Southern District of New York
Press releases recorded for this federal judicial district.
Statement on the Verdict in U.S. V. Sean CombsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, on the verdict in U.S. v. Sean Combs:
Sex crimes deeply scar victims, and the disturbing reality is that sex crimes are all too present in many aspects of our society. Victims endure gut-wrenching physical and mental abuse, leading to lasting trauma. New Yorkers and all Americans want this scourge stopped and perpetrators brought to justice.
Prosecuting sex crimes requires brave victims to come forward and tell their harrowing stories. We and our law enforcement partners recognize the hardships victims endure and have prioritized a victim-centered approach to investigating and prosecuting these cases.
Today we recognize the important work of the SDNY’s Civil Rights Unit as well as the tireless efforts of the women and men at HSI who are devoted to combatting human trafficking. We thank the Special Agents from the U.S. Attorney’s Office of the Southern District of New York, Digital Forensic Unit and the Complex Analytics and Social Media Enhancement (CASE) Team at the New York/New Jersey High Intensity Drug Trafficking Area. We would also like to thank our partners at the NYPD for their assistance in this matter and for sharing our victim-centered approach to combatting sex crimes.
Doctor Arrested for Multimillion-Dollar COVID-19 Insurance SchemeRead the Press Release
The Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, Sean Buckley, and the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced the arrest of ALI RASHAN on charges of health care fraud. As alleged in a five-count Indictment unsealed on June 25, 2025, RASHAN, a medical doctor, was the CEO and founder of ClearMD, a provider of COVID-19 testing services in New York City which fraudulently billed insurance companies for approximately $24 million for COVID-19 testing and submitted fraudulent medical records in furtherance of this fraudulent scheme. RASHAN was presented before U.S. Magistrate Judge Barbara Moses on June 25 and the case has been assigned to Judge Paul A. Engelmayer.
“While New Yorkers were doing their best to get through a public health crisis, Ali Rashan was allegedly cashing in on it,” said Attorney for the United States Sean Buckley. “Our Office will not tolerate those who exploit the city’s pandemic response for personal profit.”
“Ali Rashan allegedly facilitated an elaborate scheme using fabricated medical records to steal more than $24 million,” said FBI Assistant Director in Charge Christopher G. Raia. “This defendant allegedly violated his dual authorities as a medical doctor and CEO to receive reimbursement from thousands of illegitimate claims. The FBI remains dedicated to investigating any individual who selfishly exploits our health care system for their personal benefit.
According to statements made in court and publicly filed documents in this case:[1]
From at least 2021 until in or about 2023, RASHAN, the founder and owner of ClearMD, a provider of medical testing services, agreed to submit and caused to be submitted to insurers fraudulent claims that billed for unperformed and unrequested services purportedly provided to patients who sought testing for COVID-19 and fraudulent medical records in support of these fraudulent claims. For example, RASHAN directed ClearMD to submit or cause the submission of thousands of claims that billed for evaluation and management (“E/M”) services that were never performed. Furthermore, at times during the relevant period, RASHAN directed ClearMD to submit claims to insurers billing for two to four COVID-19 testing codes, even though ClearMD had administered only a single COVID-19 test to patients. Thereafter, in response to requests from insurers for documentation supporting its claims for reimbursement, RASHAN instructed ClearMD staff to write a software program to generate false medical records to support ClearMD’s fraudulent billings. RASHAN directed ClearMD to submit these fabricated medical records to insurers to deceive them about the services that ClearMD had provided and to justify ClearMD’s retention of amounts paid to ClearMD in response to fraudulent claims. This scheme resulted in losses of at least approximately $24 million.
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RASHAN, 41, of New York, New York, is charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison; and one count of false statements relating to health care matters, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Buckley praised the outstanding investigative work of the FBI. Mr. Buckley also thanked the Office of Personnel Management’s Office of Inspector General and the U.S. Department of Labor, Employee Benefits Security Administration for their assistance in this investigation.
The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15.6 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. In connection with this nationwide health care fraud takedown, the Government seized over $245 million in cash, luxury vehicles, and other assets.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran, Timothy Capozzi, and Jaclyn Delligatti are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
u.s._v._rashan_indictment.pdfTwo Men Charged in HIV Medication Fraud and Identity Theft SchemeRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, and the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the unsealing of a Complaint charging JOSUE TORRES and ANTHONY GUERRA with participating in a scheme to obtain high-cost medications for HIV and other illnesses by causing fraudulent prescriptions to be issued using the stolen identities of medical practitioners and those practitioners’ purported patients. TORRES and GUERRA were arrested on June 17, 2025, and presented before U.S. Magistrate Judge Henry J. Ricardo.
“As alleged, the defendants stole the identities of doctors and patients to convert valuable, life-saving medications into a source of illicit profits,” said U.S. Attorney Jay Clayton. “By feeding the black market for prescription medications, the defendants’ alleged crimes endangered the safety of patients and undermined the integrity of our health care system. Together with our partners at the FBI, we are committed to bringing to justice those who seek to profit by defrauding pharmacies, drug manufacturers, distributors, and insurers.”
“Josue Torres and Anthony Guerra allegedly procured and resold hundreds of illegitimate prescriptions through unauthorized access to pharmaceutical databases and copay assistance,” said FBI Assistant Director in Charge Christopher G. Raia. “These defendants allegedly exploited private medical information of both practitioners and patients to perpetuate this elaborate scheme. The FBI remains committed to apprehending any individual who steals medications for illicit black-market profits.”
According to the allegations in the Complaint:[1]
From at least in or about August 2021 through the present, TORRES and GUERRA participated in a scheme to cause fraudulent prescriptions to be issued for certain high-cost prescription medications (the “High-Cost Medications”) used to treat HIV and other diseases, and to obtain those High-Cost Medications by picking them up at pharmacies or by having them shipped to a physical address.
TORRES accessed accounts on e-prescribing platforms using the names and other identifying information of certain physicians and other medical practitioners (the “Targeted Practitioners”) without the Targeted Practitioners’ authorization or knowledge. TORRES and GUERRA then used the e-prescribing platforms to cause High-Cost Medication prescriptions (the “Fraudulent Prescriptions”) to be issued for certain individuals who did not require those medications (the “Sham Patients”). The image below shows TORRES picking up HIV medication issued to a Sham Patient on or about December 30, 2022.
TORRES and GUERRA secured significantly reduced copay amounts for the High-Cost Medications associated with the Fraudulent Prescriptions through the use of copay assistance programs, with copay assistance cards that bore the names of the Sham Patients. In some cases, a Sham Patient’s private health insurance provider paid out money to cover a portion of the cost of a High-Cost Medication.
In total, TORRES, GUERRA, and other co-conspirators caused approximately 693 Fraudulent Prescriptions, including prescription refills, to issue from approximately 18 Targeted Practitioners. Those Fraudulent Prescriptions contained approximately 55,626 tablets, capsules, or other units of medication, worth approximately $2,638,581.[1]
TORRES and GUERRA went on to sell the High-Cost Medications, which have significant resale value on the black market.
Below are texts messages from 2021 between TORRES (messages with green background) and GUERRA (messages with grey background).
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TORRES, 45, of Brooklyn, New York, and GUERRA, 37, of the Bronx, New York, are charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutive to any other prison term.
The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Clayton praised the outstanding work of the FBI in connection with this investigation.
The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15.6 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. In connection with this nationwide health care fraud takedown, the Government seized over $245 million in cash, luxury vehicles, and other assets.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Henry Ross is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._torres_et_al_complaint.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] The approximate total value of the Fraudulent Prescriptions was calculated by multiplying the number of prescription and prescription refills for a given High-Cost Medication by the national average drug acquisition cost, or “NADAC,” of that medication, as of in or about 2023. NADACs are published by the Centers for Medicare & Medicaid Services at: https://www.medicaid.gov/medicaid/nadac.
Leader of Yoga to the People Sentenced to Four Years for Tax Evasion SchemeRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, announced today that GREGORY GUMUCIO was sentenced to four years in prison for participating in a conspiracy to commit tax evasion from 2012 to 2020. GUMUCIO was the longtime leader of a prominent nationwide yoga business, Yoga to the People (“YTTP”), from which he made nearly $3.5 million in income between 2012 and 2020 yet did not file individual (or business) tax returns or pay any income taxes for at least eight consecutive years. GUMUCIO pled guilty on October 4, 2024, before U.S. District Judge John P. Cronan, who imposed today’s sentence.
“Gregory Gumucio built a profitable yoga empire and lived well off its success—but he refused to pay his taxes,” said U.S. Attorney Jay Clayton. “Hard-working, tax-paying New Yorkers want our Office to pursue business owners who game the tax system. With today’s sentencing, Mr. Gumucio is being held accountable.”
According to statements made in court and publicly filed documents in this case:
In or around 2006, GUMUCIO founded YTTP in New York, New York. YTTP was originally donation-based: YTTP requested, but did not require, payment from its yoga students. YTTP started with one yoga studio on the Lower East Side of Manhattan, and it became extremely popular. Over the ensuing years, YTTP opened at least approximately 20 yoga studios or affiliated entities throughout New York City and in various other places, including California, Colorado, Arizona, Florida, and Washington State. YTTP also had a teacher training program, which earned substantial income from aspiring yoga teachers. YTTP operated from at least approximately 2006 until 2020. From 2010 to 2020, YTTP and its affiliates generated gross receipts of more than $20 million. Despite those substantial revenues, YTTP never filed a corporate tax return with the Internal Revenue Service (“IRS”).
GUMUCIO was YTTP’s founder, principal owner, and functional chief executive officer, as he directed and made decisions for the YTTP enterprise. From approximately 2012 through 2020, GUMUCIO received nearly $3.5 million in income and owed taxes to the IRS exceeding $1 million, but never filed a personal tax return with the IRS or paid any income taxes. During the charged period, GUMUCIO repeatedly represented his annual income to be six figures to third parties not associated with the Government (e.g., a bank, a car financing company, and a real estate entity). In one such instance, GUMUCIO submitted a fabricated tax return to a third party, which a co-defendant prepared for GUMUCIO at GUMUCIO’s request. During the charged period, GUMUCIO enjoyed an extravagant lifestyle, which included frequent foreign travel; expensive hotels, meals, and clothing; NFL season tickets; and country club payments.
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In addition to the prison term, GUMUCIO, 64, of Colorado Springs, Colorado, was sentenced to three years of supervised released. GUMUCIO was also ordered to pay the IRS restitution in the amount of $2,729,407.10.
Mr. Clayton praised the outstanding efforts of the IRS Criminal Investigation’s New York and Dallas Field Offices; the U.S. Department of Labor, Office of Inspector General’s New York Regional Office; and Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran and Michael Neff are in charge of the prosecution.
Honduran National Charged with Assaulting Federal Security Officer and Attempting to Seize Firearm at 26 Federal PlazaRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, and the Assistant Secretary of Public Affairs for the Department of Homeland Security, Tricia McLaughlin, announced today the arrest and filing of a Complaint charging JOEL ANTONIO ALONZO with assaulting a federal protective security officer and attempting to seize the officer’s service firearm. The incident occurred on June 6, 2025, at 26 Federal Plaza in New York, New York, where Immigration Court proceedings are conducted. The defendant was presented this afternoon before Magistrate Judge Barbara Moses.
“The safety of federal facilities and the dedicated personnel who serve there is non-negotiable,” said U.S. Attorney Jay Clayton. “Joel Antonio Alonzo’s alleged attempt to forcibly seize a firearm from a federal security officer in a crowded public area endangered not only law enforcement personnel but also civilians, including children, nearby. We will prosecute to the full extent of the law anyone who threatens the safety of our communities and the federal officers sworn to protect them.”
“Joel Antonio Alonzo, an illegal alien, assaulted one of our DHS law enforcement officers and lunged for his loaded gun” said Assistant Secretary Tricia McLaughlin. “This incident underscores a disturbing trend—assaults against ICE personnel have increased. Secretary Noem has been perfectly clear: Anyone who threatens the lives of federal officers will be prosecuted to the fullest extent of the law.”
According to the allegations contained in the Complaint:[1]
On or about June 6, 2025, ALONZO arrived in the proximity of Immigration Court at 26 Federal Plaza where civilians, including children, were present. ALONZO immediately exhibited disruptive behavior, forcing his way ahead of others and aggressively tossing papers at service window personnel.
While federal protective security officers were attempting to assist ALONZO, ALONZO suddenly lunged at one officer and grabbed his loaded service firearm with significant force, attempting to pull the firearm from its holster, as seen in the photo below.
Due to the quick actions and training of the federal protective security officers, ALONZO was unsuccessful and immediately restrained.
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ALONZO, 19, of Honduras, is charged with one count of assaulting an officer of the U.S. using a deadly or dangerous weapon, which carries a maximum sentence of 20 years in prison.
The maximum sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Joe Zabel is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._alonzo_complaint.pdf[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.
Witness Charged for Lying Under Oath at TrialRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton; the 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 the unsealing of an Indictment charging ASHANTI WASHINGTON, a/k/a “Shani Boni,” with perjury at a federal criminal trial and obstruction of justice. These charges relate to WASHINGTON’s repeated false testimony at the March 2025 trial of United States v. Kevin Perez, in which Perez was on trial for racketeering and violent crimes. WASHINGTON was arrested on the evening of June 24, 2025, and presented yesterday before U.S. Magistrate Judge Barbara C. Moses. The case is assigned to U.S. District Judge George B. Daniels.
“As alleged, Ashanti Washington swore an oath to tell the truth in federal court and repeatedly lied and attempted to obstruct a New York federal criminal trial,” said U.S. Attorney Jay Clayton. “Truth under oath is central to our system of justice. Those who break this duty will face consequences.”
“As alleged, Washington’s false testimony under oath obstructed justice and undermined the integrity of our legal system,” said HSI Acting Special Agent in Charge Michael Alfonso. “Her deception led to her arrest, and she now faces federal charges.”
“As alleged, Ashanti Washington knowingly lied under oath to protect a violent gang member during a federal trial,” said NYPD Commissioner Jessica S. Tisch. “This wasn’t just simple dishonesty—this was a calculated attack on the integrity of our judicial system. I thank the NYPD investigators, HSI, and the U.S. Attorney’s Office for their work to hold accountable anyone who tries to obstruct justice.”
As alleged in the Indictment and public court filings:[1]
On March 10, 2025, trial in the matter of United States v. Kevin Perez, 23 Cr. 99 (LJL), commenced in which Perez was tried on charges of racketeering conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, and possession, use, brandish, and discharge of a firearm during and in relation to the attempted murder in aid of racketeering. On March 20, 2025, the jury returned guilty verdicts as to racketeering conspiracy, attempted murder, and the firearm discharge count, and returned a not guilty verdict with respect to the murder. Perez faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, with sentencing currently scheduled for July 16, 2025.
On March 17 and 18, 2025, Washington testified at Perez’s trial as a witness during the defense case and repeatedly lied while under oath. Washington’s false testimony concerned:
- Her denying knowing about or touching the gun Perez used in the charged murder,
- Her denying knowledge of a particular gang hand sign and a gang member’s membership in that gang,
- And her claim that the victim in the charged murder had verbally threatened her and Perez before Perez shot and killed the victim.
As alleged in the Indictment, these statements were false. Indeed, while WASHINGTON testified that she did not know about or touch the gun that Perez used in the charged murder, subsequent investigation revealed that WASHINGTON’s DNA was found on multiple parts of that gun.
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WASHINGTON, 23, of the Bronx, New York, is charged with three counts of perjury at a federal criminal trial, each of which carries a maximum term of five years in prison, and one count of obstruction of justice, which carries a maximum term of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the work of the Special Agents from the HSI Violent Gangs Task Force of the NYPD. He added that the investigation is ongoing.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Michael Herman, Patrick Moroney, and Ni Qian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._washington_indictment.pdf[1] As the introductory phase 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.
Serial Hacker “IntelBroker” Charged for Causing $25 Million in Damages to VictimsRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, and the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced the unsealing of a four-count criminal Indictment and Complaint charging KAI WEST, a/k/a “IntelBroker,” a/k/a “Kyle Northern,” with a years-long hacking scheme committed through the online identity “IntelBroker.” WEST, using the IntelBroker identity, conspired with an online group named the CyberN[------], to steal data from a telecommunications company, municipal health care provider, an Internet service provider, and more than 40 other victims. WEST, and his online co-conspirators, took that stolen data, and offered it for sale online for more than $2 million. Collectively, WEST, through the “IntelBroker” identity and his online co-conspirators, caused in excess of $25 million in damages to victims. WEST was arrested in France in February 2025, and the United States is seeking his extradition. The case has been assigned to U.S. District Judge Katherine Polk Failla.
“The IntelBroker alias has caused millions in damages to victims around the world,” said U.S. Attorney Jay Clayton. “This action reflects the FBI’s commitment to pursuing cybercriminals around the world. New Yorkers are all too often the victims of intentional cyber schemes and our office is committed to bringing these remote actors to justice.”
“Kai West, an alleged serial hacker, is charged for a nefarious, years-long scheme to steal victim’s data and sell it for millions in illicit funds, causing more than $25 million in damages worldwide,” said FBI Assistant Director in Charge Christopher G. Raia. “Today’s announcement should serve as a warning to anyone thinking they can hide behind a keyboard and commit cyber-crime with impunity; the FBI will find and hold you accountable no matter where you are.”
As alleged in the Indictment and Complaint:[1]
“IntelBroker” is the online moniker of WEST, who, in concert with his co-conspirators, compromised victims’ (typically companies) computer systems, exfiltrated data from those systems (e.g. customer lists and company marketing data), and then sold the stolen data for profit. WEST accomplished his scheme in connection with his leadership of an online hacking group called the “CyberN[------],” which frequented a particular internet forum (“Forum-1”).
Between approximately 2023 to 2025, WEST offered hacked data for sale approximately 41 times; and offered to distribute hacked data for free (or for Forum-1 credits) approximately 117 times. WEST, and his co-conspirators, have sought to collect at least approximately $2,000,000 by selling the stolen data. Based on information received from the victims of these breaches, WEST and his co-conspirators have cumulatively caused victim losses of at least $25,000,000.
Based on a review of WEST’s IntelBroker Forum-1 posts, approximately 158 threads started by WEST offered stolen data for sale, for Forum-1 credit, or for free, since in or about January 2023 through in or about February 2025. At least 41 of those 158 public messages sell data from companies based in the United States. Of those 158 messages, approximately 16 provided a specific asking price for the stolen data, which cumulatively totals at least $2,467,000. At least 25 of the 158 public messages invited Forum‑1 users to private message IntelBroker (i.e. WEST) to negotiate a sales price. The remaining 117 public messages offer hacked data for free to Forum-1 users or in exchange for Forum-1 credits. At least 46 of the 158 public messages indicate that WEST worked in concert with a particular Forum-1 user (“CC-1”) to obtain the data through a “breach” (i.e. “hack”). WEST’s public messages (as IntelBroker) indicate that he accepts payment via Monero, which is a cryptocurrency that uses a blockchain with privacy-enhancing technologies to attempt to obfuscate transactions and seek to achieve anonymity and fungibility.
WEST’s prolific posting (as IntelBroker), and his sales of stolen data, have generated notoriety for the IntelBroker identity within the Forum-1 community. Indeed, from in or about August 2024 through in or about January 2025, “IntelBroker” was identified on Forum-1 as the site’s “owner.” To further his username’s notoriety, WEST has associated different images with IntelBroker but primarily uses the following image as his calling card:
WEST’s victims include a U.S.-based telecommunications provider. WEST, using the IntelBroker moniker, sold data from that telecommunications company, which included information about its customers. That data was accessed by WEST by illegally accessing a server which was improperly configured. On or about March 6, 2023, WEST, using the IntelBroker moniker, authored a public message on Forum-1 titled “CyberN[------] [redacted reference to Victim] Database.” In that post, WEST offered for sale data from a municipal healthcare provider which included patient data such as names, Social Security numbers, dates of birth, genders, health plan information, employer information, among other information, from the victim’s patients.
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WEST, 25, a British national, is charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; accessing a protected computer to obtain information, which carries a maximum sentence of five years in prison; and wire fraud, which carries a maximum sentence of 20 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 a judge.
