Southern District of New York

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that LAQUAN WILLIAMS, a/k/a “China Man” was sentenced yesterday afternoon to 200 months in prison by U.S. District Judge Laura Taylor Swain for orchestrating a series of schemes to steal money from banks by sending imposters into bank branches to transfer money from victim bank accounts or to cash stolen U.S. Treasury checks. These schemes involved WILLIAMS’s possession of over 1,000 stolen or counterfeit checks, his manufacturing of over 500 counterfeit state and federal identification cards, at least $1.8 million in losses to financial institutions, and possession of two loaded firearms. On September 4, 2025, WILLIAMS pled guilty to participating in a conspiracy to commit bank fraud and aggravated identity theft.  WILLIAMS was previously sentenced to 64 months’ imprisonment by U.S. District Judge John G. Koeltl in May 2018 after participating in a similar bank fraud scheme, and WILLIAMS engaged in the charged conduct while on federal supervised release.

“Laquan Williams is a bank fraudster who has stolen millions of dollars from Americans by engaging in identity theft and bank fraud,” said U.S. Attorney Jamie McDonald. “For nearly two decades, Williams has been stealing money from innocent bank customers with forged checks, counterfeit identification cards, and stolen personal identifying information.  Today’s prison sentence protects New Yorkers and should be a reminder that we and our law enforcement partners will aggressively pursue serial fraudsters and hold them accountable.” 

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

Between 2021 and 2024, WILLIAMS orchestrated a series of schemes to steal money from banks by impersonating bank customers:

Scheme 1 (May 2023 – June 2023):  Between May 2023 and June 2023, WILLIAMS sent co-conspirators into various banks located in New York, New Jersey, and Connecticut to impersonate various bank customers and deposit checks that would transfer money from the victims into bank accounts controlled by members of the scheme.  One of the victims was a prominent former federal government official. The defendant attempted to impersonate this victim while calling a bank and attempted to transfer money between the victim’s accounts, including by using the victim’s social security number. Total intended losses related to this scheme included approximately $827,568.33, and actual losses were approximately $43,361.28. 

Scheme 2 (September 2023 – November 2023): Between September 2023 and November 2023, WILLIAMS sent another co-conspirator into various banks in New Jersey and New York to impersonate the owners of various small businesses.  The co-conspirator would request that the banks transfer funds from the victims’ business bank accounts into new business bank accounts that were opened with very similar names and controlled by WILLIAMS. Once the money was transferred, WILLIAMS would withdraw the money as cash or transfer the money through CashApp. Total intended losses related to this scheme included approximately $218,123.22, and actual losses were approximately $87,761.08.

Scheme 3 (October 2021 – May 2024):  Between October 2021 and May 2024, WILLIAMS participated in a scheme to steal money from the United States by depositing stolen U.S. Treasury checks into bank accounts controlled by the scheme.  Members of the scheme recruited co-conspirators to impersonate the owners of the entities that were the payees on the stolen U.S. Treasury checks and to deposit the stolen checks into bank accounts that were controlled by members of the scheme and had been opened for the specific purpose of cashing the stolen treasury checks.  For example, WILLIAMS participated in the depositing of a stolen U.S. treasury check in the amount of $13.9 million into a bank account that had been recently opened by members of the scheme at a bank branch in Massachusetts.  Actual losses stemming from the scheme amount to at least $1,157,029.78, and the intended loss exceeded $30 million.

WILLIAMS’s Arrest (May 23, 2024): On May 23, 2024, WILLIAMS was arrested, and law enforcement executed a search warrant for WILLIAMS’s residence and vehicle.  Law enforcement recovered, among other things: (1) approximately 27 seals and holograms for placement onto identification cards; (2) a hologram identification card press; (3) approximately 1,102 blank state identification cards; (4) approximately nine stolen U.S. Treasury checks totaling approximately $506,010.83; (5) approximately 1,015 additional stolen and/or altered checks totaling approximately $3.35 million; (6) approximately 571 counterfeit identification cards; (7) approximately 524 counterfeit credit or debit cards; (8) approximately 56 stolen credit cards; (9) approximately 478 pages of blank check stock; (10) multiple printers and laminators used for printing and embossing checks and identification cards; (11) a Glock 19 9mm semi-automatic pistol; (12) a LCP Ruger .380 caliber semi-automatic pistol; and (13) approximately 19 rounds of 9mm and .380 caliber ammunition, including approximately 13 hollow-point rounds of ammunition.  Actual losses stemming from fraudulent transactions linked to this physical evidence was approximately $537,596.75.

WILLIAMS was on federal supervised release while participating in these crimes, after previously being sentenced to 64 months’ imprisonment by U.S. District Judge John G. Koeltl in May 2018 for participating in similar bank fraud schemes.

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In addition to the prison term, WILLIAMS, 42, of Florham Park, New Jersey, was sentenced to three years of supervised release, ordered to forfeit approximately $1.8 million, and ordered to pay restitution.

Mr. McDonald praised the outstanding investigative work of the United States Secret Service and the New York City Police Department.

This case is being handled by the Office’s Violent Organizations & Crime Unit. Assistant U.S. Attorneys Ryan Allison and Andrew K. Chan are in charge of the prosecution.

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United States Attorney for the Southern District of New York, Jamie McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the arrest and unsealing of a seven-count Indictment charging RAJAHSHUWEH RHODES, a/k/a “Skii Dot,” a/k/a “skiidot.b,” a/k/a “bdot,” in connection with the October 15, 2021 murder of Isaiah Levine who was sixteen years old when he was shot in the side of the head while standing on a sidewalk in Manhattan.  RHODES will be presented this afternoon before U.S. Magistrate Judge Robyn F. Tarnofsky.  The case is assigned to U.S. District Judge Lewis J. Liman.

“Those choosing to engage in gang violence, terrorize our neighborhoods, and put innocent lives at risk will be held accountable for their actions,” said U.S. Attorney Jamie McDonald.  “The residents of the Lower East Side, just like everyone in this city, deserve safety, accountability, and peace.  The passage of time does not mean a case is forgotten, and we will pursue every lawful avenue to bring justice to offenders and to victims and their family members who will always have the unwavering support of the men and women in this Office.”

“As alleged, the defendant’s gunfire shattered an ordinary moment on a Manhattan sidewalk, taking the life of 16-year-old Isaiah Levine, injuring a second victim, and leaving a household and community to live with the consequences,” said HSI Acting Special Agent in Charge Gizas. “Justice, even years later, cannot restore the life of a teenager taken far too soon from his loved ones and the city he called home. Today, nearly five years to the day of Isaiah's murder, we seek to provide a measure of closure to Isaiah’s family and to New Yorkers who deserve to feel safe on the streets of Manhattan and throughout our city. Together with the NYPD and the Southern District of New York, HSI New York stands resolute in our shared commitment to deliver answers for those whose lives have been forever changed by gang violence.”

“This defendant, a member of the New York Blood Brim Army, allegedly shot two people, murdering a 16-year-old, in a busy Lower East Side neighborhood,” said NYPD Commissioner Jessica S. Tisch. “Gun violence anywhere in our communities will not be tolerated, and the NYPD will continue to go after violent gangs, take guns off our streets, and hold the drivers of violence accountable. I thank our investigators and law enforcement partners for their diligent work on this case and commitment to keeping New York City safe.”

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

From at least 2019 through in or about 2026, RHODES was a member and associate of the New York Blood Brim Army, a violent gang that operates throughout New York City, among other locations, and whose members engage in murders, robberies, and the trafficking of controlled substances, including marihuana.  On or about October 15, 2021, in connection with a gang-related dispute, RHODES shot sixteen-year-old Isaiah Levine in the head and killed him at the intersection of Delancey Street and Suffolk Street in the Lower East Side of Manhattan. RHODES’s gunfire also struck another individual in the leg, who survived.   

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RHODES, 23, of Manhattan, New York, is charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of murder in aid of racketeering, which carries a mandatory term of life in prison or death; one count of attempted murder and assault in aid of racketeering, which carries a maximum sentence of twenty years in prison; one count of conspiracy to distribute a controlled substance, which carries a maximum term of five years in prison; and three counts of using and carrying a firearm during and in relation to a crime of violence or a drug trafficking offense, each of which carries a mandatory minimum sentence of five years in prison and a maximum term of life in prison. 

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

Mr. McDonald praised the outstanding investigative efforts of HSI New York’s Violent Gangs Task Force, the NYPD, including the Intelligence Officers of the NYPD’s Police Service Area 4, 7th Precinct Detective Squad, and Manhattan South Homicide Squad.

The case is being prosecuted by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys William Stone and Kathryn Wheelock are in charge of the prosecution.

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

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

   2026.10.08_-_rhodes_-_indictment.pdf

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that OSCAR MATA LEMUS was sentenced to 16 years in prison by United States District Judge Cathy Seibel for his enticement of three minors to engage in sexual activity.  Judge Seibel also imposed a 15-year term of supervised release to follow the prison term. The sentencing today followed MATA LEMUS’s guilty plea on November 25, 2025.

“Oscar Mata Lemus’s conduct is the nightmare of any parent,” said U.S. Attorney Jamie McDonald. “Today’s sentencing illustrates that we will continue to use every tool available to law enforcement to prosecute and punish those who sexually exploit children.”

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

On or about April 20, 2024, Oscar Mata Lemus, who was 23 years old at the time, communicated online with a 14-year-old minor (“Victim-1”).  Mata Lemus told her he was 16 years old and persuaded Victim-1 to meet him in person to engage in sexual activity.  On or about April 23, 2024, Mata Lemus went to Victim-1’s home in Rockland County, New York, entered her bedroom through a window, and engaged in sexual activity with her. 

A federal investigation revealed that that, prior to his abuse of Victim-1, Mata Lemus abused at least two other minors.  In or about January 2024, Mata Lemus met Victim-2, a 14-year-old, via social media. As with Victim-1, Mata Lemus told Victim-2 that he was 16 years old.  Mata Lemus met Victim-2 in the Bronx on numerous occasions between January 2024 and April 2024, and they engaged in sexual activity.  Mata Lemus took photos and videos of the sexual activity, some of which were recovered from his phone in connection with the investigation.

In addition, in or about June 2023, Mata Lemus met Victim-3, a 15-year-old in Mississippi, via social media.  Mata Lemus told Victim-3 that he was 17 years old.  At MATA LEMUS’s direction, Victim-3 sent him sexually explicit images of herself.  She also engaged in numerous live video sessions, during which Mata Lemus requested that Victim-3 engage in sexual acts for him on camera.

On November 25, 2025, Oscar Mata Lemus entered a guilty plea to an Information, charging him with three counts of enticement, in violation of Title 18, United States Code, Section 2422(b).        

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In addition to the prison term, OSCAR MATA LEMUS, 26, of Haverstraw, was sentenced to 15 years of supervised release.

Mr. McDonald praised the efforts of the FBI, Town of Ramapo Police Department, Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Putnam County Sheriff's Office, Westchester County DAs Office, Rockland County DAs Office, NYPD, Westchester County PD, and the Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, Clarkstown Police Departments, in connection with this investigation.

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.   

El Fiscal General de los Estados Unidos, Todd Blanche; el Fiscal Federal para el Distrito Sur de Nueva York, Jamie McDonald; el Administrador de la Administración para el Control de Drogas (“DEA”, por sus siglas en inglés), Terrance C. Cole; el Secretario del Departamento de Seguridad Nacional (“DHS”, por sus siglas en inglés), Markwayne Mullin; y el Director del Buró Federal de Investigaciones, Kash Patel, anunciaron que el expresidente de Venezuela NICOLÁS MADURO MOROS y la exprimera dama de Venezuela CILIA ADELA FLORES DE MADURO han sido acusados, en una Acusación Formal Sustitutiva hecha pública hoy, de conspiración para cometer tortura, narcoterrorismo, conspiración para importar cocaína y delitos relacionados con armas.

“Según se alega en la Acusación Formal Sustitutiva presentada hoy, durante más de dos décadas, Nicolás Maduro Moros y Cilia Adela Flores de Maduro participaron en una conspiración para cometer tortura, incluida la tortura de ciudadanos estadounidenses, además de los delitos de narcotráfico y de armas que ya se les habían imputado”, dijo el Fiscal Federal Jamie McDonald. “Tal como se describe en la Acusación Formal Sustitutiva, los Maduro y otros líderes venezolanos abusaron de sus cargos de confianza para enriquecerse mediante el narcoterrorismo, el tráfico de cocaína y otras formas de corrupción, incluso empleando a las fuerzas militares, a las fuerzas del orden y a otras entidades gubernamentales venezolanas bajo su control para inundar los Estados Unidos de narcóticos ilegales. La acusación formal de hoy alega, además, que los Maduro y otros líderes venezolanos conspiraron para reprimir la disidencia mediante graves violaciones de derechos humanos, ordenando y permitiendo violencia, amenazas y tortura física bajo apariencia de autoridad legal. Según se alega, esto incluyó la tortura de varios ciudadanos estadounidenses, quienes fueron sometidos a abusos indescriptibles. Los cargos de hoy son muestra de la incansable labor que nosotros y nuestros socios de las fuerzas del orden emprenderemos para hacer justicia a las víctimas de delitos, en particular a las víctimas estadounidenses sometidas a un trato atroz en el extranjero.”

“Desde la captura y el arresto de Nicolás Maduro y su esposa, Cilia Flores, el Departamento de Justicia ha trabajado para descubrir el alcance de sus presuntos delitos contra el pueblo de Venezuela y de los Estados Unidos”, dijo el Fiscal General Todd Blanche. “Estos cargos adicionales contra los Maduro reflejan la dedicación de esta Administración a hacer justicia a las víctimas de tortura, narcoterrorismo y delincuencia organizada.” 

“El régimen de Maduro es responsable de incontables víctimas estadounidenses del narcoterrorismo y el narcotráfico”, dijo el Secretario de Seguridad Nacional, Mullin. “Gracias al liderazgo del presidente Trump, de nuestros socios de la Fuerza de Tarea de Seguridad Nacional y de la sólida coordinación entre el DHS, el DOJ, el FBI y la DEA, estamos llevando ante la justicia a Maduro y a su esposa. El presidente Trump está utilizando todas las herramientas a su disposición para hacer que Estados Unidos vuelva a ser un país seguro, tanto en el territorio nacional como en el exterior.” 

“Estas acusaciones formales demuestran que nuestro trabajo no terminó con el arresto de Nicolás Maduro, quien aterrorizó al pueblo de Venezuela durante más de dos décadas”, dijo el Administrador de la DEA, Terry Cole. “La DEA seguirá las pruebas y perseguirá a quienes utilizan la corrupción, la violencia y los cargos de poder para facilitar la actividad delictiva y proteger a quienes se lucran de ella. El arresto de Maduro fue un paso importante hacia la rendición de cuentas, pero no fue el último. Seguimos firmemente comprometidos a trabajar con nuestros socios para restablecer la ley y el orden en todo el hemisferio occidental y llevar ante la justicia a cualquier líder corrupto que crea que su posición política lo protege de las consecuencias.” 

“Según se alega en la acusación formal, el régimen de Maduro sometió a ciudadanos estadounidenses a torturas mientras estaban bajo la custodia del gobierno venezolano, incluidos drogas, descargas eléctricas, agresión sexual y más”, dijo el Director del FBI, Kash Patel. “Estos cargos siguen a la histórica operación de las fuerzas del orden, apoyada con orgullo por este FBI en enero, en la que se arrestó a Maduro y se ejecutó uno de los Traslados de Custodia en el Extranjero más audaces de la historia de los Estados Unidos, devolviéndolos a él y a su esposa a los Estados Unidos, una operación que requirió meses de coordinación, planificación detallada y una ejecución impecable entre múltiples componentes del gobierno federal, bajo la dirección del Departamento de Guerra. Los cargos de hoy reflejan el compromiso de este FBI y de este Departamento de Justicia con la rendición de cuentas, el estado de derecho y la protección de la seguridad nacional de los Estados Unidos.”

Según la Acusación Formal Sustitutiva, las declaraciones hechas en procedimientos judiciales públicos y los escritos presentados ante el tribunal: 1
Durante más de 25 años, NICOLÁS MADURO MOROS y CILIA ADELA FLORES DE MADURO abusaron de sus cargos de confianza pública, enriqueciéndose mediante la corrupción y manteniéndose en el poder mediante graves violaciones de derechos humanos.

Mediante el narcotráfico, el uso corrupto de las fuerzas del orden y de las fuerzas armadas, el abuso del sistema judicial y el saqueo de fondos públicos, MADURO MOROS, FLORES DEMADURO y otros líderes venezolanos se beneficiaron personalmente a expensas del pueblo venezolano. Si bien esta corrupción sistémica resultó inmensamente lucrativa para los acusados y su círculo íntimo, era profundamente impopular entre el pueblo venezolano. Para socavar la democracia venezolana y afianzarse en el poder, estos mismos líderes presuntamente presidieron un sistema de represión que se basaba en la violencia contra la oposición política, la detención arbitraria y la tortura de detenidos, incluidos ciudadanos estadounidenses. Esa tortura incluyó descargas eléctricas, asfixia, violación, desnudez forzada, aislamiento prolongado, inanición, celdas de castigo y tortura psicológica, como amenazas de hacer daño y matar a los familiares de las víctimas.

Se alega que MADURO MOROS y FLORES DE MADURO se encontraban en la cúspide de esa violenta estructura de poder. Desarrollaron y facilitaron los sistemas que ellos y sus coconspiradores utilizaron de manera corrupta para amasar inmensa riqueza y poder, recompensando a sus aliados con fondos mal habidos y aterrorizando a presuntos opositores mediante la persecución y la violencia. Estos sistemas dependían del control que MADURO MOROS y FLORES DE MADURO ejercían sobre las fuerzas armadas, el poder judicial y los organismos encargados de hacer cumplir la ley de Venezuela, y de sus alianzas con grupos criminales organizados, incluidas organizaciones terroristas y grupos de pandillas patrocinadas por el Estado conocidos como colectivos.

Al amasar tal riqueza y poder, se alega que MADURO MOROS, FLORES DE MADURO y otros miembros de su círculo íntimo traficaron drogas bajo la protección de las fuerzas armadas, el poder judicial y los organismos encargados de hacer cumplir la ley de Venezuela. Presuntamente se asociaron con narcotraficantes y narcoterroristas de organizaciones terroristas extranjeras designadas, entre ellas las Fuerzas Armadas Revolucionarias de Colombia (“FARC”), el Ejército de Liberación Nacional (“ELN”), el Cártel de Sinaloa, los Zetas, posteriormente conocidos como el Cártel del Noreste (“CDN”), y el Tren de Aragua (“TdA”), quienes despacharon cocaína desde Venezuela hacia los Estados Unidos a través de puntos de transbordo en el Caribe y Centroamérica.

Se alega también que MADURO MOROS, FLORES DE MADURO y otros miembros de alto rango de su círculo íntimo crearon y mantuvieron un violento sistema de represión. Desde al menos 1999, miles de venezolanos han sido hostigados, amenazados, arrestados, procesados, agredidos, torturados o asesinados por personas que ejercían la supuesta autoridad del Estado venezolano para asegurar que MADURO MOROS y FLORES DE MADURO permanecieran en el poder. MADURO MOROS y FLORES DE MADURO utilizaron unidades militares, colectivos y grupos narcoterroristas vinculados a su narcotráfico para detener ilegalmente y torturar a sus víctimas. Dicha violencia y represión aumentaban en torno a los períodos de inestabilidad política en los que el poder de MADURO MOROS y FLORES DE MADURO se veía amenazado. Durante esos períodos, MADURO MOROS, FLORES DE MADURO y otros funcionarios venezolanos de alto nivel emprendieron conjuntamente esfuerzos para acallar a quienes se oponían, o simplemente eran sospechosos de oponerse, a MADURO MOROS o a su régimen. Esos esfuerzos incluyeron la tortura física y psicológica, utilizada sistemáticamente para aterrorizar a la población y silenciar la disidencia.

Además de MADURO MOROS y FLORES DE MADURO, se alega que otros funcionarios de alto nivel fueron parte integral de este sistema. Un alto funcionario venezolano, denominado en la Acusación Formal Sustitutiva como CC-1, ordenó el asesinato de ciertas personas que se oponían a MADURO MOROS o a su régimen, supervisó torturas perpetradas por funcionarios bajo su mando y amenazó personalmente con asesinar al hijo de un prisionero como forma de tortura psicológica. Otro alto oficial venezolano que respondía directamente a MADURO MOROS, denominado en la Acusación Formal Sustitutiva como CC-2, desarrolló métodos de tortura que presentó a MADURO MOROS para su aprobación, dirigió un organismo responsable de torturar a decenas de víctimas y autorizó personalmente con su firma el arresto ilegal y la tortura de personas específicas. Un tercer funcionario venezolano, denominado en la Acusación Formal Sustitutiva como CC-3, ordenó personalmente y participó en la tortura de civiles y militares, incluidos ciudadanos estadounidenses, de quienes se creía que representaban una amenaza para el gobierno de MADURO MOROS. Por ejemplo, un ciudadano estadounidense en particular fue detenido en Venezuela y sometido, entre otras cosas, a privación de alimentos y agua, ahogamiento simulado, golpizas repetidas, descargas eléctricas en los testículos e inyecciones forzadas.
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La Acusación Formal Sustitutiva imputa a Maduro Moros, de 63 años, y a FLORES DE MADURO, de 69 años, en el Cargo Uno, participar en una conspiración de narcoterrorismo, delito que conlleva una pena mínima obligatoria de 20 años y una pena máxima de cadena perpetua; en el Cargo Dos, conspirar para cometer tortura, delito que conlleva una pena máxima de 20 años de prisión; en el Cargo Tres, conspirar para importar cocaína a los Estados Unidos, delito que conlleva una pena mínima obligatoria de 10 años y una pena máxima de cadena perpetua; en el Cargo Cuatro, usar y portar ametralladoras y artefactos destructivos durante y en relación con las conspiraciones de narcoterrorismo e importación de cocaína, y poseer ametralladoras y artefactos destructivos en apoyo de dichas conspiraciones, delito que conlleva una pena mínima obligatoria de 30 años y una pena máxima de cadena perpetua; y en el Cargo Cinco, conspirar para usar y portar ametralladoras y artefactos destructivos durante y en relación con las conspiraciones de narcoterrorismo e importación de cocaína, y para poseer ametralladoras y artefactos destructivos en apoyo de dichas conspiraciones, delito que conlleva una pena máxima de cadena perpetua. Las penas máximas posibles en este caso son prescritas por el Congreso y se proporcionan aquí únicamente con fines informativos, ya que la condena de los acusados será determinada por el juez.

El Sr. McDonald agradeció su colaboración a la Fuerza de Tarea de Seguridad Nacional; de la DEA, a la División de Operaciones Especiales, la División de Nueva York, la Fuerza de Tarea para el Control de Drogas de Nueva York, la División de Miami, la División de Rocky Mountains, la División Andina y la División de Europa; del FBI, a la Oficina de Campo de Nueva York, la Unidad Internacional de Derechos Humanos, la Agencia Residente de Nashville-Knoxville y la Oficina del Agregado Jurídico en Madrid, España; de las Investigaciones de Seguridad Nacional (HSI), a la Oficina de Campo de Nueva York y la Agregaduría de Madrid; del Departamento de Justicia de los Estados Unidos, a la Fuerza de Tarea Conjunta Vulcan, la Oficina de Asuntos Internacionales, el Distrito Este de Nueva York, el Distrito Sur de Florida y, de la División de Seguridad Nacional, la Sección Antiterrorismo, la Sección Cibernética de Seguridad Nacional y la Oficina de Inteligencia, así como, de la División de lo Penal, la Oficina de Derechos Humanos y Enjuiciamientos Especiales, la Oficina del Agregado Judicial en Bogotá y la Sección de Lavado de Dinero, Narcóticos y Decomiso; al Servicio de Alguaciles de los Estados Unidos para el Distrito Sur de Nueva York; y al Departamento de Policía de la Ciudad de Nueva York, por su asistencia.

Este enjuiciamiento forma parte de la iniciativa de la Fuerza de Tarea de Seguridad Nacional (“HSTF”, por sus siglas en inglés), establecida mediante la Orden Ejecutiva 14159. La HSTF es una alianza de todo el gobierno dedicada a eliminar los cárteles criminales, las pandillas extranjeras, las organizaciones criminales transnacionales y las redes de tráfico ilícito y trata de personas que operan en los Estados Unidos y en el exterior. Mediante una histórica colaboración interinstitucional, la HSTF dirige todo el poderío de las fuerzas del orden de los Estados Unidos a identificar, investigar y enjuiciar todo el espectro de delitos cometidos por estas organizaciones, que durante mucho tiempo han alimentado la violencia y la inestabilidad dentro de nuestras fronteras.

