfonso.  “The defendant’s guilty plea is a direct result of her calculated abuse of her access to confidential data, choosing personal greed over the duty to protect sensitive victim information.  HSI New York, together with the FBI, the NYPD and the Southern District of New York, remains steadfast in placing New Yorkers’ wellbeing above all else, and will relentlessly pursue those who forsake their sworn responsibilities and in turn endanger our communities.”

“Pamela Dillard, a former NYPD civilian employee, abused her supervisory position within a highly acclaimed police department and her access to sensitive information to generate an illicit income,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “While the vast majority of our local law enforcement partners are dedicated to protecting the communities they serve, the FBI will not tolerate those who choose to betray that trust at the expense of New Yorkers.”           

According to the allegations contained in the Information, court records, and statements made in court:       

From at least in or about January 2021 through at least in or about September 2023, while working as an NYPD Principal Police Communication Technician (“PCT”), DILLARD solicited and accepted bribes from CC-1 in exchange for providing CC-1 the personally identifiable information of automobile accident victims from a non-public NYPD database.  In her capacity as a Principal PCT, DILLARD supervised other PCTs who dispatched police officers to the location of incidents that were called into 911 and had access to sensitive information about automobile accident victims.  During this period, DILLARD accepted at least 21 bribe payments from CC-1, totaling approximately $17,300.

*               *                *

DILLARD, 48, of Brooklyn, New York, pled guilty to one count of conspiracy to commit federal program bribery, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI, HSI, and the NYPD’s Internal Affairs Bureau, Group 25.

The case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Connie L. Dang and Rebecca T. Dell are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that RUI-SIANG LIN was sentenced to 30 years in prison for conspiring to distribute narcotics, money laundering, and conspiring to sell adulterated and misbranded medication, in connection with LIN’s ownership and operation of the Incognito Market, an online narcotics marketplace that sold more than one ton of narcotics before its closure in March 2024.  On December 16, 2024, LIN pled guilty before U.S. District Judge Colleen McMahon, who imposed today’s sentence.

“Rui-Siang Lin was one of the world’s most prolific drug traffickers, using the internet to sell more than $105 million of illegal drugs throughout this country and across the globe,” said U.S. Attorney Jay Clayton.  “While Lin made millions, his offenses had devastating consequences.  He is responsible for at least one tragic death, and he exacerbated the opioid crisis and caused misery for more than 470,000 narcotics users and their families.  Today’s sentence puts traffickers on notice: you cannot hide in the shadows of the Internet.  And our larger message is simple: the internet, ‘decentralization,’ ‘blockchain’—any technology—is not a license to operate a narcotics distribution business.”   

According to court documents and the evidence presented in connection with today’s sentencing:

Incognito Market was an online narcotics bazaar that existed on the dark web.  Incognito Market formed in October 2020.  Since that time, and through its closing in March 2024, Incognito Market sold more than $105 million of narcotics—including more than 1,000 kilograms of cocaine, over 1,000 kilograms of methamphetamines, hundreds of kilograms of other narcotics, and more than 4 kilograms of purported “oxycodone,” some of which were laced with fentanyl.  Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.”  LIN operated the Incognito market under the online pseudonym “Pharaoh.”  As “Pharaoh”—the leader of Incognito market—LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.

Incognito Market was designed to foster seamless narcotics transactions across the internet and the world, and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service.  Upon visiting the site, users were met by a splash page and graphic interface, which is pictured below:

After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice.  Incognito Market sold illegal narcotics and misbranded prescription medication, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito Market is below:

Each listing on Incognito Market was sold by a particular vendor.  To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee.  In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers.  LIN collected more than $6 million in profits from Incognito.  To facilitate these financial transactions, Incognito Market had its own “bank” (the “Incognito Bank”), which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.”  After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected.  The bank enabled buyers and sellers to stay anonymous from each other.  The bank’s graphic interface is pictured below:

LIN was a founding member of the Incognito Market in October 2020, and led the site as of approximately January 2022, until LIN closed it in March 2024.  LIN ran the site while based in, among other places, St. Lucia.  Remarkably, while LIN was managing Incognito, he led a four-day training for St. Lucian police officers about “Cybercrime and Cryptocurrency,” which he bragged about on his personal Facebook page.

Due to LIN’s leadership and sophisticated computer coding abilities, the Incognito Market grew its customer base to more than 400,000 buyer accounts.  Those hundreds of thousands of buyers were serviced by more than 1,800 narcotics “vendors,” many of which were serious drug traffickers in their own right.  In total, Lin’s Incognito Market facilitated more than 640,000 individual narcotics transactions.

On January 22, 2022, Lin announced a new Incognito policy that explicitly permitted its vendors to sell opiates on the site.  As a result, Incognito listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be “oxycodone,” which were purchased on Incognito Market.  Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.  Tragically, on September 13, 2022, a 27-year-old from Arkansas died from consuming purported “oxycodone” that he purchased on the Incognito Market. That “oxycodone” was laced with fentanyl.

In March 2024, Lin closed Incognito by stealing at least $1 million that its users had on deposit in the Incognito Bank.  In addition, Lin attempted to extort his coconspirators.  LIN demanded that the Incognito buyers and vendors pay him, or he would publish their user history and cryptocurrency addresses online.  In a posting on the Incognito site, LIN wrote “YES, THIS IS AN EXTORTION!!!,” as depicted below.

In imposing the sentence, Judge McMahon stated to the defendant that Incognito Market was “a business that made [him] a drug kingpin," and that this was the “most serious drug crime I have ever been confronted with in 27.5 years.”

*                *                *

In addition to the prison term, LIN, 24, of Taiwan, was sentenced to five years of supervised release and $105,045,109.67 in forfeiture.

Mr. Clayton praised the investigative work of the Federal Bureau of Investigation, New York City Police Department, Homeland Security Investigations, Drug Enforcement Administration, Food and Drug Administration Office of Criminal Investigations, and U.S. Customs and Border Protection.  

This prosecution 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.

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

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging AHUVA KATZIN and YITZCHOK SKLAR, a/k/a “Isak Sklar,” with conspiracy to distribute narcotics resulting in death in connection with the poisoning of SKLAR’s four-year-old child in Brooklyn on March 4, 2025.  KATZIN and SKLAR were arrested today, and SKLAR will be presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.  KATZIN will be presented tomorrow before U.S. Magistrate Judge Robyn F. Tarnofsky.  The case has been assigned to U.S. District Judge Jennifer L. Rochon.

“As alleged, Ahuva Katzin and Yitzchok Sklar sold drugs that caused the tragic death of Sklar’s own child,” said U.S. Attorney Jay Clayton.  “Instead of stopping, they allegedly continued to distribute fentanyl and other dangerous drugs across New York.  There are no good outcomes for deadly fentanyl in and around our city, and New Yorkers want it gone.  This Office will hold accountable those who distribute poison in our communities and will seek justice for the victims of these devastating crimes.”

“Once again, we are forced to confront the reckless disregard for human life shown by those who allegedly traffic fentanyl and other illicit narcotics” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts.  “This case reminds us of the danger that fentanyl presents, especially when our most vulnerable, our children, are exposed to it.  A four-year-old’s home is the last place fentanyl should ever be.  This is a senseless tragedy, as is any loss of life from illicit narcotics, and we will continue to work alongside our law enforcement partners to ensure justice is delivered.”

“Ahuva Katzin and Yitzchok Sklar have been indicted for their roles in a drug distribution conspiracy that led to the heartbreaking death of a four-year-old,” said NYPD Commissioner Jessica S. Tisch.  “This case shows the NYPD’s continued commitment to getting deadly drugs out of our communities and going after the individuals who put our families—and their own—in harm’s way.  I would like to thank our NYPD investigators and our partners at the Drug Enforcement Agency and at the U.S. Attorney’s Office for their work on this case and ensuring accountability for this devastating loss.”

As alleged in the Indictment, other public filings, and statements made in public court proceedings:[1]

From at least in or about 2023 through at least in or about 2025, KATZIN and SKLAR conspired to distribute fentanyl, para-fluorofentanyl, heroin, and methamphetamine in New York City.  On March 4, 2025, exposure to the fentanyl and para-fluorofentanyl distributed by KATZIN and SKLAR caused the death of SKLAR’s four-year-old boy who had been residing with his mother and SKLAR in an apartment in Brooklyn.

