Eastern District of New York

Earlier today, in federal court in Brooklyn, Andre Prince was sentenced by United States Circuit Judge Denny Chin to 24 months in prison for his participation in a fraudulent moving company scheme.  Prince was convicted in December 2023 of conspiracy to commit wire fraud following a one-week trial.  As part of the sentence, Prince was ordered to pay forfeiture in the amount of $100,000.   

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, Northeastern Region (DOT-OIG), announced the sentence.

“The defendant enticed victims to use the moving companies he worked for and then held their belongings hostage to substantially higher prices and the threat of auctioning them off unless they agreed to the fraudulent demands,” stated United States Attorney Peace.  “For his crime of conviction, it is Prince who will be moving -- to a federal prison.  My Office is committed to protecting consumers from costly and fraudulent schemes in the moving industry.”

FBI Acting Assistant Director in Charge Curtis stated: “Andre Prince enticed customers to entrust fraudulent moving companies with their household goods, only to financially extort them with threats of selling their belongings. Prince utilized his skills as a sales representative to prey upon more than 800 victims undergoing a stressful event by boxing them into misleading contracts and false estimates. May the defendant’s move to prison reflect the FBI’s dedication to disrupting widespread fraud schemes and deter future unlawful attempts to monopolize an industry.

“Today’s sentence stemming from the criminal investigation conducted with our law enforcement and prosecutorial partners demonstrates our commitment to detecting and prosecuting fraudulent household goods movers who take advantage of unsuspecting customers by holding their personal belongings hostage,” stated DOT-OIG Special Agent in Charge Scharf. “We will continue our vigorous efforts to root out bad actors from the moving industry and reinforce adherence to Federal laws and regulations designed to protect the public.”

As proven at trial, between at least January 2017 and August 2020, Prince and co-defendant Kristy Mak worked for a number of moving companies controlled by co-defendant Yakov Moroz, which operated under various names including Great Moving USA, Green Movers, New City Moves, Cross Country Moving and Storage, and Movers Consulting.  Mak was a customer service representative for the companies and supervised Prince, who, as a senior sales representative was responsible for convincing individuals to choose one of the fraudulent moving companies. The defendants lured customers to these movers by posting fake reviews online and having sales associates offer low-cost transportation of their household goods.  After a contract was signed and, in some cases, after the customer’s belongings were loaded on the truck, the movers would spring new expenses on them.  If the customer tried contacting the sales associate about the surprise fees, that person was unreachable, and the customers were faced with drivers who threatened to hold their goods hostage unless they paid additional fees which were sometimes double or triple the original estimated cost.  In one conversation on the Slack messaging app, Prince reacted to two memes sent to him from another salesperson depicting their scheme to cut off contact with the customer on the day of the move, stating: “[rolling on the floor laughing emoji] that is so accurate.”  As a result of the fraudulent scheme, the defendants, together with others, wrongfully obtained more than $3 million from over 800 victims.

Mak, who was convicted at trial of the same wire fraud conspiracy charge as Prince, is awaiting sentencing.  Moroz absconded while on pre-trial release and is currently a fugitive. 

If you have been the victim of a similar fraud, a complaint can be filed with the Federal Motor Carrier Safety Administration at https://nccdb.fmcsa.dot.gov/nccdb/home.aspx

The government’s case was handled by the Office’s General Crimes Section. Assistant United States Attorneys Arun Bodapati and Elias Laris are in charge of the prosecution with the assistance of Special Agent Rebecca Sidhu and Paralegal Specialist Stephanie Heyward.

The Defendant:

ANDRE PRINCE (also known as “Allen Parks” and “Aaron”)
Age: 45
Taramac, Florida

E.D.N.Y. Docket No. 20-CR-342 (DC)

Earlier today, in federal court in Brooklyn, Ryan Scott Cochran, also known as “namedeclined,” pleaded guilty to distributing fentanyl, cocaine and methamphetamine through the United States mail.  Today’s proceeding was held before United States District Judge Ramon E. Reyes, Jr.  As part of his guilty plea, Cochran agreed to forfeit more than $200,000 in cash, cryptocurrency and money in bank accounts already seized by law enforcement, and agreed to forfeit an additional $900,000 at a later date. When sentenced, the defendant faces a maximum sentence of twenty years’ imprisonment.

Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea. 

Mr. Peace expressed his appreciation to United States Postal Inspection Service, New York Field Office and San Francisco Field Office; Internal Revenue Service, Oakland Field Office; and the Drug Enforcement Administration, San Francisco Field Office, for their assistance on the case.

According to court documents and facts presented at the guilty plea proceeding, Cochran was a highly rated vendor on numerous dark web marketplaces for more than a decade.  Cochran advertised and sold fentanyl, cocaine and methamphetamine, among other drugs, and shipped them throughout the United States and around the world through the United States mail.  Cochran also sold fraudulent identification documents and other forged documents, such as health insurance cards, on the dark web.

Assistant United States Attorney Philip Pilmar is in charge of the prosecution with assistance from Paralegal Specialists Thomas Englert and Rachel Friedman.

The Defendant:

RYAN SCOTT COCHRAN, aka “namedeclined”
Age: 34
San Jose, CA

E.D.N.Y. Docket No. 24-CR-063 (RER)

Earlier today, in federal court in Brooklyn, Fabienne Osias, a former federal correction officer employed by the United States Bureau of Prisons (BOP), pleaded guilty to smuggling cell phone chargers into the Metropolitan Detention Center (MDC) in Brooklyn. The proceeding was held before United States Magistrate Judge Marcia M. Henry.  When sentenced, Osias faces up to one year in prison.  Osias resigned from the BOP on August 23, 2024.

Breon Peace, United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General, Northeast Region (DOJ-OIG) announced the arrest and guilty plea.

“The defendant abused her position of trust to smuggle cell phone chargers into the Metropolitan Detention Center,” stated United States Attorney Peace.  “Contraband cell phones enable federal inmates to continue committing crimes even while they are in custody at the MDC, which endangers both the jail population and the community at large.  This Office will vigorously investigate and prosecute acts of public corruption at the MDC at every level.”

“Contraband, including cell phones, in prisons can be dangerous weapons. The Department of Justice Office of the Inspector General is committed to bringing to justice any Correctional Officer that violates their oath and smuggles contraband into federal prison facilities,” stated DOJ-OIG Special Agent in Charge Geach.

On February 28, 2023, Osias attempted to provide to an inmate of the MDC the following prohibited devices: five Universal Serial Bus (USB) charging cubes and nine USB charging cables, which are utilized by users of commercial mobile phone services.  The Cell Phone Contraband Act of 2010 prohibits the possession of cell phones in federal prisons by unauthorized persons, including inmates.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorney Sara K. Winik is in charge of the prosecution.

The Defendant:

Fabienne Osias
Age:  40
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-321 (MMH)

Earlier today, Jerome Jones, also known as “Sha,” pleaded guilty at the federal courthouse in Brooklyn, New York, to murder while engaged in narcotics trafficking for his participation in the 1991 murder of Oscar Flow.  As part of his plea, Jones, 60, also admitted to his role in the 1992 murders of Robert Arroyo and Dorothy Taylor.  Today’s proceedings took place before United States District Judge Nicholas G. Garaufis.  When sentenced, Jones faces 20 years to life in prison.  He was indicted in February 2019.

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“After over 30 years, Jones has finally admitted his role in the calculated murders of three individuals,” stated United States Attorney Peace. “Despite the passage of time, my Office persisted in pursuing all leads to seek justice for the victims and their families.  This case should stand as a reminder that even when the trail appears to have gone cold, we will never waver from our mission of holding wrongdoers, especially violent actors, accountable.”

“Today’s admission of guilt reflects the tireless dedication of NYPD detectives to hold criminals accountable, no matter how much time passes, because a cold case is never a forgotten case,” stated NYPD Commissioner Caban. “The NYPD will continue to work with the FBI, the office of the U.S. Attorney for the Eastern District of New York, and our other law enforcement partners to ensure that no investigative stone goes unturned as we work to establish justice for all crime victims and their families.”

Jones was a high-ranking member of a Queens-based crew, known as “Black Rain,” that sold narcotics at several locations on Rockaway Boulevard in the late 1980s and early 1990s.  The crew spread its poison in the community by trafficking in massive quantities of drugs, selling heroin under the brand name “Black Rain,” cocaine under the brand name “White Lightning” and crack cocaine under the brand name “Thunder.”  In the early 1990s, a single Black Rain drug spot brought in approximately $15,000 per day in narcotics sales.  To protect its profitable operation, the gang committed serious acts of violence, including murder. 

The murder of Oscar Flow took place in Springfield Gardens, Queens, in December 1991, after Jones learned that Flow had stolen from Black Rain.  Jones and a co-conspirator shot Flow multiple times in the head and body. 

The murder of Robert Arroyo took place in the vicinity of 128th Street and Rockaway Boulevard in South Ozone Park, where Jones managed a drug spot.  In August 1992, Jones recruited and paid two co-conspirators to murder Robert Arroyo, whom Jones believed was a drug-trafficking competitor and a police informant.  In their first attempt, the recruits mistakenly shot and seriously injured another man they incorrectly believed to be Arroyo.  The victim survived his wounds.  On September 8, 1992, at Jones’s direction, the recruits located Arroyo on a crowded street and shot him multiple times, killing him. 

In November of 1992, Jones ordered the killing of Dorothy Taylor, who he blamed for having a Black Rain drug spot shut down by law enforcement when she failed to pay the rent.  Jones again paid a co-conspirator to commit murder.  On November 2, 1992, Jones’s recruit hid in Taylor’s driveway and shot her to death when she arrived home.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Tanya Hajjar, Emily J. Dean, Lindsey R. Oken and Raffaela S. Belizaire are in charge of the prosecution with the assistance of Paralegal Specialist Theodore Rader. 

The Defendant:

JEROME JONES (also known as “Sha”)
Age: 60
West Virginia

E.D.N.Y. Docket No. 19-CR-54 (NGG)

Will Forfeit More than $7.1 Million in Funds Involved in Laundering Bribes to Mexican and Ecuadorian Officials; Defendants Ordered to Pay Over $200 Million in Forfeiture and Criminal Penalties

Earlier today, in federal court in Brooklyn, Javier Aguilar pleaded guilty to conspiring to violate the Foreign Corrupt Practices Act (FCPA) and engaging in interstate and foreign commerce to promote and to distribute the proceeds of commercial bribery for paying bribes to officials at PEMEX Procurement International (PPI), a wholly owned affiliate of the Mexican state-owned oil company, PEMEX.  The plea follows Aguilar’s conviction at trial earlier this year in a related case for paying bribes to Ecuadorian officials and laundering the bribe money for both the Ecuador and Mexico bribery schemes.  The plea proceeding was held before United States District Judge Eric N. Vitaliano.  When sentenced in both cases, Aguilar faces a maximum sentence of 40 years’ imprisonment as well as $7,129,938 in criminal forfeiture.

Breon Peace, United States Attorney for the Eastern District of New York (EDNY), Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Jeffrey B. Veltri, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office (FBI), announced the guilty plea.

“With today’s guilty plea the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” stated United States Attorney Peace.  “The actions of the defendant and his co-conspirators, and of those who act similarly, destroys people’s faith in their governments, disadvantages those who play by the rules, undermines confidence in American businesses worldwide, and will not be tolerated by this Office or our law enforcement partners.”

Mr. Peace expressed his appreciation to the United States Attorney’s Office for the Southern District of Texas for their assistance on the case. 

“The Foreign Corrupt Practices Act has been the law of the land, and enforceable worldwide, for decades. Yet unscrupulous businessmen still try to bribe their way to profit,” said Jeffrey B. Veltri, Special Agent in Charge for the FBI’s Miami Field Office. “My message to them is that the charges and penalties you will face are not worth the gain. I want to commend the U.S Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Southern District of Texas, and the Department of Justice’s Office of International Affairs for their diligence pursuing this case, but especially the agents and analysts who leave no stone unturned in pursuit of FCPA violators.”

Between 2015 and 2020, Aguilar was a trader in the Houston office of Vitol, Inc. (Vitol), the U.S. affiliate of the Vitol group of companies, which together form one of the world’s largest energy trading firms.  As part of the scheme, Aguilar and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PPI to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of liquid ethane to PEMEX.  To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curaçao and Mexico.  The defendant and his co-conspirators also used alias email accounts to communicate about the scheme, and code words, including “shoes,” “medicine,” “invitations” and “coffee,” to describe the bribes.

In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico, and Brazil in violation of the anti-bribery provisions of the FCPA.  Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York.  As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Department of Justice, the Commodity Futures Trading Commission (CFTC) and authorities in Brazil.

The FCPA conspiracy charge, based in the Southern District of Texas (SDTX), was initially filed in the EDNY in December 2022 as part of a superseding indictment consolidating both the Ecuador- and Mexico-related conduct.  In May 2023, the government consented to Aguilar’s pre-trial motion to dismiss that charge in the EDNY on venue grounds.  That charge and others related were then refiled in SDTX in August 2023.  As part of his guilty plea, Aguilar consented to transfer the SDTX case back to the EDNY, reconsolidating the cases.

Seven of the defendant’s co-conspirators have pleaded guilty in connection with their roles in the scheme and are awaiting sentencing.  Together, these individuals have agreed to forfeit more than $63 million.

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including bribery and corruption offenses.

The government’s case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS).  Assistant United States Attorneys Jonathan P. Lax and Matthew R. Galeotti of the Eastern District of New York are prosecuting the case with Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell and Trial Attorney Clayton P. Solomon of the Fraud Section, Deputy Chief Adam J. Schwartz and Trial Attorney D. Hunter Smith of MLARS, with assistance from Deputy Chief Suzanne Elmilady and Assistant U.S. Attorney Sherin Daniel of the United States Attorney’s Office for the Southern District of Texas.  Assistant United States Attorney Brian Morris assisted with forfeiture matters.  The MLARS Special Financial Investigations Unit and the Justice Department’s Office of International Affairs also provided substantial assistance in this case.

The Defendant:

JAVIER AGUILAR
Age: 50
Houston, Texas

E.D.N.Y. Docket Nos. 24-CR-304 (ENV) / 20-CR-390 (ENV)

Breon Peace, United States Attorney for the Eastern District of New York, and Lisa F. Garcia, Regional Administrator, Environmental Protection Agency (EPA), today announced a settlement with Gershow Recycling Corporation (Gershow) for its alleged violation of the Clean Air Act (CAA) at the company’s metal shredding facility in Medford, New York. Under the Consent Judgment, Gershow will install and operate technology to reduce the facility’s emission of volatile organic compounds (VOCs). The settlement also requires Gershow to pay a civil penalty of $555,000.

“This Office will vigorously enforce the Clean Air Act to protect local communities from harmful air pollution,” stated United States Attorney Breon Peace. “This settlement requires Gershow to implement critical emission control technology that will help improve air quality for local communities, including those with the most vulnerable residents.”

“Thanks to EPA’s action, people in and around Medford will breathe cleaner air and avoid harmful pollution,” said Regional Administrator Lisa F. Garcia. “Breathing air with higher levels of VOCs can cause breathing problems and make people more susceptible to respiratory infection, especially for people who suffer from asthma. This proposed settlement ensures that the company installs proper pollution controls at the facility and meets environmental requirements.”

Background

The CAA was enacted by Congress to promote the public health and welfare through prevention and regulation of air pollution from mobile and stationary sources. The CAA requires states to adopt federally enforceable plans to ensure the implementation and enforcement of National Ambient Air Quality Standards (NAAQS) at the local level. VOC emissions contribute to the formation of ground level ozone and to violations of the NAAQS for ozone. Exposure to VOCs may cause cancer, eye irritation, respiratory problems, and damage to the nervous system.  Ground-level ozone, which is a constituent of smog, can also cause determinantal health effects.  Under the NAAQS, EPA has designated the New York Metropolitan Area, including Long Island, as a non-attainment area for ozone. This designates the area as having poor ground level ozone.    

Consent Judgment

In November 2021, EPA issued Gershow a Notice of Violation citing it for violating the CAA. The notice, and the Complaint filed today with the Consent Judgment, allege that Gershow failed to install pollution controls at its metal shredder, causing illicit emissions of VOCs. Further, Gershow failed to obtain a CAA air permit for the facility’s VOC emissions and failed to properly report the facility’s air emissions.

Gershow’s facility operates metal shredding equipment, which is used to process scrap automobiles and other scrap material. The shredding process generates enough heat to vaporize the plastics, paints, and oils in certain scrap materials, resulting in the emission of VOCs and other air pollutants. Without an emission control system, pollutants disperse into the air and impact the surrounding communities. 

Under the Consent Judgment, Gershow is required to bring its facility into compliance with the CAA. Gershow must obtain the required operating permit, and then install and operate emission control equipment to reduce VOCs emitted by the shredder. EPA estimates that the new equipment that Gershow will install will prevent over 49 tons per year of VOC air emissions.  The required pollution control equipment will also reduce the formation of harmful ground-level ozone.

The Complaint and Consent Judgment were filed in the United States District Court for the Eastern District of New York. Following a 30-day public comment period, the United States will review any comments and, if appropriate, ask the Court to enter the Consent Judgment.

The United States Attorney’s Office for the Eastern District of New York vigorously enforces the nation’s environmental laws to address environmental, health, and climate impacts on individuals and communities within the district.  Any member of the public who wishes to notify the United States of environmental justice concerns may contact the Office’s Environmental Justice Team here.

The negotiations and settlement were handled by Assistant U.S. Attorneys Thomas R. Price and Matthew Silverman of the U.S. Attorney’s Office for the Eastern District of New York’s Civil Division, working with Robert DeLay, Assistant Regional Counsel, U.S. EPA Region 2, with assistance from Shaun Burke, Senior Environmental Engineer, U.S. EPA Air Enforcement Division, Office of Civil Enforcement.

E.D.N.Y. Docket No. 24-CV-5794

Earlier today, an indictment was unsealed charging Domagoj Patkovic with conspiring to make and making threats concerning explosives, conspiring to transmit and transmitting threatening communications, and conveying false information concerning explosives.  Patkovic was arrested this morning at his residence in Portland, Oregon and will make his initial appearance before U.S. Magistrate Judge Youlee Yim Yu in U.S. District Court of Oregon later today.  

Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges. 

“As alleged, the defendant and his coconspirators, motivated by their hatred of Jewish people, targeted Jewish hospitals and care centers in New York City and on Long Island with hoax bomb threats, needlessly endangering patients and staff by creating chaos and alarm,” stated United States Attorney Peace.  “Our highest priority is ensuring all members of our community are protected and we will use all resources possible to prosecute dangerous bomb threats and swatting schemes to the fullest extent of the law.”

Mr. Peace expressed his appreciation to the New York City Police Department, Nassau County Police Department and the U.S. Attorney’s Office for the District of Oregon for their assistance on the case. 

“Domagoj Patkovic allegedly issued a series of false bomb threats against Jewish healthcare facilities that prompted repeated emergency responses from local law enforcement and a partial evacuation from at least one hospital. These alleged actions incited unnecessary hysteria and redirected limited resources to mitigate a false alarm. The FBI will not tolerate those who utilize hoax bomb threat schemes to satisfy their anti-Semitic beliefs and endanger the wellbeing of our communities,” stated FBI Acting Assistant Director in Charge Curtis.

As set forth in the indictment and in court filings, beginning at least as early as May 2021, the defendant and others made anonymous phone calls in which they made violent threats, including threats to detonate explosive devices, to Jewish hospitals and care centers within the Eastern District of New York, among other targets throughout the United States. 

The defendant himself made threats in at least six separate calls to hospitals and on a call with local law enforcement who had responded to a 911 notification from one of the hospitals.  The defendant livestreamed the calls to others on an online social media and electronic communications service.  On several occasions, local police responded to the scene and conducted bomb sweeps.  On at least one occasion in September 2021, the hoax bomb threat resulted in a partial evacuation and lockdown of an entire hospital on Long Island.  No explosive devices were ultimately found in any of the locations.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, he faces up to 155 years’ imprisonment.

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Alexander A. Solomon, Laura Zuckerwise, and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon.    

The Defendant:

DOMAGOJ PATKOVIC
Age: 31
Portland, Oregon

E.D.N.Y. Docket No. 24-CR-317 (RER)

Earlier today, in federal court in Central Islip, former Congressman George Anthony Devolder Santos pleaded guilty to committing wire fraud and aggravated identity theft. The proceeding was held before United States District Judge Joanna Seybert.  When sentenced, Santos faces a minimum sentence of two years’ imprisonment and a maximum sentence of 22 years’ imprisonment. As part of the plea Santos will pay restitution of $373,749.97 and forfeiture of $205,002.97.  Santos was initially charged in May 2023, and a superseding indictment charging Santos with additional crimes was returned in October 2023.

Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Anne T. Donnelly, Nassau County District Attorney, and Thomas M. Fattorusso, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the guilty plea.

“Today, for what may seem like the first time since he started his campaign for Congress, Mr. Santos told the truth about his criminal schemes. He admitted to lying, stealing and conning people,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “By pleading guilty, Mr. Santos has acknowledged that he repeatedly defrauded federal and state government institutions as well as his own family, supporters and constituents. His flagrant and disgraceful conduct has been exposed and will be punished. Mr. Santos’s conviction demonstrates this Office’s enduring commitment to rooting out corruption and grift by public officials.”

Mr. Peace expressed his appreciation to the U.S. Department of Labor, Office of Inspector General and the New York State Department of Labor, for their work on the case.

“As part of his campaign for election to the U.S. House of Representatives, George Santos committed fraud and identity theft, and lied to the American people about his personal finances and campaign supporters,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, Santos violated laws designed to ensure that the public has accurate information about the personal finances of individuals who seek to represent them in Congress and how their political campaigns are funded. The transparency and accuracy that these laws require are essential to the integrity of the election process, and today’s conviction is proof that the Criminal Division is committed to enforcing them.”

“Today, George Santos admitted that he did in fact lie, cheat, and steal his way to elected office. When public officials place their self-interests above those they swore an oath to serve, it undermines confidence in our system of government and damages the very foundation of our democracy. The FBI is committed to investigating and eradicating public corruption—no matter the form it takes,” stated FBI Acting Assistant Director in Charge Curtis.  

“George Santos lied to his constituents, cheated his supporters and quite simply made a mockery of his position in public office. Today’s guilty plea is a step towards getting justice for those he has wronged.  CI New York worked closely with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences for his years of fraud and deceit, because corruption is not to be tolerated,” stated IRS CI Special Agent in Charge Fattorusso.

“George Santos built a career on deception and funded his lifestyle using the identities of people he misled, including Nassau County residents who believed they were contributing to Santos’ campaign and participating in the electoral process. The defendant rode a wave of his lies all the way to Congress and endlessly abused the trust of his constituents,” stated Nassau County District Attorney Donnelly.  “We will continue to work together with our federal partners at the U.S. Attorney’s Office, the Department of Justice, and the Federal Bureau of Investigation to root out corruption on Long Island and hold public officials to the highest standards of integrity.”

The counts to which Santos pled guilty relate to the following criminal scheme, as set forth in the superseding indictment:

The Party Program Scheme

During the 2022 election cycle, Santos was a candidate for the United States House of Representatives in New York’s Third Congressional District.  Nancy Marks, who pleaded guilty on October 5, 2023 to related conduct, was the treasurer for his principal congressional campaign committee, Devolder-Santos for Congress.  During this election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC) on behalf of the campaign, in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee, pursuant to which the national party committee would provide financial and logistical support to Santos’s campaign.  To qualify for the program, Santos had to demonstrate, among other things, that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.