Este caso está a cargo de la Unidad de Seguridad Nacional y Narcóticos Internacionales de la Oficina. Los Fiscales Federales Adjuntos Kaylan E. Lasky, Henry L. Ross, Kevin T. Sullivan y Kyle A. Wirshba están a cargo del enjuiciamiento, con la asistencia del Fiscal Litigante Kevin Nunnally, de la Sección Antiterrorismo de la División de Seguridad Nacional.

Los cargos contenidos en la Acusación Formal Sustitutiva son meras acusaciones, y los acusados se presumen inocentes mientras no se pruebe su culpabilidad.
 

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The Justice Department announced that former Venezuelan President Nicolás Maduro Moros and former First Lady of Venezuela Cilia Adela Flores de Maduro have been charged in a Superseding Indictment unsealed today with conspiring to commit torture, narcoterrorism, cocaine importation conspiracy, and weapons offenses.

“Since the capture and arrest of Nicolás Maduro and his wife Cilia Flores, the Department of Justice has been working to uncover the extent of their alleged crimes against the people of Venezuela and of the United States,” said Attorney General Todd Blanche. “These additional charges against the Maduros reflect the dedication of this Administration to delivering justice for the victims of torture, narcoterrorism, and organized crime.”

“As alleged in the indictment, the Maduro regime subjected American citizens to torture while held in custody of the Venezuelan government — including drugs, electric shock, sexual assault, and more,” said FBI Director Kash Patel. “These charges follow the historic law enforcement-operation proudly supported by this FBI in January arresting Maduro and executing one of the most daring Foreign Transfers of Custody in United States history, returning him and his wife to the U.S. — an operation which required months of coordination, detailed planning, and seamless execution across multiple components of the federal government led by the Department of War. Today’s charges reflect the commitment from this FBI and this Department of Justice to accountability, the rule of law, and the protection of U.S. national security.”

“As alleged in today’s Superseding Indictment, for more than two decades, Nicolás Maduro Moros and Cilia Adela Flores De Maduro engaged in a conspiracy to commit torture, including the torture of United States citizens, in addition to the narcotics trafficking and weapons offenses already charged,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “As described in the Superseding Indictment, the Maduros and other Venezuelan leaders abused their positions of trust to enrich themselves through narco-terrorism, cocaine trafficking, and other corruption, including by employing Venezuelan military, law enforcement, and other government entities under their control to flood the United States with illegal narcotics. Today’s indictment further alleges that the Maduros and other Venezuelan leaders conspired to repress dissent through grave violations of human rights by ordering and allowing violence, threats, and physical torture under color of law. As alleged, this included the torture of multiple United States citizens, who were subjected to unspeakable abuse. Today’s charges exemplify the tirelessness that we and our law enforcement partners will undertake to vindicate victims of crime, particularly American victims subjected to horrific treatment abroad.”

“Maduro’s regime is responsible for countless American victims of narcoterrorism and drug trafficking,” said DHS Secretary Markwayne Mullin. “Thanks to the leadership of President Trump, our Homeland Security Task Force partners, and strong coordination among DHS, DOJ, FBI, and DEA, we’re bringing Maduro and his wife to justice. President Trump is using all tools at his disposal to make America safe again both at home and abroad.”

“These indictments demonstrate that our work did not stop with the arrest of Nicolás Maduro, who terrorized the people of Venezuela for more than two decades,” said DEA Administrator Terry Cole. “DEA will continue to follow the evidence and pursue those who use corruption, violence, and positions of power to facilitate criminal activity and protect those who profit from it. Maduro’s arrest was an important step toward accountability, but it was not the last. We remain steadfast in our commitment to work with our partners to restore law and order across the Western Hemisphere and bring to justice any corrupt leader who thinks their political position shields them from consequences.”

For over 25 years, Nicolás Maduro Moros and Cilia Adela Flores de Maduro abused their positions of public trust, enriching themselves through corruption and remaining in power through grave violations of human rights.

Through drug trafficking, the corrupt use of law enforcement and the military, the abuse of the judicial system, and the pilfering of public funds, Maduro Moros, Flores de Maduro, and other Venezuelan leaders personally benefited at the expense of the Venezuelan people. While this systemic corruption was immensely profitable for the defendants and their inner circle, it was deeply unpopular with the Venezuelan people. To undermine Venezuelan democracy and entrench themselves in power, these same leaders allegedly presided over a system of repression that relied on violence against political opposition, arbitrary detention, and the torture of detainees, including United States citizens. That torture included electric shock, asphyxiation, rape, forced nudity, prolonged isolation, starvation, punishment cells, and psychological torture, such as threats to harm and kill victims’ families.

Maduro Moros and Flores de Maduro allegedly sat atop that violent power structure. They developed and facilitated the systems which they and their co-conspirators used corruptly to amass immense wealth and power, rewarding allies with ill-gotten funds and terrorizing perceived opponents through persecution and violence. These systems relied on Maduro Moros’s and Flores de Maduro’s control over Venezuela’s military, judiciary, and law enforcement agencies, and their partnerships with organized criminal groups, including terrorist organizations and groups of state-sponsored gangs known as colectivos.

In amassing such wealth and power, Maduro Moros, Flores de Maduro, and other members of their inner circle allegedly trafficked drugs under the protection of the Venezuelan military, judiciary, and law enforcement agencies. They allegedly partnered with narcotics traffickers and narco-terrorists from designated foreign terrorist organizations, including the Fuerzas Armadas Revolucionarias de Colombia (FARC), the Ejército de Liberación Nacional (ELN), the Sinaloa Cartel, the Zetas, later known as the Cártel del Noreste (CDN), and Tren de Aragua (TdA), who dispatched cocaine from Venezuela to the United States via transshipment points in the Caribbean and Central America.

Maduro Moros, Flores de Maduro, and other high-ranking members of their inner circle also allegedly created and maintained a violent system of repression. Since at least 1999, thousands of Venezuelans have been harassed, threatened, arrested, prosecuted, assaulted, tortured, or killed by individuals wielding the purported authority of the Venezuelan state to ensure that Maduro Moros and Flores de Maduro remained in power. Maduro Moros and Flores de Maduro used military units, colectivos, and narco-terrorist groups involved in their drug trafficking to unlawfully detain and torture their victims. Such violence and repression increased around periods of political instability in which Maduro Moros’s and Flores de Maduro’s power was threatened. During these periods, Maduro Moros, Flores de Maduro, and other high-level Venezuelan officials jointly undertook efforts to stifle those who opposed, or were merely suspected of opposing, Maduro Moros or his regime. Those efforts included physical and psychological torture systematically used to terrify the populace and silence dissent.

In addition to Maduro Moros and Flores de Maduro, other high-level officials allegedly were integral to this system. One high-level Venezuelan official, referred to in the Superseding Indictment as CC-1, ordered the murders of certain individuals who opposed Maduro Moros or his regime, oversaw torture undertaken by officials under his command, and personally threatened the murder of a prisoner’s child as a form of psychological torture. Another senior Venezuelan officer who reported directly to Maduro Moros, referred to in the Superseding Indictment as CC-2, developed torture methods that he presented for approval to Maduro Moros, led an agency responsible for torturing scores of victims, and personally signed off on the unlawful arrest and torture of specific individuals. A third Venezuelan official, referred to in the Superseding Indictment as CC-3, personally ordered and participated in the torture of civilians and military members, including United States citizens, who were believed to pose a threat to Maduro Moros’s rule. For example, one particular United States citizen was detained in Venezuela and subjected to, among other things, deprivation of food and water, simulated drowning, repeated beatings, electric shock to his testicles, and forced injections. 

The Superseding Indictment charges Maduro Moros, 63, and Flores de Maduro, 69, in Count One, with participating in a narcoterrorism conspiracy, which carries a 20-year mandatory minimum penalty and a maximum penalty of life in prison; in Count Two, with conspiring to commit torture, which carries a maximum penalty of 20 years in prison; in Count Three, with conspiring to import cocaine into the United States, which carries a 10-year mandatory minimum penalty and a maximum penalty of life in prison; in Count Four, with using and carrying machine guns and destructive devices during and in relation to, and possessing machine guns and destructive devices in furtherance of, the narco-terrorism and cocaine-importation conspiracies, which carries a 30-year mandatory minimum penalty and a maximum penalty of life in prison; and in Count Five, with conspiring to use and carry machine guns and destructive devices during and in relation to, and to possess machine guns and destructive devices in furtherance of, the narco-terrorism and cocaine-importation conspiracies, which carries a maximum penalty of life in prison. The potential maximum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by President Trump in Executive Order 14159. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky, Henry L. Ross, Kevin T. Sullivan, and Kyle A. Wirshba for the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section of the National Security Division.

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

Attorney General of the United States, Todd Blanche, United States Attorney for the Southern District of New York, Jamie McDonald, Administrator of the Drug Enforcement Administration (“DEA”), Terrance C. Cole, Secretary of the Department of Homeland Security (“DHS”), Markwayne Mullin, and Director of the Federal Bureau of Investigation, Kash Patel, announced that former Venezuelan President NICOLÁS MADURO MOROS and former First Lady of Venezuela CILIA ADELA FLORES DE MADURO have been charged in a Superseding Indictment unsealed today with conspiring to commit torture, narcoterrorism, cocaine importation conspiracy, and weapons offenses.

“As alleged in today’s Superseding Indictment, for more than two decades, Nicolás Maduro Moros and Cilia Adela Flores De Maduro engaged in a conspiracy to commit torture, including the torture of United States citizens, in addition to the narcotics trafficking and weapons offenses already charged,” said U.S. Attorney Jamie McDonald. “As described in the Superseding Indictment, the Maduros and other Venezuelan leaders abused their positions of trust to enrich themselves through narco-terrorism, cocaine trafficking, and other corruption, including by employing Venezuelan military, law enforcement, and other government entities under their control to flood the United States with illegal narcotics. Today’s indictment further alleges that the Maduros and other Venezuelan leaders conspired to repress dissent through grave violations of human rights by ordering and allowing violence, threats, and physical torture under color of law.  As alleged, this included the torture of multiple United States citizens, who were subjected to unspeakable abuse. Today’s charges exemplify the tirelessness that we and our law enforcement partners will undertake to vindicate victims of crime, particularly American victims subjected to horrific treatment abroad.”

“Since the capture and arrest of Nicolás Maduro and his wife Cilia Flores, the Department of Justice has been working to uncover the extent of their alleged crimes against the people of Venezuela and of the United States,” said Attorney General Todd Blanche. “These additional charges against the Maduros reflect the dedication of this Administration to delivering justice for the victims of torture, narcoterrorism, and organized crime.”

“Maduro’s regime is responsible for countless American victims of narcoterrorism and drug trafficking,” said DHS Secretary Mullin. “Thanks to the leadership of President Trump, our Homeland Security Task Force partners, and strong coordination among DHS, DOJ, FBI, and DEA, we’re bringing Maduro and his wife to justice. President Trump is using all tools at his disposal to make America safe again both at home and abroad.”

“These indictments demonstrate that our work did not stop with the arrest of Nicolás Maduro, who terrorized the people of Venezuela for more than two decades,” said DEA Administrator Terry Cole. “DEA will continue to follow the evidence and pursue those who use corruption, violence, and positions of power to facilitate criminal activity and protect those who profit from it. Maduro’s arrest was an important step toward accountability, but it was not the last. We remain steadfast in our commitment to work with our partners to restore law and order across the Western Hemisphere and bring to justice any corrupt leader who thinks their political position shields them from consequences.”

“As alleged in the indictment, the Maduro regime subjected American citizens to torture while held in custody of the Venezuelan government - including drugs, electric shock, sexual assault, and more,” said FBI Director Kash Patel. “These charges follow the historic law enforcement-operation proudly supported by this FBI in January arresting Maduro and executing one of the most daring Foreign Transfers of Custody in United States history, returning him and his wife to the U.S. - an operation which required months of coordination, detailed planning, and seamless execution across multiple components of the federal government led by the Department of War. Today’s charges reflect the commitment from this FBI and this Department of Justice to accountability, the rule of law, and the protection of U.S. national security.” 

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

For over 25 years, NICOLÁS MADURO MOROS and CILIA ADELA FLORES DE MADURO abused their positions of public trust, enriching themselves through corruption and remaining in power through grave violations of human rights. 

Through drug trafficking, the corrupt use of law enforcement and the military, the abuse of the judicial system, and the pilfering of public funds, MADURO MOROS, FLORES DE MADURO, and other Venezuelan leaders personally benefited at the expense of the Venezuelan people. While this systemic corruption was immensely profitable for the defendants and their inner circle, it was deeply unpopular with the Venezuelan people. To undermine Venezuelan democracy and entrench themselves in power, these same leaders allegedly presided over a system of repression that relied on violence against political opposition, arbitrary detention, and the torture of detainees, including United States citizens. That torture included electric shock, asphyxiation, rape, forced nudity, prolonged isolation, starvation, punishment cells, and psychological torture, such as threats to harm and kill victims’ families.

MADURO MOROS and FLORES DE MADURO allegedly sat atop that violent power structure. They developed and facilitated the systems which they and their co-conspirators used corruptly to amass immense wealth and power, rewarding allies with ill-gotten funds and terrorizing perceived opponents through persecution and violence. These systems relied on MADURO MOROS’s and FLORES DE MADURO’s control over Venezuela’s military, judiciary, and law enforcement agencies, and their partnerships with organized criminal groups, including terrorist organizations and groups of state-sponsored gangs known as colectivos.

In amassing such wealth and power, MADURO MOROS, FLORES DE MADURO, and other members of their inner circle allegedly trafficked drugs under the protection of the Venezuelan military, judiciary, and law enforcement agencies. They allegedly partnered with narcotics traffickers and narco-terrorists from designated foreign terrorist organizations, including the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), the Ejército de Liberación Nacional (“ELN”), the Sinaloa Cartel, the Zetas, later known as the Cártel del Noreste (“CDN”), and Tren de Aragua (“TdA”), who dispatched cocaine from Venezuela to the United States via transshipment points in the Caribbean and Central America. 

MADURO MOROS, FLORES DE MADURO, and other high-ranking members of their inner circle also allegedly created and maintained a violent system of repression. Since at least 1999, thousands of Venezuelans have been harassed, threatened, arrested, prosecuted, assaulted, tortured, or killed by individuals wielding the purported authority of the Venezuelan state to ensure that MADURO MOROS and FLORES DE MADURO remained in power. MADURO MOROS and FLORES DE MADURO used military units, colectivos, and narco-terrorist groups involved in their drug trafficking to unlawfully detain and torture their victims. Such violence and repression increased around periods of political instability in which MADURO MOROS’s and FLORES DE MADURO’s power was threatened. During these periods, MADURO MOROS, FLORES DE MADURO, and other high-level Venezuelan officials jointly undertook efforts to stifle those who opposed, or were merely suspected of opposing, MADURO MOROS or his regime. Those efforts included physical and psychological torture systematically used to terrify the populace and silence dissent. 

In addition to MADURO MOROS and FLORES DE MADURO, other high-level officials allegedly were integral to this system. One high-level Venezuelan official, referred to in the Superseding Indictment as CC-1, ordered the murders of certain individuals who opposed MADURO MOROS or his regime, oversaw torture undertaken by officials under his command, and personally threatened the murder of a prisoner’s child as a form of psychological torture. Another senior Venezuelan officer who reported directly to MADURO MOROS, referred to in the Superseding Indictment as CC-2, developed torture methods that he presented for approval to MADURO MOROS, led an agency responsible for torturing scores of victims, and personally signed off on the unlawful arrest and torture of specific individuals. A third Venezuelan official, referred to in the Superseding Indictment as CC-3, personally ordered and participated in the torture of civilians and military members, including United States citizens, who were believed to pose a threat to MADURO MOROS’s rule. For example, one particular United States citizen was detained in Venezuela and subjected to, among other things, deprivation of food and water, simulated drowning, repeated beatings, electric shock to his testicles, and forced injections. 

*                *                *

The Superseding Indictment charges Maduro Moros, 63, and FLORES DE MADURO, 69, in Count One, with participating in a narcoterrorism conspiracy, which carries a 20-year mandatory minimum sentence and a maximum sentence of life in prison; in Count Two, with conspiring to commit torture, which carries a maximum sentence of 20 years in prison; in Count Three, with conspiring to import cocaine into the United States, which carries a 10-year mandatory minimum sentence and a maximum sentence of life in prison; in Count Four, with using and carrying machine guns and destructive devices during and in relation to, and possessing machine guns and destructive devices in furtherance of, the narco-terrorism and cocaine-importation conspiracies, which carries a 30-year mandatory minimum sentence and a maximum sentence of life in prison; and in Count Five, with conspiring to use and carry machine guns and destructive devices during and in relation to, and to possess machine guns and destructive devices in furtherance of, the narco-terrorism and cocaine-importation conspiracies, 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 defendants will be determined by the judge.

Mr. McDonald thanked the Homeland Security Task Force; DEA’s Special Operations Division, New York Division, New York Drug Enforcement Task Force, Miami Division, Rocky Mountain Division, Andean Division, and Europe Division; FBI’s New York Field Office, International Human Rights Unit, Nashville-Knoxville Resident Agency, and Legal Attaché Office in Madrid, Spain; HSI’s New York Field Office and Attaché Madrid; the U.S. Department of Justice’s Joint Task Force Vulcan, Office of International Affairs, Eastern District of New York, Southern District of Florida, National Security Division’s Counterterrorism Section, National Security Cyber Section, and Office of Intelligence, and the Criminal Division’s Office of Human Rights and Special Prosecutions, Office of Judicial Attaché in Bogotá, and Money Laundering, Narcotics and Forfeiture Section; United States Marshals Service for the Southern District of New York; and the New York City Police Department for their assistance.

This prosecution is part of the Homeland Security Task Force (“HSTF”) initiative established by Executive Order 14159. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky, Henry L. Ross, Kevin T. Sullivan, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section of the National Security Division.

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

1. ^

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

   s5_indictment_u.s._v._nicolas_maduro_moros_and_cilia_adela_flores_de_maduro.pdf

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that MICHAEL EDWARDS, a/k/a “Only1Giela,” was sentenced today to eight years in prison by U.S. District Judge John G. Koeltl for orchestrating an expansive scheme to steal and fraudulently alter millions of dollars in checks before depositing the checks or posting them for sale on his Telegram channel, after which he obstructed justice by deleting evidence of his crimes.  On November 13, 2025, EDWARDS pled guilty to conspiring to commit bank fraud, unlawfully possessing a stolen postal key and conspiring to unlawfully possess a postal key, stealing mail and conspiring to steal mail, and committing aggravated identity theft.

“For more than two years, Michael Edwards criminally utilized the U.S. mail system to steal millions of dollars from Americans who rely on it by obtaining postal keys, stealing thousands of checks from the mail, washing those checks, and depositing the fraudulent checks or posting them for sale on Telegram,” said U.S. Attorney Jamie McDonald. “Even after his arrest, Edwards kept operating his illicit business on Telegram and obstructed justice by deleting his Telegram posts. Today’s prison sentence is indicative of the result awaiting those who breach the U.S. mail system to steal from everyday Americans.”

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

Between approximately January 2022 and July 2024, EDWARDS orchestrated a scheme to steal millions of dollars in checks from U.S. Postal Service collection boxes in New York and elsewhere.  As part of the scheme, EDWARDS coordinated with others to purchase postal keys that would unlock collection boxes in affluent neighborhoods in Manhattan.  After the checks were stolen, EDWARDS and his co-conspirators fraudulently altered the payees and, in some instances, the check amounts.  EDWARDS also coordinated with and directed others to recruit third parties to provide their bank account information, and supervised the deposit of millions of dollars in fraudulently altered checks into bank accounts in Connecticut, Florida, Pennsylvania, and South Carolina. 

EDWARDS was arrested in July 2023 after New York City Police Department (“NYPD”) officers caught EDWARDS and a co-conspirator stealing mail, during which EDWARDS and the co-conspirator nearly struck an NYPD officer while fleeing in their getaway vehicle.  Even after his arrest, EDWARDS continued to perpetrate his fraud scheme, including by posting approximately $32 million in stolen checks on his Telegram channel “Only1Giela.” 

In August 2024, shortly after EDWARDS was charged with continuing to commit crimes on pre-trial release based in part on evidence found on his Telegram channel, EDWARDS obstructed justice by deleting the contents of his Telegram channel.

Ultimately, EDWARDS’ fraud scheme involved more than 2,600 stolen checks and resulted in a total intended loss of more than $55 million, of which more than $18 million was deposited into co-conspirator accounts. 

*                *                * 

In addition to the prison term, EDWARDS, 31, of Bridgeport, Connecticut, was sentenced to three years of supervised release, ordered to forfeit $18,840,084.45, and ordered to pay restitution.

Mr. McDonald praised the outstanding investigative work of the USPIS.  Mr. McDonald also thanked the Department of Homeland Security, Homeland Security Investigations and the NYPD for their assistance with the investigation.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Jerry J. Fang and William K. Stone are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jamie McDonald, announced the conviction by jury of JONATHAN SPALLETTA, a/k/a “Cthulhon,” a/k/a “Jspalletta,” for computer fraud and money laundering in connection with his hacks of the decentralized cryptocurrency exchange Uranium Finance (“Uranium”).  SPALLETTA was convicted on all counts of the Indictment following a six day jury trial before U.S. District Judge Jed S. Rakoff.

“As a unanimous Manhattan jury has found, Jonathan Spalletta repeatedly exploited vulnerabilities in the code of a decentralized cryptocurrency platform to steal tens of millions of dollars,” said U.S. Attorney Jamie McDonald.  “Spalletta’s own words are indicative of his dangerously misguided indifference for his victims and the hardships he caused, saying: ‘Crypto is just fake internet money anyway.’  As Spalletta’s many victims know, those words could not be further from the truth.  Spalletta’s crimes cost real people to lose real money—over $50 million dollars—and caused an entire crypto platform to collapse.  Our prosecutors of the Office and our agency partners have done outstanding work to ensure Spaletta’s virtual world criminal conduct ended in his real-world criminal conviction.”

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

Uranium was a decentralized cryptocurrency exchange that allowed users to deposit and exchange different kinds of cryptocurrencies via liquidity pools.  In April 2021, SPALLETTA committed two separate hacks of Uranium.

In the first hack, on April 8, 2021, SPALLETTA engaged in a deceptive series of transactions with Uranium’s smart contract that SPALLETTA used to withdraw far more “rewards” in cryptocurrency than he was authorized to receive.  He repeated those transactions over and over until he had drained the liquidity pool of nearly all its rewards tokens.  In total, SPALLETTA successfully extracted cryptocurrency worth approximately $1.4 million in the first hack.  Approximately two weeks after he fraudulently obtained the funds, SPALLETTA told another individual in writing, “I did a crypto heist of $1.5MM a couple of weeks ago . . . There was a bug in a smart contract, and I exploited it . . . Crypto is all fake internet money anyway.”  SPALLETTA subsequently extorted Uranium into agreeing to allow him to keep approximately $386,000 of the money he stole as a sham “bug bounty” to help him evade prosecution in exchange for return of the remainder of the stolen money to Uranium.

In the second hack, on April 28, 2021, SPALLETTA exploited an error in the Uranium smart contract that governed how much cryptocurrency he could withdraw in a liquidity pool on Uranium. SPALLETTA exploited that issue across multiple separate Uranium liquidity pools, fraudulently obtaining approximately $53.3 million in cryptocurrency and causing Uranium to shut down due to lack of funds.

SPALLETTA then laundered the funds he had fraudulently obtained from Uranium through a complex series of cryptocurrency transactions, including by using the cryptocurrency mixer Tornado Cash.

After laundering the funds, SPALLETTA used the money he had fraudulently obtained to purchase personal collectable items, including but not limited to (i) rare cards for the trading card game Magic: The Gathering (“Magic Cards”); (ii) rare cards for the trading card game Pokémon (the “Pokémon Cards”); and (iii) antique Roman coins (the “Antique Coins”), among other items.  In particular, SPALLETTA used the fraudulently obtained funds to purchase: (i) a “Black Lotus” Magic Card for approximately $500,000; (ii) 18 packs of sealed “Alpha Booster” Magic Cards for approximately $1,512,500; (iii) one sealed box of first edition “Booster” Pokémon Cards for approximately $257,500; (iv) one first edition complete base set of Pokémon Cards for approximately $750,000; (v) a piece of fabric from the original Wright brothers’ airplane that was subsequently transported to the surface of the moon by astronaut Neil Armstrong on the first moon landing, for approximately $137,500; (vi) one “Eid Mar Denarius,” an Antique Coin commemorating the assassination of Julius Caesar, for approximately $601,545.