On the morning of March 4, 2025, after calling an ambulance service to report that the boy was experiencing a medical emergency, SKLAR attempted to hide his narcotics.  Video surveillance footage captured SKLAR leaving his dying child in the apartment while running out with a black bag and returning moments later without the bag.  The bag was later recovered from a nearby car rented by SKLAR and found to contain, among other things, fentanyl, para-fluorofentanyl, and heroin.  A screenshot of SKLAR running out with the bag of drugs and a photo of the drugs later recovered by law enforcement officers are included below:

Following the boy’s death, KATZIN and SKLAR continued to work together to sell drugs throughout New York.

*               *                *

KATZIN, 33, and SKLAR, 34, both of Brooklyn, New York, are each charged with conspiracy to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.

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 defendants will be determined by a judge.

Mr. Clayton praised the outstanding work of the DEA and the NYPD in connection with this investigation.  Mr. Clayton also thanked the Kings County District Attorney’s Office.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Meredith Foster and Henry Ross are in charge of the prosecution.

The charge contained in the Indictment is merely an allegation, 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 that VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to securities fraud for his role in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information.  KOMISSAROV is scheduled to be sentenced on June 24, 2026.

“Vadim Komissarov, the former CEO of Trident Acquisitions Corp., defrauded his shareholders,” said U.S. Attorney Jay Clayton.  “He manufactured fraudulent revenue and then obstructed the SEC’s investigation, including by lying under oath.  Whether it be SPACs or any other capital raising vehicles, when executives fabricate revenue and mislead our markets, this Office and our partners will pursue them vigorously.”

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

From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information about a prospective acquisition target and by profiting from the effect of the deception by selling shares of Lottery.com before other market participants realized the true state of the company (the “Revenue Scheme”).

The Revenue Scheme arose from an effort by KOMISSAROV to identify a suitable target for TDAC before TDAC reached a deadline to either use or return investor funds that had been raised to support an acquisition.  In November 2020, KOMISSAROV settled on AutoLotto, Inc., d/b/a Lottery.com as a target for TDAC.  To deceive TDAC shareholders about the nature of AutoLotto’s business, and to thereby secure their approval for TDAC’s acquisition of AutoLotto (the “Business Combination”), KOMISSAROV worked with others to improperly and misleadingly inflate AutoLotto’s revenue and to report those inflated figures to TDAC’s shareholders through public filings with the Securities and Exchange Commission (“SEC”), which KOMISSAROV signed or caused to be filed as the principal executive, financial, and accounting officer of TDAC.

The Revenue Scheme created the false appearance of revenue-generating business activity for AutoLotto and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”

In April 2022 and May 2022, KOMISSAROV sold almost 300,000 Lottery.com shares for more than $600,000, months before Lottery.com disclosed to investors that it had identified errors in the company’s reported revenue and available cash.

By June 2023 and August 2023, the enforcement staff of the SEC had begun to investigate TDAC and Lottery.com.  After receiving a subpoena from the SEC for documents and testimony in connection with the SEC’s investigation, KOMISSAROV schemed to obstruct the SEC’s investigation.  For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme.  KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . .  if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.”

KOMISSAROV also personally tried to obstruct the SEC’s investigation.  On November 20, 2024, KOMISSAROV provided sworn testimony to the SEC in connection with the SEC investigation into TDAC and Lottery.com.  During his testimony, KOMISSAROV gave false and misleading answers about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.

*               *                *

KOMISSAROV, 54, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.   

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

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the SEC, which has filed a separate civil action against KOMISSAROV, for its assistance and cooperation in the investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Complaint charging MICHAEL ZAYAS in connection with the January 14, 2026, daytime shooting during which ZAYAS fired a gun 10 times in the vicinity of Kelly Playground in the Chelsea neighborhood of Manhattan.  ZAYAS was arrested and presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.

“As alleged, Michael Zayas brazenly and unlawfully carried a firearm into a residential neighborhood—across the street from a playground where children were playing, and just down the street from a middle school—and fired it in the air 10 times,” said U.S. Attorney Jay Clayton.  “Zayas’s alleged conduct sowed fear and panic among New York residents and visitors, including hundreds of children at the middle school, which was put into lockdown when the gunfire erupted.  Our career prosecutors and dedicated partners will continue to act tobring to justice those who commit gun crimes and ensure that our playgrounds, schools, and streets are safe from threat.  That’s what New Yorkers want, and we hear them.”

“This brazen, broad-daylight shooting—mere steps from a school and a playground and allegedly at the hands of a convicted felon—endangered innocent lives and disrupted the safety of our community,” said HSI Acting Special Agent in Charge Michael Alfonso.  “Zayas’ swift identification and arrest is a testament to the outstanding collaboration between HSI New York, the NYPD, and our federal law enforcement partners.  HSI New York remains steadfast in our commitment to pursuing violent offenders and protecting the public from senseless acts.”

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

On or about January 14, 2026, at approximately 2:42 p.m., a masked shooter fired approximately 10 rounds near the Kelly Playground at the corner of 17th Street and 8th Avenue in Manhattan before fleeing the scene, causing at least one nearby school to be placed on lockdown.  Law enforcement officers recovered 10 9-millimeter cartridges from the scene and later identified the shooter as ZAYAS, who had previously been convicted of a felony offense.

The images below show ZAYAS, minutes prior to the shooting (approximately 2:37 p.m.), entering the elevator on a particular floor on an apartment building located approximately two blocks away from the scene of the shooting, then masked and fleeing westbound on 17th Street toward 9th Avenue after the shooting.

*                *               *

ZAYAS, 49, of Brooklyn, New York, is charged with one count of possession of ammunition after felony conviction, which carries a maximum sentence of 15 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 the judge.

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

This case is being handled by the Office’s Violent Organizations & Crime Unit.  Assistant U.S. Attorneys Jared Hoffman and Benjamin Levander 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 MARIO GOGLIORMELLA, STEVEN LACAJ, and KARIM IBRAHIM, a/k/a “Chris Hayes,” pled guilty to conspiracy and fraud charges in connection with their management of L & G Capital Corp., Legend Venture Partners LLC, and a related series of funds.  GOGLIORMELLA and LACAJ pled guilty before U.S. District Judge Vernon S. Broderick and IBRAHIM pled guilty before U.S. Magistrate Judge Henry J. Ricardo.  The defendants will be sentenced before Judge Broderick at a later date.

“Our pre-IPO markets are important to investors, entrepreneurs, and our economy,” said U.S. Attorney Jay Clayton.  “Their integrity is critical to our continued leadership in technology, healthcare, energy, and other key industries.  The defendants used high-pressure sales tactics, false and misleading disclosures, and hidden exorbitant fees to defraud retail investors seeking to invest in private companies that had not yet had initial public offerings.  The women and men of our Office and our law enforcement partners continue to focus on our pre-IPO markets and our listed small-cap markets.  Our message is clear: marketing and trading in securities of new and smaller companies does not give you a pass to commit fraud.”

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

GOGLIORMELLA, LACAJ, and IBRAHIM engaged in a scheme to defraud investors in a group of related private funds known generally as the “StraightPath Funds” and the “Legend Funds.”  The defendants, and others working at their direction, used “boiler room”-style call centers to market the funds to non-professional investors by promising an opportunity to invest in privately held companies expected to go public in the near future (“pre-IPO companies”).  The defendants purported to offer investors the chance to acquire shares in pre-IPO companies at favorable prices in advance of an anticipated public offering, at which time, they claimed, the shares would be worth significantly more.  The defendants also claimed there were no upfront fees or commissions, and that they would not get paid until their investors got paid.

These representations that the defendants made to investors were lies.  In fact, the defendants sold shares to investors at arbitrarily inflated and excessive prices without disclosing to investors the nature or extent of the markup.  The defendants’ fraudulent misrepresentations about the operation of their funds allowed them to raise approximately $185 million from hundreds of investors.  Based in large part on the excessive and undisclosed share price markups they charged to investors, the defendants were able to divert nearly $28 million in investor funds to themselves.  They also used investor funds to pay their sales representatives at least $17.5 million in fees and commissions, despite making explicit representations to investors that fees were not being charged.  In addition to misrepresentations about fees and markups, the defendants also misled investors regarding the nature of their investments and hid the involvement of GOGLIORMELLA and IBRAHIM, who had previously been disciplined by the Financial Industry Regulatory Authority, in the management of the Funds.