To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 11 of their family members had made significant financial contributions to the campaign.  In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports.  In addition, Santos and Marks knew that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, and agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans.  These falsely reported loans included a $500,000 loan, when in fact Santos had less than $8,000 in his personal and business bank accounts. 

Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee.  As a result of qualifying for the program, the congressional campaign received significant financial support.

As part of his plea agreement, Santos stipulated that he had engaged in the following additional criminal conduct, as set forth in the superseding indictment and other court filings, and agreed that this criminal conduct will be considered by the Court at the time of sentencing:

The Credit Card Fraud Scheme

Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign.  He then charged contributors’ credit cards repeatedly, without their authorization.  Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account.  To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders, in filings with the FEC.  Santos did not have authorization to use their names in this way.

Fraudulent Political Contribution Solicitation Scheme

Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters.  Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf.  Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.

Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts.  Santos then used much of that money for personal expenses.  Among other things, Santos used the funds to make personal purchases, including of designer clothing, to withdraw cash, to discharge personal debts, and to transfer money to his associates.

Unemployment Insurance Fraud Scheme

Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1).  By late March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.

In mid-June 2020, although he was employed and not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), claiming falsely to have been unemployed since March 2020.  From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not.  As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.

False Statements to the House of Representatives

Santos, like all candidates for the House, had a legal duty to file with the Clerk of the United States House of Representatives a Financial Disclosure Statement (House Disclosures) before each election.  In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things.  He certified that his House Disclosures were true, complete, and correct.

In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure in which he vastly overstated his income and assets.  In this House Disclosure, he falsely certified that during the reporting period:

• He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
• He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
• He had a checking account with deposits of between $100,001 and $250,000; and
• He had a savings account with deposits of between $1,000,001 and $5,000,000. 

These assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts.  Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.

* * * * *

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud, money laundering, and aggravated identity theft.

The government’s case is being handled by the Office’s Public Integrity Section and Criminal Section of the Office’s Long Island Division, along with the Public Integrity Section of the Department of Justice’s Criminal Division (PIN).  Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jacob Steiner and John Taddei, are in charge of the prosecution, with assistance from Paralegal Specialists Rachel Friedman and Dinora Orozco.  Senior Litigation Counsel Victor R. Salgado and former Trial Attorney Jolee Porter of PIN also provided substantial contributions to the prosecution.

The Defendant:

GEORGE ANTHONY DEVOLDER SANTOS
Age:  36
Queens, New York

E.D.N.Y. Docket No. 23-CR-197 (S-2) (JS)

Former U.S. Representative George Anthony Devolder Santos pleaded guilty today to committing wire fraud and aggravated identity theft.

In pleading guilty, Santos, 36, of Queens, New York, admitted he filed fraudulent FEC reports, embezzled funds from campaign donors, charged credit cards without authorization, stole identities, obtained unemployment benefits through fraud, and lied in reports to the House of Representatives.

“As part of his campaign for election to the U.S. House of Representatives, George Santos committed fraud and identity theft, and lied to the American people about his personal finances and campaign supporters,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, Santos violated laws designed to ensure that the public has accurate information about the personal finances of individuals who seek to represent them in Congress and how their political campaigns are funded. The transparency and accuracy that these laws require are essential to the integrity of the election process, and today’s conviction is proof that the Criminal Division is committed to enforcing them.”

“Today, for what may seem like the first time since he started his campaign for Congress, Mr. Santos told the truth about his criminal schemes. He admitted to lying, stealing and conning people,” said U.S. Attorney Breon Peace for the Eastern District of New York. “By pleading guilty, Mr. Santos has acknowledged that he repeatedly defrauded federal and state government institutions as well as his own family, supporters and constituents. His flagrant and disgraceful conduct has been exposed and will be punished. Mr. Santos’s conviction demonstrates this Office’s enduring commitment to rooting out corruption and grift by public officials.”

“Today, George Santos admitted that he did in fact lie, cheat, and steal his way to elected office,” said Acting Assistant Director in Charge Christie M. Curtis of the FBI's New York Field Office. “When public officials place their self-interests above those they swore an oath to serve, it undermines confidence in our system of government and damages the very foundation of our democracy. The FBI is committed to investigating and eradicating public corruption—no matter the form it takes.”

“George Santos lied to his constituents, cheated his supporters and quite simply made a mockery of his position in public office,” said Agent in Charge Thomas M. Fattorusso of IRS-Criminal Investigations New York. “Today’s guilty plea is a step towards getting justice for those he has wronged. IRS-CI New York worked closely with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences for his years of fraud and deceit, because corruption is not to be tolerated.”

The Party Program Scheme

During the 2022 election cycle, Santos was a candidate for the U.S. House of Representatives in New York’s Third Congressional District. Nancy Marks, who pleaded guilty in October 2023 to related conduct, was the treasurer for his campaign committee, Devolder-Santos for Congress. During the election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC) on behalf of the campaign, in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee, pursuant to which the national party committee would provide financial and logistical support to Santos’s campaign. To qualify for the program, Santos had to demonstrate that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.

To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 10 family members of Santos and Marks had made significant financial contributions to the campaign.  In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, understanding that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, Santos and Marks agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans. These false reported loans included a $500,000 loan, when in fact Santos had less than $8,000 in his personal and business bank accounts. 

Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee. As a result of qualifying for the program, the congressional campaign received significant financial support.

As part of his plea agreement, Santos stipulated that he had engaged in the below additional criminal conduct, as set forth in the second superseding indictment and other court filings, and agreed that this criminal conduct will be considered by the Court at the time of sentencing.

The Credit Card Fraud Scheme

Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented in filings with the FEC that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders. Santos did not have authorization to use their names in this way.

Fraudulent Political Contribution Solicitation Scheme

Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two supporters (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.

Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos then used much of that money for personal expenses. Among other things, Santos used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.

Unemployment Insurance Fraud Scheme

Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1). By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.

In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), falsely claiming to have been unemployed since March 2020. From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.

False Statements to the House of Representatives

Santos, like all candidates for the House, had a legal duty to file with the Clerk of the U.S. House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.

In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure, in which he vastly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:

• He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
• He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
• He had a checking account with deposits of between $100,001 and $250,000; and
• He had a savings account with deposits of between $1,000,001 and $5,000,000. 

These assertions were false. Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the New York State Department of Labor.

Santos is scheduled to be sentenced on February 7, 2025, and faces a mandatory minimum of two years in prison and a maximum of 22 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

As part of the guilty plea, Santos will pay restitution of $373, 749.97 and forfeiture of $205, 002.97.

Trial Attorneys Jacob Steiner and John Taddei of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise for the Eastern District of New York are prosecuting the case. Former Trial Attorney Jolee Porter and Litigation Counsel Victor R. Salgado provided substantial contributions to the prosecution.

Earlier today, an indictment was unsealed in federal court in Brooklyn, charging Ferron Facey, also known as “Azul,” “Blue,” “Royal” and “Royal Da P,” with two counts of sex trafficking and one count of interstate prostitution for bringing young women from out of state to the Eastern District of New York to prostitute under threat of force, fraud and coercion.  Facey was arrested earlier today in Brooklyn and made his initial appearance this afternoon before United States Magistrate Judge Peggy Kuo where he was ordered detained.

Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.

“As alleged, the defendant trafficked women from out of state, including a minor, to serve as commercial sex workers for him at the notorious Penn Track in East New York, Brooklyn,” stated United States Attorney Peace.  “My Office is working diligently with our local and federal law enforcement partners to shut down this blight on our district where vulnerable victims are callously exploited by people like the defendant and the customers who patronize this location.” 

“Ferron Facey allegedly coerced two young women, including a minor, to travel to New York where he subsequently trafficked them for sex under threats of violence. The defendant’s violent history and alleged actions not only pose a grave danger to the community, but also to potential victims out of state, as his depravity knows no bounds. With the assistance from our law enforcement partners, the FBI is determined to dismantle sex trafficking operations in our city and apprehend the criminals who exploit their victims for profits,” stated FBI Acting Assistant Director in Charge Curtis.

According to court filings, Facey allegedly recruited young women – including at least one 16-year-old minor – in another state and brought them to New York to work for him in prostitution at an open-air sex market in East New York, Brooklyn, known as the “Penn Track” or “blade.”  Facey used violence, coercion and threats of force to exert control over these victims and to keep them working in prostitution for him.  Facey has a history of threatening violence against women on the Penn Track.  For example, in a video posted on social media in July 2023, he was captured verbally assaulting a woman on the Penn Track and saying, “I got hoes out here that’ll beat you up right now . . . I put hands on bitches[.]” Shortly afterward, two individuals emerged from the defendant’s car and physically attacked the woman.

During his arrest and execution of a search warrant discovered an unloaded 9-millimeter handgun in the bedroom, an unloaded magazine kicked under the kitchen cabinets, multiple rounds of live 9-millimeter ammunition hidden in an air fryer in the kitchen, and a brown, powdery substance consistent with cocaine spilled onto the floor of the bathroom, the toilet seat, and in the toilet. Near the apparent contraband narcotics were approximately 200 glassines, or wax paper bags used in drug sales to package narcotics for individual sale. Nearly $3,000 in $100, $50 and 20$ bills was found in an elastic behind the bed in the bedroom.

If convicted of sex trafficking by force, fraud and coercion, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment.  The interstate prostitution charge carries a maximum sentence of 20 years in prison.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. 

The government’s case is being handled by the Office’s Civil Rights Section.  Assistant United States Attorney Margaret Schierberl is in charge of the prosecution.

The Defendant:

FERRON FACEY (also known as “Azul,” “Blue,” “Royal” and “Royal Da P”)
Age:  38
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-339 (AMD)

A criminal complaint was unsealed today in federal court in Brooklyn charging John Bolden and Anthony Carreira, who are detectives employed by the New York City Police Department (NYPD), Jacqueline Johnson and Christian McKenzie with conspiracy to commit wire fraud.  The defendants were charged with engaging in a scheme to submit fraudulent applications for loans under the United States Small Business Administration’s (the “SBA”) Paycheck Protection Program (PPP), which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  Bolden, Johnson and McKenzie were arrested today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Judge Lois Bloom. Carreira has agreed to surrender at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charge.

“As alleged, the defendants, including members of law enforcement responsible for upholding the law, defrauded the United States government out of relief funds meant for businesses struggling to survive the pandemic,” stated United States Attorney Peace.  “These arrests are a powerful reminder of this Office’s resolve to prosecute anyone who violated the public trust and took advantage of the COVID crisis by stealing from relief programs.”

Mr. Peace expressed his appreciation to the Suffolk County Police Department; the SBA’s Office of the Inspector General; the Board of Governors of the Federal Reserve System, Office of the Inspector General; the U.S. Department of Education, Office of Inspector General; and the NYPD’s Internal Affairs Bureau for their assistance on the case.

"John Bolden, an NYPD detective, and two other defendants allegedly crafted a scheme to submit fraudulent applications to receive PPP loans. For over two years, this conspiracy allowed more than 65 individuals to obtain unlawfully granted funds, exploiting a system designed to protect small businesses during a global pandemic. While the overwhelming majority of law enforcement serves with honor, it remains the FBI’s responsibility to apprehend all individuals who intend to manipulate government aid programs, even those entrusted with maintaining a higher standard of integrity," stated FBI Assistant Director in Charge Curtis.

As set forth in court filings, NYPD Detectives Bolden and Carreira owned partnership interests in a franchise location for a tax preparation business.  Between May 2020 and October 2022, Bolden engaged in a scheme to defraud the SBA by working with his clients and co-defendants, including Carreira, Johnson and McKenzie, to fraudulently obtain PPP funds.  Bolden sought to obtain, and in many cases did obtain, PPP funds for himself, his co-defendants and more than 65 individuals by helping submit online loan applications that contained materially false and fraudulent information.  As part of the scheme, Bolden prepared fictitious Internal Revenue Service (IRS) Form Schedule C documentation, which accompanied the loan applications, containing false information about his, his co-defendants’ and his clients’ places of employment, gross income and net income.

The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face a maximum sentence of 30 years.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Andrew D. Grubin and Eric Silverberg are in charge of the prosecution, with assistance from Paralegal Specialist Rachel Friedman.

The Defendants:

JOHN BOLDEN
Age:  46
Valley Stream, NY

ANTHONY CARREIRA
Age:  42
Staten Island, NY

JACQUELINE JOHNSON
Age:  78
Valley Stream, NY

CHRISTIAN MCKENZIE
Age:  46
Wheatley Heights, NY

E.D.N.Y. Docket No. 24-MJ-487

Earlier today, at the federal courthouse in Brooklyn, Say-Quan Pollack was sentenced by United States District Judge William F. Kuntz II to 87 months in prison for his role in an armed robbery at a church (the Church) in Brooklyn on July 24, 2022.  Pollack and his co-conspirators stole more $400,000 in jewelry from the pastor and his wife during a religious service.  As part of the sentence, Pollack was ordered to pay $402,639 in restitution to the victims.  Pollack pleaded guilty in November 2023 to Hobbs Act robbery.

Breon Peace, United States Attorney for the Eastern District of New York, Tommy Kalogiros, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Pollack has been held accountable for committing a bold robbery in a house of worship with a gun, terrorizing the men, women, and children participating in the religious service that Sunday morning,” stated United States Attorney Peace.  “Today’s sentence shows that such despicable and dangerous conduct will be punished with significant time in prison.  For those victims who were traumatized by this violent crime carried out in a setting where they had gone to pray and worship, it is my hope that they find some closure in the prosecution of the defendants.”

ATF Assistant Special Agent in Charge Kalogiros stated, “This verdict sends a clear message that violent acts have consequences. Here, the defendant’s brazen armed robbery at a church earned him a lengthy prison sentence. This outcome affirms the unwavering commitment of ATF/NYPD’s Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Group and the United States Attorney’s Office for the Eastern District of New York to stop those who wreak havoc in our city. This outcome was a product of the strong relationship ATF cultivates with our state and local partners which allow us to keep the community safe by identifying, investigating and apprehending those that commit acts of violence.”

“Today’s sentencing holds Mr. Pollack accountable for his shameless acts and serves as a stark reminder to others who might think of committing similarly egregious crimes,” stated NYPD Commissioner Caban. “With justice served, the NYPD and our partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York will continue doing everything possible to keep the public safe and ensure that there are always consequences for nefarious behavior.”

On the morning of July 24, 2022, Pollack, Juwan Anderson and Shamar Leggette —wearing masks and clad all in black—entered the Church brandishing guns and interrupting the religious service attended by parishioners both in person and via a live-stream.  The lead pastor (Individual 1), who had been delivering a sermon from the pulpit, dove to the floor, while his wife (Individual 2) shielded their infant daughter who was sitting on her lap.  Pollack initially stood guard at the doorway, pointing a gun in the direction of the parishioners and the pulpit.  Leggette, also wielding a gun, approached Individual 2 and pulled jewelry off her person, and Anderson grabbed jewelry from Individual 1 as he lay facedown on the floor.  Pollack then approached Individual 1 and, pointing a gun at his head, made sure that all of his jewelry had been removed by his co-conspirators.    

Pollack and Anderson were arrested in September 2022.  In December 2023, Anderson pleaded guilty to Hobbs Act robbery and is awaiting sentencing.  Charges against Leggette were dismissed following his death in January 2024.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorney Rebecca M. Schuman is in charge of the prosecution, with assistance from Assistant United States Attorney Miranda Gonzalez.

The Defendant:

SAY-QUAN POLLACK (also known as “Say-Quan Pollock”)
Age:  25
Brooklyn, New York

Co-Defendant to be Sentenced:

JUWAN ANDERSON
Age:  25
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR-428 (WFK)

Manuel Chang, the former Finance Minister of Mozambique, was convicted earlier today by a federal jury of conspiracy to commit wire fraud and conspiracy to commit money laundering in connection with his role in a $2 billion fraud, bribery, and money laundering scheme that victimized investors in the United States and elsewhere.  The verdict followed a 4-week trial before United States District Judge Nicholas G. Garaufis.  When sentenced, Chang faces up to 20 years in prison.  Chang was arrested in December 2018 in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States, and extradited to the Eastern District of New York in July 2023. 

Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world,” stated United States Attorney Peace.  “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”

“While serving as Finance Minister of Mozambique, Manuel Chang obtained $7 million in bribe payments in exchange for signing guarantees to secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Not only did Chang’s abuse of authority betray the trust of the Mozambican people, but his corrupt bargain also caused investors—including U.S. investors—to suffer substantial losses on those loans. Chang’s conviction today demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve.”

As proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for loans for three maritime projects.  As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials.  In fact, however, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.

Between approximately 2013 and 2015, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, (through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government:  Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM).  The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services.  Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.

Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks.  These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the Mozambique government would guarantee those loans.  The loans were subsequently sold in whole or in part to investors worldwide, including in the United States.  In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used.  Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.

In October 2021, Credit Suisse AG and CSSEL admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project.  CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section (Fraud Section) and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).  As a part of the resolution, Credit Suisse AG and CSSEL paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

The Office’s Business & Securities Fraud Section is handling the case.  Assistant U.S. Attorneys Hiral D. Mehta, Genny Ngai and Jonathan Siegel of the Eastern District of New York, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS, are in charge of the prosecution, with the assistance of Paralegal Specialists Timothy Migliaro and Elica Semnani.  The Justice Department’s Office of International Affairs provided substantial assistance.  The Justice Department also appreciates the assistance of authorities in the United Kingdom, Switzerland, Spain, Portugal and South Africa.

The Defendant:

MANUEL CHANG
Age:  68
Mozambique

E.D.N.Y. Docket No. 18-CR-681 (NGG)

A federal jury in Brooklyn, New York, convicted the former Finance Minister of Mozambique for his role in a $2 billion fraud, bribery, and money laundering scheme that victimized investors in the United States and elsewhere.

According to court documents and evidence presented at trial, Manuel Chang, 68, of Mozambique, received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. As part of the scheme, Chang and his co-conspirators falsely told banks and investors that the loan proceeds would be used for the projects and not to pay bribes to government officials. In fact, however, Chang and his co-conspirators diverted more than $200 million of the loan proceeds that were used, among other things, to pay bribes and kickbacks to Chang and others.

“While serving as Finance Minister of Mozambique, Manuel Chang obtained $7 million in bribe payments in exchange for signing guarantees to secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Not only did Chang’s abuse of authority betray the trust of the Mozambican people, but his corrupt bargain also caused investors—including U.S. investors—to suffer substantial losses on those loans. Chang’s conviction today demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve.”

The trial evidence showed that, between approximately 2013 and 2015, Chang, together with his co-conspirators—including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company—ensured that a United Kingdom subsidiary of Credit Suisse AG and another foreign investment bank arranged for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services.

“Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”

“The FBI and its partners will not tolerate corrupt officials lining their pockets with kickbacks at the cost of the citizens they are supposed to look out for,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch. “If you illegally divert funds intended for public investment for personal profit, you will end up paying the price as shown by today’s conviction.”

Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks. These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government entered into the loan arrangements, and that the government of Mozambique guaranteed those loans. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In so doing, the participants defrauded these investors by misrepresenting how the loan proceeds would be used. Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.

The jury convicted Chang of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. He faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In October 2021, Credit Suisse AG and CSSEL (together, Credit Suisse) admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS), and the U.S. Attorney’s Office for the Eastern District of New York. As a part of the resolution, Credit Suisse paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

The FBI New York Field Office investigated the case. 

Trial Attorney Peter Cooch of the Criminal Division’s Fraud Section, MLARS Trial Attorney Morgan Cohen, and Assistant U.S. Attorneys Hiral D. Mehta, Genny Ngai, and Jonathan Siegel for the Eastern District of New York are prosecuting the case.

The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development, as well as authorities in the United Kingdom, Switzerland, Spain, and Portugal.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Earlier today, in federal court in Brooklyn, New York, an indictment was unsealed charging Kevindale Nurse with arson for allegedly throwing an explosive device into a Verizon utility work van during a road rage attack in Crowns Heights, Brooklyn.  Nurse was arrested today and will make his initial appearance this afternoon before United States Magistrate Judge Lara K. Eshkenazi.  

Breon Peace, United States Attorney for the Eastern District of New York, Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the arrest and indictment.

“As alleged, Nurse deliberately threw an explosive device into the window of another vehicle on a public road, endangering the lives of the vehicle’s occupants and others in the area,” stated United States Attorney Peace.  “Unfortunately, road rage is an all-too common occurrence in our communities.  But this dangerous and senseless attack on a busy intersection in the heart of Brooklyn was beyond the pale.  We will vigorously prosecute this case.”

“The defendant committed an unconscionable act by using explosives during a road rage incident, disregarding the potentially deadly consequences when he threw an explosive device in a neighboring vehicle. Thanks to strong law enforcement partnerships and the investigative efforts of ATF NY’s Arson & Explosives Task Force comprised of ATF Special Agents, FDNY Fire Marshals and NYPD Detectives, the NYPD 71st Precinct Detective Squad, and the U.S. Attorney’s Office for the Eastern District of New York this defendant will now face the consequences of his horrific actions,” stated ATF Special Agent in Charge Bryan Miller.

“There is no place in civil society for the spreading of fear through intimidation, violence, and destruction,” stated NYPD Commissioner Caban. “I commend the work of our NYPD investigators, along with our law enforcement partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York, for their dedication and collaboration in bringing this accused criminal to justice.”

As described in court filings, on the evening of January 31, 2024, Nurse, who was driving a white minibus, or commuter “dollar van,” also occupied by his four-year-old son, cut off a Verizon utility van.  The two Verizon repairmen in the van were working that day on high-speed data lines and fiber optic equipment. Surveillance video captured Nurse driving erratically before stopping the white minibus next to the Verizon van at the intersection of President Street and Brooklyn Avenue in Crown Heights, and opening the door of the minibus. Nurse allegedly threw an explosive device into the driver’s side window of the Verizon van, causing an explosion inside the vehicle. The two Verizon repairmen inside sustained multiple injuries, and their van was extensively damaged by the blast. 

The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Nurse faces a mandatory minimum sentence of seven years in prison and a maximum of 40 years in prison.

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorney Megan Larkin is in charge of the prosecution.

The Defendant:

KEVINDALE NURSE
Age:  36
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-322 (MKB)

Shujun Wang, an academic and author who helped start a pro-democracy organization in Queens that opposes the current communist regime in China, was convicted today by a federal jury in Brooklyn on all four counts of an indictment charging him with acting and conspiring to act as an agent of a foreign government without prior notification to the U.S. Attorney General, criminal possession identification and making false statements to law enforcement.  The verdict followed a seven-day trial before United States Second Circuit Judge Denny Chin sitting by designation.  Wang’s co-defendants in the espionage and transnational repression scheme, Feng He, Jie Ji, Ming Li and Keqing Lu are officials from China’s Ministry of State Security (MSS).  They remain at large.  When sentenced, Wang faces up to 25 years in prison. 

Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Robert Wells, Executive Assistant Director, Federal Bureau of Investigation, National Security Branch (FBI), announced the verdict.

“The indictment could have been the plot of a spy novel, but the evidence is shockingly real that the defendant was a secret agent for the Chinese government,” stated United States Attorney Peace.  “Posing as a well-known academic and founder of a pro-democracy organization, Wang was willing to betray those who respected and trusted him.  When confronted with his shameful conduct, the defendant lied to law enforcement, but today’s verdict revealed the truth of his crimes and now he will face the consequences.”

