Eastern District of New York

Earlier today, in federal court in Brooklyn, Keith Wyche was sentenced by United States District Judge Dora L. Irizarry to 40 years in prison for distribution of heroin and fentanyl causing the death of a Staten Island man, distribution of heroin causing the overdose of a Staten Island woman, conspiracy to distribute heroin and fentanyl, and distribution of heroin and fentanyl. Wyche and co-defendant Oneil Allen were convicted by a federal jury in February 2023 following a three-week trial.  Allen was previously sentenced to 30 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Special Agent-in-Charge, Federal Bureau of Investigation, Newark Field Office (FBI), and Edward A. Caban, New York City Police Department (NYPD), announced the sentence.

“Both defendants have been punished with very long jail sentences for pushing drugs, including heroin and fentanyl, which tragically claimed the life of one victim and nearly killed another member of our Staten Island community,” stated United States Attorney Peace.  “I commend the outstanding work of the NYPD and the FBI in determining who was responsible for trafficking these drugs and holding them accountable for the pain, death and harm they caused.”

“Addiction is an unbelievably insidious and grotesque demon. Drugs envelop and take over people's lives, and the criminals who supply them use the disease to cash in on everyone else's pain. Both Wyche and Allen have now been served justice for the injustice they inflicted on their victims,” stated FBI Special Agent-in-Charge Dennehy.

“Today’s sentencing marks a victory in the NYPD’s battle against illicit drug trafficking and serves as a reminder of our unwavering commitment to hold accountable anyone who puts monetary gain above the lives of New Yorkers,” stated NYPD Commissioner Caban. “We vow to keep pursuing those who peddle illegal drugs in our neighborhoods, and we commend all of our law enforcement partners for their continuing efforts to help stem the opioid crisis.”

Between February 2017 and September 2018, the defendants operated a drug delivery service in Staten Island selling heroin and fentanyl and preying upon those suffering from narcotics addiction.  Each day, Wyche and Allen sent out a mass text message advertising that they were open for business. After receiving orders from their customers, the defendants would drive to a preselected location and hand deliver drugs.  The defendants would then return to a New Jersey apartment where they packaged the narcotics.

On April 18, 2017, a 43-year-old Staten Island man (John Doe) was found dead in his bathroom by his father.  When NYPD detectives responded, they found a syringe containing fentanyl on the floor near the deceased victim’s body along with glassines containing fentanyl.  The detectives reviewed the victim’s phone and found recent text messages between him and a person named “Marco 5” who was later revealed to be Wyche.

On October 27, 2017, a then-28-year-old Staten Island woman (Jane Doe) purchased heroin from the defendants, ingested it, and promptly suffered an overdose.  First responders saved her life by quickly administering Narcan and transporting her to the hospital.  A review of text messages in Jane Doe’s phone showed messages similar to those found in John Doe’s phone.  Jane Doe testified at trial that she frequently purchased heroin from the defendants and later assisted law enforcement in gathering additional evidence against them.

The case is being handled by the Organized Crime and Gangs Section and the General Crimes Section.  Assistant United States Attorneys Irisa Chen and Gilbert Rein are in charge of the prosecution with assistance from Paralegal Specialist Teri Carby.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants:

KEITH WYCHE
Age:  38
Staten Island, New York

ONEIL ALLEN
Age:  31
Staten Island, New York

E.D.N.Y. Docket No. 18-CR-561 (S-1) (DLI)

On Thursday and today, a federal jury in Brooklyn convicted Moeleek Harrell, Derrick Ayers, Franklin Gillespie and Anthony Kennedy on 21 counts of an eighth superseding indictment charging them variously with racketeering, murder, murder conspiracy, robbery, drug offenses, money laundering and bribery of state correction officers.  The defendants are members of a violent Brooklyn-based street gang known as the “Bully Gang,” which operated and committed crimes in and around Bedford Stuyvesant with a headquarters located at 1625 Fulton Street.  Harrell was one of the founders and the leader of the Bully Gang; Ayers was a high-ranking member; Kennedy was a longstanding member; and Gillespie was a violent enforcer for the gang.  Today’s verdicts followed a 13-week trial before United States District Judge Brian M. Cogan.  When sentenced, the defendants each face a maximum sentence of life in prison and mandatory minimum sentences ranging from 15 to 55 years.

 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 Field Division (ATF), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the verdict.

“With today’s convictions, the leadership of the Bully Gang has been taken down and their criminal enterprise is a shell of the violent crew that wreaked havoc on Bedford Stuyvesant, other parts of New York City and the Eastern Seaboard with murder, broad daylight shootings, robberies, arsons, drug trafficking and bribery of correction officers at Rikers Island to facilitate a drug trafficking scheme,” stated United States Attorney Peace.  “They used force and violence against rivals, terrorized the surrounding communities and enriched themselves and their members with the illicit proceeds of their criminal activities.  These lawless, so-called ‘Bullies’ have been held responsible for their crimes thanks to the outstanding work by law enforcement agents and detectives who, together with our excellent prosecutors, brought this comprehensive investigation to a successful conclusion.”