In order to generate interest in the Funds among retail investors, GOGLIORMELLA, LACAJ, and IBRAHIM used finders, or “referral agents,” to pitch prospective investors and thereafter to serve as the investors’ primary point of contact.  The defendants used “boiler room”-style call centers wherein salespeople cold-called potential investors, many of whom were not experienced investors, and gave aggressive sales pitches using notes and pitch scripts.  The defendants referred to their pitch scripts as “The Bible.”  Contrary to the defendants’ claim that they and their agents did not make money unless and until investors received a profit on their investments, the defendants paid referral agents a commission, typically a 10 to 15 percent front-end fee based on the amount of the investment that agents were able to draw to the Funds, plus a portion of the carried interest when the Funds exited their position in a particular company.

At first, the defendants operated this scheme as a marketing arm for StraightPath Venture Partners, Inc. (“StraightPath”).  In approximately 2021, multiple individuals associated with StraightPath received subpoenas from the SEC, and in approximately February 2022, StraightPath ceased operations.  In approximately February 2022, when StraightPath ceased operations, GOGLIORMELLA, LACAJ, and IBRAHIM began conducting the scheme under the corporate entity Legend Venture Partners, LLC (“Legend”), where they continued to run the same scheme that StraightPath had started.  The three principals of StraightPath —Michael Castillero, Francine Lanaia, and Brian Martinsen—were also prosecuted by this Office and convicted at a trial before U.S. District Judge Jesse M. Furman in November 2025.

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GOGLIORMELLA, 48, of Manhasset, New York, STEVEN LACAJ, 28, of New York, New York, and KARIM IBRAHIM, 36, of Queens, New York, each pled guilty to one count of conspiracy to commit securities fraud, wire fraud, and investment adviser fraud, which carries a maximum sentence of five years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison.

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

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 a parallel civil action.

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Adam S. Hobson and Matthew R. Shahabian 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 Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the filing of a Superseding Indictment charging GÖKÇE GÜVEN with securities fraud, wire fraud, visa fraud, and aggravated identity theft.  The charges arise from an alleged scheme by the defendant to defraud investors in her technology startup Kalder Inc. (“Kalder”) through material misrepresentations regarding Kalder’s financials, brand partners, and paying customers.  GÜVEN, a citizen of Turkey, also used lies about Kalder, as well as forged documents, to obtain an O-1A visa, reserved for individuals of “extraordinary ability,” that would allow her to live and work in the U.S.  GÜVEN was previously arrested on November 27, 2025.  The case is assigned to U.S. District Judge Lewis A. Kaplan.  

“As alleged, Gökçe Güven built her seed round on fake revenue, inflated brand partnerships, and fabricated documents, and then used the same lies to secure a visa reserved for extraordinary ability,” said U.S. Attorney Jay Clayton.  “Beware of fraud masquerading as entrepreneurship.  This Office, alongside our law enforcement partners, will continue to vigorously pursue market participants who use fraud and deception to victimize investors.”              

“Gökçe Güven allegedly exaggerated her company’s fiscal condition and partnerships to swindle more than seven million dollars from prospective investors before using these misrepresentations to unlawfully obtain a highly acclaimed visa to the United States,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Güven allegedly curated a façade of her business ingenuity to unlawfully reap financial and personal benefits.  The FBI will continue to expose any manipulative tactics employed to advertise misleading investment opportunities at the cost of their related stakeholders.”

“This indictment displays the lengths that individuals will go through to defraud investors and the American public, and how they are ultimately caught to pay for their crimes,” said USPIS Inspector in Charge Ketty Larco-Ward.  “Investors placed their trust in this emerging fintech founder and CEO, only to be misled and scammed, as alleged.  We commend the work and partnership of the FBI and the Securities and Commodities Fraud Task Force to put end to self-serving executives and their fraudulent schemes.”

As alleged in the Superseding Indictment and other public filings in this case:[1]

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.  As a result, 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.

*               *                *

GÜVEN, 26, of New York, New York, and Turkey, is charged with securities fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison; visa fraud, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.  

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

Mr. Clayton praised the outstanding work of the FBI and USPIS.  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.
 

[1] As the introductory phrase signifies, the entirety of the text of the Superseding 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, announced that a jury found ANTHONY CURCIO guilty yesterday of conspiracy to commit wire fraud and wire fraud for engaging in a scheme to defraud customers by selling them sports and Pokémon trading cards with fake grades purportedly issued by Professional Sports Authenticator (“PSA”).  CURCIO was found guilty following a two-and-a-half-week trial before U.S. District Judge Ronnie Abrams.   

“Millions of Americans participate in our collectibles markets, and they should be free from fraud and manipulations,” said U.S. Attorney Jay Clayton. “Anthony Curcio now faces years in prison, and his conviction is a cautionary tale for those who would abuse the collectibles markets.  Our Office is dedicated to ensuring that markets of all kinds, including collectibles markets, are safe from fraudsters.  Anthony Curcio tried to cover his tracks and hide what he had done, but thanks to our law enforcement partners and the many victims who came forward, he has now been convicted of serious federal crimes.”

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

From at least 2022 to May 2024, CURCIO and IOSIF BONDARCHUK sold and attempted to sell sports and Pokémon trading cards to many victims across the country with authenticity and condition grades purportedly issued by PSA, but which had been forged by CURCIO.  CURCIO directed the scheme and used BONDARCHUK as a front man to interact with victims and list cards for sale on online marketplaces and auction sites.  CURCIO and BONDARCHUK sold and attempted to sell trading cards with counterfeit grades for thousands of dollars, and sometimes up to hundreds of thousands of dollars, each, when the cards were actually worth only a small fraction of those sums. In total, CURCIO and BONDARCHUK attempted to deprive victims of over $2 million through their sales and attempted sales by misrepresenting the grade of numerous trading cards.

Sports and Pokémon trading cards can have considerable resale value depending on, among other things, their condition and authenticity.  PSA is a leader in the card collectibles authentication industry.  For a fee, PSA verifies a card’s authenticity and assesses its condition, assigning a numerical grade from one to 10, with one being the lowest grade and 10 being the highest.  After grading a card, PSA seals the card in a distinctive, tamper-resistant plastic case that encloses the card to preserve its condition and indicates its grade on a label inside the case.  PSA also assigns a unique certification number—or serial number—to each card it grades, which collectors can then look up in PSA’s public database to find out information about the card and confirm that PSA had in fact graded that card.  A PSA grade can have a significant impact on a card’s market value, at times increasing the value of the card merely as a result of having been authenticated and graded.  And cards with higher grades can sell for considerably more than cards with lower grades, sometimes by multiples.

CURCIO’s scheme focused on selling vintage rookie sports cards—particularly Michael Jordan rookie cards—and Pokémon cards that would sell for thousands or even hundreds of thousands of dollars if they had received a PSA 9 or 10 grade. CURCIO sold ungraded or lower-graded cards for more than they were worth by cleaning the rating and serial numbers off of real PSA labels and then printing fake 9 or 10 grades and new serial numbers on the PSA labels. 

CURCIO and BONDARCHUK sold the trading cards with fake PSA grades on different online marketplaces and auction sites, such as eBay, as well as in person at card shops, card shows, and in-person trades with victims.  In addition to using BONDARCHUK as a front, CURCIO used other fake identities to hide his role from victims, PSA, and law enforcement.  At times, CURCIO was confronted by buyers when they realized the rare, highly graded cards they had paid thousands of dollars for were fraudulent; CURCIO refunded the buyers, took back the cards, and then sold them again to new victims.  CURCIO even tried to pass off one Michael Jordan rookie card three times, each time with a different forged grade. 

*                *                *

CURCIO, 45, of Redmond, Washington, was convicted at trial of conspiracy to commit wire fraud and wire fraud.  BONDARCHUK, 38, of Lake Stevens, Washington, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.  Each count 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 the judge.