“This defendant infiltrated a New York-based advocacy group by masquerading as a pro-democracy activist all while covertly collecting and reporting sensitive information about its members to the PRC’s intelligence service,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s verdict demonstrates that those who would seek to advance the Chinese government’s agenda of transnational repression will be held accountable.”

“This conviction underscores the FBI’s commitment to countering espionage schemes by holding those accountable who collect US activist information for the benefit of China,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “Any support for transnational repression is unacceptable, and the FBI works diligently with its partners to seek out and bring to justice those who support such activities.”

Wang is a naturalized U.S. citizen of Chinese descent and one of the founders of the pro-democracy Hu Yaobang and Zhao Ziyang Memorial Foundation, an organization located in Flushing, Queens whose members are well-known pro-democracy dissidents who oppose the current government of the PRC.  But instead of promoting democracy in the PRC, Wang, at the direction of PRC government officials, used his position within the Memorial Foundation and his status within the Chinese diaspora community to collect information about prominent activists, academics, and dissidents, and reported that information to the PRC government.                                              

As proven at trial, since at least 2006, Wang operated under the direction and control of his co-defendants, four officials of China’s MSS, which is responsible for the PRC’s foreign intelligence collection.  At the MSS’s direction, Wang gathered information on people and groups that the PRC considers subversive, such as Hong Kong democracy protestors, advocates for Taiwanese independence and Uyghur and Tibetan activists, both in the United States and abroad.  Wang conducted face-to-face meetings with MSS officials while on trips to the PRC, and used WeChat to receive orders from his co-defendants and to send and receive written messages and files.

Wang often memorialized the information he collected in email “diaries” to be accessed by the MSS.  These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations.  Law enforcement recovered from Wang’s residence diary entries that he wrote to He, Ji, Li, Lu and other MSS officials.  Additionally, in connection with his work for the MSS, Wang possessed telephone numbers and contact information belonging to Chinese dissidents.

Wang made materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS.  Over the course of three separate interviews, between 2017 and 2021, Wang repeatedly denied or downplayed his contact with individuals from the Chinese intelligence agency.  During one of the interviews, in 2019, Wang was interviewed by federal law enforcement agents at John F. Kennedy International Airport in Queens, New York, after he returned from China.  Wang falsely stated that he had no contact with anyone from the Chinese government and that he had no Chinese government contact information. 

The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ellen H. Sise and Nina C. Gupta of the Eastern District of New York and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution, with assistance from Paralegal Specialists Magdalena St. Surin and Rebecca Roth. 

The Defendant:

SHUJUN WANG
Age:  75
Queens, New York

Co-Defendants At Large:

FENG HE (also known as “Boss He”)
Age:  51
Guangdong, PRC

JIE JI
Age:  52
Qingdao, PRC

MING LI (also known as “Elder Tang” and “Little Li”)
Age:  42
Guangdong, PRC

KEQING LU (also known as “Boss Lu”)
Age:  63
Qingdao, PRC

E.D.N.Y. Docket No. 22-CR-230 (DC)

Earlier today, in federal court in Brooklyn, a complaint was unsealed charging Asif Merchant, also known as “Asif Raza Merchant,” 46, with murder-for-hire as part of a scheme to assassinate a politician or U.S. government officials on U.S. soil.  Law enforcement foiled the charged plot before any attack could be carried out. Merchant is in federal custody in New York.

Merrick B. Garland, Attorney General, Department of Justice, Breon Peace, United States Attorney for the Eastern District of New York, Christopher Wray, Director, Federal Bureau of Investigation (FBI), Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Christie M. Curtis, Acting Assistant Director in Charge, FBI, New York Field Office, announced the arrest and charges.

“For years, the Justice Department has been working aggressively to counter Iran’s brazen and unrelenting efforts to retaliate against American public officials for the killing of Iranian General Soleimani,” said Attorney General Merrick B. Garland. “The Justice Department will spare no resource to disrupt and hold accountable those who would seek to carry out Iran’s lethal plotting against American citizens, and will not tolerate attempts by an authoritarian regime to target American public officials and endanger America’s national security.”

“Working on behalf of others overseas, Merchant planned the murder of U.S. government officials on American soil,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This prosecution demonstrates that this Office and the entire Department of Justice will take swift and decisive action to protect our nation’s security, our government officials and our citizens from foreign threats.”

Mr. Peace expressed his appreciation to the FBI’s Field Offices in Dallas, Houston, Tampa, Boston, Washington D.C., Chicago and Albany field offices for their partnership on this case.   Mr. Peace also expressed his appreciation to the New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection for their assistance.

“This dangerous murder-for-hire plot exposed in today’s charges allegedly was orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a threat to our national security and will be met with the full might and resources of the FBI.”  

“The complaint unsealed today underscores, yet again, that those who engage in lethal plotting on U.S. soil will face the full force of the American justice system,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “The targeting of former and current officials by foreign actors is an affront to our sovereignty and our democratic institutions and the Department of Justice will use every possible tool to expose and disrupt this egregious activity.”

“Fortunately, the assassins Merchant tried to hire were undercover FBI Agents,” said Acting Assistant Director Christie Curtis of the FBI New York Field Office. “This case underscores the dedication and formidable efforts of our agents, analysts and prosecutors in New York, Houston and Dallas. Their success in neutralizing this threat not only prevented a tragic outcome but also reaffirms the FBI’s commitment to protecting our nation and its citizens from both domestic and international threats.”

According to court documents, Merchant orchestrated a plot to assassinate a politician or U.S. government officials on U.S. soil. In approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS). 

In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official. 

At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person. 

Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.

In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies, and for them to kill a “political person.”  Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States. 

Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”  

Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12th, law enforcement agents placed Merchant under arrest before he could leave the country. Merchant has stated that he has a wife and children in Iran and a wife and children in Pakistan.

The charges in the complaint are allegations and Merchant is presumed innocent unless and until proven guilty.

The case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Sara K. Winik and Gilbert Rein and Douglas Pravda are in charge of the prosecution, with assistance from Trial Attorneys David Smith and Joshua Champagne of the Department of Justice’s Counterterrorism Section of the National Security Division.

The Defendant:

ASIF MERCHANT (also known as “Asif Raza Merchant”)
Age:  46
Karachi, Pakistan; Tehran, Iran

E.D.N.Y. Docket No. 24-MJ-467 (JRC)

Earlier today, a complaint was unsealed in Brooklyn charging Asif Merchant, also known as Asif Raza Merchant, 46, with murder-for-hire as part of an alleged scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the charged plot before any attack could be carried out. Merchant is in federal custody.

“For years, the Justice Department has been working aggressively to counter Iran’s brazen and unrelenting efforts to retaliate against American public officials for the killing of Iranian General Soleimani,” said Attorney General Merrick B. Garland. “The Justice Department will spare no resource to disrupt and hold accountable those who would seek to carry out Iran’s lethal plotting against American citizens and will not tolerate attempts by an authoritarian regime to target American public officials and endanger America’s national security.”

“This dangerous murder-for-hire plot exposed in today’s complaint allegedly was orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a threat to our national security and will be met with the full might and resources of the FBI.”  

“The complaint unsealed today underscores, yet again, that those who engage in lethal plotting on U.S. soil will face the full force of the American justice system,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The targeting of former and current officials by foreign actors is an affront to our sovereignty and our democratic institutions and the Department of Justice will use every possible tool to expose and disrupt this egregious activity.”

“Working on behalf of others overseas, Merchant planned the murder of U.S. government officials on American soil,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This prosecution demonstrates that this office and the entire Department of Justice will take swift and decisive action to protect our nation’s security, our government officials and our citizens from foreign threats

“Fortunately, the assassins Merchant allegedly tried to hire were undercover FBI Agents,” said Acting Assistant Director Christie Curtis of the FBI New York Field Office. “This case underscores the dedication and formidable efforts of our agents, analysts and prosecutors in New York, Houston, and Dallas. Their success in neutralizing this threat not only prevented a tragic outcome but also reaffirms the FBI’s commitment to protecting our nation and its citizens from both domestic and international threats.”

According to allegations contained in the complaint and related publicly filed court documents, Merchant orchestrated a plot to assassinate a politician or U.S. government official on U.S. soil. In approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS). 

In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official. 

At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how a target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person. 

Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.

In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies, and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States. 

Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”  

Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country. Merchant has stated that he has a wife and children in Iran and a wife and children in Pakistan.

The FBI is investigating the case.

Assistant U.S. Attorneys Sara K. Winik, Gilbert Rein, and Douglas Pravda for the Eastern District of New York and Trial Attorneys David Smith and Joshua Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.

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

Shujun Wang, 75, a naturalized U.S. citizen of Chinese descent, an academic and author who helped start a pro-democracy organization in Queens, New York, that opposes the current communist regime in the People’s Republic of China (PRC), was convicted today on all four counts of an indictment charging him with acting and conspiring to act as an agent of a foreign government without prior notification to the U.S. Attorney General, criminal use of identification and making false statements to law enforcement.

“This defendant infiltrated a New York-based advocacy group by masquerading as a pro-democracy activist all while covertly collecting and reporting sensitive information about its members to the PRC’s intelligence service,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s verdict demonstrates that those who would seek to advance the Chinese government’s agenda of transnational repression will be held accountable.”

“The indictment could have been the plot of a John LeCarre or Graham Greene spy novel, but the evidence is shockingly real that the defendant led a double life, pretending for years to be an activist for democracy while he was secretly passing information to the Chinese government,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant was a perfect stooge for the PRC, a well-known academic and founder of a pro-democracy organization who was willing to betray those who respected and trusted him. When confronted with his shameful conduct, Wang lied to the FBI, but today’s verdict revealed the truth of his crimes and now he will face the consequences.”

“This conviction underscores the FBI’s commitment to countering espionage schemes by holding those accountable who collect U.S. activist information for the benefit of China,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “Any support for transnational repression is unacceptable, and the FBI works diligently with its partners to seek out and bring to justice those who support such activities.”

Wang is one of the founders of the pro-democracy Hu Yaobang and Zhao Ziyang Memorial Foundation, an organization located in Flushing, Queens, whose members are well-known pro-democracy dissidents who oppose the current government of the PRC. But instead of promoting democracy in the PRC, Wang, at the direction of PRC government officials, used his position within the Memorial Foundation and his status within the Chinese diaspora community to collect information about prominent activists, academics and dissidents, and reported that information to the PRC government.

According to court documents, since at least 2006, Wang operated under the direction and control of his co-defendants – four officials of China’s Ministry of State Security, which is responsible for the PRC’s foreign intelligence collection. At the MSS’ direction, Wang gathered information on people and groups that the PRC considers subversive, such as Hong Kong democracy protestors, advocates for Taiwanese independence and Uyghur and Tibetan activists, both in the United States and abroad. Wang conducted face-to-face meetings with MSS officials while on trips to the PRC and used an encrypted messaging application to receive taskings from his co-defendants and to send and receive written messages and files.

Wang often memorialized the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. Law enforcement recovered from Wang’s residence approximately 163 “diary” entries that he wrote to He, Ji, Li and Lu and other MSS officials. Additionally, in connection with his work for the MSS, Wang possessed telephone numbers and contact information belonging to Chinese dissidents.

Wang made materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS. Over the course of three separate interviews, between 2017 to 2021, Wang repeatedly denied having any contact with individuals from the Chinese intelligence agency. During one of the interviews, in 2019, Wang was interviewed by federal law enforcement agents at John F. Kennedy Internation Airport in Queens, after he returned from China. Wang falsely stated that he had no contact with anyone from the Chinese government and that he had no Chinese government contact information. 

The verdict followed a one-week trial. Wang’s co-defendants in the espionage and transnational repression scheme, Feng He, Jie Ji, Ming Li and Keqing Lu are MSS officials who remain at large. Wang is scheduled to be sentenced on Jan. 9, 2025 and faces up to 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorneys Ellen Sise and Nina Gupta for the Eastern District of New York and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case. 

A federal jury in Brooklyn today convicted David Gentile, the founder, owner and Chief Executive Officer (CEO) of GPB Capital Holdings, LLC (GPB) and Jeffry Schneider, the owner and CEO of Ascendant Capital LLC (Ascendant Capital), on all counts of an indictment charging them with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud; Gentile was also convicted on two counts of wire fraud.  The charges related to a years-long scheme to defraud more than 10,000 investors by misrepresenting the source of funds used to make monthly distribution payments and the amount of revenue generated by three of GPB’s investment funds.  The verdict followed an eight-week trial before United States District Judge Rachel P. Kovner.  When sentenced, Gentile and Schneider each faces up to 20 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“The jury found that the defendants lied to investors about the health of their funds and the source of fund distribution payments, all while they were fraudulently making those distribution payments with investor capital to maintain the appearance of successful portfolio companies,” stated United States Attorney Peace.  “This Office has a proud history of prosecuting fraudsters who abuse the trust of investors, and we will continue to vigorously protect the integrity of the financial markets.”

Mr. Peace expressed his appreciation to the Securities and Exchange Commission, the New York City Business Integrity Commission and the New York City Police Department for their valuable assistance with the case.

GPB, founded in 2013 by Gentile, was a New York-based investment advisor registered with the SEC.  GPB was the general partner of several investment funds that raised and invested capital in a portfolio of private equity investments.  GPB worked with Ascendant Capital, a marketing firm founded by Schneider, to market the GPB funds to investors.  Gentile and Schneider worked closely together on the operation and marketing of GPB funds, receiving regular updates as to the funds’ performance.

As proven at trial, between August 2015 and December 2018, the defendants engaged in a scheme to defraud investors and prospective investors in several GPB funds through material misrepresentations and omissions.  Specifically, Gentile and Schneider, both individually and through employees at Ascendant Capital, represented to investors that the funds would make a monthly distribution payment that would be fully covered from operations, meaning that the companies purchased by the funds would be sufficiently profitable for the payments to be made from the companies’ cash flow, without drawing from capital raised by investors. 

In reality, when the funds’ performance lagged, the defendants tried to disguise the shortfall with fraudulent, back-dated documents and paid investor distributions out of investor capital.  Ultimately, investor capital was used to pay for a significant portion of the distributions made to investors.  Gentile and Schneider were aware that the GPB Funds were underperforming and authorized the fraudulent distribution payments.

This case is being handled by the Office’s Business & Securities Fraud Section.  Assistant United States Attorneys Artie McConnell, Jessica K. Weigel, Nicholas M. Axelrod and Kate Mathews are in charge of the prosecution, with the assistance of Paralegal Specialists Madison Bates and Allison Henry.

The Defendants:

DAVID GENTILE
Age:  57
Manhasset, New York

JEFFRY SCHNEIDER
Age:  55
Austin, Texas

E.D.N.Y. Docket No. 21-CR-54 (RPK)

Earlier today, in federal court in Brooklyn, former federal correction officer Quandelle Joseph was sentenced by United States District Judge Dora L. Irizarry to 30 months’ imprisonment for accepting bribes in exchange for providing contraband to individuals detained at the Metropolitan Detention Center (MDC) in Brooklyn.  Joseph pleaded guilty in January 2024 to the charge of accepting bribes as a public official.

Breon Peace, United States Attorney for the Eastern District of New York, Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General, Northeast Region (DOJ-OIG), and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Quandelle Joseph put his own interests above the safety of incarcerated individuals and other correction officers at the Metropolitan Detention Center by accepting bribes to smuggle drugs, cell phones and other contraband into the jail he was sworn to protect,” stated United States Attorney Peace.  “This Office has zero tolerance for corruption in prison facilities and those who abuse the trust placed in them to carry out their duties will find themselves on the wrong side of the bars like this defendant.” 

“We trust Correctional Officers to carry out their duties with honor and integrity. Joseph did the opposite when he accepted tens of thousands of dollars in bribes in exchange for smuggling dangerous contraband into MDC Brooklyn. Today’s sentencing shows that Correctional Officers who commit these selfish crimes will be held accountable,” stated DOJ-OIG Special Agent in Charge Geach.

“Quandelle Joseph abused his authority as a former correction officer by supplying inmates with contraband for cash and offering advanced warnings to his clientele to obscure this illicit trade from other guards. His actions not only violated the order and regulation necessary for a secure correctional institution, but also threatened the public’s trust in our system. The FBI remains diligent in its pursuit of corrupt public officials who value personal benefit over fulfilling their duty to protect and serve,” stated Acting Assistant Director in Charge Curtis.

According to court documents and facts presented at today’s sentencing proceeding, Joseph became a correction officer at the MDC in May 2020.  During his employment, Joseph accepted tens of thousands of dollars from inmates in exchange for smuggling narcotics, cigarettes, and cell phones into the MDC.  In one instance, Joseph accepted bribes to smuggle contraband into the MDC for an inmate, who then sold the contraband widely throughout his unit.  Joseph also warned the inmate about upcoming contraband searches at the MDC.  For example, on January 26, 2021, Joseph texted an inmate from whom he was taking bribes: “Tighten up search comin clean phones out call logs n text n try to stash it.”  The next day, Joseph texted the inmate: “keep your phones cleannnnnnnnnn erase texts and call logs every night.”   

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Philip Pilmar and Sara K. Winik are in charge of the prosecution.

The Defendant:

QUANDELLE JOSEPH
Age:  34
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-306 (DLI)

A federal jury in Brooklyn today convicted David Motovich of perpetrating a years-long scheme to establish and conceal a massive illegal check-cashing operation.  Motovich was found guilty on 16 counts of an indictment charging him with operating an illegal money transmitting business, failure to file currency transaction reports, bank fraud, conspiracy to commit bank fraud, money laundering, aggravated identity theft, and conspiracy to defraud the United States.  The verdict followed a three-week trial before United States District Judge William F. Kuntz, II.  When sentenced, Motovich faces up to 30 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Thomas Fattorusso, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.

“Taken behind the façade of a seemingly legitimate lumber business in Brooklyn, the jury followed the trail of evidence to find an infestation of crimes,” stated United States Attorney Peace.  “Motovich operated an illegal money transmitting business that funneled millions of dollars to himself to get rich, evade taxes and fund a lavish lifestyle of luxury cars, jewelry and a spectacular penthouse apartment.  With today’s verdict, the defendant finds there is a very high price to pay for his blatant disregard for the law.”

“David Motovich developed an illicit scheme using his family’s business to launder more than $55 million through construction companies to finance lavish purchases.  For seven years, Motovich funneled his proceeds through falsely named bank accounts to conceal the profits and evade authoritative oversight. Despite his efforts to disrupt our investigation into his unlawful activity, today’s verdict highlights the FBI’s tireless dedication to apprehending criminals who employ fraudulent tactics to fund expensive lifestyles,” stated FBI Acting Assistant Director in Charge Curtis.

“Motovich made millions from his back office deals, cashing checks for clients who paid more in fees just to know their transactions were hidden from the government.  But we found out.  And although his shady business allowed him to lease a high-end apartment with expensive renovations and luxury cars, today’s verdict will ensure that his next lease is only for a prison cell, no renovations required,” said Thomas M. Fattorusso, Special Agent in Charge of IRS CI New York.

As proven at trial, Motovich used his family-run business in the Midwood section of Brooklyn as a front for an illegal, unlicensed check-cashing operation.  From the second floor of Midwood Lumber on Coney Island Avenue, Motovich offered his services primarily to the owners and operators of construction companies, cashing millions of dollars in checks to fund off-the-books payrolls for those businesses.  As part of the scheme, Motovich cashed checks for his customers in exchange for a fee or a percentage of the face amount of the checks, ranging between four and 15 percent.  Motovich’s customers paid a higher fee to Motovich than the fees charged by licensed check cashing businesses because the customers understood that Motovich would not file Suspicious Activity Reports or Currency Transaction Reports for cash transactions in amounts greater than $10,000, as required by federal anti-money laundering statutes.  Motovich supplied his check cashing customers with fraudulent documents that they could use to disguise the transactions as payments by the customers for materials and/or subcontracting work if the customers were audited by the New York State Workers Compensation Board or tax authorities.     

In furtherance of his scheme, Motovich created shell companies for the sole purpose of facilitating his illegal check cashing business and instructed his customers to issue checks drawn against their business accounts and make the checks payable to one of the companies.  Motovich then deposited the checks into bank accounts that he created at several financial institutions.  To conceal his control and ownership of the funds in the accounts, and to avoid detection of his scheme, Motovich opened the accounts in the names of other individuals.

In total, between 2012 and 2019, Motovich deposited more than $55 million into the accounts that he had opened in the names of other individuals and used the funds to purchase real estate; pay personal and corporate credit card accounts; purchase luxury items, including millions of dollars of diamonds, watches, jewelry and clothing; make lease and purchase payments for Porsche and Lexus luxury vehicles; pay premiums on multi-million dollar life insurance policies for himself, his wife and others; renovate his penthouse apartment in Manhattan to include a swimming pool; and to fund other business ventures.

Motovich’s co-defendants Marina Kuyan, Kemal Sarkinovic, and Joshua Markovics, all previously pleaded guilty to various charges in connection with the scheme. They are awaiting sentencing.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Robert Polemeni, Erik Paulsen, Andrew Grubin and Matthew Skurnik are in charge of the prosecution, with assistance from Eastern District of New York Special Agent George Dietz and Paralegal Specialist Kavya Kannan. 

The Defendant:

DAVID MOTOVICH
Age:  49
New York, NY

E.D.N.Y. Docket No. 21-CR-497 (WFK)

Milos Radonjic, a citizen of Montenegro, also known as “Pirate of the Unknown,” was extradited yesterday to the Eastern District of New York from Italy.  Radonjic, who is charged in a superseding indictment with conspiracy and attempt to violate the Maritime Drug Law Enforcement Act, had previously been arrested in Italy on October 6, 2023 pursuant to a provisional arrest warrant, after entering the country to compete in an international yacht race in which he was to captain a racing yacht. Radonjic will be arraigned in federal court in Brooklyn on Monday, July 29, 2024, before United States Magistrate Judge Cheryl L. Pollak.

 Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, and David J. Scott, Special Agent in Charge, Federal Bureau of Investigation (FBI), Washington Field Office Criminal and Cyber Division, announced the extradition.

“This arrest and successful extradition is a lesson that the high seas are not a no-man’s land for the rule of law, and that we are committed to bringing those who violate it to justice,” stated United States Attorney Peace.  “Working together with our law enforcement partners and allies around the world, this Office will continue to pursue narcotraffickers who seek to corrupt the critical infrastructure of global shipping to transport their poisonous cargo to our communities.”

Mr. Peace expressed his appreciation to the United States Marshals Service, the United States Department of State, and Italian law enforcement and prosecutorial authorities, including the Ministry of Justice.  The Justice Department’s Office of International Affairs provided valuable assistance with securing the arrest and extradition of Radonjic.

HSI New York Special Agent in Charge Ivan J. Arvelo said: “The defendant’s alleged efforts to utilize the open ocean to transport tons of cocaine were no match for the versatile investigative capabilities of HSI and our law enforcement partners. HSI New York’s El Dorado Task Force is committed to leveraging our international footprint to protect the innocent public – at home, abroad, and in whatever capacity possible. We will relentlessly pursue transnational criminal organizations and their efforts to flout the laws vital to ensuring our communities’ safety and wellbeing.”

“Radonjic and his co-conspirators allegedly transported tons of cocaine across the world using commercial cargo vessels," stated FBI Special Agent in Charge Scott.  “His extradition is a testament to global multiagency efforts to disrupt transnational criminal organizations who traffic drugs by air, land, or sea.”

