Southern District of New York
Press releases recorded for this federal judicial district.
Bronx Man Charged with Committing Sex Trafficking, Coercion, and Enticement Crimes Involving Three Minor VictimsRead the Press Release
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.
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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.
U.S. Attorney Files Civil Fraud Suit Against Network of Companies for Fraudulently Obtaining COVID Relief MoneyRead the Press Release
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.
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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.
Six Defendants Charged with Million Dollar Rental Car and Identity Theft SchemeRead the Press Release
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.
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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.
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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.
Senior Executive Charged with Insider TradingRead the Press Release
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.
^
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.
Four Members of the “War Room” Charged in Connection with $12M Medicaid Fraud SchemeRead the Press Release
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.”
Organizational chart drawn on a white board located inside Trejo’s residenceTo 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.
CountDefendantsMinium & Maximum Penalties1. Racketeering ConspiracyLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of life in prison2. Assault with a Deadly Weapon in Aid of RacketeeringLouis Trejo (43)
Kenneth Garner (48)
Maximum sentence of 20 years in prison3. Firearms UseLouis Trejo (43)
Kenneth Garner (48)
Mandatory minimum of seven years in prison
Maximum sentence of life in prison
4. Conspiracy to Commit Wire Fraud & Health Care FraudLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of 20 years in prison5. Wire FraudLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of 20 years in prison6. Health Care FraudLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of 10 years in prison7. Conspiracy to Violate the Anti-Kickback StatuteLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of five years in prison8. Narcotics ConspiracyLouis Trejo (43)
Kenneth Garner (48)
Maximum sentence of 20 years in prison9. Money Laundering ConspiracyLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Maximum sentence of 20 years in prisonAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Members of the “War Room” Charged in Connection with $12 Million Medicaid Fraud SchemeRead the Press Release
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.
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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.
CountDefendantsMinium & Maximum PenaltiesLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of life in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
Maximum sentence of 20 years in prisonLOUIS 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)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of 10 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of five years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
Maximum sentence of 20 years in prison^
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.
Founder of Fashion Tech Company CaaStle Sentenced to Five Years in Prison for $300 Million Fraud SchemeRead the Press Release
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
Finance Director Charged with Insider TradingRead the Press Release
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.
^
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.
Senior Director of Operations Charged with Insider TradingRead the Press Release
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.
^
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.
Second Suspect in August 2025 Mount Vernon Gunpoint Robbery Located in Poconos, Arrested, and ChargedRead the Press Release
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.
^
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.
New York City Man Charged with Federal Hate Crimes for Attack at Manhattan SynagogueRead the Press Release
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.
Manhattan Man Charged with Distributing Narcotics That Caused the Death of Resident at Transitional FacilityRead the Press Release
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.
Leaders and Members of Bronx Gang “Dub City” Sentenced for Multiple Shootings, Racketeering, Narcotics, Fraud, and Firearms OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, announced today that BRUCE SILVA, a/k/a “Brucie,” a leader of the Bronx gang “Dub City,” which was affiliated with the larger MacBallers street gang, was sentenced to 22 years in prison. On February 24, 2026, SILVA pled guilty to racketeering conspiracy and multiple firearms offenses in connection with shootings, one of which left the victim paralyzed, before U.S. District Judge Paul G. Gardephe, who imposed today’s sentence.
“For years, the members of the so-called ‘Dub City’ gang terrorized several Bronx neighborhoods in their claimed territory by repeatedly shooting at rivals and fellow gang members alike,” said U.S. Attorney Jamie McDonald. “The significant sentences imposed in this case serve to hold the leaders and members of this violent street gang accountable for their gun violence and other criminal activity. This Office will continue to work with our federal, state, and local partners to dismantle violent criminal organizations and protect the communities they prey upon through violence.”
According to the charging instruments, court filings, and statements made in court:
The “Dub City” gang was a criminal organization based in the Mt. Hope and Morris Heights sections of the Bronx, New York, whose members predominantly were also members of the larger MacBallers street gang. A map of Dub City’s claimed territory is below:
From 2019 until the defendants were arrested in April 2023, the Dub City gang members sold drugs, committed robberies, committed financial fraud, used guns, and committed numerous acts of violence in furtherance of the Dub City gang, including shootings against members of rival gangs and against other Dub City gang members. The violence committed by the defendants included shootings where innocent bystanders were hit. In one case, SILVA shot at an individual, causing permanent paralysis. In another case, co-defendant BRUCE MELVIN shot at a rival gang member, hitting an innocent bystander in the leg.
In total, the defendants were collectively convicted for their roles in eight separate shootings on Bronx streets between summer 2019 and summer 2022.
The following photographs depict Dub City members and co-defendants SILVA, MELVIN, and ELIJAH POUGH firing their weapons at rival gang members and others on Bronx streets:
In imposing today’s sentence, Judge Gardephe said that Silva poses a “clear and present danger to the community.”
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A chart containing the names and ages of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Mr. McDonald praised the outstanding investigative work of the New York City Police Department and Homeland Security Investigations, and also thanked the Bronx County District Attorney’s Office for its assistance.
This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Michael R. Herman, Jacob R. Fiddelman, and Matthew J. King are in charge of the prosecution.
Defendant
Age
Conviction
Sentence
BRUCE SILVA, a/k/a “Brucie,”30Racketeering conspiracy
Two counts of use, possession, and brandishing of a firearms in connection with an attempted assault with a dangerous weapon in aid of racketeering
Possession of ammunition after a felony conviction
22 years in prison;
3 years supervised release
BRUCE MELVIN, a/k/a “BG,”27Racketeering conspiracy
Two counts of use, possession, and brandishing of a firearms in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering
240 months in prison;
5 years supervised release
JORDAN BENNETT a/k/a “Billy Bandz,” a/k/a “J Bills,”32Racketeering conspiracy144 months
3 years supervised release
ELIJAH POUGH, a/k/a “Eli,”30Racketeering conspiracy
Use, possession, and brandishing, of a firearm in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering
120 months
5 years supervised release
SHADELL MCBRIDE, a/k/a “Deli,”31Racketeering conspiracy
Use and possession of a firearm in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering
120 months
5 years supervised release
JUSTIN BALLESTER, a/k/a “J-Gunz,”31Racketeering conspiracy60 months
3 years supervised release
ALZUBAIR SALEH, a/k/a “Sammy,”35Racketeering conspiracy51 months
3 years supervised release
GIOVANNI RODRIGUEZ, a/k/a “Karrot,”27Racketeering conspiracy36 months
3 years supervised release
GABRIEL VALDEZ, a/k/a “Wolf,”27Racketeering conspiracy48 months (including 20 months spent in New York state custody)
3 years supervised release
EMMANUEL PEREZ, a/k/a “Manny,” a/k/a “Haven,”26Racketeering conspiracy36 months
3 years supervised release
Bronx Man Charged with Federal Hate Crimes for Attack at Manhattan SynagogueRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for the U.S. Department of Justice’s Civil Rights Division, Harmeet K. Dhillon, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, 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 August 14, 2026, 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.
“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. “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.”
“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. “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.”
“Larry Montes’ targeted acts of violence on a congregant, security guard, and synagogue during a Shabbat service are deeply disturbing,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “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:(1)
On August 14, 2026, 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 sentence of 10 years in prison, and one count of damage to religious property resulting in bodily injury, which carries a maximum sentence 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.
Mr. McDonald praised the outstanding investigative work of the FBI and the NYPD for their assistance.
The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with consultation from the Criminal Section of the Civil Rights Division. Assistant U.S. Attorney Meredith C. Foster is in charge of the prosecution.
The charges contained in the Complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
^
As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
17 Iranians Charged with Conducting Massive Cyber Theft Campaign on Behalf of the Islamic Revolutionary Guard Corps and Other Iranian EntitiesRead the Press Release
A 14-count superseding (S2) indictment was unsealed today charging 17 members of the Mabna Institute, an Iran-based company that, since at least 2013, has conducted a coordinated campaign of cyber intrusions into computer systems for 144 U.S.-based universities, 178 foreign universities, at least 42 U.S.-based private sector companies, at least 11 foreign private sector companies, at least five U.S. federal and state government agencies, and at least two non-governmental organizations (NGOs). The Mabna Institute stole more than 31 terabytes of academic data and intellectual property from these universities, as well as the email accounts of employees at the private sector companies, government agencies, and NGOs. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s Islamic Revolutionary Guard Corps (IRGC), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients. Nine of the 17 defendants charged in the S2 indictment were previously charged in a 7-count indictment announced in March 2018. The case is assigned to U.S. District Judge Jesse M. Furman.
“The superseding indictment alleges that, at the behest of entities including the IRGC, these defendants hacked into universities and other research institutions worldwide, including the United States, stealing at least 31 terabytes of information and intellectual property of untold value,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division is committed to protecting the United States from such predators and will pursue those who perpetrate such crimes for as long as it takes to bring them to justice.”
“Today’s charges, which include eight additional defendants, reveal the broader network allegedly behind a sweeping, state-sponsored campaign to steal research and intellectual property from American universities, businesses, and government institutions,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “More than eight years after making the original indictment public, these charges make clear that the passage of time will not deter us from identifying and pursuing those who target the United States from abroad. Cyber operations have become a central instrument of national power, and attacks on American and allied institutions carry direct consequences for our security and economic strength. This office and our partners will continue to protect American innovation and pursue accountability for the individuals behind these attacks.”
“These defendants allegedly built and profited from a sprawling hacking-for-hire operation that targeted the intellectual property of American and allied universities, companies, and government agencies for the benefit of the Iranian government,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Today’s charges make clear to cyber adversaries everywhere: the FBI’s memory is long, and time will not blunt our resolve to pursue justice. The FBI will continue working with law enforcement and private sector partners to identify malicious cyber actors, disrupt their operations, and impose real cost on them, wherever they operate.”
According to the allegations contained in the S2 indictment:
Background on the Mabna Institute
Gholamreza Rafatnejad and Ehsan Mohammadi founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. The Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel, including Abdollah Karima, also known as “Vahid Karima,” Mostafa Sadeghi, Seyed Ali Mirkarmi, Mohammed Reza Sabahi, Roozbeh Sabahi, Abuzar Gohari Moqadam, Sajjad Tahmasebi, Saeid Houshyar, Behzad Mesri, also known as “Skote Vahshat,” Manouchehr Hashemloo, Keyvan Fayaz, also known as “Achilles,” also known as “The Joker,” also known as “bc.monster,” Amir Barati, Saber Shahbazi Ballojeh, Arman Kahzadian, and Mojtaba Galekuhi, also known as “Mojtaba Ghaleh Koui,” to conduct cyber intrusions to steal academic data, intellectual property, email inboxes, and other proprietary data. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.
Concurrent with the unsealing of the S2 indictment, the U.S. Department of State’s Rewards for Justice program (RFJ) is offering a reward of up to $10 million for information leading to the location of defendants Mesri, Galekuhi, Kahzadian, Fayaz, and Ballojeh. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act.
University Hacking Campaign
The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 178 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities. Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.
The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.
In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper). Megapaper was operated by Falinoos Company, a company controlled by Abdollah Karima, and Gigapaper was also affiliated with Karima. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.
Private Sector and Governmental and Non-Governmental Organization Hacking Campaigns
In addition to targeting and compromising universities, the defendants targeted and compromised and exfiltrated employee email accounts for at least five U.S. federal and state government agencies, at least 42 U.S. based private sector companies, at least approximately 11 foreign companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and various governmental and non-governmental organizations within the U.S., including the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.
Eight Additional Defendants Charged in the S2 Indictment
The S2 indictment charges eight additional defendants and describes continued efforts by the Mabna Institute to target American and international institutions. For example, the defendants targeted Home Box Office, Inc. (HBO), a media and entertainment company headquartered in New York, New York. Mesri was separately charged in United States v. Behzad Mesri, 17 Cr. 689 (AJN), with hacking into HBO’s computer systems, stealing proprietary data, and then attempting to extort HBO for approximately $6 million worth of Bitcoin, a form of digital currency. Houshyar, Hashemloo, Fayaz, Ballojeh, and Kahzadian were also directly involved in the hack of HBO’s systems along with Mesri.
Galekuhi, Fayaz, and Ballojeh participated in the Mabana Institute’s efforts to hack into private sector companies and at least two governmental entities — including through password spray attacks, obtaining unauthorized access to victim systems, and exfiltrating data — causing victims to suffer an excess of $20 million in costs to investigate and remediate the intrusions. Barati moreover was involved in tracking the progress of the spearphishing campaigns, exchanging login credentials for compromised accounts with other co-conspirators, creating targeting lists, conducting computer network reconnaissance, and crafting phishing messages.
Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion. More information about this RFJ reward offer is located on the Rewards for Justice website.
A chart containing the names, charges, and maximum penalties for the defendants is set forth below.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The National Security Division praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and thanked OFAC and the RFJ Program for their support. The Justice Department’s Office of International Affairs is providing critical assistance.
Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Connie L. Dang, and Adam Sowlati for the Southern District of New York lead the prosecution, with assistance provided by Trial Attorney Jacques Singer-Emery and former Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
COUNTCHARGEDEFENDANTSMAX. PENALTIES1Conspiracy to Commit Computer Intrusions (18 U.S.C. § 371)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, BALLOJEH, and KAHZADIANFive years in prison2Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, BALLOJEH, and KAHZADIAN20 years in prison3Computer Fraud – Unauthorized Access for Private Financial Gain (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), (c)(2)(B)(iii) and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, and KAHZADIANFive years in prison4Wire Fraud (18 U.S.C. §§ 1343 and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, BARATI, and KAHZADIAN20 years in prison5Computer Fraud – Unauthorized Access for Private Financial Gain (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), (c)(2)(B)(iii) and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, BARATI, and KAHZADIANFive years in prison6Wire Fraud (18 U.S.C. §§ 1343 and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, BARATI, and KAHZADIAN20 years in prison7Aggravated Identity Theft (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, BALLOJEH, and KAHZADIANMandatory sentence of two years in prison8Computer Fraud – Unauthorized Access for Private Financial Gain (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), (c)(2)(B)(iii), and 2; 18 U.S.C. § 3238)HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIANFive years in prison9Wire Fraud (18 U.S.C. §§ 1343 and 2; 18 U.S.C. § 3238)HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIAN20 years in prison10Aggravated Identity Theft (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2; 18 U.S.C. § 3238)HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIANMandatory sentence of two years in prison11Conspiracy to Commit Computer Intrusions (18 U.S.C. § 371; 18 U.S.C. § 3238)FAYAZ, BALLOJEH, and MOJTABA GALEKUHIFive years in prison12Computer Intrusion (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), and (c)(2)(B)(iii))FAYAZ, BALLOJEH, and MOJTABA GALEKUHIFive years in prison13Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349; 18 U.S.C. § 3238)FAYAZ, BALLOJEH, and MOJTABA GALEKUHI20 years in prison14Aggravated Identity Theft (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2; 18 U.S.C. § 3238)FAYAZ, BALLOJEH, and MOJTABA GALEKUHIMandatory sentence of two years in prison17 Iranians Charged with Conducting Massive Cyber Theft Campaign on Behalf of the Islamic Revolutionary Guard Corps and Other Iranian EntitiesRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for National Security, John A. Eisenberg, 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 14-count Superseding (“S2”) Indictment charging 17 members of the Mabna Institute, an Iran-based company that, since at least 2013, conducted a coordinated campaign of cyber intrusions into computer systems to 144 U.S.-based universities, 178 foreign universities, at least 42 U.S.-based private sector companies, at least 11 foreign private sector companies, at least five U.S. federal and state government agencies, and at least two non-governmental organizations (“NGOs”). Through the defendants’ activities, the Mabna Institute stole more than 31 terabytes of academic data and intellectual property from universities, and the email accounts of employees at private sector companies, government agencies, and non-governmental organizations. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (“Iran”) Islamic Revolutionary Guard Corps (“IRGC”), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients. Nine of the 17 defendants charged in the S2 Indictment were previously charged in a 7-count Indictment announced in March 2018. The case is assigned to U.S. District Judge Jesse M. Furman.
“Today’s charges show that neither sophistication nor geographic boundaries will deter us from protecting the national security of our country from those who target the United States from abroad,” said U.S. Attorney Jamie McDonald. “These charges, which include eight additional defendants, reveal the broader network allegedly behind a sweeping, state-sponsored campaign to steal research and intellectual property from American universities, businesses, and government institutions. Cyber operations have become a central instrument of national power, and attacks on American and allied institutions carry direct consequences for our security and economic strength. This Office and our partners will continue to protect American innovation and pursue accountability for the individuals behind these attacks.”
“The superseding indictment alleges that, at the behest of entities including the IRGC, these defendants hacked into universities and other research institutions worldwide, including the United States, stealing at least 31 terabytes of information and intellectual property of untold value,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division is committed to protecting the United States from such predators and will pursue those who perpetrate such crimes for as long as it takes to bring them to justice.”
“Coordinated cyber intrusions like those allegedly carried out by the 17 members of the Mabna Institute represent a serious threat to our national security,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Their campaign stole vast amounts of intellectual property and sensitive information, reinforcing the FBI's commitment to confront this activity head-on. Backed by the IRGC, this operation reflects a broader, organized effort to target U.S. institutions and global partners. No matter where these actors operate or how they attempt to hide, the FBI will persist in its efforts to disrupt this criminal activity.”
According to the allegations contained in the S2 Indictment:(1)
Background on the Mabna Institute
GHOLAMREZA RAFATNEJAD and EHSAN MOHAMMADI founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, SAJJAD TAHMASEBI, SAEID HOUSHYAR, BEHZAD MESRI, a/k/a “Skote Vahshat,” MANOUCHEHR HASHEMLOO, KEYVAN FAYAZ, a/k/a “Achilles,” a/k/a “The Joker,” a/k/a “bc.monster,” AMIR BARATI, SABER SHAHBAZI BALLOJEH, ARMAN KAHZADIAN, and MOJTABA GALEKUHI, a/k/a “Mojtaba Ghaleh Koui.” The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.
University Hacking Campaign
The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 178 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities. Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.
The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.
In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper). Megapaper was operated by Falinoos Company, a company controlled by ABDOLLAH KARIMA, a/k/a “Vahid Karima,” and Gigapaper was affiliated with KARIMA. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.
Private Sector and Governmental and Non-Governmental Organization Hacking Campaigns
In addition to targeting and compromising universities, the defendants targeted and compromised and exfiltrated employee email accounts for at least approximately at least five U.S. federal and state government agencies, at least 42 U.S. based private sector companies, at least approximately 11 foreign companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and various governmental and non-governmental organizations within the U.S., including the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.