Mr. Clayton praised the outstanding work of the FBI and the Office of International Affairs of the Department of Justice’s Criminal Division. He also thanked the French, Spanish, British, and Dutch authorities for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Ryan B. Finkel is in charge of the prosecution.
The charges contained in the Indictment and Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._west_indictment.pdf u.s._v._west_complaint.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaint, and the descriptions set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Former Venezuelan General Pleads Guilty to Narco-Terrorism, Weapons, and Drug Trafficking ChargesRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, and the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), Robert Murphy, announced today that former Venezuelan general HUGO ARMANDO CARVAJAL BARRIOS, a/k/a “El Pollo,” pled guilty before U.S. District Judge Alvin K. Hellerstein to conspiracy to import cocaine into the United States, engaging in narco-terrorism for the benefit of the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”), and related weapons offenses.
“The deeply troubling reality is that there are powerful foreign government officials who conspire to flood the United States with drugs that kill and debilitate,” said U.S. Attorney Jay Clayton. “Hugo Armando Carvajal Barrios was once one of the most powerful men in Venezuela. For years, he and other officials in the Cartel de Los Soles used cocaine as a weapon—flooding New York and other American cities with poison. In doing so, Carvajal Barrios partnered with a deadly terrorist group to support their combined drug trafficking and terrorism efforts, wreaking havoc on communities throughout the United States and elsewhere. Today’s guilty plea demonstrates our commitment to holding accountable foreign officials who abuse their power to poison our citizens. I commend the extraordinary efforts of our law enforcement allies in the DEA’s Special Operations Division and our other law enforcement partners here and abroad.”
“Hugo Armando Carvajal Barrios exploited his position as the director of Venezuela’s military intelligence and abandoned his responsibility to the people of Venezuela in order to intentionally cause harm to the United States,” said DEA Acting Administration Robert Murphy. “After years of trying to evade law enforcement, Carvajal Barrios will now likely spend the rest of his life in federal prison. As evidenced in this case, DEA will relentlessly pursue anyone who uses violence, drugs, and intimidation to compromise the safety and security of the United States.”
As alleged in the Superseding Indictment, other court filings, and statements made during court proceedings:
Beginning in at least 1999, CARVAJAL BARRIOS, a Venezuelan citizen and the former director of Venezuela’s military intelligence agency, which was known as the Direccion de Inteligencia Militar (“DIM”), along with other high-ranking Venezuelan government and military officials, acted as leaders and managers of the Cartel de Los Soles, or “Cartel of the Suns.” CARVAJAL BARRIOS and other Cartel de Los Soles members abused the Venezuelan people and corrupted the legitimate institutions of Venezuela—including parts of the military, intelligence apparatus, legislature, and judiciary—to facilitate the importation of tons of cocaine into the United States. The Cartel de Los Soles sought not only to enrich its members and enhance their power but also to “flood” the United States with cocaine and inflict the drug’s harmful and addictive effects on users in the United States. To accomplish these goals, the leaders of the Cartel de Los Soles partnered with leaders of the FARC, a violent terrorist organization based in Colombia that was dedicated to the overthrow of the Colombian government, which was responsible for the production and distribution of the majority of the cocaine that reached the United States.
CARVAJAL BARRIOS held multiple positions of public trust in Venezuela that he exploited to benefit the Cartel de Los Soles, including as director of the DIM between approximately 2004 and 2011, and again in 2013. CARVAJAL BARRIOS took advantage of that position to illegally traffic narcotics and support his drug trafficking partners, including the FARC. In or about 2006, for example, CARVAJAL BARRIOS coordinated with other members of the Cartel de Los Soles to dispatch a 5.6-ton cocaine shipment from Venezuela on a DC-9 plane bearing a United States registration number. The plane departed Venezuela and landed in Mexico, where Mexican authorities seized the 5.6 tons of cocaine upon arrival. CARVAJAL BARRIOS also worked with the FARC to coordinate multi-ton drug shipments under his protection; provided heavily-armed security to protect drug shipments; and armed the FARC with automatic weapons and explosives to further the group’s drug trafficking and terrorist activities. To accomplish cocaine distribution on this massive scale, CARVAJAL BARRIOS accepted millions of dollars from drug traffickers. In addition, CARVAJAL BARRIOS participated in violence, including kidnappings and murder, to facilitate this cocaine trafficking and protect his co-conspirators.
One of CARVAJAL BARRIOS’s co-defendants in this case has already been sentenced. On or about April 11, 2024, Cliver Antonio Alcala Cordones was sentenced principally to a term of 260 months in prison, after pleading guilty to providing material support, including firearms, to the FARC. Other co-conspirators remain at large.
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CARVAJAL BARRIOS, 65, of Venezuela, pled guilty to four counts contained in the Superseding Indictment. A table containing the charges and minimum and maximum penalties is set forth below. CARVAJAL BARRIOS is scheduled to be sentenced on October 29, 2025.
CountMin. and Max. Prison TermCount One: Narco-terrorism conspiracyMandatory minimum of 20 years in prison; maximum of life in prisonCount Two: Narcotics importation conspiracyMandatory minimum of 10 years in prison; maximum of life in prisonCount Three: Possession of firearms, including machineguns and destructive devicesMandatory minimum of 30 years in prison, which is to run consecutively to any other prison term imposed; maximum of life in prisonCount Four: Conspiracy to possess firearms, including machineguns and destructive devicesMaximum of life in prisonThe minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing will be determined by the judge.
Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, Miami Field Division, New York Field Division, Madrid Country Office, Bogota Country Office, and Mexico City Country Office; the Department of Homeland Security, Homeland Security Investigations; the U.S. Treasury Department, Office of Foreign Assets Control; the Counterterrorism Section of the Department of Justice’s National Security Division; the Narcotic and Dangerous Drug Section of the Department of Justice’s Criminal Division; the U.S. Attorney’s Office for the Southern District of Florida; the Department of Justice’s Office of International Affairs; the U.S. Embassy Madrid; the U.S. Embassy Bogota; the U.S. Embassy Mexico City; and our law enforcement partners in Colombia, Mexico, and Spain.
The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and July 19, 2023, extradition from Spain of Carvajal Barrios.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley, Kaylan E. Lasky, and Kevin T. Sullivan are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.
Link to a previous press release in this case: https://www.justice.gov/usao-sdny/pr/former-venezuelan-official-hugo-armando-carvajal-barrios-extradited-united-states.
Leaders and Members of YBMG Gang Sentenced for Murder for Hire Conspiracy, Attempted Murder, Racketeering, Narcotics, and Firearms OffensesRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, announced today the sentencing of SHPENDIM HAXHAJ, a/k/a “White Mike,” the last of seven defendants to be sentenced in a case involving members of a street gang known as the Young Bronx Money Getters, or “YBMG,” that operated in the Bronx, Long Island, Upstate New York, and Connecticut. HAXHAJ was sentenced to 35 years in prison for crimes relating to his membership in YBMG, including a conspiracy to commit murder for hire that resulted in the August 16, 2019, murder of Isael Lagares in the Bronx. HAXHAJ previously pled guilty to conspiracy to commit murder for hire, attempted murder in aid of racketeering, and participating in a conspiracy to distribute and possess with intent to distribute controlled substances on August 7, 2023, before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence. HAXHAJ was the last of the seven defendants in the YBMG case before Judge Failla to have been convicted and sentenced.
“For more than a decade, the YBMG gang terrorized communities in the Bronx, Long Island, Upstate New York, and Connecticut with drugs, guns, and senseless violence,” said U.S. Attorney Jay Clayton. “Among YBMG’s many victims was Isael Lagares, who was gunned down after Haxhaj and other gang members paid a hitman to end his life. The seven members of this incredibly violent gang have now been convicted and sentenced for their crimes. The women and men of the Southern District will continue to vigorously pursue those who bring illegal drugs and violence into our communities.”
According to the Superseding Indictment, public court filings, evidence introduced at the trial of Yeltsin Beltran, a/k/a “Yells,” and statements made in court:
From at least in or about 2006 to in or about 2021, YBMG was a criminal enterprise centered in the Bronx. In order to make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of YBMG engaged in, among other things, narcotics trafficking and violence, including murder. To that end, YBMG members sold heroin, cocaine, and marijuana, promoted their gang affiliation on social media, possessed firearms, and engaged in shootings as part of their gang membership and narcotics trafficking.
On or about August 16, 2019, HAXHAJ and BORIS BELTRAN hired a man to murder a rival gang member. That same day, the hired hitman then shot and killed Lagares, who was socializing with a group of people on a residential street in the Bronx.
YBMG members also participated in a conspiracy to distribute narcotics in New York and elsewhere. HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, JEREMY CEDENO, FRANCISCO ORTEGA, and IVIS PERDOMO participated in a conspiracy with other individuals to distribute heroin, cocaine, and marijuana from at least in or about 2006 up to and including 2021 and carried, brandished, and discharged firearms that were possessed in furtherance of their narcotics trafficking.
On or about December 23, 2019, PERDOMO shot two people non-fatally in a nightclub in the Bronx.
On or about June 7, 2019, CEDENO shot at a member of an opposing gang in New York, New York.
* * *
A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division. Assistant U.S. Attorneys Christopher Brumwell, Benjamin Gianforti, Brandon D. Harper, Frank Balsamello, and Mathew Andrews are in charge of the prosecution.
Defendant
Age
Conviction
Sentence
SHPENDIM HAXHAJ, a/k/a “White Mike”33Murder for Hire Conspiracy; Attempted Murder in Aid of Racketeering; Narcotics Conspiracy35 yearsYELTSIN BELTRAN, a/k/a “Yells”33Racketeering Conspiracy; Narcotics Conspiracy; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Narcotics Conspiracy;380 monthsBORIS BELTRAN, a/k/a “Bebe”27Murder for Hire Conspiracy and Narcotics Conspiracy20 yearsJEREMY CEDENO, a/k/a “Jerm”39Narcotics Conspiracy135 MonthsIVIS PERDOMO, a/k/a “Lite”43Narcotics Conspiracy188 MonthsFRANCISCO ORTEGA, a/k/a “Fresh”36Narcotics Conspiracy140 MonthsDRILON HAXHAJ29Narcotics Conspiracy32 MonthsFlorida Man Convicted in Multimillion-Dollar Medicare Fraud SchemeRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, announced today the conviction of TED ALBIN for his role in orchestrating a multimillion-dollar Medicare fraud scheme. ALBIN was convicted following a 12-day jury trial before U.S. District Judge John G. Koeltl.
“Ted Albin brazenly defrauded our Medicare system using fake and fraudulent prescriptions,” said U.S. Attorney Jay Clayton. “He cheated Medicare out of millions meant for real patients with every taxpayer footing the bill. Today’s verdict makes clear: if you cheat Medicare, you will be prosecuted.”
According to court documents and evidence presented at trial:
From approximately 2016 through April 2021, ALBIN operated Grapevine Professional Services (“Grapevine”), a medical billing company, which he used to submit fraudulent reimbursement claims for durable medical equipment (“DME”), including back braces, knee braces, wrist braces, and shoulder braces. ALBIN submitted thousands of fraudulent claims on behalf of DME supply companies that had engaged Grapevine for its billing services, including at least three DME supply companies owned and controlled by ALBIN and his sister, Erin Foley—Liberty Bell Medical, Skye Medical, and Priority Medical. ALBIN’s fraudulent claims were based on prescriptions for DME which he knew had been illegally bought with kickbacks paid by the DME supply companies. At least some of the kickback-tainted prescriptions billed by ALBIN were generated with forged doctor’s signatures and without regard to the medical need of the patients for whom braces had been prescribed. ALBIN knew of the fraudulent nature of the claims he submitted to Medicare and nonetheless continued to submit such claims, over and over, for years. In total, the DME companies that ALBIN submitted claims for billed Medicare for over $38 million, on which Medicare paid out over $12 million.
* * *
ALBIN, 48, of Stuart, Florida, was convicted of one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years; one count of health care fraud, which carries a maximum sentence of 10 years; one count of wire fraud, which carries a maximum sentence of 20 years; and one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years. ALBIN is scheduled to be sentenced on December 10, 2025.
Mr. Clayton praised the outstanding investigative work of the U.S. Department of Health and Human Services – Office of Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys William Kinder, Jackie Delligatti, Brandon Thompson, and Ryan Finkel are in charge of the prosecution.
Menachem Lieberman Sentenced to 52 Months for Fraud on Federal Childcare ProgramsRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, announced that MENACHEM “MAX” LIEBERMAN was sentenced today to 52 months in prison for two fraudulent schemes involving federally funded childcare companies. LIEBERMAN previously pled guilty before U.S. District Judge Jennifer H. Rearden, who imposed today’s sentence.
“Max Lieberman defrauded federal childcare programs that provide vital services to our most innocent and vulnerable,” said U.S. Attorney Jay Clayton. “New Yorkers believe in opportunity, particularly for our children, and by defrauding our Head Start and childcare voucher programs, Max Lieberman exploited our collective belief in opportunity for his own financial gain. The women and men of the Southern District of New York are committed to pursuing those who breach the public trust for illicit, personal financial gain.”
According to the Indictment, public court filings, and statements made in court proceedings:
LIEBERMAN participated in two schemes involving federal grant programs meant to provide assistance for childcare to low-income families.
First, between 2019 and January 2023, LIEBERMAN secretly “owned” and exercised control over a non-profit entity, Project Social Care Head Start Inc. (“PSCHS”), that operated in the New York City area (and which, as a non-profit entity, could not legally be privately owned). The U.S. Department of Health and Human Services (“HHS”), which administers the Head Start program, annually granted to PSCHS millions of dollars that were to be used exclusively on the Head Start program and from which earning a profit is prohibited by law. Between 2019 and 2021, LIEBERMAN paid co-defendant Martin Handler $4.7 million to obtain “ownership” over PSCHS, and used his control over PSCHS to impermissibly direct PSCHS’s Head Start funding to his own for-profit companies. In order to protect his control over PSCHS’s funding, LIEBERMAN conspired with others to impair HHS’s ability to provide effective oversight of PSCHS by, among other things:
- Misrepresenting to HHS that PSCHS had an independent board of directors that was monitoring PSCHS,
- Submitting a letter to HHS when it began investigating LIEBERMAN’s involvement that falsely stated there were no conflicts of interest or less-than-arms’-length dealings with LIEBERMAN,
- And coordinating false testimony to HHS investigators.
Second, between July 2020 and January 2023, LIEBERMAN perpetrated a separate fraud that caused harm of nearly $2 million to the New York City Administration for Children’s Services (“ACS”), which administers a federally funded childcare voucher program for low-income families. In July 2020, LIEBERMAN submitted an application to ACS on behalf of PSCHS that contained a false signature of the nominal executive director and included fake receipts for six children that purported to show those children were already attending the program, when in fact the program did not exist and no children attended. When questioned by ACS whether the executive director’s signature was legitimate, LIEBERMAN created and submitted a fraudulently notarized document supposedly from the executive director that falsely affirmed that the signature was accurate. From July 2020 through his arrest in January 2023, LIEBERMAN applied for and received over $1.8 million in ACS reimbursements, even though the program did not actually exist and no children attended the program except for a brief period from September 2022 to October 2022.
* * *
In addition to today’s prison sentence, LIEBERMAN, 48, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay a fine of $200,000, restitution of $1,854,543.35 to ACS, and forfeit $1,774,543.35.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and HHS, Office of the Inspector General. Mr. Clayton also thanked U.S. Department of Agriculture, Office of the Inspector General, and the New York City Department of Investigation for their assistance with this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel H. Wolf, Catherine Ghosh, Jacob R. Fiddelman, and Stephanie Simon are in charge of the prosecution, with the assistance of Paralegal Specialist Nandita Vasantha.
Six Defendants Charged in Multimillion-Dollar Check Theft and Bank Fraud RingRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, and the Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service, Edward Gallashaw, announced today the unsealing of a Superseding Indictment charging six defendants – MICHAEL EDWARDS, a/k/a “Only1Giela”; SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex”; WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny”; ALIXANDRIA LAUTURE, a/k/a “A$”; SHURON MALONE, a/k/a “First Name Last Name”; and CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle” – with participating in a scheme to steal millions of dollars in checks from the mail. EDWARDS and MERCADO were previously taken into custody on related charges, and SHAKEEMO HILL, WILLIAM HILL, LAUTURE, and MALONE were arrested earlier today. SHAKEEMO HILL, WILLIAM HILL, and LAUTURE are expected to be presented before Chief U.S. Magistrate Judge Sarah Netburn, and MALONE is expected to be presented in the Middle District of Florida. The case is assigned to U.S. District Judge John G. Koeltl.
“As alleged, the six defendants charged today lined their pockets by stealing checks destined for hard working New Yorkers and others,” said U.S. Attorney Jay Clayton. “Together with our partners at the Postal Inspection Service, we will fight to protect the integrity of the U.S. mail system—a public service upon which millions of Americans rely every day to send items of financial, professional, and personal importance.”
“The arrests today should send a very clear message that those who engage in mail theft and bank fraud will be held accountable,” said USPIS Acting Inspector in Charge Edward Gallashaw. “These charges highlight the commitment of the U.S. Postal Inspection Service to bring individuals to justice who steal from USPS customers. Thank you to the U.S. Attorney’s Office and our investigative partners for working tirelessly on this case, and helping to maintain the public’s trust of the U.S. Postal Service.”
As alleged in the Superseding Indictment unsealed today in Manhattan federal court, as well as statements made in public court proceedings:[1]
From at least in or about January 2022 through at least in or about July 2024, the defendants perpetrated a massive scheme to steal millions of dollars in checks from Postal Service collection boxes in New York and elsewhere. As part of their scheme, the defendants conspired to buy or otherwise obtain keys that would allow them to unlock the Postal collection boxes and steal mail, bank cards, and other bank account information.
After stealing checks from the mail, the defendants and their coconspirators fraudulently altered the information on those checks either by digitally altering the checks and printing them on check stock, or by chemically “washing” the checks to remove the ink. To avoid getting caught, the defendants also conspired to obtain and exchange information for bank accounts held in the names of third parties for the purpose of depositing the fraudulently altered checks.
In total, the fraud ring posted millions of dollars in checks for sale on a third-party messaging application, and also deposited millions of dollars in fraudulently altered checks in bank accounts at national banks along the East Coast.
The members of the conspiracy played different roles. EDWARDS served as the leader of the organization, coordinating the purchase of postal keys with others, such as WILLIAM HILL, and the use of those keys to steal mail from postal boxes with other coconspirators, such as WILLIAM HILL, SHAKEEMO HILL, and MERCADO. The organization’s activities were lucrative: in the early morning hours of July 10, 2023, EDWARDS and MERCADO used a postal key to steal approximately $176,000 in checks from the mail. Other members of the conspiracy, such as EDWARDS, WILLIAM HILL, SHAKEEMO HILL, LAUTURE, and MALONE recruited people they knew to supply their bank account information, including account balances and log-in information. And because the stolen checks were not made out to the names on the third-party bank accounts, the members of the fraud ring—including EDWARDS and SHAKEEMO HILL—altered the checks to match the names on those bank accounts. After the checks were altered, the members of the conspiracy, including EDWARDS, WILLIAM HILL, SHAKEEMO HILL, LAUTURE, and MALONE, deposited or recruited others to deposit them into third-party bank accounts.
* * *
A chart containing the defendants’ names, ages, charges, and maximum penalties is set forth below.