“These convictions put an end to the reign of terror committed by this gang, shattering the myth that criminals can commit atrocious acts without consequence. This is the result of a multi-year investigation involving multiple law enforcement agencies spanning multiple jurisdictions.  I commend our law enforcement partners—NYPD, NYC Department of Investigations, and our law enforcement partners in New Jersey, Massachusetts, Maine and prosecutors with the U.S. Attorney’s Office—for their relentless efforts in making our communities safer,” stated ATF Special Agent-in-Charge Miller. “In particular, I am proud of the men and women of ATF NY and the ATF/NYPD Joint Firearms Task Force, who fight every day to prevent violence in any form, and are committed to dismantling and disarming violent gangs that plague our streets.  ATF once again reaffirms its unwavering commitment to protecting the public from violent offenders.”

“These convictions represent the culmination of an extensive investigation combined with a vigorous prosecution,” stated NYPD Commissioner Caban.  “The stakes could not have been higher because these gang members were responsible for an assortment of despicable crimes, including murder, robbery, narcotics trafficking, money laundering, and bribery.  A powerful message has been sent:  Our city will not tolerate such criminal activity, and the NYPD and our law enforcement partners will keep working tirelessly to identify and investigate these enterprises and bring the individuals involved to justice.”

DOI Commissioner Strauber stated: “The violence and drug trafficking in which these defendants engaged had far-reaching effects, including compromising the security of the City’s jails through the bribery of City correction officers used to traffic drugs from gang members to inmates on Rikers Island.  I thank the U.S. Attorney for the Eastern District of New York, the ATF and the NYPD for their partnership on this significant investigation and their commitment to bring to justice those who would jeopardize the safety of our communities through gang violence.”

MURDER CONSPIRACY, MURDER AND FIREARMS OFFENSES

Ayers was convicted of murdering Jonathan Jackson, an associate of the rival “Stukes Crew” gang, at a gender reveal party for Harrell’s child on March 3, 2018, in Brooklyn.  Gillespie was convicted of conspiring to murder Mike Hawley in April 2020 to prevent him from informing authorities about the murder of Paul Hoilett in Brooklyn on April 11, 2020.  Hawley was murdered in Queens four days later, on April 15, 2020.

Ayers and Harrell were convicted of conspiring to murder the leader of the Stukes Crew, whom they stalked by aggregating information from public databases, including the locations where their cars were ticketed.  That stalking led to at least three occasions in 2017 and 2018, when the gang members shot at their rivals and injured some of them.

Ayers and Harrell were convicted of conspiring to murder Chris King, who had previously killed a Bully Gang member.  King was stalked, including having his court appearances tracked, and was ultimately shot outside a Queens restaurant.  A woman who was with King at the time was also wounded.  Both survived their injuries.

Finally, Harrell, Ayers, Gillespie and Kennedy were convicted of illegal possession, brandishing and discharge of firearms.

NARCOTICS TRAFFICKING CONSPIRACIES

Harrell and Kennedy were convicted of conspiring to smuggle drugs into Rikers Island from at least 2019 until 2021.  During that time, members of the Bully Gang arranged for papers and comic books soaked in synthetic cannabinoids, also known as “K2,” to be mailed to inmates at Rikers, smuggled in by third parties, including correction officers and sold to inmates.  Once inmates received the K2-soaked papers, they sold smaller quantities to other inmates at a substantial profit.

Harrell, Ayers, Kennedy and Gillespie were convicted of a separate, years-long scheme to transport large quantities of drugs, including cocaine base, heroin and fentanyl, from New York and New Jersey to Maine, where members and associates of the Bully Gang sold the drugs out of stash houses.  The narcotics were transported in vehicles equipped with concealed compartments, also called “traps,” that were professionally installed.  Ayers was also convicted of running numerous “stash houses” in Maine, from which his underlings sold drugs on behalf of the conspiracy. 

MONEY LAUNDERING

Harrell and Kennedy were convicted of laundering the illicit proceeds from the Rikers drug sales by transferring thousands of dollars each month into CashApp accounts and making wire transfers to co-conspirators through intermediaries.  A portion of this money was used to purchase more K2 and bribe correction officers at Rikers.

Also, Harrell and Ayers were convicted of laundering the illicit proceeds from the lucrative East Coast drug trafficking scheme.  Harrell, Ayers and their co-conspirators purchased high-value assets, including expensive jewelry and vehicles.  They also disguised the proceeds of the scheme by having co-conspirators, some of whom had legitimate jobs, use the cash to make ostensibly legitimate purchases that were actually for the benefit of Harrell and Ayers. 