Eight Additional Defendants Charged in the S2 Indictment
The S2 Indictment charges eight additional defendants and describes continued efforts by the Mabna Institute to target American and international institutions. For example, the defendants targeted Home Box Office, Inc. (“HBO”), a media and entertainment company headquartered in New York, New York. MESRI was separately charged in United States v. Behzad Mesri, 17 Cr. 689 (AJN), with hacking into HBO’s computer systems, stealing proprietary data, and then attempting to extort HBO for approximately $6 million worth of Bitcoin, a form of digital currency. HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIAN were also directly involved in the hack of HBO’s systems along with MESRI.
In addition, GALEKUHI, FAYAZ, and BALLOJEH participated in the Mabana Institute’s efforts to hack into private sector companies and at least two governmental entities—including through password spray attacks, obtaining unauthorized access to victim systems, and exfiltrating data—causing victims to have suffered from an excess of $20 million in costs to investigate and remediate the intrusions. BARATI moreover was involved in tracking the progress of the spearfishing campaigns, exchanging login credentials for compromised accounts with other co-conspirators, creating targeting lists, conducting computer network reconnaissance, and crafting spearfishing messages.
Concurrent with the unsealing of the S2 Indictment, the U.S. Department of State’s Rewards for Justice program (“RFJ”) is offering a reward of up to $10 million for information leading to the location of defendants MESRI, GALEKUHI, KAHZADIAN, FAYAZ, and BALLOJEH. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act.
Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion. More information about this RFJ reward offer is located on the Rewards for Justice website.
* * *
A chart containing the names, charges, and maximum penalties for the defendants is set forth below.
The maximum potential sentences in this case are prescribed by Congress and 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. He also thanked the Department of Justice’s Office of International Affairs. Mr. McDonald further thanked the RFJ Program for their support.
Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Connie L. Dang, and Adam Sowlati are in charge of the prosecution, with assistance provided by Trial Attorney Jacques Singer-Emery of the National Security Division’s National Security Cyber Section.
The charges contained in the S2 Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
COUNTCHARGEDEFENDANTSMAX. PENALTIES1Conspiracy to Commit Computer Intrusions (18 U.S.C. § 371)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, BALLOJEH, and KAHZADIANFive years in prison2Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, BALLOJEH, and KAHZADIAN20 years in prison3Computer Fraud – Unauthorized Access for Private Financial Gain (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), (c)(2)(B)(iii) and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, and KAHZADIANFive years in prison4Wire Fraud (18 U.S.C. §§ 1343 and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, BARATI, and KAHZADIAN20 years in prison5Computer Fraud – Unauthorized Access for Private Financial Gain (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), (c)(2)(B)(iii) and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, BARATI, and KAHZADIANFive years in prison6Wire Fraud (18 U.S.C. §§ 1343 and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, BARATI, and KAHZADIAN20 years in prison7Aggravated Identity Theft (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2)RAFATNEJAD, MOHAMMADI, KARIMA, SADEGHI, MIRKARIMI, SABAHI, SABAHI, MOQADAM, TAHMASEBI, HOUSHYAR, MESRI, HASHEMLOO, FAYAZ, BARATI, BALLOJEH, and KAHZADIANMandatory sentence of two years in prison8Computer Fraud – Unauthorized Access for Private Financial Gain (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), (c)(2)(B)(iii), and 2; 18 U.S.C. § 3238)HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIANFive years in prison9Wire Fraud (18 U.S.C. §§ 1343 and 2; 18 U.S.C. § 3238)HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIAN20 years in prison10Aggravated Identity Theft (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2; 18 U.S.C. § 3238)HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIANMandatory sentence of two years in prison11Conspiracy to Commit Computer Intrusions (18 U.S.C. § 371; 18 U.S.C. § 3238)FAYAZ, BALLOJEH, and MOJTABA GALEKUHIFive years in prison12Computer Intrusion (18 U.S.C. §§ 1030(a)(2), (c)(2)(B)(i), and (c)(2)(B)(iii))FAYAZ, BALLOJEH, and MOJTABA GALEKUHIFive years in prison13Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349; 18 U.S.C. § 3238)FAYAZ, BALLOJEH, and MOJTABA GALEKUHI20 years in prison14Aggravated Identity Theft (18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2; 18 U.S.C. § 3238)FAYAZ, BALLOJEH, and MOJTABA GALEKUHIMandatory sentence of two years in prison^
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.
Illinois Man Charged with Scheme to Impersonate Doctors and Make False Statements to Obtain GLP-1 MedicationsRead the Press Release
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 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, announced that RODNEY GREER, a/k/a “Christian Marchand,” appeared for arraignment today in connection with a four-count Indictment charging GREER with a scheme to impersonate doctors to obtain unauthorized prescription medications on behalf of individuals who paid him. GREER was arrested in Chicago on June 17, 2026. This case is assigned to U.S. District Judge Arun Subramanian.
“As alleged in the indictment, Rodney Greer impersonated and stole the identities of physicians and made false statements to pharmacies to obtain unauthorized prescription medications,” said U.S. Attorney Jamie McDonald. “This alleged conduct put scores of individuals in danger by allowing them to access prescription medication without the evaluation or approval of a licensed physician. The defendant now faces serious criminal charges for his alleged crimes.”
“The misuse of a physician's personally identifiable information to fraudulently obtain GLP-1 medications is a serious crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Rodney Greer's alleged scheme not only compromises sensitive data, but also abuses systems designed to support legitimate patient care. The FBI does not tolerate fraud in any form, and we will continue to investigate those who exploit the healthcare system and the providers.”
“The defendant in this case allegedly orchestrated an extensive scheme that generated hundreds of thousands of dollars in prescription claims paid by federal health care programs—claims that should never have been authorized,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz. “HHS‑OIG remains committed to working with our law enforcement partners to dismantle schemes that exploit federal health care programs and to hold accountable those who perpetrate such fraud.”
As alleged in the Indictment:(1)
Beginning in or about March 2023, GREER engaged in a scheme to impersonate physicians and make false statements to pharmacies and other third-party pharmacy benefit managers located throughout the United States in order to fraudulently obtain unauthorized prescription medications for customers in exchange for payments.
GREER acquired personal identifying information (“PII”) for individual physicians, including their names and their national provider identification number (“NPI”). GREER maintained handwritten lists containing physicians’ PII for approximately 60 physicians located in approximately 19 states.
Between on or about January 4, 2023, through on or about March 9, 2026, GREER called approximately 261 Pharmacies on approximately 3,329 occasions. Throughout that period, GREER used physicians’ PII and license information to impersonate them. GREER falsely claimed to be a health care provider; falsely identified himself as a physician; and provided other false information to receive GLP-1 and other prescription medications.
By fraudulently inducing the provision of unauthorized medications to individuals who had not obtained prior authorization or approval for these prescription medications, GREER facilitated the unauthorized redemption of hundreds of thousands of dollars in healthcare plan benefits to the individuals who paid GREER for his services.
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GREER, 51, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; and two counts of aggravated identity theft, each of which carries a mandatory term of two years in prison.
The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. McDonald praised the outstanding work of the FBI and HHS-OIG.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Brandon C. Thompson and Georgia V. Kostopoulos 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.
^
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.
Suspended Broker Sentenced to Two Years in Prison for Defrauding Social Media FollowersRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, announced that KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” was sentenced Tuesday, August 11, by U.S. District Judge Edgardo Ramos to two years in prison for investment adviser fraud.
“Kenneth Thom sold his social media followers the image of a successful trader when, in reality, he was a suspended broker,” said U.S. Attorney Jamie McDonald. “He took nearly $800,000 from investors who believed he would invest their money and instead spent it on luxury goods for himself. That deception ends with this federal prison sentence.”
According to the Indictment and other information in the public record:
In 2011, the Financial Industry Regulatory Authority (“FINRA”) suspended THOM’s broker registration after he failed to pay an arbitration award to an investor. THOM then reinvented himself online as a successful Wall Street trader. Using the monikers “K$” and “K Money,” THOM described himself as a financial “luminary” and “beacon of knowledge.” Through various social media channels, including Facebook, Instagram, and Twitch, THOM built an online following, to whom he sold trading lessons and daily text message alerts containing his trade suggestions.
Beginning in late 2023, THOM invited members of his Facebook group to participate in “shared accounts” that THOM would manage in exchange for half of the trading profits. THOM eventually raised nearly $800,000 from approximately 66 clients. Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including international travel, dining, and luxury goods. Of the $350,000 that THOM invested, he lost approximately 73% between approximately March 2024 and March 2025. Despite these massive losses, THOM regularly published updates in his Facebook group purporting to show dramatic gains in the shared accounts.
In January 2025, THOM changed the name of the Facebook group to “AYBABTU”—an acronym for the Internet meme “all your base are belong to us”—and stopped responding to his clients. At the time of his sentencing, THOM still maintained three luxury vehicles: a Maserati and two Porsches.
* * *
In addition to the prison term, THOM, 42, of Belleville, New Jersey, was sentenced to two years of supervised release. THOM was also ordered to pay forfeiture and restitution to his victims, each in the amount of $724,756.09.
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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Alexander Li is in charge of the prosecution.
Luigi Mangione Pleads Guilty in Connection with His Murder of United Healthcare CEO Brian ThompsonRead the Press Release
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 that LUIGI NICHOLAS MANGIONE pled guilty today before U.S. District Judge Margaret M. Garnett in connection with the December 4, 2024, murder of UnitedHealthcare Chief Executive Officer Brian Thompson in Midtown Manhattan. MANGIONE is scheduled to be sentenced on December 18, 2026.
“Today, Luigi Mangione admitted to stalking and murdering Brian Thompson on a Manhattan street in broad daylight,” said U.S. Attorney Jamie McDonald. “No grievance, political belief, or ideological cause can justify murder. With today’s guilty plea, Mangione is being held accountable for a heinous crime that claimed an innocent life and drew national attention. I commend the FBI, the NYPD, our law enforcement partners, and the dedicated prosecutors of this Office for their tireless work in securing this result.”
“Violence driven by such hostility toward opportunity and progress stands in sharp contrast to the values many Americans hold dear,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Rest assured, the FBI and our partners never stopped working to bring a killer to justice. While a plea has been entered in this case, we know the crime has not been erased. While nothing can ease the family's grief, we hope this brings them one step closer to closure.”
“Luigi Mangione carried out a ruthless act of violence that shocked this city, and today’s guilty plea is an important moment of accountability for this heinous crime,” said NYPD Commissioner Jessica S. Tisch. “This case demonstrated the extraordinary work of NYPD detectives, who relentlessly pursued every lead, pairing sophisticated technology with painstaking, old-fashioned police work to identify the suspect and build the case that brought us to this day. I want to thank all the members of the NYPD who worked tirelessly on this case, and the U.S. Attorney’s Office and the FBI for their partnership. And to those who idolize Mangione—violence is not a cause, murder is not a message, and a killer is not a hero.”
As alleged in the Indictment and other public filings in this case:
In the months leading up to December 4, 2024, MANGIONE developed and executed a plan to kill Brian Thompson. MANGIONE targeted Thompson because of his role as Chief Executive Officer of UnitedHealthcare. He traveled from outside New York to New York City specifically to carry out the attack. After arriving in the city more than a week before the murder, MANGIONE conducted surveillance on locations Thompson frequented, including the area surrounding the hotel where Thompson was staying and the venue hosting UnitedHealthcare’s investor conference.
On the morning of December 4, 2024, MANGIONE positioned himself near the conference venue in Midtown Manhattan and waited for Thompson to arrive. At approximately 6:45 a.m., MANGIONE approached Thompson from behind and shot him multiple times, causing Thompson’s death. MANGIONE then fled the scene.
Five days later, on December 9, 2024, law enforcement officers arrested MANGIONE in Altoona, Pennsylvania. At the time of his arrest, MANGIONE possessed a false driver’s license that he had previously used while in New York City. Law enforcement also recovered a firearm and other evidence linking him to the murder.
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MANGIONE, 28, of Maryland, pled guilty to one count of interstate stalking resulting in death, which carries a maximum potential sentence of life in prison, and one count of cyberstalking through use of interstate facilities resulting in death, which carries a maximum potential sentence of life 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 praised the outstanding investigative work of the FBI’s Violent Crime Task Force, the NYPD, the Altoona Police Department in Altoona, Pennsylvania, and the Special Agents of the U.S. Attorney’s Office.
The case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Dominic A. Gentile, Jun Xiang, Alexandra Messiter, and Thomas John Wright are in charge of the prosecution.
Large-Scale Costa Rican Cocaine Trafficker Extradited to the United StatesRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced today the unsealing of a Complaint and Indictment charging Gilbert Bell Fernandez, a/k/a “Macho Coca,” with conspiring to import cocaine into the United States. BELL FERNANDEZ was extradited from Costa Rica to the United States on the charges contained in the Indictment on August 13, 2026. BELL FERNANDEZ was presented today before U.S. Magistrate Judge Valerie Figueredo and ordered detained pending trial. The case has been assigned to U.S. District Judge Dale E. Ho.
“Our Office will not stop in our efforts to disrupt international drug operations like this one,” said U.S. Attorney Jamie McDonald. “For years, Gilbert Bell Fernandez allegedly sourced ton-quantities of cocaine from Colombia and transported this cocaine through Costa Rica for ultimate distribution in the United States and elsewhere. Bell Fernandez’s drug organization has lost its leader. Now, one of Costa Rica’s most notorious drug kingpins will face justice in an American courtroom for the harm he caused and sought to cause to this country. That is because of the dedicated efforts of our prosecutors and the Drug Enforcement Administration.”
“The extradition of Gilbert Bell Fernandez to the United States demonstrates DEA’s global reach and our commitment to holding drug traffickers accountable,” said DEA Administrator Terrance C. Cole. “Known as ‘Macho Coca,’ Bell Fernandez allegedly built a vast criminal network to move massive quantities of cocaine through Costa Rica for distribution in American communities, including New York City. DEA and our law enforcement partners will continue to pursue those who traffic poison into our country. We will not stop working to save American lives and we will not allow borders to shield criminals from justice.”
According to the charging documents and other public statements and records:(1)
Until his arrest, BELL FERNANDEZ was a major international narcotics trafficker and one of the most prolific cocaine traffickers in Costa Rica, which he helped develop into a major narcotics transshipment hub. BELL FERNANDEZ, who also owned and operated commercial fishing businesses in Costa Rica, controlled the distribution of ton-quantities of cocaine imported into and transiting through the Port of Limón, a seaport in the Limón Province of Costa Rica that has served as a major transshipment point for U.S.-bound cocaine.
In or about March 2022, members of BELL FERNANDEZ’s drug organization began discussions with a DEA confidential source (“CS-1”) about the purchase of large shipments of cocaine for CS-1’s purported customers in New York and elsewhere. During these initial conversations, BELL FERNANDEZ’s co-conspirators confirmed that BELL FERNANDEZ was the leader of the organization and could facilitate ton-quantity shipments of cocaine.
In the months that followed, CS-1 spoke directly with BELL FERNANDEZ on multiple occasions, in person and telephonically, to negotiate the terms of their cocaine distribution partnership. During those conversations, BELL FERNANDEZ confirmed, among other things, that he had the means to export ton-quantities of cocaine out of Costa Rica and that his organization could arrange for CS-1 to purchase a sample of the cocaine in advance of potential larger deals in the future.
After negotiating the purchase of this sample, in or around February 2023, with BELL FERNANDEZ’s approval, a member of BELL FERNANDEZ’s organization provided CS-1 with a sample of one kilogram of cocaine in Costa Rica in exchange for approximately $6,000 in United States currency. Following CS-1’s acquisition of the one-kilogram sample, CS-1 continued conversations with BELL FERNANDEZ and other members of BELL FERNANDEZ’s organization about the large-scale distribution partnership they had been negotiating. In early August 2023, CS-1 met again with BELL FERNANDEZ in Costa Rica to continue discussions about a potential cocaine deal. During that meeting, BELL FERNANDEZ discussed providing CS-1 with approximately 700 kilograms of cocaine and eventually transporting that cocaine to New York City.
In November 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned BELL FERNANDEZ. In announcing its sanctions, OFAC described BELL FERNANDEZ as being “known not only for the volume of drugs he moves but the violence with which he operates,” noting that BELL FERNANDEZ “has played a significant role in Costa Rica’s recent transformation into a major narcotics transit hub.” OFAC also noted that BELL FERNANDEZ was one of the “most prolific” and “most violent” traffickers in Limón.
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BELL FERNANDEZ, 63, of Costa Rica, is charged with conspiring to import over five kilograms of cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life 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 efforts of the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. McDonald also thanked the DEA’s Costa Rica Country Office, the Office of International Affairs of the Department of Justice’s Criminal Division, and Costa Rica’s Organismo de Investigación Judicial for their assistance in securing the arrest and extradition of BELL FERNANDEZ.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Katherine Cheng, Kaylan E. Lasky, and David J. Robles are in charge of the prosecution.
The charges contained in the Complaint and Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
^
As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Husband and Wife Sentenced to Life in Prison for Charges Related to 2020 Murder of Wife’s Ex-HusbandRead the Press Release
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 Superintendent of the New York State Police, Steven G. James, announced that on August 11 and August 13, 2026, JAMIE AND NICHOLAS ORSINI, respectively, were each sentenced to life in prison by U.S. District Judge Philip M. Halpern for one count of carjacking resulting in death and one count of participating in a conspiracy to commit carjacking in connection with the murder of JAMIE ORSINI’s ex-husband, Steven Kraft. The ORSINIs were convicted following a two-week trial in 2024 before Judge Halpern.
“Justice has now been served in this tragic case,” said U.S. Attorney Jamie McDonald. “In 2020, Jamie and Nicholas Orisini orchestrated a sophisticated scheme to kill Jamie Orsini’s ex-husband, Steven Kraft, and cover up their crime. Their actions took a life, devastated a family, and left behind years of unanswered questions. Kraft’s body has never been found, and for years, his family has been forced to live with the unimaginable pain and uncertainty of not knowing what happened to their loved one. While no sentence can undo the loss of a life or erase the suffering endured by Kraft’s family, these sentences bring the Kraft family a measure of finality and hold Jamie and Nicholas Orsini accountable for their horrific crimes. Our prosecutors and law enforcement partners will not stop seeking justice for victims, their families, and our communities.”