According to the indictment and court filings, in 2020, Radonjic was a high-ranking member of a large-scale transnational criminal organization that trafficked tons of cocaine across the world using commercial cargo vessels traversing the high seas.  Radonjic communicated and coordinated with multiple co-conspirators to arrange multi-ton shipments of cocaine from South America to the Balkans and elsewhere.  Radonjic allegedly organized three separate attempts, with the assistance of a corrupt crew member on a commercial cargo vessel, to load a container ship with more than 2,500 kilograms of cocaine in Ecuador and off the coast of Colombia. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proved guilty.  If convicted, the defendant faces a mandatory minimum of 10 years’ imprisonment and up to life in prison.

The extradition of Radonjic is the result of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Nomi D. Berenson and Robert M. Pollack are in charge of the prosecution, with assistance from Paralegal Specialist Samuel Ronchetti. 

The Defendant:

MILOS RADONJIC (also known as “Pirate of the Unknown”)
Age:  34
Montenegro

E.D.N.Y. Docket No. 23-CR-257 (S-1) (ARR)

A federal jury in Brooklyn today convicted Alex Levin on both counts of an indictment charging him with conspiracy to commit money laundering and conspiracy to violate the Travel Act in connection with his role in a scheme that resulted in the theft of millions of dollars and property from safe deposit boxes at multiple banks outside of the United States, including in Ukraine, Russia, North Macedonia, Moldova, Latvia, Uzbekistan and Azerbaijan.  The verdict followed a seven-day trial before United States District Judge LaShann DeArcy Hall.  When sentenced, Levin faces up to 10 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“The jury found that Levin played an integral role in a highly sophisticated and well-organized international crew of thieves who stole millions of dollars’ worth of jewelry and cash from banks in Eastern Europe,” stated United States Attorney Peace.  “Levin’s role here in Brooklyn of laundering the cash and purchasing equipment used in the break-ins of safe deposit boxes overseas was crucial to the crew’s success, but with today’s verdict, that role proved to be the defendant’s undoing.”

Mr. Peace also thanked the U.S. Customs and Border Protection for their valuable assistance to the investigation.

“Alex Levin’s conviction signals the downfall of an individual at the center of an international crime spree that utilized technology and illicit methodologies to exploit vulnerabilities within financial institutions around the world.  Today’s verdict proves once again that even the most sophisticated bank heists are no match for HSI New York and our law enforcement partners, both domestic and abroad,” stated HSI New York Special Agent-in-Charge Arvelo.  “I commend the Long Island-based HSI Financial Crimes Group, the Eastern District of New York and the FBI for consistently proving no criminal is too savvy to evade justice.”

FBI Acting Assistant Director in Charge Curtis stated: “Using sophisticated camera tools that he purchased here in Brooklyn, Levin and his international co-conspirators stole from safe deposit boxes belonging to innocent bank customers through a string of thefts across the globe. Today’s verdict is demonstrative of the FBI’s commitment to holding people accountable for their attempts to unlawfully obtain money and valuable items, and we applaud the investigative efforts of our office as well as our partners at the U.S. Attorney’s office in delivering this outcome.”

As proved at trial, between March 2015 and October 2019, Levin was a member of a sophisticated group that targeted foreign banks that appeared to lack strong security features.  Members of the conspiracy posed as customers at the target banks and rented safe deposit boxes.  After gaining access to safe deposit box rooms, the conspirators used specialized medical equipment to take photographs of the inside of the locks of other customers’ safe deposit boxes.  Using these photographs, the conspirators created duplicate keys for the safe deposit boxes in order to steal money and valuables from customers at the foreign banks.

Levin’s role in the conspiracy was based in Brooklyn.  He assisted in laundering the proceeds of the scheme to the United States.  For example, around the time of various bank heists in Ukraine, a company used in furtherance of the unlawful scheme wired the unlawful proceeds to the defendant.  Specifically, on July 31, 2015, Glenport Merchants LLP, a company with a Latvian bank account, wired $150,000 to Levin.  Shortly thereafter, Levin wired $144,727 to a member of the conspiracy who personally participated in the bank heists.

Levin also used bank accounts in the United States, including accounts located in the Eastern District of New York, to purchase sophisticated camera equipment used in the thefts, including borescopes, which are small, specialized, medical grade cameras.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts and dismantles the highest-level money launderers and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Lorena Michelen, Lauren A. Bowman and Megan Larkin are in charge of the prosecution, with the assistance of Paralegal Specialist Wesley Roberts.   

The Defendant:

ALEX LEVIN
Age:  55
Brooklyn, New York

E.D.N.Y. Docket No. 21-CR-208 (LDH)

Earlier today, in federal court in Central Islip, Marquis Douglas, a narcotics trafficker who operated a narcotics business that was responsible for the distribution of large quantities of cocaine, fentanyl and other illicit substances throughout the North Fork of Long Island, was sentenced by United States District Judge Joanna Seybert to 25 years’ imprisonment.  Douglas pleaded guilty in November 2023 to conspiring with others to distribute and possess with the intent to distribute more than five kilograms of cocaine, more than one kilogram of heroin, more than 280 grams of crack cocaine, more than 40 grams of fentanyl and a quantity of fentanyl analogue (fluorofentanyl), and distribution of cocaine and fluorofentanyl on or about August 12, 2021, which resulted in the overdose deaths of four people.  

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Raymond A. Tierney, Suffolk County District Attorney, announced the sentence.

“Douglas’s singular contribution to the opioid epidemic on Long Island is horrific as the drugs he distributed contributed to the deaths of four human beings,” stated United States Attorney Peace.   “Today’s lengthy sentence should serve as a deterrent to those endangering our communities by distributing potentially lethal drugs. It is my hope that holding the defendant accountable for the terrible consequences of his actions will bring a measure of closure to the victims’ families.”

U.S. Attorney Peace also extended his thanks to the Riverhead Police Department, the Southold Police Department, the Shelter Island Police Department and the New York State Police for their assistance with the investigation.

“Marquis Douglas’s unlawful narcotics trafficking operation resulted in the deaths of four individuals on Long Island and posed a significant threat to the welfare of its citizens. His actions fueled an ongoing epidemic by supplying lethal drugs to our community. The FBI is committed to disrupting the flow of these illicit substances in our streets to prevent future unnecessary fatalities,” stated FBI Acting Assistant Director in Charge Curtis.

“This defendant dealt multiple kilograms of various deadly drugs, resulting in four tragic overdose deaths. This underscores why New York State needs to adequately address the opioid overdose epidemic plaguing communities throughout NY state and the country,” said District Attorney Tierney. "Thankfully, the strong collaboration between our office and our federal law enforcement partners allowed this case to be charged federally and provide justice for the families of these victims.”

On August 13, 2021, four men were found dead on the East End of Long Island after using cocaine that had been laced with a fentanyl analogue.  An investigation by the Southold Police Department, the Shelter Island Police Department, the Suffolk County District Attorney’s Office and the FBI determined that Douglas was the source of the lethal narcotics.  In August of 2021, Douglas’ operation distributed a quantity of cocaine laced with a fentanyl analogue in Greenport, New York.  When this product was re-distributed at the street level, it ultimately led to four fatal overdoses on a single day in Greenport and Shelter Island.  Douglas had distributed multiple kilograms of cocaine over the years, as well as kilogram level quantities of heroin and large quantities of fentanyl. At the time of his arrest in May of 2022, Douglas was found in possession of 105 grams of fentanyl and 135 grams of cocaine. 

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Michael R. Maffei and Andrew P. Wenzel, along with Special Assistant United States Attorney Dana Gremaux, are in charge of the prosecution.

The Defendant:

MARQUIS DOUGLAS
Age: 39
Riverhead, Long Island

E.D.N.Y. Docket No. 22-CR-246 (JS)

Earlier today, in federal court in Brooklyn, Francius Marganda, an Indonesian national, pleaded guilty to securities fraud in connection with a $23 million Ponzi scheme that defrauded hundreds of predominantly Indonesian and Indo-American victim investors.  The plea proceeding took place before United States Magistrate Judge Marcia M. Henry.  As part of his plea, Marganda admitted that he agreed to launder proceeds of the securities fraud, and he agreed to forfeit more than $7.5 million that he misappropriated from investors.  When sentenced, Marganda faces up to 20 years in prison.  Marganda was extradited to the United States from Singapore in November 2023.  

Breon Peace, United States Attorney for the Eastern District of New York; Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ivan J. Arvelo, Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), announced the guilty plea.

“As he admitted today, Marganda led a $23 million Ponzi scheme directly targeting his fellow countrymen, Indonesian and Indo-American victims, stealing their hard-earned funds and spending them on luxury goods and real estate,” stated United States Attorney Peace. “This Office will continue to use all tools available to protect those living in the Eastern District, from prevention efforts, including educating the public about red flags of financial fraud, to holding swindlers accountable for their crimes and seeking to recover and return victims’ money.”

Mr. Peace thanked the Justice Department’s Office of International Affairs, particularly the DOJ Attachés based in Manila and Bangkok; law enforcement partners at the U.S. Embassy in Singapore, including the FBI’s Legal Attaché, the HSI Attaché and the U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office; and Singaporean authorities, particularly the Singapore Police Force and the Attorney-General’s Chambers, for their assistance with Marganda’s arrest and extradition.  Mr. Peace also thanked the Securities and Exchange Commission, Fort Worth Regional Office; the United States Attorney’s Office for the Southern District of New York; the Internal Revenue Service Criminal Investigation, New York; the Federal Trade Commission; the New York State Attorney General’s Office; the Commonwealth of Massachusetts Attorney General’s Office; the New York County District Attorney’s Office; the Queens County District Attorney’s Office; the New York City Police Department; the Westford Police Department, Westford, Massachusetts; the Richfield Police Department, Richfield, Minnesota; and the Lexington Police Department, Lexington, South Carolina, for their assistance with the investigation.

“Francius Marganda’s guilty plea serves as a positive step toward justice for more than 400 victims, whom he and his co-conspirators are estimated to have swindled out of over $23 million collectively throughout the global, years-long Ponzi scheme. We recognize there is more work to be done and there are likely countless additional victims worldwide who have not yet come forward. HSI New York’s El Dorado Task Force is committed to leveraging our international footprint to protect the innocent public at home and abroad," said HSI New York Special Agent in Charge Ivan J. Arvelo. "We are proud to stand alongside the Eastern District of New York, the FBI, and all law enforcement partners in relentlessly pursuing predators who place their own selfish gain above all else.”

As set forth in court filings, while living in New York, Marganda and his co-conspirators ran a scheme to defraud investors from May 2019 to May 2021 by soliciting investments in two sham loan programs called Easy Transfer and Global Transfer, which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income.  The victims resided in more than a dozen states in the United States, including in New York, and in Indonesia.  Many of the victims had limited means and had pooled their resources with relatives and friends to make investments.  Marganda and his co-conspirators misappropriated the funds for their own benefit, including by buying real estate and luxury goods.  The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments.

The FBI and HSI have established a website and an e-mail hotline for potential victims.  If you have information regarding the allegations in the indictment or believe that you may be a victim, please go to www.fbi.gov/Marganda or e-mail HSIMarganda@hsi.dhs.gov

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud, such as the fraud that Marganda committed.

To request a financial fraud presentation from the U.S. Attorney’s Office for the Eastern District of New York, please email USANYE-SpeakersBureau@usdoj.gov.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Victor Zapana and Laura Zuckerwise are in charge of the prosecution, with assistance from Paralegal Specialist Kavya Kannan.

The Defendant:                                                  

FRANCIUS MARGANDA
Age:  41
Jakarta, Indonesia and formerly of Queens, New York

E.D.N.Y. Docket No. 22-CR-481 (DLI)

Between June 4, 2024 and today, in federal court in Central Islip, four defendants, Edward Hernandez, Christopher Flagg, Daquan Lloyd and Corey Ortiz pleaded guilty to money laundering conspiracy in connection with a scheme to steal millions of dollars from a global financial services company based in Menlo Park, California. The proceedings were held before United States District Judge Gary R. Brown.  When sentenced, each defendant faces a maximum sentence of 20 years’ imprisonment, restitution of up to $2,087,164, and forfeiture between $56,390 and $700,425.

Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.

“Each defendant was convicted of their roles in a sprawling and complex nationwide scheme organized from Long Island to steal millions of dollars that were intended for legitimate investors and launder the proceeds of their crime,” stated United States Attorney Breon Peace.  “Today’s guilty plea demonstrates how this Office will swiftly bring to justice those who fraudulently manipulate the financial system, no matter how complex the scheme.”

Mr. Peace expressed his appreciation to the Securities and Exchange Commission for their assistance with the case. 

Between December 2018 and January 2023, the defendants engaged in a scheme to defraud a global financial services company of millions of dollars of short-term cash advances, called “Instant Deposits.”  The Instant Deposits were intended to enable legitimate investors to immediately trade in their brokerage accounts without having to wait for an incoming wire transfer to clear.  To gain access to millions of dollars of Instant Deposits, which were typically capped at $5,000 per account, the defendants established a multi-state recruitment network through which the defendants opened hundreds of fraudulent accounts held in the names of straw account holders, or “Losing Accounts.” 

Using the Instant Deposits available to the Losing Accounts, the defendants repeatedly bought thinly traded and highly speculative stock options at above-market prices.  Selecting these virtually worthless stock options enabled the defendants to match their bids in the Losing Accounts with offers to sell the same overpriced stock options initiated by other brokerage accounts, or “Winning Accounts,” that were also controlled by the defendants and their conspirators.  In effect, the defendants transferred the Instant Deposits from the Losing Accounts to the Winning Accounts by way of fraudulent securities transactions. 

Meanwhile, the incoming wire transfers supposed to cover the Instant Deposits in the Losing Accounts had purposely been initiated by the defendants from bank accounts that had little or no balance.  These wire transfers, therefore, failed to clear, but not before the defendants drained the Instant Deposits, leaving the accounts with negative balances and worthless options.  The defendants then laundered the stolen funds through multiple electronic banking platforms.  

In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million.

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud and money laundering.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Jonathan P. Lax and Sara K. Winik are in charge of the prosecution with the assistance of Paralegal Specialists Jacob Menz, Liam McNett and Sarah Burn.

The Defendants:

EDUARDO HERNANDEZ (also known as “Ghost”)
Age: 33
Lindenhurst, New York

CHRISTOPHER FLAGG (also known as “Venus”)
Age: 28
Copiague, New York

DAQUAN LLOYD (also known as “Payday”)
Age: 29
Copiague, New York

COREY ORTIZ (also known as “Jefe”)
Age: 29
Greensboro, North Carolina

E.D.N.Y. Docket No. 23-CR-428 (GRB)

A Leader of Maniac Murder Cult, a White Supremacist Group, Allegedly Recruited Others to Commit Arsons and Bombings Targeting Racial Minorities and the Jewish Community

Planned New Year’s Eve Attack Involved Santa Claus Handing Out Poisoned Candy to Racial Minorities as well as Distributing Poisoned Candy to Jewish Children in Brooklyn

A federal grand jury in Brooklyn, New York, returned a four-count indictment today charging Georgian national Michail Chkhikvishvili, 20, also known as Mishka, Michael, Commander Butcher and Butcher, with soliciting hate crimes and acts of mass violence in New York City.

According to court documents, Chkhikvishvili was arrested pursuant to an Interpol Wanted Person Diffusion, which was issued based on a criminal complaint. Chkhikvishvili is alleged to be a leader of the Maniac Murder Cult, also known as Maniacs Murder Cult, Maniacs: Cult of Killing, MKY, MMC and MKU, an international racially or ethnically motivated violent extremist group. MKY adheres to a neo-Nazi accelerationist ideology and promotes violence and violent acts against racial minorities, the Jewish community and other groups it deems “undesirables.” MKY members share a common goal of challenging social order and governments via terrorism and violent acts that promote fear and chaos. MKY has members in the United States and abroad. Chkhikvishvili allegedly recruited others to commit violent acts in furtherance of MKY’s ideologies, including planning and soliciting a mass casualty attack in New York City from an undercover law enforcement employee whom Chkhikvishvili believed was a prospective MKY recruit.

Since approximately September 2021, Chkhikvishvili has distributed a manifesto titled the “Hater’s Handbook” to MKY members and others. The handbook discusses MKY’s principles and encourages members to engage in acts of mass violence in furtherance of those principles. In the handbook, Chkhikvishvili states that he has “murdered for the white race” and encourages and instructs others to commit acts of mass violence and “ethnic cleansing.” For example, and among other things, the handbook encourages its readers to commit school shootings and to use children to perpetrate suicide bombings and other mass killings targeting racial minorities. The document describes methods and strategies for committing mass “terror attacks,” including, for example, using vehicles to target “large outdoor festivals, conventions, celebrations and parades” and “pedestrian congested streets.” It specifically encourages committing attacks within the United States.

In June 2022, Chkhikvishvili traveled to Brooklyn, New York and stayed with his grandmother while he was there. He provided to border authorities his grandmother’s address in Brooklyn as his address of record in the United States.

Beginning at least as early as July 2022, Chkhikvishvili repeatedly encouraged others, primarily via encrypted mobile messaging platforms, to commit violent hate crimes and other acts of violence on behalf of MKY. This included conspiring to solicit violent acts with a leader of a separate violent extremist neo-Nazi group and soliciting acts of mass violence in New York from an individual who claimed to be a prospective MKY recruit, but who, unbeknownst to Chkhikvishvili, was actually an undercover FBI employee (the UC).

In a September 2023 conversation, the UC messaged Chkhikvishvili whether there was an application process to join MKY. The defendant responded, “Well yes we ask people for brutal beating, arson/explosion or murder vids on camera.” He further stated that “[p]oisoning and arson are best options for murder,” and suggested also considering a larger “mass murder” within the United States. Chkhikvishvili advised the UC that the victims of these acts should be “low race targets.”

Beginning in approximately November 2023, Chkhikvishvili solicited the UC to commit violent crimes, such as bombings and arsons, for the purpose of harming racial minorities, Jewish individuals and others. Chkhikvishvili provided detailed plans and materials such as bomb-making instructions and guidance on making Molotov cocktails to facilitate his desire for the UC to carry out these crimes. In November 2023, Chkhikvishvili began planning a mass casualty attack in New York City to take place on New Year’s Eve. The scheme involved an individual dressing up as Santa Claus and handing out candy laced with poison to racial minorities. The scheme also involved providing candy laced with poison to children at Jewish schools in Brooklyn. Chkhikvishvili drafted step-by-step instructions to carry out the scheme and shared with the UC detailed manuals on creating and mixing lethal poisons and gases. He also instructed the UC on methods of making ricin-based poisons in powder and liquid form, including by extracting ricin from castor beans. Some of the materials transmitted by Chkhikvishvili have been linked to radical Islamist jihadist groups and designated foreign terrorist organizations such as the Islamic State of Iraq and Syria (ISIS). Chkhikvishvili intended that the planned attack would be a “bigger action than Breivik,” referring to Anders Behring Breivik, a Norwegian neo-Nazi who killed 77 people in a bombing and mass shooting in Norway in 2011. Meanwhile, he told others of his plan and claimed to have previously committed other hate crimes while living in Brooklyn, New York, in 2022. Chkhikvishvili boasted to others that he was “glad I have murdered,” and that he would “murder more” but “make others murder first.”    

If convicted, Chkhikvishvili faces a maximum penalty of 20 years in prison for solicitation of violent felonies (including hate crime acts and transporting an explosive with intent to kill or injure), a maximum penalty of five years in prison for conspiring to solicit violent felonies, a maximum penalty of 20 years in prison for distributing information pertaining to the making and use of explosive devices and a maximum penalty of five years in prison for transmitting threatening communications.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.

The FBI is investigating the case.

Assistant U.S. Attorneys Ellen H. Sise and Andrew D. Reich for the Eastern District of New York and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section are prosecuting the case. The Justice Department’s Civil Rights Division also provided assistance.

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

Planned New Year’s Eve Attack Involved Santa Claus Handing Out Poisoned Candy to Racial Minorities as well as Distributing Poisoned Candy to Jewish Children in Brooklyn

BROOKLYN, NY – A federal grand jury in Brooklyn yesterday returned a four-count indictment charging Georgian national Michail Chkhikvishvili, also known as “Mishka,” “Michael,” “Commander Butcher” and “Butcher,” with soliciting hate crimes and acts of mass violence in New York City.  Chkhikvishvili was arrested in Chișinău, Moldova on July 6, 2024 pursuant to an Interpol Wanted Person Diffusion, which was issued based on a criminal complaint. Chkhikvishvili is alleged to be a leader of the Maniac Murder Cult, also known as “Maniacs Murder Cult,” “Maniacs: Cult of Killing,” “MKY,” “MMC” and “MKU,” an international racially or ethnically motivated violent extremist group.  Chkhikvishvili allegedly recruited others to commit violent acts in furtherance of MKY’s ideologies, including planning and soliciting a mass casualty attack in New York City from an undercover law enforcement employee whom Chkhikvishvili believed was a prospective MKY recruit.

Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges. 

“As alleged, the defendant sought to recruit others to commit violent attacks and killings in furtherance of his Neo-Nazi ideologies,” stated United States Attorney Peace.  “His goal was to spread hatred, fear and destruction by encouraging bombings, arson and even poisoning children, for the purpose of harming racial minorities, the Jewish community and homeless individuals.  We will not hesitate to find and prosecute those who threaten the safety and freedoms of all members of our community, including members of minority communities, no matter where in the world these criminals might be hiding.”  

Mr. Peace praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force (JTTF), which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state and local agencies.

FBI Acting Assistant Director in Charge Curtis stated, “Today’s charges underscore the dedication of our Joint Terrorism Task Force and our partners in New York in safeguarding our nation’s security. The swift disruption of this individual, accused of allegedly plotting violent attacks in New York, sends a clear message: we will use every resource in our power to ensure the safety of the American people. The men and women who work on this task force day in and day out exemplify true service to our community, demonstrating unwavering commitment in thwarting those who seek to harm our citizens and our way of life.”

As alleged, Chkhikvishvili was a leader of MKY, an international racially or ethnically motivated violent extremist group.  MKY adheres to a Neo-Nazi accelerationist ideology and promotes violence and violent acts against racial minorities, the Jewish community and other groups it deems “undesirables.”  MKY members share a common goal of challenging social order and governments via terrorism and violent acts that promote fear and chaos.  MKY has members in the United States and abroad.

Since approximately September 2021, Chkhikvishvili has distributed a manifesto titled the “Hater’s Handbook” to MKY members and others.  The Handbook discusses MKY’s principles and encourages members to engage in acts of mass violence in furtherance of those principles.  In the Handbook, Chkhikvishvili states that he has “murdered for the white race” and encourages and instructs others to commit acts of mass violence and “ethnic cleansing.”  For example, and among other things, the Handbook encourages its readers to commit school shootings and to use children to perpetrate suicide bombings and other mass killings targeting racial minorities.  The document describes methods and strategies for committing mass “terror attacks,” including, for example, using vehicles to target “large outdoor festivals, conventions, celebrations and parades” and “pedestrian congested streets.”  It specifically encourages committing attacks within the United States.

In June 2022, Chkhikvishvili traveled to Brooklyn, New York and stayed with his grandmother while he was there. He provided to border authorities his grandmother’s address in Brooklyn as his address of record in the United States.