The statutory maximum and minimum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the USPIS and Homeland Security Investigations. Mr. Clayton also thanked the U.S. Attorney’s Office for the District of Connecticut for their assistance.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jerry J. Fang and William K. Stone are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to commit bank fraud
18 U.S.C. § 1349
MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;[2]
SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex,” 22;
WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;
ALIXANDRIA LAUTURE, a/k/a “A$,” 27;
SHURON MALONE, a/k/a “First Name Last Name,” 29
30 years in prison2
Conspiracy to commit theft of a postal key
18 U.S.C. § 371
MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;
WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;
CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22
Five years in prison3
Conspiracy to commit theft of mail and receipt of stolen mail, and sale and receipt of stolen money
18 U.S.C. § 371
MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;
SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex,” 22;
WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;
CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22
Five years in prison4
Theft of a postal key
18 U.S.C. §§ 1704 and 2
MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;
CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22
10 years in prison5
Theft of mail and receipt of stolen mail
18 U.S.C. §§ 1708 and 2
MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;
CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22
Five years in prison6
Aggravated identity theft
18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2
MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;
SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex,” 22;
WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;
ALIXANDRIA LAUTURE, a/k/a “A$,” 27;
SHURON MALONE, a/k/a “First Name Last Name, 29”
Mandatory minimum sentence of two years in prison to run consecutive to any other prison term edwards_et_al_indictment_pr.pdf[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the descriptions of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] Counts One, Three, and Six charge EDWARDS with committing those offenses while on pretrial release, in violation of 18 U.S.C. § 3147, which subjects him to an additional maximum sentence of 10 years in prison consecutive to any other prison term imposed.
Senior Leaders of Own Every Dollar Gang Plead GuiltyRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced the guilty pleas today of JESUS ZAPATA, a/k/a “Jeezy,” a/k/a “Hendrix,” and BRAYAN LLORET, a/k/a “E.T.,” in connection with their leadership of the violent gang Own Every Dollar (“OED”). ZAPATA and LLORET pled guilty today to several charges, including racketeering conspiracy, before U.S. District Judge J. Paul Oetken.
“Jesus Zapata and Brayan Lloret were two of the top leaders of the deadly Manhattan-based Own Every Dollar gang,” said U.S. Attorney Jay Clayton. “Today’s convictions highlight the commitment of our Office to taking down the street gangs that terrorize New Yorkers, and to ensuring that all gang members —from foot soldiers to bosses—face justice.”
As alleged in the Indictment and statements made in public filings and public court proceedings:
ZAPATA and LLORET are senior leaders of the violent OED gang, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan. ZAPATA is the former “Duarte,” or top leader, of the gang. ZAPATA and LLORET are being held responsible for committing or ordering a number of violent acts on Rikers Island, including three slashings in 2021.
ZAPATA and LLORET are the 21st and 22nd members or associates of OED to be convicted in this case. The defendants in the case have been convicted for their roles in five murders and more than 10 attempted murders, which occurred in Manhattan, the Bronx, and state and federal prisons.
* * *
ZAPATA, 35, of New York, New York, pled guilty to one count of racketeering conspiracy, 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; one count of assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeering, which carries a maximum sentence of 20 years in prison; one count of attempted murder and assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeering, which carries a maximum sentence of 20 years in prison; and one count of narcotics conspiracy, which carries a maximum sentence of life in prison.
LLORET, 27, of New York, New York, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeering, which carries a maximum sentence of 20 years in prison; and one count of narcotics conspiracy, which carries a maximum sentence of life in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Clayton praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner, Kevin Mead, Alexandra S. Messiter, and Ashley C. Nicolas are in charge of the prosecution.
Monticello Man Charged with 2017 MurderRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton; the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and the District Attorney for Sullivan County, New York, Brian Conaty, announced the filing of a Superseding Indictment charging DWAYNE JOHNSON with the May 2017 murder of Shaniece Harris (the “Victim”), as well as additional controlled substance and firearms offenses. JOHNSON was previously taken into custody on controlled substance and firearms charges following the recovery of, among other things, marijuana and approximately 30 firearms from his residence in May 2023. The case is assigned to U.S. District Judge Vincent Briccetti. Earlier today, JOHNSON was arraigned on the charges in the Superseding Indictment.
“As alleged, more than eight years ago, Dwayne Johnson murdered Shaniece Harris in Monticello, New York, in connection with a long-running drug conspiracy,” said U.S. Attorney Jay Clayton. “Thanks to the hard work of the prosecutors in this Office and our law enforcement partners at FBI, New York State Police, NYPD, and the Sullivan County District Attorney’s Office, Johnson will be held to account for this cold-blooded crime. This brutal murder shows the harsh truth that drug trafficking and violence go together, and drug trafficking poses incredible dangers to communities throughout New York. As this Superseding Indictment shows, we work every day to deliver justice for the victims of senseless violence—no matter how many years have passed. We hope this prosecution brings some measure of peace to the victim’s loved ones.”
"Dwayne Johnson allegedly murdered Shaniece Harris as part of his drug trafficking operation," said FBI Assistant Director in Charge Christopher G. Raia. "We are committed to ending the senseless and irreparable damage caused to our communities by violence connected to drug trafficking. The FBI has a long memory. No matter how much time has passed, we will not cease in our efforts to find justice for victims of murder and other violent crimes."
“I am thrilled that this arrest is the first step in bringing closure to the family and loved one’s of Shanice Harris," said District Attorney Brian Conaty. "I applaud the FBI Safe Streets Task Force and the Southern District of New York. I am proud that members of my office were able to assist these entities in this investigation. I thank all the law enforcement entities involved for their unwavering dedication to investigating and apprehending the individual who was responsible for this heinous crime. It is law enforcement collaborations such as this that send a stark message that the victims of violent crime will never be forgotten.”
As alleged in the Superseding Indictment and other public filings: [1]
On or about May 29, 2017, JOHNSON shot and killed Shaniece Harris in Monticello, New York, in furtherance of his long-running conspiracy to traffic over 1,000 kilograms of marijuana in the Southern District of New York and elsewhere. Following a series of searches in 2023, law enforcement recovered multiple videos made by JOHNSON in which Johnson displayed his cache of firearms and articulated his intent to shoot anyone who attempted the steal his marijuana or marijuana proceeds. On or about May 24, 2023, law enforcement recovered from JOHNSON’s residence body armor, a large quantity of ammunition, and approximately 30 firearms, including multiple short-barreled rifles.
* * *
JOHNSON, 46, of Monticello, New York, is charged with one count of conspiracy to distribute and possess with intent to distribute over 1,000 kilograms of marijuana, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of murder through use of a firearm, which carries a statutory maximum sentence of death or life in prison; one count of possession with intent to distribute marijuana, which carries a maximum sentence of five years in prison; one count of possession of a short-barreled rifle in furtherance of a drug trafficking crime, which carries a mandatory minimum sentence of 10 years in prison to be served consecutively to any other term of prison imposed and a maximum sentence of life in prison; and one count of unlawful possession of firearms, which carries a maximum sentence of 15 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding investigative work of the FBI Hudson Valley Safe Streets Task Force, the FBI Hudson Valley White Collar Crime Task Force, the New York State Police, the NYPD, the Sullivan County District Attorney’s Office, and the Sullivan County Sheriff's Office.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kaiya Arroyo and Jorja Knauer are in charge of the prosecution, with assistance from Paralegal Specialist Liam Ronan.
The charges contained in the Superseding Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
u.s._v._johnson_superseding_indictment.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Former Business Owner and Town of Cortlandt Employee Sentenced to Prison for $2.4 Million Environmental Crime SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that GLENN GRIFFIN, the owner and president of Griffin’s Landscaping Corporation, was sentenced to two years in prison for a scheme in which GRIFFIN bribed a Town of Cortlandt employee to gain unauthorized access to a Town facility to dump loads of unauthorized materials. GRIFFIN was also sentenced for a separate bid-rigging scheme. The sentence was imposed by U.S. District Judge Vincent L. Briccetti.
On May 20, 2025, ROBERT DYCKMAN, the former Assistant General Foreman for the Town of Cortlandt, was sentenced by Judge Briccetti to a year and a day in prison for his participation in the bribery and dumping scheme. As part of their sentences, GRIFFIN and DYCKMAN were each ordered to pay $2.4 million in restitution to their victims.
“Glenn Griffin and Robert Dyckman’s corruption not only damaged public land and fragile wetlands but also undermined the public’s faith in our government and institutions” said U.S. Attorney Jay Clayton. “Griffin, a successful business owner and president, bribed Dyckman so that he could save money and, in the process, illegally dump harmful, unauthorized materials on public property generating $2.4 million in damages. Moreover, Griffin then took government money to remove and haul away the very materials that he had illegally dumped. Together with our law enforcement partners, we are committed to rooting out such brazen and wasteful corruption.”
According to statements made in public filings and court proceedings:
Illegal Dumping Scheme
From 2018 until February 2020, GRIFFIN and DYCKMAN engaged in an unauthorized dumping scheme. DYCKMAN gave GRIFFIN and his employees unauthorized access to Arlo Lane, a Cortlandt facility, to dump hundreds of large truckloads of unauthorized materials such as thick concrete, cement with rebar, tiles, bricks, large rocks, and soil. After the illegal dumping, GRIFFIN billed and received payments from the Town of Cortlandt for removing and hauling away the very materials that GRIFFIN had illegally dumped at Arlo Lane with DYCKMAN’s assistance.
DYCKMAN generally allowed GRIFFIN and his employees to access Arlo Lane on Saturdays or after working hours. To carry out the scheme, DYCKMAN would attempt to clear senior Town of Cortlandt management away from Arlo Lane around the time of the unauthorized dumping. When DYCKMAN arranged for a subordinate Town of Cortlandt worker to work overtime when GRIFFIN was dumping unauthorized loads, DYCKMAN would falsely record the worker’s overtime as having occurred during the week in order to conceal the scheme.
In exchange for access to Arlo Lane, GRIFFIN paid DYCKMAN cash bribes.
GRIFFIN and DYCKMAN were ordered to pay the Town of Cortlandt and the Westchester Land Trust, a 501(c)(3) tax-exempt organization which owns damaged wetlands abutting the Town of Cortlandt’s Arlo Lane property, a total of $2.4 million to remediate and restore their property following GRIFFIN’s and DYCKMAN’s criminal conduct.
Bid-Rigging Scheme
Between 2015 and 2018, Griffin also engaged in a bid-rigging scheme. GRIFFIN defrauded the village of Croton-on-Hudson for work on its schools, and the hamlet of Verplanck for work at its fire department. GRIFFIN made sham, non-competitive, and inflated bids on behalf of entities that GRIFFIN did not work for or have authorization to submit bids on behalf of, so that GRIFFIN would be the low bidder in a pool of purportedly competitive bids and receive public money for work on the projects. Based on these sham, non-competitive, and inflated bids, GRIFFIN was awarded contracts with a combined value exceeding $133,000.
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In addition to the prison term, GRIFFIN, 56, of Cortlandt, New York was sentenced to three years of supervised release and a $50,000 fine. He was also ordered to forfeit $220,000 and pay $2.4 million in restitution, with $1.2 million due to the Town of Cortlandt and $1.2 million due to the Westchester Land Trust. On August 26, 2024, GRIFFIN pled guilty before U.S. Magistrate Judge Victoria Reznik to one count of conspiracy to commit bribery and one count of conspiracy to commit wire fraud.
In addition to the prison term, DYCKMAN, 53, of Verplanck, New York, was sentenced to two years of supervised release and ordered to pay $2.4 million in restitution, with $1.2 million due to the Town of Cortlandt and $1.2 million due to the Westchester Land Trust. On August 26, 2024, DYCKMAN pled guilty before Magistrate Judge Reznik to one count of conspiracy to commit mail fraud.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and the Westchester County Police Department in this investigation. Mr. Clayton also thanked the Westchester County District Attorney’s Office and the New York City Department of Investigation for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and James McMahon are in charge of the prosecution.
U.S. Attorney Announces Extradition of Pakistani National Who Targeted Jewish Center in Brooklyn for Terrorist AttackRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton; the Attorney General for the United States, Pamela Bondi; the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that Muhammad Shahzeb Khan, a/k/a “Shahzeb Jadoon,” has been extradited from Canada to the United States to face charges for attempting to enter the United States and carry out a mass shooting with automatic weapons at a prominent Jewish center in New York. The case is pending before U.S. District Judge Paul G. Gardephe. KHAN will make his initial appearance in court tomorrow, June 11, 2025, before Chief Magistrate Judge Sarah Netburn.
“As alleged, Muhammad Shahzeb Khan attempted to enter the United States to carry out a deadly terrorist attack on a Jewish center in New York City,” said U.S. Attorney Jay Clayton. “He planned to use automatic weapons to kill as many members of our Jewish community as possible, all in support of ISIS. Khan’s deadly, antisemitic plan was thwarted by the diligent work of our law enforcement partners and the career prosecutors in this Office who are committed to rooting out antisemitism and stopping terror. Thanks to their efforts, Khan will now face justice in New York.”
“The foreign terrorist organization ISIS remains a clear and present danger to the American people, and our Jewish citizens are especially targeted by evil groups like these,” said Attorney General Pamela Bondi. “The Department of Justice is proud to help secure this extradition, and we will prosecute this man to the fullest extent of the law.”
“Muhammad Shahzeb Khan has been brought to the United States to face justice for his barbaric plot to conduct a mass shooting in New York City,” said FBI Assistant Director in Charge Christopher G. Raia. “Due to the dedication and commitment of the New York Joint Terrorism Task Force and our partners here and internationally, we were able to disrupt Khan’s evil plans before he could carry them out. The FBI will do whatever it takes to defend our nation from those wishing to carry out acts of terrorism, wherever in the world they may be located.”
“Muhammad Shahzeb Khan—a supporter of ISIS and fueled by antisemitism—allegedly plotted a terrorist attack that could have slaughtered Jewish New Yorkers simply because of their faith,” said NYPD Commissioner Jessica S. Tisch. “Thanks to the proactive work of the NYPD, the FBI, and the U.S. Attorney’s Office, that plot was stopped before it could become a tragedy. This case is a powerful reminder of the ongoing efforts by the NYPD and our law enforcement partners to prevent acts of hate and protect our communities, because bigotry and antisemitism have no place in our city. And we will never hesitate to hold accountable anyone who threatens the safety of New Yorkers.”
As alleged in the charging instruments and other public filings:[1]
In or about November 2023, KHAN, a Pakistani national residing in Canada, began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS, including by distributing ISIS propaganda videos and literature. KHAN then began communicating with two undercover law enforcement officers (collectively, the “UCs”) about his desire and plan to carry out terrorist attacks in the United States in support of ISIS. During those conversations, KHAN confirmed that he and a U.S.-based associate (“Associate-1”) had been planning to carry out a terrorist attack in a particular U.S. city (“City-1”) using AR-style assault rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].”[2] During subsequent conversations, KHAN repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified locations in City-1 where the attacks would take place. Khan also told the UCs that he had identified a human smuggler who would help him cross the border from Canada into the United States for the attack.
In or about August 2024, KHAN changed his target to New York City. Specifically, KHAN told the UCs that the target location would now be a prominent Jewish religious center in Brooklyn, New York (“Location-1”). KHAN conveyed that he hoped to carry out this attack on or around October 7, 2024—which KHAN recognized as the one-year anniversary of the brutal and deadly terrorist attacks in Israel carried out by the foreign terrorist organization Hamas. KHAN told the UCs that “New york is perfect to target jews” because it has the “largest Jewish population in america,” and, as such, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” KHAN then told the UCs that he intended to kill as many Jewish civilians as possible, proclaiming that “we are going to nyc to slaughter them,” and later sent a photograph to the UCs of the specific enclosed area inside of Location-1 where KHAN planned to carry out his attack. In the days that followed, KHAN continued to urge the UCs to acquire AR-style rifles, hunting knives to “slit their throats,” and other equipment for the attack, and reiterated his desire to carry out this attack in support of ISIS. During one such communication, KHAN noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”
On or about September 4, 2024, KHAN attempted to reach the U.S-Canada border using a human smuggler to enter the United States and carry out his attack. KHAN traveled from the vicinity of Toronto, Canada toward the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.
* * *
KHAN, 20, a Pakistani citizen who was residing in Canada, is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison, and one count of attempting to commit acts of terrorism transcending national boundaries, which carries a maximum sentence of life 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 New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, and thanked the FBI’s Los Angeles and Chicago Field Offices, the New York State Police, the U.S. Customs and Border Protection, the Counterterrorism Section of the Department of Justice’s National Security Division, and the Office of International Affairs of the Department of Justice’s Criminal Division for their assistance. Mr. Clayton also thanked our law enforcement partners in Canada, including the Royal Canadian Mounted Police and Department of Justice Canada’s International Assistance Group, for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.
[1] As the introductory phrase signifies, the entirety of the charging instruments and other public filings to date constitute only allegations, and every fact described herein should be treated as an allegation.
[2] “Chabad” is a branch of Hasidic Judaism, as well as a movement that operates Jewish religious and educational institutions around the world.
Pakistani National Extradited to Face Charges in Connection with Plot to Carry Out ISIS-Inspired Mass Shooting at Jewish Center in New York CityRead the Press Release
A Pakistani citizen residing in Canada, Muhammad Shahzeb Khan, 20, also known as Shahzeb Jadoon, was extradited to the United States on June 10, in connection with an indictment filed in the Southern District of New York. Khan was charged with attempting to provide material support and resources to a designated foreign terrorist organization (FTO), the Islamic State of Iraq and al-Sham (ISIS) and attempting to commit acts of terrorism transcending national boundaries. Khan is scheduled to make an initial appearance in court on June 11.
“The foreign terrorist organization ISIS remains a clear and present danger to the American people, and our Jewish citizens are especially targeted by evil groups like these,” said Attorney General Pamela Bondi. “The Department of Justice is proud to help secure this extradition, and we will prosecute this man to the fullest extent of the law.”
“Khan allegedly tried to enter the United States to commit an attack on the Jewish community in New York City, planning an ISIS-inspired mass shooting around the one-year anniversary of the attack on Gaza by Hamas,” said FBI Director Kash Patel. “Thankfully, the great work of the FBI and our partners shut that down, and Khan has now been extradited to New York to face American justice. I want to thank our teams and partners for their diligent work in this case and executing the mission.”
“As alleged, Muhammad Shahzeb Khan attempted to enter the United States to carry out a deadly terrorist attack on a Jewish center in New York City,” said U.S. Attorney Jay Clayton for the Southern District of New York. “He planned to use automatic weapons to kill as many members of our Jewish community as possible, all in support of ISIS. Khan’s deadly, antisemitic plan was thwarted by the diligent work of our law enforcement partners and the career prosecutors in this Office who are committed to rooting out antisemitism and stopping terror. Thanks to their efforts, Khan will now face justice in New York.”
Khan was provisionally arrested in Canada on Sept. 4, 2024 based on a complaint filed in the Southern District of New York. As alleged in the complaint, Khan, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York. Khan began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, Khan distributed ISIS propaganda videos and literature. Subsequently, Khan began communicating with two undercover law enforcement officers (collectively, the UCs).
During those conversations, Khan confirmed that he and a U.S.-based ISIS supporter (Associate-1) had been planning to carry out an attack in a particular U.S. city (City-1). Among other things, Khan said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].” During subsequent conversations, Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place. Khan also provided details about how he would cross the border from Canada into the United States to conduct the attacks. During these conversations with the UCs, Khan emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”
On or about Aug. 20, Khan changed his target location from City-1 to New York City. After initially suggesting certain neighborhoods in New York City to the UCs, Khan decided to target Location-1, a Jewish center located in Brooklyn, New York. Khan told the UCs that he planned to carry out this attack on or around Oct. 7, 2024 — which Khan recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated FTO, which, on Oct. 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel. In support of his choice of New York City as his target location, Khan boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack.
Thereafter, Khan continued to urge the UCs to acquire AR-style rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.” Khan repeatedly reiterated his desire to carry out the attack in support of ISIS, and discussed planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the United States. During one communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”
On or about Sept. 4, as Khan said he planned to do in connection with his attack, Khan attempted to reach the U.S-Canada border. To do so, Khan used three separate cars to travel across Canada towards the United States, before he was stopped by Canadian authorities in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.
Khan is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization and one count of attempting to commit acts of terrorism transcending national boundaries. If convicted, he faces a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s New York, Chicago, and Los Angeles Field Offices are investigating the case. The Justice Department is grateful to Canadian law enforcement for their actions in this matter. The Office of International Affairs of the Department of Justice’s Criminal Division accomplished the extradition of Khan from Canada.
Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York and Trial Attorney Kevin C. Nunnally of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint or an indictment merely contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Inmate Sentenced for Prison Bribery and Contraband SchemeRead the Press Release
The United States Attorney for the Southern District of New York, Jay Clayton, announced that ANTHONY ELLISON, a former inmate of the Metropolitan Correctional Center (“MCC”), a federal jail, was sentenced today by U.S. District Judge Andrew L. Carter to 29 months in prison on each of the two counts on which he was previously convicted—and which will run concurrently to one another and consecutively to the federal sentence ELLISON was already serving on a separate case—for participating in wide-ranging bribery and prison contraband conspiracies with MCC employees, inmates, and others.
“Many good New Yorkers believe our prisons are places for incarceration and, at least for some, rehabilitation,” said U.S. Attorney Jay Clayton. “The hope for rehabilitation is illusory in an environment where inmates and staff are trafficking in drugs and other contraband. Today’s sentence demonstrates that this Office and our law enforcement partners are committed to rooting out corruption in our prisons.”
According to the Indictment, public court filings and proceedings, and the evidence presented at trial:
ELLISON, a/k/a/ “Harv,” the defendant, was an inmate at the MCC. ELLISON participated with other inmates and MCC guards in an extensive bribery and contraband distribution scheme within the jail between approximately 2018 and 2021. During the course of the conspiracy, between approximately 2019 and 2020, at least ten MCC inmates, including ELLISON, paid nearly $80,000 in bribes to Perry Joyner, a corrupt MCC correctional officer. The inmates paid the bribes through friends and relatives outside the jail, who used money transfer applications, such as CashApp, to transfer money to associates of Joyner, who then provided the bribes to Joyner himself. In exchange for those bribes, Joyner smuggled large amounts of contraband into the MCC. That contraband included drugs (such as oxycodone, alprazolam, Suboxone, marijuana, and synthetic cannabinoids, commonly known as “K2”), dozens of cellphones, and cartons of cigarettes. ELLISON and other MCC inmates then sold much of that contraband to other inmates at a profit as part of a widespread illicit market within the MCC. For example, ELLISON charged other inmates as much as $100 for a single cigarette and as much as $5,000 for a used iPhone.
In approximately early 2020, Joyner left the MCC, and the jail initiated a series of lockdowns, first to search for contraband and then in response to the COVID-19 pandemic. As a result of those lockdowns and Joyner’s departure, the contraband market in the MCC dried up until ELLISON found a new source of contraband. In particular, between approximately 2020 and 2021, ELLISON conspired and had a sexual relationship with another corrupt MCC employee, Sharon Griffith-McKnight, who provided contraband to ELLISON, most of which he then re-sold to other inmates.
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In addition to today’s prison sentence, ELLISON, 37, of Brooklyn, New York, was sentenced to three years of supervised release and $200 in special assessments—$100 for each count of conviction.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation; the Department of Justice, Office of the Inspector General; the Special Agents of the U.S. Attorney’s Office for the Southern District of New York; and U.S. Customs and Border Protection.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution.
Nigerian Man Sentenced to More Than Five Years for Hacking, Fraud, and Identity Theft SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that KINGSLEY UCHELUE UTULU was sentenced today by U.S. District Judge Paul G. Gardephe to 63 months in prison for his role in a broad hacking, fraud, and identity theft scheme targeting U.S.-based businesses and individuals. UTULU previously pled guilty to conspiracy to commit wire fraud.
“Kingsley Uchelue Utulu took part in a scheme to hack into U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies,” said U.S. Attorney Jay Clayton. “Offshore scammers like Utulu and his co-conspirators may think they can target hard-working Americans with their hacking and fraud schemes and avoid prosecution. The message from the Department and the FBI is clear, they cannot. We are committed to protecting Americans from criminals operating offshore.”
FBI Assistant Director in Charge Christopher G. Raia said: “Kingsley Utulu, a Nigerian national, was part of a scheme that targeted and infiltrated electronic systems of U.S.-based companies to steal more than two million dollars through fraudulent tax returns. Along with his co-conspirators, this defendant’s scheme reached across the globe to exploit sensitive information for financial gain. The FBI will never exempt any individual who seeks to unlawfully profit through deceitful practices, regardless of where they are located.”
According to the Indictment, public court filings, and statements made in court:
Beginning in at least in or about 2019, UTULU and other Nigeria-based conspirators took part in a scheme to hack into U.S-based tax preparation businesses. The conspirators utilized spearphishing emails to obtain access to these business’s electronic systems. Once they had obtained access, the conspirators stole the tax and other identifying information of the business’ customers. The conspirators hacked into several U.S.-based tax businesses, located in New York, Texas, and other states.
The conspirators obtained the stolen identity information of thousands of individuals. They used this information to file fraudulent tax returns with the Internal Revenue Service and state tax authorities. The conspirators sought fraudulent refunds of at least approximately $8.4 million, of which they successfully obtained at least approximately $2.5 million.
In addition to filing fraudulent tax returns, the conspirators used the stolen identities to file fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program. The conspirators were able to obtain at least an additional approximately $819,000 in fraudulent payouts.
UTULU was arrested for his involvement in this scheme while being present in the United Kingdom and was thereafter extradited to the U.S. to be prosecuted.
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In addition to the prison term, UTULU, 38, of Nigeria, was ordered to pay restitution in an amount of $3,683,029.39 and forfeiture in the amount of $290,250.
Mr. Clayton praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
Executive at Investor Relations Firm and Two Associates Plead Guilty to Insider Trading SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ROBERT YEDID, ANDREW KAUFMAN, and MARK JACOBS pled guilty to participating in a five-year insider trading scheme to reap illegal profits from stock and options trading based on inside information about several health care company clients of the investor relations firm where YEDID was employed. Together, YEDID, KAUFMAN and JACOBS made more than $500,000 in illicit gains through this scheme. JACOBS pled guilty today before U.S. Chief District Judge Laura Taylor Swain. YEDID and KAUFMAN pled guilty before Chief Judge Swain on May 29, 2025.
“Robert Yedid betrayed the trust of his employer and its clients by stealing confidential information and passing it to two friends, Andrew Kaufman and Mark Jacobs, to make unlawful, profitable trades based on inside information,” said U.S. Attorney Jay Clayton. “This Office is committed to prosecuting securities fraud and ensuring that insiders and their friends can’t cheat their way to profits. With our law enforcement partners, we will continue to police the financial markets and hold those accountable who misuse nonpublic information for personal gain.”
FBI Assistant Director in Charge Christopher G. Raia said: “Robert Yedid abused his authority as a former investor relations director and provided his friends with material nonpublic information to obtain hundreds of thousands of dollars in illicit profits. By betraying the trust placed in his position, Yedid established an unlawful financial advantage for his insular social circle that was not afforded to all investors. May today’s plea serve as a deterrent to any individual who exploits confidential trading information for personal benefit.”
According to the allegations contained in the Information and statements made in public filings and in public court proceedings:
Between 2019 and 2024, YEDID, KAUFMAN, and JACOBS engaged in a scheme to trade in stocks and options based on material nonpublic information about several publicly traded health care companies, in violation of the duties of trust and confidence that YEDID owed to his employer, an investor relations firm, and to the companies.
YEDID was a director at an investor relations firm that provided public relations services to health care companies, including BioDelivery Sciences International Inc. (“BDSI”), CinCor Pharma (“CinCor”), Inotiv (“Inotiv”), Inspire Medical Systems (“Inspire”), Nano-X Imaging Ltd. (“Nano-X”), and OncoCyte Corp. (“OncoCyte”). In this role, YEDID had access to the content of upcoming press releases, which often contained highly sensitive, non-public, and potentially market-moving news, such as earning reports, regulatory approvals, clinical trial results, and merger and acquisition announcements. YEDID owed a duty of trust and confidence to his employer and its clients and was prohibited from misusing or disclosing the firm’s confidential information for personal gain or to benefit others.
Beginning in 2019, YEDID knowingly and willfully tipped his friends, KAUFMAN and JACOBS, with valuable, nonpublic information of upcoming corporate announcements involving at least six client companies. That confidential information included advanced notice of an upcoming merger for BDSI; clinical trial results for healthcare products being developed by OncoCyte and CinCor; and quarterly earnings announcements for Inspire, Nano-X, and Inotiv.
YEDID understood and intended that the information he provided to KAUFMAN and JACOBS would be used to execute securities trades before the information became public. As expected, KAUFMAN and JACOBS executed trades based on YEDID’s tips. In many cases, KAUFMAN and JACOBS traded aggressively in the securities of the companies, often purchasing shares or options just days before major announcements were made. Together, KAUFMAN and JACOBS traded in stocks and options on at least 17 different occasions based on YEDID’s tips. KAUFMAN generated profits of more than $480,000, and JACOBS generated profits of more than $35,000. In exchange for the tips, KAUFMAN shared half of his illegal profits with YEDID by giving him cash in envelopes during various meetings in New York City.
In November 2024, FBI agents approached YEDID, KAUFMAN, and JACOBS as part of this investigation. Shortly after being contacted by the FBI, KAUFMAN intentionally deleted spreadsheets he maintained that listed the illegal profits he made through trading based on YEDID’s tips. KAUFMAN deleted these records in order to impede and obstruct the FBI’s investigation.
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YEDID, 67, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, and one count of securities fraud, which carries a maximum sentence of 25 years in prison.
KAUFMAN, 68, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 25 years in prison; and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.
JACOBS, 77, of Malvern, Pennsylvania, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
YEDID is scheduled to be sentenced by Chief Judge Swain on September 12, 2025, at 2:30 p.m; KAUFMAN is scheduled to be sentenced by Chief Judge Swain on September 18, 2025, at 11 a.m; and JACOBS is scheduled to be sentenced by Chief Judge Swain on September 19, 2025, at 11 a.m.
The maximum potential sentences 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. 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.
u.s._v._yedid_kaufman_and_jacobs_information.pdfSix Men Sentenced for Illegally Transmitting More Than $15 Million Dollars Using Hawala NetworkRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HIRENKUMAR PATEL, the last of six defendants in a case involving an unlicensed money transmitting business that illegally sent millions of dollars in cash throughout the U.S. and between the U.S. and India, was sentenced to 21 months in prison by U.S. District Judge Kenneth M. Karas. PATEL previously pled guilty to one count of conspiracy to operate an unlicensed money transmitting business and one count of operation of an unlicensed money transmitting business on September 12, 2024, before U.S. Magistrate Judge Victoria Reznik.
“The anonymous transmission of money is a linchpin of international criminal activity, whether hacking, drug dealing, sex trafficking, or terrorism” said U.S. Attorney Jay Clayton. “Unlicensed money transmission organizations, like the ‘halawa’ network operated by Patel and his cohorts, are tailor made for supporting international criminal activity. Together with our law enforcement partners, we will seek to shut down these unlicensed networks and stop the flow of dirty money to criminals who do harm to Americans from abroad.”
FBI Assistant Director in Charge Christopher G. Raia said: “These six defendants engaged in an unregulated money transferring scheme responsible for illegally transmitting $15 million in less than a year. Illicit financial schemes like this one cause damage to our economic system that extends beyond the directly involved bad actors. The sentencings announced today demonstrate the FBI’s commitment to ensuring those who attempt to carry out illegal financial schemes face the repercussions in the criminal justice system.”
According to allegations contained in the Complaint, the Information, court filings, and public court proceedings:
In or about April 2021, law enforcement identified a vendor (“Vendor”) on the dark web who was offering, in exchange for a fee, a service to convert cryptocurrency into cash. The Vendor indicated to an undercover agent that some of his clients made money by selling drugs, his wealthiest clients were hackers, and that he had made approximately $30 million over the prior three years through the conversion of cryptocurrency to cash.
In or about February 2023, law enforcement began working with a confidential source and learned that the Vendor was using a “hawala”[1] to obtain the cash that was ultimately exchanged for the cryptocurrency. As part of this hawala, several of the defendants collected cash along the East Coast of the U.S., which was later delivered to an individual who mailed the cash to the Vendor’s customers. All six defendants participated in the delivery of, and/or coordinated the delivery of, the collected cash. The persons who supplied the cash for collection, in turn, used the hawala to have their cash converted into rupees delivered to designated individuals in India.
Of the approximately $15 million sent through the hawala between in or about February 2023 and in or about September 2023, PATEL was responsible for participating in 42 deliveries of bags of cash totaling more than $7.7 million. Neither PATEL nor his co-defendants were licensed or registered to operate as a money transmitting business in New York or under federal law.
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A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Mr. Clayton praised the outstanding work of the FBI, the U.S. Postal Inspection Service, and the U.S. Attorney’s Office for the Eastern District of Kentucky in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Levander and Timothy Ly are in charge of the prosecution.
Defendant
Age
Convictions
Sentence
Rajendrakumar Patel52Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business27 months in prisonBrijeshkumar Patel32Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business18 months in prisonHirenkumar Patel40Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business21 months in prisonNaineshkumar Patel51Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business12 months and one day in prisonNileshkumar Patel33Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business3 years of probationShaileshkumar Goyani36Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting BusinessTime served
[1] A “hawala” is an unregulated method of transferring money—usually internationally—from one person to another without the money being physically transported from one location another. Rather, someone who seeks to have money transferred relies on brokers who use their own capital to disburse money and informal ledgers to track the receipt and disbursal of money.
Jay Clayton Announces Selection of Sean Buckley as Deputy U.S. AttorneyRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today the selection of Sean Buckley as Deputy U.S. Attorney.
Mr. Buckley joins the Office from Kobre & Kim, where he has served since 2018 and handled a wide variety of securities and other criminal and regulatory matters for companies and individuals. Mr. Buckley previously served as a prosecutor at the U.S. Department of Justice for nearly a decade, where he was most recently the Co-Chief of the Office’s Terrorism and International Narcotics Unit. In that role, he oversaw complex international investigations involving terrorism financing, economic espionage, sanctions violations, and anti-money laundering matters across Europe, the Middle East, Africa, and Asia.
From 2009 to 2018, Mr. Buckley served as an Assistant U.S. Attorney in the Southern District of New York, handling a wide range of national security and international criminal matters.
Prior to joining the government, Mr. Buckley practiced at Willkie Farr & Gallagher LLP from 2003 to 2009. Mr. Buckley received his A.B. from Princeton University, an M.A. from the University of Virginia Graduate School of Arts & Sciences, and his J.D. from the University of Virginia School of Law. He has been recognized with several honors, including the Attorney General's Distinguished Service Award and the Assistant Attorney General's Exceptional Service Award.
“We are excited to welcome Sean Buckley back to the Office as the Deputy United States Attorney for the Southern District of New York,” said U.S. Attorney Jay Clayton. “Sean demonstrated exceptional leadership and case-making skills during his prior service in the Office. He is deeply respected by the New York Bar and embodies the commitment to professionalism and the safety of the people of New York that runs through our Office. We are fortunate to once again benefit from Sean’s tremendous intellect and strategic thinking. With the combination of Sean, Amanda Houle, and Jeff Oestricher, I am confident that the Office could not have a more formidable and effective leadership team.”
Controller of Law Enforcement Union Pleads Guilty to Filing False Tax ReturnRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Harry T. Chavis, Jr., the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced today that DENNIS OSTERMANN, a former Sergeant with the New York City Police Department (“NYPD”), pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. income tax return. OSTERMANN pled guilty today before U.S. Magistrate District Judge Ona T. Wang. The case is assigned to U.S. District Judge Lorna G. Schofield.
“At the direction of a senior union official, Ostermann reported payments as 'legal fees' when they were not,” said U.S. Attorney Jay Clayton. “We all share the responsibility for reporting income and expenses accurately on our tax returns, and no rank or position exempts any person or organization from these obligations.”
IRS-CI Special Agent in Charge Harry T. Chavis, Jr. said: “Ostermann misrepresented the movement of funds, lied on his taxes and betrayed the confidence of union members. He violated the trust of his position as controller for a law enforcement union and as a return preparer. With today’s guilty plea, Ostermann is now taking responsibility for his criminal acts, and he will now face the consequences.”
According to the allegations contained in the Information and statements made in public filings and in public court proceedings:
OSTERMANN served as Controller of a union that represents all current and former sergeants of the NYPD (the “Union”). OSTERMANN also served as a partner of HB Consultants Inc. (“HBC”).
In 2018 and 2019, OSTERMANN paid $150,000 from HBC’s bank account to a third party on behalf of the former President of the Union. OSTERMANN then prepared HBC’s U.S. income tax returns, and falsely reported that the $150,000 payment was for legal fees. This false information not only disguised that OSTERMANN had used HBC-funds to make payments on behalf of the former President of the Union, but also fraudulently reduced the tax liability of HBC and its partners, including OSTERMANN.
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OSTERMANN, 68, of East Rockaway, New York, pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. income tax return, which carries a maximum sentence of three years in prison. OSTERMANN is scheduled to be sentenced by Judge Schofield on August 29, 2025.
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.
Mr. Clayton praised the outstanding work of the IRS-CI and Federal Bureau of Investigation.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alexandra Rothman is in charge of the prosecution.
U.S. Attorney Jay Clayton Announces Selection of White Plains Division ChiefsRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today the selection of Jeff C. Coffman and Benjamin Klein as Chiefs of the Office’s White Plains Division, as well as the retirement of Perry Carbone, Chief of the Office’s Criminal Division, who previously served with distinction as Chief of the White Plains Division.
Mr. Coffman joined the Office as an Assistant U.S. Attorney in the Criminal Division in 2018, following five years as an Assistant U.S. Attorney in the Northern District of New York and one year as a Special Assistant U.S. Attorney in the District of Columbia. Prior to becoming a prosecutor, Mr. Coffman worked at the law firm of Trout Cacheris, PLLC and co-founded and managed a small law firm in Washington, D.C. Mr. Coffman received Bachelor of Science degrees from Virginia Tech and his J.D. from Georgetown University Law Center. After graduating from law school, he clerked for the Hon. James C. Cacheris of the U.S. District Court for the Eastern District of Virginia.
Mr. Klein joined the Office as an Assistant U.S. Attorney in the Criminal Division in 2021. Before becoming a prosecutor, Mr. Klein worked at the law firm of Wachtell, Lipton, Rosen & Katz. Mr. Klein received a Bachelor of Arts from Cornell University, and a J.D. from the Yale Law School, where he served as an editor of The Yale Law Journal. After graduating, Mr. Klein clerked for the Honorable Thomas M. Hardiman of the U.S. Court of Appeals for the Third Circuit.
“I am pleased to announce the selection of Jeff Coffman and Ben Klein as co-chiefs of the Office’s White Plains division,” said U.S. Attorney Jay Clayton. “Jeff and Ben will bring a wealth of prosecutorial talent and experience to lead the critically impactful work of the division. Together with our agency partners, they will drive our commitment to safety and fairness for millions of New Yorkers. On behalf of the hundreds of women and men of the Southern District who have benefited from working with Perry Carbone, I say thank you, Perry, for your commitment to justice and your devotion to the Office and your colleagues. Perry has been a consummate prosecutor for decades and has admirably spent his career as a selfless advocate for public safety. We all thank Perry for doing so much good for so many. I am also especially grateful to Margery Feinzig, Deputy Chief of our Criminal Division, who stepped in as Acting Chief of the White Plains Division during this transition. Her steady leadership, professionalism, and tireless commitment ensured that the White Plains Division continued to function at the highest level. We are fortunate to have had her at the helm.”
Florida Man Sentenced to 42 Months for Multimillion-Dollar Medicare Fraud SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that ALAN SWISS was sentenced to 42 months in prison for participating in a multimillion-dollar conspiracy to defraud Medicare. SWISS pled guilty on January 22, 2025, before U.S. District Judge John G. Koeltl, who imposed today’s sentence.
“Swiss defrauded Medicare through creating, purchasing, and selling millions of dollars’ of false prescriptions for medical equipment,” said U.S. Attorney Jay Clayton. “Fraud of this kind not only wastes taxpayer dollars, but also drives up the cost of healthcare for all. Today’s sentencing sends a clear message: individuals who cheat Medicare will face justice.”
According to statements made in court and publicly filed documents in this case:
From approximately 2016 through April 2019, SWISS operated a call center named Tropical Medical Marketing, Inc., which cold-called Medicare beneficiaries and used their personal and medical information without the beneficiaries’ knowledge or consent, to prepare prescriptions for durable medical equipment (“DME”). SWISS then sold these DME prescriptions to co-conspirators who illegally obtained purported signatures or “authorizations” of health care providers, so that fraudulent claims could be submitted to Medicare for reimbursement.