Photographs of the Black Lotus Magic Card, the piece of fabric from the original Wright brothers’ airplane that was subsequently transported to the surface of the moon by astronaut Neil Armstrong, and certain of the Antique Coins, all of which were seized from the residence of SPALLETTA pursuant to a judicially-authorized search warrant, are below.

In addition, on February 24, 2025, law enforcement seized pursuant to a judicially-authorized seizure warrant cryptocurrency worth approximately $31 million at the time of seizure that SPALLETTA had fraudulently obtained from Uranium.

If you believe you have been a victim of the Uranium hack, please contact [email protected].

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SPALLETTA, 36, of Rockville, Maryland, was convicted of one count of computer fraud, which carries a maximum sentence of 10 years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison. 

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

Mr. McDonald praised the outstanding work of HSI.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Chief of Police for the Town of Haverstraw, New York, John Gould Jr., announced today the unsealing of an Indictment charging JAQUEY WILKES, a/k/a “BQ,” and TYRONE STEWART, a/k/a “Ty,” with robbery, firearms offenses, and murder in connection with the March 5, 2023 fatal shooting of Eric Quinones in the parking lot outside of his home in Pomona, New York.  WILKES, STEWART, and a third individual, LEROY SIMPSON, a/k/a “Unc,” were also charged with narcotics conspiracy in connection with the drug transaction that preceded the robbery and murder.  All three defendants were presented this afternoon before U.S. Magistrate Judge Victoria Reznik.  The case is assigned to U.S. District Judge District Judge Philip M. Halpern.

“This Office and our law enforcement partners continue to work tirelessly to keep the residents of this District safe,” said U.S. Attorney Jamie McDonald.  “As alleged, Jaquey Wilkes and Tyrone Stewart robbed and murdered Eric Quinones outside of his home during a drug deal orchestrated by Leroy Simpson.  We will relentlessly pursue those who plague our community with drug and gun violence and will hold them accountable for their crimes.”

“Today’s charges underscore the FBI’s resolve to hold violent offenders who terrorize our communities accountable for their actions,” said Assistant FBI Director James C. Barnacle, Jr. “As alleged, the defendants orchestrated a drug‑related robbery that culminated in a tragic and senseless murder. The FBI will continue to pursue these offenders until they are held fully accountable. We extend our gratitude to our partners at the Haverstraw Police Department and the United States Attorney’s Office for their dedication and coordination throughout this investigation.”

“This indictment is the result of an intensive investigation and the unwavering commitment of our detectives and law enforcement partners to seek justice for the victim and his family,” said Chief of Police for the Town of Haverstraw, John Gould Jr. “From the outset, the Town of Haverstraw Police Department remained committed to following the evidence wherever it led and ensuring that those allegedly responsible for this violent crime were held accountable. I want to commend the dedicated members of the Town of Haverstraw Police Department Detective Division, the FBI, the United States Attorney’s Office for the Southern District of New York, and the Rockland County District Attorney’s Office for their collaboration and persistence throughout this investigation. This case demonstrates the importance of strong partnerships among local, federal, and county law enforcement agencies and sends a clear message that acts of violence in our community will be investigated relentlessly, regardless of how much time has passed.”

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

On or about March 5, 2023, WILKES and STEWART robbed Eric Quinones at gunpoint in the parking lot outside of the Manors Apartments in Pomona, New York.  WILKES and STEWART stole from Quinones, without limitation, narcotics and a firearm. In the course of that robbery, WILKES and STEWART brandished firearms and shot Quinones, resulting in his death. SIMPSON conspired with WILKES and STEWART to orchestrate the narcotics transaction that preceded Quinones’s robbery and murder.

*                *               *

WILKES, 29, of Nyack, New York, and STEWART, 35, of Nyack, New York, are each charged with Hobbs Act Robbery, which carries a maximum term of twenty years in prison; Firearms Use, Carrying, and Possession, which carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison, and; Murder Through Use of a Firearm, which carries a maximum term of life in prison or death.  WILKES, STEWART, and SIMPSON, 33, of Pomona, New York, are also charged with Narcotics Conspiracy, which carries a maximum term of twenty years in prison.

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

Mr. McDonald praised the outstanding investigative efforts of the FBI Westchester County Safe Streets Task Force, Town of Haverstraw Police Department, Rockland County Sheriff’s Office, and Orangetown Police Department and thanked the Rockland County District Attorney’s Office for its assistance in this investigation.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Kathryn Wheelock and Ioannis Drivas are in charge of the prosecution.

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

1. ^

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

Jamie McDonald, the United States Attorney for the Southern District of New York, announced today that MICHAEL SMITH was sentenced to 18 months in prison for his role in a scheme to defraud music streaming platforms and musicians of royalty payments. On March 19, 2026, SMITH pled guilty to one count of conspiracy to commit wire fraud before U.S. District Judge John G. Koeltl, who imposed today’s sentence.

“Michael Smith exploited super intelligence technology to generate a fraud,” said U.S. Attorney Jamie McDonald. “By flooding music streaming platforms with automated bots in the place of consumers, and fake songs in the place of creativity, Smith robbed millions in royalty payments from genuine artists and their fans. This Office is committed to ensuring the integrity of all markets, and protecting the public from those who use super intelligence for fraud.”

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

Music can be streamed through platforms such as Amazon Music, Apple Music, Spotify, and YouTube Music (the “Streaming Platforms”).  Each time a song is streamed through one of the Streaming Platforms, the songwriter who composed the song, the musician who performed it, and in certain cases other rights holders, are entitled to small royalty payments.  Royalty payments are made proportionately to musicians and songwriters from a pool of funds.  As a result, streaming fraud diverts funds from musicians and songwriters whose songs were legitimately streamed by real consumers to those who use automation to falsely create the appearance of legitimate streaming.

SMITH’s streaming fraud lasted from 2017 to 2024 and he executed it in three steps.  First, SMITH created thousands of fraudulent accounts on the Streaming Platforms (the “Bot Accounts”) that he could use to stream songs. Second, he used software to cause the Bot Accounts to continuously stream purported songs that he owned, which were generally created using super intelligence. Third, Smith collected royalties based on the fraudulent streams he orchestrated his own Bot Accounts to conduct.

SMITH spread his automated streams across thousands of songs to avoid anomalous streaming as to any single song, which would likely cause the Streaming Platforms to discover his scheme. At times SMITH was using as many as 10,000 Bot Accounts at once to fraudulently stream music, and he used fake email accounts and fraudulently-obtained debit cards to create the Bot Accounts. As SMITH explained it in an email, he needed “a TON of songs fast” in order to circumvent the “anti fraud policies” of the Streaming Platforms.  To obtain the necessary number of songs for his scheme to succeed, SMITH turned to super intelligence, which he used to create hundreds of thousands of AI-generated songs for which he could manipulate the streams. 

SMITH’s hundreds of thousands of AI-generated songs were streamed by his Bot Accounts billions of times.  For example, in April 2023, the entire catalogue of Taylor Swift received 9.3 million streams on YouTube Music from family plan streams, while in the same month, Smith’s Bot Accounts used family plans to fraudulently stream his AI-generated music 80.9 million times.  Smith’s Bot Account streams allowed him to fraudulently obtain more than $8 million in royalties from the Streaming Platforms.

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In addition to the prison term, SMITH, 54, of Cornelius, North Carolina, was sentenced to two years of supervised release and ordered to pay $8,091,843.64 in forfeiture.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), Francis J. Russo, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that MIGUEL FRANCISCO MORA NUNEZ  and CHRISTHIAN AYBAR-BERROA were sentenced to 180 months and 151 months in prison, respectively, for possession of ammunition as illegal aliens in connection with the shooting of an off-duty U.S. Customs and Border Protection (“CBP”) Officer in Manhattan last summer.  MORA NUNEZ and AYBAR-BERROA previously pled guilty before U.S. District Judge Loretta A. Preska, who imposed today’s sentences.

“Today’s sentences reflect our Office’s commitment to removing violent criminals from our streets,” said U.S. Attorney Jamie McDonald.  “Last summer, Mora Nunez and Aybar-Berroa, who were illegally in the United States, attempted to murder a member of the law enforcement community.  Their actions shocked our city and caused devastating, lasting harm to the victims of their indiscriminate violence.”

“This cold-blooded act of violence nearly cost a heroic officer his life simply because of the defendants’ indiscriminate targeting of innocent citizens,” said HSI New York Acting Special Agent in Charge Pete Gizas. “The defendants’ actions were an affront to every New Yorker who deserves to feel safe, and these sentences serve as a direct message that those who bring this level of danger to our streets will be held fully accountable. Working in lockstep with our law enforcement partners, HSI New York will never back down from investigating and pursuing those whose violence compromises the wellbeing and security of our citizens.”

“Today’s sentencing brings us another step closer to full justice for our officer and our entire community,” said CBP Director of Field Operations Francis J. Russo.  “While our brave officer continues his courageous recovery, this resolution sends an unmistakable message that violence against law enforcement will be met with the full weight of the law.  We are deeply grateful to the Southern District of New York, Homeland Security Investigations, and the New York City Police Department for their unwavering partnership throughout this process, ensuring that those responsible are held fully accountable for their heinous actions.”

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

On July 19, 2025, at approximately 11:50 p.m., MORA NUNEZ shot an off-duty CBP Officer in Fort Washington Park in Manhattan.  A bullet MORA NUNEZ fired struck the CBP Officer in the face and right arm.  The CBP Officer returned fire, hitting MORA NUNEZ twice, before MORA NUNEZ fled on a motorbike driven by AYBAR-BERROA.  AYBAR-BERROA later tried to get rid of the clothing he was wearing during the shooting because it was bloody and discussed with a relative of MORA NUNEZ that they needed to get rid of AYBAR-BERROA’s bloody clothes. 

Both MORA NUNEZ and AYBAR-BERROA entered the United States illegally, are in the United States unlawfully, and are subject to orders of removal from the United States.

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In addition to their prison terms, MORA NUNEZ, 22, and AYBAR-BERROA, 23, each of the Dominican Republic, were both sentenced to three years of supervised release.

Mr. McDonald thanked HSI, CBP, and the NYPD for their assistance in this case.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Attorney General for the United States, Todd Blanche, United States Attorney for the Eastern District of Louisiana, David I. Courcelle, United States Attorney for the Middle District of Florida, Gregory W. Kehoe, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging SALEEM ALZAQ, as well as the arrests of OMAR ADHAMI, ABDEL ADHAMI, and RAED YOUSEF, for their involvement in paying, soliciting and collecting funds for Hamas.  In a coordinated law enforcement operation in France, three of ALZAQ’s associates, FAOUZI BARIKA, AMEL OUALID, and NORDINE BARIKA, were arrested by the French General Directorate for Internal Security. 

“This Office and our law enforcement partners will root out and prosecute those who finance Hamas, no matter where they are located,” said U.S. Attorney Jamie McDonald.  “As alleged, Saleem Alzaq was the center of a Hamas financing network that operated around the globe, soliciting more than a million dollars from individual donors including here in the United States.  The close cooperation of law enforcement and prosecutors’ offices to dismantle Alzaq’s alleged Hamas financing network demonstrates our commitment to depriving Hamas of the funding it relies on in Gaza and to commit terror attacks like the brutal October 7, 2023, massacre of more than a thousand innocent victims, including dozens of Americans.”

“Anyone who finances or assists terrorist organizations responsible for the deaths of American citizens should expect to be prosecuted by the Department of Justice,” said Attorney General Todd Blanche.  “For decades, members of Hamas have raised funding to carry out brutal terrorist attacks.  Under the leadership of President Trump, the Department of Justice will continue pursuing terrorists who kill Americans, dismantling terrorist finance networks, and delivering justice for the families of victims.”

“According to the indictment and complaint filed in the Eastern District of Louisiana, Saleem Alzaq solicited financial donations on behalf of Hamas, a terrorist organization responsible for the commission of heinous attacks worldwide,” said U.S. Attorney David I. Courcelle for the Eastern District of Louisiana.  “Omar Adhami and Abdel Adhami are accused of providing Alzaq with resources intended to fund Hamas’ relentless reign of terror.  The Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana are laser focused on the identification, prosecution, and eradication of terrorist networks, and the individuals who financially support these networks.” 

“Providing financial assistance and support to terrorist organizations like Hamas place the safety and security of everyone, anywhere in the world, at risk,” said U.S. Attorney for the Middle District of Florida Gregory W. Kehoe.  “The diligence and cooperation exhibited by our domestic and international law enforcement partners during this investigation demonstrates our collective resolve to relentlessly pursue, disrupt, and prosecute those who engage in these illegal activities.”

"Saleem Alzaq allegedly raised funds for Hamas, a designated foreign terrorist organization, under the guise of collecting humanitarian aid for the people of Gaza,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI and our partners will stop at nothing to dismantle the funding networks of terrorist organizations.”

"The NYPD’s counterterrorism work knows no borders,” said NYPD Commissioner Jessica S. Tisch.  “Our intelligence analysts uncovered this international finance network and built the case that exposed more than $2 million being funneled to Hamas.  Saleem Alzaq, a leader in Hamas’ military arm responsible for planning and carrying out terrorist attacks, and the other defendants allegedly solicited donations under the guise of humanitarian aid and then directed that money to Hamas.  This is the kind of extraordinary counterterrorism work the NYPD does every day to disrupt threats before they reach New Yorkers, and I thank our law enforcement partners for helping us dismantle this network.”

According to the Alzaq Indictment unsealed in the Southern District of New York, the Adhami Complaints filed in the Eastern District of Louisiana, and the Yousef Indictment filed in the Middle District of Florida:(1)

ALZAQ is a Hamas member in the Gaza Strip and a battalion deputy in the Izz al-Din al-Qassam Brigades (the “Al-Qassam Brigades”), Hamas’s armed wing responsible for planning and executing terrorist attacks. ALZAQ serves in the Photography Department of the Al-Qassam Brigades’ Shujaiyya Brigade Media Office, a Hamas propaganda office.  In this role, ALZAQ has photographed Hamas events, including events led by senior Hamas leaders such as Ismail Haniyeh and Yahya Sinwar.  ALZAQ distributes these photographs and descriptions of Hamas events to others involved in the Hamas propaganda apparatus.  ALZAQ also has posted Hamas propaganda across multiple social media platforms, including posts glorifying deceased leaders of Hamas (such as Sheikh Ahmed Yassin, Haniyeh, and Sinwar); supporting Al-Qassam Brigades terrorists and glorifying Al-Qassam Brigades “martyrs;” and promoting and celebrating Hamas’s October 7, 2023, terrorist attacks against Southern Israel, in which more than 1,200 victims were murdered and more than 250 were taken hostage, including 46 American citizens. 

Since at least in or about January 2020, ALZAQ has operated an international Hamas fundraising network that collects donations from individuals around the world, including from individuals in the United States.  ALZAQ promotes his Hamas fundraising through social media campaigns as purportedly providing humanitarian aid to people in Gaza, but in fact raises funds for Hamas.  Since January 2020, ALZAQ has collected more than $1.7 million through purported charitable campaigns.  ALZAQ’s associates in France, BARIKA, AMEL OUALID, and others assisted ALZAQ in collecting and transferring money raised for Hamas. 

ABDEL ADHAMI and OMAR ADHAMI donated funds to ALZAQ’s Hamas financing network. Beginning in approximately February 2021, and continuing through approximately September 2026, ABDEL ADHAMI allegedly contributed approximately $94,000 and OMAR ADHAMI allegedly contributed approximately $11,000 to Hamas, a designated terrorist organization, knowing that the organization engaged in terrorist activities, and attempted to conceal their contributions to Hamas through wire transfers, and the use of intermediaries.

YOUSEF provided almost $50,000 to ALZAQ’s Hamas financing network. 

*                *                *

ALZAQ, 45, of Gaza, is charged with (i) one count of conspiring to provide material support to Hamas, a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) one count of conspiring to violate the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison; (iii) one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; and (iv) one count of conspiring to defraud the United States, which carries a maximum sentence of five years in prison.

OMAR ADHAMI, 33, of Covington, Louisiana, is charged with (i) one count of providing material support to a Foreign Terrorist Organization, which carries a maximum penalty of 20 years in prison; (ii) one count of conspiracy to provide material support to a Foreign Terrorist Organization, which carries a maximum penalty of 20 years in prison; (iii) one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; (iv) one count of and conspiring to commit money laundering, which carries a maximum penalty of 20 years in prison.

ABDEL ADHAMI, 35, of Covington, Louisiana, is charged with (i) one count of providing material support to a Foreign Terrorist Organization, which carries a maximum penalty of 20 years in prison; (ii) one count of conspiracy to provide material support to a Foreign Terrorist Organization, which carries a maximum penalty of 20 years in prison; (iii) one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and (iv) one count of conspiring to commit money laundering, which carries a maximum penalty of 20 years in prison. 

YOUSEF, 56, of Lutz, Florida, is charged with (i) one count of conspiring to provide material support to a foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) five counts of attempting to provide material support to a foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; (iii) one count of providing funds, goods, and services to a specially designated terrorist, which carries a maximum sentence of 20 years in prison; (iv) five counts of attempting to provide funds, goods, and services to a specially designated terrorist, each of which carries a maximum sentence of 20 years in prison; (v) one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; (vi) five counts of money laundering, each of which carries a maximum sentence of 20 years in prison; and (vii) one count of passport fraud, which carries a maximum sentence of five years in prison.

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

Mr. McDonald praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force and the NYPD Intelligence Division. Mr. McDonald also thanked the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division for their assistance with this investigation, the FBI’s New Orleans and Tampa Field Offices, and the French General Directorate for Internal Security and National Anti-Terrorism Prosecutor’s Office.

The ALZAQ case is being handled by the Illicit Finance & Money Laundering Unit and National Security and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York.  Assistant U.S. Attorneys David A. Markewitz, Ben Arad, Sarah L. Kushner, Juliana N. Murray, and Keith Savino are in charge of the prosecution, with assistance provided by Trial Attorney Rob MacDonald of the National Security Division’s Counterterrorism Section.

The ADHAMI case is being investigated by the FBI New Orleans Field Office.  Assistant U.S. Attorney Greg Kennedy for the Eastern District of Louisiana is prosecuting the case.

The YOUSEF case is being handled by the National Security and International Narcotics Section of the U.S. Attorney’s Office for the Middle District of Florida.  Assistant U.S. Attorneys Lindsey Schmidt and Michael Buchanan are prosecuting the case.  The Federal Bureau of Investigation is investigating the case. 

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Executive Special Agent in Charge of the New York Field Office of Internal Revenue Service, Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced today that JOSEPH CLAY pled guilty to an Information charging him with one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return. The charge arises from CLAY’s orchestration of a nearly $6 million tax fraud scheme, from 2019 to 2024, involving the filing of thousands of individual income tax returns that included false information designed to fraudulently reduce taxpayers’ federal and state tax burdens. As part of today’s guilty plea before U.S. District Judge Cathy Seibel, CLAY agreed to pay the Internal Revenue Service (“IRS”) more than $5 million in restitution.

“Tax preparers are entrusted with helping their clients follow the law—not systematically falsifying returns to manufacture deductions and refunds,” said U.S. Attorney Jamie McDonald. “Joseph Clay turned tax preparation into a years-long fraud scheme, filing thousands of false returns that deprived federal and state governments of nearly $6 million in tax revenue. Even a guilty plea to state tax fraud did not stop him: as he admitted today, Clay continued filing fraudulent returns for his customers.” 

“This case is a stark reminder that tax fraud is not a victimless crime,” said IRS-CI Executive Special Agent in Charge Harry T. Chavis, Jr. “By orchestrating a scheme that manipulated thousands of tax returns and deprived both the IRS and New York state of millions in revenue, Joseph Clay abused the trust placed in tax professionals and harmed honest taxpayers across our community. Today’s guilty plea sends a clear message: we will aggressively pursue those who exploit the tax system for personal gain. Our commitment to protecting taxpayers and upholding the integrity of our nation’s tax laws remains unwavering.”

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

From 2019 through 2024, covering tax years 2018 through 2023, CLAY—who operated tax preparation businesses in Yonkers going by the names Premier Tax and Professional Services LLC and Prime Tax & Professional Services LLC—filed over 3,500 tax returns with the IRS and New York state authorities. During this period, CLAY repeatedly and routinely submitted false information in customers’ tax returns, including, among other things, inflated and fictitious itemized tax deductions and fraudulent claims for residential energy credits, to reduce his customers’ tax liability and increase his customers’ tax refunds. In total, CLAY’s conduct deprived the IRS of more than $5 million in tax revenue, and deprived New York state tax authorities of close to $900,000.

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CLAY, 52, of Lodi, New Jersey, pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return, which carries a maximum sentence of three 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. McDonald thanked IRS-CI for their outstanding work in this case.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the arrests and unsealing of an Indictment charging DWIGHT FLOWERS, TERRENCE PORTER, and TALEAK HARRIS with trafficking nearly 100 firearms, including a “Glock switch,” ammunition, and approximately 700 grams of cocaine in Manhattan and the Bronx. FLOWERS and PORTER were arrested yesterday in Nassau County and FLOWERS was presented this afternoon before U.S. Magistrate Judge Valerie Figueredo and detained; PORTER is expected to be presented tomorrow.  HARRIS was arrested yesterday in Virginia.  The case has been assigned to the Honorable Lewis J. Liman.

“The illegal flow of firearms puts New Yorkers’ lives at risk, and we will not stand by and allow it,” said U.S. Attorney Jamie McDonald.  “As alleged, Dwight Flowers, Terrence Porter, and Taleak Harris illegally trafficked dangerous drugs and almost 100 firearms—including long-arm rifles, pistols, and a machinegun—into the Southern District of New York.  To anyone trafficking illegal guns in New York City: you are on notice.  We are watching, we are working with our law enforcement partners to track these weapons and those who move them, and we will hold you accountable.”

“As alleged, the defendants built a steady pipeline of illegal guns into New York City, selling nearly 100 weapons across five transactions in Manhattan and the Bronx and creating a grave threat to those who live, work and go to school in these communities,” said HSI New York Acting Special Agent in Charge Pete Gizas.  “The determined efforts of HSI New York, as a co-leader of the Homeland Security Task Force, together with the U.S. Attorney’s Office for the Southern District of New York, the NYPD, and DEA resulted in the seizure of this cache, including a firearm equipped with a machinegun conversion device, and the dismantlement of this alleged iron pipeline.  Every New Yorker deserves to move through their neighborhood without the danger created by illegal weapons trafficking, and HSI stands committed to making that expectation a reality.”

“This trio of criminals thought they could traffic nearly 100 firearms and a substantial amount of cocaine in our city without consequence, but they were wrong,” said NYPD Commissioner Jessica S. Tisch.  “Because of the brave undercover work of our NYPD investigator, these guns and drugs will never make it onto our streets.  I thank our fearless officer and law enforcement partners for their thorough work to shut down this operation, and the U.S. Attorney’s Office for the Southern District of New York for their continued commitment to holding gun traffickers accountable.”  

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

From on or about June 2026 through September 2026, FLOWERS, PORTER, and HARRIS sold approximately 93 firearms to an undercover law enforcement officer with the New York City Police Department across five transactions, which took place in a commercial parking lot in the Bronx and on the street in Manhattan.  HARRIS supplied PORTER and FLOWERS with the firearms that they sold to the undercover law enforcement officer.  In addition, PORTER and HARRIS sold the same undercover law enforcement officer hundreds of grams of cocaine during these same five transactions.

Moreover, in September 2026, FLOWERS sold the undercover law enforcement officer a firearm with a machinegun conversion device installed.  That device is a part capable of converting a semiautomatic firearm into a firearm capable of fully automatic fire.  A photograph of the machinegun conversion device affixed to one of the firearms FLOWERS sold to the undercover law enforcement officer is below:

Photographs of the firearms and narcotics sold by FLOWERS, PORTER, and HARRIS across the five transactions are depicted below:

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FLOWERS, 58, of Queens, New York, PORTER, 50, of Queens, New York, and HARRIS, 49, of Chester, Virgina, are each charged with one count of conspiring to commit firearms trafficking, which carries a maximum sentence of 15 years in prison.