BRIBERY

Harrell and Kennedy were convicted of participating in the Rikers Island drug trafficking scheme by bribing correction officers at Rikers.  Harrell’s leadership of the gang continued even after his detention at Rikers, where he led a drug trafficking, bribery and money laundering scheme responsible for smuggling drugs into the jail through the use of co-conspirators and the payment of bribes to correction officers.  

ROBBERY

Gillespie was convicted of robberies on consecutive days in August 2020, in downtown Manhattan.  Gillespie and others in the Bully Gang pointed firearms, including a large Mac-10-style firearm, at their victims while demanding their money, jewelry and shopping bags.  After the robberies, Gillespie was arrested with some of the same firearms. 

* * * * *

The jury was unable to reach a unanimous verdict with respect to several remaining counts of the eighth superseding indictment, which charged Ayers with causing Jackson’s death through the use of a firearm; Gillespie with causing Hoilett’s death through the use of a firearm and illegally possessing, brandishing and discharging a firearm in connection with that death; and Gillespie and Kennedy with causing Hawley’s death through the use of a firearm and illegally possessing, brandishing and discharging a firearm in connection with that death.  A mistrial was declared as to those counts. The Office intends to retry the defendants on those counts that the jury was unable to reach a verdict.  Those charges are allegations and the defendants are presumed innocent unless and until proven guilty. 

Since 2020, 53 members and associates of the Bully Gang have been publicly charged with a variety of crimes in connection with this investigation, and 49 have been convicted.  Three defendants are awaiting trial, and one is a fugitive.          

The government’s case is being handled by the Office’s Organized Crime and Gangs Section and Public Integrity Section.  Assistant United States Attorneys Drew G. Rolle, Lindsey R. Oken, Joy Lurinsky and Victor Zapana are prosecuting the case with the assistance of Lead Legal Administrative Specialist Samantha E. Ward and Paralegal Specialists Emily Moosher and William Daniels, as well as Intelligence Analyst Eungee Hwang and a number of EDNY Criminal Investigators and Special Agents.

The Defendants: DERRICK AYERS (also known as “Dee” and “Mel”)
Age:  37
Rahway, New Jersey

MOELEEK HARRELL (also known as “Moe Money”)
Age:  34
Brooklyn, New York

FRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age:  33
Newark, New Jersey

ANTHONY KENNEDY (also known as “Biggie”)
Age:  38
Queens, New York

E.D.N.Y. Docket No.: 20-CR-239 (BMC)

A New York woman pleaded guilty today to fraudulently destroying over 2,600 COVID-19 vaccines and issuing a corresponding number of fraudulent COVID-19 vaccination record cards.

According to court documents, Kathleen Breault, 66, of Cambridge, a midwife at Sage-Femme Midwifery PLLC (Safe-Femme), an authorized COVID-19 vaccine administration site in Albany, New York, conspired to obstruct the government’s distribution of COVID-19 vaccines by providing COVID-19 vaccination record cards to individuals who were not vaccinated, including to minors who were at the time ineligible to be vaccinated and to Canadian citizens who were not present in the United States when they were purportedly vaccinated. In addition to destroying COVID-19 vaccines and issuing fraudulent vaccination record cards, Breault and her co-conspirators made over 2,600 false entries into a New York State database that tracked COVID-19 vaccine distribution. Breault agreed to pay more than $37,000 in restitution for the destroyed vaccines.    

Breault pleaded guilty to conspiring to defraud the United States and its departments and agencies. She is scheduled to be sentenced on Sept. 18 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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 Michael Nordwall of the FBI’s Criminal Investigative Division; and Assistant Director in Charge James H. Smith III of the FBI New York Field Office made the announcement.

The FBI is investigating the case, with assistance from the New York State Department of Health.

Trial Attorneys Patrick J. Campbell and Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case.

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 the Department of Health and Human Services Office of Inspector General, 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.

Today, in federal court in Brooklyn, Sagar Steven Singh pled guilty before United States Magistrate Judge Marcia M. Henry to conspiring to commit computer intrusion and aggravated identify theft.  On May 30, 2024, Nicholas Ceraolo pled guilty before Judge Henry to the same offenses.  Singh and Ceraolo were charged in March 2023.

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 (HSI), New York, announced the charges.

“The defendants called themselves ‘ViLe,’ and their actions were exactly that,” stated U.S. Attorney Peace.  “They hacked into a law enforcement database and had access to sensitive personal information, then threatened to harm a victim’s family and publicly release that information unless the defendants were ultimately paid money.  Our Office is relentless in protecting victims from having their sensitive information stolen and used to extort them by cybercriminals.”