From approximately 2017 through April 2019, SWISS also operated two DME supply companies: Modern Medical Equipment, Inc., which SWISS used primarily to bill Medicare directly under Medicare Part B, and A&E Medical, Inc., which SWISS used primarily to bill private insurance companies under Medicare Part C, also known as “Medicare Advantage.” To obtain the DME prescriptions that SWISS used to support his unlawful claims to Medicare, SWISS used two unlawful methods: purchasing such prescriptions outright and using patient information that SWISS had generated through his call center and purchasing the purported signatures or authorizations of health care providers. SWISS caused the two DME supply companies that he controlled to submit claims to Medicare for more than $18 million—through the billing company operated by his co-defendants, ERIN FOLEY and TED ALBIN—on which Medicare paid out nearly $6 million.
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In addition to the prison term, SWISS, 52, of West Palm Beach County, Florida, was sentenced to three years of supervised released. SWISS was also ordered to forfeit $6,650,929.76 and pay Medicare restitution in the amount of $6,650,929.76.
Mr. Clayton praised the outstanding investigative work of the U.S. Department of Health and Human Services – Office of Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran, Jackie Delligatti, Brandon Thompson, and William Kinder are in charge of the prosecution.
USDA Employee and Five Others Charged in Multimillion-Dollar Food Stamp Fraud and Bribery SchemeRead the Press Release
Perry Carbone, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515; Charmeka Parker, the Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”); and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Superseding Indictment charging six individuals in connection with a sprawling fraud and bribery scheme that generated over $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (“SNAP”)—colloquially known as food stamps. This is one of the largest food stamp frauds in U.S. history. The defendants—MICHAEL KEHOE, MOHAMAD NAWAFLEH, OMAR ALRAWASHDEH, GAMAL OBAID, EMAD ALRAWASHDEH, and ARLASA DAVIS—are charged with conspiracy to steal government funds and to misappropriate U.S. Department of Agriculture (“USDA”) benefits, among other charges. DAVIS, a USDA employee, is additionally charged with bribery and honest services fraud. The case is assigned to U.S. District Judge Jed S. Rakoff.
“Michael Kehoe and his co-conspirators misappropriated tens of millions of dollars in taxpayer funds meant to help low-income families put food on the table,” said U.S. Attorney Perry Carbone. “This fraud was made possible when USDA employee Arlasa Davis betrayed the public trust by selling confidential government information to the very criminals she was supposed to catch. Their actions undermined a program that vulnerable New Yorkers depend on for basic nutrition. These charges should be a reminder that those who exploit anti-poverty programs for personal gain will be held accountable for their crimes.”
USDA-OIG Special Agent in Charge Charmeka Parker said: “We appreciate the collaboration with our law enforcement partners in pursuing allegations regarding government employees, who use their positions to participate in schemes that exploit taxpayer funded programs.”
FBI Assistant Director in Charge Christopher G. Raia said: “Arlasa Davis, a USDA employee, is alleged to have abused her position and privileged access to confidential government databases to assist her co-conspirators in exploiting the SNAP program, driving tens of millions of dollars in fraudulent transactions. This alleged scheme benefited the defendants while undermining critical safeguards designed to ensure that SNAP assistance reaches only eligible families in need. The FBI will never tolerate any individual who exploits federal financial assistance for personal reward.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial: [1]
The SNAP program uses federal tax dollars to help low-income households purchase food. SNAP recipients use Electronic Benefit Transfer (“EBT”) cards—similar to debit cards—to buy food at participating stores. Those stores, which get license numbers from the USDA, use special EBT terminals to swipe the EBT cards. When a SNAP recipient swipes their EBT card, the system verifies the transaction and electronically deducts the purchase amount from the recipient’s account. The corresponding federal funds are then transferred to the store’s bank account.
Starting in 2019, KEHOE orchestrated a network that supplied approximately 160 unauthorized EBT terminals to stores across the New York area to illegally process more than $30 million in EBT transactions. Working with his codefendants NAWAFLEH, OMAR ALRAWASHDEH, OBAID, and EMAD ALRAWASHDEH, KEHOE submitted approximately 200 fraudulent USDA applications, misappropriating USDA license numbers and, in some cases, doctoring application documents, to obtain EBT terminals for unauthorized stores—including smoke shops and other ineligible businesses.
Critical to the scheme was ARLASA DAVIS, a longtime USDA employee who worked within the very division of the USDA responsible for identifying SNAP fraud. DAVIS abused her privileged access to federal systems to sell hundreds of EBT license numbers enabling over $36 million in fraudulent SNAP redemptions at unauthorized stores. DAVIS photographed handwritten lists of license numbers intended for qualifying stores with her personal cellphone and funneled them to an intermediary who sold them to co-conspirators, including NAWAFLEH, OMAR ALRAWASHDEH, EMAD ALRAWASHDEH, and OBAID, who then used those license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions. In return, DAVIS received substantial bribes that were disguised in communications as, among other things, “birthday gifts” and “flowers.”
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KEHOE, 46, of Long Island, New York; NAWAFLEH, 34, of the Bronx, New York; OMAR ALRAWASHDEH, 37, of the Bronx, New York; OBAID, 39, of the Bronx, New York; EMAD ALRAWASHDEH, 37, of the Bronx, New York; and DAVIS, 56, of Gardiner, New York, are each charged with one count of conspiracy to steal government funds and misappropriate USDA benefits, which carries a maximum sentence of five years in prison, one count of theft of government funds, which carries a maximum sentence of 10 years in prison, and one count of misappropriation of USDA benefits, which carries a maximum sentence of 20 years in prison. DAVIS is additionally charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, one count of bribery, which carries a maximum sentence of 15 years in prison, and one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison. NAWAFLEH is additionally charged with one count of failure to appear, which carries a maximum sentence of 10 years in prison.
The maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Carbone praised the outstanding work of the USDA and FBI, which is also assisting in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Georgia V. Kostopoulos and Joe Zabel are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
kehoe_et_al_superseding_indictment.pdf
[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 therein should be treated as an allegation.
Serial Fraudster “Dr. Cash” Sentenced to Three Years in Prison for Running Ponzi SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that TERRENCE CHALK, a/k/a “Dr. Cash,” was sentenced to three years for committing investment adviser fraud. CHALK previously pled guilty on May 7, 2024, before U.S. District Judge Andrew L. Carter, Jr., who imposed today’s sentence.
“Defrauding retirees, using the common bond of faith to build trust, is a horrible crime, one that disturbs all New Yorkers,” said U.S. Attorney Jay Clayton. “This Office and our law enforcement partners are committed to bringing to justice fraudsters who exploit shared ethnic or religious backgrounds to build false trust. If you suspect ‘affinity fraud’ in or around your place of worship, please contact law enforcement.”
According to the allegations contained in the Superseding Information and statements made in public filings and in public court proceedings:
In 2017, CHALK began marketing an investment fund using the alias “Terrence Cash” or “Doctor Cash.” He avoided using his real name because an Internet search for “Terrence Chalk” would have revealed that in 2006, he had been convicted in federal court of multiple fraud offenses. CHALK’s website advertised him as “the nation’s No. 1 business, money, and wealth coach,” and offered money management and “coaching” sessions in which CHALK promised to share the “hidden secrets of the wealthy” that would change his clients’ “mindset, perspective, and relationship with money.” After engaging his victims in these courses, he would then press them to invest in what he called the “Chairman’s Fund,” which he claimed was invested in a number of pooled investments that would be consistent, quarterly cash payments and high returns.
CHALK targeted elderly investors and sometimes marketed his services through wealth seminars that he held primarily at Black churches. He used this setting to his advantage, holding himself out as a man of faith who was seeking to help other Christians like himself.
At first, CHALK’s victims received their promised quarterly payments and assumed all was as advertised at the Chairman’s Fund. Some of the victims even recruited friends and family members into the fund. But by the end of 2019, many of the victims had stopped receiving payments. When they complained to CHALK, he stonewalled them and even told them—falsely—that they had agreed not to withdraw their funds for 10 years. In total, CHALK convinced approximately 26 individuals to invest approximately $4.8 million in his fund. None of that money appears to have been used to invest in funds, as CHALK had represented to his investors. Most of the money was paid to other corporate entities controlled by CHALK, to pay off earlier investors, or to cover CHALK’s lavish lifestyle. For example, CHALK spent approximately $1.7 million to pay personal credit card bills, spent $17,000 on NBA season tickets, and spent $74,000 on a BMW. After deducting the Ponzi payments that some investors received, the total group of investors still lost a combined $3,210,469 when CHALK’s scheme collapsed.
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In addition to the prison term, CHALK, 62, of Orlando, Florida, was sentenced to three years of supervised release and ordered to pay restitution in an amount to be determined at a later date.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which previously filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Adam S. Hobson is in charge of the prosecution.
Former NYPD Officer and Accident Victim Call Center Owner Both Plead Guilty to Bribery SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York; Michael Alfonso, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that SUZETTE TRIMMINGHAM, a former New York City Police Department (“NYPD”) traffic safety officer, and MERVIN RHYMES, the owner and operator of an accident victim call center, both pled guilty to participating in a bribery scheme. Specifically, TRIMMINGHAM and RHYMES admitted to participating in a scheme in which TRIMMINGHAM provided information of automobile accident victims contained in a non-public NYPD database to RHYMES in exchange for bribes of money and other things of value. TRIMMINGHAM pled guilty yesterday before U.S. District Judge John G. Koeltl, and RHYMES pled guilty today before U.S. District Judge Ronnie Abrams.
“Suzette Trimmingham abused her position as an NYPD traffic safety officer and, in exchange for bribes, sent Mervin Rhymes information about automobile accident victims so that Rhymes’s call center could profit by referring those victims to lawyers and doctors,” said U.S. Attorney Jay Clayton. “Trimmingham and Rhymes made hundreds of thousands of dollars from their scheme. Their pleas highlight this Office’s commitment to pursuing those, including members of law enforcement, who seek to profit by abusing their positions of public trust.”
HSI New York Acting Special Agent in Charge Michael Alfonso said: “Suzette Trimmingham exploited her position of public trust and in turn profited handsomely, alongside her domestic partner Mervin Rhymes, by targeting victims of recent vehicle accidents. Whether at work, off-duty and even on vacation, she took steps to access individuals’ personal details from non-public government databases, and then shared with Rhymes that private, sensitive information so they could further enrich their lifestyle. HSI New York, alongside the FBI and the NYPD, will always place the public’s wellbeing above all else, and will relentlessly pursue bad actors willing to shamelessly betray their sworn duties for their own selfish gains.”
FBI Assistant Director in Charge Christopher G. Raia said: “Suzette Trimmingham, a former NYPD traffic safety officer, abused her position by providing Mervin Rhymes with non-public personal details of automobile accident victims. The defendants prioritized personal greed over safeguarding sensitive victim data. The FBI will never permit any individual, especially a public servant, to share confidential information in exchange for financial incentives.”
According to the allegations contained in the Informations, court records, and statements made in Court:
From at least in or about January 2020 through at least in or about June 2024, while at work as an NYPD traffic safety officer, TRIMMINGHAM reviewed police accident reports (“PARs”), which contained the personally identifiable information of automobile accident victims, for NYPD precincts that were not part of her law enforcement duties. At times, TRIMMINGHAM also reviewed PARs while she was off duty and while on vacation. TRIMMINGHAM then provided the personally identifiable information of accident victims to RHYMES. For example, in or about April 2024, while at work, TRIMMINGHAM reviewed PARs and copied and pasted into a Word document the names and phone numbers of automobile accident victims mentioned in the PARs. That same month, TRIMMINGHAM sent RHYMES dozens of images of documents, each containing dozens of names and phone numbers of automobile accident victims.
RHYMES paid bribes to TRIMMINGHAM in exchange for her providing the personally identifiable information of automobile accident victims to him. For example, on or about January 18, 2021, TRIMMINGHAM told RHYMES, in sum and substance, that she had sent him PARs and that RHYMES was supposed to pay TRIMMINGHAM for the PARs. In response, RHYMES told TRIMMINGHAM that he had paid TRIMMINGHAM for the PARs a few days earlier. TRIMMINGHAM and RHYMES made at least $900,000 from the scheme.
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TRIMMINGHAM, 54, and RHYMES, 61, both of Queens, New York, each pled guilty to one count of conspiracy to commit federal program bribery, which carries a maximum sentence of five years in prison. TRIMMINGHAM is scheduled to be sentenced by Judge Koeltl on October 8, 2025, at 4:30 p.m., and RHYMES is scheduled to be sentenced by Judge Abrams on October 8, 2025, at 11:30 a.m.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as the sentencing of the defendants will be determined by the judges.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and Homeland Security Investigations. Mr. Clayton also thanked the NYPD for its assistance.
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.
u.s._v._trimmingham_information.pdf u.s._v._rhymes_information.pdfBronx Tax Preparer Sentenced to Prison for Filing Tens of Thousands of False Tax Returns Causing $145 Million in Fraudulent Tax LossRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced that RAFAEL ALVAREZ, a/k/a “the Magician,” was sentenced today by U.S. District Judge J. Paul Oetken to four years in prison in connection with his orchestration of a decade-long, $145 million tax fraud scheme. As part of the scheme, ALVAREZ oversaw the filing of tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce his clients’ tax burden. ALVAREZ previously pled guilty to conspiracy to defraud the U.S. and steal government funds and aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return before Judge Oetken on December 17, 2024.
“Rafael Alvarez was touted as ‘the Magician’ when, in reality, he was an elaborate fraudster, depriving the IRS of $145 million in tax revenue and penalizing many honest taxpayers,” said U.S. Attorney Jay Clayton. “All Americans bear the burden of tax fraud and want scamsters of this type brought to justice.”
As alleged in the Indictment and Superseding Information and statements made in public filings and court proceedings:
From at least in or about 2010, up to and including in or about 2020, ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”). ATAX was a high-volume tax preparation company located in the Bronx, New York, which prepared approximately 90,000 federal income tax returns for its customers during this period. ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers. During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the Internal Revenue Service (“IRS”) in ATAX customers’ tax returns. This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS.
In order to further his scheme and limit scrutiny, ALVAREZ specifically recruited to ATAX and personally trained as tax preparers impressionable, easily intimidated workers. When certain ATAX employees questioned ALVAREZ about his fraudulent preparation of returns, ALVAREZ intimidated and threatened these employees to dissuade them from reporting his fraud scheme to authorities.
In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of $145 million in tax revenue. ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.” Additionally, ALVAREZ was a leader of the scheme and attempted to obstruct or impede the administration of justice with respect to the investigation of the tax fraud scheme when he and an ATAX employee made false statements to an IRS Revenue Agent. ALVAREZ’s operation of ATAX helped the company generate approximately $12 million in fraudulent proceeds over the duration of the fraud.
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In addition to the prison term, ALVAREZ, 61, of Cortland Manor, New York, was sentenced to three years of supervised release. ALVAREZ was also ordered to pay the IRS $145 million in restitution and forfeit over $11.84 million in fraudulent proceeds.
Mr. Clayton praised the outstanding investigative work of the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration in this case.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney David R. Felton is in charge of the prosecution.
Former NYCHA Superintendent Sentenced to One Year in Prison After Trial Conviction for Bribery and Extortion OffensesRead the Press Release
Jay Clayton, United States Attorney for the Southern District of New York, announced that COREY GILMORE, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to one year and one day in prison for soliciting and accepting approximately $32,000 in bribes from contractors in exchange for awarding repair contracts or approving repair work worth at least approximately $215,000. GILMORE’s sentence was imposed by U.S. District Judge Lewis J. Liman, who also presided over a one-week trial at which GILMORE was convicted of bribery and extortion under color of official right.
“Corey Gilmore abused his position at NYCHA to demand bribes from contractors for his personal gain,” said U.S. Attorney Jay Clayton. “The women and men of this Office are committed to pursuing those who abuse the public’s trust.”
According to the Indictment, public court filings, statements made in court, and evidence presented during trial:
NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids.
GILMORE, who held multiple superintendent positions at NYCHA developments in the Bronx between 2016 and 2023, demanded and accepted cash in exchange for NYCHA contracts. He required contractors to pay bribes in order to be awarded the contracts. GILMORE typically demanded approximately $1,000—between 10% or 20% of the contract value—depending on the size of the contract. In total, GILMORE demanded and accepted approximately $32,000 dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth approximately $215,000.
Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 63 have pled guilty, and three have been convicted after trial. GILMORE is the third of the NYCHA employees convicted after trial to be sentenced. The cases of the four remaining defendants, who are each presumed innocent unless and until proven guilty, remain pending.
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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In addition to the prison term, GILMORE, 47, of West Haverstraw, New York, was sentenced to two years of supervised release and ordered to pay restitution in the amount of $32,000 and forfeit $32,000.
Mr. Clayton praised the outstanding investigative work of the New York City Department of Investigation, the U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jacob R. Fiddelman, Catherine Ghosh, Emily Deininger, and Matthew King are in charge of the prosecution, with the assistance of Paralegal Specialist Braden Florczyk.
Father and Son Plead Guilty to Defrauding Sports Park BondholdersRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that RANDY MILLER and CHAD MILLER pled guilty to securities fraud and aggravated identity theft in connection with their scheme to defraud municipal bond investors. The defendants pled guilty before U.S. Magistrate Judge Robyn F. Tarnofsky and will be sentenced before U.S. District Judge Lewis A. Kaplan at a later date.
“Randy and Chad Miller’s fraudulent actions resulted in nearly total losses for investors,” said U.S. Attorney Jay Clayton. “As today’s guilty pleas make clear, this Office remains committed to protecting the integrity of the public finance system and holding accountable those who exploit investors’ trust. This case demonstrates the strength of our partnership with the FBI, whose diligent investigation uncovered the defendants’ fraud.”
According to the allegations contained in the Indictment, the Superseding Information, public filings, and statements made in court:
RANDY MILLER and CHAD MILLER defrauded investors in municipal bonds used to fund the development of a major sports complex in Mesa, Arizona called Legacy Park. In connection with the initial $250 million bond offering in August 2020 and supplemental bond offering in June 2021, the defendants lied to potential investors about the interest sports organizations and other potential customers had in using or relocating to Legacy Park. The defendants and their associates forged and altered purported “binding” letters of intent and other documents from those potential customers to make it appear that the customers were committing to holding many events at Legacy Park, with a significant number of spectators, and agreeing to pay large fees – all far beyond what the organizations were considering, if they were considering Legacy Park at all. In some instances, RANDY MILLER and CHAD MILLER signed and directed others to sign customers’ names without the customers’ knowledge or permission. At other times, the defendants copied and directed others to copy the signatures of other customers onto the fabricated letters, again without the customers’ knowledge or permission. As part of their scheme, the defendants forged documents on behalf of numerous persons and organizations, including an organization that promotes sports for disabled athletes.
RANDY MILLER and CHAD MILLER presented the fraudulent documents to prospective bond investors and incorporated them into their solicitation materials by claiming that Legacy Park would be 100% occupied at opening and would generate nearly $100 million in revenue in its first year of operations, more than enough to cover the bond payments.
After the Legacy Park bonds were sold to investors, RANDY MILLER and CHAD MILLER profited personally from the bond proceeds raised. Legacy Park opened in 2022 and failed shortly thereafter, defaulting on its bonds in October 2022 and filing for bankruptcy in May 2023. The project was later sold in bankruptcy for less than $26 million. Of those proceeds, less than $2.5 million went to repay the approximately $284 million owed to Legacy Park bondholders.
* * *
RANDY MILLER, 70, and CHAD MILLER, 41, both of Phoenix, Arizona, pled guilty to one count of securities offering fraud, which carries a maximum sentence of five years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. As part of their guilty pleas, money judgments in the amounts of $7,289,134.89 and $4,798,980.19 were entered against RANDY MILLER and CHAD MILLER, respectively.