In addition, FLOWERS and PORTER are together charged with one count of conspiring to distribute and possession with intent to distribute cocaine, which carries a maximum sentence of 20 years in prison; one count of distribution and possession with intent to distribute cocaine, which carries a maximum sentence of 20 years in prison; and one count of firearms use, carrying, and possession in connection with a drug trafficking offense, which carries a maximum sentence of life in prison and a minimum sentence of five years in prison.  FLOWERS is also charged with four additional counts of distribution and possession with intent to distribute cocaine and three additional counts of firearms use, carrying, and possession in connection with a drug offense, as well as a count of possession of a machinegun, which carries a maximum sentence of 10 years in prison.

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

Mr. McDonald praised the outstanding investigative work of HSI New York's JFK Homeland Security Task Force, the United States Marshals Service, and the NYPD.

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Kathryn Wheelock and Rebecca Delfiner are in charge of the prosecution.

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that JOHN AFRIYIE has been charged with wire fraud, impersonating a federal officer, and aggravated identity theft. AFRIYIE was arrested today and presented before U.S. Magistrate Judge Valerie Figueredo. The case is assigned to U.S. District Judge Denise L. Cote.

“Alongside our law enforcement partners, this Office will continue working diligently to root out fraud, vindicate victims’ rights, and promote respect for the rule of law,” said U.S. Attorney Jamie McDonald. “As alleged in the indictment, John Afriyie took advantage of multiple victims by defrauding them of over $1 million on false promises to deliver luxury watches based on connections he never had. Afriyie’s conduct was even more brazen in that he impersonated his former probation officer to further his fraudulent goals, even after serving a sentence for insider trading in this District.”  

“The charges imposed on this repeat offender reflect the severity of his alleged crimes,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Not only did Afriyie allegedly dupe his victims into trusting them with their money, in exchange for luxury watches, he allegedly bolstered his ruse by impersonating a federal officer. The FBI takes fraud and theft violations seriously and will continue to take swift action to bring these fraudsters to justice.”

According to the Indictment and public records:(1)

Between at least in or about February 2023 and in or about November 2024, AFRIYIE falsely represented to at least five victims that he could obtain highly sought-after, luxury brand watches at retail price through his purported connections in the fashion industry. Based on those false representations, the victims identified specific models of watches and sent money to AFRIYIE so that he could obtain these watches for them at retail price, despite such watches having long waitlists based on their exclusivity.

AFRIYIE, who was previously convicted of securities fraud and wire fraud for insider trading in the Southern District of New York, further falsely claimed to the victims that, as a result of his prior conviction, a probation officer in the Southern District of New York had to review his financial transactions and had raised issues with the manner in which the victims sent funds to AFRIYIE. Based on those false representations, the victims sent additional funds to AFRIYIE with the expectation that, once the probation officer and the federal judge overseeing his case approved the transactions, AFRIYIE would return the excess funds. AFRIYIE also impersonated the probation officer by falsifying an email from the probation officer and sending a screenshot of that email to a victim in furtherance of his fraudulent scheme to demand more money from that victim. 

In total, AFRIYIE received at least $1.2 million from the victims and never provided any of the victims with the watches they were promised. Instead, AFRIYIE appears to have lost substantially all of the victims’ funds through his personal trading activity.

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AFRIYIE, 39, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of impersonating a federal officer, which carries a maximum sentence of three years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

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

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Samantha Fry is in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that the founders and operators of Legend Venture Partners LLC (“Legend”) and its affiliated entities were sentenced to significant prison time for defrauding their investors, violating their fiduciary duties to those investors, and stealing their funds. MARIO GOGLIORMELLA was sentenced to 52 months in prison, and STEVEN LACAJ and KARIM IBRAHIM, a/k/a “Chris Hayes,” were each sentenced to 42 months in prison. GOGLIORMELLA, LACAJ, and IBRAHIM pled guilty before U.S. District Judge Vernon S. Broderick, who imposed sentence on GOGLIORMELLA on September 16, 2026; LACAJ on September 23, 2026; and IBRAHIM today. 

“This Office will continue to prioritize enforcement against fraud in the pre-IPO space,” said U.S. Attorney Jamie McDonald. “Our markets—both public and private—can flourish only if their integrity is preserved. By charging undisclosed markups of over a hundred percent and pretending their own disciplinary histories didn’t exist, the defendants—the founders and operators of Legend Venture Partners LLC—stole from hundreds of investors and undermined the functioning of markets that are vital to innovation and growth.”

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

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

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

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

At first, the defendants operated this scheme as a marketing arm for StraightPath Venture Partners, Inc. (“StraightPath”). In approximately 2021, multiple individuals associated with StraightPath received subpoenas from the SEC, and in approximately February 2022, StraightPath ceased operations. In approximately February 2022, when StraightPath ceased operations, GOGLIORMELLA, LACAJ, and IBRAHIM began conducting the scheme under the corporate entity Legend Venture Partners, LLC (“Legend”), where they continued to run the same scheme that StraightPath had started. The three principals of StraightPath —Michael Castillero, Brian Martinsen, and Francine Lanaia—were also prosecuted by this Office, convicted at a trial before U.S. District Court Judge Jesse M. Furman in November 2025, and sentenced to 11, 10, and 8 years respectively by Judge Furman in May 2026.

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

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In addition to the prison term, GOGLIORMELLA, 49, of Manhasset, New York; LACAJ, 29, of New York, New York; and IBRAHIM, 36, of Queens, New York, were each sentenced to three years of supervised release. They were also ordered to pay restitution of $46 million, as well as forfeiture in the following amounts: Gogliormella: $12,400,000; Lacaj: $7,700,000; and Ibrahim: $8,300,000.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, and the Acting Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Darnell Edwards, announced today the unsealing of an Indictment charging JACOB FRANKEL and CHRISTOPHER DINELLI with securities fraud, wire fraud, and conspiracy to commit securities fraud and wire fraud, and charging FRANKEL with investment adviser fraud and making false reports to the Securities and Exchange Commission.  FRANKEL will be presented today before U.S. Magistrate Judge Valerie Figuerdo in Manhattan federal court, and DINELLI will be presented today in the District of Maryland.  The case has been assigned to U.S. District Judge Jesse M. Furman.

“Prosecuting white collar crime is a top priority of this Office, and we are increasingly focusing on the pre-IPO markets as those markets grow,” said U.S. Attorney Jamie McDonald.  “This alleged fraud left investors, including U.S. Navy veterans, with millions in losses after they were promised access to pre-IPO opportunities and sophisticated trading strategies that did not exist.  As alleged, Jacob Frankel and Christopher Dinelli sold investors a fiction—exclusive investments, extraordinary returns, and professional management—while losing and diverting millions of dollars behind the scenes.  When the truth threatened to catch up with them, they allegedly responded with more lies, including fabricated account statements designed to make devastating losses look like enormous gains.”

“Beyond Alpha Ventures billed itself as a company investing in AI, technology, and cryptocurrency startups; however, as alleged, the founders’ real business was diverting investors’ money for their own personal gain,” said USPIS Acting Inspector in Charge Darnell Edwards.  “The U.S. Postal Inspection Service relentlessly investigates investment fraud to protect investors and the integrity of the U.S. financial system.  If you suspect investment fraud, please report it at USPIS.GOV.”

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

From 2023 through February 2026, FRANKEL and DINELLI perpetrated a scheme in which they fraudulently obtained over $8.7 million from approximately 35 investors in connection with their fund, Beyond Alpha Ventures LLC (“BAV”).  As part of that scheme, FRANKEL and DINELLI repeatedly lied to investors who sought to invest in pre-IPO companies by falsely telling some investors that they were purchasing direct shares in a pre-IPO company and falsely telling other investors that a third-party administrator would create a special purpose vehicle for their investment, hold the investors’ funds, and oversee the investment.  The defendants further oversubscribed one of the offerings and used the additional funds to, among other things, fund BAV’s margin calls and unprofitable options trading.  The defendants further lied to investors by claiming that BAV had previously invested in numerous other major companies before they went public, that BAV currently held interests in several pre-IPO companies, and that FRANKEL and DINELLI were personally investing in the two pre-IPO companies for which they solicited investments. 

FRANKEL and DINELLI further misled investors who sought to invest in BAV’s hedge-fund-style trading fund by falsely telling investors that BAV used a proprietary algorithm for its trading, had a long track record of producing exceptional returns, provided full liquidity, and real-time, verifiable access to the investors’ portfolios.  In fact, BAV had no proprietary algorithms, limited trading history, and suffered catastrophic losses due to FRANKEL’s reckless margin options trading, which included losing approximately $1.9 million on a single trade.  To hide the losses, the defendants created fabricated account statements and screenshots that purported to show investors’ double and triple-digit returns. 

FRANKEL further lied repeatedly on his Form ADV filings by failing to disclose that he had previously been charged and convicted of felony offenses and had previously been disciplined by the Financial Industry Regulatory Authority, including for failing to notify his prior employer of his criminal history.  

*                *                *

FRANKEL, 32, of Kinnelon, New Jersey, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit securities fraud, one count of investment adviser fraud, and one count of making false reports to the SEC, each of which carries a maximum sentence of five years in prison.

DINELLI, 34, of Frederick, Maryland, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison.

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

Mr. McDonald praised the outstanding work of the USPIS.  Mr. McDonald further thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Ryan Finkel, Courtney L. Heavey, and Daniel G. Nessim are in charge of the prosecution.

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, XX of the U.S. Environmental Protection Agency (“EPA”), Drew McCall, Chief of Staff of the U.S. Department of Housing and Urban Development (“HUD”), and Acting Inspector General Brian D. Harrison of the HUD Office of the Inspector General (“HUD OIG”), announced today that the district court has approved a settlement of a civil lawsuit filed by the United States against the ESTATE OF HARRY D. SILVERSTEIN (the “ESTATE” or the “Defendant”). The lawsuit alleges that Harry D. Silverstein (“SILVERSTEIN”) and the ESTATE routinely violated federal laws relating to lead paint safety.  The Stipulation and Order of Settlement (“Settlement”), requires, among other things, that the Defendant pay a $4 million penalty. 

“This Office is committed to protecting the health and safety of New Yorkers,” said U.S. Attorney Jamie McDonald.  “When landlords and renovators violate laws designed to protect children from lead poisoning, we will take action.  Today’s $4 million penalty should put landlords and renovators on notice that violations of important federal safety laws will not be tolerated.” 

EPA QUOTE

“Landlords of homes built before 1978 must warn tenants about known lead," said HUD Chief of Staff Drew McCall.  “The defendant ignored this requirement, risking exposure of children to lead toxins and lead poisoning.”

“HUD OIG has zero tolerance for landlords who place families at risk by failing to provide safe and healthy housing,” said HUD Acting Inspector General Brian D. Harrison. “There is no excuse for violating laws that protect children from preventable exposures to lead hazards. This settlement holds the Silverstein Estate accountable for its serious failures. HUD OIG will continue working alongside the U.S Department of Justice, HUD, and EPA to aggressively pursue those who violate the law and to ensure our nation’s most vulnerable residents are protected.”

Lead is toxic.  Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems.  The most common source of lead poisoning in children is ingesting deteriorated lead paint or lead dust from renovations.  To protect children from this grave threat, the federal Lead Disclosure Rule requires landlords and their agents to inform tenants about the risks of lead exposure in their apartments before entering lease agreements and to disclose known facts and available records about lead paint and lead paint hazards to them so those tenants can take action to protect their children.  A second key regulation, EPA’s Renovation, Repair and Painting Rule (“RRP Rule”), sets mandatory certification, training, and work-practice requirements to minimize the risk of lead exposure during renovation projects. 

As alleged in the United States’ Complaint filed in the district court, SILVERSTEIN and the ESTATE routinely violated both regulations.  SILVERSTEIN owned, managed, and controlled more than 1,000 apartments in fourteen New York City buildings constructed before 1978 until his death in 2016. After his death, the ESTATE owned, managed, and controlled those apartments until it sold them, which in some cases was not until 2020.  For years, SILVERSTEIN and the ESTATE systematically failed to provide their tenants with disclosures about lead-based paint and lead-based paint hazards in their apartments, as required by the Lead Disclosure Rule.  They also failed to protect tenants from toxic lead dust during renovation work.  At least 11 children residing in these buildings suffered lead poisoning during SILVERSTEIN’s ownership of the buildings.

*                *                *

In the Settlement, the ESTATE admits, acknowledges, and accepts responsibility for the following:

• SILVERSTEIN and the ESTATE had an ownership interest in entities that owned and controlled 14 buildings, which contained approximately 1,000 units in New York City, all of which were built prior to 1978.
• During the period SILVERSTEIN had an ownership interest in entities that owned and controlled these buildings, the New York City Department of Housing Preservation and Development issued certain lead-based paint violations in the buildings.
• When SILVERSTEIN had an ownership interest in entities that owned and controlled these buildings, on one or more occasions, the ESTATE could not locate evidence that SILVERSTEIN provided a Lead Warning Statement or EPA-approved lead hazard information pamphlet to tenants entering into a new lease.

October 25 to 31, 2026, is National Lead Poisoning Prevention Week. The United States Attorney’s Office, EPA, HUD, and HUD OIG all encourage parents to learn what they can do to help keep kids safe from lead poisoning. Useful resources are available at https://www.epa.gov/lead/national-lead-poisoning-prevention-week.

Mr. McDonald thanked the EPA and HUD attorneys and staff, and agents at HUD OIG, for their critical partnership on this and other lead paint enforcement matters.

This case is being handled by the Environmental Protection Unit of the Office’s Civil Division.  Assistant U.S. Attorneys Jacob Lillywhite and Jessica F. Rosenbaum are in charge of the case.

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that the United States has filed a federal Fair Housing Act (“FHA”) lawsuit against STAGG GROUP (“STAGG”) relating to its failure to design and construct new apartment buildings so as to be accessible to persons with physical disabilities.  The specific buildings allegedly designed in violation of the FHA’s requirements are 3745 Riverdale Avenue, Bronx, NY 10463 (“Riverdale Tower”), 5959 Broadway, Bronx, NY 10463 (“The Station”), 6327 Broadway, Bronx, NY 10471 (“The Hudson”), 6375 Broadway, Bronx, NY 10471 (“The Stables”), 1680 Pelham Parkway South, Bronx, NY 10461 (“The Equestrian”), and 26 Garden Street, New Rochelle, New York (“West View”).

“Over the past two decades, this Office has brought twenty-one lawsuits against developers, architects, and construction companies to remedy their failure to comply with the Fair Housing Act,” said U.S. Attorney Jamie McDonald.  “Every New Yorker should be able to enjoy their homes, regardless of whether they have disabilities.”

The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities.  To enforce these provisions, the U.S. Attorney’s Office for the Southern District of New York has filed suits and obtained settlements with a wide array of developers and related entities that construct multifamily housing, including the Related Companies, the Durst Organization, Glenwood Management, Silverstein Properties, Atlantic Development Group, and Toll Brothers.

According to the allegations in the Complaint, inaccessible conditions at certain of the specified buildings include:

• The front entry to the building is not accessible to persons who use wheelchairs because there is a non-automatic door requiring excessive force. 
• Mailboxes are not accessible to persons who use wheelchairs because they are located too high. 
• The curb ramp near the entrance of the building is inaccessible to persons who use wheelchairs due to its running slope. 
• The ramp at the entrance to the outdoor entertainment space is not accessible to persons who use wheelchairs because it is excessively steep and missing a handrail.
• In individual units, the entry threshold is not accessible to persons who use wheelchairs because it is too high. 
• In individual units, the threshold to the bathroom is not accessible to persons who use wheelchairs because it is too high. 
• In individual units, the doorway to the bathroom is not accessible to persons who use wheelchairs because it is too narrow. 
• In individual units, there is insufficient clear floor space outside the swing of the door in the studio bathroom.
• In individual units, the balcony door is inaccessible to persons who use wheelchairs because the doorway is not wide enough. 
• In individual units, the threshold to the balcony is not accessible to persons who use wheelchairs because it is too high and unbeveled. 

Due to the inaccessible conditions at the buildings that STAGG designed and constructed, STAGG engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and denied such rights to people with disabilities.  The Complaint seeks a court order directing STAGG to retrofit individual apartments as well as the public and common use areas of the buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate individuals who suffered discrimination due to the inaccessible conditions. 

People who believe they may have experienced discrimination due to the inaccessible conditions at the above-named buildings designed and constructed by STAGG may contact the Civil Rights Complaint account at [email protected], use the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to: 

U.S. Attorney’s Office, Southern District of New York 

86 Chambers Street, 3rd Floor 

New York, New York 10007 

Attention: Chief, Civil Rights Unit 

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Mr. McDonald thanked the Fair Housing Testing Program of the Civil Rights Division of the Department of Justice for its assistance with the investigation.

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Special Agent in Charge of the Northeast Area Field Office of the United States Postal Service Office of Inspector General (“USPS-OIG”), Matthew M. Modafferi, announced today that PIAN PIAN WONG-TAM, a former United States Postal Service (“USPS”) Mail Processing Clerk in White Plains, New York, and WILLIAM WONG, a former USPS Mail Clerk in Millwood, New York, were presented today before Chief U.S. Magistrate Judge Judith C. McCarthy on charges that they engaged in a scheme and conspiracy in which WONG-TAM removed mail entrusted to her by USPS, stole gift cards and other items out of that mail, and then, together with WONG, used those gift cards and other items for their own personal gain.

“The charges against the defendants reflect this Office’s and our law enforcement partners’ continued commitment to ensuring the integrity of the U.S. postal system,” said U.S. Attorney Jamie McDonald.  “As alleged, Pian Pian Wong-Tam stole more than 200 gift cards out of mail entrusted to her for processing, and then, together with William Wong, used those gift cards for their own benefit, abusing their positions of trust and victimizing hundreds of people in the process.  The complaint against Wong-Tam and Wong should send a clear message that stealing from the mail entrusted to USPS for delivery is a serious federal offense that will not be tolerated.”

“Misconduct by postal employees undermines the trust placed in the Postal Service and will not be tolerated,” said USPS-OIG Special Agent in Charge Matthew M. Modafferi.  “The United States Postal Service Office of Inspector General remains committed to protecting the integrity of the Postal Service and ensuring accountability.  We appreciate the U.S. Attorney’s Office for its partnership in this investigation.”

According to the Complaint:

Until July 24, 2026, WONG-TAM was working as a Mail Processing Clerk at the USPS White Plains Processing & Distribution Center (“P&DC”) in White Plains, New York, while WONG was working as a Mail Clerk at a post office in Millwood, New York.

After receiving multiple customer complaints about mail that had been processed through the P&DC being delivered damaged, with expected gift cards missing, USPS-OIG’s investigation revealed that, from April 2025 to July 24, 2026, WONG-TAM took advantage of her position of trust at the P&DC to steal, among other things, gift cards from the mail she was responsible for processing.  WONG-TAM then shared the gift cards she stole with WONG and, together, they used those gift cards at a variety of businesses in multiple states for their own personal benefit.  All told, WONG-TAM and WONG’s scheme resulted in the theft of no less than 200 gift cards, ranging in value from $25 to $500 each.

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WONG-TAM, 59, of New York, New York, and WONG, 57, of New York, New York, are each charged with one count of conspiracy to steal and unlawfully possess mail, which carries a maximum sentence of five years in prison; one count of unlawful possession of mail, which carries a maximum sentence of five years in prison; one count of conspiracy to commit access device fraud, which carries a maximum sentence of five years in prison; and two counts of access device fraud, which each carry a maximum sentence of 10 years in prison.  WONG-TAM is also charged with one count of theft of mail by a Postal Service officer or employee, which carries a maximum sentence of five years in prison.

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

Mr. McDonald praised the outstanding investigative work of the Northeast Area Field Office of the USPS-OIG.

This case is being handled by the Office’s White Plains Unit.  Assistant U.S. Attorney Timothy Deal 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.

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 therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Bryan DiGirolamo, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that EDSON BROWN was sentenced to 135 months in prison by U.S. District Judge John P. Cronan for trafficking more than 100 guns from North Carolina and South Carolina to New York City. 

“Our Office will do everything in our power to keep New Yorkers safe,” said U.S. Attorney Jamie McDonald. “Gun traffickers like Edson Brown fuel violent crime in New York City by putting guns into the hands of violent criminals. Today’s sentence protects New Yorkers and puts gun traffickers on notice that we and our law enforcement partners will aggressively pursue those who profit from gun crime and hold them accountable for the harm they cause.”

“Firearms trafficking puts guns into the hands of individuals who can use them to fuel violence in our communities,” said ATF Special Agent in Charge Bryan DiGirolamo. “Trafficking more than 100 firearms into New York City is not simply moving illegal guns—it is creating opportunities for those firearms to be used in violent crime. This 135-month sentence reflects the seriousness of that conduct and the importance of identifying and disrupting firearms trafficking networks. I commend the dedicated work of the ATF/NYPD Joint Firearms Task Force and the U.S. Attorney’s Office for the Southern District of New York. This is impactful work at the heart of ATF’s mission: stemming the illegal flow of firearms and reducing violent gun crime.”

“Edson Brown crossed state lines at least a dozen times to traffic more than 100 guns onto New York City streets,” said NYPD Commissioner Jessica S. Tisch. “He then removed their serial numbers and sold the guns , knowing exactly what they would be used for. This is yet another example of the dangerous work that NYPD investigators do to make our communities safer—putting their lives at risk to shut down this operation. Thanks to our partners at the ATF and the U.S. Attorney’s Office for the Southern District for their work on this case.” 

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

Beginning in 2023, and continuing until he was arrested in February 2025, BROWN trafficked at least 115 handguns from North Carolina and South Carolina to New York City.  BROWN made more than a dozen trips to North Carolina and South Carolina to buy guns and bring them back to New York. To purchase many of the guns he trafficked, BROWN used straw purchasers, i.e., individuals who could ostensibly buy guns legally in North Carolina and South Carolina. For others, BROWN used the identification of a straw purchaser in South Carolina to impersonate the straw purchaser and buy the guns himself. BROWN was arrested in February 2025 in South Carolina, after purchasing three additional guns to traffic back to New York.

Once the guns were in New York, BROWN removed their serial numbers using power tools and then sold the guns to others, including buyers whom he knew would possess and use the guns illegally. Already, the NYPD has recovered nine of the guns that BROWN trafficked, including one that was used in an armed robbery, another that was used to threaten a victim, and seven more that were illegally possessed in public.

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In addition to the prison term, BROWN, 37, of the Bronx, New York, was sentenced to three years of supervised release.

Mr. McDonald thanked the ATF and the NYPD for their excellent work in this case.

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

“Moments ago, a jury returned a unanimous verdict finding John Livigni, a leader of the Washington Square Park drug ring, guilty of all narcotics charges, including three overdoses—two of which resulted in death.  One of the victims was just 18 years old.  Our Office’s commitment to keeping New Yorkers and their families safe includes ensuring they can use public spaces without the interference of dangerous drug dealers.  For far too long, New Yorkers were forced to live with the dangerous drug dealers who had turned Washington Square Park, in the heart of Greenwich Village, into an open-air drug market.  Not anymore: as a result of our Office’s dedication and the continued commitment of our partners at the NYPD and DEA, New Yorkers are able to enjoy our iconic Washington Square Park in peace—and safely.”

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that ANTHONY NORTHOVER was sentenced to 10 years in prison by U.S. District Judge Victor Marrero for illegally possessing a firearm and ammunition in connection with a June 4, 2024, shooting during which NORTHOVER, who previously had been convicted of several felonies, fired multiple shots on a residential street in the Bronx, striking a victim and causing him life-threatening injuries. 

“Today’s lengthy sentence protects New Yorkers from gun violence and sends an important message, especially to recidivist violent criminals—those who bring illegal guns and violence into our communities will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Jamie McDonald. “In February 2024, Northover was released from federal custody after serving a lengthy sentence for racketeering, narcotics, and firearm-related offenses. But on June 4, 2024, less than four months later, while on supervised release, Northover fired a gun multiple times on a residential street in the Bronx, striking and severely injuring a victim, before fleeing.”

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

On June 4, 2024, at approximately 11:25 p.m., NORTHOVER shot a male individual (the “Victim”) several times in the vicinity of Van Nest Avenue and between Melville Street and Van Buren Street in the Bronx. After the Victim was hit and fell to the ground, NORTHOVER continued shooting at other individuals who were in the vicinity and running away from the gunfire. NORTHOVER fled the scene of the shooting by moped.