As alleged, beginning at least as early as July 2022, Chkhikvishvili repeatedly encouraged others, primarily via encrypted mobile messaging platforms, to commit violent hate crimes and other acts of violence on behalf of MKY.  This included conspiring to solicit violent acts with the leader of a separate violent extremist Neo-Nazi group, and soliciting acts of mass violence in New York from an individual who claimed to be a prospective MKY recruit, but who, unbeknownst to Chkhikvishvili, was actually an undercover FBI employee (the UC).  

In a September 2023 conversation, the UC messaged Chkhikvishvili whether there was an application process to join MKY.  The defendant responded, “Well yes we ask people for brutal beating, arson/explosion or murder vids on camera.” He further stated that “[p]oisoning and arson are best options for murder,” and suggested also considering a larger “mass murder[]” within the United States. Chkhikvishvili advised the UC that the victims of these acts should be “low race targets.”

Beginning in approximately November 2023, Chkhikvishvili solicited the UC to commit violent crimes, such as bombings and arsons, for the purpose of harming racial minorities, Jewish individuals and others.  Chkhikvishvili provided detailed plans and materials such as bomb-making instructions and guidance on making Molotov cocktails to facilitate his desire for the UC to carry out these crimes.  In November 2023, Chkhikvishvili began planning a mass casualty attack in New York City to take place on New Year’s Eve.  The scheme involved an individual dressing up as Santa Claus and handing out candy laced with poison to racial minorities.  The scheme also involved providing candy laced with poison to children at Jewish schools in Brooklyn.  Chkhikvishvili drafted step-by-step instructions to carry out the scheme and shared with the UC detailed manuals on creating and mixing lethal poisons and gases.  He also instructed the UC on methods of making ricin-based poisons in powder and liquid form, including by extracting ricin from castor beans.  Some of the materials transmitted by Chkhikvishvili have been linked to radical Islamist jihadist groups and designated foreign terrorist organizations such as the Islamic State of Iraq and Syria (ISIS).

Chkhikvishvili intended that the planned attack would be a “bigger action than Breivik,” referring to Anders Behring Breivik, a Norwegian Neo-Nazi who killed 77 people in a bombing and mass shooting in Norway in 2011.  Meanwhile, he told others of his plan and claimed to have previously committed other hate crimes while living in Brooklyn, New York in 2022.  Chkhikvishvili boasted to others that he was “glad I have murdered,” and that he would “murder more” but “make others murder first.”    

The charges in the complaint and indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Chkhikvishvili faces a maximum sentence of 20 years’ imprisonment for solicitation of violent felonies (including hate crime acts and transporting an explosive with intent to kill or injure), five years’ imprisonment for conspiring to solicit violent felonies, 20 years’ imprisonment for distributing information pertaining to the making and use of explosive devices, and five years’ imprisonment for transmitting threatening communications.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ellen H. Sise and Andrew D. Reich are in charge of the prosecution with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon.  The Justice Department’s Civil Rights Division also provided assistance.

The Defendant:

MICHAIL CHKHIKVISHVILI (also known as “Mishka,” “Michael,” “Commander Butcher” and “Butcher”)
Age:  20
Tbilisi, Georgia

E.D.N.Y. Docket No. 24-CR-286 (CBA)

A dual citizen of the United States and Ghana will make his initial appearance today in the Eastern District of New York to face charges related to his participation in a scheme to bribe Ghanaian officials to obtain and retain business from the Republic of Ghana.

Asante Kwaku Berko, 50, was extradited yesterday from the United Kingdom to the United States.

According to court documents, between December 2014 and March 2017, Berko, an executive director in the Investment Banking Division of a wholly owned subsidiary of a U.S. global investment banking, securities, and investment management firm, allegedly conspired with others in connection with a multi-year bribery and money laundering scheme. During this time, Berko was a member of the team at the firm that was responsible for securing and managing a deal between its client, a Turkish energy company, and the Republic of Ghana to build a power plant in Ghana and to provide financing for the plant. Berko and others allegedly offered and paid more than $70,000 in bribes to government officials in Ghana in exchange for their assistance in ensuring that the Turkish energy company was successful in winning the bid to build and operate the power plant.

Berko is charged with one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, and one count of conspiring to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison for conspiring to commit money laundering and five years in prison for each count of violating the FCPA and conspiring to violate the FCPA.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; and Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch made the announcement.

The FBI’s International Corruption Unit is investigating the case.

Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Alixandra Smith, Tara McGrath, and Jessica Weigel for the Eastern District of New York are prosecuting the case.

The Justice Department’s Office of International Affairs worked with the Government of the United Kingdom, U.K. National Central Bureau of INTERPOL, and U.S. Marshals Service to secure the arrest and extradition of Berko.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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

Asante Kwaku Berko, a dual citizen of the United States and Ghana, will be arraigned in federal court in Brooklyn today before Magistrate Judge Vera M. Scanlon on an indictment charging him with violations of the Foreign Corrupt Practices Act (FCPA) and money laundering for bribing Ghanaian government officials to secure a power plant deal and laundering the payments through the U.S. financial system.  Yesterday, Berko was extradited to the Eastern District of New York from the United Kingdom where he was arrested on November 3, 2022 pursuant to an Interpol Diffusion Notice.

Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General, Head of the Criminal Division and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the extradition.

“As alleged, the defendant bribed Ghanaian government officials to secure a lucrative development contract relying on the U.S. banking system to execute his scheme,” stated United States Attorney Peace.  “My Office is committed to rooting out bribery and other criminal practices that create inequities in the playing field for business both here and abroad and exploit the U.S. banking system.”

Mr. Peace expressed his appreciation to the Government of the United Kingdom, the U.K. National Centre Bureau for INTERPOL, the Embassy of the United States in London, the Department’s Office of International Affairs and the U.S. Marshals Service for providing substantial assistance in securing the arrest and extradition of the defendant. 

“For over two years, Asante Berko, a dual citizen of the U.S. and Ghana, allegedly bribed Ghanian government officials to monopolize a promising business deal and used United States bank accounts to transfer such kickbacks. Financially influencing decision-makers, including those overseas, jeopardizes the integrity of affected countries while creating an unfair advantage to those promoting the bribery scheme. The FBI will not permit citizens, regardless of their nationality, to obtain corrupt contracts by exploiting foreign countries and utilizing our nation to facilitate the movement of unlawful payments,” stated FBI Assistant Director in Charge Curtis.

As set forth in the indictment, between approximately December 2014 and March 2017, Berko conspired with others to bribe Ghanaian government officials in connection with the development and financing of a multi-million-dollar power plant in Ghana.  Berko, an Executive Director in the Investment Banking Division of a subsidiary of a U.S. bank, was responsible for securing and managing a deal between its client, a Turkish energy company, and the Republic of Ghana, for the construction and financing of a power plant in Ghana. 

During the scheme, Berko and his co-conspirators paid hundreds of thousands of dollars in bribes—including to Ghanaian officials—to ensure the Turkish energy company won its bid to build and operate the power plant.  For example, in April 2015, bribes were paid to five Ghanaian officials during an all-expenses-paid trip to Turkey to view equipment for the power plant, during which the officials each received $5,000.  After the power plant deal was ratified by the Ghanaian parliament in July 2015, Berko and his co-conspirators exchanged detailed emails regarding their bribe payments.  In August 2015, they discussed $250,000 in bribe payments paid to various individuals, including $20,000 to the “MoP Girls”—who were with the Ghanaian Ministry of Power and who a co-conspirator described as “vital to our communication and information acquisition.”  The emails further detailed tens of thousands of dollars in bribes that Berko had personally paid and for which he was still owed.  Payments in furtherance of the bribery scheme were laundered through U.S. and foreign bank accounts, including several in Berko’s name.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted, Berko faces a maximum penalty of 20 years in prison for conspiring to commit money laundering and five years in prison for each count of violating the FCPA and conspiring to violate the FCPA.

The investigation was conducted by the FBI’s International Corruption Unit.  The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Alixandra Smith, Jessica Weigel and Tara McGrath are in charge of the prosecution, along with Trial Attorney Elina Rubin-Smith of the Department of Justice’s Criminal Division, Fraud Section. 

The Justice Department’s Office of International Affairs worked with the Government of the United Kingdom, U.K. National Central Bureau of INTERPOL, and U.S. Marshals Service to secure the arrest and extradition of Berko.

The Defendant:

ASANTE KWAKU BERKO
Age:  50
Ghana / United Kingdom

E.D.N.Y. Docket No. 20-CR-328 (DG)

Carlos Watson, the founder and former Chief Executive Officer of Ozy Media Inc. (Ozy), was convicted today by a federal jury in Brooklyn of conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft in connection with a years-long scheme to defraud investors in and lenders to Ozy of tens of millions of dollars.  Ozy was also convicted on both counts of the indictment.  The verdict followed 8 weeks of trial before United States District Judge Eric R. Komitee.  When sentenced, Watson faces a minimum sentence of two years in prison, and a maximum sentence of 37 years in prison.  The company also faces financial penalties. Watson was remanded pending sentencing.

Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“The jury found that Watson was a con man who told lie upon lie upon lie to deceive investors into buying stock in his company.  Watson invented phony financial figures and caused others to forge fake contracts and impersonate a media executive,” stated United States Attorney Peace.  “Ozy Media ultimately collapsed under the weight of Watson’s dishonest schemes and with today’s verdict, Watson himself has been held accountable for his brazen crimes.  My Office is committed to ensuring integrity in the financial markets and protecting investors, small and large, from fast-talking fraudsters looking to betray their trust and separate them from their money.”

“The conviction of Carlos Watson underscores the profound damage caused by corporate fraud schemes. Watson's deceitful actions in defrauding investors of their funds and an attempt to defraud a financial institution of tens of millions of dollars illustrated the vulnerability of investors to false information. The FBI remains committed to bringing to justice those who engage in fraudulent activities, ensuring that the integrity of our financial markets is upheld and that market participants are protected from dishonest practices,” stated FBI Acting Assistant Director in Charge Curtis.

Ozy was a media and entertainment company with businesses that included digital newsletters, television production, podcasts and live events, the most prominent of which was a live festival known as “Ozy Fest.”  Watson founded Ozy in 2012 and served as the company’s Chief Executive Officer.  The company is now defunct.

As proven at trial, between 2018 and 2021, Watson and his co-conspirators, including then-Chief Operating Officer Samir Rao and then-Chief of Staff Suzee Han, orchestrated a scheme to defraud investors out of tens of millions of dollars through fraudulent misrepresentations and omissions about Ozy’s financial performance, including revenue, cash on hand and profit, ongoing business relationships with celebrities, acquisition prospects from high- profile technology and media corporations, contract negotiations and other corporate metrics.  For example, Watson and his co-conspirators lied to prospective investors about who else might be investing in Ozy, the existence and size of acquisition offers received by Ozy, the existence and timing of “Series C” and “Series D” financing rounds by Ozy, and the existence and terms of Ozy’s business contracts — going so far as to direct Ozy employees to create fake contracts with forged signatures to provide in due diligence.  On multiple occasions, when faced with questions from lenders or potential investors, Watson and his co-conspirators assumed the identities of and impersonated actual media company executives to cover up their prior fraudulent misrepresentations.                

Forged Cable Television Contract and Impersonation of Media Executive

In December 2019, Watson and his co-conspirators attempted to induce a bank to lend Ozy money based on misrepresentations and omissions about Ozy’s business.  Watson and his co-conspirators sought to secure the loan with anticipated revenues from a second season of an Ozy television show.  However, the contract between Ozy and the show’s cable network for the second season of the show was still under negotiation.  To induce the bank to make the loan sooner, Watson directed Ozy’s then-Chief Financial Officer (CFO) Tripti Thakur to send the bank a fake signed contract between Ozy and the cable network purporting to be for the second season.  When Thakur refused, Rao, with Watson’s approval, sent the fake contract to the bank, copying the then-CFO.  Later that day, Thakur emailed Watson and Rao to say that she was resigning effective immediately.  She explained, “this . . . is illegal.  This is fraud.  This is forging someone’s signature with the intent of getting an advance from a publicly traded bank.”  She continued, “To be crystal clear, what you see as a measured risk — I see as a felony.”

In subsequent months, Watson and his co-conspirators continued to attempt to induce the bank to lend Ozy several million dollars based on misrepresentations and omissions, including regarding the expected revenue from the second season of the Ozy television show.  During these discussions, the bank requested to speak to a representative of the cable network.  To conceal the lies about Ozy’s relationship with the cable network and the status and terms of their agreement, Rao, with Watson’s approval, created a fake email address in the name of an actual executive of the cable network, which Rao used to impersonate the executive and communicate with the bank about the potential loan.

Attempted Fraudulent Investment and Impersonation of Another Media Executive

From approximately November 2020 through February 2021, Watson and his co-conspirators attempted to induce Goldman Sachs to invest up to $45 million in Ozy by means of material misrepresentations and omissions regarding Ozy’s historical and projected financial results, debts, and business relationships.  Had the full $45 million investment occurred as intended, $6 million of the $45 million would have been paid to Watson personally. 

As part of its due diligence process, Goldman Sachs executives asked Watson and Rao to arrange a meeting with someone from YouTube.  Watson and his co-conspirators claimed the online video service had paid Ozy nearly $6 million in licensing revenue for “The Carlos Watson Show.”  This was another misrepresentation — Ozy was never paid by YouTube for Ozy content.  Because Ozy did not in fact have any business relationship with YouTube, Watson and Rao agreed that Rao would impersonate a media executive at YouTube in communications with Goldman Sachs.  On January 28, 2021, Rao, with Watson’s agreement, created a fake email address in the name of the media executive, which he used to correspond with representatives of Goldman Sachs.

On February 2, 2021, Rao had a phone call with employees of Goldman Sachs during which he impersonated a media executive from YouTube using a voice alteration application that he downloaded onto his cellular telephone to mask his voice during the call.  During the call, Watson was in the same room as Rao, and texted Rao instructions about what to say and what not to say on the call.  Shortly after the call, one of the employees of the financial institution contacted the actual media executive of YouTube who confirmed that he had not been on the call and that the online video service had no role in the production of The Carlos Watson Show.  When members of Goldman Sachs later spoke with Watson, he falsely claimed that Rao had acted alone and as a result of a mental breakdown.

* * * * *

Rao and Han previously pleaded guilty to charges relating to their roles in the scheme and are awaiting sentencing.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Jonathan Siegel, Gillian Kassner, and Dylan A. Stern are in charge of the prosecution, with assistance from Paralegal Specialist Jacob Menz.

The Defendants:

CARLOS WATSON
Age:  54
Mountain View, California

OZY MEDIA, INC.
Mountain View, California

E.D.N.Y. Docket No. 23-CR-82 (EK)

Earlier today, in federal court in Brooklyn, Olabanji Otufale and Marc Lazarre pleaded guilty without a plea agreement to conspiracy to commit wire fraud and aggravated identity theft. The proceeding was held before United States District Judge Kiyo A. Matsumoto.  The defendants pleaded guilty as jury selection and trial was set to begin this morning.  When sentenced, the defendants each face a maximum sentence of 32 years’ imprisonment and a mandatory minimum sentence of 2 years’ imprisonment.

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty pleas.

“The defendants shamefully stole vulnerable homeless victims’ personal identifying information for their own personal gain,” stated United States Attorney Breon Peace.  “Instead of investigating fraud, as the City of New York trusted Otufale to do, the defendants abused Otufale’s position and access to sensitive data to commit fraud.  That the defendants face a mandatory prison sentence of two years should serve as a deterrent message to others who think about corruptly stealing identities and taxpayer funds.”

“Leveraging his position within the New York City Department of Homeless Services, Olbanji Otufale stole homeless individuals’ personal information and enlisted a co-conspirator to use these sensitive details for his own financial benefit. The defendants’ actions exemplify the harmful abuses of power the FBI is dedicated to preventing, and we applaud the efforts of our office and the Department of Investigation in bringing about this verdict,” stated FBI Acting Assistant Director in Charge Curtis.

DOI Commissioner Jocelyn E. Strauber said, “These two defendants exploited the intended beneficiaries of public funds to steal those funds for their own gain. Unacceptable under any circumstances, this conduct is particularly troubling because one defendant, a City fraud investigator, had a duty to identify and prevent the very crimes in which he engaged, abusing his access and position of trust and authority.  I thank the United States Attorney’s Office for the Eastern District of New York and the FBI for their continued partnership in protecting public funds and holding accountable those who drain these precious resources for personal profit.”

As alleged in the indictment, court filings and statements made in court, in the fall of 2020, the defendants conspired to steal the personal identifying information of homeless individuals and use that stolen information to fraudulently apply for unemployment insurance benefits in the names of those homeless individuals without their knowledge or consent.

At the time of the scheme, Otufale was a fraud investigator with the New York City Department of Homeless Services.  In that role, Otufale was responsible for ensuring individuals who applied for homeless services—such as housing in homeless shelters—were qualified to receive New York City Department of Homeless services. 

Otufale, however, used his access to a Department of Homeless Services database to steal the personal identifying information—names, social security numbers, dates of birth—of vulnerable victims who had given that personal information to the Department of Homeless Services when they applied for social services.  Otufale then texted this victim information to Lazarre who applied online for unemployment benefits in the names of the homeless victims.  Otufale and Lazarre conspired to split the fraudulent benefits they received. 

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Sara K. Winik, Laura Zuckerwise and Katherine P. Onyshko are in charge of the prosecution, with assistance from Paralegal Specialist Nadya Osman.

The Defendants:

Olabanji Otufale
Age: 41
Brooklyn, New York

Marc Lazarre
Age: 39
Secaucus, New Jersey

E.D.N.Y. Docket No. 24-CR-170 (KAM)

Earlier today, at the federal courthouse in Central Islip, Edwin Amaya-Sanchez, also known as “Strong,” a member of the Guanacos Lil Cycos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States District Court Judge Gary R. Brown to 292 months’ imprisonment.  Amaya-Sanchez pleaded guilty in April 2018 to firearms-related murder charges in connection with his participation in the July 14, 2014 murder of Jose Lainez-Murcia, who was shot and killed while sitting in a car outside his home in Brentwood. 

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.

“As Amaya-Sanchez admitted, the murder he committed was premeditated and brutal.  Now he will have a long time to think about his cruel actions as he serves his sentence behind bars,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue working tirelessly to eliminate MS-13 and the threat this transnational criminal enterprise presents to our community.”

“After ten years, justice has been served.  In 2014, Edwin Amaya-Sanchez, a MS-13 gang member, meticulously planned the calculated murder of Jose Lainez-Murcia based upon unverified assumptions of his involvement in the deaths of former MS-13 affiliates.  Today’s sentencing affirms the FBI’s relentless commitment to eradicating the presence of violent gangs in our neighborhoods,” stated FBI Acting Assistant Director in Charge Curtis.

“Edwin Amaya-Sanchez's calculated actions to seek out the victim at his home are proof that he would stop at nothing to carry out his crimes,” Suffolk County Police Acting Commissioner Robert Waring said. “This sentencing sends a message that the Suffolk County Police Department and its law enforcement partners will continue to work tirelessly to combat violent criminal enterprises and bring justice to the victims and their families.”

As set forth in the government’s sentencing memorandum, prior court filings and statements during the sentencing, Amaya-Sanchez and other MS-13 members orchestrated the murder of Lainez-Murcia because they suspected that Lainez-Murcia was an assassin who had killed MS-13 members in El Salvador.  Amaya-Sanchez knew where Lainez-Murcia lived, what car he drove, and what time he left for work in the morning, because they previously worked together.  In the early morning hours of July 14, 2014, Amaya-Sanchez drove two other MS-13 members, each of whom was armed with a 9mm handgun, to Lainez-Murcia’s neighborhood and dropped them off.  When Lainez-Murcia left the house and entered his car, the MS-13 members approached and fired multiple times with the 9mm handguns, killing him.  The two MS-13 members ran down the block where Amaya-Sanchez picked them up and drove away.

Amaya-Sanchez, an undocumented immigrant from El Salvador, who previously was deported from the United States and illegally returned, was initially arrested on September 21, 2015, in connection with federal immigration charges.  During today’s hearing, Judge Brown also sentenced the defendant to time served following his guilty plea to the immigration charge in April 2016.  Upon completion of the 292-month sentence, the defendant faces deportation from the United States. 

Today’s sentencing is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.

The Defendant:

Edwin Amaya-Sanchez (also known as “Strong”)
Age:  36
Brentwood, New York

E.D.N.Y. Docket No. 16-CR-403 (JFB)

Four separate indictments were unsealed today at the federal courthouse in Brooklyn charging five defendants with crimes related to the fraudulent theft and deposit of checks issued by the United States Department of the Treasury.  As alleged in the indictments, two of the defendants, both former United States Postal Service (USPS) employees, allegedly sold the checks which were stolen from a USPS mail facility located at John F. Kennedy International Airport (JFK Mail Facility) where one of the defendants worked.  The other three defendants fraudulently endorsed and deposited Treasury checks that were not addressed to them.  Four of the defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl.  One of the defendants remains at large.

Breon Peace, United States Attorney for the Eastern District of New York;  Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), Matthew Modafferi, Special Agent in Charge, United States Postal Service Office of Inspector General, Northeast Area Field Office (USPS OIG); Edward A. Caban, Commissioner, New York City Police Department, (NYPD); Michael Carpenter, Special Agent in Charge, United States Treasury Inspector General for Tax Administration, Northeast Field Division (TIGTA); and Patrick J. Freaney, Special Agent in Charge, United States Secret Service (Secret Service), announced the arrests and charges.

“The former postal workers abused their positions of trust to allegedly pull one of the biggest thefts at John F. Kennedy International Airport,” stated United States Attorney Peace.  “The charges allege these five defendants stole, sold and fraudulently deposited millions of dollars in U.S. Treasury checks, which included pandemic relief payments, for their own financial benefit.  Criminals who cash in on checks stolen from the mail can expect to fill out change of address forms for the federal prison they will be calling home.”

“Postal Inspectors relentlessly pursue criminals who exploit the US Mail for unlawful purposes.  The indictments of these co-conspirators who allegedly stole Treasury Checks and defrauded the American taxpayer serve as a resounding message to anyone who wants to steal US Mail. We will steadfastly work with our partners in law enforcement and the US Attorney’s Office, and we will hold criminals accountable for their actions,” stated USPIS Inspector in Charge Brubaker.

“The Special Agents of the U.S. Postal Service Office of Inspector General will vigorously investigate Postal Service employees and their co-conspirators who break the public’s trust. Postal Service employees who trade their integrity for greed and those who conspire with them should know that the Agents of the U.S. Postal Service Office of Inspector General will tirelessly work to bring them to justice. The USPS OIG is thankful for the great relationships we have developed with our law enforcement partners and with the U.S. Attorney’s Office to combat this criminal scheme affecting the American public,” stated USPS-OIG Special Agent in Charge Modafferi.

“NYPD investigators are proud to have helped thwart this multimillion-dollar scheme that allegedly bilked innocent victims of their deserved checks,” stated NYPD Commissioner Caban.  “We and our law enforcement partners are committed to maintaining the integrity of a postal system relied upon by millions of New Yorkers. And we vow to hold accountable anyone involved in the types of crimes outlined in these indictments, especially public employees who might pursue illicit gain by leveraging their positions of trust.”

“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit United States Treasury refund checks meant for hard working taxpayers for their own private gain,” stated TIGTA Special Agent in Charge Carpenter.  “Our mission at the TIGTA is to protect the integrity of our Nation’s system of tax administration.  We are committed to working with our law enforcement partners to ensure that those who endeavor to violate federal laws related are prosecuted to the fullest extent possible.”“This 21-month investigation brought down a brazen criminal enterprise whose very existence violated the public trust,” stated Secret Service Special Agent in Charge Freaney. “I want to commend the United States Postal Inspection Service, along with our many partners for rooting out this flagrant corruption through persistent and exacting investigative work. The Treasury checks stolen in this case disrupted thousands of lives and syphoned funds from the pockets of the very people the accused were expected to serve. The Secret Service is proud to play a role in holding these defendants accountable.”