“The actions taken by Jamie and Nicholas Orsini that resulted in the death of Steven Kraft are a tragic and senseless crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Our hearts remain with the victims and their families as they confront this profound loss. The FBI is steadfast in its commitment to pursuing violent crime investigations and will continue working closely with the United States Attorney’s Office for the Southern District of New York. This investigation was the result of the dedicated work of the FBI Hudson Valley Safe Streets Task Force, whose local and state law enforcement partners play an essential role in bringing violent offenders to justice and ensuring the safety of our communities.
“This week’s sentencings send a strong message that prison is the only future for those who take the lives of others,” said New York State Police Superintendent Steven G. James. “We hope these sentencings bring a sense of closure that the defendants will never commit a heinous crime like this again. I commend the dedication of our members, partners at the US Attorney’s Office, and law enforcement colleagues for the justice served in this case.”
According to the Indictment, public court filings, and evidence presented at trial:
In 2020, JAMIE and NICHOLAS ORSINI plotted and executed the murder of JAMIE ORSINI’s ex-husband and the father to two of her children, Steven Kraft, as well as a sophisticated cover-up of their crime. The murder and cover-up involved, among other things, the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence. Before the murder, the ORSINIs purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, repeatedly practiced “dry runs” for how they would move Kraft’s car, and purchased a “burner phone” to use without law enforcement being able to trace the phone to them. On April 28, 2020, Kraft dropped his children off at the ORSINIs’ home in Beacon, New York. The ORSINIs killed Kraft in their home, taking his car and one of his cellphones. In order to make it look as if Kraft left their home in Beacon alive and was killed elsewhere, NICHOLAS ORSINI drove Kraft’s car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi, while JAMIE ORSINI sent text messages to and from NICHOLAS ORSINI’s phone—which he had left at home—to pretend that NICHOLAS ORSINI never left the house that night.
After the murder, the ORSINIs destroyed evidence of their crimes—including Kraft’s body—buying a new burner phone to use while repeatedly driving to and from upstate New York, as well as creating large homemade incinerators. JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, while hinting that perhaps something might have happened to Kraft had he gone to Newburgh after leaving her home.
If you believe you have information related to the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.
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JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were sentenced to life in prison to be followed by five year of supervised release on count one (carjacking resulting in death, in violation of 18 U.S.C. § 2119(3)) to run concurrently with five years in prison to be followed by three years of supervised release on count two (conspiracy to commit carjacking, in violation of 18 U.S.C. § 371).
Mr. McDonald praised the outstanding work of the FBI and the New York State Police, which also supported the prosecution through trial. He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kaiya Arroyo, Michael D. Maimin, and Kathryn P. Wheelock are in charge of the prosecution, with the assistance of Paralegal Specialist Shannon Becker.
11 Defendants Charged in Dismantling of Decade-Long Nationwide Marriage Fraud SchemeRead the Press Release
A two-count indictment was unsealed today charging 11 individuals with conspiring, over the course of more than a decade, to orchestrate more than 1,000 sham marriages to fraudulently obtain immigration status for foreign nationals, primarily citizens of the People’s Republic of China. Some individuals paid up to $100,000 per sham marriage, according to the indictment.
“This Department of Justice is rooting out fraud everywhere — including in our immigration system,” said Attorney General Todd Blanche. “The individuals who were arrested today allegedly orchestrated elaborate schemes to illegally obtain citizenship for foreign nationals through sham marriages. Schemes like this are a deliberate affront to the United States and our laws and will not be tolerated under the Trump Administration.”
“The defendants and their co-conspirators allegedly operated a nationwide and international, multimillion-dollar marriage fraud scheme, using participants to abuse United States immigration laws for their own profit,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “Today’s arrests have dismantled a central component of one of the largest marriage fraud schemes charged in United States history. As this prosecution shows, we and our law enforcement partners will relentlessly pursue those seeking to corrupt and exploit our nation’s lawful immigration system.”
“Anyone willing to lie, cheat or steal their way to legal immigration status is a direct threat to America's national security,” said Director Joseph B. Edlow of U.S. Citizenship and Immigration Services (USCIS). “U.S. Citizenship and Immigration Services is aggressively pursuing marriage fraud schemes and the criminal organizations and ringleaders who profit from them. USCIS will continue to expose fraud, defend the rule of law, and ensure immigration status is reserved for those who truly qualify.”
“As alleged, this decade-long scheme turned marriage fraud into an international business model arranging countless sham marriages and causing hundreds of fraudulent Green Card applications to be submitted to United States Citizenship and Immigration Services,” said Acting Executive Associate Director John Condon of Homeland Security Investigations (HSI). “Through the Homeland Security Task Force, HSI and our partners will continue to dismantle criminal networks that undermine the rule of law, exploit federal laws, and profit from fraud.”
The defendants were arrested this morning and are expected to be arraigned today. The defendants are:
- Amy Cheng, also known as “Amy Zhou,” 72, of Brooklyn, New York;
- Xiao Mei Chan, also known as “Carmen;” 64, of Queens, New York;
- Christine Lu, also known as “Lily,” 52, of Queens;
- Jing Yan Ye, also known as “Serene,” 43, of Staten Island, New York;
- Xiao Yan Chen, also known as “Anna,” 48, of Brooklyn;
- Gang Zheng, also known as “Michael” and “Mike,” 61, of Queens;
- Anthony Cheng, 47, of Staten Island;
- Michelle Duenas, 35, of Staten Island;
- Angela Duenas, 26, of Staten Island;
- Sigrid Cetino, 32, of Peekskill, New York; and
- Erika Johnson, 43, of Ossining, New York.
According to the indictment, from at least 2016 through July 2026, the defendants operated a nationwide and international marriage fraud network that arranged sham marriages between foreign nationals — primarily citizens of the People’s Republic of China — and United States citizens. Although based principally in New York City, the network allegedly arranged sham marriages throughout the United States and overseas including in Connecticut, Massachusetts, Pennsylvania, Kentucky, Tennessee, Georgia, Florida, Vanuatu, and China.
The network included facilitators who oversaw the scheme and identified foreign-national customers; recruiters who found willing United States citizens and helped ensure their continued participation; and assistants who prepared immigration paperwork and coordinated the submission of fraudulent lawful permanent residency (Green Card) applications to U.S. Citizenship and Immigration Services (USCIS). The scheme also relied on marriage officiants, attorneys, tax preparers, insurance providers, and other service providers.
Foreign nationals paid facilitators as much as approximately $100,000 for a sham marriage and assistance obtaining lawful permanent resident status. Facilitators, in turn, allegedly paid participating U.S. citizens up to about $30,000 — generally in installments tied to milestones in the Green Card application process — and paid recruiters commissions of as much as approximately $5,000 for each citizen recruited. In total, the defendants and their co-conspirators recruited hundreds of U.S. citizens to enter into sham marriages.
A foreign national (left), Anthony Cheng (center), and Erika Johnson (right) in a sham marriage ceremony on or about Jan. 15, 2025. From the indictment. Sigrid Cetino (left), Anthony Cheng (center), and a foreign national (right) in a sham marriage ceremony on or about Dec. 17, 2024. From the indictment.The defendants executed the fraud by pairing foreign nationals with U.S. citizens. The individuals would often meet for the first time immediately before obtaining a marriage license, arranging sham wedding ceremonies, and staging photographs designed to make those marriages appear legitimate. Some examples are below, including a photograph of a sham marriage that took place in China:
Photo from a sham wedding banquet, from the indictment. A couple’s staged photo, from the indictment.After the ceremonies, scheme participants manufactured evidence to make the marriages appear genuine, including by staging additional photographs, opening joint financial and utility accounts, filing joint tax returns, and obtaining insurance policies. The defendants and their co-conspirators then prepared and submitted Green Card applications containing materially false statements and, when interviews with USCIS were required, coached the marriage participants on how to conceal the true nature of their relationships and provide false answers to immigration officers.
The defendants caused at least hundreds of fraudulent Green Card applications and supporting documents to be submitted to USCIS. Based on the scale and duration of the scheme, the defendants’ network is believed to have collected tens of millions of dollars from foreign nationals seeking lawful permanent resident status.
At the time the defendants were arrested, law enforcement executed premises search warrants at multiple locations in New York including Sunset Park, Brooklyn, and Flushing, Queens.
The defendants have each been charged with one count of conspiracy to commit marriage fraud and immigration fraud, which, if convicted, carries a maximum penalty of five years in prison. The defendants have also each been charged with one count of conspiracy to encourage the unlawful residence of aliens in the United States, which, if convicted, carries a maximum penalty of 10 years in prison.
HSI, Hudson Valley; the FBI, Safe Streets Task Force; the USCIS’s Fraud Detection and National Security Directorate; the U.S. Army Criminal Investigation Division; and the Westchester County District Attorney’s Office are investigating this case.
Assistant U.S. Attorneys Jake Sidransky and Reyhan Watson for the Southern District of New York are prosecuting the case.
An indictment merely contains accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
11 Defendants Charged in Dismantling of Decade-Long Nationwide Marriage Fraud SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Attorney General for the United States, Todd Blanche, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Director of U.S. Citizenship and Immigration Services, Joseph B. Edlow, and Westchester County District Attorney, Susan Cacace, announced today the unsealing of a two-count Indictment charging AMY CHENG, a/k/a “Amy Zhou,” XIAO MEI CHAN, a/k/a “Carmen,” CHRISTINE LU, a/k/a “Lily,” JING YAN YE, a/k/a “Serene,” XIAO YAN CHEN, a/k/a “Anna,” GANG ZHENG, a/k/a “Michael,” a/k/a “Mike,” ANTHONY CHENG, MICHELLE DUENAS, ANGELA DUENAS, SIGRID CETINO, and ERIKA JOHNSON, with conspiring, over the course of more than a decade, to orchestrate more than 1,000 sham marriages to fraudulently obtain immigration status for foreign nationals, primarily citizens of the People’s Republic of China. 10 of the defendants were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.
“The defendants and their co-conspirators allegedly operated a nationwide and international, multimillion-dollar marriage fraud scheme, using participants to abuse United States immigration laws for their own profit,” said U.S. Attorney Jamie McDonald. “Today’s arrests have dismantled a central component of one of the largest marriage fraud schemes charged in United States history. As this prosecution shows, we and our law enforcement partners will relentlessly pursue those seeking to corrupt and exploit our nation’s lawful immigration system.”
“This Department of Justice is rooting out fraud everywhere—including in our immigration system,” said Attorney General Todd Blanche. “The individuals who were arrested today allegedly orchestrated elaborate schemes to illegally obtain citizenship for foreign nationals through sham marriages. Schemes like this are a deliberate affront to the United States and our laws and will not be tolerated under the Trump Administration.”
“For over a decade, this alleged criminal network treated our immigration system like a business opportunity—charging foreign nationals exorbitant fees, recruiting U.S. citizens into sham marriages, and manufacturing false evidence to deceive the federal government,” said HSI Acting Special Agent in Charge Pete Gizas. “Their alleged conduct struck at the heart of a lawful process, placing personal profit above fairness, accountability, and the public’s trust. When fraudsters game the system, they don’t just break the law—they cheat every person who plays by the rules and waits their turn, and they erode the confidence that legitimate institutions depend on to serve the public. HSI New York, as a co-leader of the Homeland Security Task Force, is resolute in its mission to dismantle these fraud networks, protect the integrity of our institutions, and safeguard New Yorkers’ neighborhoods, communities, and livelihoods.”
“Anyone willing to lie, cheat or steal their way to legal immigration status is a direct threat to America's national security,” said USCIS Director Joseph B. Edlow. “U.S. Citizenship and Immigration Services is aggressively pursuing marriage fraud schemes and the criminal organizations and ringleaders who profit from them. USCIS will continue to expose fraud, defend the rule of law, and ensure immigration status is reserved for those who truly qualify.”
“Those who deliberately arrange sham marriages to circumvent our nation’s immigration laws are not only undermining the sanctity of this institution, but they are also committing a crime,” said Westchester County District Attorney Susan Cacace. “This complex investigation, which our office proudly helped uncover, was worked in partnership with HSI, the FBI, and the U.S. Attorney’s Office for the Southern District of New York. This case demonstrates the power and importance of strong cooperation between all law enforcement agencies.”
According to the Indictment:(1)
From at least 2016 through July 2026, the defendants operated a nationwide and international marriage fraud network that arranged sham marriages between foreign nationals—primarily citizens of the People’s Republic of China—and United States citizens. Although based principally in New York City, the network allegedly arranged sham marriages throughout the United States and overseas, including in Connecticut, Massachusetts, Pennsylvania, Kentucky, Tennessee, Georgia, Florida, Vanuatu, and China.
The network included facilitators who oversaw the scheme and identified foreign-national customers; recruiters who found willing United States citizens and helped ensure their continued participation; and assistants who prepared immigration paperwork and coordinated the submission of fraudulent lawful permanent residency (“Green Card”) applications to United States Citizenship and Immigration Services (“USCIS”). The scheme also relied on marriage officiants, attorneys, tax preparers, insurance providers, and other service providers. Foreign nationals paid facilitators as much as approximately $100,000 for a sham marriage and assistance obtaining lawful permanent resident status. Facilitators, in turn, allegedly paid participating United States citizens as much as approximately $30,000—generally in installments tied to milestones in the Green Card application process—and paid recruiters commissions of as much as approximately $5,000 for each citizen recruited. In total, the defendants and their co-conspirators recruited hundreds of United States citizens to enter into sham marriages:
The defendants executed the fraud by pairing foreign nationals with United States citizens—who often met for the first time immediately before obtaining a marriage license, arranging sham wedding ceremonies, and staging photographs designed to make those marriages appear legitimate. Some examples are below, including a photograph of a sham marriage that took place in China:
After the ceremonies, scheme participants manufactured evidence to make the marriages appear genuine, including by staging additional photographs, opening joint financial and utility accounts, filing joint tax returns, and obtaining insurance policies. The defendants and their co-conspirators then prepared and submitted Green Card applications containing materially false statements and, when interviews with USCIS were required, coached the marriage participants on how to conceal the true nature of their relationships and provide false answers to immigration officers.
The defendants caused at least hundreds of fraudulent Green Card applications and supporting documents to be submitted to USCIS. Based on the scale and duration of the scheme, the defendants’ network is believed to have collected tens of millions of dollars from foreign nationals seeking lawful permanent resident status.
At the time the defendants were arrested, law enforcement executed premises search warrants at locations in Sunset Park, Brooklyn, Flushing, Queens, and Staten Island.
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AMY CHENG, 72, of Brooklyn, New York, XIAO MEI CHAN, 64, of Queens, New York, CHRISTINE LU, 52, of Queens, New York, JING YAN YE, 43, of Staten Island, New York, XIAO YAN CHEN, 48, of Brooklyn, New York, GANG ZHENG, 61, of Queens, New York, ANTHONY CHENG, 47, of Staten Island, New York, MICHELLE DUENAS, 35, of Staten Island, New York, ANGELA DUENAS, 26, of Staten Island, New York, SIGRID CETINO, 32, of Peekskill, New York, and ERIKA JOHNSON, 43, of Ossining, New York, have each been charged with one count of conspiracy to commit marriage fraud and immigration fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to encourage the unlawful residence of aliens in the United States, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. McDonald thanked HSI, Hudson Valley; the Federal Bureau of Investigation, Safe Streets Task Force; the USCIS Fraud Detection and National Security Directorate; the United States Army Criminal Investigation Division; the Westchester County District Attorney’s Office; the United States Attorney’s Office for the Middle District of Florida; and Homeland Security Investigations, Jacksonville for their outstanding investigative work.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jake Sidransky and Reyhan Watson 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.
^
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.
Former New York City Real Estate Developer Sentenced to Four Years for Defrauding InvestorsRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, announced today that Joshua Schuster was sentenced to four years in prison for his role in a scheme to defraud investors in large real estate development projects located in New York City. SCHUSTER pled guilty on February 27, 2026, before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.
“To preserve the integrity of and confidence in our financial markets, this Office will work tirelessly to prosecute fraud and protect investors in these markets,” said U.S. Attorney Jamie McDonald. “Joshua Schuster betrayed the trust of investors who believed their money would fund real estate projects throughout New York. Instead, he stole more than $13 million to finance his own lifestyle and repay earlier investors in a Ponzi-like scheme. As a result of his lies and deception at his investors’ expense, Schuster has been sentenced to a term in federal prison.”
According to the Indictment, plea agreement, and statements made in Court:
Over a five-year period, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific New York-based projects. Instead, SCHUSTER misappropriated in excess of $13 million dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll.
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In addition to the prison term, SCHUSTER, 42, of Boca Raton, Florida, was sentenced to three years of supervised release and will be required to pay more than $13,830,665 in forfeiture. SCHUSTER will also be required to pay restitution, which will be determined at a later date.
Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation. Mr. McDonald also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against SCHUSTER, for its assistance and cooperation in the investigation.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
Former CFO Charged and Pleads Guilty to Defrauding Hedge Fund of More Than $3 MillionRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the filing of an Information charging THEODORE WOO, the former CFO of a hedge fund, with securities fraud. The charge results from WOO’s yearslong scheme to steal from the fund by submitting and approving falsified invoices, causing the fund to transfer money directly into accounts controlled by WOO, and incurring unauthorized personal expenses on credit cards paid by the fund. WOO pled guilty today before U.S. Magistrate Judge Valerie Figueredo and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on November 18, 2026.
“For years, Theodore Woo flagrantly abused his position of trust and brazenly stole from his employer to line his own pockets,” said U.S. Attorney Jamie McDonald. “To do so, Woo took advantage of his position as CFO, misled his employer, and falsified documents. Lies and deception are not worth the risk of criminal prosecution. Today’s charge and plea are indicative of this Office’s commitment to holding C-suite executives accountable when they engage in fraud.”
“Woo’s arrest shows that greed and deceptive tactics do not pay,” said USPIS Inspector in Charge Ketty Larco-Ward. “For years Woo allegedly cheated this company out of millions and used this money as his own personal piggy bank. The United States Postal Service will continue to investigate and prosecute this type of illegal activity, as we seek to protect the public from financial fraudsters.”
According to the Information:
Beginning shortly after he began working for the fund and continuing until his termination in March 2026, WOO embezzled millions of dollars from the fund through a series of fraudulent transactions, including making millions of dollars in fraudulent payments to entities controlled by WOO and spending thousands of dollars on unauthorized personal expenses using credit cards paid by the fund.
As the CFO, WOO handled back-office tasks for the fund and had the authority to authorize the fund’s administrator to process reimbursement requests. In that capacity, WOO instructed the fund administrator to make millions of dollars in payments to two entities, TWDRR LLC and MGTW LLC, for claimed “Research Consulting Services.” WOO also sent invoices from those two entities that falsely represented that they had rendered services for the fund. In actuality, WOO controlled both entities, and neither entity had performed any service for the fund. To further conceal his theft, WOO falsely claimed to the fund’s external auditor that MGTW LLC was an independent research consulting firm engaged by the fund to develop short investment ideas on a project-by-project basis.