The maximum potential sentence in this case is prescribed by Congress and is 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 Federal Bureau of Investigation. 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 Matthew R. Shahabian and Courtney L. Heavey are in charge of the prosecution.
us_v._randy_miller_and_chad_miller_superseding_information.pdfConstruction Manager Sentenced to Prison for Multimillion-Dollar Embezzlement and Tax EvasionRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that JOSE GARCIA was sentenced to 27 months in prison for committing two lengthy fraud crimes—a $4.5 million embezzlement crime and a $2.1 million tax evasion crime. In the embezzlement scheme, GARCIA had a lucrative no-show job with a technology company from 2012 to 2019. GARCIA did no work for the technology company, but GARCIA’s co-conspirator, a technology executive, approved millions in payments to GARCIA and GARCIA’s shell entities. In the tax evasion scheme, GARCIA neither filed tax returns nor paid income taxes from 2011 through 2019. GARCIA previously pled guilty to wire fraud conspiracy and tax evasion before U.S. District Judge Dale E. Ho, who imposed today’s sentence. Three other members of the embezzlement conspiracy have also pled guilty to date.
“Jose Garcia engaged in a lengthy embezzlement scheme that involved a no-show job, fraudulent billings, and largescale cash kickbacks,” said U.S. Attorney Jay Clayton. “Garcia then doubled-down and sought to conceal his embezzlement activities by committing another crime – tax evasion. In all, Garcia stole millions at the expense of hard-working, tax-paying Americans. He then used the proceeds of his frauds to fund a lavish lifestyle. For these brazen crimes, Garcia has been sentenced to prison.”
According to the allegations contained in the Indictment, the Superseding Information to which GARCIA pled guilty, and statements made in public filings and in public court proceedings:
The Embezzlement Scheme
From approximately May 2010 through February 2019, GARCIA’s co-defendant, Mark Angarola, spearheaded a large fraud scheme to unlawfully enrich himself and his co-conspirators (the “Conspirators”) by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which Angarola was employed in a senior position. In total, the embezzlement scheme caused a loss of more than $7 million. GARCIA received the majority of the scheme’s fraud proceeds: $4,554,950.
Angarola was a New York-based Global Account General Manager at the Contractor. He was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”). The Contractor had a service contract with the Client, pursuant to which the Contractor provided IT support services to the Client at locations across the U.S. The Contractor subcontracted certain of this work to a technology solutions company (the “Subcontractor”). Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor. Angarola was responsible for oversight of the Subcontractor’s performance on the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract.
Angarola abused his position to fraudulently enrich himself, his family, and his friends. For instance, he arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals lacked apparent qualifications to perform deskside IT work. He arranged for the Subcontractor to hire, among others, his wife (a homemaker); his former college roommate (a police sergeant); and his close friends, including GARCIA (a construction manager) and GARCIA’s wife (a schoolteacher). Thereafter, various Conspirators falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses. The Subcontractor submitted invoices to the Contractor for the hours purportedly worked and business expenses purportedly incurred by several of the Conspirators, and Angarola, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices. The purported business expenses incurred by several Conspirators, and ultimately paid for by the Contractor at the direction of Angarola, included restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs. In fact, the expenses were personal expenses and were not reimbursable under the Contractor’s policy.
GARCIA was a central beneficiary of the embezzlement scheme and received the majority of the fraud proceeds. These fraud proceeds were paid in part to GARCIA personally, and in part to his shell entities. GARCIA did no work whatsoever for the Contractor or Subcontractor, but invoiced the Subcontractor, month after month, requesting payment for purported “Management Fees.” For instance, at different points in the scheme, GARCIA requested monthly payment of $36,000, $45,000, $51,000, or $60,000. Angarola approved these payments to GARCIA on behalf of his employer, the Contractor. In return, GARCIA paid Angarola cash kickbacks exceeding $1 million. GARCIA participated in the embezzlement scheme despite having fulltime, gainful employment elsewhere as a consultant and project manager in the construction industry.
Financial records reveal that GARCIA spent fraud proceeds on, among other things, private school tuition, rent, luxury travel, luxury items, gym memberships, and sports memorabilia. For instance, GARCIA paid for stays at luxury hotels such as the Ritz Carlton (in four different cities), the Waldorf Astoria, and the Plaza. And GARCIA spent more than $50,000 on luxury items, including expensive purchases at Cartier, Hermes, Gucci, Louis Vuitton, Bulgari, Burberry, Bianca Jewelers, a glass blower in Venice, and a violin shop specializing in Stradivarius models.
Tax Evasion
From 2011 through 2019, GARCIA also committed tax evasion, resulting in a tax loss to the Internal Revenue Service (“IRS”) of approximately $2,116,605. For this nine-year period, GARCIA neither filed tax returns nor paid income taxes. As such, GARCIA failed to report to the IRS the income he derived from the embezzlement scheme as well as the income he derived from other business interests and sources. GARCIA used shell entities to conceal his receipt of income, including by creating such entities, diverting income to such entities, and using entity bank accounts to pay for his personal expenses.
* * *
In addition to his prison term, GARCIA, 53, of New York, New York, was sentenced to three years of supervised release. GARCIA was also ordered to forfeit $4,554,950 and pay restitution in the amount of $7,007,055.
Mr. Clayton praised the outstanding investigative efforts of the Federal Bureau of Investigation, New York Field Office; the IRS-Criminal Investigation, New York Field Office; and the U.S. Department of Labor – Office of Inspector General, Northeast Regional Office.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit, along with the Justice Department’s Tax Division. Assistant U.S. Attorneys Michael D. Neff, Timothy V. Capozzi, and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.
Bronx Woman Sentenced to 63 Months in Prison for Laundering over $2 Million for African Romance ScammersRead the Press Release
Jay Clayton, United States Attorney for the Southern District of New York, announced today that NADINE JAZIMNE WADE was sentenced to 63 months in prison for laundering more than $2 million in fraud proceeds acquired from the victims of romance fraud schemes. WADE’s sentence was imposed by U.S. District Judge Katherine Polk Failla who also presided over a two-week trial at which WADE was convicted of money laundering and bank fraud charges.
“Nadine Wade used lies and deception to launder over two million dollars for scam artists in Nigeria and South Africa,” said U.S. Attorney Jay Clayton. “Those funds were stolen from our most vulnerable – elderly men and women — as part of a cruel romance scam. Today’s sentence should be a reminder that this Office will pursue all persons who participate in online scams targeting our elderly.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
From in or about 2016 through in or about 2021, co-conspirators of WADE based in Nigeria and South Africa committed a series of romance scams against individuals located across the U.S. Those co-conspirators used aliases, including the names “Diego Francisco” and “Richard Francisco” (the “Francisco Alias”), to meet victims on various dating websites. After engaging in romantic conversations with the victims via phone, text, and email, those co-conspirators, posing as the Francisco Alias, asked victims for money. The Francisco Alias then instructed the victims to transfer funds to bank accounts controlled by WADE and others.
WADE received fraud proceeds from victims of the Francisco Alias in personal bank accounts and business bank accounts for her shell company Royal Treasure Chest LLC, a company purportedly involved in, among other things, the sale of women’s clothing and accessories. Once WADE received fraud proceeds, she rapidly depleted her bank accounts of those funds through cash withdrawals, cashier’s checks, and the purchase of vehicles, among other means. After taking her own cut of the money, WADE transferred the bulk of the funds to other members of the scheme.
From in or about 2016 through in or about 2021, WADE controlled more than 18 bank accounts that had deposits totaling over $2 million. Most of those deposits consisted of wire transfers and check or cash deposits from U.S.-based individuals who were victims of the romance fraud scam described above.
* * *
In addition to the prison term, WADE, 30, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,772,618 and forfeit $2,261,791.
Mr. Clayton praised the outstanding work of the U.S. Secret Service and the Internal Revenue Service, Criminal Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Micah F. Fergenson, Matthew J. King, and Dina McLeod are in charge of the prosecution, with assistance from Paralegal Specialist Jayda Foote.
Corporate Insider and Two Associates Plead Guilty to Million-Dollar Insider Trading SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that JONATHAN WHITESIDES, DANIEL MCCORMICK, and BRENT CRANMER pled guilty to committing securities fraud in connection with a scheme to trade in securities of Kaman, Corporation (“Kaman”) using inside information. WHITESIDES and MCCORMICK pled guilty today before U.S. District Judge Margaret Garnett. CRANMER pled guilty before Judge Garnett on May 12, 2025.
“The three defendants engaged in a classic insider trading scheme—buying call options on the stock of a company where insiders know the trading price is about to increase substantially, but the market does not know yet. Investors expect, and our law requires, that insiders will not misuse confidential information for personal gain,” said U.S. Attorney Jay Clayton. “This Office is committed to prosecuting securities fraud and maintaining a level playing field for all investors. We will continue working closely with our law enforcement partners to detect, investigate, and bring to justice those who act to undermine the integrity of our financial markets.”
FBI Assistant Director in Charge Christopher G. Raia said: “The defendants admitted to using material nonpublic information for their benefit—more than one million dollars in illicit gains. Insider trading is insidious, damaging the integrity of our financial institutions. The FBI will hold accountable those who attempt to illegally profit from securities fraud schemes in the criminal justice system.”
According to the allegations contained in the Information and Superseding Information and statements made in public filings and in public court proceedings:
WHITESIDES, MCCORMICK, and CRANMER engaged in a scheme to reap illegal profits by misappropriating and trading on material nonpublic information concerning the planned acquisition of Kaman, a publicly-traded company, in violation of duties of trust and confidence owed to the company and its shareholders.
Beginning December 18, 2023, CRANMER, who was an executive at a Kaman subsidiary, learned that Kaman was negotiating an all-cash acquisition at a premium price. CRANMER promptly shared this confidential information with his friend, WHITESIDES, intending for it to be used to purchase Kaman securities before the public announcement of the acquisition. Acting on this information, WHITESIDES acquired Kaman call options in both his own account and in an account in the name of a family member. WHITESIDES subsequently shared the confidential information with his friend, MCCORMICK, who then purchased Kaman stock and call options. Both WHITESIDES and MCCORMICK knew they were trading on confidential information obtained through a breach of a duty owed to Kaman.
Dissatisfied with his anticipated compensation from the acquisition, CRANMER expressed interest in purchasing Kaman securities through an intermediary before the public announcement of the acquisition, acknowledging he was restricted from trading directly. WHITESIDES attempted to arrange a nominee trader for CRANMER, asking MCCORMICK if he would be “comfortable trading on behalf of others” and “using others[’] money.” CRANMER provided WHITESIDES with $10,000 to fund purchases of Kaman options through MCCORMICK. However, no trades were executed on CRANMER’s behalf before the acquisition announcement.
When Kaman publicly announced on January 19, 2024, that it had agreed to be acquired by a private equity firm in a premium, all-cash transaction, Kaman’s share price rose considerably. WHITESIDES and MCCORMICK sold their Kaman securities that same day, collectively generating more than $1 million in illegal profits. Afterwards, WHITESIDES attempted to conceal evidence by deleting incriminating text messages.
* * *
JONATHAN WHITESIDES, 46, of Mission Viejo, California, DANIEL MCCORMICK, 61, of Coto de Caza, California, and BRENT CRANMER, 52, of Mission Viejo, California, were each charged with securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison.
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. WHITESIDES is scheduled to be sentenced by Judge Garnett on October 3, 2025, at 10:30 a.m. MCCORMICK is scheduled to be sentenced by Judge Garnett on September 26, 2025, at 10:30 a.m. CRANMER is scheduled to be sentenced by Judge Garnett on November 10, 2025.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson and Justin V. Rodriguez are in charge of the prosecution.
court_ex._2_executed_whitesides_plea_agreement.pdf court_ex._2_executed_cranmer_plea_agreement.pdf court_ex._2_executed_mccormick_plea_agreement.pdfU.S. Attorney Charges Eastchester Man with Sexual Exploitation of A Child and Receipt and Distribution of Child PornographyRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today the arrest of THOMAS JAMES PUCCINI, 28. PUCCINI is charged with the sexual exploitation of three minors and with receiving and distributing child pornography. PUCCINI was arrested today and presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.
“Thomas James Puccini’s alleged crimes are every parent’s nightmare,” said U.S. Attorney Jay Clayton. “Puccini, a football coach, held himself out as a trusted member of his school community, yet he was preying on our most innocent and vulnerable. The women and men of the Southern District will use every tool available to bring to justice those who exploit our children.”
HSI New York Acting Special Agent in Charge James Manning said: “As alleged, the defendant violated parents’ and students’ trust through his vile acts against children. A wolf in sheep’s clothing, he worked closely with kids and teenagers nearly every day, all allegedly while hiding his shameful dark side of exploitation, and committing crimes against the same minors placed under his care. The abhorrent crimes of which he is accused have no place in our society, and I commend HSI New York’s Hudson Valley investigators, alongside our law enforcement partners, for placing the safety of vulnerable New Yorkers above all else.”
Westchester County District Attorney Susan Cacace said: “For months, our criminal investigators worked hard to build the strongest possible case against the defendant, and today’s federal charges are the product of these efforts. I extend my thanks to U.S. Attorney for the Southern District of New York Jay Clayton for his collaboration and partnership on this case. Our office will continue to assist S.D.N.Y. throughout all phases of Mr. Puccini’s prosecution.”
As alleged in the Complaint filed on May 20, 2025 in White Plains federal court and statements made in court[1]:
THOMAS JAMES PUCCINI worked as a football coach for a high school (“School-1”) in Westchester County. In July of 2024, PUCCINI became the interim athletic director for the school district in which the high school was located.
Victim-1: In November 2021, Victim-1, who was 17 years old and a student at School-1, was contacted by a Snapchat account with the name “alex_fundi2.” Victim-1 received a nude image of a female from “alex_fundi2” and believed that he was communicating with a female. “She” told him that she knew him and went to School-1. Victim-1 sent “her” nude photos of himself, including photos showing his penis. After sending images for approximately a week or two, Victim-1 blocked the “alex_fundi2” account. Then, Victim-1 received messages from a CashApp account (“CashTag-1”) directing Victim-1 to add “alex_fundi2” back. The messages stated, among other things, “I have your pics and vids,” and told Victim-1 to “add me or I send your pics.” Victim-1 unblocked “alex_fundi2” and sent “alex_fundi2” sexually explicit images of Victim-1.
Victim-1 continued to send sexually explicit images to “alex_fundi2” until in or about 2023, when Victim-1 was a freshman in college.
The user of CashTag-1 provided CashApp with the name "Thomas Puccini," PUCCINI’s date of birth, and PUCCINI’s address in Westchester. Records from Snapchat relating to the “alex_fundi2” account show that an IP address that returned to PUCCINI’s residence in Westchester County was used over 13,000 times to access the "alex_fundi2" account. Further, the “alex_fundi2” account is associated with an email that begins with “puccini01” and ends in “.edu.”
Victim-2: Victim-2 and other middle-schoolers used School-1’s weight room to prepare for Junior Varsity football. PUCCINI supervised them in the weight room. Beginning when Victim-2 was 13 years old and in eighth grade, PUCCINI communicated with Victim-2 through Snapchat, using a Snapchat account with the user name, “tommytutts66,” and requested that Victim-2 take and send PUCCINI photos and videos of Victim-2’s penis. PUCCINI also sent Victim-2 photos of his penis. PUCCINI specified exactly what he wanted Victim-2 to show him, and, based on his instructions, Victim-2, on numerous occasions, took and sent PUCCINI photos and videos showing various angles of Victim-2’s penis, showing Victim-2 masturbating, showing Victim-2 “finishing” (i.e., ejaculating) with the audio on, and showing Victim-2 laying with his semen on his chest. On numerous occasions, at PUCCINI’s request, PUCCINI and Victim-2 would “race” to see who could masturbate to ejaculation first. The winner would have to send a video or photo capturing the “finish.”
A search warrant executed at PUCCINI’s residence on November 1, 2024 resulted in the seizure of, among other things, PUCCINI’s desktop computer. The computer contained an iCloud backup with approximately 8000 messages to or from Victim-2 between January 2017 and December 2020. In hundreds of these messages, PUCCINI referred to masturbating, to Victim-2’s penis, and/or requested that Victim-2 take and send him photos of his penis.
Victim-3: Victim-3, who was 16 years old, and “alex_fundi2” communicated via Snapchat in 2023. Victim-3 took and transmitted sexually explicit images to “alex_fundi2” in exchange for the promise of expensive gifts. On January 10, 2023, at approximately 11:24 p.m., “alex_fundi2” told Victim-3, “If I send you for the jacket, I’m going to need you to send those 2 vids and then…. As many vids as I want and of anything that I want until Monday.” At 11:25 p.m., Victim-3 responded, “monday” and “jesus” and “and as long as it doesn’t involve ass stuff.” Thereafter, Victim-3 transmitted numerous files to “alex_fundi2” containing sexually explicit images of Victim-3.
Victim-4: Victim-4 and “alex_fundi2” communicated via Snapchat in 2023. Victim-4 told “alex_fundi2” that he was 18 years old and “alex_fundi2” told Victim-4 that he was similarly aged. “Alex_fundi2” asked Victim-4 for sexually explicit images of Victim-4 when he was 15 or 16. On June 11, 2023, at approximately 1:50 p.m., Victim-4 transmitted a sexually explicit photo and a sexually explicit video of Victim-4 to “alex_fundi2.” In both the photo and video, Victim-4 was 15.
In November 2024, PUCCINI was charged in Westchester County, New York with Grand Larceny in the Fourth Degree.
On an occasion in February 2022, the “alex_fundi2” account engaged in a conversation with a user (“User-1”) on Snapchat and asked, “Can I give you a snapchat to add and you try to get pics/vids from the account?” User-1 told “alex_fundi2,” “Sure” and “I don’t mind being yo undercover bud.” Thereafter, “alex_fundi2” transmitted a Snapchat user name to User-1. The Snapchat user name belonged to a student who had attended School-1 from 2015 to 2019. PUCCINI’s desk top computer contained thousands of messages with that student from in or about August 2015 to September 2020. Many of the messages contained requests for sexually explicit images from the student.
PUCCINI changed the display name of the “alex_fundi2” account on multiple occasions and the various display names he used included, Young & Horny,” “Young NY Vers Bottom Horny,” “Zach,” “Alexandra Fundi,” “Alex Fundi,” “Horny Twink,” and “zach _parker0.”
There may be more victims of this alleged conduct. If you have information to report or you had contact with the Snapchat accounts, “alex_fundi2,” “tommytuts66,” or any of the display names described above contact Homeland Security Investigations through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
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PUCCINI, 28, of Eastchester, New York is charged in Counts One, Two and Three with sexual exploitation of a minor. Counts One, Two and Three each carry a maximum sentence of thirty years’ imprisonment and a mandatory minimum of fifteen years’ imprisonment. Count Four carries a maximum of twenty years’ imprisonment and a mandatory minimum of five years. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the efforts of Homeland Security Investigations, the Westchester County District Attorney’s Office, the Westchester County Police Department, the Eastchester Police Department, the Rockland Police Department, the Lake Forest Police Department, and the Cullman County Sheriff’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
complaint.pdf[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.
NY Man Charged with Using Sham Blockchain Venture to Defraud InvestorsRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JEREMY JORDAN-JONES, the self-styled “founder” of a purported technology company, with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft. JORDAN-JONES was arrested today and is expected to be presented before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge Arun Subramanian.
“As alleged, Jordan-Jones, capitalizing on the publicity around blockchain technology, perpetrated a brazen scheme to defraud investors,” said U.S. Attorney Jay Clayton. “He touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships. In reality, Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle. This should be an example to would be financial fraudsters that the women and men of the Southern District and the FBI are watching and to the investing public that fraudsters often use the promise of new technology to cloak their schemes.”