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

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys David R. Felton, Kingdar Prussien, and Cecilia Vogel are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANDREW NGUYEN, a former officer in the New York City Police Department (“NYPD”), pled guilty today before U.S. District Judge Analisa Torres to conspiring to solicit and receive bribes, conspiring to distribute narcotics, and possessing a firearm in connection with the conspiracy to distribute narcotics.  NGUYEN is scheduled to be sentenced on June 22, 2026. 

“Andrew Nguyen betrayed the community he swore to protect,” said U.S. Attorney Jay Clayton.  “In exchange for bribes, Nguyen used his power as a police officer to distribute deadly drugs in New York City.  New Yorkers have the most effective and most respected police department in the world because the NYPD and the people of New York will not tolerate bad cops.  Today’s guilty plea reinforces that message.”

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

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

*                *               *

NGUYEN, 41, of Harriman, New York, pled guilty to one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of five years in prison; one count of conspiracy to distribute and possess with intent to distribute mixtures and substances containing a detectable amount of cocaine, which carries a maximum sentence of 20 years in prison; and one count of possession of a firearm in furtherance of a drug trafficking offense, which carries a mandatory minimum sentence of five years in prison, which must be served consecutively to any other term of prison, and a maximum sentence of life in prison.

The statutory minimum and maximum penalties 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 Federal Bureau of Investigation and the NYPD’s Internal Affairs Bureau.

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

United States Attorney for the Southern District of New York, Jay Clayton, United States Attorney for the Northern District of Ohio, David M. Toepfer, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Executive Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (“IRS-CI”) Washington, D.C. Field Office, Kareem Carter, and Special Agent in Charge of the Detroit Field Office of Homeland Security Investigations (“HSI”), Jared Murphey, announced today the unsealing of an indictment charging PATRICK JAMES, the founder and former CEO of First Brands Group, LLC (“First Brands”), and his brother EDWARD JAMES, a former senior executive at First Brands, with conspiracy to commit wire fraud and bank fraud, conspiracy to commit money laundering, and multiple counts of wire fraud and bank fraud, in connection with various schemes to defraud lenders regarding the liabilities and financial condition of First Brands.  PATRICK JAMES was charged in an additional count of managing a continuing financial crimes enterprise in connection with the charged schemes.

As alleged in the indictment, PATRICK JAMES and EDWARD JAMES perpetrated a yearslong fraud at First Brands, eventually bankrupting the global automotive company in September 2025.  At the time of its bankruptcy, First Brands—a company that reported approximately $5 billion in net annual sales worldwide—declared just $12 million in cash in its corporate bank accounts and over $9 billion in liabilities.  As a consequence of the defendants’ fraudulent schemes, FIRST BRANDS’ lenders and creditors now face billions in losses.

PATRICK JAMES and EDWARD JAMES were arrested in Ohio this morning and are expected to be presented later today in the Northern District of Ohio.  The case has been assigned to U.S. District Judge Analisa Torres.

Also unsealed today is the guilty plea of PETER ANDREW BRUMBERGS in connection with his role in the scheme.  BRUMBERGS pled guilty pursuant to an Information before U.S. District Judge Analisa Torres on January 26, 2026.  BRUMBERGS is cooperating with the Government.

“As alleged in the indictment, Patrick James, together with his brother, Edward James, perpetrated a staggering fraud at First Brands Group,” said U.S. Attorney Jay Clayton.  “The James brothers obtained billions for First Brands—and millions for themselves—by presenting their lenders with the impression of a successful, growing international business.  The indictment and the guilty plea unsealed today describe a very different reality: a business run through fraud, fake documents, and false financials.  Together with our law enforcement partners, we will continue working tirelessly to uncover every aspect of this fraud and vindicate the rights of every victim.”

“Individuals who lie about the financial health of their company for the purposes of greed create shockwaves across the business sector that endanger the economic wellbeing of others,” said U.S. Attorney David M. Toepfer.  “The fallout from selfish and deceptive actions—such as those alleged in this case—can cascade down to honest and hardworking company employees based right here in Ohio.  Their jobs and livelihoods are at stake due to the corrupt actions of a few individuals.  Together with our federal partners, we will seek justice on behalf of all victims affected by this travesty.”

“These executives allegedly inflated invoices, double- and triple- pledged collateral, and falsified financial statements to unlawfully trick lenders into giving them billions of dollars,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Not only did their alleged deceit exploit the integrity of our financing system, they also betrayed the trust of the companies funding First Brands by mispresenting their business’s financial position.  The FBI will never cease its pursuit of fraudsters seeking to manipulate financial institutions for greedy gains.”

“HSI remains ever vigilant to detect money laundering and financial fraud schemes that undercut fair and honest business practices, especially one like this, which allegedly contributed to billions in losses,” said HSI Detroit Acting Special Agent in Charge Jared Murphey.  “HSI special agents, alongside our FBI and IRS partners, remain committed to enforcing the rule of law and ensuring justice for victims.  As law enforcement, we have a solemn responsibility to protect the integrity of our financial system and to hold violators accountable.”

“The defendants operated First Brands as a ‘Ponzi’ scheme in which new loan proceeds were used to pay back old lenders and to fund their extravagant lifestyle,” said Executive Special Agent in Charge of the IRS-CI Washington, D.C. Field Office Kareem Carter.  “Today’s announced indictment of defendants Patrick James and Edward James demonstrates IRS-CI special agents’ and our law enforcement partners’ commitment to investigate, prosecute, and hold accountable criminals who allegedly defraud banks and lenders out of billions of dollars.  IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and I would like to thank our Global Illicit Financial Team for their vigilant, professional, and dedicated pursuit of those who attempt to enrich themselves through fraudulent means.”

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

From at least in or about 2018 through in or about 2025, PATRICK JAMES and EDWARD JAMES, the defendants, built and bankrupted First Brands Group, LLC (“First Brands”).  First Brands operated as an automotive aftermarket parts supplier that developed, marketed, and sold replacement parts such as brakes, filters, wipers, and lights under various brand names.  PATRICK JAMES, the defendant, founded First Brands and served as its Chief Executive Officer.  EDWARD JAMES, the defendant, was First Brands’ former Senior Vice President and is PATRICK JAMES’s brother.  As alleged, the defendants perpetrated multiple fraud schemes to fake and falsely inflate invoices for accounts receivable and payable; double- and triple-pledge loan collateral; falsify corporate financial statements; and conceal substantial liabilities from lenders.  These schemes yielded billions of dollars in financing to First Brands and enabled PATRICK JAMES and EDWARD JAMES to reap millions of dollars in fraud proceeds.

To sustain First Brands’ growth-through-acquisition strategy, PATRICK JAMES and EDWARD JAMES misled various counterparties to fraudulently inject cash into First Brands.  First, PATRICK JAMES and EDWARD JAMES deceived First Brands’ factoring partners, that is, financing counterparties that purchased First Brands’ accounts receivable (invoices) and the right to payment thereunder, in exchange for advancing a portion of the value of those invoices upfront.  At the direction and with the approval of PATRICK JAMES and EDWARD JAMES, the defendants, First Brands obtained billions in invoice-based financing from factors through a series of fraudulent schemes.  As part of those schemes, and under the defendants’ direction and supervision, First Brands employees routinely submitted fake invoices, fraudulently inflated invoices, and double-pledged invoices for the purpose of selling and pledging them to factoring counterparties as if they represented valid, collectible receivables from customers.  In some instances, invoices were generated for transactions that had never occurred, while in others the dollar amounts on invoices were altered to make them appear more valuable. Through the defendants’ fraud schemes, First Brands sold its factoring partners billions of dollars of purported customer receivables that did not exist.

Second, First Brands defrauded factoring partners to whom it sold accounts payable (amounts owed to First Brands’ suppliers).  At the direction and with the approval of PATRICK JAMES and EDWARD JAMES, the defendants, First Brands submitted false and misleading invoice information and false and misleading information about First Brands’ financial position to induce financers to increase the funds advanced, a portion of which First Brands diverted to itself to cover cash needs.  At First Brands, these self-payments were referred to as “round trips” or, euphemistically, as “corporate initiatives.” PATRICK JAMES and EDWARD JAMES, the defendants, closely monitored and managed these “round trip” transactions as part of First Brands’ daily cash-management process.                                                                                     

Third, PATRICK JAMES and EDWARD JAMES defrauded First Brands’ lenders by disseminating materially false and misleading financial information about the company and secretly encumbering assets subject to the lenders’ borrowing base and priority liens.  At the direction and with the approval of PATRICK JAMES, First Brands employees made unsupportable financial statement adjustments to meet financial benchmarks set by PATRICK JAMES.  To implement these directives, First Brands employees maintained internal “bridge” files that juxtaposed accurate corporate financials with the manipulated versions.