WOO also had the authority to effectuate transfers of cash from the fund to third parties, as the CFO. Over the course of his employment with the fund, WOO caused over 100 fraudulent transfers from the fund to a corporate entity controlled by WOO and to bank accounts in WOO’s name.
Finally, while serving as CFO, WOO opened and controlled multiple credit cards in the name of the fund, and charged unauthorized personal expenses to those cards, including thousands of dollars in charges to adult entertainment establishments and international vacations.
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WOO, 49, of Miami, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. McDonald thanked the USPIS 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 Task Force. Assistant U.S. Attorneys Sarah Mortazavi and Christy Slavik are in charge of the prosecution.
Unlicensed Tour Operator Charged for Causing Deaths of Five-Month-Old Infant and 27-Year-Old Woman in New York Harbor Boat CapsizingRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the Coast Guard Investigative Service (“CGIS”), Josh Packer, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that MANUEL HERNANDEZ has been charged with negligently causing the death of a five-month-old infant and a 27-year-old woman, after the vessel HERNANDEZ was piloting capsized in New York Harbor. HERNANDEZ was presented today before U.S. Magistrate Judge Valerie Figueredo.
“Federal regulations and maritime safety protocols exist to protect the lives and wellbeing of passengers on commercial vessels,” said U.S. Attorney Jamie McDonald. “The defendant allegedly flouted those regulations when he transported paying customers on a commercial vessel without appropriate licenses, overcrowded the vessel, and took on a five-month-old infant passenger, with no infant life vests onboard. We mourn the tragic drowning deaths of the infant and her mother and urge would-be tour operators and the public to observe all safety protocols for commercial vessels.”
“Illegal charter operations gamble with human life, and in this case, the alleged conduct led to an unthinkable tragedy,” said Coast Guard Investigative Service Assistant Director Josh Packer. “As the Coast Guard’s criminal investigative agency, CGIS brings unmatched maritime subject-matter expertise coupled with federal law enforcement authority. Working with our federal, state, and local partners, we will continue to investigate those who ignore passenger vessel safety laws and put the public in danger.”
“As alleged in the complaint, Manuel Hernandez showed a complete disregard for the safety of his passengers when he piloted an over-capacity boat without a license that capsized in the New York Harbor,” said NYPD Commissioner Jessica S. Tisch. “This tragedy could have been prevented, and now a family is left to grieve the unimaginable loss of a mother and her five-month-old daughter because of his negligence. I am grateful to our NYPD Harbor and Aviation Units for their swift response and to the U.S. Attorney’s Office for the Southern District of New York for bringing these charges.”
According to the allegations contained in the Complaint:(1)
On or about August 8, 2026, HERNANDEZ was piloting a Yamaha AR210 (the “Vessel”) when it capsized in New York Harbor, resulting in the deaths of a five-month-old infant (“Victim-1”) and a 27-year-old woman (“Victim-2”). At the time of the capsizing, HERNANDEZ was the pilot and operator of the Vessel and conducting a tour for paying customers that had been arranged through a tour operations company.
HERNANDEZ’s negligent actions and omissions caused the capsizing and deaths of Victim-1 and Victim-2. At the time of the capsizing, among other things: (i) HERNANDEZ operated the Vessel with 14 people onboard, exceeding the Vessel’s maximum allowable capacity of 10 people; (ii) HERNANDEZ knowingly operated the Vessel with an infant onboard, knowing that the infant was not wearing a personal flotation device (“PFD”) and that the Vessel was not equipped with any child- or infant-sized PFDs; (iii) HERNANDEZ had not obtained a Merchant Mariner Credential, a required USCG certification to operate the Vessel with paying customers onboard; (iv) HERNANDEZ operated the Vessel without a valid USCG Certificate of Inspection, which is required for a vessel to operate with paying customers onboard, and, in fact, the Vessel was of a type and size that made it ineligible to receive a COI for the type of operation conducted by HERNANDEZ.
All 14 people onboard the Vessel were thrown overboard during the capsizing. Shortly after the capsizing, other boats, including commercial vessels and vessels operated by the NYPD, the USCG, and the New York City Fire Department, responded to the scene to render emergency assistance. 11 passengers and HERNANDEZ were recovered in varying medical conditions and survived the capsizing. The bodies of Victim-1 and Victim-2 were recovered in the water by members of the NYPD and USCG. Both Victim-1 and Victim-2 were unresponsive, received CPR from emergency responders, and were immediately transported to a hospital in Brooklyn. Upon arrival at the hospital, both Victim-1 and Victim-2 were pronounced deceased by medical personnel. A photo of the capsized Vessel being recovered from the water is below:
Please report any illegal passenger charters to the USCG at https://www.p3tips.com/878.
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HERNANDEZ, 46, of Manville, New Jersey, is charged with two counts of misconduct and neglect of a ship officer resulting in death, each of which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. McDonald praised the outstanding work of the CGIS and the NYPD.
This case is being handled by the Office’s General Crimes Unit. Special Assistant U.S. Attorney Andrew Stahl 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.
^
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.
NFT Startup Founder Charged with FraudRead the Press Release
Sean S. Buckley, Deputy United States Attorney, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that TAJ TARSHA, the founder of Few and Far Limited (“Few and Far”), has been indicted for securities and wire fraud for defrauding investors of the crypto startup he founded by making false and misleading statements regarding the use of investor funds and subsequently misappropriating those funds. TARSHA was previously arrested on June 6, 2026. The case has been assigned to U.S. District Judge Lewis A. Kaplan.
“As alleged, Taj Tarsha raised millions of dollars from investors by promising that their investments would be used to build a marketplace for non-fungible tokens, but he instead breached their trust by stealing those funds for his own personal benefit,” said Deputy United States Attorney Sean S. Buckley. “Investors are entitled to the truth when choosing to make an investment, and this Office and our law enforcement partners will hold business leaders responsible when they lie for their own gain.”
“Taj Tarsha is alleged to have concealed fraudulent conduct behind his crypto startup, using investor funds for personal benefit,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Protecting the integrity of our financial markets is a priority, and the FBI remains steadfast in its commitment to conducting thorough and fact-driven investigations into potential financial offenses.”
According to the Indictment:(1)
TARSHA was the founder and sole equity owner of Few and Far, a startup that claimed to be developing a decentralized marketplace for non-fungible tokens (“NFTs”). Beginning in February 2022, TARSHA solicited investments in Few and Far through Simple Agreement for Future Tokens (SAFTs), under which investors paid upfront for rights to receive FAR tokens—a proprietary token meant to be integrated into the marketplace—at a later date. The offering materials promised investors that their funds would be used to advance the development of the Few and Far marketplace and the FAR tokens. Through these sales, TARSHA raised over $10 million from the sale of 95 million FAR tokens to at least 67 investors.
Almost immediately, however, TARSHA began misappropriating investor funds for his personal use, including gambling at an online casino and purchasing speculative cryptocurrencies. TARSHA also siphoned nearly a million dollars of investor funds under the pretext of legitimate compensation in the form of two bonuses—which he deliberately hid from investors and a co-founder—and a high salary that he acknowledged was unreasonable in light of Few and Far’s lack of product and “zero revenue.”
In June 2023, an audit uncovered the misappropriation. TARSHA falsely told investors that the bonuses were tied to predetermined FAR token presales targets and all transactions were done for the benefit of Few and Far, and he claimed all investor funds were still needed to complete the company’s mission. In reality, he had fired nearly all staff and instructed the remaining contractor to do work that merely created the appearance of continued development of the marketplace. For at least another year, he used investor funds for personal expenses, including cryptocurrency purchases, a Miami condominium loan and interior design services, and his DJ hobby. When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading.
* * *
TARSHA, 34, of Miami, Florida, is charged with securities fraud and 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 defendant will be determined by the judge.
Mr. Buckley praised the outstanding work of the FBI.
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.
^
As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Former General Superintendent of the New York City Department of Sanitation Charged with Possession of Child PornographyRead the Press Release
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 that VICTOR ALVELO has been charged with possessing approximately thousands of images and videos depicting child pornography, including images that depict pre-pubescent children engaging in sexually explicit conduct. ALVELO was arrested yesterday and presented before U.S. Magistrate Judge Gary Stein in Manhattan federal court.
“Victor Alvelo, the General Superintendent of the New York City Department of Sanitation (‘DSNY’), is accused of possessing thousands of images of graphic child sexual abuse,” said U.S. Attorney Jamie McDonald. “Sexual abuse of children inevitably leads to irreparable harm to those innocent and vulnerable victims. Our Office is committed to pursuing justice against those who commit these unfathomable acts. Together with our partners at HSI and the NYPD’s Computer Crimes Squad, we will work tirelessly to detect predators, prosecute them, and protect our community’s children.
“As a former senior public official, Victor Alvelo allegedly betrayed the confidence placed in him by the city and the public, even brazenly using his government-branded clothing to store files containing material that no person should ever possess,” said HSI New York Acting Special Agent in Charge Pete Gizas. “Those who seek out and keep child sexual abuse material perpetuate the abuse of children and fuel a predatory market built on their exploitation. HSI New York will continue to stand shoulder to shoulder with our law enforcement partners to identify offenders, pursue justice, and safeguard our community’s children, vulnerable populations, and the public at-large.”
“Victor Alvelo allegedly possessed thousands of disturbing images of child pornography, including victims as young as 12 years old,” said NYPD Commissioner Jessica S. Tisch. “The NYPD will be relentless in stopping predators who seek to exploit and harm children. I thank our investigators, including the NYPD’s Computer Crimes Squad, and law enforcement partners for finding this illegal and vile material, and working to hold this perpetrator accountable.”
According to the allegations contained in the Complaint:(1)
ALVELO served as a General Superintendent of the DSNY until his retirement in or about August 2025. From at least in or about August 2022 through on or about August 3, 2026, ALVELO possessed approximately thousands of images and videos depicting child pornography on devices within his residence. The child pornography files were found in, among other places, a USB flash drive in the front pocket of a jacket bearing DSNY insignia inside ALVELO’s residence.
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ALVELO, 61, of the Bronx, New York, is charged with one count of possessing child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age, 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 HSI, including the Child Exploitation Investigations Team, the United States Postal Inspection Service, and the NYPD Computer Crimes Squad.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Paulena B. Prager 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.
^
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.
Recidivist Westchester County Drug Trafficker Sentenced to 292 Months in Prison for Distributing Fentanyl That Killed A Man, Conspiring to Distribute Crack Cocaine, and Possessing AmmunitionRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, announced today that PERRY FREEMAN was sentenced to 292 months in prison by U.S. District Judge Kenneth M. Karas for distributing fentanyl that resulted in the death of a Westchester County resident, conspiring to distribute crack cocaine, and illegally possessing ammunition. On February 11, 2026, FREEMAN pled guilty before U.S. Magistrate Judge Andrew E. Krause.
“Perry Freeman, a recidivist drug dealer, sold fentanyl to a victim who died shortly after taking the drugs,” said U.S. Attorney Jamie McDonald. “This Office will not rest until the public is safe and that those who peddle this poison have been brought to justice, as Perry Freeman now has.”
According to the charging documents and statements made in public filings and public court proceedings:
On or about November 10, 2021, FREEMAN sold fentanyl to his victim, a 37-year-old man.
Shortly thereafter, the police responded to a report of a burning car in a parking lot in the Town of Mohegan Lake, New York, approximately a three-minute drive from FREEMAN’s apartment building. They found a Ford Focus on fire; the victim was in the driver’s seat with his foot on the accelerator pedal. After the fire department put the fire out, the victim—who was dead—was pulled out. Investigators determined that the car had caught fire after overheating while the accelerator pedal was depressed for an excessive period of time while the car was in park, i.e., while the victim was passed out in the driver’s seat with his foot on the pedal.
The Westchester County Medical Examiner’s Office, which is part of the Westchester Department of Laboratories and Research, performed an autopsy on the victim. The victim had lethal levels of both fentanyl and norfentanyl (a metabolite of fentanyl) in his blood, and there was some darkening of the victim’s lungs, which indicated smoke inhalation before his death. The victim’s cause of death was certified as both acute fentanyl intoxication and accident.
In addition, FREEMAN conspired to distribute crack cocaine over a period of years and possessed five shotgun shells in his apartment despite being prohibited from doing so due to multiple prior felony convictions, including convictions for narcotics offenses in 2008, 2012, 2016, and 2022.
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In addition to the prison sentence, FREEMAN, 40, of Mohegan Lake, New York, was sentenced to five years of supervised release.
Mr. McDonald praised the outstanding investigative work of the Drug Enforcement Administration and the Yorktown Police Department for their assistance in the investigation.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael D. Maimin and Ben Arad are in charge of the prosecution.
Turkey-Based Global Director of Sham Charity Arrested and Charged with Conspiring to Provide Material Support to HamasRead the Press Release
A three-count complaint was unsealed today charging Mohammad Yousef Hasna, also known as “Orhan Korkmaz” and “Abu al-Baraa,” 45, of Istanbul, Turkey, with conspiring to provide material support to Hamas, a U.S. designated foreign terrorist organization (FTO), and related terrorism financing charges. As alleged, Hasna used his senior role at a purported global humanitarian organization to coordinate directly with Hamas’s senior leadership regarding the delivery of funds and supplies to Gaza, and the distribution of those funds and supplies at Hamas leadership’s instructions. Hasna was arrested in the United Kingdom today.
“The money that flows from sham charities like the one described in the complaint fuels Hamas’s terrorist activities, including the atrocities the group committed on October 7,” said Assistant Attorney General for National Security John A. Eisenberg. “Hamas cannot function without injections of money through its illicit financial networks. The National Security Division will continue to work tirelessly to disrupt Hamas’s operations, including through the prosecutions such as this.”
“Mohammad Hasna is alleged to have abused his position as the global director of a purported humanitarian organization to raise money and provide funds and supplies to Hamas, a brutal terrorist organization responsible for the murders of dozens of Americans and over a thousand other innocent victims, including as part of the heinous atrocities of October 7,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “Hasna worked closely with Hamas’s senior leadership to deliver supplies, food, funding, and other materials to terrorists under the guise of humanitarian aid. Our arrest of Mohammad Hasna demonstrates our commitment to dismantling Hamas’s illicit global financing networks and the sham charities that support terrorist organizations and their violent aims using the lie of philanthropy.”
“The accused allegedly used a purported humanitarian aid organization to raise funds and provide financing and supplies to Hamas, a ruthless international terrorist organization,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division. “According to the criminal complaint, the defendant coordinated his actions closely with a senior leader of Hamas and knew the resources were going to that group rather than to needy non-combatants. The FBI is committed to cutting off funding and other assistance to terrorist organizations and will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”
According to the allegations contained in the complaint, Hasna is the global director of a purported international charity registered in the United Kingdom (the “Sham Charity”). In that role, Hasna allegedly provided financing and commodities to Hamas, including by coordinating extensively with individuals at the highest levels of Hamas. As alleged, Hasna worked closely with senior Hamas leader Ghazi Hamad (Hamad), a member of Hamas’s governing body known as the Politburo and the Minster for the Ministry of Social Development in Gaza (MoSD), a putative governmental agency that is controlled by Hamas.
Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000-armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of 251 hostages.
Following the October 7 Hamas Massacres, in its disclosures to UK authorities, the Sham Charity reported that its total gross income nearly doubled from approximately $41.8 million USD in fiscal year 2023, to approximately $81.56 million USD in fiscal year 2024. The Sham Charity represented that it spent approximately $91 million on charitable activities in the fiscal year ending July 31, 2025.
Since at least 2023, Hasna and Hamad coordinated the delivery of purported humanitarian aid organized by or allocated to the Sham Charity into Gaza for Hamas’s benefit, repeatedly coordinating the delivery of supplies, food, and other items by Hasna (under the guise of humanitarian aid from the Sham Charity) directly into Hamad’s and Hamas’s hands. In coordination with Hamad and at Hamad’s direction, Hasna allegedly arranged (1) deliveries of cash to Hamad; (2) the procurement of supplies for import to Gaza; (3) transportation of supplies into Gaza by truck from Egypt and elsewhere; (4) deliveries to warehouses controlled by the Sham Charity or by MoSD, according to Hamad’s instructions; and (5) distribution of those supplies to lists of recipients identified by Hamad. As part of this scheme, Hasna and Hamad concealed where the supplies were being delivered or stored, including by misrepresenting that supplies were being delivered to MoSD when in fact they were being delivered to warehouses controlled by Hasna; having supplies delivered initially to MoSD but then redistributed to the actual receiving parties; and taking pictures and videos of the supplies that omitted any signage inside the warehouses that would reveal their location or control.
Hasna is charged with conspiring to provide material support to Hamas, conspiring to finance terrorism, and financing terrorism, each of which carries a maximum penalty of 20 years in prison.
A federal district judge will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The Counterterrorism Section of the Department of Justice’s National Security Division thanks the U.K. authorities and the Israeli Security Agency for their assistance with this investigation. The Justice Department’s Office of International Affairs and the United Kingdom’s law enforcement authorities provided significant assistance.
This case is being handled by the Southern District of New York’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner, Michael D. Lockard, and Juliana N. Murray are in charge of the prosecution, with assistance from Alicia Cook of the Counterterrorism Section of the Department of Justice’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.
Turkey-Based Global Director of Sham Charity Arrested and Charged with Conspiring to Provide Material Support to HamasRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director in Charge of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Jarod Brown, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the unsealing of a three-count Complaint charging MOHAMMAD YOUSEF HASNA, a/k/a “Orhan Korkmaz,” a/k/a “Abu al-Baraa,” a Turkish resident, with conspiring to provide material support to Hamas, a U.S.-designated foreign terrorist organization (“FTO”), and related terrorism financing charges. As alleged, HASNA used his senior role at a purported global humanitarian organization to coordinate directly with Hamas’s senior leadership regarding the delivery of funds and supplies to Gaza, and the distribution of those funds and supplies at Hamas leadership’s instructions. HASNA was arrested in the United Kingdom today and ordered detained pending extradition proceedings.
“Mohammad Hasna is alleged to have abused his position as the global director of a purported humanitarian organization to raise money and provide funds and supplies to Hamas, a brutal terrorist organization responsible for the murders of dozens of Americans and over a thousand other innocent victims, including as part of the heinous atrocities of October 7,” said U.S. Attorney Jamie McDonald. “Hasna worked closely with Hamas’s senior leadership to deliver supplies, food, funding, and other materials to terrorists under the guise of humanitarian aid. Our arrest of Mohammad Hasna demonstrates our commitment to dismantling Hamas’s illicit global financing networks and the sham charities that support terrorist organizations and their violent aims using the lie of philanthropy.”