United States v. Kevaughn Wellington and Ky-Mani Straker

As alleged in the indictment, between at least June 2021 and August 2023, the defendants Kevaughn Wellington and Ky-Mani Straker engaged in a scheme to steal and sell Treasury checks intended for, among other things, individuals entitled to Social Security benefits, COVID-19 stimulus checks and tax refunds.  Wellington stole parcels containing Treasury checks from the JFK Mail Facility where he was employed at the time as a postal worker.  Then, together with Straker and others, Wellington sold the stolen Treasury checks for a cut of the profit. 

As part of the scheme, Wellington and Straker stole over 125 Treasury checks valued at more than $4 million.  Straker falsely endorsed and deposited stolen Treasury checks in a bank account and withdrew the deposited funds for his own financial gain.

The defendants have been charged with conspiring to steal government funds, theft of government funds and possession of stolen mail.  In addition, Wellington has been charged with theft of mail by a postal service employee and Straker has been charged with passing Treasury Checks bearing forged endorsements.

United States v. Angel Ortiz; United States v. Mark Dawson; United States v. Fuquan Bradley

As alleged in the remaining indictments, Angel Ortiz, Mark Dawson and Fuquan Bradley each deposited and falsely endorsed Treasury checks in excess of $1,000 that were not addressed to them.  Each defendant has been charged separately with theft of government funds and passing Treasury Checks bearing forged endorsements.

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

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorney Elias Laris is in charge of the prosecutions. 

The Defendants:

KEVAUGHN WELLINGTON
Age:  31
Jamaica, New York

KY-MANI STRAKER
Age:  24
Orange, New Jersey

E.D.N.Y. Docket No. 24-CR-275 (DG)

ANGEL ORTIZ
Age:  27
Jamaica, New York

E.D.N.Y. Docket No. 24-CR-281 (DG)

MARK DAWSON
Age:  28
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-278 (LDH)

FUQUAN BRADLEY
Age:  34
Bronx, New York

E.D.N.Y. Docket No. 24-CR-279 (RER)

Earlier today, in federal court in Central Islip, Alexi Saenz, also known as “Blasty” and “Plaky,” the leader of the Brentwood/Central Islip chapter of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in eight murders, namely, the January 28, 2016 murder of Michael Johnson; the April 29, 2016 murder of Oscar Acosta; the September 5, 2016 murder of Marcus Bohannon; the September 13, 2016 murders of Kayla Cuevas and Nisa Mickens; the October 10, 2016 murder of Javier Castillo; the October 13, 2016 murder of Dewann Stacks; and the January 30, 2017 murder of Esteban Alvarado-Bonilla; as well as his participation in three attempted murders, arson, narcotics trafficking, and firearms offenses.  

Today’s guilty plea proceeding was held before United States District Judge Gary R. Brown.  When sentenced, Alexi Saenz faces up to 70 years in prison, and a minimum sentence of 40 years in prison, under the terms of his plea agreement.

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“To say that Alexi Saenz’s hands are drenched in blood does not begin to describe the multiple killings and extreme mayhem he personally directed and committed in the span of one year in Suffolk County,” stated United States Attorney Peace.  “While those murders and violent crimes were intended to further the sordid mission of the MS-13, the defendant has failed miserably.  As a result of the exceptional work of this Office’s prosecutors and the members of the Long Island Gang Task Force, the MS-13 has been decimated in the district and we will continue working tirelessly to hold every one of these violent gang members accountable for the crimes they have committed and harm they have caused.  It is my sincere hope that today’s guilty plea brings some measure of solace and closure to the families of his victims.” 

“Alex Saenz’s actions were senseless and barbaric,” stated SCPD Acting Commissioner Waring said.  “The murders of teenagers Kayla Cuevas and Nisa Mickens shook our communities and reverberated around the nation. My hope is that this guilty plea will give the victims’ families some closure while also demonstrating our commitment to dismantling these criminal enterprises. I commend the work of the SCPD detectives and officers, the Long Island Gang Task Force and the Eastern District of New York for their continued success in prosecuting these gang members.” 

According to court filings and statements made during today’s guilty plea proceeding, Alexi Saenz was the local leader of the Brentwood/Central Islip chapter of the Sailors clique of the MS-13 – one of the more powerful, violent, and well-established cliques on the East Coast of the United States.  He committed the following crimes in order to maintain and increase his membership and status within the gang, and to further the mission of the MS-13:

January 28, 2016 Murder of Michael Johnson

On January 28, 2016, Alexi Saenz and other MS-13 members and associates were at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang.  At that point, Johnson was marked as their “food” – a reference to their intention to kill him. 

After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Alexi Saenz contacted several other MS-13 members, informed them of the plan to kill Johnson, and instructed them to bring weapons, including a machete and a baseball bat, to a wooded area in Brentwood.  Alexi Saenz then lured Johnson to that secluded meeting location under the guise of smoking marijuana.  The MS-13 members and associates ambushed Johnson from behind – striking Johnson with the baseball bat, stabbing him with a knife and taking turns hacking him with the machete.  They fled after hearing police sirens in the area.  

Johnson was reported missing by family members.  Less than one week after his murder, on February 2, 2016, members of the SCPD responded to a 911 call about a body found in the woods by a passerby and recovered Johnson’s body.  An autopsy determined Johnson’s cause of death to be sharp and blunt force injuries.   

April 29, 2016 Murder of Oscar Acosta

In early 2016, Alexi Saenz and his fellow Sailors clique members decided to “green light,” or approve, the murder of 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  The New York Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder.

On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious.  They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise, and summoned other MS-13 members, including Alexi Saenz.  The MS-13 members loaded Acosta into the trunk of Alexi Saenz’s car, and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  At the direction of Alexi Saenz, the MS-13 members removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by Alexi Saenz, as his role as the local clique leader.  The MS-13 members then buried Acosta’s body in a shallow grave.  

Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

July 18, 2016 Attempted Murders of John Doe #1 and John Doe #2

On July 18, 2016, during a Sailors clique meeting at Alexi Saenz’s house in Central Islip, the defendant instructed the group to hunt for rival gang members who had been disrespectful to the MS-13, in order to attack and kill them. 

Later that evening, other members of the MS-13, who were driving around Brentwood armed with firearms and a machete, spotted a group of men on Apple Street.  Believing these men to be members of a rival gang, three MS-13 members got out of the car and attacked the group, firing rounds from two different guns, and then using a machete to hack at one of the men who had fallen to the ground.  After the attack, the group drove back to Alexi Saenz’s house, where they hid the weapons.

Two individuals were injured as a result of this attack.  John Doe #1 was struck with a bullet, but survived.  John Doe #2 was attacked with a machete and was permanently disfigured. 

August 10, 2016 Attempted Murders of Suspected Rival Gang Members

In 2016, members of the MS-13 were engaged in a series of disputes with members of the Goon Squad, a rival gang in Brentwood. 

On August 10, 2016, Alexi Saenz and another MS-13 member drove through the neighborhood around Lukens Avenue in Brentwood, and spotted several men who they believed were members of the Goon Squad.  They then rallied other members of the Sailors clique to come kill the rivals. 

The MS-13 members divided into two vehicles and drove towards the house where the suspected Goon Squad members had been spotted.  Alexi Saenz’s car kept watch for the police, while two other MS-13 members, each bearing a gun, approached the group of suspected rivals and fired numerous shots in their direction.  No one was hit, although a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping.

September 5, 2016 Murder of Marcus Bohannon

On September 4, 2016, during a Sailors clique meeting at Alexi Saenz’s house in Central Islip, the defendant and other MS-13 members went out hunting for rival gang members to kill.

The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until Alexi Saenz’s group spotted 27-year-old Marcus Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him, and started shooting.  Alexi Saenz then drove them away.  Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

September 12, 2016 Arson

During the summer of 2016, Sailors clique members of the MS-13 were regularly having altercations with local gang members based in a neighborhood on Freeman Avenue in Brentwood. 

On September 12, 2016, the MS-13 members retaliated by setting fire to a car parked in the driveway of one of the houses in that rival gang neighborhood.  Alexi Saenz directed other gang members to purchase gasoline and carry out the arson, while he drove around watching for police presence.  Other MS-13 gang members drove to that house, where they poured gasoline on a car parked in the driveway and set it on fire.  The car exploded and set another parked car on fire.  

September 13, 2016 Murders of Kayla Cuevas and Nisa Mickens

On September 13, 2016, Sailors clique members brutally murdered 15-year-old Nisa Mickens and 16-year-old Kayla Cuevas, both students at Brentwood High School.

In the months leading up to the murders, Cuevas was involved in a series of disputes with members and associates of the MS-13.  Approximately one week before the murders, these disputes escalated when Cuevas and several friends were involved in an altercation with MS-13 members at Brentwood High School.  After that incident, the MS-13 members vowed to seek revenge against Cuevas. 

On the evening of September 13, 2016, Alexi Saenz and other members of the Sailors clique of the MS-13 were driving in separate cars around Brentwood in search of rival gang members to attack and kill.  One group of MS-13 members spotted Cuevas and Mickens walking down residential Stahley Street.  Recognizing Cuevas, they called Alexi Saenz and were granted permission to kill the girls.  Several MS-13 members then chased down and attacked both Cuevas and Mickens, wielding baseball bats and a machete, striking each of the girls numerous times in their heads and bodies, while Alexi Saenz’s car drove around watching for police.  After the murders, the group retreated to Alexi Saenz’s home in Central Islip, where they changed clothes and hid the weapons.  

Mickens, whose body was discovered later that evening on Stahley Street, not far from Cuevas’s home, sustained significant sharp force trauma to her face and blunt force trauma to her head.  Cuevas, whose body was discovered the following day behind a house adjacent to where Mickens’s body was found, sustained significant blunt force trauma to her head and body and multiple lacerations.

October 10, 2016 Murder of Javier Castillo

In October 2016, the MS-13 targeted 15-year-old Javier Castillo because he was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. 

On October 10, 2016, several members of the Sailors clique convinced Castillo, who lived in Central Islip, to drive with them to Freeport – approximately 30 miles away – to smoke marijuana.  Once there, they met Alexi Saenz and other Sailors clique members.  The group then lured Castillo to an isolated marsh area in Cow Meadow Park, where they attacked him, taking turns hacking him to death with a machete. 

Afterwards, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in late October 2017.  Castillo was determined to have suffered multiple sharp force injuries to his head, neck, torso and extremities. 

October 13, 2016 Murder of Dewann Stacks

On the evening of October 13, 2016, Alexi Saenz and other members of the Sailors clique of MS-13 were driving around Central Islip and Brentwood in search of rival gang members to attack and kill. 

That night, they spotted 34-year-old Dewann Stacks and, believing him to be a rival gang member, Alexi Saenz authorized his murder.  While Alexi Saenz drove around watching for police presence, another group of MS-13 members, armed with two machetes and a baseball bat, drove over to attack Stacks.  Three armed MS-13 members got out of the car, and beat and hacked Stacks to death on American Boulevard, a residential street in Brentwood.  Stacks sustained severe sharp and blunt force trauma to his face and head, leaving his body nearly unrecognizable.

January 30, 2017 Murder of Esteban Alvarado-Bonilla

On the morning of January 30, 2017, Alexi Saenz and other members of the Sailors clique of MS-13 spotted 29-year-old Esteban Alvarado-Bonilla inside El Campesino Deli in Central Islip.  Alvarado-Bonilla was wearing a football jersey bearing the number “18,” which led the MS-13 to conclude that he was a member of a rival gang, and they plotted to kill him.

Several other MS-13 members obtained a mask and another vehicle that would be used to commit the murder.  Alexi Saenz provided the clique’s 9-millimeter handgun for use in the murder.

At approximately 10:30 a.m., a masked MS-13 member entered the deli, approached Alvarado-Bonilla from behind, and shot him multiple times, killing him.  One of the bullets pierced through Alvarado-Bonilla’s head and struck the chest of a female employee of the deli, who was standing directly in front of him.  The deli employee survived the gunshot wound.  

Narcotics Trafficking Conspiracy

For a year and a half, from approximately April 2016 through March 2017, in order to finance the illegal operations of the Sailors clique, Alexi Saenz obtained wholesale quantities of cocaine and marijuana, which he distributed to other Sailors clique members and associates for street-level sales in Brentwood and its surrounding areas.  After the sales, the profits were turned over to Alexi Saenz, for use in, among other things, purchasing firearms for use by clique members, wiring money to MS-13 leaders in El Salvador and buying additional narcotics for further distribution.     

                                                                   *          *          *          *

Today’s guilty plea is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with the assistance of Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

The Defendant:

ALEXI SAENZ (also known as “Blasty” and “Plaky”)
Age: 29
El Divisadero, Morazán, El Salvador; and Central Islip, New York

E.D.N.Y. Docket No. 16-CR-403 (S-8)(GRB)

Earlier today, at the federal courthouse in Brooklyn, Ildemar Chirinos-Torres was arraigned before Magistrate Judge Lara K. Eshkenazi on an indictment charging him with robbery of a jewelry store, discharging a firearm during the robbery and interstate transportation of stolen property.  Chirinos-Torres is detained pending trial.

Breon Peace, United States Attorney for the Eastern District of New York and Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), announced the charges. 

“As alleged, Chirinos-Torres and his co-conspirators stole from, threatened and viciously shot a hardworking merchant during a violent gunpoint robbery of a neighborhood jewelry store,” stated United States Attorney Peace.  “We will continue to vigorously prosecute in federal court armed robbers like the defendant who jeopardize the safety and security of members of our community.”

“This brazen act of armed robbery in which the defendant is alleged to have shot an innocent business owner is reprehensible. ATF NY’s Strategic Pattern Armed Robbery and Technical Apprehension (SPARTA) Group and our NYPD partners are committed to investigating and apprehending those who use violence to steal from New York’s hardworking business owners. We are grateful for the diligent efforts of the NYPD's Queens 115th Squad and the U.S. Attorney's Office Eastern District in the pursuit of justice for our community,” stated ATF Special Agent-in-Charge Miller.

As set forth in the indictment and public filings in support of the charges, on December 12, 2023, Chirinos-Torres and others robbed a jewelry store at gunpoint in Jackson Heights, Queens.  During a struggle with the owner of the store, one of the defendant’s co-conspirators fired a gun multiple times, striking the owner in the leg with one bullet and grazing his face with another.  After stealing approximately $120,000 in jewelry, Chirinos-Torres and his co-conspirators fled on two mopeds.  The stolen jewelry was then transported from New York to Florida. 

Evidence obtained pursuant to search warrants for the defendant’s phones corroborated his involvement in the armed robbery.  For example, a selfie taken approximately two hours before the robbery showed Chirinos-Torres wearing clothing and a messenger bag consistent with the clothing and messenger bag worn by one of the perpetrators during the robbery.  The phones also contained images of jewelry taken mere days after the robbery that the store owners confirmed was consistent with jewelry stolen from the store. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Chirinos-Torres faces up to life imprisonment.

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorney Sean M. Sherman is in charge of the prosecution.    

The Defendant:

ILDEMAR CHIRINOS-TORRES
Age:  29
Freeport, New York

E.D.N.Y. Docket No. 24-215 (WFK)

Earlier today in federal court in Brooklyn, Canadian national Nikolay Goltsev and Brooklyn resident Salimdzhon Nasriddinov pleaded guilty to conspiracy to commit export control violations for their roles in a global procurement scheme on behalf of sanctioned Russian companies, including companies with Russian military contracts.  Some of the electronic components shipped by the defendants were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.  The proceeding was held before United States Magistrate Judge Taryn A. Merkl.  When sentenced, Goltsev and Nasriddinov each face up to 20 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York;  Lisa O. Monaco, United States Deputy Attorney General; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations New York (HSI), Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, announced the plea.

“The defendants flouted U.S. law to help Russia in its war against Ukraine, but they were stopped in their tracks and swiftly brought to justice,” stated United States Attorney Peace.  “This Office will take on and successfully neutralize the complicated procurement networks that are making it possible for Russia to continue its unprovoked war against Ukraine.” 

Mr. Peace thanked the U.S. Customs and Border Protection and the Justice Department’s Office of International Affairs for their valuable assistance to the investigation.  

“The defendants shipped millions of dollars of U.S. electronics critical to the missiles and drones Russia uses to attack Ukraine, and they now face U.S. prison time for their scheme,” stated Deputy Attorney General Monaco. “As Russia continues to wage its unjust war of aggression against Ukraine, the Department remains committed to holding accountable those who fuel Putin’s war machine.”

“The defendants shipped millions of dollars’ worth of electronic components to Russia, including the exact type of parts found in Russian weapons and drones used to attack Ukraine,” stated Assistant Attorney General Olsen.  “We know the devastation and destruction that these weapons cause and the Justice Department is committed to holding accountable those who violate U.S. laws to supply the Russian war machine.”

“With today’s guilty pleas, all three defendants have acknowledged their involvement in their scheme to provide more than $7 million worth of material support to the Kremlin in its inhumane attacks on Ukraine. Nikolay Goltsev, Salimdzhon Nasriddinov, and their co-conspirator coordinated the deployment of over 300 shipments of restricted electronics that were ultimately used on the Russian battlefield. HSI New York remains committed to utilizing its unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws for financial gain,” stated HSI New York Special Agent in Charge Arvelo.  “I am proud to stand alongside the Department of Justice, the FBI, and the Department of Commerce in confronting these issues directly.”

“The defendants in this case orchestrated a sophisticated, illegal scheme to smuggle electronic components to Russia for use in its invasion of Ukraine,” stated FBI Acting Assistant Director Curtis.  “By using front companies, they sought to disguise their treachery but were ultimately exposed and brought to justice. These cases are critical because they undermine the global sanctions regime designed to isolate adversarial nations and protect international security. The FBI will relentlessly pursue and hold accountable those who threaten our national security and violate international laws.”

“Eliminating illegal global procurement networks that prop up the Russian war machine requires a full-court press,” stated Assistant Secretary for Export Enforcement Axelrod.  “That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks – like Nasriddinov and Goltsev – face American justice.”

According to the court filings and statements made during the plea proceeding, the defendants used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase, and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia.  Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs), and T-72B3 battle tanks.  Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine.  During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.

To carry out their criminal scheme, Nasriddinov and Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics, and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn.  Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China, and the United Arab Emirates, where they were rerouted to Russia.

The defendants were aware of the potential military applications of the electronics that they exported to Russia.  For example, in a message exchange on or about and between November 8, 2022 and November 15, 2022, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport in Queens, New York.  Nasriddinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?”  Goltsev responded that, “we need to figure out why they keep holding the package . . . I don’t really understand how they figured [it] out.”  In a subsequent message, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention . . . for now large packages will be dangerous until we understand what they figured out . . . we will need to think of diversifying the load . . . so that not everything is moving from the same deck.” 

In a February 23, 2023 message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring to the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces.  Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].” 

The scheme involved millions of dollars and proved to be lucrative for the defendants.  For example, in a September 15, 2022 text message from Nasriddinov to Goltsev, Nasriddinov boasted, “SH [Brothers] is one of the best companies in the world, it’s time to move forward onto the stock exchange and stock market, capital should be in the billions, we are working.”  Goltsev responded, “pushing components to those who need it I can do, everything else you will have to teach me [three smile emojis].” 

The government seized $20,000 in cash from the New York hotel room in which defendant Goltsev was arrested.  In total, the government has seized approximately $1.68 million in connection with this export scheme.

A third co-defendant, Kristina Puzyreva, pleaded guilty in February 2024 to conspiracy to launder the proceeds of the export scheme.  She is awaiting sentencing.

Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Artie McConnell and Ellen H. Sise are in charge of the prosecution, along with Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section.  Assistant United States Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants:

NIKOLAY GOLTSEV
Age:  38
Montreal, Canada

SALIMDZHON NASRIDDINOV
Age:  53
Brooklyn, New York

Defendant Who Previously Pleaded Guilty

KRISTINA PUZYREVA
Age:  32
Montreal, Canada

E.D.N.Y. Docket No. 23-CR-452 (LDH)

Earlier today, in federal court in Central Islip, New York, Howard Davis, also known as “Mousey” and “Mr. Fedup,” a leader of the violent Bloods street gang, was sentenced by United States District Judge Joan M. Azrack to life in prison plus 132 years for attempted murder, assault, robbery, distribution of controlled substances, obstruction of justice and brandishing and discharging firearms during the commission of these offenses.  Davis was convicted of all 48 counts in the indictment after a six-week trial in June 2021.

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.

“Davis and his violent gang tormented our Long Island neighborhoods for years,” stated United States Attorney Peace.  “Today’s sentence ends his reign of terror and demonstrates my Office’s commitment to eradicate gang violence that has plagued our communities for too long.”

“Howard Davis’s tyranny over Long Island has come to an end. His myriad of crimes repeatedly violated the law as Davis used his status as the gang’s leader to breed further criminality and gun violence. Today’s sentence demonstrates the FBI’s determination to take armed criminals who threaten the safety of our communities off the streets,” stated FBI Acting Assistant Director in Charge Curtis.

“Howard Davis was a prolific gang leader responsible for heinous crimes that terrorized Long Island communities and he actively recruited other members of the Bloods to perpetuate the same brutality. Today’s sentencing has effectively stripped him of the violent power he once wielded with impunity,” stated HSI New York Special Agent-in-Charge Arvelo. “As a result of the outstanding coordination between HSI New York and our law enforcement partners, this merciless gangster can no longer wreak havoc on our communities.”

“Howard Davis committed countless crimes while both free and incarcerated which proves his callousness and depraved indifference to others,” SCPD Acting Commissioner Waring stated.  “It is my hope this sentence sends a message that the Suffolk County Police Department and its law enforcement partners will stand against these criminal organizations.”

As proven at trial and in court filings, Davis was the leader of Long Island-based G-Shine set of the Bloods, a racketeering enterprise that engaged in multiple crimes of violence and narcotics trafficking.  While leading this criminal organization, Davis directed a campaign of violence against his rivals, including issuing a standing order to kill certain individuals whenever and wherever they were found.  Between June 2016 to November 8, 2017, Davis ordered two shootings that left two people wounded; he ordered two armed home invasions; he actively participated in three shootings, including one where three victims were struck by gunshots leaving one of those victims in a coma for an extended period of time; he ordered an armed robbery of two individuals; he physically assaulted a person at a bar, causing the victim to suffer a broken kneecap and broken nose; he sold fentanyl, heroin and crack; and he possessed countless firearms.  Davis also convinced the mother of his child to testify falsely before a federal grand jury, resulting in the 2016 dismissal of a firearms charge.

While incarcerated, Davis continued to commit crimes.  He incurred nine disciplinary violations, including assaults and slashing a victim in the face.  In addition to those violations, on Christmas in 2018, Davis used the mother of one of his children and his infant child to smuggle narcotics into the Metropolitan Correctional Center. 

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Christopher Caffarone and Mark Misorek are in charge of the prosecution, with assistance from Paralegal Specialist Samantha Schroder. 