Unbeknownst to First Brands’ lenders, PATRICK JAMES and EDWARD JAMES also incurred massive off-balance-sheet debt through inventory-financing arrangements involving entities wholly owned and controlled by PATRICK JAMES (the “James Entities”).  The James Entities were nominally separate from First Brands.  In fact, they had no independent business operations.  Through the James Entities, PATRICK JAMES entered financing arrangements with at least three inventory financers (the “Off-Sheet Lenders”), whereby the lenders advanced funds to the James Entities to purchase inventory from First Brands.  The James Entities, in turn, pledged that inventory purchased from First Brands back to the Off-Sheet Lenders as collateral for their loans.  At the direction of PATRICK JAMES, the defendant, the inventory financing arrangements with the James Entities were maintained outside the First Brands corporate balance sheet and thereby concealed from First Brands’ senior lenders, who routinely requested and received First Brands’ financial statements.  To further obscure the Off-Sheet Lenders as a source of funds to First Brands, PATRICK JAMES routed the loan proceeds from the Off-Sheet Lenders through a customer collections entity maintained outside the First Brands corporate structure, then disbursed the proceeds to First Brands subsidiaries before sweeping the funds into First Brands’ operating account.  The defendants designed this flow of funds so that the funds appeared to be ordinary customer receipts from retail subsidiaries rather than loan proceeds from related-party financing arrangements with the James Entities.

Finally, at the direction of PATRICK JAMES and EDWARD JAMES, First Brands made false and misleading representations to the Off-Sheet Lenders to fraudulently induce them to extend and expand financing.  The James Entities pledged inventory that PATRICK JAMES and EDWARD JAMES, the defendants, purported to be unencumbered but in fact was already subject to liens by, or otherwise pledged to, First Brands’ senior lenders and remained on First Brands’ balance sheet.

By 2025, after years of acquisitions and expansion using fraudulently obtained financing, First Brands faced overwhelming liabilities and unsustainable cash requirements.  In 2025, PATRICK JAMES and EDWARD JAMES, the defendants, led efforts to refinance First Brands’ debt or to sell the company, including through last-ditch attempts to deceive lenders and potential acquirers by disseminating false financials.  These efforts failed when First Brands was unable to provide the prospective counterparties with the financial diligence they sought. On September 28, 2025, First Brands filed for bankruptcy.

Even as the frauds unraveled and First Brands’ financial issues mounted, PATRICK JAMES, the defendant, continued to enrich himself as the owner of First Brands.  Through the series of frauds he directed, PATRICK JAMES caused billions of dollars in gross proceeds to flow into First Brands from counterparties and received at least hundreds of millions of dollars in gross proceeds into his personal accounts.

*               *                *

A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached.

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

Mr. Clayton praised the outstanding work of the FBI, IRS-CI, and HSI.  Mr. Clayton further thanked the Northern Ohio Money Laundering Task Force.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Nicholas W. Chiuchiolo, Marguerite B. Colson, Peter J. Davis, and Sarah Mortazavi, and Special Assistant United States Attorney Michael L. Collyer are in charge of the prosecution. 

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

United States v. Patrick James and Edward James, 26 Cr. 29 (AT)

Continuing Financial Crimes Enterprise, 18 U.S.C. § 225

(Count One)

Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349

(Count Two)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Four)

Bank Fraud, 18 U.S.C. § 1344 (Count Five)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Six)

Bank Fraud, 18 U.S.C. § 1344 (Count Seven)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Eight)

Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Nine)

Life

30 years

30 years

30 years

30 years

30 years

30 years

30 years

20 years

Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349

(Count Two)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Four)

Bank Fraud, 18 U.S.C. § 1344 (Count Five)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Six)

Bank Fraud, 18 U.S.C. § 1344 (Count Seven)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Eight)

Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Nine)

30 years

30 years

30 years

30 years

30 years

30 years

30 years

20 years

United States v. Peter Andrew Brumbergs, 26 Cr. 25 (AT)

Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349

(Count One)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Two)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three)

Bank Fraud, 18 U.S.C. § 1344 (Count Six)

(Count Four)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1349

(Count Five)

Bank Fraud, 18 U.S.C. § 1344 (Count Six)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Seven)

Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Eight)

30 years

30 years

30 years

30 years

30 years

30 years

30 years

20 years

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

On January 27, 2026, over 100 federal, state, and local law enforcement officials gathered at the Orange County Government Center to discuss their efforts to combat crime on behalf of the people of New York.  Participants included, among many others, the U.S. Attorneys for the Southern and Northern Districts of New York, leaders of the Federal Bureau of Investigation (“FBI”), Homeland Security Investigations (“HSI”), the Drug Enforcement Administration (“DEA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), District Attorneys and Sheriffs from Albany County, Rockland County, Orange County, Westchester County, Dutchess County, Greene County, and Rensselaer County, and senior leaders of the New York State Police. 

The presentations and discussions focused on combining resources across offices and departments to combat the greatest threats to the quality of life and safety of the good people of the Hudson Valley.  Areas identified as requiring a collective effort included:

• Removing gun-toting career criminals from our streets;
• Dismantling sophisticated narcotics production and distribution enterprises, including the violent transnational gangs that have invaded communities across the Hudson Valley;
• Protecting our children from sexual predators.  

Several case studies involving multi-agency efforts that led to highly successful prosecutions were discussed with an eye toward greater cooperation in the future.  The participants also discussed community engagement and community priorities, including “hot spots” where the need for a combination of federal, state, and local resources is most acute.  

“It is invaluable to hear directly from our state and local partners,” said U.S. Attorney for the Southern District of New York Jay Clayton.  “Our principal objective is to deliver a better quality of life, including safe streets, for the people of the Hudson Valley, and we can best achieve that objective if we work in concert with our state and local partners.  Together, we have brought—and will continue to bring—our most violent and most dangerous criminals to justice.”

“Public safety does not stop at district or county lines,” said Acting United States Attorney for the Northern District of New York John A. Sarcone III.  “This symposium underscores the power of strong partnerships among federal, state, and local law enforcement to confront the most serious threats facing our communities—violent crime, narcotics trafficking, and the exploitation of children.  By sharing intelligence, coordinating resources, and aligning our priorities, we are better positioned to dismantle criminal organizations, protect the most vulnerable, and deliver real results for the people we serve.”

“Drugs, guns, and violent crime are endemic public safety concerns that know no boundaries,” said Orange County District Attorney David M. Hoovler. “In order to best protect the residents of Orange County from these ever-present dangers, we must work with our law enforcement partners, near and far.  I am grateful not only for all of the law enforcement professionals who attended the symposium, but also for the commitment to work together to serve the residents of the Hudson Valley.  This historic event highlights the importance of collaboration in effective law enforcement in the 21st century.”

“This meeting was a tremendous opportunity to gather officials from federal, state, and local law enforcement agencies to share information and ideas on how we can leverage our resources to identify, investigate, and bring to justice the dangerous criminals bringing harmful narcotics and weapons into our communities,” said Special Agent in Charge of the FBI Albany Field Office Craig Tremaroli.  “I’m incredibly grateful to all the partners who made the time to attend this important discussion, and I look forward to working together to achieve our shared goal of keeping all our communities safe.”

“DEA New York remains steadfast in our commitment to working alongside our federal, state, and local law enforcement partners to target those looking to distribute illicit narcotics throughout the Hudson Valley region,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam.  “These symposiums provide us the opportunity to gather and collaborate with our partners, which helps strengthen our resolve to enhance public safety and helps protect our communities from drug poisonings which are harming our neighbors.”

“HSI New York was honored to stand shoulder-to-shoulder with our fellow law enforcement leaders at the Hudson Valley Law Enforcement Symposium, united by our shared commitment to protecting our communities,” said HSI New York Acting Special Agent in Charge Michael Alfonso.  “Bringing together the strength and expertise of federal, state, and local partners is how we turn the tide against violent crime, drug traffickers, and those who prey on our children.  When we unite our resources and resolve, we deliver real results—making the Hudson Valley a safer place for every New Yorker.”