Shortly after the shooting, several law enforcement officers—who, at the time, were unaware that NORTHOVER had just committed a shooting—saw NORTHOVER, who was driving a moped, commit a traffic violation in the vicinity of Prospect Avenue and Freeman Street in the Bronx. While driving, the defendant discarded a firearm on a pile of trash on the sidewalk. Law enforcement officers stopped NORTHOVER and, following a brief canvass of the sidewalk on which the defendant drove, recovered the firearm where the defendant had dropped it and arrested NORTHOVER. 

*                *                *

In addition to the prison term, NORTHOVER, 40, of the Bronx, New York, was sentenced to three years of supervised release.

Mr. McDonald praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department, and thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance with the investigation.

This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Rebecca T. Dell and Dana R. McCann are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that WILLIAM CARLTON has been charged and pled guilty to securities fraud for his role in a scheme to defraud his investment advisory clients by “cherry picking,” systematically allocating profitable trades to himself and allocating unprofitable trades to his clients. Through this conduct, CARLTON gained millions of dollars at the expense of his clients. CARLTON pled guilty today before Magistrate Judge Ona T. Wang and is scheduled to be sentenced by U.S. District Judge Richard M. Berman on January 27, 2027.

“Investment advisers are required to act with integrity and put their clients’ interests ahead of their own,” said U.S. Attorney Jamie McDonald. “William Carlton instead admitted to systematically steering profitable trades to himself while leaving losing trades for his clients. Today’s guilty plea holds him accountable for abusing that trust for personal gain.”

“William Carlton initially denied wrongdoing but later pled guilty to cherry‑picking profitable trades for himself and dumping poor‑performing trades on his clients,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Those clients trusted him to act in their best interest, and the FBI worked diligently to uncover his scheme and prevent further harm. The FBI remains committed to exposing financial-sector misconduct and upholding trust and integrity in the markets.”

According to the Information:

CARLTON served as an investment adviser to more than 50 clients every year. As an adviser, CARLTON managed his clients’ trading accounts and had the authority to buy and sell securities for those managed accounts. CARLTON owed his clients a fiduciary duty, including the duty to act in their best interests and to refrain from disadvantaging his clients in favor of his own personal trading.

From at least in or about January 2015, up to and including at least in or about August 2022, CARLTON engaged in cherry-picking, systematically assigning profitable trades to himself and unprofitable trades to his clients. CARLTON would purchase securities in his personal trading account and observe price movements during the trading day. When the price of a stock increased over the course of the day, CARLTON typically sold the stock the same day and kept the profits for himself. By contrast, when the price of a stock decreased over the course of the day, CARLTON typically assigned the stock to his clients’ accounts. As a result of CARLTON’s scheme, approximately 70% of the trades CARLTON assigned to his own accounts experienced same-day gains. At the same time, only approximately 16% of the trades CARLTON assigned to his clients’ accounts experienced same-day gains. Conversely, as a result of CARLTON’s scheme, only approximately 30% of the trades CARLTON assigned to his own accounts experienced same-day losses. At the same time, approximately 84% of the trades CARLTON assigned to his clients’ accounts experienced same-day losses. Through his cherry-picking scheme, CARLTON realized ill-gotten gains of approximately $6 million, while imposing losses on many of his clients.

When confronted by the United States Securities and Exchange Commission about his conduct, CARLTON falsely denied that he had ever made trades in his personal account and later reassigned them to his clients’ accounts, claiming instead that he placed all client trades individually and directly in each client’s account. That statement was false and misleading.

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CARLTON, 66, of Seattle, Washington, pled guilty to securities fraud, which carries a maximum sentence of 20 years in prison. CARLTON will also be subject to forfeiture and restitution at the time of sentencing.

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. McDonald thanked the FBI for its outstanding work. Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Marguerite B. Colson, Peter Davis, and Daniel G. Nessim are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of Complaints charging HEFU CHAI and HUAISONG XIANG, a/k/a “Jerry Xiang,” with commodities fraud and wire fraud arising from a scheme to misappropriate confidential business information from their employer, Robinhood Markets, Inc. (“Robinhood”), and use that information to trade perpetual futures on Hyperliquid, a decentralized derivatives exchange. CHAI will be presented today in the Northern District of California. XIANG will be presented today before U.S. Magistrate Judge Ona T. Wang.

“Misappropriating confidential information to trade in the derivatives markets for personal benefit is illegal,” said U.S. Attorney Jamie McDonald. “That is exactly what we allege Hefu Chai and Huaisong Xiang have done. Today’s charges make clear that corporate insiders cannot evade the securities and commodities laws by trading based on misappropriated information in derivatives like perpetual futures, tokenized securities, or other similar financial instruments.”

“Hefu Chai and Huaisong Xiang are charged with commodities fraud and wire fraud for allegedly exploiting confidential business information taken from their employer to trade perpetual futures,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “These charges make clear the FBI with its partners will act when individuals access sensitive business information for their own benefit.” 

According to the Complaints unsealed today in Manhattan federal court:(1)

CHAI and XIANG were employed as engineers at Robinhood. In connection with their roles at Robinhood, CHAI and XIANG had access to nonpublic information regarding whether and when Robinhood would support additional cryptocurrencies for trading on Robinhood Crypto, a Robinhood subsidiary that operates a digital asset trading platform.

Hyperliquid markets itself as a decentralized exchange for trading a wide range of derivative products, including cryptocurrencies and derivatives tied to other underlying assets. Investors on Hyperliquid can purchase, among other things, perpetual futures (“perpetuals”). Perpetuals are derivative products that allow investors to take positions on the price movements of an underlying asset, whether a cryptocurrency or another asset, without owning the asset itself. Unlike traditional futures contracts, Hyperliquid’s perpetuals do not expire and can be maintained indefinitely. To keep a position open, however, traders must make or receive periodic funding payments, which align the perpetual’s price with the spot price of the underlying asset. A trader can settle the perpetual at any time and realize their gain or loss. 

Between 2025 and 2026, CHAI and XIANG repeatedly bought perpetual futures linked to cryptocurrency tokens on Hyperliquid in advance of Robinhood’s public announcements that the underlying cryptocurrency tokens would be listed on Robinhood Crypto. On each occasion, CHAI and XIANG possessed material nonpublic information that Robinhood would list the cryptocurrency token on Robinhood Crypto, and CHAI and XIANG traded on that information in breach of the duties that CHAI and XIANG owed to Robinhood to maintain the confidentiality of this information. CHAI and XIANG each profited more than $50,000 from their illicit trading.

*                *                *

CHAI, 36, of Menlo Park, California, and XIANG, 30, of Jersey City, New Jersey, are charged with one count of violating the Commodity Exchange Act, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. McDonald praised the outstanding work of the FBI. Mr. McDonald further thanked Robinhood for its cooperation with the investigation.

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

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

1. ^

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

The Department of Justice announced today the unsealing of charges against five individuals working for the intelligence services of the Russian Federation to conduct attacks and murders around the world, including in the United States. As detailed in the unsealed indictment, the network is alleged to have, among other things, paid and attempted to pay individuals within the United States and elsewhere to conduct pre-operational surveillance and carry out targeted killings, and commissioned associates to commit and attempt to commit acts of terrorism against civilian and military infrastructure in European countries that are aligned, or perceived to be aligned, with Ukraine. The defendants remain at large.

“It is our job to stop America’s adversaries from unleashing violence and terror on American soil,” said Attorney General Todd Blanche. “And that’s precisely what we are doing thanks to the work of the FBI and our Justice Department prosecutors.”

“The charges announced reveal an alleged plot by the Russian intelligence services to murder a dissident on U.S. soil for daring to speak out against the Russian government,” said FBI Director Kash Patel. “As alleged in the indictment, this plot exposes the lengths to which our adversaries will go to silence its critics and illustrates the grave threat transnational repression poses to the lives and freedoms of all who challenge authoritarian regimes. The FBI is committed to defending the free speech of everyone within our homeland and will not tolerate any attempts by foreign governments to violate our laws and threaten our freedoms.”

“These defendants allegedly operated as part of a global assassination network that reached into the United States, attempting to recruit U.S. citizens and foreigners to carry out killings at the behest of the Kremlin,” said Assistant Attorney General for National Security John A. Eisenberg. “Actions like these represent a gross violation of our sovereignty and a threat to our national security. We will stamp out any foreign intelligence services’ attempt to operate freely in our great Nation, and we will not rest until they and their enablers suffer the most severe consequences that federal law can levy.”

“We will not tolerate efforts to finance terrorist activities and engage in acts of violence — particularly when these activities are commissioned by state actors and touch American soil,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “As alleged, the defendants, working for the intelligence services of Russia, conspired to cause destruction and mayhem around the world, including right here in the United States. The Russian-led network charged in today’s indictment is brazen, aggressive, and far-reaching, and the charges levied against the defendants should send a clear message: no matter where you are, and no matter who you work for, we will investigate and prosecute you for your crimes. I thank our partners at the FBI who work tirelessly to protect our communities and am grateful that our law enforcement partners neutralized this deadly and outrageous threat.”  

“As alleged in this indictment, members of the Russian Intelligence Services and their affiliates conspired to intimidate, threaten, or murder people on U.S. soil and around the world,” said Assistant Director in Charge of the FBI New York Field Office James C. Barnacle Jr. “The FBI disrupted this operation through relentless work and rock-solid partnership. The FBI is committed to confronting transnational repression wherever it occurs and protecting those targeted for exercising their fundamental rights. We thank the multiple FBI Field Offices and the U.S. Attorney’s Office whose coordination and commitment made this disruption possible.” 

“The charges announced today represent the culmination of extraordinary work by multiple FBI field offices, components, and partner agencies that collectively disrupted Russia’s attempts to conduct violent acts in our nation’s capital and throughout the United States,” said Assistant Director in Charge of the FBI Washington Field Office Darren B. Cox. “When this threat was identified, the Washington Field Office and our partners moved quickly to disrupt the plot and hold the Russian government accountable for its actions. Our message is clear: any foreign intelligence service that attempts to direct violence inside the United States will face an unrelenting and coordinated response from the FBI and our partners to protect the homeland.”

As reflected in the indictment unsealed today:

Since at least 2024, a network of individuals working for the intelligence services of the Russian Federation (the “RIS Network”) has conspired to conduct and conducted attacks and murders around the world, including within the United States. The RIS Network is one arm of the Russian Federation’s apparatus to carry out external attacks, including murder, and has focused on Russian dissidents and defectors and, most recently, on nations perceived as allies of Ukraine. Most recently, members of the RIS Network have attempted to recruit multiple individuals within the United States to carry out pre-operational surveillance and murder within this country.

Three of the defendants are high-ranking members of the RIS Network. Those three defendants are:  Yuri Khrameev, also known as “Colonel Yuri,” 63, of Russia, a former colonel in the Russian intelligence services who has participated in the recruitment of multiple individuals to commit murder against perceived Russian dissidents; Kirill Khrameev, 27, of Russia, an officer in the Federal Security Service of Russia (FSB) and Yuri Khrameev’s son; and Oemis Romagoza Durruthy, 35, a Cuban national who is an influential member of the Cuban diaspora living in Russia who has coordinated attacks for the RIS Network. Two additional members of the RIS Network who are charged in the indictment are Yaidel Delgado Suarez, also known as “Viking,” 35, of Cuba, who is a prolific recruiter for the RIS Network and who has recruited or attempted to recruit multiple individuals in the United States; and Angel Eduardo Castro, 22, of Venezuela, who participated with Suarez in the recruitment of U.S.-based individuals to surveil and attempt to murder a prominent U.S.-based Russian dissident (Victim-1).

The RIS Network has allegedly carried out or conspired to carry out multiple schemes around the world. Most recently, this summer, the RIS Network recruited an individual based in the United States (U.S. Resident-1) to surveil and murder a prominent Russian dissident they believed to be residing in the United States. Among other things, Suarez sent U.S. Resident-1 two locations associated with Victim-1 to surveil; provided U.S. Resident-1 with explicit instructions on how to conduct surveillance; and promised U.S. Resident-1 between $1,000 and $1,500 dollars to carry out the pre-operational surveillance. In turn, U.S. Resident-1 conducted the requested surveillance and passed back to Suarez multiple photographs and videos of locations associated with Victim-1. Suarez and Castro further offered U.S. Resident-1 $40,000 to “eliminate” or “disappear” Victim-1 and, when U.S. Resident-1told them that he did not want to carry out the murder by his own hand, asked U.S. Resident-1 if he knew “someone [who] can do the work.”  Suarez also told U.S. Resident-1 that he had “people in Mexico” who could otherwise carry out the murder, but they were delayed in doing so. In addition, Suarez attempted to recruit multiple other individuals within the United States to conduct pre-operational surveillance and murder Victim-1 and other potential targets within the United States and offered them substantial sums of money to carry out the targeting of the U.S. based victims.

The alleged attempted murder of Victim-1 is the latest in the RIS Network’s efforts. Last year, as alleged in the indictment, the RIS Network solicited a U.S. Citizen (U.S. Citizen-1) to surveil and murder an individual located in Lithuania (Victim-2) who the RIS Network described as a “bad guy” who was “telling lies about Russia.”  Kirill Khrameev first recruited U.S. Citizen-1 to travel to Victim-2’s purported address and take pictures. After U.S. Citizen-1 accepted and completed the assignment in exchange for a promise of $200, Kirill Khrameev introduced U.S. Citizen-1 to someone he described as his “boss” and a “colonel,” later identified as Yuri Khrameev. Yuri Khrameev then offered U.S. Citizen-1 approximately $25,000 to “kill him” — that is, Victim-2. Yuri Khrameev further told U.S. Citizen-1 that they wanted Victim-2 dead because he was “spreading dirt about my country” and “distorting history.”  Yuri Khrameev then sent U.S. Citizen-1 a photograph of Victim-2 and described that he could be murdered by “throwing a bottle of gasoline” or “sticking a knife” in him. After U.S. Citizen-1 declined to carry out the murder, Yuri Khrameev offered to give him a “simpler job” which could include “set[ting] fire to a warehouse of property or food” or “throw[ing] a bottle of gasoline at an electrical substation.”  Yuri Khrameev made clear to U.S. Citizen-1 that the purpose was to target “all the countries that are helping Ukraine” and that he was offering “serious money for serious work.”  Finally, Yuri Khrameev confirmed that he was a “colonel of Russian intelligence agencies.”

The RIS Network has also allegedly recruited others to carry out acts of terrorism overseas. Oemis Romagoza Durruthy coordinated travel and logistics for the network. In or about June 2024, Durruthy coordinated an attack in Prague, Czechia, including by sending another participant potential attack sites and facilitating that participant’s travel. In or about September 2024, Durruthy coordinated another attack in Lithuania in which he booked travel reservations for another individual involved in the attack and had frequent and ongoing communications with an individual involved in the attack. Durruthy also communicated with Yuri Khrameev in or about November 2025, during which Durruthy obtained media of one of Victim-1’s dwellings, which was ultimately surveilled by U.S. Resident-1 this year. 

Yuri Khrameev, Kirill Khrameev, Oemis Romagoza Durruthy, Yaidel Delgado Suarez, and Angel Eduardo Castro are all charged with participating in a conspiracy to finance terrorism (Count One), which carries a maximum penalty of 20 years in prison. Yuri Khrameev, Suarez, and Castro are also charged with participating in a conspiracy to commit murder for hire (Count Two), which carries a maximum penalty of 10 years in prison.

The Counterintelligence Division of the FBI New York Field Office investigated the case, with the significant assistance of the Washington Field Office and Homeland Security Investigations.

Assistant U.S. Attorneys Jeffrey Coyle, Kaylan E. Lasky, Adam Margulies, and Jason A. Richman for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section of the Justice Department’s National Security Division and Trial Attorney Yifei Zheng of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Attorney General for the United States, Todd Blanche, Assistant Attorney General for National Security, John A. Eisenberg, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., and Assistant Director in Charge of the Washington Field Office of the FBI, Darren B. Cox, announced today the unsealing of charges against five individuals working for the intelligence services of the Russian Federation to conduct attacks and murders around the world, including in the United States.  As detailed in the unsealed indictment, the network is alleged to have, among other things, paid and attempted to pay individuals within the United States and elsewhere to conduct pre-operational surveillance and carry out targeted killings, and commissioned associates to commit and attempted to commit acts of terrorism against civilian and military infrastructure in European countries that are aligned, or perceived to be aligned, with Ukraine.  The defendants remain at large.

“We will not tolerate efforts to finance terrorist activities and engage in acts of violence—particularly when these activities are commissioned by state actors and touch American soil,” said U.S. Attorney Jamie McDonald.  “As alleged, the defendants, working for the intelligence services of Russia, conspired to cause destruction and mayhem around the world, including right here in the United States.  The Russian-led network charged in today’s indictment is brazen, aggressive, and far-reaching, and the charges levied against the defendants should send a clear message: no matter where you are, and no matter who you work for, we will investigate and prosecute you for your crimes.  I thank our partners at the FBI who work tirelessly to protect our communities and am grateful that our law enforcement partners neutralized this deadly and outrageous threat.”  

“It is our job to stop America’s adversaries from unleashing violence and terror on American soil,” said Attorney General Todd Blanche.  “And that’s precisely what we are doing thanks to the work of the FBI and our Justice Department prosecutors.”

“These defendants allegedly operated as part of a global assassination network that reached into the United States, attempting to recruit U.S. citizens and foreigners to carry out killings at the behest of the Kremlin,” said Assistant Attorney General for National Security John A. Eisenberg.  “Actions like these represent a gross violation of our sovereignty and a threat to our national security.  We will stamp out any foreign intelligence services’ attempt to operate freely in our great Nation, and we will not rest until they and their enablers suffer the most severe consequences that federal law can levy.”

“The charges announced reveal an alleged plot by the Russian intelligence services to murder a dissident on U.S. soil for daring to speak out against the Russian government,” said FBI Director Kash Patel.  "As alleged in the indictment, this plot exposes the lengths to which our adversaries will go to silence its critics and illustrates the grave threat transnational repression poses to the lives and freedoms of all who challenge authoritarian regimes.  The FBI is committed to defending the free speech of everyone within our homeland and will not tolerate any attempts by foreign governments to violate our laws and threaten our freedoms.”

“As alleged in this indictment, members of the Russian Intelligence Services and their affiliates conspired to intimidate, threaten, or murder people on U.S. soil and around the world,” said Assistant Director in Charge of the FBI New York Field Office James C. Barnacle, Jr.  “The FBI disrupted this operation through relentless work and rock-solid partnership.  The FBI is committed to confronting transnational repression wherever it occurs and protecting those targeted for exercising their fundamental rights.  We thank the multiple FBI Field Offices and the United States Attorney's Office whose coordination and commitment made this disruption possible.” 

“The charges announced today represent the culmination of extraordinary work by multiple FBI field offices, components, and partner agencies that collectively disrupted Russia’s attempts to conduct violent acts in our nation’s capital and throughout the United States,” said Assistant Director in Charge of the FBI Washington Field Office Darren B. Cox.  “When this threat was identified, the Washington Field Office and our partners moved quickly to disrupt the plot and hold the Russian government accountable for its actions.  Our message is clear: any foreign intelligence service that attempts to direct violence inside the United States will face an unrelenting and coordinated response from the FBI and our partners to protect the homeland.”

As reflected in the Indictment unsealed today:(1)

Since at least in or about 2024, a network of individuals working for the intelligence services of the Russian Federation (the “RIS Network”) has conspired to conduct and conducted attacks and murder around the world, including within the United States.  The RIS Network is one arm of the Russian Federation’s apparatus to carry out external attacks, including murder, around the world, which has focused on Russian dissidents and defectors and, most recently, on nations perceived as allies of Ukraine.  Most recently, members of the RIS Network have attempted to recruit multiple individuals within the United States to carry out pre-operational surveillance and murder within this country.

Three of the defendants are high-ranking members of the RIS Network. Those three defendants are:  YURI KHRAMEEV, a/k/a “Colonel Yuri,” a former colonel in the Russian intelligence services who has participated in the recruitment of multiple individuals to commit murder against perceived Russian dissidents; KIRILL KHRAMEEV, an officer in the Federal Security Service of Russia (“FSB”) and YURI KHRAMEEV’s son; and OEMIS ROMAGOZA DURRUTHY, a Cuban national who is an influential member of the Cuban diaspora living in Russia who has coordinated attacks for the RIS Network. Two additional members of the RIS Network who are charged in the Indictment are YAIDEL DELGADO SUAREZ, a/k/a “Viking,” who is a prolific recruiter for the RIS Network and who has recruited or attempted to recruit multiple individuals in the United States; and ANGEL EDUARDO CASTRO, who participated with SUAREZ in the recruitment of U.S.-based individuals to surveil and attempt to murder a prominent U.S.-based Russian dissident (“Victim-1”).

The RIS Network has allegedly carried out or conspired to carry out multiple schemes around the world. Most recently, this summer, the RIS Network recruited an individual based in the United States (“U.S. Resident-1”) to surveil and murder a prominent Russian dissident they believed to be residing in the United States.  Among other things, SUAREZ sent U.S. Resident-1 two locations associated with Victim-1 to surveil; provided U.S. Resident-1 with explicit instructions on how to conduct surveillance; and promised U.S. Resident-1 between $1,000 and $1,500 to carry out the pre-operational surveillance.  In turn, U.S. Resident-1 conducted the requested surveillance and passed back to SUAREZ multiple photographs and videos of locations associated with Victim-1.  SUAREZ and CASTRO further offered U.S. Resident-1 $40,000 to “eliminate” or “disappear” Victim-1 and, when U.S. Resident-1 told them that he did not want to carry out the murder by his own hand, asked U.S. Resident-1 if he knew “someone [who] can do the work.”  SUAREZ also told U.S. Resident-1 that he had “people in Mexico” who could otherwise carry out the murder, but they were delayed in doing so.  In addition, SUAREZ attempted to recruit multiple other individuals within the United States to conduct pre-operational surveillance and murder Victim-1 and other potential targets within the United States, and offered them substantial sums of money to carry out the targeting of the U.S.-based victims.

The alleged attempted murder of Victim-1 is the latest in the RIS Network’s efforts.  Last year, as alleged in the Indictment, the RIS Network solicited a U.S. Citizen (“U.S. Citizen-1”) to surveil and murder an individual located in Lithuania (“Victim-2”) who the RIS Network described as a “bad guy” who was “telling lies about Russia.”  KIRILL KHRAMEEV first recruited U.S. Citizen-1 to travel to Victim-2’s purported address and take pictures.  After U.S. Citizen-1 accepted and completed the assignment in exchange for a promise of $200, KIRILL KHRAMEEV introduced U.S. Citizen-1 to someone he described as his “boss” and a “colonel,” later identified as YURI KHRAMEEV.  YURI KHRAMEEV then offered U.S. Citizen-1 approximately $25,000 to kill Victim-2.  YURI KHRAMEEV further told U.S. Citizen-1 that they wanted Victim-2 dead because he was “spreading dirt about my country” and “distorting history.”  YURI KHRAMEEV then sent U.S. Citizen-1 a photograph of Victim-2 and described that he could be murdered by “throwing a bottle of gasoline” or “sticking a knife” in him.  After U.S. Citizen-1 declined to carry out the murder, YURI KHRAMEEV offered instead to give him a “simpler job” which could include “set[ting] fire to a warehouse of property or food” or “throw[ing] a bottle of gasoline at an electrical substation.”  YURI KHRAMEEV made clear to U.S. Citizen-1 that the purpose was to target “all the countries that are helping Ukraine” and that he was offering “serious money for serious work.”  Finally, YURI KHRAMEEV confirmed that he was a “colonel of Russian intelligence agencies.”

Overseas, the RIS Network has also allegedly recruited others to carry out acts of terrorism. One key member of the RIS Network who is involved in this overseas effort is OEMIS ROMAGOZA DURRUTHY, who coordinated travel and logistics for the RIS Network.  In or about June 2024, DURRUTHY coordinated an attack in Prague, Czechia, including by sending to another participant potential attack sites and facilitating that participant’s travel.  In or about September 2024, DURRUTHY coordinated another attack in Lithuania, in which he, again, booked travel reservations for another individual involved in the attack, and had frequent and ongoing communications with an individual involved in the attack.  DURRUTHY also communicated with YURI KHRAMEEV in or about November 2025, during which time period DURRUTHY obtained media of one of Victim-1’s dwellings, which was ultimately surveilled by U.S. Resident-1 this year. 