The Defendant:

HOWARD DAVIS (also known as “Mousey” and “Mr. Fedup”)
Age:  36
Bellport, New York

E.D.N.Y. Docket No. 17-CR-615 (JMA)

This afternoon, at the federal courthouse in Brooklyn, Yue Zhou is scheduled to be arraigned on an indictment charging her with murder-for-hire.  Zhou was arrested on June 5, 2024 in the Eastern District of Virginia and removed to the Eastern District of New York on Wednesday, July 3, 2024.  Today’s proceeding will be held before United States Magistrate Judge Robert M. Levy. 

 Breon Peace, United States Attorney for the Eastern District of New York and Ivan J. Arvelo, Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations, New York (HSI), announced the charges.

“As alleged, the defendant took affirmative steps to hire a hit man to carry out the ruthless killing of the wife of her romantic partner,” stated United States Attorney Peace.  “Her depraved plan was only thwarted because the web site she used to set up the murder-for-hire was a scam.  Although the scheme involved newer technologies like the Internet and Bitcoin, the end result would have been age-old cold-blooded murder.”

Mr. Peace thanked the U.S. Attorney’s Office for the Eastern District of Virginia for their assistance.

“Yue Zhou is accused of offering cryptocurrency, cash, and even sexual favors during her discussions related to having her then-partner’s spouse and adult daughter killed. Little did she know, the website she allegedly thought she was using to solicit a hitman was a farce, and the crimes of which she is accused soon caught up to her,” stated HSI New York Special Agent in Charge Arvelo.  “I commend HSI New York’s El Dorado Task Force Cyber Division, Customs and Border Protection, the New York Police Department, and the Eastern District of New York for their unwavering commitment to utilizing their state-of-the-art methods to secure justice on behalf of New Yorkers.”

As alleged in the indictment and other court documents, between March 25, 2019 and April 4, 2019, Zhou sought to hire a hitman through a murder-for-hire website on the dark web (Website) to murder Victim-1, the spouse of the defendant’s then-romantic partner.  Using an alias on the website, Zhou placed an order to have Victim-1 murdered.  To pay for the murder, Zhou contracted with a Bitcoin exchange service in Ukraine to make a $5,000 payment in Bitcoin on her behalf to the Website.  Zhou provided approximately $5,000 in cash to a middleman in Brooklyn and then communicated with the Website administrator to confirm payment.  After sending payment, Zhou provided a detailed description of Victim-1, including her home, her work schedule, and the best times to target Victim-1, so that Victim-1’s husband would have an alibi for the murder.  Zhou later tried to use to the Website to secure the murder of Victim-2, her romantic partner’s adult daughter.  In February 2021, Zhou also sent a text message to a neighbor of Victim-2 seeking to hire that neighbor to kill Victim-2.  Zhou offered the neighbor $10,000 and sexual favors in exchange for killing Victim-2 and disposing of the body in a lake.  Zhou was not aware at the time of her scheme that the Website was a scam operated by a third party and there was no actual hitman for hire. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Amanda Shami and Andy Palacio are in charge of the prosecution. 

The Defendant:

YUE ZHOU
Age:  42
Flushing, New York

E.D.N.Y. Docket No. 24-CR-123 (MKB)

Breon Peace, United States Attorney for the Eastern District of New York, announced today the appointment of Alixandra E. Smith as the Office’s Chief of the Criminal Division as well as John J. Durham as Chief of the Long Island Division and Chief of the Criminal Section of the Long Island Division. Additionally, in September 2023, Richard K. Hayes was named the Office’s Chief of the Civil Division.

“I make these announcements with tremendous pride and excitement. Alix, John and Rich are brilliant legal minds with vast expertise in serving the Office, through both impressive casework and leadership positions.  I have the utmost confidence they will continue to do what they do best – inspire and lead their teams in the pursuit of equal justice,” stated U.S. Attorney Peace.

Alixandra E. Smith

Ms. Smith joined the Office in 2012 and has served in the General Crimes, Organized Crime and Gangs, and Business and Securities Fraud (BSF) Sections, and as a Deputy Chief of BSF, Chief of BSF and a Criminal Division Deputy Chief.  Among other roles, Ms. Smith is Vice Chair of the Criminal Division Hiring Committee, Chair of the Office’s e-Litigation Committee and co-teaches the EDNY Prosecution Externship at New York University Law School.  Ms. Smith is a graduate of Harvard College and Harvard Law School. Prior to joining the Office, she worked as an associate at Cravath, Swaine & Moore LLP and at Jenner & Block LLP, and clerked for the Honorable Faith Hochberg, United States District Court for the District of New Jersey, as well as the Honorable Julio Fuentes, United States Court of Appeals for the Third Circuit.

During her time in the Office, Alix has investigated and prosecuted significant white-collar cases.  She co-led the investigation and prosecution of United States v. Shkreli and Greebel, in which the defendants were charged with orchestrating four interrelated schemes to defraud investors in two hedge funds of more than $7 million, to steal more than $10 million from a public company and to manipulate the price and trading volume of the public company’s stock.  Both defendants were convicted following back-to-back six-week and 11-week trials in 2017, and Alix successfully argued both appeals.  In several cases related to United States v. Odebrecht and United States v. Braskem, Alix led the Office’s team which, along with the Department of Justice’s Fraud Section (Fraud Section), prosecuted two Brazilian-based petrochemical companies that paid almost a billion dollars in bribes to government officials in at least 12 countries in order to win business.  Both companies pleaded guilty to conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a combined penalty of at least $3.2 billion to resolve charges in the United States, Brazil and Switzerland.  A number of individuals were also convicted for their roles in the bribery scheme, including Braskem’s Chief Executive Officer.  In United States v. AmerisourceBergen, Alix led the criminal prosecution of the second-largest drug distributor in the United States, which ultimately paid a combined total of $885 million to resolve civil and criminal liability stemming from its distribution, over a period of ten years, of millions of syringes of oncology drugs to immunocompromised cancer patients nationwide that were prepared under insanitary conditions and contaminated.  The criminal case was resolved with a $260 million penalty, and a subsidiary of the company pleaded guilty to a criminal violation of the Federal Food, Drug and Cosmetics Act.  And in United States v. Goldman Sachs Group, Inc. and related cases, which were prosecuted in conjunction with the Fraud Section and the Department of Justice’s Money Laundering and Asset Recovery Section, Alix led the Office’s team in the prosecution of investment bank Goldman Sachs (Goldman), its subsidiary and individuals, who were charged for their roles in a scheme to pay $1.6 billion in bribes to government officials and launder billions of dollars in criminal proceeds.  The case was resolved when Goldman’s subsidiary pled guilty to a FCPA violation, Goldman entered a DPA and paid $2.9 billion in criminal penalties as part of a global resolution with eight different foreign and domestic authorities, and a Goldman banker was convicted of FCPA and money laundering charges after a nine-week trial. 

In addition, Ms. Smith has investigated and prosecuted important violent crimes cases, including United States v. Rivera et al, in which the leader and co-founder of the TF Mafia gang were each convicted of, among other crimes, racketeering, murder, drug trafficking, sex trafficking, sex trafficking of children and firearms offenses following an 11-week trial; and United States v. Lopez. et al., in which four MS-13 members were convicted of murdering a fellow MS-13 gang member whom they suspected of being a cooperating witness.

Among other awards, Ms. Smith is the recipient of the Attorney General’s John Marshall Award for the Trial of Litigation, the Harry L. Stimson Medal, the Assistant Attorney General’s (AAG) Award for Exceptional Service, the AAG Award for Distinguished Service and the EOUSA Director’s Award.

John J. Durham

Mr. Durham joined the Office in October 2005 and has served in the General Crimes Section and Long Island Criminal Section.  Mr. Durham has been appointed to several leadership positions in the Office and the Department of Justice, including Deputy Chief for the Long Island Criminal Section, the Office’s Capital Case Coordinator, the Attorney General’s Review Committee on Capital Cases and Chair of the MS-13 Subcommittee of the Attorney General’s Transnational Organized Crime Task Force.  In August 2019, Mr. Durham was appointed to serve as the Director of Joint Task Force Vulcan (JTFV), a Department of Justice initiative to combat La Mara Salvatrucha (MS-13), where he spearheaded indictments against MS-13’s highest-ranking international leaders.  He graduated from the College of the Holy Cross in 1998 and from the University of Connecticut School of Law in 2001. Mr. Durham clerked for United States District Judge Stephen C. Robinson in the Southern District of New York.

During his time in the Office, Mr. Durham has investigated, prosecuted and supervised a broad range of federal offenses, including racketeering, murders, terrorism, civil rights, obstruction of justice, armed robberies, narcotics trafficking, money laundering, firearms and public corruption.  Most significantly, he has directed the Office’s efforts to dismantle the operations of MS-13 in the EDNY, as well as nationally and internationally.  In a series of EDNY indictments, he has led teams of AUSAs and investigators that have arrested and convicted hundreds of MS-13 leaders, members and associates, including charges related to more than 65 murders committed in this district between January 2008 and the present.  United States v. Amaya-Sanchez, et al.; United States v. Acosta, et al.; United States v. Cerna, et al.; United States v. Alvarenga et al.; and United States v. Prado et al.  As the Director of JTFV, Mr. Durham led a team of AUSAs and law enforcement officers from across the country and secured significant indictments against MS-13’s command and control structure across the United States, Central America and Mexico, including the first use of national security charges against MS-13 leaders.  United States v. Henriquez, et al. (EDNY); United States v. Arevalo-Chavez, et al. (EDNY); United States v. Carias, et al. (SDNY); and United States v. Melgar-Diaz, et al. (EDVA).  In addition to his work combatting MS-13, Mr. Durham has prosecuted defendants who attempted to travel to Yemen for the purpose of joining al-Qaeda in the Arabian Peninsula  (AQAP) and fighting jihad against United States allies (United States v. Kaliebe/Zea), and members of numerous other violent criminal organizations, including the Bloods, 18th Street gang, Crips, Salvadorans With Pride and violent narcotics trafficking and robbery crews based in the district.  Finally, in addition to his violent crime work, Mr. Durham has prosecuted a number of significant and sensitive public corruption and civil rights matters, including the former Chief of Department for the Suffolk County Police Department (United States v. Burke, et al.), the former Suffolk County District Attorney and former Chief of Investigations and Chief of the Government Corruption Bureau for the Suffolk County District Attorney’s Office (United States v. Spota and McPartland), a then-sitting Nassau County Legislator (United States v. Corbin), a New York City Police Department sergeant (United States v. Green) and a Food and Drug Administration official (United States v. Oliver, et al.).

Among other awards, Mr. Durham is the recipient of the Charles E. Rose Award; Henry L. Stimson Medal; EOUSA Director’s Award for Superior Performance; National Association of Former United States Attorneys, Exceptional Service Award; and several Federal Law Enforcement Foundation Awards.

Richard K. Hayes

Mr. Hayes joined in the Office’s Civil Division in 1991, and since then has litigated nearly every type of case.  He had been a Deputy Chief of the Civil Division since 2012 with overall supervisory responsibility for the Division’s Affirmative Civil Enforcement, Civil Rights, Drug and Listed Chemical, Environmental and Health Care Fraud practices.  Prior to serving as Deputy Chief, Mr. Hayes was the Office’s Chief of Affirmative Civil Enforcement.  Mr. Hayes graduated from Fordham University School of Law, where he was on the Moot Court Editorial Board and a member of the Fordham Urban Law Journal.  He received his B.A. in History and Political Science summa cum laude from Fordham University and was inducted into Phi Beta Kappa.

Mr. Hayes has handled some of the largest matters with the Office and the Department of Justice stemming from the Financial Crisis.  These included the 2012 $25 billion National Mortgage Settlement, which resolved federal and state claims against the nation’s five largest mortgage servicers.  In addition to recovering damages incurred by the Federal Housing Administration, the settlement provided for billions of dollars in homeowner relief nationwide.  Mr. Hayes also originated and led the Office’s Residential Mortgage-Backed Securities (RMBS) practice, a component of the Department of Justice’s RMBS Working Group.  This entailed building teams that at one point comprised more than sixty AUSAs, other attorneys and professional staff which investigated banks that underwrote hundreds of billions of dollars in failed RMBS.  Ultimately, six banks and several individuals paid more than $11 billion in penalties and provided $6.6 billion in consumer relief to resolve claims under the Financial Institutions Reform Recovery and Enforcement Act.  All told, the Office has received over $20 billion in credit for financial crisis era cases that Mr. Hayes handled and supervised.

In addition to his financial fraud work, Mr. Hayes has obtained monetary and injunctive relief in a wide range of matters.  For example, in United States v. Staten Island University Hospital, he led an investigation of multiple Medicare and Medicaid billing schemes and negotiated an $89 million global settlement of civil fraud claims.  In United States v. Lawrence Aviation Industries, Mr. Hayes and his team members obtained a $48 million judgment after trial in a Superfund cost recovery and penalty case.  And, in United States v. Local 14 of the International Union of Operating Engineers, he filed and resolved civil RICO claims, securing appointment of a court-ordered monitorship over the mob-infiltrated union.

Mr. Hayes is a two-time recipient of the Attorney General’s Award for Distinguished Service, a two-time recipient of the Director’s Award for Superior Performance, and a recipient of the Henry L. Stimson Medal for outstanding performance as an Assistant United States Attorney.

Today, United States Attorney Breon Peace announced criminal charges against nine defendants in connection with alleged schemes to defraud Medicare and Medicaid. 

Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation; Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Christi A. Grimm, the Department of Health and Human Services Inspector General (HHS-OIG); Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York, (IRS-CI); and Raymond A. Tierney, Suffolk County District Attorney, announced the arrests and charges.

“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” stated Attorney General Garland.  “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”

“These defendants have been charged with treating the Medicare and Medicaid programs like cash registers they could use to ring up withdrawals from the public treasury straight into their pockets,” stated United States Attorney Peace.  “The enforcement actions announced today demonstrate my Office’s resolve to prosecute those who exploit our health care benefits programs for personal gain.”

Mr. Peace expressed his appreciation to the U.S. Drug Enforcement Administration, the New York City Police Department and the New York City Human Resources Administration, for their work on the cases. 

“Health care fraud affects every American,” stated Principal Deputy Assistant Attorney General Argentieri. “It siphons off hard-earned tax dollars meant to provide care for the vulnerable and disabled. In doing so, it also raises the cost of care for all patients. Even worse, as the prosecutions we announce today underscore, health care fraud can harm patients and fuel addiction. The Criminal Division is committed to rooting out health care fraud, wherever it may be found, no matter who commits it.  And we are using more tools than ever before to uncover misconduct and hold wrongdoers to account, whether they are executives in corner offices or doctors who violate their oaths.” 

“These nine defendants allegedly submitted bills for services not provided collecting millions in reimbursements from Medicare and Medicaid programs. This is yet another unfortunate example of individuals abusing government services intended to help patients in need. These actions are representative of the FBI’s nationwide efforts to bring justice to criminals who attempt to manipulate healthcare programs for personal benefits,” stated FBI Assistant Director-in-Charge Smith.

“As alleged, the defendants abused their positions and power to exploit vulnerabilities in the Medicare and Medicaid systems to the tune of $7.1 million in illicit funds. Through the American Medical Utilization Management Corporation (AMC), these purported medical providers are accused of flouting vital narcotics regulations and healthcare practices despite the incalculable risks to the public,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “HSI New York, through the New York OCEDTF Strike Force and in coordination with our law enforcement partners, is committed to disrupting the illegal distribution of prescription drugs by utilizing its broad statutory authorities to bring to an end the plague of overprescribed pharmaceuticals.”

“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” stated HHS-OIG Inspector General Grimm.  “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible.  We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”

“Health care providers are rightly expected to treat their patients with honesty and integrity, often in the most vulnerable times,” stated IRS-CI Special Agent-in-Charge Fattorusso.  “The defendants in this case are accused of or have been convicted of betraying this sacred trust strictly for their own greed and financial gain. Today’s actions should serve to restore integrity in the system and put those who engage in these fraudulent acts on notice that law enforcement will not turn a blind eye.”  

“My Office remains committed to stand and work with our federal partners in combatting crime and keeping our citizens safe," stated Suffolk County District Attorney Tierney.  “Those who seek to illegally profit off the backs of hardworking U.S. taxpayers will be found out and brought to justice. The defrauding of our citizens will not be tolerated.”

U.S. v. Feng Jiang

On June 26, 2024, Feng Jiang was charged by indictment with conspiracy to commit health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering in connection with an alleged $24 million scheme involving multiple New York pharmacies.  As alleged in the indictment, Jiang and his co-conspirators paid kickbacks in the form of supermarket gift certificates and cash to Medicare beneficiaries and Medicaid recipients who filled medically unnecessary prescriptions at Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc.  The indictment further alleges that Jiang and others wrote checks to various “trading companies” to obtain cash that was distributed as profits amongst the pharmacies’ owners and used to pay illegal kickbacks and bribes.  

The case is being prosecuted by Trial Attorney Patrick J. Campbell of the Criminal Division, Fraud Section, Health Care Fraud Unit, Northeast Strike Force, which is based out of the Office’s Business and Securities Fraud Section.

U.S. v. Joseph Tony Brown-Arkah and Evens Jean

On June 26, 2024, Joseph Tony Brown-Arkah and Evens Jean were charged by indictment in connection with an alleged $7.1 million health care fraud scheme and narcotics distribution.  Brown-Arkah and Jean were charged with conspiracy to commit health care fraud, health care fraud, conspiracy to distribute narcotics and narcotics distribution, and Jean was also charged with false statements.  As alleged in the indictment, Brown-Arkah, the owner of American Medical Utilization Management Corporation (AMC), a medical clinic in Brooklyn, along with Jean, a nurse practitioner, and others, engaged in an alleged scheme to bill Medicare and Medicaid fraudulently for services not provided or not provided as billed, and to prescribe narcotics pursuant to prescriptions that were not issued for a legitimate medical purpose by a provider acting in the usual course of professional practice.  In particular, AMC was a purported provider of medicated addiction treatment and had a significant number of patients being treated with buprenorphine (Suboxone), a Schedule III narcotic.  Many of these patients received prescriptions written by Jean, who lived in Florida and did not see or speak with the patients; instead, Jean issued the narcotics prescriptions based on information provided by individuals not entitled to prescribe buprenorphine, some of whom were not licensed medical professionals.  As alleged in the indictment, Jean also made multiple false statements to law enforcement regarding his prescriptions of buprenorphine.  

The case is being prosecuted by Trial Attorneys Miriam Glaser Dauermann of the Department’s National Rapid Response Strike Force and Margaret Mortimer of the Criminal Division, Fraud Section, Health Care Fraud Unit, Northeast Strike Force, which is based out of the Office’s Business and Securities Fraud Section.

For patients who are prescribed a controlled substance medication and have lost access to their healthcare provider, contact either of these virtual treatment providers for evaluation, prescription for medication to help manage opioid withdrawal (buprenorphine, as applicable), and referral to outpatient care:

Virtual Express Care (NYC Health and Hospitals) (631) 397-2273; 24 hour/day, 7 days/week  www.expresscare.nyc or MATTERS Medication for Addiction Treatment (765) M-A-T-T-E-R-S [(765) 628-8377] www.mattersnetwork.org

Referrals to harm reduction services and drug treatment programs:

Call the OASAS (Office of Addiction Services and Supports) 24/7 HOPEline 1-877-8-H-O-P-E-N-Y or text HOPENY (467369)

U.S. v. Albert Muratov

Albert Muratov pleaded guilty on June 11, 2024 to health care fraud in connection with a scheme to defraud Medicare by billing for undispensed cancer medication.  Muratov, who operated Ave M Pharmacy in Brooklyn, New York, along with Artom Rafaelov and others, handled the pharmacy’s finances and payments and, together with others, caused the submission of approximately 253 claims to Medicare for Targretin Gel 1%.  Targretin is a prescription drug used to treat skin conditions caused by Cutaneous T-Cell Lymphoma, a rare skin cancer.  The average wholesale price for a 60-gram tube of Targretin Gel 1% was over $34,000.  From 2017 to 2021, the defendant and his co-conspirators, including Rafaelov, billed Medicare for Targretin that was medically unnecessary, not ordered by a professional, or that they did not dispense; as a result, Medicare paid Ave M Pharmacy more than $4 million.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant U.S. Attorney John Vagelatos is in charge of the prosecution.

U.S. v. Artom Rafaelov

Artom Rafaelov pleaded guilty on September 28, 2022 to a criminal information charging him with health care fraud.  Rafaelov owned and operated Ave M pharmacy in Brooklyn.  Between approximately February 2017 and September 2021, Rafaelov and co-conspirator Albert Muratov defrauded Medicare by causing Ave M to submit fraudulent claims for Targretin Gel 1% (described above) that were neither purchased nor stocked by Ave M; and not medically necessary or not prescribed by the doctors that Ave M claimed had prescribed the medication.  In March 2024, Rafaelov was sentenced by United States District Judge William F. Kuntz II to 37 months’ imprisonment and ordered to pay $4.2 million in restitution to Medicare.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant U.S. Attorney John Vagelatos is in charge of the prosecution.

U.S. v. Ahmed et al.

On June 11, 2024, Noman Ahmed, Adnan Arshad, Rehman Diwan, Jessica Hendrickson, Jose Marte, Mohammed Saleem, Faisal Shamsi and Waqas Shamsi were arrested on a eight-count indictment charging them with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, paying health care kickbacks, and money laundering. The defendants owned, operated and were employees of several transportation companies.  From approximately December 2020 to the present, the defendants paid illegal health care kickbacks to Medicaid beneficiaries so that those beneficiaries would order medical transportation services specifically from the defendants, which generally included transportation to addiction treatment centers for the beneficiaries’ purportedly necessary methadone treatment.

The defendants generally did not provide the medical transportation services ordered by the Medicaid beneficiaries.  In total, the defendants and their transportation companies – 668 MTK Taxi LLC, All-Star Taxi LLC, Apollo Transportation, Sunrise Taxi LLC, and Transportation Solution NY Corp. d/b/a A1 Transport – fraudulently billed Medicaid millions of dollars for these services throughout the course of the scheme.  At least two claims were submitted to Medicaid for individuals who were deceased, and some claims were submitted for individuals who were hospitalized or incarcerated. 

The government’s case is being prosecuted by Assistant U.S. Attorney Adam Toporovsky of the Criminal Section of the Office’s Long Island Division, and Special Assistant U.S. Attorney Jennifer Milito.

*          *          *

The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty.

The enforcement actions announced today by U.S. Attorney Peace are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings to government programs.  The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Department of Justice, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold and other assets.

The Defendants:

FENG JIANG (also known as “Jeff”)
Age:  42
Oakland Gardens, Queens

E.D.N.Y. Docket No. 24-CR-264

_______________________________

JOSEPH TONY BROWN-ARKAH
Age:  76
Brooklyn, New York

EVENS JEAN
Age:  58
Cape Coral, Florida

E.D.N.Y. Docket No. 24-CR-263

______________________________

ALBERT MURATOV
Age:  46
Forest Hills, Queens

E.D.N.Y. Docket No. 24-CR-164 (WFK)

______________________________

ARTOM RAFAELOV

Age:  41

Fresh Meadows, Queens

E.D.N.Y. Docket No. 22-CR-368 (WFK)

______________________________

NOMAN AHMED
Age:  37
Port Jefferson Station, New York

ADNAN ARSHAD (also known as “Eddie”)
Age:  45
Mount Sinai, New York

REHMAN DIWAN
Age:  24
Hicksville, New York

JESSICA HENDRICKSON
Age:  36
Patchogue, New York

JOSE MARTE
Age:  33
Bronx, New York

MOHAMMED SALEEM
Age:  38
Dix Hills, New York

FAISAL SHAMSI (also known as “Jimmy”)
Age:  49
Massapequa, New York

WAQAS SHAMSI (also known as “Ricky”)
Age:  44
Massapequa, New York

E.D.N.Y. Docket No. 24-CR-231 (JMA)

Five criminal complaints were unsealed today in federal court in Brooklyn charging current New York City Administration for Children’s Services (ACS) employees Da’Vante Bolton, Roger Francis, Christopher Craig and Nigel King, and former ACS employee Octavia Napier, with conspiracy to commit Travel Act bribery.  All five defendants were Youth Development Specialists at the Crossroads Juvenile Center in Brownsville, Brooklyn (Crossroads).  All five were arrested this morning, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Joseph A. Marutollo.