FBI Assistant Director in Charge Christopher G. Raia said: “Jeremy Jordan-Jones allegedly defrauded investors of more than one million dollars through misrepresentations of his purported company's capabilities, partnerships, and investment intentions. Jordan-Jones's alleged blatant lies funded his personal lifestyle at the expense of unknowing victims. The FBI is committed to apprehending any individual who employs deceitful tactics and illusionary business models to steal from trusted investors.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about January 2021 through at least in or about November 2022, JORDAN-JONES engaged in a scheme to defraud investors in Amalgam Capital Ventures (“Amalgam”), a technology startup that purported to offer point-of-sale systems and blockchain-based payment and security solutions. JORDAN-JONES misrepresented that Amalgam had developed functioning software products, falsely claimed that it had lucrative high-profile partnerships with major-league sports teams and prominent payment-processing platforms, and made misleading statements about Amalgam’s financial condition. In perpetrating his fraudulent scheme, JORDAN-JONES submitted falsified financial documents to a bank. He also falsely represented to investors that their money would be used for listing a proprietary cryptocurrency coin on global cryptocurrency exchanges, as well as for hardware, software, and other expenses associated with the Amalgam’s operations.
All the while, JORDAN-JONES well knew that Amalgam had no operable products, few—if any—customers, and zero legitimate business partnerships. Based on his materially false and fraudulent representations, JORDAN-JONES obtained over $1 million from investors and lenders, much of which he used for his personal benefit. Ultimately, Amalgam ceased operations, and investors and lenders suffered significant financial losses.
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JORDAN-JONES is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; one count of false statements to a financial institution, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
The case is being prosecuted by the Office’s Securities and Commodities Task Force. Assistant U.S. Attorney Marguerite B. Colson 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.
us_v._jordan-jones_25_cr_232.pdf[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 descried therein should be treated as an allegation.
International Diamond Dealer Charged with Fraudulent Scheme to Obtain over $3 Million of DiamondsRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging business man and diamond dealer EDWARD CARLOS ST. MARY III with wire fraud in connection with his scheme to fraudulently obtain diamonds belonging to an international exporter and manufacturer of natural diamonds (the “Diamond Company”). ST. MARY was arrested yesterday morning and was presented yesterday in the U.S. District Court for the Southern District of Texas.
“As alleged, Edward Carlos St. Mary orchestrated an international scheme to steal over $3 million of uncut diamonds,” said U.S. Attorney Jay Clayton. “He falsified bank records and repeatedly lied to line his own pockets. New York’s Diamond District is one of the world’s foremost destinations for the sale of precious gems, and this Office and its law enforcement partners are committed to ensuring both wholesale and retail buyers can engage in the market free from fraud.”
FBI Assistant Director in Charge Christopher G. Raia said: “Edward Carlos St. Mary allegedly unlawfully procured hundreds of carats of diamonds worth millions of dollars with fabricated documents and promises of payment that were never upheld. The defendant allegedly disrupted the operations of an international company, and utilized our city to do so. The FBI remains committed to investigating anyone who orchestrates illicit surreptitious schemes to enrich themselves.”
As alleged in the Complaint:[1]
In or about April 2021, ST. MARY met with the owner of the Diamond Company in India and agreed to purchase uncut diamonds from the Diamond Company. Between in or about April 2021 and in or about June 2021, ST. MARY and the owner of the Diamond Company exchanged numerous messages regarding the sale of diamonds to ST. MARY. They eventually agreed that ST. MARY would buy approximately 287 carats of diamonds (the “Diamonds”) from the Diamond Company for approximately $3.275 million. During that time, ST. MARY sent fraudulent documents and made numerous misrepresentations to the owner of the Diamond Company regarding his communications with his bank (“Bank-1”), the funds in his accounts at Bank-1, and his ability to pay the Diamond Company for uncut diamonds.
On or about June 11, 2021, the owner of the Diamond Company delivered the Diamonds to a company specializing in secure transportation and the handling of valuable goods (the “Security Company”) to transport the Diamonds to the U.S. and provide them to ST. MARY once he made the necessary payments. The Diamonds arrived in the U.S. the following week. After the Diamonds arrived in the U.S., ST. MARY made numerous false statements to the owner of the Diamond Company to explain why he had not yet paid for or picked up the Diamonds.
On or about August 4, 2021, ST. MARY picked up the Diamonds from the Security Company’s New York City location—without paying for them and without the Diamond Company’s knowledge or authorization. Thereafter, ST. MARY continued to make false statements to the owner of the Diamond Company to suggest that the Diamonds were still in the care of the Security Company and to provide various explanations for why he had not yet paid the Diamond Company. By November 2021, ST. MARY began making false statements to suggest that he had, in fact, paid for the Diamonds and sent the owner of the Diamond Company a fraudulent account statement purporting to show a wire transfer of over $3 million from ST. MARY to the Diamond Company. No such wire transfer was ever made.
On or about December 7, 2021, ST. MARY sent a message to the owner of the Diamond Company admitting that he had not paid for the Diamonds and falsely stating, in substance and in part, “this entire time my banker has told me that the funds were in your account. He assured me that you had already been paid. I will have it done as quick as I possibly can.” However, there are no records of ST. MARY communicating with anyone at Bank-1 about a payment for the Diamonds.
To date, ST. MARY has neither paid for nor returned the Diamonds.
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ST. MARY, 55, of Houston, Texas, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the FBI on this case.
This case is being handled by the Office’s General Crimes Division. Assistant U.S. Attorneys Remy Grosbard and Ariana Bloom are in charge of the prosecution.
[1] The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
International Stock Manipulator Sentenced to 20 Months for Pump-And-Dump SchemeRead the Press Release
The United States Attorney for the Southern District of New York announced today that RONALD BAUER was sentenced to 20 months in prison for manipulating seven different stocks in a “pump-and-dump” scheme designed to fraudulently inflate the value of BAUER’s own shares in those companies. BAUER pled guilty on November 4, 2024, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
“From overseas, Bauer manipulated stock prices to enrich himself at the expense of unsuspecting investors,” said U.S. Attorney Jay Clayton. “Today’s sentencing sends a clear message: those who seek to manipulate U.S. markets from outside the United States will face justice. We thank our domestic and overseas partners and will continue to work with them to keep our markets fair.”
According to the Indictment, public filings, and statements made in court proceedings:
BAUER, a Canadian-UK citizen, orchestrated multiple “pump-and-dump” schemes after previously being sanctioned by the SEC in 2006, when he received a five-year ban from serving as an officer of public companies or participating in penny stock offerings. In his guilty plea, BAUER admitted to securities fraud involving seven issuers. His sophisticated scheme involved gaining controlling interest of unrestricted stock, then concealing ownership by distributing shares among nominee entities through a Swiss corporation called Blacklight, S.A. While maintaining behind-the-scenes trading authority and significant influence over company management, BAUER and his co-conspirators orchestrated purposeless “match trades” —i.e., placing buy and sell orders in the same stock on the same day—and funded promotional campaigns without disclosing their controlling interest or intent to sell. They took deliberate steps to hide that nominee entities were funding these promotions. During or shortly after generating market interest, BAUER sold large percentages of holdings and collected the proceeds through the elaborate network of nominee entities he controlled.
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In addition to his prison term, BAUER, 49, of London, United Kingdom, was sentenced to three years of supervised release and ordered to forfeit approximately $4,377,228.74.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation. He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom, in particular the Crown Prosecution Service and the National Crime Agency’s National Extradition Unit. Finally, Mr. Clayton also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against BAUER.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, and Vladislav Vainberg are in charge of the prosecution.
Correction Officers Charged with Years-Long Healthcare Fraud Scheme Following Use of Force Incidents on Rikers IslandRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); and Lucy Lang, the Inspector General for the State of New York, announced today the unsealing of three Indictments charging one current and two former correction officers employed by the New York City Department of Correction (“DOC”) at Rikers Island with healthcare fraud, mail fraud, and false statements related to healthcare matters. TODD FAUSTIN, JOVANNY CONCEPCION, and STEVEN MURPHY were arrested earlier today and presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger. Their cases are assigned to U.S. District Judges Loretta A. Preska and Lewis J. Liman.
U.S. Attorney Jay Clayton said: “As alleged, the defendants defrauded New Yorkers by making hundreds of thousands of dollars in fraudulent workers compensation claims. Today’s arrests demonstrate this Office’s continuing commitment to protecting New Yorkers from corruption at Rikers Island.”
DOI Commissioner Jocelyn E. Strauber said: “New York City’s workers’ compensation system is a vital resource for City employees injured on the job. These three current and former Department of Correction officers, as charged, defrauded that system of almost $1 million in total, through false claims about physical injuries. To reduce the risk of future fraud, DOI recommends reforms to the DOC and the New York City Law Department’s policies and procedures, set forth in a report issued today. I thank the Law Department for referring concerns about workers’ compensation claims to DOI, and for its assistance in this investigation. I also thank the U.S. Attorney’s Office for the Southern District of New York and our other law enforcement partners for their continuing commitment to protect City funds.”
New York State Inspector General Lucy Lang said: “Public trust in government requires that law enforcement acts with the utmost integrity. Lying about an ongoing injury to get workers’ compensation benefits while engaging in strenuous employment and activities, as alleged here, is an affront to the honest workers whom the system is built to protect. With thanks in this case to our partnership with the Southern District of New York and the NYC Department of Investigation, we will continue to seek accountability for anyone who undermines New Yorkers’ trust by defrauding the workers’ compensation system.”
As alleged in the Indictments:1
The New York State Worker’s Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including DOC employees. Payments by the Board made to DOC employees are paid from the New York City Treasury. For years, FAUSTIN, a current DOC employee, and CONCEPCION and MURPHY, who were both formally employed by DOC, were DOC correction officers assigned to work at Rikers Island. During that time period, each defendant engaged in a years-long scheme to falsely claim that they were injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force. To effectuate this scheme, each defendant made false statements to the Board, their own physicians, and independent medical examiners claiming these fake injuries. In total, FAUSTIN received $469,705.39 in benefits to which he was not entitled; CONCEPCION received $232,427.97; and MURPHY received $294,037.83.
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CONCEPCION, 33, of New York, New York, is charged with one count of healthcare fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.
MURPHY, 31, of New York, New York, is charged with one count of healthcare fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.
FAUSTIN, 43, of New York, New York, is charged with one count of healthcare fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements related to health care matters, 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 the judge.
Mr. Clayton praised the outstanding investigative work of DOI, the New York State Office of Inspector General, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York. Mr. Clayton also thanked the New York City Police Department’s Internal Affairs Bureau and New York State Police for its cooperation and assistance.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division and the Public Corruption Unit. Assistant U.S. Attorneys Kaiya Arroyo, Frank Balsamello, and Alexie Rothman are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._concepcion_indictment.pdf u.s._v._faustin_indictment.pdf u.s._v._murphy_indictment.pdf
1 As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Drug Trafficker Presented on Federal Charges After Turning Hotel Room into Clandestine Drug LabRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Frank A. Tarentino, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced today the presentment of PEDRO MARTE in White Plains federal court on a Complaint charging MARTE with two counts of possession with intent to distribute controlled substances.
U.S. Attorney Jay Clayton said: “As alleged, Pedro Marte turned a New Rochelle hotel room into a dangerous drug lab. A law enforcement investigation revealed that Marte possessed large quantities of cocaine, and deadly fentanyl. We should all be able to stay in a hotel without worrying about exposure to dangerous and potentially lethal drug trafficking. The Women and Men of the Southern District, together with our law enforcement partners, will do everything in our power to protect our community from those who put innocent lives at risk.”
DEA Special Agent in Charge Frank A. Tarentino said: “Pedro Marte’s use of his hotel room as a clandestine drug lab not only placed the lives of innocent guests in danger but was reckless and unconscionable. We are thankful to our law enforcement partners and our first responders for their quick actions. Without their immediate response, the results could have been catastrophic.”
As alleged in the Complaint:[1]
On or about the evening of April 6, 2025, law enforcement and fire department personnel responded to reports of an incident in a hotel in New Rochelle. Upon entering the hotel, they observed damage to 27 rooms. Law enforcement then entered the room where the hotel’s sprinkler systems had first been activated and observed evidence of a significant fire, as well as equipment and materials consistent with a clandestine drug lab for converting powder cocaine into crack cocaine. After determining that MARTE had rented the room in question, law enforcement officers searched the storage locker that MARTE had visited immediately prior to arriving at the Residence Inn, where they found approximately three kilograms of a substance that tested positive for cocaine, 12.2 grams of a substance that tested positive for fentanyl, and drug distribution paraphernalia.
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MARTE, 47, of New York, New York, is charged with one count of possession with intent to distribute cocaine, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison, and one count of possession with intent to distribute fentanyl, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the DEA, the New Rochelle Police Department, and the New Rochelle Fire Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Carmi Schickler is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._marte_complaint.pdf
[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.
Cargo Airline Operator Sentenced to Two Years in Prison for Paying Millions in Kickbacks in Large-Scale Scheme to Defraud Cargo AirlineRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that SKYE XU was sentenced to two years in prison by U.S. District Judge Jesse M. Furman for his part in a scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of more than $32 million dollars in revenue. XU previously pled guilty to conspiracy to commit wire fraud and honest services wire fraud, wire fraud, and conspiracy to commit money laundering.
U.S. Attorney Jay Clayton said: “During the COVID-19 pandemic, Skye Xu paid approximately $4.4 million in kickbacks to Polar executives to obtain highly lucrative business from Polar. The Polar executives concealed the kickbacks from Polar using shell companies. Corruption of this type has costs that extend way beyond Polar’s or any one company’s bottom line. Today’s sentence should be a reminder that commercial bribery has no place in America.
According to the charging documents and other public filings and statements made in public court proceedings:
From at least in or about November 2020 through in or about July 2021, XU operated Sky X Airlines, LLC, a cargo airline company based in California. During those nine months, and without Polar’s knowledge, XU paid approximately $4.4 million in kickbacks to shell companies controlled by three senior executives of Polar (the “Executive Defendants”) in exchange for two lucrative business contracts with Polar. These fraudulently obtained contracts earned XU and his cargo airline approximately $46 million in gross revenue and nearly $10 million in net revenue based on the sales of unused space on passenger airlines to transport cargo during the COVID-19 pandemic.
The approximately $4.4 million in kickbacks that XU paid to the Executive Defendants in a nine-month span was part of more than $20 million in kickbacks and other financial benefits that the Executive Defendants and other co-conspirators received from certain Polar customers and vendors from at least 2009 to at least 2021 in exchange for ensuring that those vendors and customers received favorable business arrangements with Polar. The fraud that XU and his coconspirators perpetrated—which involved a substantial portion of Polar’s senior management and at least ten customers and vendors of Polar—led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade.
XU was the last of 10 defendants charged in this case to be convicted. Five of the 10 charged defendants have previously been sentenced.
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In addition to the prison term, XU, 43, of West Covina, California, was sentenced to three years of supervised release. XU was also ordered to forfeit $4,487,830 and to make restitution to Polar in the amount of $1,390,000.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla, Kevin Mead, Qais Ghafary, and Jerry J. Fang are in charge of the prosecution.
Second Former High-Ranking FDNY Official Sentenced to Prison for Role in Bribery ConspiracyRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that ANTHONY SACCAVINO was sentenced to 36 months in prison for participating in a conspiracy to solicit and receive bribes in his role as the Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”). SACCAVINO previously pled guilty on January 29, 2025, before U.S. District Judge Lewis J. Liman, who also imposed today’s sentence.
U.S. Attorney Jay Clayton said: “Anthony Saccavino undermined the New York City Fire Department, an institution he swore to serve. Chief Saccavino led a pay-to-play bribery scheme that would offend the sensibilities of every hard-working New Yorker. Public officials who violate the public trust for financial gain will be pursued vigorously by our Office and our law enforcement partners.”
According to the Indictment, plea agreement, and statements made in court:
From 2021 to 2023, SACCAVINO was the leader of a conspiracy to solicit and receive $190,000 in total bribe payments from a former FDNY firefighter named Henry Santiago, Jr. In exchange for those bribe payments, SACCAVINO and another high-ranking official at the FDNY, Brian Cordasco, used their authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers. SACCAVINO personally profited $57,000 as part of this scheme. To carry out this conspiracy, SACCAVINO lied to his BFP subordinates to justify otherwise improper expediting requests. SACCAVINO also lied to law enforcement when interviewed about his involvement in the scheme.
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If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact [email protected] or (212) 825-2402. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
* * *
In addition to the prison term, SACCAVINO, 61, of New York, New York, was sentenced to two years of supervised release and ordered to pay forfeiture of $57,000 and a fine of $150,000.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.
Statement of U.S. Attorney Jay Clayton on Court-Ordered Reforms at Rikers IslandRead the Press Release
The Court’s findings and appointment of a remediation manager are a welcomed and much needed milestone. Rikers is not working, for its over 7,000 people in custody, the correction officers and staff who work there, or the people of New York. The Constitutional rights of people in custody are not being protected. The Court’s order provides the manager with broad authority, requires consultation and cooperation between the manager and the Commissioner of the Department of Correction, and, importantly, requires the development of a benchmarked plan for improvement and returning authority to the City. The women and men of the Southern District stand ready to work with the Court Monitor, the new manager, and the Commissioner to finally achieve sustainable and lasting reform of the City’s jail system.
nunez_opinion.pdfManhattan Gang Member Sentenced to 25 Years for 2019 Murder of Innocent BystanderRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced that LUIS FILPO was sentenced today to 25 years in prison for murdering 24-year-old Roberto Vasquez, an innocent bystander who was mistaken for a gang rival. FILPO previously pled guilty to conspiracy to commit murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering. U.S. District Judge Paul A. Engelmayer imposed today’s sentence which was imposed to run consecutively to a state sentence the defendant is serving.
U.S. Attorney Jay Clayton said: “Luis Filpo walked up to a car and opened fire, killing Vasquez and wounding another occupant. What makes this brazen and senseless crime even more tragic is that Filpo wrongly believed Vasquez was a gang rival. Thanks to the hard work of the women and men of the Office and our law enforcement partners, Filpo will be held accountable for his crimes, and gang members are on notice that combatting gang-related crime is a priority of Federal law enforcement.”
As detailed in public filings and public court proceedings:
From at least 2016 through March 2020, FILPO was a member of “the 200s,” a street gang based in the Inwood neighborhood of Manhattan. In order to fund the gang, protect its territory, and promote its standing, members of the 200s engaged in, among other things, narcotics trafficking and other acts of violence, including murder. Members of the 200s sold narcotics in the gang’s territory and engaged in shootings as part of their gang membership.
On January 31, 2019, FILPO saw Vasquez and believed he was a gang rival, even though Vasquez was not. FILPO and other 200s gang members followed a car in which Vasquez was a passenger. When Vasquez’s vehicle parked, FILPO walked up to the car and opened fire, killing Vasquez and wounding another occupant in the car. Vasquez was 24 years old.
In imposing the sentence, Judge Engelmayer remarked that FILPO’s crime was “as serious as it gets,” adding that FILPO made himself “judge, jury, and executioner.”
* * *
In addition to his prison term, FILPO, 25, of New York, New York, was sentenced to three years of supervised release.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew S. Andrews, Frank J. Balsamello, Patrick R. Moroney, and Thomas J. Wright are in charge of the prosecution.
Real Estate Developer Charged and Pleads Guilty to Multi-Year Investment Fraud SchemeRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and Edward Gallashaw, the Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced today the filing of an Information charging BARRY BREEMAN with engaging in a scheme to defraud investors who believed they were investing in real estate developments. BREEMAN also entered a guilty plea to the Information in a proceeding today before U.S. Magistrate Judge Stewart D. Aaron. The case has been assigned to U.S. District Judge Gregory H. Woods.
U.S. Attorney Jay Clayton said: “As he admitted today in federal court, Barry Breeman stole more than $13 million dollars from dozens of investors. He falsely represented to investors that they were investing in valuable real estate projects, but in reality, Breeman had no connection to these investments and pocketed their money. Breeman’s conduct has led to his conviction, and he now faces serious time in federal prison for his fraud scheme.”
USPIS Acting Inspector in Charge Edward Gallashaw said: “Investors placed their trust in Breeman, who devised a scheme to mislead and defraud investors out of more than $13 million. His arrest demonstrates that the U.S. Postal Inspection Service is dedicated to investigating fraud and bringing to justice those who break the rule of law.”
According to the allegations contained in the Information:
From at least in or about 2018, up to and including at least in or about 2024, BREEMAN solicited investments in various real estate projects through false and misleading statements and then misappropriated investor funds by diverting them for personal use.