*                *                *

YURI KHRAMEEV, a/k/a “Colonel Yuri,” 63, of Russia, KIRILL KHRAMEEV, 27, of Russia, OEMIS ROMAGOZA DURRUTHY, 35, of Cuba, YAIDEL DELGADO SUAREZ, a/k/a “Viking,” 35, of Cuba, and ANGEL EDUARDO CASTRO, 22, of Venezuela, are all charged with participating in a conspiracy to finance terrorism (Count One), which carries a maximum penalty of 20 years in prison.  YURI KHRAMEEV, SUAREZ, and CASTRO are also charged with participating in a conspiracy to commit murder for hire (Count Two), which carries a maximum penalty of 10 years in prison.

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

Mr. McDonald praised the outstanding efforts of the Counterintelligence Division of the FBI’s New York Field Office.  Mr. McDonald also thanked the FBI’s Washington Field Office for their significant assistance, as well as Homeland Security Investigations and the Department of Justice’s National Security Division. 

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle, Kaylan E. Lasky, Adam Margulies, and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section and Trial Attorney Yifei Zheng of the Counterespionage Section.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that JILDO ARMANDO MARIN was sentenced to 25 years in prison by U.S. District Judge John G. Koeltl for his sexual exploitation of two minor victims and possession of child sexual abuse material.  MARIN previously pled guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography.

“Today’s sentence reflects the Office’s unwavering commitment to protect children and prosecute those who prey on them,” said U.S. Attorney Jamie McDonald.  “Our Office has held Jildo Armando Marin accountable for the profound and lasting harm he inflicted on these children.  For nearly a decade, Marin sexually abused two minor victims, who were his own family members.  He abused these children, and, when confronted with possible exposure, threatened his victims and forced them to maintain their silence.  He compounded that abuse by creating and possessing a horrific collection of images and videos depicting the abuse of one of his victims, as well as showing the exploitation of other children.  Marin will now deservedly spend lengthy time in prison.”​     

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

Beginning when Minor Victim-1, a female member of the defendant’s family, was approximately seven or eight years old and continuing until approximately January 2025, when Minor Victim-1 was approximately 13, MARIN sexually assaulted Minor Victim-1 on multiple occasions in the Bronx, New York, and during trips to Honduras.  MARIN would lock the door, remove Minor Victim-1’s clothing, and photograph and record the abuse using his cellphone.  MARIN touched Minor Victim-1’s vagina and buttocks with his hands, digitally penetrated her, and anally penetrated her with his penis on multiple occasions, including while she slept.  In December 2024, MARIN used his cellphone to photograph Minor Victim-1’s genitals, and he subsequently transported that cellphone, and the images on it, out of the state of New York when he traveled abroad.

MARIN also repeatedly sexually assaulted a second minor victim, Minor Victim-2, a male member of the defendant’s family, over the course of approximately 10 years, beginning when Minor Victim-2 was approximately eight years old and continuing until Minor Victim-2 was approximately 18.  On at least one occasion, MARIN checked whether Minor Victim-2 was asleep, carried him to another room, and anally penetrated him with his penis.  When Minor Victim-2 attempted to disclose the abuse, MARIN told him that Child Protective Services could remove him from his home and that his mother could get in trouble.          

On June 13, 2025, MARIN was stopped for a customs inspection at John F. Kennedy International Airport upon his return from an international trip.  A search of his cellphone revealed sexually explicit images of Minor Victim-1.  A subsequent forensic examination of MARIN’s cellphone revealed at least 85 sexually explicit images and videos of minors, including images depicting prepubescent children as young as approximately five years old subjected to sadistic sexual acts.

*               *               *

In addition to the prison term, MARIN, 34, of the Bronx, New York, was sentenced to a 10-year term of supervised release.

Mr. McDonald praised the outstanding work of Homeland Security Investigations.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Joe Zabel is in charge of the prosecution.

Deputy United States Attorney for the Southern District of New York, Sean S. Buckley, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the filing of a civil forfeiture Complaint against approximately $61 million in cryptocurrency as the proceeds of black-market sales of sanctioned Iranian crude oil and petroleum products, intended to finance the Government of Iran and Iranian military components, including Iran’s Islamic Revolutionary Guard Corps (“IRGC”), a designated terrorist organization. 

“Today’s action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on to threaten the lives and safety of the citizens of the United States and elsewhere,” said Deputy U.S. Attorney Sean S. Buckley. “The Government of Iran relies on black-market sales of sanctioned crude oil to fund its military and foster terrorism in the Middle East and around the world, along with other malign efforts to develop a nuclear program and ballistic missiles capable of delivering nuclear payloads. As alleged in the complaint filed today, the Government of Iran used a network of cryptocurrency actors in China and elsewhere to launder more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the terror-designated IRGC. Today we are seizing and seeking to forfeit more than $61 million of the Government of Iran’s money, which otherwise would have promoted hostile military action and terrorist attacks against the U.S. and our allies.”

“Today’s complaint demonstrates the FBI’s ability to follow the money, root out illicit schemes, and halt the stream of cryptocurrency to any government attempting to evade sanctions or committing terrorist activities,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “By cutting off funds raised by the black-market sale of crude oil, the Iranian military and terrorists are weakened. The FBI will not relent in its resolve to drain the funds from dangerous foreign actors.”

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

Two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts at the UAE-based cryptocurrency exchange Binance to launder the proceeds of black-market sales of Iranian oil, funneling the illicit funds to the Government of Iran, its agents, and/or its proxies, where they were used to finance terrorist and other activities of the Iranian government. Though Blessed Trust represents itself to financial services and cryptocurrency services providers as a wealth management or virtual asset custodial services firm, in fact it received and transferred the proceeds of sales of Iranian crude oil and petroleum products and provided “on-ramp” services to convert fiat currency into cryptocurrency, including through the use of U.S.-based cryptocurrency issuers. Hexa Whale similarly holds itself out as a commodities brokering company, but in fact provided similar services as Blessed Trust, working in concert with Blessed Trust and its affiliates. Blessed Trust and Hexa Whale’s clients include companies in China’s petroleum and petroleum products sector. 

A series of interrelated unhosted cryptocurrency addresses, termed the “Entity A” addresses, have received and distributed more than approximately $1.5 billion of proceeds of the illicit sale of Iranian oil. Entity A has funneled Iranian oil money to IRGC-related money services businesses, IRGC-related cryptocurrency addresses, and an Iranian cryptocurrency exchange.  These transfers of Iranian oil proceeds were facilitated in large part by Blessed Trust, Hexa Whale, and individuals associated with those entities, through transactions and cryptocurrency addresses designed and executed to obfuscate the nature, source, and ownership of the funds involved.  Blessed Trust and Hexa Whale have also used the U.S. financial system to send or receive tens of millions of dollars as part of this scheme.

*                *                 *

Mr. Buckley praised the outstanding work of the FBI New York Counterintelligence and Espionage Division.  Mr. Buckley also thanked the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division and the Money Laundering, Narcotics, and Forfeiture Section of the Department of Justice’s Criminal Division for their assistance and support for the investigation and today’s forfeiture action. 

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit and National Security and International Narcotics Unit. Assistant U.S. Attorneys Christopher Brumwell, Jane Chong, David Markewitz, and Juliana N. Murray are in charge of the prosecution.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.  These allegations are not proven until a court awards a judgment in favor of the United States.

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a Complaint charging WANJA OBERHOF, a founder and the former CEO of a wellness startup, the Healing Company, with defrauding an investor in his venture. OBERHOF was presented today before Magistrate Judge Ona T. Wang. 

“Investors are entitled to know that their money will be used for the purposes they were promised, not siphoned off to fund an executive’s personal expenses,” said U.S. Attorney Jamie McDonald.  “As alleged, Wanja Oberhof convinced an investor to provide millions of dollars for a specific business purpose, then diverted much of that money for his own benefit and doctored records to conceal what he had done.” 

“Oberhof allegedly defrauded at least one victim of over two million dollars and operated under the guise of running a wellness company,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI and its partners will continue to pursue investigations into dishonest individuals to prevent the furtherance of any such schemes.”

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

The Healing Company was a start-up venture that, among other things, sought to acquire interests in health and wellness companies. As described further below, WANJA OBERHOF, the defendant, was a co-founder and then CEO of The Healing Company and made misrepresentations to an investor in The Healing Company in order to obtain investor money, and subsequently misappropriated investor funds. In particular, OBERHOF tricked a businessman (“Victim-1”) into investing $2.5 million in an affiliate of The Healing Company based on the false promise that Victim-1’s funds would be used in substantial part to pay off debt that was encumbering a valuable asset held by The Healing Company. Rather than using the investor’s money as promised, OBERHOF misappropriated the vast majority through various money transfers for OBERHOF’s personal benefit. For example, OBERHOF transferred, or caused to be transferred: (a) approximately $25,000 of Victim-1’s money to pay for OBERHOF’s rent at his luxury penthouse apartment in Manhattan (which cost nearly $20,000 per month in rent); (b) over $57,000 of Victim-1’s money to repay a personal loan; and (c) ultimately, over $1.8 million of Victim-1’s money to a foreign bank account controlled by OBERHOF. In an attempt to hide the fraud from Victim-1, OBERHOF shared with Victim-1 and others doctored records relating to the use of Victim-1’s investment that, had OBERHOF not manipulated them, would have revealed OBERHOF’s misappropriation and the fraud on Victim-1.

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OBERHOF, a German national, 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. McDonald praised the outstanding work of the FBI. 

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that DUSTIN TOMPKINS, a registered sex offender, was charged with sexual exploitation of children by persuading, and attempting to persuade, them to create and send him sexually explicit images, receipt and distribution of child pornography, and committing offenses against children while being a registered sex offender.  TOMPKINS, who is currently detained on charges that he violated the terms of his supervised release, was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.

“The Southern District of New York will use every available tool to protect children,” said U.S. Attorney Jamie McDonald.  “Dustin Tompkins represents every parent’s greatest fear: an adult who allegedly used social media to gain access to children and exploit them for his own sexual gratification.  As alleged, while on supervision for a prior conviction for receipt and distribution of child pornography, Tompkins used social media to communicate with minors and persuade them to create and send him sexually explicit images.  Tompkins is also alleged to have amassed additional child pornography via social media applications.  If you have information to report, please immediately contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”

As alleged in the Complaint:(1)

On or about March 18, 2015, TOMPKINS pled guilty in the United States District Court for the Southern District of New York to receiving and distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2) and (b)(1), and was subsequently sentenced to 77 months in prison to be followed by a lifetime term of supervised release.

On or about January 30, 2026, officers from the U.S. Probation Office conducted a routine supervisory visit and discovered hidden in TOMPKINS’s bedroom an unsanctioned smartphone.  A subsequent court-authorized search of that smartphone found images comprising child pornography.  The search of the smartphone further revealed that, on or about January 24, 2026, TOMPKINS had created a messaging group using a social media application by which he received and viewed approximately 55 files containing child pornography. 

Finally, the smartphone search found that TOMPKINS, using a second social media application, had posed as an adult woman and exchanged messages with minors.  Specifically, on or about October 14, 2025, Tompkins directed a 13-year-old to engage in sexually explicit conduct, photograph the conduct, and transmit the photograph to him.  Then, on or about December 26, 2025, Tompkins directed, and attempted to direct, a 16‑year-old to engage in sexually explicit conduct, photograph and record the conduct, and transmit the photograph and video to him.   

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

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TOMPKINS, 38, of Mount Kisco, New York, is charged with two counts of sexual exploitation of a child, which each carry a minimum sentence of 25 years in prison and a maximum sentence of 50 years in prison.  TOMPKINS is also charged with one count of receipt and distribution of child pornography, which carries a minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison.  TOMPKINS is finally charged with one count of committing the offenses charged in Counts One and Two while being a registered sex offender, which requires a sentence of 10 years in prison to be served consecutively to any sentence imposed pursuant to Counts One and Two. 

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

Mr. McDonald thanked Homeland Security Investigations of the Department of Homeland Security and the United States Probation Office. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Samantha Briggs and John Wynne are in charge of the prosecution.

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced the unsealing of a Complaint charging VUK VUKOVIC, founder of the hedge fund Oraclum Capital LLC (“Oraclum”) and Chief Executive Officer and Chief Investment Officer of the Orca Bason Fund, L.P. (the “Orca Bason Fund” or the “Fund”), with securities fraud and wire fraud. VUKOVIC was presented yesterday before U.S. Magistrate Judge Jennifer E. Willis. 

“We will continue working with our committed law enforcement partners to hold accountable those who use deception to put investors’ money at risk,” said U.S. Attorney Jamie McDonald. “As alleged, Vuk Vukovic attracted investors to his fund and lulled them into keeping their money invested by reporting high rates of return that were not real. Investors deserve honest and accurate information when deciding where to put their hard-earned money.”

“Vuk Vukovic allegedly used interstate commerce to carry out a deceptive scheme involving the purchase and sale of securities,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “These allegations represent a serious breach of market integrity, and the FBI remains committed to enforcing securities laws to protect investors.” 

“When individuals allegedly mislead investors and defraud them, the consequences extend far beyond their immediate crimes—they threaten the economic stability and livelihoods of American citizens,” said USPIS Inspector in Charge Ketty Larco-Ward. “While investing always carries inherent risk, a breach of trust adds an unacceptable layer of deception. Postal Inspectors remain steadfast in holding accountable anyone who violates protective laws and compromises that trust. We urge the public to recognize the red flags of fraud, resist high-pressure tactics, and carefully assess every investment opportunity before acting.”

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

Oraclum is a New York-based hedge fund that operates and manages the Orca Bason Fund.  The Orca Bason Fund purports to make investment decisions “using wisdom of crowds and a network analysis of social media bubbles to predict where markets will end up.”  Since at least 2024, however, VUKOVIC has engaged in a scheme to obtain investor money by misrepresenting the Orca Bason Fund’s returns to investors. VUKOVIC’s misrepresentations include: sending false monthly account statements to investors that show their investment in the Orca Bason Fund earning greater returns than it actually did; and sending falsified brokerage account statements to a potential investor reflecting a higher net asset value and greater returns than actually existed. 

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VUKOVIC, 38, of New York, New York, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.

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

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

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Maggie Lynaugh and Kyle Wirshba are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that ILIT RAZ, the founder and former Chief Executive Officer of Joonko Diversity, Inc. (“Joonko”), pled guilty to securities fraud for her role in a scheme to defraud investors and mislead them about core aspects of the company she founded, including the identity and quantity of Joonko’s customers and Joonko’s revenue. The case has been assigned to U.S. District Judge Alvin K. Hellerstein. 

“Fraud in the startup space hurts investors and makes it more difficult for other enterprising businesses to raise money,” said U.S. Attorney Jamie McDonald. “Ilit Raz lied to investors about key aspects of her startup company, Joonko Diversity, Inc., and fabricated documents to support those lies, to obtain $27 million in investments. Her now-bankrupt company left victim investors with millions of dollars in losses.”

“The guilty plea makes clear that defrauding investors and misrepresenting essential facts about a company will not be tolerated,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “By admitting to her role in the scheme, Ilit Raz has acknowledged the seriousness of her actions and the harm caused to investors. Victims deserve justice, and the FBI will continue to work to ensure they receive it.” 

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

Joonko was a company that purported to offer an artificial intelligence-based product designed to help prospective employers identify and hire job candidates from diverse backgrounds. To induce prospective and existing Joonko investors to invest approximately $27 million in funding rounds in 2021 and 2022, RAZ made false claims regarding central aspects of Joonko’s business, including falsely representing how many customers Joonko had at the time, and falsely representing the identity of those customers. For example, RAZ falsely represented that Joonko’s customers included some of the world’s largest companies, including a credit card company, sports apparel brand, online travel company, and luxury fashion brand. In truth and in fact, and as RAZ knew, these companies were never Joonko customers. In addition to overstating the number of customers that Joonko had and the identity of those customers, RAZ also made false representations about Joonko’s actual and anticipated revenues.

After RAZ made false and misleading statements regarding Joonko’s customers and revenue, several investors who received those statements invested in a series of funding rounds with Joonko. Specifically, on or about June 1, 2021, several investors, including venture capital firms, invested a total of approximately $10 million in a Series A round with Joonko. On or about June 2, 2022, several investors, including venture capital firms, invested a total of approximately $17 million in a Series B round with Joonko.

In or about 2023, a Joonko investor (“Investor-1”) became suspicious about Joonko’s performance and requested certain information from Joonko, including bank statements. In response, on or about April 3, 2023, RAZ emailed Investor-1 a purported Joonko bank statement, which depicted that the company had an average balance of over $5,000,000. In truth and in fact, and as RAZ well knew, the bank records that RAZ emailed to Investor-1 were forged, and the actual bank records showed that Joonko’s true account balance was millions of dollars lower. Less than a week later, on or about April 8, 2023, RAZ emailed Investor-1 a set of purported purchase orders for Joonko customers. RAZ knew that many of the purchase orders she emailed to Investor-1 were fictitious, contained forged signatures, and were executed on behalf of purported customers that had no business relationship with Joonko.

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RAZ, 40, an Israeli citizen, pled guilty to 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. McDonald praised the outstanding work of the FBI. Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission. 

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced that JORDAN TROUGHT was sentenced by U.S. District Judge Vincent Briccetti to eight years in prison for his role as a high-ranking member of an international fraud ring that stole more than $9 million from more than 200 elderly victims in the United States via sweepstakes scams.  TROUGHT was arrested in Jamaica on August 28, 2025, and subsequently extradited to the United States on October 22, 2025. In June 2026, he pled guilty before U.S. Magistrate Judge Judith C. McCarthy to conspiracy to commit wire fraud, mail fraud, and bank fraud. 

“This sentence reflects the seriousness of schemes that deliberately target elderly victims and strip them of their financial security,” said U.S. Attorney Jamie McDonald.  “Jordan Trought defrauded hundreds of elderly victims out of millions of dollars, taking advantage of their age to rob them of their hard-earned life savings.  In doing so, he and his co-conspirators imposed devastating financial consequences on their victims.”

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

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

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

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In addition to the prison term, TROUGHT, 31, was sentenced to three years of supervised release and ordered to pay forfeiture of $6,166,227.00.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today an Indictment charging ARMANDO SOLIS BARRON, a/k/a “Solomon,” and DOMINIC AHIGA, a/k/a “Michael Grinnell,” a/k/a “Josh Weinstein,” with wire fraud and conspiracy to commit wire fraud for their scheme to defraud clients of their mortgage modification business of millions of dollars in fees. BARRON and AHIGA were previously arrested and presented in the Central District of California and are expected to be arraigned on the Indictment this afternoon before U.S. Magistrate Judge Andrew E. Krause.

“This Office is committed to rooting out fraud in all of its forms, and we will work tirelessly to prosecute frauds targeting vulnerable victims,” said U.S. Attorney Jamie McDonald. “Armando Solis Barron and Dominic Ahiga allegedly preyed upon financially struggling homeowners who got behind on their mortgages by charging them monthly fees and leading them to believe much of their past-due balances would be forgiven, causing a number of those customers’ homes to go into foreclosure.”

“Armando Solis Barron and Dominic Ahiga’s alleged fraud scheme involved taking money from people who sought assistance with their mortgages,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “This scheme hurt hundreds of vulnerable people financially. The FBI will continue to prioritize complex financial fraud investigations to protect the public from anyone who takes advantage of consumers.”

According to the Indictment:(1)

From at least in or about June 2018 through at least in or about September 2022, in the Southern District of New York and elsewhere, BARRON and AHIGA, together with others, defrauded clients of their mortgage modification business and the clients’ mortgage lenders. BARRON, AHIGA, and others operated their mortgage modification business under different names, including Green Equitable Solutions, d/b/a Academy Home Services; South West Consulting Enterprises, Inc. d/b/a Home Matters USA; Apex Consulting & Associates Inc., d/b/a Golden Home Services America; and Infocom Entertainment Ltd., d/b/a Atlantic Pacific Service (collectively, the “Company”). BARRON, AHIGA, and others solicited homeowners who were struggling to make monthly payments on their mortgages and promised to have the homeowners’ interest rates and monthly payments reduced in exchange for monthly fees. 

BARRON, AHIGA, and others induced the Company’s clients to accept their services and to continue to pay the monthly fees by lying about, among other matters, the amount of time that the mortgage modification process would take and the nature of the fees that the clients were paying for mortgage modification services. The defendants and others also directed clients to stop making monthly mortgage payments to their lenders and to pay the Company monthly fees instead. The conspirators falsely told clients that their lenders would forgive their arrearages and, in many instances, that part of their monthly payments to the Company would go to pay down the balances of their mortgage loans. BARRON, AHIGA, and others also defrauded the clients’ lenders by making material misrepresentations and by engaging in fraudulent practices to cause the lenders to modify the clients’ mortgages, including by creating and submitting fabricated bank statements so that the Company’s clients appeared to meet the lenders’ criteria for a modification. Clients of the mortgage modification business operated by BARRON, AHIGA, and others paid over approximately $15 million for mortgage modification services, and a number of those clients’ homes went into foreclosure.

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SOLIS BARRON, 63, of La Habra Heights, California, and AHIGA, 56, of Los Angeles, California, are both charged with wire fraud and conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.

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

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

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys David A. Markewitz and James McMahon are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald announced today that NOSSON SKLAR, a/k/a “Nathan Sklar,” was sentenced to 38 months in prison for engaging in a scheme to defraud health benefit programs through the submission of more than $20 million in fraudulent claims.

“Today’s sentence reflects the seriousness of this crime and our Office’s commitment to safeguarding affordable health care from fraud for all New Yorkers,” said U.S. Attorney Jamie McDonald. “Nosson Sklar spent years bilking health care benefit programs of millions of dollars and will now spend serious time in prison for his conduct.”

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

SKLAR was the owner and chief executive officer of a company that operated a series of physical rehabilitation facilities around New York City (the “Rehabilitation Company”).  Between at least January 2020 and in or about July 2024, SKLAR submitted or caused others to submit more than $20 million in claims for medical services to various health care benefit programs, asserting that those services were rendered by a physician who worked with the Rehabilitation Company (“Victim-1”). But that was false.  Victim-1 did not provide those services, did not work with the Rehabilitation Company during that time, and did not authorize SKLAR to submit bills in his name. 

In or about July 2024, Victim-1 spoke with SKLAR on at least two occasions about the fraudulent bills.  During those conversations, SKLAR admitted that he had committed “fraud” by billing under Victim-1’s name, and that he did it “because [of] the money.”

Between at least in or about January 2020 and in or about July 2024, SKLAR caused more than $20 million in claims to be submitted to three separate health benefit programs (the “Health Plans”), which listed Victim-1 as having been the rendering provider for the Rehabilitation Company.  Approximately $12.4 million of those claims were eventually paid by the Health Plans.

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In addition to the prison term, SKLAR, 56, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $12,440,000 and to pay Victim-1’s legal expenses.

Mr. McDonald praised the outstanding investigative work of the U.S. Department of Health and Human Services, Office of Inspector General and Federal Bureau of Investigation.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jorja N. Knauer and David A. Markewitz are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, announced that JULIUS CSURGO was sentenced to 27 months in prison for manipulating 19 different “penny stocks” in a pump-and-dump scheme designed to fraudulently inflate the value of CSURGO’s own shares in those companies. CSURGO pled guilty on May 27, 2026, before U.S. District Judge Ronnie Abrams, who imposed the sentence on September 4, 2026.

“This sentencing reflects a clear and unambiguous message: those who manipulate our markets and defraud investors will not escape justice,” said U.S. Attorney Jamie McDonald. “Julius Csurgo manipulated U.S. financial markets, exploited shell companies, and engaged in deceitful promotions to enrich himself at the expense of unsuspecting investors. We will continue to work with our law enforcement partners to ensure our markets remain fair, transparent, and trustworthy.” 

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

CSURGO, a Canadian-Hungarian citizen, orchestrated multiple “pump-and-dump” schemes along with his -co-conspirators. In his guilty plea, CSURGO admitted to securities fraud involving nineteen 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 control over the shares and significant influence over company management, CSURGO and his co-conspirators 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, CSURGO sold large percentages of holdings and collected the proceeds through the elaborate network of nominee entities he controlled, which he also used to distribute proceeds to his co-conspirators.​​​​​​​​​​​​​​​​

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In addition to his prison term, CSURGO, 71, of Toronto, Canada, was sentenced to one year of supervised release and ordered to forfeit approximately $9,610,409.95.

Mr. McDonald 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 Canada. Mr. McDonald also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against CSURGO. 