“We appreciate our U.S. Attorneys for hosting and participating in this collaborative effort,” said Special Agent in Charge of ATF’s New York Division Bryan DiGiralamo.  “ATF’s Crime Gun Intelligence, when combined with strong partnerships across all levels of law enforcement, enhances investigations and plays a critical role in reducing violent gun crime and keeping our communities safe.”

“Special thanks to our United States Attorneys for the Southern and Northern Districts of New York, and the Orange County District Attorneys’ Office, for bringing together our federal, state and local law enforcement partners for this meeting,” said DEA Northeast Regional Associate Chief of Operations Frank Tarentino.  “The DEA is committed to working with all our law enforcement partners across the region in targeting those drug trafficking organizations and individuals who are responsible for the most harm.  This is the DEA’s focus, both here and abroad, and we will continue this fight until we have a fentanyl-free America.”  

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, Assistant Director in Charge of the FBI New York Field Office, James C. Barnacle, Jr., and Commissioner of the New York City Police Department, Jessica S. Tisch, announced that CARLISLE RIVERA, a/k/a “Pop,” was sentenced today to 15 years in prison for his participation in a murder-for-hire plot directed by the Government of Iran targeting Masih Alinejad, a journalist, author, and human rights activist.  RIVERA previously pled guilty to one count of conspiracy to commit murder-for-hire and one count of conspiracy to commit stalking before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.

“The Government of Iran, a sponsor of terrorism, assassination, and espionage around the globe, has engaged in a campaign of assassination plots in the United States and abroad targeting those who oppose the regime,” said U.S. Attorney Jay Clayton.  “The Government of Iran hired Rivera through an associate living in Iran to locate and murder Masih Alinejad in cold blood, right here in New York City.  The Government of Iran has long sought to murder Ms. Alinejad, a U.S. citizen residing in New York City, because of her efforts to stand up to the Iranian regime and expose its discriminatory treatment of women, corruption, and human rights abuses.  Today’s sentence should be a warning to anyone who would cast their lot with the brutal Iranian regime and seek to do their murderous bidding, especially on American soil:  You will be stopped, you will be arrested, and you will be brought to justice.”

“Today’s sentence underscores the consequences of conspiring with a regime that relies on violence and intimidation to survive,” said Assistant Attorney General for National Security John A. Eisenberg.  “The National Security Division will continue to work tirelessly with its partners to detect and protect against such plots and to hold accountable those who try to achieve the vile ends of the Iranian regime.”

“The Iranian government repeatedly targeted a journalist and human rights activist living in New York, but thanks to the good work of the FBI and our partners those efforts failed,” said FBI Assistant Director Donald Holstead. “Today's sentencing sends a strong message that anyone who conspires with foreign powers to harm people living in the United States will be held accountable.”

“The Iranian government enlisted a convicted killer to stalk and murder an American journalist and activist, Masih Alinejad, in an effort to forever silence her vocal criticism of its regime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Carlisle Rivera served as a hired gun to facilitate the political assassination attempt ordered by an international adversary.  May today’s lengthy sentence reflect the FBI’s unwavering stance against any domestic or foreign actor seeking to target our nation’s residents for nefarious agendas.”

“The defendant in this case showed a pitiless, calculated disregard for human life—and today’s sentencing is the culmination of a coordinated, comprehensive effort to bring him and his co-conspirators to justice,” said NYPD Commissioner Jessica S. Tisch.  “The plot to murder Masih Alinejad, directed by the government of Iran and its terrorist proxy, is further proof that the work of our Joint Terrorism Task Force is as important and relevant as ever.  I want to thank all of our federal, state, and local law enforcement partners for their work on this critical, wide-ranging case.”

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

In 2024, RIVERA was hired by his 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 to kill Ms. Alinejad.

RIVERA and SHAKERI were incarcerated together in the New York State prison system after RIVERA’s 1994 conviction for murder and SHAKERI’s 1991 conviction for manslaughter.  In 2024, SHAKERI was living in Iran and was an IRGC asset. SHAKERI offered RIVERA $100,000 to locate and kill Ms. Alinejad, and RIVERA agreed.  RIVERA then recruited his friend, co-defendant JONATHAN LOADHOLT, to assist him in the murder plot.  Using money sent by SHAKERI, RIVERA and LOADHOLT purchased a firearm and “burner” cellphones.  The two men then spent several months attempting to find and kill Ms. Alinejad, including by following her to a public speaking event and repeatedly stalking the Brooklyn house where SHAKERI and the IRGC believed Ms. Alinejad lived.  

During their efforts to locate and kill Ms. Alinejad, RIVERA and his co-conspirators shared messages about their progress and photographs relating to their murder plot.  For example, in or about February 2024, RIVERA and LOADHOLT 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 April 2024, RIVERA and his co-defendants exchanged a series of voice notes discussing their efforts to locate and kill Ms. Alinejad. In one voice note, RIVERA told SHAKERI that Ms. Alinejad was “hard to catch, bro.  And because she hard to catch, there ain’t gonna be no simple pull up, unless there[’s] the luck of the draw.”  In a subsequent voice note, RIVERA referred to the “slammer,” meaning a firearm he had obtained to kill Ms. Alinejad.

On November 7, 2024, before he could complete his plan to kill Ms. Alinejad, RIVERA was arrested. At RIVERA’s residence, law enforcement agents recovered, among other things, a firearm with a partially obliterated serial number.

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In addition to the prison term, RIVERA, 50, was sentenced to three years of supervised release.

In January 2026, LOADHOLT pled guilty to one count of conspiracy to commit stalking and one count of conspiracy to commit money laundering.  LOADHOLT is scheduled to be sentenced by Judge Liman in April 2026.  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, as well as the Counterterrorism Section of Department of Justice’s National Security Division. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that EDWARD GENE SMITH pled guilty today before U.S. District Judge Paul A. Engelmayer to drugging a female victim (“Victim-1”) with the intent to rape her, enticing another female victim (“Victim-2”) to travel to New York where SMITH drugged and sexually assaulted her, receipt of child pornography, and obstruction of justice. SMITH also admitted to additional conduct relating to other victims.  SMITH is scheduled to be sentenced by Judge Engelmayer on May 8, 2026.

“Edward Gene Smith is a predator,” said U.S. Attorney Jay Clayton.  “He used money, access, and his influence in our community to identify, lure, drug, and sexually assault young women.  He trafficked in images of child sexual abuse.  He thought he could evade the law by paying a victim to sign a false statement.  This case sends two messages: there is no place in New York for sexual predators, and those who seek to obstruct justice will be brought to justice.”

According to the allegations in the Superseding Indictment, admissions the defendant has made in connection with the plea, public documents, and statements made in court:

Between approximately 2015 and June 2024, SMITH, who was during that approximate time period a senior executive of major financial institutions, planned to drug, attempted to drug, and/or drugged numerous women with the intent to incapacitate them and/or render them unable to consent to sexual activity.  SMITH did, in fact, engage in sexual activity with multiple of these women, and, in at least some cases, surreptitiously took videos or photographs of his criminal sexual activity.

At least on or about April 23, 2023, SMITH drugged and raped Victim-1 in his Central Park South residence.  Specifically, unbeknownst to Victim-1, SMITH gave Victim-1 one or more alcoholic beverages that he had laced with Klonopin, a controlled substance.  After Victim-1 consumed the drugged drink, SMITH physically restrained Victim-1 and raped her while she was unconscious.  While Victim-1 was still unconscious, SMITH also took a video of himself sexually assaulting Victim-1, and then shared that video with others via an encrypted messaging platform, on a channel that was dedicated to sharing depictions of incapacitated or unconscious women in sexually exploitative positions.

Previously, between in or about 2019 and in or about 2020, SMITH repeatedly drugged and sexually assaulted Victim-2. SMITH met Victim-2 in 2019 when Victim-2 was a college student and persuaded Victim-2 to relocate to New York City, which she did.  SMITH thereafter controlled Victim-2’s finances, social life, and activities, and repeatedly drugged and sexually assaulted Victim-2 over the course of several months.  During this time period, SMITH caused Victim-2 to engage in sexual activity through coercion and force, including threatened and physical assault and physical restraint.  Additionally, SMITH informed Victim-2 of one or more firearms that he possessed and showed Victim-2 at least one such firearm.