Breon Peace, United States Attorney for the Eastern District of New York, Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) and James Smith, Assistant Director-in-Charge, New York Field Office (FBI), announced the charges.

“As alleged, these so-called ‘Youth Development Specialists’ violated their duty to the City and the residents at Crossroads by smuggling in weapons, drugs, and other contraband in exchange for bribes, placing young people and other staff members at an alarming risk of serious harm,” stated United States Attorney Breon Peace.  “Today’s arrests demonstrate that this Office remains committed to rooting out corruption and cleaning up our city’s jails and juvenile detention facilities.”

DOI Commissioner Strauber said, “As Youth Development Specialists at ACS, these defendants were trusted to ensure the safety and security of residents in the City’s youth detention facilities.  They betrayed that trust when, as charged, they accepted cash payments in exchange for smuggling drugs, weapons, and other contraband, into the Crossroads Juvenile Center in Brooklyn, destabilizing the facility and increasing the risk of violence to residents and staff alike.  I thank ACS for reporting information to DOI, which prompted, in part, the work that led to this investigation with our law enforcement partners in the United States Attorney’s Office for the Eastern District of New York and the FBI, and the charges we announce today.”

“These five defendants, each Youth Development Specialists at the Crossroads Juvenile Center, are alleged to have repeatedly smuggled dangerous contraband into the facility in exchange for bribes.  Youth development specialists are entrusted to help troubled youth get back on the right path, instead these individuals allegedly strayed themselves, placing personal gain above the safety and rehabilitation of the juveniles under their watch.  The arrests today highlight the FBI’s continued dedication to eradicating public corruption and holding those responsible accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge James Smith.

Approximately 120 residents, ranging from ages 14 to 20, are detained at Crossroads.  Residents at Crossroads are prohibited from possessing narcotics, cellular telephones, cigarettes, weapons, and alcohol, among other items. ACS employees at Crossroads are trained to confiscate any contraband they find and must notify a supervisor if any contraband is discovered.  Although staff members are supposed to undergo a security screening whenever they enter the facility, a significant amount of contraband has recently been recovered from Crossroads residents.   Between approximately March 2022 and May 2024, at least 75 cell phones and more than 340 scalpels or blades were recovered from the facility, as well as narcotics and tobacco. 

The defendants either are or were Youth Development Specialists at Crossroads, which required them to supervise residents.  Their responsibilities are similar to those of a correction officer at a jail facility.

As alleged in the complaints, the defendants accepted bribes in exchange for smuggling contraband and violating their duties as staff members.

The Defendants and the Alleged Criminal Conduct

Da’Vante Bolton has been employed by ACS since March 2020.  As alleged, Bolton accepted more than $20,000 from Crossroads residents or their associates and smuggled in razor blades and marijuana in exchange for those bribes.

Roger Francis has been employed by ACS since July 2018.  As alleged, Francis received more than $17,000 in bribes from Crossroads residents and their associates for smuggling in contraband, including marijuana and phone accessories. 

Christopher Craig has been employed by ACS since August 2018.  As alleged, Craig received more than $5,000 in bribes to smuggle in contraband, including marijuana and tobacco. 

Nigel King has been employed by ACS since October 2021.  As alleged, King accepted more than $6,800 in bribes for smuggling in marijuana, prescription pills and alcohol. 

Octavia Napier was employed by ACS from June 2022 to May 2023.  As alleged, Napier received more than $2,000 in bribes to both smuggle in contraband and allow a Crossroads resident to use her Cash App account to run his contraband distribution business from within Crossroads. 

* * * * *

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face a maximum sentence of five years’ imprisonment.

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Andrew D. Grubin, and Special Assistant United States Attorney Cassie Perez of the Bronx District Attorney’s Office, are in charge of the prosecution with assistance from Legal Assistant Thomas Englert.

The Defendants:

DA’VANTE BOLTON
Age: 31
Queens, NY

E.D.N.Y. Docket No. 24-MJ-435

ROGER FRANCIS
Age: 58
Brooklyn, NY

E.D.N.Y. Docket No. 24-MJ-432

CHRISTOPHER CRAIG
Age:  37
Brooklyn, NY

E.D.N.Y. Docket No. 24-MJ-433

NIGEL KING
Age:  45
Queens, NY

E.D.N.Y. Docket No. 24-MJ-431

OCTAVIA NAPIER
Age: 26
Brooklyn, NY

E.D.N.Y. Docket No. 24-MJ-434

Today, in federal court in Brooklyn, Peter Khaim was sentenced by United States District Judge Ann M. Donnelly to 97 months in prison for using New York-area pharmacies to submit false and fraudulent claims to Medicare and then laundering the criminal proceeds.  Khaim’s brother and codefendant, Arkadiy Khaimov, was previously sentenced on April 3, 2024 to six years in prison for his role in the money laundering scheme.  Khaim and Khaimov pleaded guilty in November 2022 to conspiracy to commit money laundering.  As part of their sentences, Khaim was ordered to pay more than $18 million in restitution and to forfeit more than $2.7 million; Khaimov was ordered to pay more than $18 million in restitution and to forfeit more than $9.6 million. 

Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation; Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services Office of Inspector General; and Patricia Tarasca, Special Agent-in-Charge, Federal Deposit Insurance Corporation Office of Inspector General, announced the sentences.

According to court documents, Khaim and Khaimov engaged in a complex money laundering conspiracy to launder the proceeds of a fraudulent health care scheme involving over a dozen New York-area pharmacies that they, and their co-conspirators, owned and controlled.  Khaim and Khaimov used the New York pharmacies to submit millions of dollars in fraudulent claims to Medicare, including during the COVID-19 pandemic.  Khaim, Khaimov, and their co-conspirators exploited the COVID-19 emergency for their own financial gain by using COVID-19-related “emergency override” billing codes to submit fraudulent claims for expensive cancer medications Targretin Gel 1% and Panretin Gel 0.1% that were not prescribed by physicians or dispensed to patients, and that were purportedly dispensed during periods when certain pharmacies were closed.

Khaim and Khaimov concealed over $18 million of their criminal proceeds by funneling money through several shell companies, including sham pharmacy wholesale companies designed to look like legitimate wholesalers.  Khaim and Khaimov typically sent the funds from the pharmacy bank accounts they controlled to the sham wholesale companies.  The funds were then typically sent to companies in China for distribution to individuals in Uzbekistan, and the defendants received some of these funds in cash.  At other times, the fraudulent proceeds were sent from the sham wholesale companies to Khaim, Khaimov, their relatives, or their designees, in the form of certified cashier’s checks and cash.  Khaim and Khaimov used the proceeds of the scheme to purchase real estate and other luxury items. 

Trial Attorney Arun Bodapati of the Fraud Section’s Northeast Strike Force prosecuted the case.  Fraud Section Principal Assistant Chief Jacob Foster and Assistant Chief Patrick Mott assisted with the investigation.  Assistant United States Attorney Claire Kedeshian of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.

Defendants:

PETER KHAIM
Age:  44
Forest Hills, Queens

ARKADIY KHAIMOV
Age:  41
Forest Hills, Queens

E.D.N.Y. Docket No.: 20-CR-580 (AMD)

Two pharmacy owners were sentenced for using New York-area pharmacies to submit millions of dollars in false and fraudulent claims to Medicare and then laundering the proceeds, including during the COVID-19 pandemic.

Peter Khaim, 44, of Forest Hills, New York, was sentenced today to eight years and one month in prison, and his brother and co-defendant, Arkadiy Khaimov, 41, also of Forest Hills, was sentenced on April 3 to six years in prison.

According to court documents, Khaim and Khaimov engaged in a complex money laundering conspiracy to launder the proceeds of a fraudulent health care scheme involving 16 New York-area pharmacies that they and their co-conspirators owned and controlled. Khaim, Khaimov, and their co-conspirators exploited the COVID-19 emergency for their own financial gain by using COVID-19-related “emergency override” billing codes to submit fraudulent claims for expensive cancer medications Targretin Gel 1% and Panretin Gel 0.1% that were not prescribed by physicians or dispensed to patients, and that were purportedly dispensed during periods when certain pharmacies were closed.

To conceal over $18 million of their criminal proceeds, Khaim, Khaimov, and their co-conspirators funneled money through several shell companies, including sham pharmacy wholesale companies designed to look like legitimate wholesalers. Khaim and Khaimov typically sent the funds from the pharmacy bank accounts they controlled to the sham wholesale companies. The funds were then typically sent to companies in China for distribution to individuals in Uzbekistan. The defendants then received a corresponding amount of cash from a co-conspirator, minus a commission. At other times, the fraudulent proceeds were sent from the sham wholesale companies to Khaim, Khaimov, their relatives, or their designees, in the form of certified cashier’s checks and cash. Khaim and Khaimov used the proceeds of the scheme to purchase real estate and other luxury items. 

Khaim pleaded guilty on Nov. 3, 2022 to one count of conspiracy to commit money laundering.  Khaimov pleaded guilty on Nov. 16, 2022 to one count of conspiracy to commit money laundering. At sentencing, Khaim was ordered to pay more than $18 million in restitution and to forfeit more than $2.7 million. Khaimov was ordered to pay more than $18 million in restitution and to forfeit more than $9.6 million. 

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director in Charge James Smith of the FBI New York Field Office; Special Agent in Charge Thomas M. Fattorusso of the IRS Criminal Investigation; Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

HHS-OIG, the FBI, IRS Criminal Investigation, and FDIC-OIG investigated the case. 

Trial Attorney Arun Bodapati of the Criminal Division’s Fraud Section’s Northeast Strike Force prosecuted the case, with assistance from Principal Assistant Chief Jacob Foster and Assistant Chief Patrick Mott of the Criminal Division’s Fraud Section.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Earlier today, in federal court in Brooklyn, Semaj Smith, also known as “Bam Bam” and “Real Ryte Sport,” a member of the Brooklyn-based street gang Real Ryte, was sentenced by United States District Judge Hector Gonzalez to 132 months in prison for racketeering conspiracy and brandishing a firearm in furtherance of a crime of violence.  Last month, co-defendants Dajahn McBean, also known as “Jeezy Mula,” who is the leader of Real Ryte, and Real Ryte member Mark Waiters, also known as “Telly,” were sentenced to terms of imprisonment of 150 months and 149 months, respectively.  All three defendants pleaded guilty in September and October 2023 to charges in a superseding indictment stemming from Real Ryte’s gang war with the Breadgang crew of the 5-9 Brims, a subset of the Bloods. 

Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.

“The defendants have dedicated themselves to committing violent crimes on behalf of their gang without any regard for endangering the public,” stated United States Attorney Peace.  “We will not tolerate our communities being turned into scenes out of video games with gang warfare, reckless shootings and car chases.  Today’s sentence shows that individuals, like these defendants, who don’t get that message will be punished with significant time in prison.”

Mr. Peace expressed his appreciation to the New York City Police Department and to the Department of Homeland Security, Homeland Security Investigations New York for their outstanding work and assistance in this investigation.

According to court filings and facts presented during the defendants’ guilty plea proceedings, Real Ryte was a violent street gang that operated in, among other places, Brooklyn, New York.  Members of Real Ryte have committed acts of violence, including acts involving murder and assault, and engaged in bank fraud, wire fraud and other crimes.  Between at least 2015 and 2018, members of Real Ryte committed serious crimes to further the interests of the gang, including earning money for the gang’s members through illicit means, and committing acts of violence to enhance the gang’s position with respect to rival criminal organizations. 

During the charged period, Real Ryte was engaged in a violent conflict with members of a rival crew known as the “Breadgang,” whose members also operated in Brooklyn.  The gang war led to a series of shootings between Real Ryte and Breadgang, including the murder of Sean Peart, a Real Ryte member, a crime for which Marvin Pippins, a Breadgang member, was convicted following a trial in this District.  In response to Peart’s death, the defendants and other members of Real Ryte retaliated against Pippins and other Breadgang members.  On January 3, 2017, the defendants learned that a Breadgang member could be found in lower Manhattan, and, at McBean’s direction, Smith, Waiters and a co-conspirator traveled to the location to shoot and kill him.  However, during a chase with vehicles speeding through the streets of Manhattan in the wrong direction, the defendants mistakenly shot an innocent person they mistook for their intended target, seriously injuring the victim before fleeing.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Joy Lurinsky and Rebecca Schuman are in charge of the prosecution, with assistance from Paralegal Specialists Cleon Thomas and Abiodun Ojo. 

The Defendants:

DAJAHN MCBEAN (also known as “Jeezy Mula”)
Age:  28
Brooklyn, New York

MARK WAITERS (also known as “Telly”)
Age:  26
Brooklyn, New York

SEMAJ SMITH (also known as “Bam Bam” and “Real Ryte Sport”)
Age:  30
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-260 (S-1) (HG)

The Justice Department announced today that it will monitor compliance with federal voting rights laws in Queens, New York, for the June 25 primary election.

The Justice Department enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the department deploys federal observers from the Office of Personnel Management, where authorized by federal court order. 

The Justice Department’s Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.

More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.  The United States Attorney’s Office for the Eastern District of New York will also be available to receive complaints on Tuesday, June 25, 2024 at the following number (718) 254-7000 for Brooklyn, Queens, Staten Island, Nassau and Suffolk counties.

The Justice Department announced today that it will monitor compliance with federal voting rights laws in Queens, New York, for the June 25 primary election.

The Justice Department enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the department deploys federal observers from the Office of Personnel Management, where authorized by federal court order. 

The Justice Department’s Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.

More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.

Earlier today, in federal court in Central Islip, Charles Carter, also known as “Chase,” was sentenced by United States District Judge Gary R. Brown to 20 years in prison for conspiring to distribute fentanyl that contributed to two poisoning deaths.  In November 2023, Carter pleaded guilty to conspiring to distribute more than 40 grams of fentanyl.  As part of his plea, Carter admitted that fentanyl that he sold contributed to the deaths of two victims in 2020 and 2021 respectively.  Carter also admitted that in 2021, he sold more than 43 grams of fentanyl to an undercover Glen Cove Police Department (GCPD) officer (UC-1).  As part of the sentence, the defendant was ordered by the Court to pay restitution in the amount of $29,416.50 to cover the victims’ funeral expenses.

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Patrick J. Ryder, Commissioner of the Nassau County Police Department (NCPD), and William Whitton, Chief of Police, GCPD, announced the guilty plea.

“Carter, who openly acknowledged his drug dealing was all ‘about the money,’ is held responsible today for callously selling fentanyl that contributed to the deaths of two victims on Long Island.  Fentanyl is a lethal drug that is killing so many people across this nation every day,” stated United States Attorney Peace.  “This Office is working nonstop with our federal and local partners to address the fentanyl crisis and prosecute those who push the deadly poison for profit.”

“While this guilty plea can't undo the tragic loss of life, it sends a message that we will do everything we can to make sure those responsible for drug related deaths face the consequences for their actions and the families of those lost receive justice. The men and women of DEA New York Division, along with our law enforcement partners, will continue to target those responsible for poisoning and destroying our communities” stated DEA New York Division Special Agent-in-Charge Tarentino.

“The sentencing of defendant Charles Carter to 20 years in prison for conspiring to distribute fentanyl is a clear example that this behavior will never be tolerated. Two victims lost their lives and their families are suffering due to this poison being accessible.  We need to set an example and continue to investigate and arrest these offenders to keep our communities and residents safe. I would like to thank all of the investigators and their agencies for a job well done,” stated NCPD Commissioner Ryder.

“The Glen Cove Police Department will continue to work with federal, state and local law enforcement to prevent the distribution of illegal substances into our community. Those who decide to profit by selling their poison, will be identified, arrested and prosecuted,” stated GCPD Chief of Police Whitton.

Between August 2020 and February 2021, Carter sold more than 40 grams of fentanyl to two overdose poisoning victims and an undercover GCPD detective.   The investigation revealed that on August 6, 2020, a 23-year-old individual (Victim-1) died of a drug-related overdose at her residence in Glen Cove, Long Island.  Cellular telephone analysis and additional investigation showed that the fentanyl that Victim-1 used was purchased from Carter about two days before Victim-1’s death.  On February 5, 2021, a 40-year-old individual (Victim-2) died of a drug-related poisoning at his residence in Farmingdale, Long Island.  A search of Victim-2’s phone revealed text messages between Carter and Victim-2 which related to Victim-2’s purchase of fentanyl shortly before, and in the months preceding, Victim-2’s death.  For example, on January 21, 2021, Carter wrote text messages to Victim-2, stating “im.(sic) around and I got the good stuff[.] Do u (sic) need to see me..??” 

Additionally, Carter repeatedly sold fentanyl to the UC-1 in doses that could have been lethal if consumed, including approximately 43 grams of fentanyl in January 2021.  For example, on October 23, 2020, Carter sent text messages to UC-1, stating “Next time imma (sic) give you some super fire cuz (sic) I’m getting some new sh-- in a couple days so let your people know . . . . I ain’t going to lie I’m going to have some way stronger sh-- in the next couple days then I might have to cut it might be that strong seriously.”  On January 13, 2021, in response to a text message from UC-1 describing how much money UC-1 could make from reselling Carter’s drugs, Carter wrote “I’m about the money.”

According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2023, nearly 108,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States.  The increase in overdose deaths has been driven in large part by fentanyl, a drug that has been described as 50 to 100 times more potent than morphine.   In 2023, over 74,000 people died from a drug overdose involving synthetic opioids such as fentanyl, a figure that was around 2,000 less than the more than 76,000 synthetic opioid overdose deaths that occurred in 2022.  Between 2022 and 2023, overall drug overdose deaths decline approximately 3% from around nearly 111,000 such deaths in 2022.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Bradley T. King and Madeline O’Connor are in charge of the prosecution, with assistance from Paralegal Specialist Samantha Schroder and Legal Assistants Janelle Robinson and Danielle Casey. 

The Defendant:

CHARLES CARTER (also known as “Chase”)
Age: 34
Amityville, New York

E.D.N.Y. Docket No. 21-CR-88 (S-1) (GRB)

Anuli Okeke, the former vice president and manager of a New York branch of Popular Bank was convicted yesterday afternoon by a federal jury in Brooklyn of all four counts of an indictment charging her with conspiracy to commit bank and wire fraud, wire fraud, bank fraud and money laundering conspiracy.  The charges arose out of a scheme the defendant led to fraudulently obtain millions of dollars from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program during the height of the COVID-19 pandemic.  The verdict followed a one-week trial before United States District Judge Frederic Block.  When sentenced, Okeke faces up to 30 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York; Principal Deputy Assistant Attorney General Nicole M. Argentieri, Head of the Justice Department’s Criminal Division; Gail S. Ennis, Inspector General for the Social Security Administration (SSA-OIG); James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation New York Field Office (FBI); Patricia Tarasca, Special Agent-in-Charge, Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office (FDIC OIG); Brian Tucker, Special Agent-in-Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, Eastern Region; and Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG), announced the verdict.

“While the global pandemic caused widespread economic and personal harm for so many, the defendant abused her trusted position at a bank to steal millions of dollars from programs designed to keep small businesses afloat and workers on payroll,” stated United States Attorney Peace.  “This verdict reaffirms that our Office and law enforcement partners continue to bring to justice those who took advantage of a global crisis to commit crimes.”

“The jury’s verdict confirms that Anuli Okeke’s actions were not only criminal but also exploitive, damaging the integrity of programs put in place to help those suffering during a time of national crisis. My office will continue to work with our law enforcement partners to investigate those who misuse the identities of others for their selfish devices,” stated SSA Inspector General Ennis.  “I commend our law enforcement partners for their outstanding work in this investigation and the U.S. Attorney’s Office for prosecuting this case and holding Ms. Okeke accountable for her crimes.”

“Today the defendant in this case was held accountable for abusing her position of trust as a banker to facilitate millions of dollars of fraudulent Paycheck Protection Program loans in exchange for kickbacks. The defendant used these stolen funds to enrich herself while small businesses were struggling during the pandemic,” stated FDIC-OIG Special Agent-in-Charge Tarasca.  “The FDIC OIG remains committed to working with our law enforcement partners to protect the Nation’s financial system and hold accountable those individuals, like Ms. Okeke, who steal benefits designated to help those in need.”

“Anuli Okeke used her position to defraud the federal government of pandemic relief funds for her own personal gain and will now pay the price for her crimes,” stated Special Agent-in-Charge Tucker, Office of Inspector General for the Board of Governors of the Federal Reserve System.  “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Ms. Okeke accountable.”

“The abuse of critical resources, intended to support small businesses during a time of unprecedented need, will not be tolerated,” stated SBA-OIG Special Agent-in-Charge McCall-Braithwaite.  “Today’s verdict is a testament to our unwavering dedication to protecting the integrity of SBA’s programs. Our collaboration with the U.S. Attorney’s Office and our law enforcement partners is essential to ensuring that those who defraud the government are brought to justice and the taxpayer interest are protected.”

COVID-19 Relief Overview

The CARES Act was enacted to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic.  One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP.  The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities.  The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.

Another source of relief provided by the CARES Act was the EIDL program, which provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters.  Under the program, EIDL recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance).  The amount of an EIDL Advance was determined based on the number of employees working for the applicant.  The EIDL Advance did not have to be repaid.

Criminal Conduct

As proven at trial, Okeke, and her co-conspirators, both from within and outside the bank fabricated loan and tax documents and stole funds from the PPP and EIDL programs.  Despite knowing that the PPP and EIDL applications contained false statements, and helping applicants make those false statements, Okeke signed each PPP loan application on behalf of the bank and submitted them for approval.  Once the loan proceeds were disbursed to the borrowers, Okeke and her co-conspirators took kickbacks from the loan proceeds.  The defendant also submitted her own fraudulent EIDL loan that contained false information.  In addition, the defendant also took unauthorized commissions from legitimate PPP recipients.

As shown at trial, the defendant boasted about her earnings from the scheme.  In handwritten notes found at her desk at work, the defendant wrote “I am making more than enough money,” “money comes to me easily,” “I am grateful I make $15k every month,” and “I have an extra $5000 every month.”  Around the time of the scheme, the defendant’s bank accounts saw an influx of cash deposits. 

Prior to the defendant’s conviction at trial, seven other co-conspirators pled guilty to wire and bank fraud conspiracy in connection with the defendant’s pandemic aid fraud conspiracy at the bank.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section as well as the Criminal Division’s Fraud Section.  Assistant United States Attorneys Chand Edwards-Balfour and Adam Amir and Trial Attorney Jennifer Bilinkas are in charge of the prosecution, with assistance from Paralegal Specialists Samuel Ronchetti, Michaela Ausbrooks, and April Ward.   

The Defendant:

ANULI OKEKE
Age: 52
Bronx, New York

E.D.N.Y. Docket No. 22 CR 20 (FB)