The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason Richman, Samuel Rothschild, and Matthew R. Shahabian are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and United States Marshal for the Southern District of New York, Ricky J. Patel, announced the extradition of husband and wife, SWAYNE BARKER and RICKI RICKALINE GIBBS, from Jamaica today on fraud and bail jumping charges, respectively.  BARKER faces charges of conspiracy, wire fraud, mail fraud, money laundering, and receiving stolen money for his role in a multi-year scheme to defraud elderly victims across the United States, resulting in losses of over $1.7 million to more than 20 victims.  GIBBS was sentenced by U.S. District Judge Kenneth M. Karas in January 2026 to 51 months in prison for conspiracy to commit mail and wire fraud in connection with this scheme.  Following sentencing, GIBBS fled to Jamaica and now faces additional charges for bail jumping.  BAKER and GIBBS arrived in the United States on August 27, 2026, and were presented before U.S. Magistrate Judge Andrew E. Krause.  Both cases are assigned to U.S. District Judge Kenneth M. Karas.

“Today’s extradition makes clear that fraudsters who exploit vulnerable victims will be held accountable and that those who would seek to escape the consequences of their crimes will be relentlessly pursued until they are brought to justice,” said U.S. Attorney Jamie McDonald.

“Attempting to escape a federal sentence or hide from charges across the ocean is a losing strategy,” said U.S. Marshal Ricky J. Patel.  “Ricki Rickaline Gibbs jumped bail and fled to Jamaica, but the USMS in the Southern District of New York and the USMS Jamaica Foreign Field Office, working hand-in-hand with local Jamaican law enforcement, tracked both Gibbs and Swayne Barker down.  Our message is clear: if you prey on vulnerable individuals there will be nowhere safe for you to hide.  We will find you and bring you back to answer for your crimes.”

According to the Superseding Indictment through which BARKER is charged and statements made in public filings and in public court proceedings:(1)

From at least in or about 2019 through at least in or about 2023, BARKER and GIBBS defrauded more than 20 victims of over $1.7 million by representing to victims that they had won prizes in a sweepstakes and needed to transfer money to pay taxes and fees to claim their purported prizes. In truth, the victims had not won any sweepstakes prizes, and BARKER, GIBBS, and others misappropriated these victims’ funds. 

Victims of this scheme typically received an unsolicited phone call or text from an individual using a common name—e.g., “Robert James,” “Robert Hill,” or “Mark Miller”—claiming they had won a life-changing amount of money and a luxury car but needed to pay taxes or fees to addresses and accounts specified by the caller before receiving the prize.  The caller then remained in contact with the victims and, after the victims made their initial payments as directed, informed the victims that additional payments were required to receive their purported winnings.  In particular, victims were instructed to send money by mailing checks, money orders, Vanilla Visa gift cards, and cash concealed in books, as well as by wire and Zelle transfer, to addresses and accounts identified by the caller.  After luring victims in with the sweepstakes lie, the perpetrators of this scheme also used romance scam tactics to induce victims to continue making payments.  Gibbs is a dual citizen of Jamaica and the United States, who participated in the scheme from both New York and Jamaica, alongside co-conspirators based in Jamaica, including BARKER, who is a citizen of Jamaica.

According to the Indictment charging GIBBS with failure to surrender for service of sentence and statements made in public filings and in public court proceedings: 

GIBBS was sentenced by the Honorable Kenneth M. Karas on January 7, 2026, and ordered to surrender on February 9, 2026, to the United States Marshal for the Southern District of New York, or to a designated facility.  GIBBS failed to surrender to the United States Marshal on that date and instead fled to Jamaica, where she was arrested in April 2026 pursuant to a U.S. provisional arrest warrant. 

*                *               *

BARKER is charged with conspiracy to commit wire fraud and mail fraud, wire fraud, mail fraud, and conspiracy to commit money laundering, each of which carries a maximum term of 20 years in prison, as well conspiracy to receive stolen money, which carries a maximum term of five years in prison.  GIBBS is charged with failure to surrender for service of sentence, which carries a maximum term of 10 years in prison.  In addition to this new charge, GIBBS has been extradited to serve her pending sentence of 51 months in prison to be followed by three years of supervised release.  GIBBS has also been ordered to pay forfeiture of $1,018,703, and restitution of $1,379,402.

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

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the filing of an Indictment charging JIMMY ROSARIO with coercion and enticement of a 16-year-old victim (“Minor Victim-1”), coercion and enticement of a 12-year-old victim (“Minor Victim-2”), and sex trafficking of a 17-year-old victim (“Minor Victim-3”).  ROSARIO is detained and the case has been assigned to U.S. District Judge J. Paul Oetken. 

“This Office is dedicated to protecting our children and ridding our streets of sexual predators,” said U.S. Attorney Jamie McDonald.  “As alleged, Jimmy Rosario preyed on multiple minor victims using online social messaging platforms.  After meeting his victims online, Rosario allegedly lured these minors to meet in person by offering them alcohol, drugs, food, and cash, then engaged in unlawful sexual activity with them.”

“Jimmy Rosario allegedly preyed on vulnerable minors through sex trafficking and coercion, a series of acts that are completely indefensible,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI/NYPD Crimes Against Children and Human Trafficking Task Force work relentlessly to ensure individuals like Rosario are removed from our communities and are held accountable for their heinous crimes.”

According to the Indictment and other public filings, from at least July 2025 through June 2026, ROSARIO utilized his cellphone and the Internet, including social messaging platforms, to connect and communicate with minors, including Minor Victim-1, Minor Victim-2, and Minor Victim-3. ROSARIO used his cellphone and the Internet to arrange for in-person meet ups where he engaged in oral, vaginal, and anal sex with the minor victims.  Specifically, ROSARIO enticed Minor Victim-1 and Minor Victim-2 to engage in unlawful sexual activity and solicited Minor Victim-3 to engage in sexual acts in exchange for money and other forms of payment. 

This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

If you have been victimized by ROSARIO in any way or have any additional information about his alleged illegal behavior, please call the FBI at 1-800-CALL-FBI. 

*                *                *

ROSARIO, 42, of the Bronx, New York, is charged with two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

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

Mr. McDonald thanked the FBI/New York City Police Department Crimes Against Children and Human Trafficking Task Force for its outstanding work in connection with this investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Ariel Cohen is in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade. 

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that the United States has filed a Complaint against MICHAEL SHABSELS, SIMAD HOLDINGS LLC, DAMIS HOLDINGS LLC, and 26 related entities (the “Shabsels Companies” and, collectively, the “Defendants”), alleging that the Defendants concealed their interrelationship from the Small Business Administration (“SBA”) in order to improperly obtain PPP funds.  The lawsuit seeks damages and civil penalties under the False Claims Act as well as a recovery of government funds under the common law. 

“Congress enacted the Paycheck Protection Program during a national crisis to help small businesses,” said U.S. Attorney Jamie McDonald.  “As alleged, the defendants repeatedly lied to the SBA to exploit this program and fund their sprawling network of companies at taxpayer expense, thereby depleting the funds for small businesses that needed the assistance.  The civil process to recover taxpayer funds remains ongoing.”

The following allegations are based on the Complaint filed in White Plains federal court on August 24, 2026:

To promote the availability of PPP loans to the largest number of borrowers, the SBA limited businesses in a single corporate group to a maximum aggregate loan amount of $4 million for second-draw PPP loans (the “Corporate Group Rule”).  The Shabsels Companies were part of a large corporate group that was subject to the Corporate Group Rule’s cap of $4 million.  Indeed, the vast majority of the Shabsels Companies were directly majority-owned by a single company.  The Defendants, however, sought and obtained over $17 million in second-draw PPP loans for the Shabsels Companies, improperly obtaining over $13 million in PPP loans, all of which were forgiven, as follows:

Defendant 

Camp Name

Loan and Forgiveness Amount

ACHIM OPERATINGCO LLC

Camp Achim, New York

$79,527.00 

BAHS OPERATING INC CAMP

Camp Chen-A-Wanda, Pennsylvania

$1,072,529.00

BANNER OPERATINGCO LLC

Banner Day Camp, Illinois

$1,394,904.00

BELGRADE LAKES SUMMER CAMPS LLC

New England Tennis and Golf Camp, Maine

$167,415.00 

BLUESTAR OPERATINGCO, LLC

Blue Star Camps, North Carolina

$1,425,091.00 

CAMP MED-O-LARK, INC

Camp Med-O-Lark, Maine

$454,719.00 

CLUB GETAWAY OPERATINGCO, LLC

Club Getaway, Connecticut

$592,039.00 

COUNTRY ROADS OPERATINGCO, LLC 

Country Roads Day Camp, New Jersey

$1,134,437.50 

DAMIS HOLDINGS, LLC

(not a camp at all, but a holding company)

$179,730.00 

EAGLE'S LANDING DAY CAMP LLC

Eagle’s Landing, New Jersey

$591,804.00 

GREEN LANE OPERATINGCO, LLC

Camp Green Lane, Pennsylvania

$175,836.00 

IAFA OPERATING CO, LLC

Indian Acres and Forest Acres, Maine

$469,105.00 

KIWI OPERATINGCO, LLC

Kiwi Country Day Camp, New York

$768,410.00

LAVCO LLC

Camp Lavi, Pennsylvania

$689,132.00 

MAINE WEKEELA CO, LLC

Camp Wekeela, Maine

$424,343.00 

MALKA OPERATINGCO LLC

Camp Malka, New York

$163,628.00 

MEADOWBROOK OPERATINGCO, LLC

Meadowbrook Country Day Camp, New Jersey

$1,380,766.00

MESORAHCO, LLC

Camp Mesorah, New York

$469,829.00 

MOGENAVCO LLC

Camp Mogen Av, New York

$1,091,353.62

MOHAWKCAMPCO LLC

Mohawk Day Camp, New York

$2,000,000.00 

POLAND CAMPCO LLC 

Camp North Star, Maine

$224,350.00 

RDM CAMPS LLC 

Camp Lokanda, New York

$719,446.00 

SHAB OPERATING INC

Camp Echo, New York

$326,893.00 

STONY CREEK OPERATING CO, LLC

1000 Acres Ranch, New York

$142,015.00 

SUMMIT CAMP, LLC

Summit Camp, Pennsylvania

$613,833.50 

WAUKEELA OPERATINGCO LLC

Camp Waukeela, New Hampshire

$268,170.00 

WM CAMP LLC

Windsor Mountain Summer Camp, New Hampshire

$399,273.00 

SHABSELS signed numerous second-draw PPP applications on behalf of the Shabsels Companies.  On over 20 occasions, SHABSELS falsely answered “no” to the following question in PPP applications submitted on behalf of the Shabsels Companies: “[i]s the Applicant or any owner of the Applicant an owner of any other business, or have common management (including a management agreement) with any other business.”  In fact, SHABSELS and SIMAD HOLDINGS, LLC were owners of the applicants for PPP loans and also owners of various other businesses.

The Defendants have all filed for bankruptcy in the District of New Jersey.  In this action, the United States seeks to determine the extent of the Defendants’ liability and will then coordinate any recovery for the taxpayers in conjunction with the bankruptcy proceedings.

*                *                *

The Government intervened in a whistleblower lawsuit before U.S. District Judge Kenneth M. Karas that had previously been filed under seal pursuant to the False Claims Act, and which was unsealed on August 17, 2026. 

Mr. McDonald thanked the SBA for its assistance with the case.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today charges against KAHEEM ARCHER, CALVIN BENT, CHRISTINE FERGUSON, LAMONT MARTIN, AJANI MCCHRISTON, and CHAD REED in connection with a multi-year scheme to steal rental cars worth millions of dollars using stolen credit cards and forged driver’s licenses.  Each of the six defendants is charged with conspiracy to receive, possess, and dispose of stolen vehicles; conspiracy to commit wire fraud; and aggravated identity theft.  All six defendants were arrested today and presented in Manhattan federal court before U.S. Magistrate Judge Robert W. Lehrburger.

“Identity theft has no place in our community, and it impacts and harms New Yorkers and others in many different ways,” said U.S. Attorney Jamie McDonald.  “As alleged, the six defendants charged today traveled up and down the East Coast, picking up rental cars using credit cards obtained with the identities of innocent victims to further a variety of schemes, including the use of rental cars to commit violent crimes in our community.  These charges not only bring that scheme to an end but also send a broader message that the women and men of this Office, in coordination with our law enforcement partners, will continue to investigate and pursue criminals who seek to use the identities of unwitting and innocent victims to enrich themselves and commit crimes.”

“The alleged rental car and identify theft scheme in this investigation resulted in the loss of millions of dollars from innocent victims,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Crimes involving stolen identities and large-scale financial loss undermine public trust and cause harm to those impacted.  In support of the Vice President's Fraud Task Force, FBI New York will continue to work diligently to protect the public from fraud in all its forms.  

“As alleged in the complaint, these six defendants used stolen credit cards and forged driver’s licenses to steal millions of dollars in stolen vehicles, some of which were later used in violent crimes,” said NYPD Commissioner Jessica S. Tisch.  “Today, we shut this criminal operation down and remind those who attempt to use our city as a playground for criminal activity that they will face consequences. Thank you to our NYPD investigators whose relentless work dismantled this scheme, and our partners at the U.S. Attorney’s Office for the Southern District of New York for ensuring that these individuals are held accountable. 

As alleged in the Complaint and other public filings:(1)

From at least September 2023 to the present, ARCHER, BENT, FERGUSON, MARTIN, MCCHRISTON, and REED stole rental cars across the Northeastern United States from multiple rental car companies by using stolen credit cards and fraudulent driver’s licenses bearing the defendants’ photographs but victims’ names.  For over three years, the defendants executed the charged scheme by reserving and picking up rental cars under stolen identities, charging the rentals to the victims’ credit cards, and then transporting the cars to the Bronx or Manhattan, New York, often on the same day.  Multiple defendants carried out these thefts in close succession at the same rental locations.  None of the cars were returned, and several were later recovered in connection with violent crimes or found operated by suspects of violent crimes. 

*                *                *

ARCHER, 29, of Brooklyn, New York; BENT, 24, of Brooklyn; FERGUSON, 27, of Brooklyn; MARTIN, 26, of Staten Island, New York; MCCHRISTON, 33, of Brooklyn; and REED, 27, of Brooklyn, are each charged with one count of conspiracy to receive, possess, and dispose of stolen vehicles, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

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

Mr. McDonald praised the outstanding investigative work of the FBI and NYPD, including the FBI / NYPD New York Joint Major Theft Task Force.  Mr. McDonald also thanked the Northampton, Massachusetts Police Department; Verona, New Jersey Police Department; Collegeville, Pennsylvania Police Department; Newark, Delaware Police Department; Greenwich, Connecticut Police Department; Delaware State Police, New York State Police, and the U.S. Customs and Border Protection for their valuable assistance.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Leslie B. Arffa and Matthew T. Souza are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today the unsealing of an Indictment charging JESUS LUIS MORELL, a senior executive at HEICO Corporation (“HEICO”), with three counts of securities fraud stemming from multiple instances of insider trading based on misappropriated financial information belonging to his employer.  MORELL was presented today before U.S. District Judge Jared M. Strauss in the Southern District of Florida.  

“Luis Morell allegedly misappropriated confidential information obtained from his employer and used it for his personal benefit,” said U.S. Attorney Jamie McDonald.  “Protecting the integrity of our financial markets is a core priority of this Office, and we will continue to keep a watchful eye over anyone who seeks to undermine the integrity of those markets.”

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

MORELL was the President of two significant subsidiaries of HEICO and a member of the Board of Directors for a third subsidiary.  HEICO maintained policies prohibiting employees from trading in HEICO stock while in possession of material nonpublic information, which policies MORELL acknowledged he understood on an annual basis.  Notwithstanding MORELL’s certifications that he would abide by HEICO’s insider trading policies, on two separate occasions in 2022 and 2025, MORELL purchased Class A common stock of HEICO in advance of the public quarterly earnings release but after receiving material non-public information concerning HEICO’s actual or forecasted earnings for the quarter.  Following the public release of HEICO’s quarterly earnings information—which included financial data that was the same or very similar to the data MORELL received before purchasing HEICO stock—the price of HEICO’s Class A shares rose and MORELL quickly sold all of the shares he had purchased for a significant profit.  In total, MORELL made more than $1.8 million in illicit profits by trading HEICO stock based on material, nonpublic information he misappropriated from his employer.

*                *                *

MORELL, 64, of Fort Lauderdale, Florida, is charged with two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; and one count of securities fraud, which carries a maximum sentence of 25 years in prison.

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

Mr. McDonald thanked the FBI.  Mr. McDonald also thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. 

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

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

1. ^

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

The Justice Department announced today the unsealing of a nine-count Indictment charging Louis Trejo, also known as “Machete;” Kenneth Garner, also known as “KG;” Harold Stevenson, also known as “Bazz;” and Erihk Belis, also known as “Eddie” with racketeering, violence in aid of racketeering, firearms, fraud, narcotics, and money laundering offenses for their roles in a wide ranging racketeering conspiracy involving the fabrication of transportation data used to support over at least $12 million of fraudulent Medicaid claims.

The defendants, members of a Bronx-based racketeering organization known as the “War Room,” logged fake rides for Medicaid patients to and from methadone clinics in the Bronx, paid recurring kickbacks to Medicaid patients in cash and drugs, and laundered millions of dollars in fraud proceeds obtained from the scheme. To protect and expand their racketeering conspiracy, Trejo, Garner, and other members of the War Room also engaged in violence against their rivals, including a Jan. 12, 2024, armed home invasion robbery of the leader of a rival fraud ring in Teaneck, New Jersey. Trejo, Garner, and Belis were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. Stevenson remains at large. The case is assigned to District Judge John G. Koeltl.

“Today’s allegations underscore the troubling connection between benefits fraud and violent criminal networks,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As charged, the defendants are accused of targeting vulnerable patients, defrauding a critical healthcare program, and turning to violence to protect their fraudulent scheme. I commend the prosecutors and agents of the Southern District of New York for their dedicated work in bringing these serious allegations forward.”

“As alleged, members of the War Room perpetrated a massive fraud scheme that preyed upon the addiction of vulnerable Medicaid patients, defrauded a vital federal healthcare program, and caused over $12 million in losses to American taxpayers,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “To protect and grow their scheme, War Room members allegedly peddled deadly drugs, committed an armed robbery against a rival fraud ring, and laundered their profits. Today’s arrests dismantled the War Room’s racketeering operation and demonstrate that we will relentlessly pursue those who defraud federal benefit programs and endanger our communities through drugs and violence.”

“These defendants are accused of masterminding a brazen scheme built on greed and exploitation, turning Medicaid-funded addiction treatment transportation into a multimillion-dollar criminal pipeline through fake ride data, GPS spoofing, kickbacks, narcotics, and money laundering,” said Acting Special Agent in Charge Pete Gizas of Homeland Security Investigations (HSI), New York Field Office. “Far from a victimless fraud, this alleged racketeering operation exploited vulnerable patients seeking treatment, stole from a taxpayer-funded healthcare program, and injected narcotics and violence into the criminal enterprise. When their profits were threatened, members of the ‘War Room’ allegedly escalated to armed violence, including with a home invasion during which victims were restrained, assaulted, cut, and held at gunpoint. As a co-leader of the Homeland Security Task Force, HSI New York will continue working relentlessly with our partners to expose violent fraud enterprises, disrupt their financial networks, and hold alleged perpetrators accountable.”

“The alleged scheme exploited individuals seeking addiction treatment and diverted millions in federal health care funds,” said Special Agent in Charge Naomi D. Gruchacz of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This investigation highlights our commitment to working with Homeland Security Investigations and other law enforcement partners to pursue fraudsters who undermine the Medicaid program and the needs of its enrollees.”

“Today’s arrests send a clear message: exploiting Medicaid for personal gain will not be tolerated,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS), New York Division. “These individuals allegedly stole millions from a program designed to protect some of our most vulnerable citizens, and in doing so, betrayed the trust of the public. Postal Inspectors will defend against all types of fraudsters, and I commend the hard work and partnership of our federal and state partners to ensure all are held fully accountable under the law.”

“These defendants allegedly engaged in a systematic fabrication of data and kickbacks to steal over $12 million at the expense of New Yorkers in need,” said New York State Comptroller Thomas P. DiNapoli. “Medicaid is a vital program, and my office will continue to work with law enforcement to hold people who try to defraud it accountable. I thank the United States Attorney and federal law enforcement for their work with my office to bring these defendants to justice.” 

As alleged in the Indictment, from at least in or about 2023 through at least in or about 2025, the defendants, led by Trejo and Garner, operated the War Room, a criminal enterprise responsible for generating fake ride data used to support millions of dollars in fraudulent reimbursement claims to Medicaid for methadone clinic transportation services. The defendants operated out of an office in Trejo’s residence they referred to as the “War Room,” and engaged in, among other things, criminal acts involving wire fraud, healthcare fraud, violations of the Anti-Kickback Statute, narcotics distribution, robbery, firearms use, and money laundering.

To obfuscate their criminal activity, the defendants operated the War Room under the guise of a legitimate charity they called the “Forward Foundation.” In reality, the Forward Foundation was a front for the criminal activities of the War Room. An organizational chart drawn on a white board located inside Trejo’s residence, depicted below, identified each defendant’s nominal role. Trejo, identified as “Lou,” is the “CEO.”  Garner, identified as “KG,” is the “COO.” Stevenson, identified as “Bazz,” is an “outreach member m[ana]g[e]r.”  Belis, identified as “Erihk,” is “Vice President.”

To generate fake ride data to support fraudulent Medicaid claims, the defendants recruited Medicaid-eligible patients from methadone clinics located in the Bronx and Manhattan to sign up for medical transportation rides that are reimbursable by Medicaid, but which were not actually provided to the patients. The defendants entered the patients’ names and information into cellphones equipped with a ride-tracking application meant to be used by drivers to log actual rides. Members of the War Room then used the cellphones to log rides for the patients without providing any actual transportation services. To cover up the fact that the ride data was fabricated, the defendants used a GPS “spoofing” application to falsify the GPS coordinates associated with the pickup and drop-off locations, to make the location data appear as if the rides had been provided. In exchange for the use of the Medicaid patients’ enrollment information, the defendants paid the patients, who were meant to be receiving taxpayer-funded addiction treatment, weekly kickbacks in cash and drugs, including fentanyl and heroin.

Using these methods, the War Room’s fraud scheme generated data for hundreds of fake rides per week, which were provided to various collusive New York-area transportation companies, which in turn submitted the fake data to Medicaid to justify the fraudulent claims. The defendants were compensated by the transportation companies for whom they generated fake ride data and then laundered the proceeds to conceal their source and nature. The War Room’s fake rides scheme generated millions of dollars in fraudulent Medicaid claims for the transportation companies. For example, from in or about 2023 through in or about 2025, three transportation companies that made direct payments to the War Room collectively submitted over $12 million in “unmatched” Medicaid claims — that is, claims for medical transportation services for which no medical provider submitted corresponding claims reflecting actual medical services provided.

Multiple fraud rings competed for the same patients at the same methadone clinics. To protect the War Room’s profits and expand their reach, Trejo and Garner directed other members of the War Room to commit a home invasion robbery against the leader of a rival Medicaid fraud ring (Victim-1) at Victim-1’s home in Teaneck, New Jersey, believing that Victim‑1 kept millions of dollars in cash fraud proceeds and drugs inside his home. On or about Jan. 12, 2024, at the direction of Trejo and Garner, members of the War Room committed the violent home robbery. Masked and armed with a gun, members and associates of the War Room entered Victim-1’s residence while others waited outside as lookouts. Inside, the robbers used zip ties to tie up the occupants of the residence, including Victim‑1, pistol-whipped one of the occupants, intentionally cut Victim-1’s hands, and held the victims at gunpoint for multiple hours. The robbery crew did not find the large stash of cash or drugs that Garner and Trejo expected but fled with approximately $25,000 in cash and other assorted items.

A chart identifying the names, ages, charges, and maximum penalties for the defendants, each of whom resides in the Bronx, is set forth below.

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

This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy, and Patrick J. Gallagher for the Southern District of New York are in charge of the prosecution.

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Louis Trejo (43)

Kenneth Garner (48)

Mandatory minimum of seven years in prison

Maximum sentence of life in prison

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General of the Justice Department’s National Fraud Enforcement Division, Colin M. McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), Naomi D. Gruchacz, Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, and Comptroller for the Office of the New York State Comptroller, Thomas P. DiNapoli, announced today the unsealing of a nine-count Indictment charging LOUIS TREJO, a/k/a “Machete,” KENNETH GARNER, a/k/a “KG,” HAROLD STEVENSON, a/k/a “Bazz,” and ERIHK BELIS, a/k/a “Eddie,” with racketeering, violence in aid of racketeering, firearms, fraud, narcotics, and money laundering offenses for their roles in a wide ranging racketeering conspiracy involving the fabrication of transportation data used to support over at least $12 million of fraudulent Medicaid claims.  The defendants, members of a Bronx-based racketeering organization known as the “War Room,” logged fake rides for Medicaid patients to and from methadone clinics in the Bronx, paid recurring kickbacks to Medicaid patients in cash and drugs, and laundered millions of dollars in fraud proceeds obtained from the scheme.  To protect and expand their racketeering conspiracy, TREJO, GARNER, and other members of the War Room also engaged in violence against their rivals, including a January 12, 2024, armed home invasion robbery of the leader of a rival fraud ring in Teaneck, New Jersey.  TREJO, GARNER, AND BELIS were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  STEVENSON remains at large.  The case is assigned to District Judge John G. Koeltl.