In or about the fall of 2021, SMITH communicated with another victim (“Victim-3”), who was then 17 years old.  SMITH followed a similar pattern with Victim-3.  While Victim-3 was still 17 years old, SMITH solicited explicit photographs from Victim-3.  Shortly after Victim-3 turned 18 years old, SMITH caused Victim-3 to travel to New York City, attempted to drug Victim-3, and then physically and sexually assaulted her. In or about October 2023, SMITH caused Victim-3 to travel to New York City again, which she did, and drugged and sexually assaulted her.  Around this time, SMITH also posted Victim-3’s photographs and personal contact information to a website advertising prostitution services, without Victim-3’s knowledge.

Between approximately 2012 and June 2024, SMITH also received via the internet and possessed a large volume of images and videos on his personal devices that depicted children, including prepubescent children, being sexually abused.

In or about August 2024, after a search warrant was executed at SMITH’s residence, revealing that SMITH possessed child pornography on his electronic devices, SMITH paid Victim-1 thousands of dollars to sign a false document in an attempt to obstruct the investigation.  Also in or about August 2024, SMITH solicited other individuals to sign false documents in an attempt to obstruct the investigation.

If you have been victimized by SMITH in any way or have any additional information about his illegal behavior, please call the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI.

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SMITH, 50, of New York, New York, was arrested on September 10, 2024 and has been detained since January 8, 2025. SMITH pled guilty to one count of distribution of a controlled substance with intent to commit rape, which carries a maximum sentence of 20 years in prison; one count of enticement to travel to engage in unlawful sexual activity, which carries a maximum sentence of 20 years in prison; one count of receipt of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison; and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.

The mandatory minimum and maximum sentences described above are prescribed by Congress and are provided here for informational purposes only, as the 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 General Crimes Unit.  Assistant U.S. Attorneys Remy Grosbard, Rita Maxwell, Daniel Richenthal, and Joe Zabel are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.

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”), Terence G. Reilly, announced today the unsealing of an Indictment charging ALAZIM BAKER with two counts of committing hate crimes in connection with his assaults of Jewish victims in Manhattan on October 27, 2025.  BAKER was arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah Netburn.  The case is assigned to U.S. District Judge Arun Subramanian. 

“As alleged, Alazim Baker deliberately targeted Jewish victims with violence,” said U.S. Attorney Jay Clayton.  “Violence motivated by antisemitism or any other anti-faith bias has no place in this great city.  Our collective strength as a city is the result of mutual respect for each other’s beliefs and rule of law.  The women and men of our Office are dedicated to protecting life, property and faith.”

“Alazim Baker allegedly committed despicable hate crimes against multiple members of the Jewish community,” said FBI Assistant Director in Charge Terence G. Reilly.  “Hate crimes like those in this indictment tear at the fabric of our communities.  The FBI remains dedicated to holding perpetrators of these offenses accountable to deliver justice for victims and reaffirm to the American people that targeted violence will not be tolerated.”

According to the allegations in the Indictment, other public filings, and statements previously made on the record in this case:[1]

On October 27, 2025, BAKER approached a visiting Israeli rabbi (Victim-1) while Victim-1 was walking on the block of a well-known kosher restaurant in Manhattan.  BAKER repeatedly and aggressively asked Victim-1, “What is your religion?”  When they approached the restaurant, BAKER refused to let Victim-1 enter.  BAKER then grabbed Victim-1’s yarmulke and threw it on the floor.  He then stomped on the yarmulke and spit on it before punching Victim-1 in the face.  The punch caused Victim-1 to fall to the ground and into the bike lane.  While Victim-1 was lying on the ground and bleeding, Baker yelled toward Victim-1, in sum and substance: “let me spit on that Jew.” The punch left bruises on Victim-1’s face and knee and resulted in Victim-1 suffering a brain bleed. 

BAKER also made antisemitic statements to two individuals who sought to intervene to help Victim-1—both of whom were wearing yarmulkes.  BAKER yelled, in sum and substance: “your people own everything,” “I want my reparation,” and “I’m going to jail today.”  BAKER punched one of the intervening individuals (Victim-2) in the head, causing pain and swelling for several days.  The other individual (Victim-3) observed brass knuckles on BAKER’s hand.  After punching Victim-2, BAKER aggressively pursued Victim-3, who collided with a large, hard object while evading BAKER.  The collision caused serious swelling and bruising on Victim-3’s leg for several days. During this part of the interaction, Victim-1 ran for safety into the restaurant.

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BAKER, 29, of Irvington, New Jersey, is charged with two counts of committing hate crimes, each of which carries a maximum sentence of 10 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI and thanked the Manhattan District Attorney’s Office, the New York City Police Department, and the Port Authority Police Department for their assistance.

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 Sam Adelsberg and Emily A. Johnson are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Vanessa Tibbits, announced an Indictment charging CORNELL NEILLY in connection with a pattern of bank robberies and attempted bank robberies of six Manhattan banks between August and October of 2025.  NEILLY is currently in federal custody on allegations that he violated the conditions of supervised release imposed in a prior federal case and is expected to be presented today before U.S. Magistrate Judge Stewart D. Aaron.  The case is assigned to U.S. District Judge Jed S. Rakoff.

"As alleged, Cornell Neilly robbed or attempted to rob six banks in multiple neighborhoods across Manhattan,” said U.S. Attorney Jay Clayton.  “Hardworking New Yorkers, including the tellers and customers at these six banks, deserve to go to work without worrying that they will become victim to this type of brazen conduct.  And New York families should not have to fear for their safety on New York streets.  The women and men of this Office will continue to work tirelessly with our law enforcement partners to keep our communities safe.”

“Cornell Neilly is charged with attempting to rob six banks across Manhattan by demanding cash from their tellers,” said FBI Acting Assistant Director in Charge Vanessa Tibbits.  “This alleged spree is a bank employee’s worst nightmare.  Preying on fear to satiate one’s own greed will not be tolerated.  Along with our law enforcement partners, the FBI remains steadfast in disrupting any serial criminal targeting our city’s financial institutions.” 

As alleged in the Indictment and in public statements made in public court proceedings:[1]

Between August and October of 2025, NEILLY robbed or attempted to rob six banks across Manhattan, including in Chelsea, the West Village, and just north of Madison Square Park.  At each bank, NEILLY handed a teller a note demanding specific amounts of United States currency.  NEILLY took thousands of dollars from three banks whose tellers complied with his demands.   

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NEILLY, 34, of New York, New York, is charged with three counts of bank robbery and three counts of attempted bank robbery, each of which carries a maximum sentence of 20 years in prison. 

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

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

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

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, Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., and Commissioner of the New York City Department of Investigation (“DOI”), Jocelyn E. Strauber, announced today the unsealing of an Indictment charging ANTHONY HERBERT—the former Citywide Public Housing Liaison at the New York City Mayor’s Office—with committing bribery, kickback, and fraud offenses.  HERBERT was arrested this morning and will be presented today before U.S. Magistrate Judge Stewart D. Aaron.  The case is assigned to U.S. District Judge Valerie E. Caproni.

“New Yorkers deserve honest and competent public officials,” said U.S. Attorney Jay Clayton.  “As alleged, at a time when Anthony Herbert was serving as City Hall’s liaison to the City’s public housing residents, he engaged in blatant pay-to-play schemes to enrich himself.  The women and men of the Southern District of New York are committed to holding accountable government officials who abuse their positions of trust to benefit themselves.”

“It’s alleged Anthony Herbert used his position in the NYC Mayor’s Office to create a side hustle of bribery and fraud,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “He allegedly took advantage of his role to line his pockets by offering unfair advantages to certain businesses.  Today’s indictment is the result of the incredible partnership between IRS-CI special agents and SDNY investigators, and now Herbert will face justice for his alleged criminal acts.” 