For years, BREEMAN worked as a real estate developer specializing in projects in Latin America. In or about 2018, after suffering a professional setback in his legitimate real estate business, BREEMAN began to solicit investments in sham real estate projects to make up for the loss of income in his legitimate business. In particular, BREEMAN encouraged prospective investors to buy limited partnership interests in certain Latin American real estate deals by sending them promotional photographs, prospectuses, and business projections and by promising quarterly distributions. BREEMAN, however, fabricated these investment opportunities and, in fact, often had neither a connection to the projects he promoted nor authority to sell partnership interests in them.
When investors did send BREEMAN money, he applied their funds to personal expenses, among other things, and did not use investor funds to develop the real estate projects he had described. BREEMAN obtained more than $13 million from approximately 30 investors during the course of his fraud scheme.
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BREEMAN, 75, of Tuxedo Park, New York, is charged with 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 the judge.
Mr. Clayton praised the outstanding work of the USPIS.
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.
u.s._v._breeman_information.pdfGeorgia Man Charged with Gun Trafficking Approximately 47 Firearms and Drugs to New York CityRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest and filing of a criminal complaint charging DAVID MORRIS with trafficking 47 firearms and numerous rounds of ammunition from Georgia to Lower Manhattan. MORRIS was arrested earlier today while following the sale of 17 firearms and cocaine to undercover officers. The defendant is expected to be presented this afternoon before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Jay Clayton said: “As alleged, David Morris illegally trafficked dangerous drugs and 47 firearms from Georgia to New York City. The unchecked flow of illegal firearms is a threat to every New Yorker. Anyone who is thinking about illegally trafficking guns to New York City should know that our Office and our law enforcement partners are watching, and we will hold you accountable for jeopardizing the safety of our streets.”
ATF Special Agent in Charge Bryan Miller said: “Today’s arrest serves as a notice to those who think they are above the law and can illegally traffic guns into our communities. The men and women of ATF NY will never waver in our commitment to protect the public and to aggressively target firearms traffickers. I thank our partners at NYPD and SDNY for their diligent work and tireless dedication to our shared public safety mission.”
NYPD Commissioner Jessica S. Tisch said: “David Morris trafficked illegal firearms, ammunition, and narcotics into our city—but our brave officers were one step ahead, stopping these weapons and drugs from ever reaching the streets. Gun traffickers fuel violence in our communities, and the NYPD will never stop working to shut down these pipelines. I’m grateful to the ATF and the U.S. Attorney’s Office for their partnership in this critical case.”
According to the allegations contained in the Complaint:
On or about March 28, April 18, and May 9, 2025, MORRIS sold 47 firearms and numerous rounds of ammunition to undercover law enforcement officers with the New York City Police Department in the vicinity of Catherine Slip and South Street in Lower Manhattan. MORRIS transported the firearms from Georgia and stated that he works with a team of other individuals in Georgia, has been selling firearms for approximately ten years, and has access to machine gun conversion devices, which are used to convert semiautomatic pistols into fully automatic weapons.
MORRIS also trafficked narcotics to the undercover officers on or about April 18 and May 9, 2025. On or about April 18, MORRIS provided one of the undercover law enforcement officers a “sample” of a substance that contained cocaine. On or about May 9, MORRIS sold to one of the undercover officers’ plastic baggies of white powder consistent with, and that MORRIS represented to be, cocaine. A photograph of the contraband seized from MORRIS is depicted below:
* * *
MORRIS, 31, of Georgia, is charged with one count of unlicensed dealing of firearms, which carries a maximum sentence of five years in prison; one count of firearms trafficking, which carries a maximum sentence of 15 years in prison; and one count of using and carrying a firearm in furtherance of drug trafficking, which carries a maximum sentence of life and a mandatory minimum of five years in prison.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the ATF and the NYPD’s Joint Firearms Task Force and the 5th Precinct’s Field Intelligence Office.
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 (TCOs), 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 (OCDETFs) and Project Safe Neighborhood (PSN).
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Kathryn Wheelock is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent until proven guilty.
Bronx Feva Gang Members Charged with April 2022 Murder and Racketeering OffensesRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York; Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging NASIA CARSON, a/k/a “Nas,” ELIJAH SANTIAGO, a/k/a “Eli,” and PHILIP MOSCA, a/k/a “90,” with participating in a racketeering conspiracy involving a Bronx-based gang known as “Feva” and committing multiple violent crimes in aid of racketeering, including the murder of a 21-year-old named Jesse Bynum on April 12, 2022. CARSON and MOSCA were previously taken into custody on related charges, and SANTIAGO was arrested earlier today. All three defendants are expected to be presented before U.S. Magistrate Judge Valerie Figueredo. The case is assigned to U.S. District Judge Victor Marrero.
U.S. Attorney Jay Clayton said: “As alleged, these three defendants brutally murdered 21-year-old Jesse Bynum, and left three others seriously wounded. New York families should not have to live in fear of gang-motivated violence. The women and men of the Southern District and our law enforcement partners are committed to holding accountable those who terrorize our communities with gang-motivated violence. We hope that commitment and the charges brought today bring some measure of comfort to the family of Jesse Bynum and others who have suffered needless losses from gang-motivated crimes.”
FBI Assistant Director in Charge Christopher G. Raia said: "These three Feva gang members allegedly engaged in violence to retaliate against their rivals, including firing a gun into a crowded street and killing Jesse Bynum. The defendants’ alleged relentless attempts to fuel a feud with a rival cost the life of a bystander caught in the crosshairs. With our law enforcement partners, the FBI remains committed to protecting our city from unnecessary gun violence and murders."
NYPD Commissioner Jessica S. Tisch said: "These three individuals allegedly carried out a cold-blooded shooting that killed a 21-year-old New Yorker and seriously injured three others. They showed no regard for human life, and their senseless act of violence has no place in our city. We are committed to identifying and dismantling the street gangs threatening the safety of our communities. I want to thank the NYPD investigators and our partners at the FBI and the U.S. Attorney’s Office for their tireless work to bring them to justice.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about 2022, through at least in or about 2023, CARSON, SANTIAGO, and MOSCA were members and associates of a criminal organization known as Feva that operated principally in the vicinity of the Pelham Parkway Houses and 2250 Wallace Avenue in the Bronx, New York. Members and associates of Feva engaged in, among other activities, drug trafficking, acts involving murder, attempted murder, and assault.
On or about April 12, 2022, CARSON, SANTIAGO, and MOSCA shot into a small crowd of people gathered on a street in an attempt to retaliate against a rival gang. The shooting resulted in the murder of 21-year-old Bynum, and serious physical injury to three others.
If you believe that you have additional information about this murder, please contact the U.S. Attorney’s Office for the Southern District of New York at 1-866-874-8900 and reference this case.
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A chart containing the names, ages, charges, and maximum penalties against the defendants is set forth below.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the FBI and the NYPD.
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 (TCOs), 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 (OCDETFs) and Project Safe Neighborhood (PSN).
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Ni Qian, Marguerite B. Colson, and Brandon D. Harper are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1Racketeering conspiracy
18 U.S.C. § 1962(d)
NASIA CARSON, a/k/a “Nas,” 21;
ELIJAH SANTIAGO, a/k/a “Eli,” 22;
PHILIP MOSACA, a/k/a “90,” 22;
(“All Defendants”)
Life in prison2Murder in aid of racketeering
18 U.S.C. §§ 1959(a)(1) and 2
All DefendantsDeath or mandatory sentence of life in prison3Conspiracy to commit murder in aid of racketeering
18 U.S.C. § 1959(a)(5)
All Defendants10 years in prison4Attempted murder and assault with a dangerous weapon in aid of racketeering
18 U.S.C. §§ 1959(a)(3), (a)(5), and 2
All Defendants20 years in prison5Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence
18 U.S.C. §§ 924(c) and 2
All DefendantsLife in prison
Mandatory minimum sentence of 10 years in prison
6Attempted murder and assault with a dangerous weapon in aid of racketeering
18 U.S.C. §§ 1959(a)(3), (a)(5), and 2
All Defendants20 years in prison7Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence
18 U.S.C. §§ 924(c) and 2
All DefendantsLife in prison
Mandatory minimum sentence of 10 years in prison
8Assault with a dangerous weapon and assault in aid of racketeering
18 U.S.C. §§ 1959(a)(3), (a)(5), and 2
All Defendants20 years in prison9Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence
18 U.S.C. §§ 924(c) and 2
All DefendantsLife in prison
Mandatory minimum sentence of 10 years in prison
[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 descried therein should be treated as an allegation.
Three Own Every Dollar (“OED”) Gang Members Convicted of Four Murders and 10 Attempted MurdersRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced the convictions at trial yesterday of JOWENKY NUNEZ, JR., a/k/a “Juju,” BRIAN HERNANDEZ, a/k/a “Malikai,” and IYAURY RODRIGUEZ-ROSARIO, a/k/a “Bricha,” for their roles as members of the violent gang Own Every Dollar (“OED”), including four murders and 10 attempted murders. NUNEZ, HERNANDEZ, and RODRIGUEZ-ROSARIO were convicted by a jury of 25 counts after a five-week trial before U.S. District Judge J. Paul Oetken.
U.S. Attorney Jay Clayton said: “Jowenky Nunez, Jr. murdered Nicolas Vargas and Hector Cruz, and all three defendants murdered Richard Dominguez and Israel Cabrera. Nunez, Hernandez, Rodriguez-Rosario, and other members of OED tried to murder many others. Public safety is one of our top priorities, and thanks to the career prosecutors of my office and our law enforcement partners, these three men have been held accountable for their senseless violence. I hope this verdict brings some measure of consolation to the victims and their families.”
As alleged in the Indictment and statements made in public filings and public court proceedings:
NUNEZ is a leader of the violent gang OED, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan. HERNANDEZ and RODRIGUEZ-ROSARIO are members of OED as well. The Indictments in this case charge 24 members and associates of OED with numerous violent crimes, including five murders and 15 attempted murders.
On August 31, 2018, NUNEZ shot Nicolas Vargas in the head and killed him near an IHOP at 232nd Street in the Bronx.
On April 14, 2019, NUNEZ and other OED members drove to West 135th Street in Manhattan to shoot at members of a rival gang. They shot at a rival gang member on West 135th Street and Amsterdam Avenue, but missed and instead struck bystander Hector Cruz—then age 57—in the liver. Cruz died of the gunshot wound approximately one month later.
On July 2, 2020, NUNEZ, HERNANDEZ, and RODRIGUEZ-ROSARIO committed an execution-style double murder of Richard Dominguez and Israel Cabrera near Sedgewick Avenue in the Bronx, shooting both victims in the head from the backseat of a parked car.
NUNEZ also committed nine other attempted murders, including a stabbing at the Metropolitan Detention Center in Brooklyn, New York, while he was facing charges in this case. HERNANDEZ committed three attempted murders, and RODRIGUEZ-ROSARIO committed two attempted murders. Several of NUNEZ’s attempted murders were captured on video, including the following:
March 30, 2020 Shooting
March 4, 2022 Shooting
All three defendants were also convicted of conspiring to traffic narcotics, including large amounts of fentanyl and heroin, and NUNEZ and RODRIGUEZ-ROSARIO were convicted of transporting guns from Pennsylvania to New York.
17 other OED defendants have previously pled guilty in the case, including MAYOVANEX RODRIGUEZ, a/k/a “Menorcito,” who was sentenced to a 25-year term of imprisonment for a 2022 murder; JERRIN PENA, a/k/a “Rooga,” a/k/a “Perry, who was sentenced to a 20-year term of imprisonment for the 2019 murder of Hector Cruz; and HUGO RODRIGUEZ, a/k/a “Juice,” the current “Duarte,” or leader, of OED.
A trial against defendants JESUS ZAPATA, a/k/a “Jeezy” and BRAYAN LLORET, a/k/a “ET,” two leaders of OED who committed multiple stabbings and slashings at Rikers Island, is scheduled for October 6, 2025. A trial against defendant JOWENKY NUNEZ SR., a/k/a “Bala,” a leader of the gang and the father of NUNEZ, is scheduled for February 2, 2026.
* * *
NUNEZ, 22, of New York, New York, HERNANDEZ, 25, of New York, New York, and RODRIGUEZ-ROSARIO, 43, of Reading, Pennsylvania, were convicted of 25 total counts, and are each subject to mandatory terms of life in prison. A chart summarizing the counts of conviction and potential penalties is below:
Count NumberChargeDefendantsPenalties1Racketeering ConspiracyNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMaximum of life in prison2Murder in Aid of RacketeeringNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMandatory life in prison3Murder through Use of a FirearmNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMaximum of life in prison4Murder in Aid of RacketeeringNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMandatory life in prison5Murder through Use of a FirearmNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMaximum of life in prison6Attempted Murder and Assault with a Dangerous WeaponHERNANDEZMaximum of 20 years in prison7Discharge of a Firearm in Connection with a Crime of ViolenceHERNANDEZMaximum of life in prison; mandatory minimum of 10 years in prison8Attempted Murder and Assault with a Dangerous WeaponHERNANDEZMaximum of 20 years in prison9Discharge of a Firearm in Connection with a Crime of ViolenceHERNANDEZMaximum of life in prison; mandatory minimum of 10 years in prison10Attempted Murder and Assault with a Dangerous WeaponHERNANDEZMaximum of 20 years in prison11Discharge of a Firearm in Connection with a Crime of ViolenceHERNANDEZMaximum of life in prison; mandatory minimum of 10 years in prison12Attempted Murder and Assault with a Dangerous WeaponNUNEZ, RODRIGUEZ-ROSARIOMaximum of 20 years in prison13Discharge of a Firearm in Connection with a Crime of ViolenceNUNEZ, RODRIGUEZ-ROSARIOMaximum of life in prison; mandatory minimum of 10 years in prison14Attempted Murder and Assault with a Dangerous WeaponNUNEZ, RODRIGUEZ-ROSARIOMaximum of 20 years in prison15Discharge of a Firearm in Connection with a Crime of ViolenceNUNEZ, RODRIGUEZ-ROSARIOMaximum of life in prison; mandatory minimum of 10 years in prison16Attempted Murder and Assault with a Dangerous WeaponNUNEZMaximum of 20 years in prison17Discharge of a Firearm in Connection with a Crime of ViolenceNUNEZMaximum of life in prison; mandatory minimum of 10 years in prison18Attempted Murder and Assault with a Dangerous WeaponNUNEZMaximum of 20 years in prison19Discharge of a Firearm in Connection with a Crime of ViolenceNUNEZMaximum of life in prison; mandatory minimum of 10 years in prison20Attempted Murder and Assault with a Dangerous WeaponNUNEZMaximum of 20 years in prison21Discharge of a Firearm in Connection with a Crime of ViolenceNUNEZMaximum of life in prison; mandatory minimum of 10 years in prison22Attempted Murder and Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryNUNEZMaximum of 20 years in prison23Narcotics ConspiracyNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMaximum of life in prison; mandatory minimum of 10 years in prison24Firearms Use, Carrying, and PossessionNUNEZ, HERNANDEZ, RODRIGUEZ-ROSARIOMaximum of life in prison; mandatory minimum of 5 years in prison25Interstate Transport of FirearmsNUNEZ, RODRIGUEZ-ROSARIOMaximum of 5 years in prisonThe maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Clayton praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration. Mr. Clayton also thanked the Manhattan District Attorney’s Office, the Bronx District Attorney’s Office, the Office of the Special Narcotics Prosecutor, the New York State Police, and the NYPD Task Force Officers assigned to this Office for their assistance in the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner, Kevin Mead, Alexandra S. Messiter, and Ashley C. Nicolas are in charge of the prosecution.
Founder of Celsius Sentenced to 12 Years for Fraud and Market ManipulationRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, announced today that ALEXANDER MASHINSKY, the founder and former Chief Executive Officer of Celsius Network LLC and their affiliated entities (collectively, “Celsius”), was sentenced to 12 years for committing commodities fraud and securities fraud at Celsius. MASHINSKY previously pled guilty on December 3, 2024, before U.S. District Judge John G. Koeltl, who imposed today’s sentence.
U.S. Attorney Jay Clayton said: “Alexander Mashinsky targeted retail investors with promises that he would keep their “digital assets” safer than a bank, when in fact he used those assets to place risky bets and to line his own pockets. In the end, Mashinsky made tens of millions of dollars while his customers lost billions. America’s investors deserve better. The case for tokenization and the use of digital assets is strong but it is not a license to deceive. The rules against fraud still apply, and the SDNY will hold those who flout them accountable for their crimes.”
According to the allegations contained in the Indictment and statements made in public filings and in public court proceedings:
Celsius, a crypto asset platform, offered customers “rewards” on deposited assets, secured loans, and custody services. Marketing itself as the “safest place for your crypto,” Celsius encouraged customers to “unbank” themselves by transferring crypto assets to its platform. Celsius’s primary offering, “Earn” program, promised to deploy customer assets to generate investment returns. Celsius also provided “Custody” and “Borrow” programs, the latter allowing customers to obtain loans by posting crypto assets as collateral. MASHINSKY, as CEO, directly marketed Celsius to retail customers globally. Throughout his tenure, he repeatedly misrepresented key aspects of Celsius’s business and finances to attract customers and retain their assets. His false claims covered the safety of Celsius’s yield-generating activities, its profitability, the sustainability of high rewards rates, and the risks associated with depositing crypto assets on the platform. As MASHINSKY portrayed Celsius as secure, the platform grew exponentially. By the fall of 2021, Celsius had become one of the largest crypto platforms in the world, holding approximately $25 billion in assets at its peak.
MASHINSKY and others orchestrated a yearslong scheme to mislead customers about Celsius’s proprietary crypto token CEL. They manipulated CEL’s price by spending hundreds of millions purchasing it on the open market to artificially inflate its value. At times, they used customer deposits to fund these market purchases, without disclosing that to customers. Without aggressive manipulation, CEL’s price would have been significantly lower. As Roni Cohen-Pavon, Celsius’s Chief Revenue Officer who later pled guilty to illegally manipulating CEL’s price, privately told MASHINSKY, “the value was fake and was based on us spending millions.”
To further the manipulation scheme, MASHINSKY repeatedly made false public statements about Celsius’s market activity and role in supporting and inflating CEL’s. In some instances, MASHINSKY and other executives personally purchased CEL to artificially support its value. The artificial price inflation allowed MASHINSKY to profit approximately $48 million from his own sales of CEL. He publicly claimed he was not selling CEL, while actually selling large quantities, sometimes to Celsius itself.
Before Celsius halted customer withdrawals on June 12, 2022, MASHINSKY continued assuring customers of Celsius’s strong financial position and liquidity. Meanwhile, he withdrew $8 million worth of his own non-CEL assets from Celsius. When Celsius announced it was halting customer withdrawals, hundreds of thousands of Celsius customers had $4.7 billion in inaccessible assets on the platform. Celsius filed for bankruptcy on July 13, 2022.
* * *
In addition to the prison term, MASHINSKY, 59, of New York, New York, was sentenced to three years of supervised release and ordered to pay a $50,000 fine and forfeiture of $48,393,446.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, each of which has filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Peter J. Davis, Adam S. Hobson, and Allison Nichols are in charge of the prosecution.
Statement of U.S. Attorney Jay Clayton on the Convictions of Own Every Dollar “OED” Gang MembersRead the Press Release
Today, a jury held three violent members of a Manhattan-based gang, “Own Every Dollar,” or OED, responsible for four murders, 10 attempted murders, drug trafficking, and gun running. Gang violence is a plague on our city, and today’s convictions make clear that rival gang members are not the only victims. All too often, innocent bystanders are caught in the crossfire, and entire communities are terrorized by gangs, guns, and deadly drugs. This prosecution, in which 24 members of OED have been charged with committing senseless acts of violence, is a testament to the commitment of the Federal Government, this Office, and our law enforcement partners to ending the gang and gun violence that has kept New Yorkers in fear for far too long. Because of the excellent work of our prosecutors and partners, Jowenky Nunez, Jr., Brian Hernandez, and Iyaury Rodriguez-Rosario face mandatory life sentences. They will never again terrorize this city. Other gang members are on notice.