“The money that flows from sham charities like the one described in the complaint fuels Hamas’s terrorist activities, including the atrocities the group committed on October 7,” said Assistant Attorney General for National Security John A. Eisenberg. “Hamas cannot function without injections of money through its illicit financial networks. The National Security Division will continue to work tirelessly to disrupt Hamas’s operations, including through the prosecutions such as this.”
“The accused allegedly used a purported humanitarian aid organization to raise funds and provide financing and supplies to Hamas, a ruthless international terrorist organization,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division. “According to the criminal complaint, the defendant coordinated his actions closely with a senior leader of Hamas and knew the resources were going to that group rather than to needy non-combatants. The FBI is committed to cutting off funding and other assistance to terrorist organizations and will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”
“Mohammad Hasna allegedly used a charity to funnel millions of dollars in aid to Hamas—a designated terrorist organization responsible for countless terrorist attacks, death, and destruction around the world,” said FBI New York Assistant Director in Charge James C. Barnacle, Jr. “The FBI’s Joint Terrorism Task Force continues to fight for peace by working with our partners to identify threats to the United States and our allies.”
According to the allegations contained in the Complaint:(1)
HASNA is the global director of a purported international charity registered in the United Kingdom (the “Sham Charity”). In that role, HASNA allegedly provided financing and commodities to Hamas, including by coordinating extensively with individuals at the highest levels of Hamas. In particular, and as alleged, HASNA worked closely with senior Hamas leader Ghazi Hamad (“Hamad”), a member of Hamas’s governing body known as the Politburo and the Minister for the Ministry of Social Development in Gaza (“MoSD”), a putative governmental agency that is controlled by Hamas.
Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of 251 hostages.
Following the October 7 Hamas Massacres, in its disclosures to UK authorities, the Sham Charity reported that its total gross income nearly doubled from approximately $41.8 million USD in fiscal year 2023, to approximately $81.56 million USD in fiscal year 2024. The Sham Charity represented that it spent approximately $91 million on charitable activities in the fiscal year ending July 31, 2025.
Since at least 2023, HASNA and Hamad coordinated the delivery of purported humanitarian aid organized by or allocated to the Sham Charity into Gaza for Hamas’s benefit, repeatedly coordinating the delivery of supplies, food, and other items by HASNA (under the guise of humanitarian aid from the Sham Charity) directly into Hamad’s and Hamas’s hands. In coordination with Hamad and at Hamad’s direction, HASNA allegedly arranged (1) deliveries of cash to Hamad; (2) the procurement of supplies for import to Gaza; (3) transportation of supplies into Gaza by truck from Egypt and elsewhere; (4) deliveries to warehouses controlled by the Sham Charity or by MoSD, according to Hamad’s instructions; and (5) distribution of those supplies to lists of recipients identified by Hamad. As part of this scheme, HASNA and Hamad concealed where the supplies were being delivered or stored, including by misrepresenting that supplies were being delivered to MoSD when in fact they were being delivered to warehouses controlled by HASNA; having supplies delivered initially to MoSD but then redistributed to the actual receiving parties; and taking pictures and videos of the supplies that omitted any signage inside the warehouses that would reveal their location or control.
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HASNA, 45, of Istanbul, Turkey, is charged with conspiring to provide material support to Hamas, conspiring to finance terrorism, and financing terrorism, each of which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. McDonald praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and Washington Field Office. Mr. McDonald also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, our U.K. partners, and the Israeli Security Agency for their assistance with this investigation. The Justice Department’s Office of International Affairs and the United Kingdom’s law enforcement authorities provided significant assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner, Michael D. Lockard, and Juliana N. Murray are in charge of the prosecution, with assistance from Alicia Cook of the Counterterrorism Section.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
^
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.
Florida Woman Sentenced to Two Years in Prison for Orchestrating Multimillion-Dollar Federal Student Aid Loan Forgiveness Fraud SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office (“DOE OIG”), Jamila Davis, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service, Ketty Larco-Ward, announced today that NYDIRA ADAMS a/k/a “Nadira Adams,” a/k/a “Nadira Adams-McMillan,” was sentenced to two years in prison for carrying out a scheme in which she charged federal student loan borrowers to submit documents containing misrepresentations and false statements to the United States Department of Education to take advantage of the Public Service Loan Forgiveness program. ADAMS’s scheme sought to cause the Department of Education to forgive over $6 million in federal student loan debt based on lies, misrepresentations, and falsehoods. The defendant pled guilty on April 30, 2026, before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
“Nydira Adams defrauded the Department of Education out of millions of dollars and preyed upon individuals seeking relief from federal student loan debt,” said U.S. Attorney Jamie McDonald. “Through lies, misrepresentations, and false documents, Adams abused the Public Service Loan Forgiveness program—a federal program intended to benefit individuals who dedicate at least 10 years of their careers to public service or non-profit work. And she did so to enrich herself. Today’s sentencing sends a clear message: individuals who swindle the Government and taxpayer-funded programs will be held accountable.”
“Nydira Adams thought she could game the system and would not get caught, but she was wrong,” said DOE OIG Special Agent in Charge Jamila Davis. “The OIG will continue to work with our law enforcement partners to aggressively pursue those who abuse the Public Service Loan Forgiveness program or any Federal education program for their own selfish purposes. America’s taxpayers and students deserve nothing less.”
“Through lying, cheating, and manipulation, Ms. Adams devised a scheme to defraud the Department of Education and her clients by depicting herself as someone who held proprietary information on DOE programs, cheating those who truly needed student loan forgiveness and other assistance from the Department of Education,” said USPIS Inspector in Charge Ketty Larco-Ward. “Her actions are unconscionable and today’s sentence sends a message, that no matter who you claim to be, when you lie and steal from the public, postal inspectors and their law enforcement partners will be there to bring you to justice for your criminal activity.”
According to court documents, statements made in court, and evidence presented during the sentencing:
From at least in or about March 2023 through at least in or about January 2025, Adams held herself out as the “Student Loan Default Guru” and operated a business under the same name. In reality, AdAMS used misrepresentations, false statements, and false documents to deceive the Department of Education into forgiving federal student loans issued to borrowers who paid Adams thousands of dollars for her purported services. On multiple occasions, Adams knowingly and intentionally caused applications for Department of Education relief programs to be submitted which contained falsehoods pertaining to the borrowers’ eligibility for the relief programs. Among other falsehoods, ADAMS claimed that one California-based borrower worked full-time at a New-York-based religious institution and falsely represented that another borrower worked full-time for a public school district. Adams’s scheme resulted in an intended loss of over $6 million to the Department of Education.
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In addition to the prison term, ADAMS, 38, of Pensacola, Florida, was sentenced to three years of supervised release.
Mr. McDonald praised the outstanding investigative work of the DOE OIG—Eastern Regional Office; the U.S. Postal Inspection Service, New York; and the Special Agents assigned to the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.
Identity Theft Ring, Including Former Bank Employee, Charged with Posing as Bank Customers and Stealing over $1.6 MillionRead the Press Release
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 arrests of CATORA NOEL, DARREN STEPHENSON, and IMANI-KAI BROWN, who are charged with stealing the personal identifying and financial information of dozens of victims as part of a conspiracy to fraudulently take over those victims’ bank accounts and initiate over a million dollars in unauthorized wire transfers and ATM withdrawals. NOEL and STEPHENSON were arrested in Brooklyn, New York, this morning and presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker. BROWN was arrested today in Miami, Florida, and will be presented tomorrow in the Southern District of Florida before U.S. Magistrate Judge Edwin G. Torres.
“As alleged, Noel, Stephenson, and Brown engaged in a coordinated scheme to defraud financial institutions and steal over $1.6 million from the bank accounts of dozens of hardworking New Yorkers,” said U.S. Attorney Jamie McDonald. “As part of this scheme, Stephenson exploited his employment at a bank to feed sensitive customer information to his co-defendants, who intercepted bank debit cards and posed as bank customers over the phone and in person. Thanks to the tireless efforts of our law enforcement partners, this insider scheme has been disrupted.”
“The co-defendants spent years targeting and exploiting dozens of U.S. businesses and innocent victims, stealing more than $1.6 million through compromised personal and confidential information,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI remains relentless in our mission to hold accountable and impose repercussions on those who prey on our country and our communities through fraudulent and predatory schemes.”
As alleged in the Complaint:(1)
From at least in or about July 2022 through in or about September 2024, NOEL, STEPHENSON, and BROWN participated in an identity theft scam and related fraud operation involving primarily a bank with multiple locations in the New York metropolitan area (“Victim Institution-1”). Through the fraud scheme, one or more of the participants, including NOEL, intercepted new or replacement bank debit cards that Victim Institution-1 mailed to its customers.
The defendants unlawfully obtained customers’ bank debit cards by stealing bank debit cards from mail deposits and placing recorded calls to banks, impersonating customers by providing the customer’s name, personal identifying information (“PII”), and debit card number, and requesting that the bank mail a debit card for the customer’s account to an address accessible to the defendants or their co-conspirators. NOEL, STEPHENSON, and BROWN communicated through, among other means, text messages and an encrypted messaging application and exchanged the information, including names, PII, and bank card and account numbers, of bank customers. STEPHENSON, a former Victim Institution-1 employee, used his privileged access to customer account information to steal customer PII and provide it to his co-conspirators in furtherance of the scheme.
Among other things, NOEL then posed as bank customers of Victim Institution-1 to conduct unauthorized and fraudulent transactions, including wire transfers, teller withdrawals, and automated teller machine (“ATM”) withdrawals. Specifically, NOEL posed as bank customers by calling and visiting Victim Institution-1, providing the customer’s PII and account information, and requesting a wire transfer or withdrawal of funds from the customer’s Victim Institution-1 account to another bank account. Alternatively, NOEL would use the intercepted bank cards to conduct fraudulent withdrawals from ATM machines.
* * *
NOEL, 42, and BROWN, 33, both of Brooklyn, New York, and STEPHENSON, 41, of Valley Stream, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. NOEL is also charged with one count of access device fraud, which carries a maximum sentence of 10 years in prison.
The statutory minimum and maximum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. McDonald praised the outstanding investigative work of Operation Riptide of the FBI New York Field Office and Cyber Crimes Task Force, as well as the New York City Police Department and U.S. Customs and Border Protection.
This action is part of Operation Riptide, an ongoing FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime, cyber-enabled crime, and fraud against the American people. Last year, Americans reported over $20 billion in losses to cybercrime, a 26% single-year increase. Operation Riptide is the FBI’s sustained enforcement response to that threat.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Dana R. McCann is in charge of the prosecution.
The charges contained in the Complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
^
As the introductory phrase signifies, the entirety of the Complaint to date constitutes only allegations, and every fact described herein should be treated as an allegation.
Jamie McDonald Assumes Role as United States Attorney for the Southern District of New YorkRead the Press Release
Jamie McDonald has assumed the role of United States Attorney for the Southern District of New York. Earlier today, Judge Laura Taylor Swain, Chief District Judge for the Southern District of New York, informed the Office that the Court has appointed Mr. McDonald to serve as United States Attorney for the Southern District of New York, pursuant to 28 U.S.C. § 546(d), upon U.S. Attorney Jay Clayton’s resignation. Yesterday, Mr. Clayton was confirmed by the Senate to serve as Director of National Intelligence. Mr. Clayton tendered his resignation as U.S. Attorney, effective earlier today. Mr. McDonald was sworn in as the U.S. Attorney by Chief Judge Swain.
Sean S. Buckley will continue in his role as Deputy United States Attorney, Amanda Houle will continue in her role as Chief of the Criminal Division, and Jeff Oestericher will continue in his role as Chief of the Civil Division as contemplated in the transition announcement of July 8, 2026.
Mr. McDonald previously served in the Office as an Assistant United States Attorney in the Criminal Division until 2017. In that role, Mr. McDonald participated in significant organized crime, white collar, and violent crimes prosecutions, including those of senior members of the Genovese Organized Crime Family; the sitting New York State Assembly Speaker, Sheldon Silver; and a 48-defendant rival street gangs case.
From 2017 to 2020, Mr. McDonald served as the Director of Enforcement at the U.S. Commodity Futures Trading Commission (CFTC), where he had overall responsibility for all aspects of the CFTC’s enforcement program, including its investigations, litigations, and market surveillance activities. Under his leadership, the agency prioritized cases involving market manipulation, other forms of market abuse, and fraud, as well as the pursuit of parallel actions with the Department of Justice. Notably, during the last year of Mr. McDonald’s time at the CFTC, the agency brought an unprecedented number of enforcement actions.
Following his tenure at the Southern District of New York and the CFTC, Mr. McDonald served as a Partner at Sullivan & Cromwell LLP where he was Co-Head of both the firm’s Securities & Commodities Investigations Practice and its Commodities, Futures and Derivatives Group. While at Sullivan & Cromwell, Mr. McDonald also served as an Adviser to the American Law Institute’s Principles of Compliance, Risk Management, and Enforcement. Mr. McDonald previously served as a Visiting Scholar at Harvard Business School and as a Senior Fellow at New York University Law School’s Program on Corporate Compliance and Enforcement.
Earlier in his career, Mr. McDonald served as a law clerk to Chief Justice John G. Roberts, Jr., of the U.S. Supreme Court and Judge Jeffrey S. Sutton, Jr., of the U.S. Court of Appeals for the Sixth Circuit. From 2008 to 2009, Mr. McDonald served as a Deputy Associate Counsel in the Office of the White House Counsel.
Originally from Oklahoma, Mr. McDonald graduated from the University of Virginia School of Law and from Harvard College.
Fraudster Sentenced to 51 Months in Prison for Running Ponzi SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that MATTHEW MELTON was sentenced to 51 months in prison for committing securities fraud by running a Ponzi scheme. MELTON pled guilty in April 2026 to securities fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence.
“Matthew Melton sold investors on a sophisticated trading strategy and guaranteed extraordinary returns,” said U.S. Attorney Jay Clayton. “In reality, the supposed algorithm did not exist, and he used investor money to fund his lifestyle and sustain his scheme before fleeing the country. Our Office and our partners are committed to holding financial fraudsters personally accountable, and if you defraud our retail investors, we will bring you to justice. In the past 18 months, our Office has criminally charged 27 CEOs and corporate leaders with fraud, charged 12 individuals with insider trading, and doubled the number of insider trading investigations year over year.”
According to the Indictment and statements made in public filings and public court proceedings:
MELTON promoted an investment vehicle he called “Price Physics,” which purported to invest in futures contracts using a proprietary trading algorithm. He promised investors guaranteed returns of up to 12% per month, of which he said he would keep only 2% as compensation. In reality, there was no proprietary trading algorithm, and MELTON invested almost none of the millions of dollars he raised in the manner promised to investors. The few times that MELTON did make trades, it was not in futures contracts, and the trading was generally unprofitable. For the most part, instead of trading, MELTON used his investors’ money to pay his personal expenses—including mortgage payments and sailing excursions—and to pay earlier investors in Ponzi-like fashion.
On approximately December 15, 2020, MELTON received word of a criminal investigation. Four days later, MELTON fled the United States and stopped using his email account, credit cards, bank accounts, and phone number, and soon after, MELTON soon stopped communicating with investors. MELTON remained at large for the next three years, until he was apprehended by law enforcement in October 2023, while he was traveling through the United Kingdom. MELTON was extradited back to the United States in December 2025.
* * *
In addition to the prison term, MELTON, 62, of Boulder, Colorado, was ordered to pay restitution, in an amount to be determined within 90 days, and forfeiture in the amount of $3,756,135, representing proceeds from his illegal scheme.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the prosecution.
Ghanaian National Sentenced to 85 Months in Prison for Stealing More Than $10 Million via Romance ScamsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that DERRICK VAN YEBOAH, a/k/a “Van,” was sentenced to 85 months in prison for his role in an international criminal organization that stole more than $100 million from victims via romance scams and business email compromises. On March 5, 2026, VAN YEBOAH pled guilty to one count of conspiracy to commit wire fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence.
“Romance scammers do not simply steal money—they weaponize trust,” said U.S. Attorney Jay Clayton. “Van Yeboah and his co-conspirators exploited trust, loneliness, and legitimate business relationships to steal more than $100 million. Today’s sentence reflects the seriousness of these calculated frauds and our commitment to pursuing international criminal organizations that target Americans.”
According to the charging documents and statements made in public filings and public court proceedings:
VAN YEBOAH was a member of a criminal organization primarily based in Ghana that committed romance scams and business email compromises against individuals and businesses located across the United States. Many of the conspiracy’s victims were vulnerable older men and women who were tricked into believing that they were in online romantic relationships with persons who were, in fact, fake identities assumed by members of the conspiracy. Once members of the conspiracy had gained the trust of their victims, they deceived those victims into sending their money to the enterprise or into helping them launder funds from other victims. The conspirators also committed business email compromises to trick and deceive businesses into wiring funds to the enterprise. In total, the conspiracy stole and laundered more than $100 million from dozens of victims. After stealing the money, the fraud proceeds were then laundered to West Africa.
VAN YEBOAH personally perpetrated many of the romance scams by impersonating fake romantic partners in communications with victims. For example, in 2019 and 2020, VAN YEBOAH assumed fake identities to engage in romance scams with an Ohio woman and a Delaware woman and induced them into transferring approximately $4.2 million to accounts belonging to members of the conspiracy. Similarly, in 2024, VAN YEBOAH assumed a fake identity to engage in a romance scam with a North Carolina man and induced him into transferring approximately $123,000 to accounts belonging to members of the conspiracy by claiming that he needed funds for both a parent’s funeral and to recover gold and diamonds from Italy.
VAN YEBOAH is being held responsible for more than $10 million he stole from victims via his romance scams.
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In addition to the prison term, VAN YEBOAH, 41, of Ghana, was sentenced to two years of supervised release and ordered to pay $10,149,429.17 in forfeiture.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. The Justice Department’s Office of International Affairs worked with the International Cooperation Unit of the Office of the Attorney-General of Ghana to secure VAN YEOBAH’s August 7, 2025, extradition to the United States. Ghana’s Economic and Organized Crime Office, the Ghana Police Service – INTERPOL, Ghana’s Cyber Security Authority, and Ghana’s National Intelligence Bureau all provided significant assistance to ensure VAN YEOBAH’s extradition.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Mitzi Steiner are in charge of the prosecution.