“As alleged, members of the War Room perpetrated a massive fraud scheme that preyed upon the addiction of vulnerable Medicaid patients, defrauded a vital federal healthcare program, and caused over $12 million in losses to American taxpayers,” said U.S. Attorney Jamie McDonald.  “To protect and grow their scheme, War Room members allegedly peddled deadly drugs, committed an armed robbery against a rival fraud ring, and laundered their profits.  Today’s arrests dismantled the War Room’s racketeering operation and demonstrate that we will relentlessly pursue those who defraud federal benefit programs and endanger our communities through drugs and violence.”

“Today’s allegations underscore the troubling connection between benefits fraud and violent criminal networks,” said Assistant Attorney General Colin M. McDonald.  “As charged, the defendants are accused of targeting vulnerable patients, defrauding a critical healthcare program, and turning to violence to protect their fraudulent scheme.  I commend the prosecutors and agents of the Southern District of New York for their dedicated work in bringing these serious allegations forward.”

“These defendants are accused of masterminding a brazen scheme built on greed and exploitation, turning Medicaid-funded addiction treatment transportation into a multimillion-dollar criminal pipeline through fake ride data, GPS spoofing, kickbacks, narcotics, and money laundering,” said HSI Acting Special Agent in Charge Pete Gizas.  “Far from a victimless fraud, this alleged racketeering operation exploited vulnerable patients seeking treatment, stole from a taxpayer-funded healthcare program, and injected narcotics and violence into the criminal enterprise.  When their profits were threatened, members of the ‘War Room’ allegedly escalated to armed violence, including with a home invasion during which victims were restrained, assaulted, cut, and held at gunpoint.  As a co-leader of the Homeland Security Task Force, HSI New York will continue working relentlessly with our partners to expose violent fraud enterprises, disrupt their financial networks, and hold alleged perpetrators accountable.”

“The alleged scheme exploited individuals seeking addiction treatment and diverted millions in federal health care funds,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz.  “This investigation highlights our commitment to working with Homeland Security Investigations and other law enforcement partners to pursue fraudsters who undermine the Medicaid program and the needs of its enrollees.”

“Today’s arrests send a clear message: exploiting Medicaid for personal gain will not be tolerated,” said USPIS Inspector in Charge Ketty Larco-Ward.  “These individuals allegedly stole millions from a program designed to protect some of our most vulnerable citizens, and in doing so, betrayed the trust of the public.  Postal Inspectors will defend against all types of fraudsters, and I commend the hard work and partnership of our federal and state partners to ensure all are held fully accountable under the law.”

“These defendants allegedly engaged in a systematic fabrication of data and kickbacks to steal over $12 million at the expense of New Yorkers in need,” said New York State Comptroller Thomas P. DiNapoli.  “Medicaid is a vital program, and my office will continue to work with law enforcement to hold people who try to defraud it accountable.  I thank the United States Attorney and federal law enforcement for their work with my office to bring these defendants to justice.” 

As alleged in the Indictment:(1)

From at least in or about 2023 through at least in or about 2025, the defendants, led by TREJO and GARNER, operated the War Room, a criminal enterprise responsible for generating fake ride data used to support millions of dollars in fraudulent reimbursement claims to Medicaid for methadone clinic transportation services.  The defendants operated out of an office in TREJO’s residence they referred to as the “War Room,” and engaged in, among other things, criminal acts involving wire fraud, healthcare fraud, violations of the Anti-Kickback Statute, narcotics distribution, robbery, firearms use, and money laundering. 

To obfuscate their criminal activity, the defendants operated the War Room under the guise of a legitimate charity they called the “Forward Foundation.”  In reality, the Forward Foundation was a front for the criminal activities of the War Room.  An organizational chart drawn on a white board located inside TREJO’s residence, depicted below, identified each defendant’s nominal role.  TREJO, identified as “Lou,” is the “CEO.” GARNER, identified as “KG,” is the “COO.”  STEVENSON, identified as “Bazz,” is an “outreach member m[ana]g[e]r.”  BELIS, identified as “Erihk,” is “Vice President.” 

To generate fake ride data to support fraudulent Medicaid claims, the defendants recruited Medicaid-eligible patients from methadone clinics located in the Bronx and Manhattan to sign up for medical transportation rides that are reimbursable by Medicaid, but which were not actually provided to the patients.  The defendants entered the patients’ names and information into cellphones equipped with a ride-tracking application meant to be used by drivers to log actual rides. Members of the War Room then used the cellphones to log rides for the patients without providing any actual transportation services.  To cover up the fact that the ride data was fabricated, the defendants used a GPS “spoofing” application to falsify the GPS coordinates associated with the pickup and drop-off locations, to make the location data appear as if the rides had been provided.  In exchange for the use of the Medicaid patients’ enrollment information, the defendants paid the patients, who were meant to be receiving taxpayer-funded addiction treatment, weekly kickbacks in cash and drugs, including fentanyl and heroin. 

Using these methods, the War Room’s fraud scheme generated data for hundreds of fake rides per week, which were provided to various collusive New York-area transportation companies, which in turn submitted the fake data to Medicaid to justify the fraudulent claims.  The defendants were compensated by the transportation companies for whom they generated fake ride data and then laundered the proceeds to conceal their source and nature.  The War Room’s fake rides scheme generated millions of dollars in fraudulent Medicaid claims for the transportation companies.  For example, from in or about 2023 through in or about 2025, three transportation companies that made direct payments to the War Room collectively submitted over $12 million in “unmatched” Medicaid claims—that is, claims for medical transportation services for which no medical provider submitted corresponding claims reflecting actual medical services provided.

Multiple fraud rings competed for the same patients at the same methadone clinics.  To protect the War Room’s profits and expand their reach, TREJO and GARNER directed other members of the War Room to commit a home invasion robbery against the leader of a rival Medicaid fraud ring (“Victim-1”) at Victim-1’s home in Teaneck, New Jersey, believing that Victim‑1 kept millions of dollars in cash fraud proceeds and drugs inside his home.  On or about January 12, 2024, at the direction of TREJO and GARNER, members of the War Room committed the violent home robbery.  Masked and armed with a gun, members and associates of the War Room entered Victim-1’s residence while others waited outside as lookouts.  Inside, the robbers used zip ties to tie up the occupants of the residence, including Victim‑1, pistol-whipped one of the occupants, intentionally cut Victim-1’s hands, and held the victims at gunpoint for multiple hours.  The robbery crew did not find the large stash of cash or drugs that GARNER and TREJO expected but fled with approximately $25,000 in cash and other assorted items. 

*                *                *

A chart identifying the names, ages, charges, and maximum penalties for the defendants, each of whom resides in the Bronx, is set forth below.  

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

Mr. McDonald praised the outstanding investigative work of Homeland Security Investigations, the Office of the Inspector General of the Department of Health and Human Services, the U.S. Postal Inspection Service, the New York City Police Department, the Office of the New York State Comptroller, and the Bergen County, New Jersey Prosecutor’s Office (“BCPO”), the BCPO Special Investigations Squad, the Teaneck, New Jersey Police Department, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy, and Patrick J. Gallagher are in charge of the prosecution.

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

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

LOUIS TREJO (43)

KENNETH GARNER (48)

Mandatory minimum of seven years in prison

Maximum sentence of life in prison

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that CHRISTINE HUNSICKER was sentenced to five years in prison for securities fraud.  HUNSICKER previously pled guilty to one count of securities fraud in connection with a scheme to defraud hundreds of investors in CaaStle, a retail-technology business before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.

“Christine Hunsicker perpetrated a large-scale fraud at CaaStle, falsely promoting her fashion-tech startup as a billion-dollar success when it was a counterfeit,” said U.S. Attorney Jamie McDonald.  “Using forged documents and fabricated audits, Hunsicker stole $300 million from unwitting investors who believed her falsehoods.  Besides harming investors in private markets, fraud in the startup space stunts growth and dims innovation.  The women and men of this Office will work tirelessly to protect those investors and ensure integrity in those markets, so that innovation can thrive, and those who seek to undermine the integrity of those markets will face justice.”

According to the Indictment and other information in the public record:

Between 2019 and 2025, HUNSICKER, a well-known entrepreneur and businessperson in the fashion-tech industry, orchestrated a massive fraud scheme in which she duped investors into giving her nearly $300 million for CaaStle, a retail technology company she founded and led as CEO.  While promoting CaaStle as a rapidly growing business valued at more than $1.4 billion, HUNSICKER knew that CaaStle was in financial distress with dwindling cash and significant expenses.  To raise capital for CaaStle’s operations, HUNSICKER provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that grossly overstated CaaStle’s operating profit, revenue, and available cash.  She also misrepresented to investors that their funds would be used to purchase discounted shares from existing shareholders who needed liquidity, when in fact she fabricated the existence of those shareholders and used the money as new capital for CaaStle while concealing the company’s cash needs. 

When confronted by an audit firm in October 2023 about transmitting a fake audit to an investor, HUNSICKER lied, falsely claiming that she had created the fake audit in connection with a lecture she gave at Princeton University, and that sending the audit to the investor had been a one-time error.  She later repaid that investor to prevent the public disclosure of her fraud and continued furnishing fake financials to investors.  In 2024, HUNSICKER also falsified the signatures of two prominent Board directors to make it appear that the Board had authorized the grant of stock options to another investor, raising more than $20 million for CaaStle. 

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

*                *                *

In addition to the prison term, HUNSCIKER, 49, of Lafayette, New Jersey, was sentenced to three years of supervised release.  HUNSICKER was ordered to pay forfeiture and restitution to her victims, each in the amount of $283,291,940.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JESSE MITCHELL with securities fraud.  The charges arise from an alleged insider trading scheme in which MITCHELL traded on misappropriated material nonpublic information ahead of public earnings announcements by his then-employer, The Trade Desk (“TTD”) and, as a result, generated more than $338,000 in profits.  MITCHELL was arrested today and will be presented in the U.S. District Court for the Central District of California.  The case has been assigned to U.S. District Judge Jennifer H. Rearden. 

“Jesse Mitchell allegedly stole confidential information from his employer and made more than $300,000 in illegal trades,” said U.S. Attorney Jamie McDonald.  “Confidential information is not a personal profit opportunity, and today’s unsealing of the indictment makes that clear.  Importantly, insider trading not only harms investors and the companies from which the information was misappropriated, it undermines the public’s trust in our markets.  This Office will continue to combat insider trading in order to vindicate victims’ rights and ensure the integrity of our markets.”

“Jesse Mitchell’s alleged insider trading is fundamentally wrong,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “FBI New York's Financial Crimes Task Force is working every day to identify and investigate financial crimes, including insider trading.  In alignment with the Vice President’s Fraud Task Force, FBI New York will continue working diligently to protect the public from fraud in all its forms.”

According to the allegations in the Indictment:(1)

Around June 2024, MITCHELL began working at TTD, a publicly-traded multinational technology company, as a Senior Director in TTD’s financial planning and analysis team.  In that role, MITCHELL had access to TTD’s confidential financial information and results, including revenue and earnings results and other financial metrics, before they were publicly disclosed.  By virtue of his employment, MITCHELL owed a duty of trust and confidence to TTD and was prohibited from misusing or disclosing TTD’s confidential information for personal gain.  MITCHELL was also prohibited by company policy from trading in any security while in possession of material nonpublic information relating to that security; trading in TTD securities during quarterly “blackout” periods preceding earnings announcements; and trading TTD options, including put or call options.

In August 2024, TTD published financial results for the second quarter of 2024 that exceeded its previously disclosed revenue estimate.  Following the announcement, TTD’s stock price increased approximately 12%.  During a trading blackout period in advance of TTD’s earnings announcement, MITCHELL purchased TTD stock.  At the time, MITCHELL was aware of TTD’s nonpublic quarterly financial results.  After TTD’s public earnings announcement, MITCHELL sold the shares, netting approximately $19,696.11 in profits from his illegal trading.

In February 2025, TTD published financial results for the fourth quarter of 2024 that fell below its previously disclosed revenue estimate.  This marked the first time TTD had missed revenue expectations since going public in 2016.  Following the announcement, TTD’s stock price dropped approximately 30%.  During a trading blackout period in advance of TTD’s earnings announcement, MITCHELL purchased TTD put options.  At the time, MITCHELL was aware of TTD’s nonpublic quarterly financial results.  After TTD’s public earnings announcement MITCHELL sold all his TTD put options, realizing approximately $318,362.45 in profits from his illegal trading.

*                *                *

MITCHELL, 48, of Ventura, CA, is charged with one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.

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

Mr. McDonald thanked the FBI.  Mr. McDonald further thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (“FBI”), Brett Skiles, announced today the unsealing of an Indictment charging DAVID PIDGEON with securities fraud stemming from insider trading based on misappropriated financial information belonging to his employer.  PIDGEON was arrested today and will be presented in Boston, Massachusetts.  The case has been assigned to U.S. District Judge Jennifer H. Reardon.

“As alleged in the Indictment, less than one year ago, a senior official at a public company engaged in insider trading,” said U.S. Attorney Jamie McDonald.  “When corporate insiders misuse confidential information for personal gain, they undermine the integrity of our financial system.  Today’s charges—and in particular the speed with which we were able to bring them—reflect our commitment to holding accountable anyone who chooses to engage in this kind of misconduct.  We will continue to work closely with our partners at the FBI and the SEC to safeguard our markets and pursue those who violate the law.” 

“Today’s charges underscore a fundamental principle: when individuals exploit confidential corporate information for personal gain, they undermine the integrity of our financial markets,” said FBI Special Agent in Charge Brett Skiles.  “The FBI is committed to protecting investors, maintaining a free and fair market, and holding accountable anyone who attempts to profit through deception and unlawful insider trading.  We will continue to work closely with our partners to ensure that those who violate these principles are brought to justice.”

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

In or about October 2025, PIDGEON, then Senior Director of Operations at Treace Medical Concepts, Inc. (“TMCI”), obtained material nonpublic information about TMCI’s lower sales volume and difficulty meeting its financial projections.  Days before TMCI’s third quarter earnings announcement, PIDGEON sold shares of other issuers and used the proceeds to purchase short-term put options in TMCI stock.  PIDGEON’s trades occurred during a company-wide blackout period when TMCI employees were prohibited from trading in TMCI securities, and in violation of TMCI’s policies, which prohibited employees from trading in TMCI options at any time.  On November 6, 2025, following market close, TMCI announced its third quarter financial results, which included a net loss of $16.3 million and downwardly adjusted 2025 revenue projections.  The following day, TMCI’s stock price dropped approximately 28%. That same day, Pidgeon sold all of his TMCI options.

*                *                *

PIDGEON, 40, of Jacksonville, Florida, is charged with one count of securities fraud under Title 15 of the United States Code, which carries a maximum sentence of 20 years in prison, and one count of securities fraud under Title 18 of the United States Code, which carries a maximum sentence of 25 years in prison.

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

Mr. McDonald thanked the FBI.  Mr. McDonald further thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.  

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that ERIC BOOTHE was arrested and charged as the second participant in an August 29, 2025, gunpoint robbery of a gas station in Mount Vernon.  BOOTHE was presented today before Chief U.S. Magistrate Judge Judith C. McCarthy and ordered detained pending trial.

“Last summer, Mount Vernon residents’ morning routines came to a halt when two individuals robbed a gas station at gunpoint and fled, kicking off a manhunt across the region,” said U.S. Attorney Jamie McDonald.  “One of the men, Jamaire Robertson, allegedly shot at NYPD officers while in flight.  Robertson was quickly identified, arrested, and charged within hours, but Eric Boothe allegedly fled into the Bronx and tried to disappear, eventually relocating to rural Pennsylvania.  Thanks to the FBI and our White Plains prosecutors, Boothe’s getaway has ended, and he will now answer to our federal Complaint in court.”

“Eric Boothe spent months attempting to evade accountability following an alleged gas station robbery in August 2025,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Thanks to the relentless efforts of FBI investigators, and our Summer Heat 2.0 initiative, he was located, apprehended, and will now face consequences for his actions.  No matter how long someone runs, we remain committed to pursuing those who endanger our communities.”

According to the Complaint unsealed in White Plains federal court:(1) 

After spending much of the prior evening traveling in tandem through the Bronx and Mount Vernon, BOOTHE and Jamaire Robertson parked Robertson’s car near Robertson’s apartment in the Bronx at around 5:10 a.m. on August 29, 2025, donned masks, hoods, and gloves, and set off on foot together toward a gas station in nearby Mount Vernon.  At approximately 5:29 a.m., BOOTHE and Robertson, each brandishing a handgun, violently robbed the gas station attendant at gunpoint: 

Following the robbery, the two suspects ran south on foot and eventually separated.  Robertson fled down a residential street in Mount Vernon near its border with the Bronx, where he discharged his firearm at New York City Police Department officers attempting to approach him.  Robertson was arrested that afternoon, but BOOTHE fled deeper into the Bronx, ceased use of his phone, and altered his patterns of financial and social media activity, eventually relocating to the Poconos in Pennsylvania.  The FBI’s investigation led to a new phone used by BOOTHE, registered in the name of a third party, and to a pizzeria frequented by BOOTHE in the vicinity of Tobyhanna, Pennsylvania, near where BOOTHE was eventually arrested.

*                *                *

BOOTHE, 40, of the Bronx, New York, is charged with conspiracy to commit Hobbs Act robbery and Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.  BOOTHE is also charged with possessing and brandishing a firearm during and in relation to a crime of violence.  Because BOOTHE was convicted in 2016 of the same firearms crime, he now faces a mandatory minimum sentence of 25 years in prison, which must be served consecutive to any other prison term imposed.  Federal robbery and firearms charges against Jamaire Robertson remain pending. 

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. McDonald praised the outstanding investigative work of the FBI’s Westchester Safe Streets Task Force, as well as the NYPD and the Mount Vernon Police Department.  Mr. McDonald also thanked the FBI’s Philadelphia Field Office and the U.S. Attorney’s Office for the Middle District of Pennsylvania for their assistance in apprehending the defendant.

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

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

1. ^

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

The Department of Justice announced today that Larry Montes was charged with two counts of committing hate crimes in connection with his race- and religious-based assaults of a congregant and a security guard during a Shabbat service at a synagogue in Manhattan on Aug. 14, as well as one count of destruction of religious property resulting in bodily injury. Montes is currently in state custody and will be transported to and presented in Manhattan federal court at a later date to face the federal charges filed in the Southern District of New York.

“These charges serve as notice that the Department of Justice will intervene to protect the public in the face of antisemitic and racially motivated attacks,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Civil Rights Division stands ready to combat assaults against worshippers and houses of worship. Americans’ fundamental right to worship without fear of bias-motivated violence is sacrosanct and must be protected at all costs.”

“Today, the Southern District of New York filed federal charges against Larry Montes for his violent, hate‑motivated attack during Shabbat services at Central Synagogue on August 14, in which he disrupted worship, struck a congregant, damaged synagogue property, and spat on and headbutted a security guard,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “An attack on a house of worship is an attack on the fundamental right to practice one’s faith safely, and our Office will work tirelessly to ensure the defendant is held fully accountable as we continue to protect all communities from hate‑driven violence.”

“Larry Montes’ targeted acts of violence on a congregant, security guard, and synagogue during a Shabbat service are deeply disturbing,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI New York Field Office. “The FBI condemns any incident driven by bias or hate, and we commend the swift actions of the security personnel and first responders.  Hate crimes have no place in New York, and we remain steadfast in protecting every community.”

“As alleged in the complaint, Larry Montes brought violence to Jewish New Yorkers engaged in prayer when he disrupted Shabbat services at Central Synagogue in Manhattan,” said NYPD Commissioner Jessica S. Tisch. “I am grateful that an NYPD sergeant was there to take him into custody, and for the ongoing efforts of our Hate Crimes Task Force and our federal partners to hold Montes accountable for his alleged crimes.”

As alleged in the Complaint, on Aug. 14, at a Friday night Shabbat service attended by approximately 375 people at a synagogue in Manhattan, Montes stood up and began shouting and then physically struck and caused damage to two ceremonial silver candlesticks with gold accents. The head of security at the synagogue proceeded to attempt to remove Montes from the area where the service was taking place, during which Montes stated, in sum and substance, and among other things, “fuck you people” and “I don’t fuck with you people.” Montes also punched with a closed fist a woman (Victim-1) who was attending services at the synagogue and, later, while being handcuffed by security guards and law enforcement, looked at one of the security guards (Victim-2), who is a Black man, and stated, in sum and substance, “fuck you [n-word].” He then spat in Victim-2’s face and headbutted Victim-2 near Victim-2’s left eye socket. Montes also stated, in sum and substance, that he planned to return to the synagogue on a later date. 

During a recorded, Mirandized post-arrest interview, Montes stated, in substance and in part, “fuck the Jews.  . . . It’s racial” and “I will never affiliate with no filthy fucking synagogues, either here or in fucking Israel.” Montes also stated about his actions at the synagogue that “it’s all a racial thing” and that it was “all religious motivated.” 

Montes, 46, of the Bronx, New York, is charged with two counts of committing hate crimes, each of which carries a maximum penalty of 10 years in prison, and one count of damage to religious property resulting in bodily injury, which carries a maximum penalty of 20 years in prison.

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

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with consultation from the Civil Rights Division of the Criminal Section. Assistant U.S. Attorney Meredith C. Foster for the Southern District of New York is in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the filing of a Superseding Indictment charging MATTHEW SPATOLA with distribution of narcotics resulting in death in connection with the June 26, 2026, overdose death of a resident (“Victim-1”) of a Manhattan building providing transitional and emergency shelter to homeless individuals, as well as distribution and possession with intent to distribute crack cocaine, heroin, and fentanyl. SPATOLA is detained, awaiting trial before U.S. District Judge Ronnie Abrams.

“As alleged, Matthew Spatola provided lethal narcotics to a woman in the very building where she was living to escape addiction,” said U.S. Attorney Jamie McDonald.  “But even her death did not stop Spatola from allegedly continuing to deal drugs, exposing particularly vulnerable neighbors fighting for their own recovery to the same life-threatening poison that killed her. If you deal drugs inside a transitional facility, you are dealing death to the same people trying to fight it, and you will be held accountable.”

“As alleged in the complaint, Matthew Spatola callously preyed on individuals at a transitional housing facility in Manhattan,” said NYPD Commissioner Jessica S. Tisch.  “The defendant sold the drugs that resulted in one resident’s death and continued to distribute them even after her demise, caring more for money than human life.  This individual is now being held accountable and can no longer sell his poison on our streets.  I thank our investigators and the U.S. Attorney’s Office for the Southern District of New York for bringing dangerous drug peddlers to justice.”     

As alleged in the Superseding Indictment, other public filings, and during court proceedings:

On June 26, 2026, SPATOLA sold narcotics to Victim-1 in the building—which provides transitional and emergency shelter—where they both lived, causing her death.

Surveillance video shows that, on or about June 26, 2026, SPATOLA and Victim-1 were seen together, and that at approximately 9:00 a.m., SPATOLA handed Victim-1 narcotics.  SPATOLA returned to Victim-1’s room again that afternoon, briefly entering and exiting twice before leaving.  A short time later, Victim-1 was found dead in her room.  A glassine envelope and pipes recovered on or near her body tested positive for cocaine.

Rather than stop dealing, SPATOLA continued to distribute narcotics to other residents of the building in the days following Victim-1’s death.  On July 14, 2026, law enforcement executed search warrants on SPATOLA’s residence and person and recovered a substantial quantity of narcotics and narcotics distribution paraphernalia, which tested positive for crack cocaine, heroin, and fentanyl. 

*                *                *

SPATOLA, 37, of New York, New York, is charged with one count of distribution of narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of distribution and possession with intent to distribute narcotics, which carries a maximum sentence of 20 years in prison. 

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

Mr. McDonald praised the outstanding investigative work of the NYPD, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York. 

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Joe Zabel is 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.