“This former Mayor’s Office official was responsible for engaging with members of the community on behalf of the Mayor’s Community Affairs Unit, first as the Brooklyn Borough Director and then as the liaison between residents and leadership of public housing, and City Hall,” said DOI Commissioner Jocelyn E. Strauber.  “He allegedly exploited this position of trust and influence to enrich himself, accepting $16,000 in bribes and kickbacks in return for favors, including pressuring other government officials to give City contracts to one company, and steering publicly-funded financial assistance payments to a second business, according to the indictment.  As charged, he allegedly filed false financial disclosures with the City omitting the payments he received to conceal his criminal conduct.  I thank the IRS and the United States Attorney’s Office for the Southern District of New York for their partnership on this investigation and for their commitment to hold accountable City employees who abuse their position for their own gain.”

As alleged in the Indictment:[1]

From in or about February 2022 through in or about September 2025, HERBERT worked for the Office of the New York City Mayor’s Community Affairs Unit (“Community Affairs”) within City Hall.  In that capacity, HERBERT first functioned as the Brooklyn Borough Director for Community Affairs from in or about February 2022 through in or about February 2023, and then as the Citywide Public Housing Liaison until in or about September 2025.  In the latter role, HERBERT was responsible for engaging with residents and leadership of the New York City Housing Authority (“NYCHA”) on behalf of City Hall.

HERBERT abused his position repeatedly and flagrantly by soliciting and receiving bribes and kickbacks in exchange for HERBERT’s agreement to advise and pressure other City officials to take actions benefiting those who paid HERBERT bribes and kickbacks, in two distinct schemes.

In the first scheme, HERBERT solicited and received from a particular individual (the “Security Company Executive”) thousands of dollars in cash payments in exchange for HERBERT advising and pressuring other City officials to award the Security Company Executive’s security guard company with City contracts, including for providing services at NYCHA developments.

In the second scheme, HERBERT advised, pressured, and fraudulently induced other City officials to approve payments to a director of a particular funeral home (the “Funeral Home Director”) under a financial assistance program for burial services for low-income families, in exchange for thousands of dollars in kickbacks from the proceeds of those reimbursement payments from the Funeral Home Director.             

Finally, in or about April 2021, HERBERT submitted a fraudulent loan application—on behalf of a fictitious baked goods company he claimed to operate—to induce a bank to issue HERBERT a $20,418 loan pursuant to the federal Paycheck Protection Program that was established in response to the COVID-19 pandemic. 

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HERBERT, 61, of Brooklyn, New York, is charged with two counts of bribery, each of which carries a maximum sentence of 10 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of federal program fraud, which carries a maximum sentence of 10 years in prison; one count of extortion under color of official right, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of IRS-CI, DOI, and the Special Agents and Task Force Officers of the United States Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Catherine Ghosh and Daniel H. Wolf are in charge of the prosecution.

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

[1] As the introductory phrase signifies, the entirety of the 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 Administrator of the Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced that Carlos Orense Azocar was sentenced to life plus 30 years in prison for conspiring to import cocaine into the United States and related weapons charges.  ORENSE AZOCAR was convicted after a two-week trial in December 2023 before U.S. District Judge Vernon S. Broderick, who imposed today’s sentence.

“Carlos Orense Azocar is one of the most prolific cocaine traffickers ever sentenced in this courthouse, responsible for the distribution of hundreds of tons of cocaine to the United States,” said U.S. Attorney Jay Clayton.  “Orense Azocar and his co-conspirators, including high-ranking government and military officials, inflicted incalculable damage on this community. Alongside our partners at the Bilateral Investigations Unit of the DEA’s Special Operations Division, we are committed to ending the exploitation of the American people by drug cartels and the governments who enable them.”

“Carlos Orense Azocar was a criminal kingpin who built an empire on deception, fraud, and bribery,” said DEA Administrator Terrance C. Cole.  “Orense Azocar’s close ties to the Venezuelan government provided resources to help him evade law enforcement and move massive shipments of cocaine across the Western Hemisphere.  Today's sentence sends a clear message: DEA will relentlessly pursue and hold international drug traffickers accountable, no matter how far they run or how powerful they believe themselves to be.”

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

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

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

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Mr. Clayton praised the outstanding investigative work of the Drug Enforcement Administration’s Special Operations Division Bilateral Investigations Unit, Rome Country Office, and Miami Field Division, as well as the SDNY Digital Forensics Unit and the U.S. Department of Justice’s Office of International Affairs for securing the arrest and June 2022 extradition from Italy of Orense Azocar.  Mr. Clayton additionally thanked the Government of Italy for its assistance extraditing ORENSE AZOCAR to the United States.

This case is being handled by the Office’s National Security & International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky, Michael D. Lockard, and Kevin T. Sullivan 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”), Christopher G. Raia, announced today that PAUL JORGENSEN pled guilty to 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.  JORGENSEN pled guilty today before U.S. District Judge Katherine Polk Failla.  

“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.  “Corporate executives should be working for the benefit of the companies and shareholders they serve, not scheming to line their own pockets by trading on inside information.  Together with our law enforcement partners, we will continue to protect our financial markets and prosecute those who misuse non-public information.” 

“Paul Jorgensen repeatedly leveraged nonpublic information to conduct illegal trades from an unauthorized personal account, garnering millions of dollars in illicit proceeds,” said FBI Assistant Director in Charge Christopher G. Raia.  “The defendant’s actions greatly exploited his position of trust for his own personal gain, even as he learned he was likely to be terminated from the company.  May today’s plea emphasize the FBI’s commitment to protect companies from internal executives who prioritize personal wealth over their duty to company shareholders.”

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

JORGENSEN engaged in a scheme to reap illegal profits by trading on material non-public 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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JORGENSEN, 53, of Charlotte, North Carolina, pled guilty to two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison.           

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that RICKI RICKALINE GIBBS was sentenced by U.S. District Judge Kenneth M. Karas to 51 months in prison for perpetrating a multi-year scheme to defraud elderly victims across the United States, which resulted in losses of over $1.6 million to more than 20 victims.  GIBBS pled guilty in September 2025 before U.S. Magistrate Judge Judith C. McCarthy to conspiracy to commit wire fraud and mail fraud.

“Fraudsters who prey on our most vulnerable must be brought to justice,” said U.S. Attorney Jay Clayton. “Today’s sentence reinforces that message.”

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

From at least 2019 through at least 2023, GIBBS and others engaged in a fraud scheme perpetrated against elderly victims (the “Elder Fraud Scheme”), through which GIBBS and her co-conspirators defrauded more than 20 elderly victims of more than $1.6 million.  Victims of the Elder Fraud Scheme typically received an unsolicited phone call or text from an individual using a common name—e.g., “Robert James,” “Robert Hill,” or “Mark Miller”—claiming they had won a life-changing amount of money and a luxury car, but needed to pay taxes or fees to addresses and accounts specified by the caller before receiving the prize.  The caller then remained in contact with the victims and, after the victims made their initial payments as directed, informed the victims that additional payments were required to receive their purported winnings.  In particular, victims were instructed to send money by mailing checks, money orders, Vanilla Visa gift cards, and cash concealed in books, as well as by wire and Zelle transfer, to addresses and accounts identified by the caller.  After luring in victims with the sweepstakes lie, the perpetrators of the Elder Fraud Scheme also used romance scam tactics to induce victims to continue making payments.

Of the more than $1.6 million lost by victims of the Elder Fraud Scheme, at least $1,379,402 went to Gibbs, or accounts belonging to or controlled by Gibbs.  Gibbs, a dual citizen of Jamaica and the United States, participated in the scheme from both New York and Jamaica, alongside co-conspirators based in Jamaica. Gibbs used proceeds obtained from victims to, among other things, fund a clothing business she started called “Fairy’s Crown” and make numerous purchases of luxury items.

After her arrest, Gibbs twice met with federal law enforcement officers and falsely denied participating in the Elder Fraud Scheme and claimed to be a victim of the scheme.  For example, on each occasion, Gibbs falsely told law enforcement officers that she had received calls from men named “Simon” and “Peter” saying that she had won an $8.5 million prize and that she was given instructions to pay taxes required to receive the money.  Gibbs also falsely stated that she believed the money she had received from actual victims of the Elder Fraud Scheme was money from “sponsors” who were helping her pay taxes to obtain her sweepstakes prize.

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In addition to the prison term, GIBBS, 31, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay forfeiture of $1,018,703, and restitution of $1,379,402.

Mr. Clayton praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service – Criminal Division.  Mr. Clayton also thanked the New York Field Office of U.S. Customs and Border Protection for their assistance in the investigation.

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