Former Senior Bank Executive, Edward Gene Smith, Sentenced to 30 Years in Prison for Sexual Assault, Child Pornography, and Obstruction of Justice OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that EDWARD GENE SMITH was sentenced today by U.S. District Judge Paul A. Engelmayer to 30 years in prison for drugging a female victim (“Victim-1”) with the intent to rape her, enticing another female victim (“Victim-2”) to travel to New York where SMITH drugged and sexually assaulted her, receipt of child pornography, and obstruction of justice. SMITH also admitted to additional conduct relating to other victims.
“Edward Gene Smith is a sexual predator and a serial rapist,” said U.S. Attorney Jay Clayton. “He spent years hiding behind wealth, education, and status while he committed egregious sexual crimes. He drugged and raped women, documenting his crimes with extensive notes planning how he would torture and punish his victims, and surreptitiously photographing them, while they were nude and unconscious. The defendant also obtained and maintained a trove of thousands of files of child sexual abuse material. The defendant took steps to hide his crimes, and, when he was caught, obstructed the investigation by compelling a victim he had drugged and raped to sign a false letter of support. He is now where he belongs, in prison. Every New York family is safer with the defendant off the streets.”
According to documents filed in this case and statements made in public court proceedings:
Between approximately 2015 and June 2024, SMITH, who was during that approximate time period a senior executive of major financial institutions, planned to drug, attempted to drug, and/or drugged numerous women with the intent to incapacitate them and/or render them unable to consent to sexual activity. SMITH did, in fact, engage in sexual activity with multiple of these women, and, in at least some cases, surreptitiously took videos or photographs of his criminal sexual activity.
At least on or about April 23, 2023, SMITH drugged and raped Victim-1 in his Central Park South residence. Specifically, unbeknownst to Victim-1, SMITH gave Victim-1 one or more alcoholic beverages that he had laced with Klonopin, a controlled substance. After Victim-1 consumed the drugged drink, SMITH physically restrained Victim-1, and raped her while she was unconscious. While Victim-1 was still unconscious, SMITH also took a video of himself sexually assaulting Victim-1, and then shared that video with others via an encrypted messaging platform, on a channel that was dedicated to sharing depictions of incapacitated or unconscious women in sexually exploitative positions.
Previously, between in or about 2019 and in or about 2020, SMITH repeatedly drugged and sexually assaulted Victim-2. SMITH met Victim-2 in 2019 when Victim-2 was a college student and persuaded Victim-2 to relocate to New York City, which she did. SMITH thereafter controlled Victim-2’s finances, social life, and activities, and repeatedly drugged and sexually assaulted Victim-2 over the course of several months. During this time period, SMITH caused Victim-2 to engage in sexual activity through coercion and force, including threatened and physical assault and physical restraint. Additionally, SMITH informed Victim-2 of one or more firearms that he possessed and showed Victim-2 at least one such firearm.
In or about the Fall of 2021, SMITH communicated with another victim (“Victim-3”), who was then 17 years old. SMITH followed a similar pattern with Victim-3. While Victim-3 was still 17 years old, SMITH solicited explicit photographs from Victim-3. Shortly after Victim-3 turned 18 years old, SMITH caused Victim-3 to travel to New York City, attempted to drug Victim-3, and then physically and sexually assaulted her. In or about October 2023, SMITH caused Victim-3 to travel to New York City again, which she did, and drugged and sexually assaulted her. Around this time, SMITH also posted Victim-3’s photographs and personal contact information to a website advertising prostitution services, without Victim-3’s knowledge.
Between approximately 2012 and June 2024, SMITH also received via the internet and possessed a large volume of images and videos on his personal devices that depicted children, including prepubescent children, being sexually abused.
In or about August 2024, after a search warrant was executed at SMITH’s residence, revealing that SMITH possessed child pornography on his electronic devices, SMITH paid Victim-1 thousands of dollars to sign a false document in an attempt to obstruct the investigation. Also in or about August 2024, SMITH solicited other individuals to sign false documents in an attempt to obstruct the investigation.
If you have been victimized by SMITH in any way or have any additional information about his illegal behavior, please call the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI.
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In addition to the prison term, SMITH, 50, of New York, New York, was sentenced to a lifetime of supervised release.
Mr. Clayton praised the outstanding work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Remy Grosbard, Rita Maxwell, Daniel Richenthal, and Joe Zabel are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.
Weill Cornell Medicine Resolves Criminal Investigation with Agreement to Maintain and Enhance Remedial Measures and Procedures to Prevent Sexual Abuse of PatientsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Criminal Division Chief, Amanda Houle, announced today a voluntary compliance agreement (the “Agreement”) under Title III of the Americans with Disabilities Act (“ADA”) with Weill Cornell Medicine (“WCM”), pursuant to which WCM acknowledges that policies and programs during physician Darius Paduch’s tenure at WCM were inadequate to detect, prevent, and respond to the sexual abuse of patients.
“Today’s landmark agreement with WCM is a direct reflection of our Office’s pledge to prioritize combating sexual abuse through a victim-centered approach,” said Criminal Division Chief Amanda Houle. “When victims are front of mind for our core community institutions—including in healthcare—sexual abuse is better detected, reported, and prosecuted so that perpetrators are held responsible and others are deterred. Today’s agreement shows the benefits to victims when we pair criminal accountability for individual perpetrators with institutional obligations to maintain the strongest possible controls to safeguard against future sexual abuse. Thanks to the work of our dedicated Assistant U.S. Attorneys, Darius Paduch is spending his life in prison for his horrific crimes and, importantly, WCM, a leader in healthcare for New Yorkers, is committed to maintaining an industry-leading sexual-abuse prevention program and to self-reporting any future federal crimes involving sexual misconduct to our Office. In addition to requiring continued enhancement of controls and reporting, the agreement requires WCM to commit $30 million and other non-financial support to establish the WCM Institute for Safe Patient Care and Patient Empowerment. We look forward to working with the Institute to set new, higher standards for collaboration among medical institutions, patient safety organizations, regulators, and law enforcement aimed at stopping sexual abuse and ensuring prompt reporting of sexual misconduct in the healthcare system and in our community more generally.”
“Along with U.S. Attorney Jay Clayton, I am proud to announce this agreement as a milestone in our ongoing victim-oriented effort, which is carried out every day by the women and men of the Southern District, including in our Civil Rights and Human Trafficking Unit. In the past 18 months, our Office has charged more than 45 individuals with federal sex crimes, including teachers, licensed therapists, bankers, and others in positions of significant trust, as well as gang members and drug traffickers. Our Office will continue with full force to prosecute perpetrators and to hold institutions to the highest standards in protecting victims.”
“As the public has seen time and again, when medical institutions fail to implement and enforce robust safeguards to protect patients from sexual abuse, victims suffer unspeakable harms, and the public trust in the doctor-patient relationship is undermined,” said U.S. Attorney Jay Clayton. “Today’s agreement sends a strong, clear message to all healthcare institutions: patient sexual abuse should never happen in our healthcare system, and institutions must devote the necessary resources to build and continuously monitor and improve programs that detect, report, and prevent sexual abuse—without exception. The agreement also underscores the commitment of our Office, in particular our Civil Rights and Human Trafficking Unit, to protecting victims from sex crimes in all corners of society. Together with our law enforcement partners, including the FBI and the NYPD, we are working with our schools, hospitals, businesses, government organizations, and other institutions to ensure that processes for identifying predators are improved and victims feel safe coming forward.”
Title III of the ADA prohibits places of public accommodation from discriminating against any individual on the basis of disability. Victims of Darius Paduch’s sexual abuse suffered from certain genetic conditions, as well as sexual and erectile dysfunction, each of which constitutes a “disability” under the ADA. In 2024, following a criminal trial in this District, Paduch was convicted of six counts of inducement to travel to engage in unlawful sexual activity, and five counts of inducement of a minor to travel to engage in unlawful sexual activity, in violation of Title 18, United States Code, Sections 2422(a), (b), and 2. Paduch was sentenced to life imprisonment for his crimes.
The out-of-court Agreement resolves a yearslong criminal investigation during which the U.S. Attorney’s Office determined that over Paduch’s tenure, WCM maintained policies and programs insufficient to detect, prevent, and respond to Paduch’s widespread sexual abuse of patients. Specifically, as detailed in the Agreement announced today, the investigation found, among other things, the following:
- From at least 2009 to 2019, Paduch sexually abused many of his patients—including boys as young as 13 years old. During that time, WCM policy delegated to the now-former Urology Department chair (the “Former Urology Chair”) primary responsibility and authority to investigate staff and patient complaints, as well as the discretion to escalate complaints to the Dean or Vice Dean of the Medical School.
- Between 2012 and 2014, the Former Urology Chair and the WCM Human Resources Department received reports of instances of Paduch using inappropriate sexual language and engaging in inappropriate conduct with colleagues.
- In 2015 and 2016, the Former Urology Chair received two reports from two doctors that Paduch had manually masturbated one patient to become erect for an exam and directed another patient to masturbate while Paduch remained in the room. The Former Urology Chair did not escalate these allegations against Paduch or report them to others at WCM.
- In March 2018, WCM, including the Former Urology Chair, received a complaint alleging that Paduch told a patient to masturbate in his presence to become erect for an exam and showed the patient photographs of other men’s penises during the consultation. WCM assigned that complaint to a WCM employee who had not received training and had no experience in investigating sexual abuse allegations. The Former Urology Chair did not inform the investigator or anyone else at WCM of the prior complaints relating to Paduch.
- In November 2018, an adult male patient reported to the Former Urology Chair that Paduch had engaged in what the patient described as sexual and nonsexual misconduct, including masturbating in front of the patient on Paduch’s boat and sending him lewd electronic messages. The report was assigned to the same inexperienced investigator assigned to handle the March 2018 complaint. As a result of the investigation, WCM ended Paduch’s employment at WCM by not renewing Paduch’s faculty appointment at WCM. WCM sent Paduch’s patients a letter noting that Paduch was no longer practicing at WCM but did not provide the reason for his non-renewal. Further, when the Former Urology Chair received inquiries from a separate medical institution where Paduch was subsequently hired and abused patients, he did not disclose the reason for Paduch’s termination from WCM or disclose any patient complaints.
Since learning of Paduch’s sexual abuse, WCM has paid or agreed to pay victims over $1 billion to settle civil claims to date, and is committing additional funds to address detection, prevention, and reporting of sexual abuse and misconduct in the healthcare setting. To that end, WCM will commit $30 million to create the Institute for Safe Patient Care and Patient Empowerment, which will be dedicated to the adoption of meaningful sexual abuse and misconduct risk mitigation policies, procedures, and practices at healthcare providers in New York and nationwide.
As part of the Agreement, WCM also acknowledged that the policies and programs that WCM had in place at the time of Paduch’s offenses were not adequate to detect, prevent, and respond to sexual abuse of patients and, in fact, failed to detect and sufficiently respond to Paduch’s conduct. WCM has proactively taken significant remedial measures that WCM has committed to maintaining and enhancing during the term of the Agreement. Under the Agreement, WCM will maintain, monitor, and, as necessary or appropriate, enhance such measures, which include a chaperone requirement with routine compliance oversight and monitoring and policy changes to fill governance and procedural gaps regarding the escalation and investigation of patient misconduct complaints. Further, during the term of the Agreement, WCM is required to self-report to the U.S. Attorney’s Office any evidence of a criminal violation involving sexual misconduct. WCM must also conduct three separate internal reviews during the term of the Agreement to evaluate WCM’s sexual misconduct prevention programs. WCM must certify semiannually its compliance with the terms of the Agreement.
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Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with assistance from the Civil Rights Unit in the Civil Division. Assistant U.S. Attorneys Marguerite B. Colson, Elizabeth A. Espinosa, Ni Qian, and David J. Kennedy are in charge of the case.
Member of Bronx Drug Gang Convicted of Racketeering and Attempted Murder in the Shooting of A Baby GirlRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that on Friday, July 24, 2026, a jury found SAMUEL BAUTISTA, a/k/a “Sammy,” guilty of racketeering conspiracy, attempted murder and assault, and additional firearms and drug-related charges. BAUTISTA was found guilty following a two-week trial before U.S. District Judge George B. Daniels and is scheduled to be sentenced on December 2, 2026.
“On the evening of January 19, 2022, Bautista, an armed drug trafficker, shot at a rival dealer but missed, instead striking an 11-month-old baby girl who was seated in a car seat beside her mother in the face,” said U.S. Attorney Jay Clayton. “Somehow, she survived, but with devastating injuries. It was such an outrageous crime that it captured the attention of people across this city and this country the night it occurred. New Yorkers want gun toting criminals off our streets and we hear them. We will not allow armed drug traffickers to take this city from the women and men who are raising their families here. And to the gangs who think the streets of New York are their territory to fight over, we remind you that you can cover your head, you can cover your face, but eventually, we will find you. And when we find you, you will be convicted and you will go to federal prison.”
According to the charging instruments, public court filings, and the evidence presented at trial:
From 2011 to 2023, members of 2860, a violent drug-trafficking organization and street gang based at 2860 Grand Concourse in the Bronx, New York, distributed large quantities of cocaine base, in a form commonly referred to as “crack,” to their customers on the street. Notwithstanding a prior federal drug-trafficking conviction for this very criminal activity, BAUTISTA was released from federal prison in 2016 and resumed armed drug trafficking. At all times, the members of 2860 fought with rival dealers, with whom they clashed on many occasions, including on January 19, 2022, when BAUTISTA shot at a rival dealer and instead hit the baby girl.
A number of BAUTISTA’s co-conspirators and fellow members of 2860 previously pled guilty and are awaiting sentencing, and the rival dealer whom BAUTISTA targeted on January 19, 2022, was also convicted and sentenced on multiple drug and firearms-related charges.
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BAUTISTA, 33, of the Bronx, New York, was convicted of racketeering conspiracy, attempted murder and assault in aid of racketeering, and multiple firearms and drug-related charges. The racketeering conspiracy and multiple firearms and drug-related charges all carry a maximum sentence of life in prison. BAUTISTA faces a combined mandatory minimum sentence of 25 years.
Mr. Clayton praised the victim’s parents for their commitment to obtaining justice for their daughter and the outstanding work of the New York City Police Department and the Federal Bureau of Investigation. Mr. Clayton also thanked the Bureau of Prisons, the New York City Department of Correction, and the Utica Police Department for their assistance.
This case was investigated and prosecuted as part of Project Safe Neighborhoods (“PSN”), the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by the U.S. Attorneys’ Offices in each of the 94 federal districts, PSN is tailored to particular communities to address strategically specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies.
This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Thomas John Wright and Ryan W. Allison are in charge of the prosecution, with the assistance of Paralegal Specialist Sandy Alcantara.
Chief Executive Officer of Steel Manufacturer Pleads Guilty in Connection with $66 Million Fraud SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of DEREK WACHOB for orchestrating a multi-year scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million. WACHOB pled guilty today to one count of wire fraud before U.S. District Judge J. Paul Oetken.
“Derek Wachob portrayed himself as a billionaire and accomplished CEO, but the success he projected was a fiction sustained by fraud,” said U.S. Attorney Jay Clayton. “He defrauded victims—including some of his closest friends—of more than $66 million and used their money to bankroll a lifestyle of luxury cars, vacations homes, private jets, helicopters, and yachts. In New York, we celebrate ambition, hard work, and honest achievement. These are bedrock principles that fueled the growth of our great city. Fraudsters undermine those principles and erode the trust in the fairness of our society. Today’s guilty plea sends a message that fraud will not be tolerated and ensures Wachob faces the consequences of his lies.”
According to the charging documents and statements made in public filings and public court proceedings:
From at least in or about October 2022 through in or about August 2024, WACHOB—the Chief Executive Officer of a large manufacturer of steel pipes based in Sapulpa, Oklahoma (“Company-1”)—engaged in a scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million. To obtain money from each of the victims, WACHOB lied and misled the victims by, among other things, falsely claiming to offer purported business opportunities based on future steel purchases that WACHOB pledged to make. WACHOB used these misrepresentations to take millions of dollars from even some of his closest friends. Instead of using the victims’ money as promised, WACHOB spent the funds to maintain his extravagant lifestyle of expensive cars, vacation homes, private jets, helicopters, and yachts, and prop up Company-1, which was struggling financially and in debt.
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WACHOB, 53, of Sapulpa, Oklahoma, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. WACHOB is scheduled to be sentenced by Judge Oetken on November 17, 2026.
Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Attorney’s Office for the Northern District of Oklahoma for its assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati are in charge of the prosecution.
Bloods Leader Arrested for Racketeering and MurderRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of a four-count Indictment charging CANDICE JOHNSTON, a/k/a “Queen,” with racketeering conspiracy, murder in aid of racketeering, murder through the use of a firearm, and conspiring to traffic firearms in connection with JOHNSTON’s long-running leadership of the Red Life Militia gang, one of the sets of the nationwide Bloods gang. JOHNSTON was arrested this morning and was presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker. The case is assigned to U.S. District Judge John P. Cronan.
“As alleged, Candice Johnston, known as ‘Queen,’ was a leader of a violent set of the Bloods gang calling themselves the Red Life Militia,” said U.S. Attorney Jay Clayton. “During Johnston’s reign, on May 31, 2017, she ordered the brutal robbery and murder of Noel Farrow in the Bronx. The people of the Bronx did not ask for, want, or deserve a destructive, self-proclaimed ‘militia,’ led by criminals in their neighborhood. New Yorkers deserve to live safely in their neighborhoods, free from the influence of gangs like that which Johnston led and glorified. The women and men of this Office will continue to relentlessly pursue and dismantle violent street gangs that jeopardize the safety of our communities.”
“As alleged, Candice Johnston led a violent Bloods set built on murder, armed robbery, gun and narcotics trafficking, promotion of prostitution, and other serious crimes,” said HSI Acting Special Agent in Charge Pete Gizas. “By allegedly directing the robbery and murder of a former drug supplier and receiving illegal firearms trafficked from North Carolina to the Bronx, she stands accused of introducing lethal firepower and bloodshed into a Bronx neighborhood. Together with our law enforcement partners, HSI will do everything in our power to keep New Yorkers safe.”
“Candice Johnston served as the leader of the Bloods’ Red Life Milita, allegedly trafficking guns and drugs across the city, brazenly touting her gang affiliation on social media, and ordering the cold-blooded murder of a drug supplier,” said NYPD Commissioner Jessica S. Tisch. “Her arrest is the direct result of the NYPD’s precision policing strategy at work: dismantling gangs, taking guns off our streets, and holding those who commit violence accountable. I thank HSI and the U.S. Attorney’s Office for the Southern District of New York for their partnership in this case and their continued work to keep New Yorkers safe.”
As alleged in the Indictment, other publicly filed documents, and statements made in court:(1)
JOHNSTON was the leader of the Red Life Militia, a subset of the United Blood Nation (“UBN”), a faction of the nationwide Bloods street gang. The Red Life Militia gang engaged in, among other activities, acts involving murder, assault, gun trafficking, narcotics trafficking, promotion of prostitution, and robberies. JOHNSTON frequently publicized her leadership in Red Life Militia through social media, displaying gang signs, tattoos, and other insignia of the gang, some of which include the following:
On May 31, 2017, JOHNSTON ordered a subordinate member of her gang to rob and murder Noel Farrow—a former drug supplier to the gang—in the Bronx, New York, which resulted in Farrow’s death from gunshot wounds.
JOHNSTON also received firearms that had been illegally obtained in North Carolina and transported to JOHNSTON in the Bronx.
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JOHNSTON, 44, of the Bronx, New York, is charged with racketeering conspiracy, which carries a maximum sentence of life in prison; murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; murder through the use of a firearm, which carries a maximum sentence of life in prison or death; and conspiracy to receive firearms from out of state, which carries a maximum term of five years in prison.
The statutory minimum and maximum penalties are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of Special Agents and Task Force Officers of HSI, the NYPD and their Intelligence Section, 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. Mr. Clayton also thanked the Federal Bureau of Investigation for its invaluable assistance.
The case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant United States Attorneys Alexandra S. Messiter and Michael R. Herman 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.
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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 herein constitutes only allegations and every fact described should be treated as an allegation.
$3.85 Million Settlement of Case Against Labor Unions for Improper Receipt of Paycheck Protection Program (“PPP”) LoansRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that International Union of Journeymen and Allied Trades (“IUJAT”), United Service Workers Union, IUJAT National Union (“USWU”), Home Healthcare Workers of America, IUJAT (“HHWA”), Service Professionals Union Local 726 IUJAT (“LOCAL 726”), and United Welfare Fund - Welfare Division (“UWF”) (collectively, the “Defendants”) agreed to pay $3,850,000 to resolve allegations that they violated the False Claims Act by falsely certifying that they were eligible for Paycheck Protection Program (“PPP”) loans.
The Defendants are organized as tax-exempt non-profit organizations pursuant to Section 501(c)(5) of the Internal Revenue Code. The PPP was established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to assist small businesses nationwide adversely impacted by the COVID-19 pandemic. Administered by the SBA, the program provided forgivable loans to eligible borrowers. In April 2020, Section 501(c)(5) non-profit organizations were not eligible to apply for or receive PPP loans. The settlement resolves claims that the Defendants violated the False Claims Act by falsely certifying their eligibility for PPP loans because, as 501(c)(5) non-profit organizations, the Defendants were ineligible for the loans at the time they applied.
“The Paycheck Protection Program was created to help eligible small businesses weather the economic strain of the pandemic through forgivable loans,” said U.S. Attorney Jay Clayton. “The defendants here applied for and received millions of dollars in taxpayer funds for which they were not eligible. This Office is committed to protecting taxpayer dollars and recovering public funds that flow to those who do not qualify.”
As alleged in the Complaint filed in Manhattan federal court:
IUJAT, USWU, HHWA, and LOCAL 726 are labor unions, and UWF is an employee benefit plan that provides welfare benefits to members of these labor unions. Between April 16 and April 20, 2020, each Defendant submitted, through its authorized representative, an application for a PPP loan. In total, the Defendants received $3,316,966 in PPP loans. Each Defendant certified on its loan application that it was eligible to receive the loan under the rules in effect at the time, and each Defendant later applied for and obtained full forgiveness of its loan.
At the time they applied in April 2020, the Defendants were 501(c)(5) non-profit organizations and were therefore ineligible to receive PPP loans. Before applying, the Defendants were aware that an SBA regional employee had advised their contact at a bank that only 501(c)(3) and 501(c)(19) non-profit organizations were eligible for PPP loans. Nevertheless, each Defendant decided to apply for and accept a loan.
The Defendants, at a minimum, acted with reckless disregard or deliberate ignorance of the fact that they were ineligible for the PPP funds at the time they applied. In fact, the Defendants became aware on April 9, 2020, that the AFL-CIO—the nation’s largest federation of unions—had advised that labor unions were ineligible for PPP loans.
As part of the settlement, the Defendants admitted and accepted responsibility for certain conduct alleged by the United States, including the following:
- Each Defendant certified on its PPP borrower loan application that it was eligible to receive the loan under the rules of the SBA in effect at the time the application was submitted.
- Before applying for the PPP loans, the Defendants were aware that an SBA regional employee had advised their contact at a bank that only 501(c)(3) and 501(c)(19) non-profit organizations were eligible for PPP loans. The Defendants are not 501(c)(3) and 501(c)(19) non-profit organizations.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
Mr. Clayton praised the Small Business Administration’s Office of General Counsel for its assistance with this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Mark Osmond is in charge of the case.
Two Auto Engineers Charged with Insider TradingRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging MICHAEL STAMP and MARCUS PLANK with securities fraud. The charges arise from an alleged insider trading scheme in which STAMP and PLANK used confidential information belonging to their then-employer, Volkswagen Group, concerning a joint venture between Volkswagen and Rivian Automotive, Inc. to make hundreds of thousands of dollars in illegal profits. STAMP and PLANK were arrested today and will be presented in the U.S. District Court for the Northern District of California. The case has been assigned to U.S. District Judge Katherine Polk Failla.
“Michael Stamp and Marcus Plank’s alleged exploitation of their employer’s confidential information allowed them to make more than $300,000 in illegal profits,” said U.S. Attorney Jay Clayton. “When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently. Insider trading is a crime that New Yorkers want pursued with vigor. Its effects ripple through the financial system, harming ordinary investors and eroding public confidence. Today’s charges underscore the commitment of this Office and our law enforcement partners to protecting the integrity of our markets and holding accountable those who choose to violate the law.”
“The case of Michael Stamp and Marcus Plank shows the FBI's commitment to protecting the integrity of our financial markets,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The co-defendants are alleged to have engaged in insider trading for personal gain, and we will work with our partners to identify those who threaten the United Stated economic system.”
According to the allegations contained in the Indictment:(1)
Between April and July 2024, STAMP and PLANK engaged in a scheme to trade in the securities of Rivian Automotive, Inc. based on material nonpublic information concerning a multibillion-dollar joint venture between Rivian and Volkswagen Group. STAMP and PLANK were employees of a Volkswagen subsidiary and worked in the United States on temporary assignment form Germany. Through their positions, they gained access to confidential, nonpublic information concerning Volkswagen’s ongoing negotiations with Rivian about a potential joint venture. Despite owing duties of trust and confidence to their employer, STAMP and PLANK began purchasing options and equity positions in Rivian shortly after learning of the joint venture discussions. On June 25, 2025, Rivian and Volkswagen publicly announced their joint venture, and Rivian’s share price rose 23% the following day. STAMP and PLANK then sold their Rivian positions, with STAMP realizing approximately $250,000 in profits, PLANK realizing at least approximately $50,000 in profits, and PLANK’s close family member realizing approximately $12,000 in profits. STAMP and PLANK understood their actions were illegal. For example, eight days prior to the announcement of the joint venture, STAMP searched “statute of limitations insider trading,” and following the announcement PLANK’s close family member searched, in German, “how is insider trading prosecuted?”
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STAMP, 31, of San Jose, California, and PLANK, 45, of San Jose, California, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; 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 defendants will be determined by the judge.
Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Securities and Exchange Commission.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Shiva H. Logarajah and Daniel G. Nessim is in charge of the prosecution.
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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 herein constitute only allegations, and every fact described should be treated as an allegation.
Founder of Private Equity Firm Pleads GuiltyRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that JAY LUCAS, the founder and managing partner of Lucas Brand Equity LLC (“LBE”), a private equity fund based in Manhattan, pled guilty to securities fraud, investment adviser fraud, wire fraud, and money laundering in connection with a scheme to raise over $50 million from investors by falsely representing that their money would be invested in early-stage health and wellness companies. Instead, LUCAS diverted much of that money to cover personal expenses, promote unrelated ventures, and make Ponzi-like payments to earlier investors. LUCAS pled guilty today before U.S. Magistrate Judge Robyn F. Tarnofsky.
“Lucas lied to investors to induce them into investing millions of dollars in private equity funds that he created, promising to invest their money in emerging companies in the health and wellness space,” said U.S. Attorney Jay Clayton. “In reality, Lucas used much of the money to pay for personal expenses and ventures entirely unrelated to the funds, and to make Ponzi-like payments to other investors. Today’s plea reflects the continued commitment of this Office and our law enforcement partners to holding accountable investment advisers who abuse their investors’ trust to illegally enrich themselves.”
As alleged in the Indictment:
LUCAS is the founder and managing partner of LBE and three private funds: Lucas Brand Equity LP (“Fund One”), L.B. Equity Emerging Growth LP (“Fund Two”), and L.B. Equity Wellness Growth L.P. (“Fund Three”). Since 2017, LUCAS has defrauded investors by, among other things, systematically misappropriating their funds.
LUCAS told investors that LBE’s “core strategy is to invest in these small to mid-size emerging brands, provide value added services to differentiate them and catalyze growth to a sufficient scale for exit.” LUCAS raised over $50 million from investors and, instead of using the money as he promised, spent much of it on personal expenses, including alimony, rent, a vanity newspaper project in his hometown, and political consultants. He also used new investor money to pay earlier investors in Ponzi-like fashion, enriching himself while starving the Funds and portfolio companies of capital. In addition, LUCAS funneled investor money to Immunocologie, a luxury skincare business run by LUCAS’s wife, without disclosing that conflict of interest. Much of the money for Immunocologie was then spent on trips, social events, and other unprofitable ventures. Moreover, LUCAS arranged for LBE, not the Funds, to take majority ownership interest in Immunocologie, giving himself and not his clients an equity interest in the business.
LUCAS’s misconduct left the Funds chronically undercapitalized and unable to cover basic fund expenses, including salaries for LBE employees. Internally, employees continued to express frustration about LUCAS’s misuse of investor money, writing that LUCAS’s spending was “not spending on LBE,” was “literally fraudulent,” and was “a huge betrayal of investor trust and most likely illegal.”
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LUCAS, 71, of Portsmouth, New Hampshire, pled guilty to one count of securities fraud, one count of wire fraud, and one count of money laundering, each of which carries a maximum prison term of 20 years, and one count of investment adviser fraud, which carries a maximum prison term of five years.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson and David J. Robles are in charge of the prosecution.
Witness Pleads Guilty to Lying Under Oath at Federal Murder TrialRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that ASHANTI WASHINGTON, a/k/a “Shani Boni,” pled guilty today before U.S. Magistrate Judge Robyn F. Tarnofsky to committing perjury at the March 2025 federal criminal trial of United States v. Kevin Perez, in which Perez, who goes by the name “Kay Flock,” was on trial for racketeering, murder, and firearm offenses. The case is assigned to U.S. District Judge George B. Daniels.
“As she has now admitted, Ashanti Washington swore an oath to tell the truth while testifying in federal court, but then lied to smear a murder victim and help a gang leader try to escape accountability for his violent crimes,” said U.S. Attorney Jay Clayton. “Truth under oath is central to our system of justice, and this Office is committed to protecting it.”
According to the Indictment, statements made in public filings, and public court filings:
On March 10, 2025, trial began in the matter of United States v. Kevin Perez, 23 Cr. 99 (LJL). At the trial, Perez faced charges of racketeering conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, and possession, use, brandish, and discharge of a firearm during and in relation to the attempted murder in aid of racketeering. On March 20, 2025, the jury returned guilty verdicts as to racketeering conspiracy, attempted murder, and the firearm discharge count, and returned a not guilty verdict with respect to the murder count. Perez was sentenced principally to 30 years in prison by the U.S. District Judge Lewis J. Liman.
On March 17 and 18, 2025, Washington testified at Perez’s trial as a witness during the defense case and lied under oath about central facts relevant to the murder charges that Perez was facing. At trial, Perez claimed that he shot and killed the victim out of self-defense.
Washington, who was with Perez at the time of the killing, falsely testified that the murder victim had threatened to shoot and kill Perez. WASHINGTON’s false testimony had an immediate and direct impact on evidentiary rulings in the trial.
As WASHINGTON has now admitted, the victim in fact never threatened to shoot or kill Perez.
* * *
WASHINGTON, 24, of the Bronx, New York, pled guilty to one count of perjury at a federal criminal trial, which carries a maximum term of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the work of the Department of Homeland Security – Homeland Security Investigations and the New York City Police Department.
This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Michael Herman, Patrick R. Moroney, and Ni Qian are in charge of the prosecution.
New York Man Charged with Arson After Setting Fire at Entrance of Federal BuildingRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Regional Director of the U.S. Federal Protective Service (“FPS”), Robert D. Sooter, announced charges against ANDREW ARRABACA after he set a fire outside of 26 Federal Plaza, sending flames and smoke up the outside of the building. ARRABACA was arrested yesterday and presented today before U.S. Magistrate Judge Robyn F. Tarnofsky.
“As alleged, the defendant caused a scene of destruction and mayhem by setting a fire at the entrance to a federal building in lower Manhattan which houses thousands of federal employees and receives hundreds of visitors daily,” said U.S. Attorney Jay Clayton. “I am thankful for the brave, swift response of our law enforcement partners who stopped the defendant before he could cause greater harm. Once again, our bravest ran to the fire. Anyone who commits reckless acts that endanger New Yorkers and federal employees on federal property will be subject to serious federal criminal charges.”
“Andrew Arrabaca allegedly attempted to disrupt and harm the individuals and infrastructure of 26 Federal Plaza,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “His alleged acts appear to have been motivated by his anti-Government and anti-ICE beliefs. His unlawful conduct was immediately thwarted by the heroic response of the Federal Protective Service Officers, NYPD Officers, FBI Special Agents, and FBI Police Officers. FBI New York has zero tolerance for violence targeted at federal employees who choose to serve all Americans.”
“As alleged in the complaint, Andrew Arrabaca traveled to a government building in Lower Manhattan armed with weapons and explosive devices,” said NYPD Commissioner Jessica S. Tisch. “Because of the quick and brave actions of law enforcement, no one was seriously injured, and Arrabaca was taken into custody. This incident is a stark reminder of the dangers that law enforcement officers face and the importance of the NYPD’s work with our federal partners to keep the people of New York City safe.”
“The Federal Protective Service is dedicated to safeguarding federal property and ensuring the safety of all who work in and visit these facilities,” said FPS Regional Director Robert D. Sooter. “Our mission is to protect federal buildings, their occupants, and visitors by providing comprehensive law enforcement services. Safety is a top priority; we remain committed to maintaining secure environments that support the vital work of our nation’s government.”
As alleged in the Complaint:(1)
On the morning of July 20, 2026, ARRABACA set off several fireworks in front of the Jacob K. Javits Federal Building at 26 Federal Plaza and shot a BB rifle in the direction of the building. ARRABACA then poured a bucket of flammable liquid onto the ground outside one of the building entrances and ignited the liquid. The liquid exploded into flames. ARRABACA was captured on video footage shooting the BB gun, pouring and igniting the liquid, and running from the scene, as pictured below in still images from surveillance videos:
After setting the fire, ARRABACA retrieved a box of fireworks from a utility wagon that he had wheeled to the area and threw the box into the fire. Law enforcement agents apprehended and arrested ARRABACA just as an explosion sounded from the direction of the fire.
ARRABACA was wearing military-style camouflage pants, a belt with tactical pouches containing BB pellets and carbon dioxide cartridges, and a helmet bearing several phrases, including, “Kill yourself.” A cross-body bag containing a knife and matches was concealed under ARRABACA’s clothing, and a New York driver’s license for ARRABACA was recovered from ARRABACA’s person.
As pictured below, after ARRABACA’s arrest, law enforcement agents searched the wagon and recovered numerous items, including a BB rifle and a pellet rifle, a machete, two hatchets, a mallet, a hammer, and what appeared to be several fireworks, including a cylindrical, multi-shot consumer firework with a printed label reading “Nuclear Warhead” and a black and yellow radiation symbol. A sign on the wagon bore the phrase “ICE Off Our Streets.”
During a recorded, Mirandized post-arrest interview, ARRABACA stated, in substance and in part, that he was motivated to act by anti-government beliefs, including a belief that government authorities were unlawfully harming people, and that he had targeted the building entrance because he previously observed that it was a busy one.
At the time of ARRABACA’s actions, the entrances to the Federal Building were guarded by law enforcement officers and/or government-contracted security guards and there were numerous individuals in the immediate vicinity of the Federal Building. As pictured below, some individuals were just feet away from ARRABACA as he poured and lit a flammable liquid, creating a fireball.
Multiple individuals were evaluated for injuries, including at least one victim who appeared to have been hit with debris from the fire and/or explosion, resulting in a gash on the back of the victim’s head.
* * *
ARRABACA, 43, of Poughkeepsie, New York, is charged with destruction of property owned or leased by the United States by means of fire or explosives and causing personal injury or substantial risk of injury, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of 40 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. Clayton praised the outstanding response of the FPS and the FBI New York Field Office. Mr. Clayton also praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section.
This case is being handled by the Office’s National Security and International Narcotics Unit and General Crimes Unit. Assistant U.S. Attorneys Jane Chong, Samantha Fry, and Varun A. Gumaste are in charge of the prosecution, with assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section of the Department of Justice’s National Security Division.
^
As the introductory phrase signifies, the entirety of the Complaint to date constitutes only allegations, and every fact described herein should be treated as an allegation.
Leaders, Members, and Associates of BB7 Trinitarios Charged in 15-Count Indictment for Five MurdersRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, Westchester County District Attorney, Susan Cacace, Bronx District Attorney, Darcel D. Clarke, Bergen County Prosecutor, Mark Musella, and Commissioner of the Westchester County Department of Public Safety, Terrance Raynor, announced today the unsealing of a 15-count Indictment charging 11 defendants (the “BB7 Defendants”) with racketeering conspiracy in connection with their membership in or association with the “Bad Boys” (“BB7”) set of the Trinitarios street gang, as well as with a spate of other BB7-related violent crimes committed between September 2023 and September 2025—including five murders and multiple assaults and armed robberies. A 12th defendant, JAROL LEDESMA, a/k/a “El Nueve,” a/k/a “Lil Nueve,” was charged with Hobbs Act robbery and interstate stalking offenses in connection with the gunpoint robbery of a prominent international music artist, which was allegedly carried out with members and associates of BB7 in June 2025. The case is assigned to U.S. District Judge Philip M. Halpern.
“As alleged, the BB7 Trinitarios, operating from their historical headquarters in the Bronx, terrorized communities in New York City, Westchester, and northern New Jersey, night after night,” said U.S. Attorney Jay Clayton. “This indictment reflects a broad-based effort by SDNY and our dedicated federal and local partners to stop the violence and bring relief to affected communities across the tri-state area. Collectively, we are committed to holding gang leaders and their deadly associates accountable for their truly brutal conduct. This is what our New York families want us to do—and we applaud the FBI, the Westchester County Police Department, the New York City Police Department, the Westchester County District Attorney’s Office, the Bronx District Attorney’s Office, the Bergen County Prosecutor’s Office, the Essex County Prosecutor’s Office, the Westchester County Department of Public Safety, the Passaic County Prosecutor’s Office, and the Manhattan District Attorney’s Office for their efforts to bring justice and safety to the streets of the New York metropolitan area.”
“Members of the BB7 criminal organization allegedly carried out a campaign of violence that left victims and families suffering unimaginable loss,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Today's outcome sends a clear message: this type of violence will never be tolerated in New York. The FBI New York Safe Streets Task Force remains steadfast in our mission to dismantle violent gangs, protect the American public, and deliver justice for the victims.”
“These defendants, members of the Trinitarios gang, took part in a wave of violence and crime that claimed multiple lives and terrorized neighborhoods,” said NYPD Commissioner Jessica S. Tisch. “This takedown is the result of the NYPD’s precision policing strategy and our relentless work targeting dangerous gangs and guns. I thank our NYPD investigators and law enforcement partners for their commitment to dismantling these groups and making our streets safer.”
“Dismantling this network of organized violent criminals would hardly have been possible without one of the most extensive interagency partnerships in Westchester’s recent history,” said Westchester County DA Susan Cacace. “I am proud of the significant role my office played in identifying and apprehending the individuals who murdered Ariela Mejia-Polanco last year in an act of unconscionable violence. Either the highways of this county belong to the criminal gangs, or they belong to the public; through these charges, we are reaffirming that the rights of the law-abiding public will always come first. We can never allow our streets to be overtaken by organized criminal activity, and I thank all of our interagency partners for working in tandem to ensure this remains a durable promise.”
“I commend the outstanding work of the members of my office, the Southern District of New York, the New York City Police Department, and the FBI,” said Bronx DA Darcel D. Clarke. “Their close collaboration resulted in the federal indictment of these defendants and demonstrates the power of coordinated law enforcement. By holding violent offenders accountable, we are helping make our neighborhoods safer. To the families of the three men who lost their lives in these Bronx cases—Frankelis Tavarez, Adam Waldropt, and Gabriel Alvarez—I hope you find some measure of comfort in knowing that local and federal law enforcement are working together tirelessly to seek justice for your loved ones. My office remains committed to pursuing justice with integrity while protecting our communities from violent crime.”
“Organized street gangs are not just a local problem,” said Bergen County Prosecutor Mark Musella. “They are a regional public safety threat. When criminals are willing to cross state lines to destroy lives, our response must be equally coordinated, equally determined, and completely relentless. I am proud to say that in this case, cooperation among agencies and a dogged commitment by all involved brought us to this moment.”
“The scope of work that was done by police and prosecutors to bring down this criminal enterprise is nothing short of outstanding,” said Westchester County Department of Public Safety Commissioner Terrance Raynor. “I would like to commend the detectives from our General Investigations Unit, Forensic Investigations Unit, and our Real Time Crime Center—and all of our law enforcement partners—for their exemplary work. Inter-agency collaboration and technology were the keys to a successful conclusion in this particular homicide investigation.”
As alleged in the Indictment and other documents filed in federal court:(1)
From at least in or about September 2023 through September 2025, the BB7 Defendants, and others known and unknown, were members and associates of BB7, a “set” of the Trinitarios street and prison gang. Members and associates of BB7 engaged in, among other activities, acts involving murder, assault, robbery, carjacking, narcotics trafficking, and wire fraud in and around the greater metropolitan area of New York City, including the Bronx and northern New Jersey. In addition to racketeering conspiracy, the Indictment charges all of the BB7 Defendants with additional offenses, including:
On or about March 30, 2024, in the Bronx, SOSA and MANON murdered Frankelis Tavarez.
From on or about June 27, 2025, through on or about June 28, 2025, several of the defendants, including MARTHA, MERCEDES MARTE, PERALTA GOMEZ, PEÑA, and LEDESMA, used, among other means, a GPS tracker to stalk several victims by car from Massachusetts through Westchester County, the Bronx, and Manhattan to a hotel parking lot in the vicinity of Fort Lee, New Jersey. There, while brandishing multiple firearms, they robbed a prominent international music artist in the middle of a U.S. tour of, among other things, high-value jewelry.
On or about July 28, 2025, PLACENCIA, MERCEDES MARTE, PERALTA GOMEZ, CARBUCCIA, and PEÑA organized, planned, and carried out a retaliatory shooting targeting rival gang members in the vicinity of Paterson, New Jersey.
On or about July 28, 2025, at a car meet in the Bronx, MARTINEZ murdered Gabriel Alvarez and Adam Waldropt.
On or about August 2, 2025, in the vicinity of Newark, New Jersey, SOSA, PLACENCIA, MERCEDES MARTE, PERALTA GOMEZ, ABAD RIVAS, CARBUCCIA, and PEÑA murdered Alvis Perez Liriano.
On or about August 16, 2025, in the Bronx, MARTHA, MERCEDES MARTE, and CARBUCCIA planned, directed, and conducted an attempted armed robbery, during which CARBUCCIA and other members and associates of BB7 used firearms to shoot and seriously injure two victims.
On or about August 17, 2025, in the vicinity of Mount Vernon, New York, MARTHA, MERCEDES MARTE, PERALTA GOMEZ, ABAD RIVAS, CARBUCCIA, and PORTES GUABA, together with other members and associates of BB7, attempted to commit an armed carjacking of a black Mercedes-Benz G63 AMG SUV driven by Ariela Mejia-Polanco north from upper Manhattan through the Bronx into Westchester, where they shot and killed Mejia-Polanco during a high-speed pursuit on the Cross County Parkway.
* * *
A chart containing the names, charges, and minimum and maximum penalties for the defendants is set forth below.
The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the FBI. He also thanked the NYPD, the Westchester County District Attorney’s Office, the Bronx District Attorney’s Office, the Bergen County Prosecutor’s Office, the Essex County Prosecutor’s Office, the Westchester County Department of Public Safety, the Passaic County Prosecutor’s Office, the Paterson Police Department, and the Manhattan District Attorney’s Office.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Carmi Schickler, John Sarlitto, and Christopher Morel are in charge of the prosecution. Assistant U.S. Attorneys Timothy Ly and Patrick Moroney of the Office’s Violent Organizations and Crime Unit investigated the March 2024 murder of Frankelis Tavarez.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent until proven guilty.
CHARGE
DEFENDANTS
MINIMUM AND MAXIMUM PENALTIES
Count One
Racketeering Conspiracy
Title 18, United States Code, Section 1962(d)
CHELDRID SOSA
ERICK PLACENCIA
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
MANUEL ABAD RIVAS
WILFREN CARBUCCIA
JEILIN PORTES GUABA
JAVIER PEÑA
ANGEL MANON
DARWIN MARTINEZ
Maximum: life in prisonCount Two
Murder in Aid of Racketeering
Title 18, United States Code, Sections 1959(a)(1), and 2
CHELDRID SOSA
ANGEL MANON
Maximum: life in prison or death
Minimum: life in prison
Count Three
Interstate Stalking
Title 18, United States Code, Sections 2261A(1), 2261(b)(3), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
JAVIER PEÑA
JAROL LEDESMA
Maximum: 10 years in prisonCount Four
Interstate Stalking
Title 18, United States Code, Sections 2261A(2), 2261(b)(3), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
JAVIER PEÑA
JAROL LEDESMA
Maximum: 10 years in prisonCount Five
Hobbs Act Robbery
Title 18, United States Code, Sections 1951, and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
JAVIER PEÑA
JAROL LEDESMA
Maximum: 20 years in prisonCount Six
Conspiracy to Commit Hobbs Act Robbery
Title 18, United States Code, Section 1951
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
JAVIER PEÑA
JAROL LEDESMA
Maximum: 20 years in prisonCount Seven
Firearm Use, Carrying, and Possession
Title 18, United States Code, Sections 924(c)(1)(A)(i) and (ii), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
JAVIER PEÑA
JAROL LEDESMA
Maximum: life in prison
Minimum: seven years in prison, which must be consecutive to any other term imposed.
Count Eight
Attempted Murder in Aid of Racketeering
Title 18, United States Code, Sections 1959(a)(5), and 2
ERICK PLACENCIA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
WILFREN CARBUCCIA
JAVIER PEÑA
Maximum: 10 years in prisonCount Nine
Murder in Aid of Racketeering
Title 18, United States Code, Section 1959(a)(1)
DARWIN MARTINEZMaximum: life in prison or death
Minimum: life in prison
Count Ten
Murder in Aid of Racketeering
Title 18, United States Code, Sections 1959(a)(1), and 2
DARWIN MARTINEZMaximum: life in prison or death
Minimum: life in prison
Count Eleven
Murder in Aid of Racketeering
Title 18, United States Code, Sections 1959(a)(1), and 2
CHELDRID SOSA
ERICK PLACENCIA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
MANUEL ABAD RIVAS
WILFREN CARBUCCIA
JAVIER PEÑA
Maximum: life in prison or death
Minimum: life in prison
Count Twelve
Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury in Aid of Racketeering
Title 18, United States Code, Sections 1959(a)(3), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
WILFREN CARBUCCIA
Maximum: 20 years in prisonCount Thirteen
Firearm Use, Carrying, and Possession
Title 18, United States Code, Sections 924(c)(1)(A)(i), (ii), and (iii), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
WILFREN CARBUCCIA
Maximum: life in prison
Minimum: 10 years in prison, which must be consecutive to any other term imposed.
Count Fourteen
Murder in Aid of Racketeering
Title 18, United States Code, Sections 1959(a)(1), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
MANUEL ABAD RIVAS
WILFREN CARBUCCIA
JEILIN PORTES GUABA
Maximum: life in prison or death
Minimum: life in prison
Count Fifteen
Attempted Carjacking Resulting in Death
Title 18, United States Code, Sections 2119(3), and 2
JUSTIN MARTHA
MICHAEL MERCEDES MARTE
JOSE PERALTA GOMEZ
MANUEL ABAD RIVAS
WILFREN CARBUCCIA
JEILIN PORTES GUABA
Maximum: life in prison or death^
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.
Two Key Members of Chinese Money Laundering Network Charged with Laundering $43 Million in Investment Fraud ProceedsRead the Press Release
A New York man and woman made an initial appearance today in Brooklyn, New York on charges of conspiracy to launder money derived from cyber investment fraud scams.
According to the indictment unsealed today, between 2020 and 2022, Zhuoying Chen, 27, of Brooklyn, New York and Haojie Zhang, 38, of Queens, New York managed a network of more than a dozen individuals based in Queens and Brooklyn, who opened 140 bank accounts in the name of approximately 45 shell companies to launder at least $43 million in proceeds of investment scams. Then, Chen and Zhang allegedly conspired with China-based co-conspirators to transfer the funds involved in the fraud schemes abroad.
According to the indictment, the fraud schemes consist of perpetrators contacting victims via messaging services or social media applications. The perpetrators would initiate relationships with the victims and gain their trust, convincing victims to send money for lucrative investment opportunities. The perpetrators would show the victims fake profits on the purported investment and encourage the victims to invest more. The perpetrators would then steal the victim’s funds.
“As alleged in the indictment, the defendants laundered fraud proceeds, enabling scammers to continue to victimize Americans and deprive them of their hard earned money,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Dismantling Chinese money laundering networks that support investment fraud schemes is critical to protecting Americans. The Criminal Division will relentlessly pursue the financial networks that fuel and profit from these fraud schemes.”
“As alleged, the defendants were key members of a sophisticated money laundering network that funneled over $40 million in victim funds to bank accounts in China,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Our Office will continue in its strong tradition of holding accountable anyone who seeks to prey on vulnerable victims with investment fraud schemes.”
“The defendants’ alleged operation laundered more than $40 million from American victims and deposited them directly in Chinese accounts overseas,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI’s New York Field Office. “The FBI is committed to working alongside our federal partners to dismantle scam compounds that seek to steal the hard-earned money of our citizens.”
“For nearly two years, these two Chinese nationals allegedly ran a sophisticated, illicit network that laundered funds stolen from unsuspecting victims’ life savings,” said Acting Executive Associate Director John A. Condon of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). “Thanks to the dedicated efforts of HSI and our partners on the Homeland Security Task Force, this dangerous criminal enterprise has been exposed. HSI special agents remain relentless in their pursuit to dismantle money laundering networks and bring to justice anyone who seeks to profit from defrauding hard-working Americans.”
“Today’s indictment shows we’re not backing down against fraudsters who target innocent people — justice is coming for those who steal from hardworking Americans,” said Special Agent in Charge Harry T. Chavis Jr. of IRS Criminal Investigation (IRS-CI) New York. “This case reflects how IRS‑CI and our partners work side‑by‑side to uncover money‑laundering networks and protect the public. Together, we’re pushing forward to ensure Americans’ hard‑earned money is safe from schemes like these.”
“Investment fraud schemes exploit the trust of victims through false promises of favorable returns,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS)’s New York Division. “The US Postal Inspection Service is committed to investigating fraud and protecting the community from those who seek to profit through deception.”
The charge of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison.
The case is being investigated by FBI New York, HSI New York, IRS-CI New York, and USPIS New York.
Trial Attorneys Claire Galasso, David Ginensky, and Adrienne Rosen of the Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorneys Benjamin Weintraub and David Berman for the Eastern District of New York are prosecuting this case. MNF Financial Investigator Sheila Olander supported the investigation alongside former MNF Financial Investigator Kelly O’Mara.
The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.
MNF’s Money Laundering and Forfeiture Unit investigates and prosecutes sophisticated money laundering schemes involving financial facilitators, gatekeepers, and other individuals and entities laundering criminal proceeds, and litigates complex civil forfeiture cases to recover assets on behalf of victims.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Correctional Officer Charged with Sexual Abuse of an Inmate at FCI OtisvilleRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, and Director of the Federal Bureau of Prisons (“BOP”), William K. Marshall III, announced today the unsealing of an Indictment charging KYLE BROWN, a former federal correctional officer with the BOP, with three counts of sexual abuse of a ward for engaging in sexual acts with an inmate he was responsible for guarding. BROWN was arrested this morning and presented before U.S. Magistrate Judge Victoria Reznik. The case is assigned to U.S. District Judge Philip M. Halpern.
“Sexual abuse will be met with federal charges throughout our society; it has no place anywhere and victims deserve protection everywhere,” said U.S. Attorney Jay Clayton. “When a correctional officer abuses their power and harms an inmate, it is not only a violation of federal law—it is a betrayal of the trust that New York families place in our institutions. We will continue to protect victims, pursue the truth, and hold accountable anyone who abuses their power for their own sexual gratification.”
“As alleged, Kyle Brown abused his authority to engage in sexual acts with an inmate under his protection,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI is committed to holding corrupt civil servants accountable.”
“The safety and security of federal prisons are of the utmost importance, and the DOJ OIG vigorously investigates allegations of abuse of inmates by Federal Bureau of Prisons staff to ensure that those who break the law and the public’s trust are held accountable,” said DOJ OIG Special Agent in Charge Ryan T. Geach.
“The allegations in the case represent a profound abuse of authority and a betrayal of public trust,” said BOP Director William K. Marshall III. “Anyone who exploits their position of authority disgraces this profession and has no place in the Federal Bureau of Prisons. Working alongside our law enforcement partners, we will pursue anyone who violates the law and ensure they are held accountable.”
According to the allegations in the Indictment and other public filings:
Between in or about 2024 and on or about July 1, 2026, BROWN was employed as a federal correctional officer at Federal Correctional Institution, Otisville (“FCI Otisville”). On three occasions between December 26, 2025, and April 4, 2026, BROWN engaged in anal and/or oral sex with an inmate who was incarcerated at FCI Otisville and over whom BROWN had authority.
* * *
BROWN, 27, of Newburgh, New York, is charged with three counts of sexual abuse of a ward, which carries a maximum sentence of 15 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the FBI and DOJ OIG, as well as the FBI Hudson Valley White Collar Crime Task Force and Otisville FCI Special Investigative Swift Response.
The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division. Assistant U.S. Attorneys Christopher Morel and Madison Reddick Smyser are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rikers Island Correction Officer Sentenced to 15 Months in Prison for Making False Statements to Obtain Workers' Compensation Benefits Following Use-Of-Force IncidentsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that TODD FAUSTIN, a former correction officer at Rikers Island, was sentenced today to 15 months in prison by U.S. District Judge Lewis J. Liman for making false statements relating to healthcare matters in connection with use-of-force incidents that took place within Rikers Island. As part of his sentence, FAUSTIN was ordered to pay $370,336.79 in restitution and $370,336.79 in forfeiture.
“Todd Faustin lined his own pockets by exploiting one of the most sensitive interactions in our justice system: the use of physical force against prisoners,” said U.S. Attorney Jay Clayton. “Our justice system relies on correction officers to act safely and honestly while serving in our prisons. Today’s sentence demonstrates that when officers abuse the system and undermine New Yorkers’ trust, they will be held criminally accountable.”
According to the Indictment, plea agreement, and statements made in court:
The New York State Workers’ Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including employees of the New York City Department of Correction (“DOC”). Payments made by the Board to DOC employees are paid from the New York City Treasury. For years, FAUSTIN was employed by the DOC as a correction officer and was assigned to work at Rikers Island. During that time, FAUSTIN falsely claimed that he was injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force. Rather than approaching use-of-force incidents with the gravity and sensitivity that such moments deserve, the defendant actively sought out these incidents and attempted to instigate them to steal money from the workers’ compensation system.
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In addition to the prison term, FAUSTIN, 43, of New York, New York, was sentenced to one year of supervised release and ordered to pay restitution and forfeiture.
Mr. Clayton praised the outstanding work of the New York City Department of Investigation, the New York State Office of Inspector General, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.
The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit and the Public Corruption Unit. Assistant U.S. Attorneys Kaiya Arroyo and Stephanie Simon are in charge of the prosecution.