Mr. Peace thanked HSI's El Dorado Task Force, the Federal Bureau of Investigation and the New York Police Department for their assistance on the case.

“The defendants, along with their co-conspirators, exploited vulnerabilities within government databases for their own personal gain. These guilty pleas send a strong message to those that would seek illicit access to protected computer systems," said HSI New York Special Agent in Charge Ivan J. Arvelo. "HSI New York's El Dorado Task Force will continue to work with law enforcement partners to uncover evidence until every member of the ViLe group and similar criminal organizations are brought to justice.”

ViLE Overview

Singh and Ceraolo belonged to a group called “ViLE,” the logo of which includes the body of a hanging girl, as depicted below in the group’s official roster:

Members of ViLE sought to collect victims’ personal information, including social security numbers.  ViLE then posted that information (or threatened to post it) on a public website administered by a ViLE member – an action known as “doxxing.”  Victims could pay to have their information removed from or kept off the website.

Conduct

Singh and Ceraolo unlawfully used a law enforcement officer’s stolen password to access a nonpublic, password-protected online portal (the “Portal”) maintained by a U.S. federal law enforcement agency.  The purpose of the Portal was to share intelligence from government databases with state and local law enforcement agencies, and the Portal provided access to detailed, nonpublic records of narcotics and currency seizures, as well as law enforcement intelligence reports. 

Singh wrote to a victim (Victim-1) that he would “harm” Victim-1’s family unless Victim-1 gave Singh the credentials for Victim-1’s Instagram accounts.  In order to drive home the threat, Singh appended Victim-1’s social security number, driver’s license number, home address and other personal details.  Singh told Victim-1 that he had “access to [] databases, which are federal, through [the] portal, i can request information on anyone in the US doesn’t matter who, nobody is safe.”  He added: “you’re gonna comply to me if you don’t want anything negative to happen to your parents.”  Singh ultimately directed Victim-1 to sell Victim-1’s accounts and give the proceeds to Singh.

After Singh and Ceraolo accessed the Portal, they both acknowledged knowing that their conduct was criminal.  Ceraolo wrote to Singh: “were [sic] all gonna get raided one of these days i swear.”  Later that day, Singh wrote to a contact that the “portal [] i accessed i was not supposed to be there not one bit.”  Singh said he had “jacked into a police officer’s account” and “that portal had some f***ing potent tools.”  Singh continued: “it gave me access to gov databases,” followed by the names of five search tools accessible through the Portal.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Alexander Mindlin, Ellen H. Sise and Adam Amir are in charge of the prosecution. 

When sentenced, the defendants each face a minimum sentence of two years in prison, and a maximum of seven years.

The Defendants:

Nicholas Ceraolo (also known as “Convict,” “Anon” and “Ominous”)
Age:  26
Queens, New York

Sagar Steven Singh (also known as “Weep”)
Age:  20
Pawtucket, Rhode Island

E.D.N.Y. Docket No. 23-cr-236

BROOKLYN, NY – Kathleen Breault pleaded guilty today to conspiring to defraud the United States by fraudulently destroying over 2,600 COVID-19 vaccines and issuing a corresponding number of fraudulent COVID-19 vaccination record cards.  The proceeding was held before United States District Judge Rachel P. Kovner.

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

According to court documents, Kathleen Breault,  a midwife at Sage-Femme Midwifery PLLC (Sage-Femme), an authorized COVID-19 vaccine administration site in Albany, New York, conspired to obstruct the government’s distribution of COVID-19 vaccines by providing COVID-19 vaccination record cards to individuals who were not vaccinated, including to minors who were at the time ineligible to be vaccinated and Canadian citizens who were not present in the United States when they were purportedly vaccinated.  In addition to destroying COVID-19 vaccines and issuing fraudulent vaccination record cards, Breault and her co-conspirators made over 2,600 false entries into a New York State database that tracked COVID-19 vaccine distribution.  Breault agreed to repay more than $37,000 in restitution for the destroyed vaccines.   

Breault pleaded guilty to conspiring to defraud the United States and its departments and agencies.  When sentenced, Breault faces a maximum penalty of five years in prison.  

The FBI is investigating the case.  The New York State Department of Health assisted with the investigation.  Trial Attorneys Patrick J. Campbell and Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case.

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.

The Defendant:

KATHLEEN BREAULT
Age:  66
Cambridge, New York

E.D.N.Y. Docket No.: 23-CR-158 (RPK)

Today, in federal court in Central Islip, Klaus Pflugbeil, a resident of the People’s Republic of China (the PRC or China) and a Canadian and German national, pleaded guilty to conspiring to send trade secrets that belonged to a leading U.S.-based electric vehicle company (Victim Company-1).  Pflugbeil and his co-defendant, Yilong Shao, who remains at large, are owners of a PRC-based business (Business-1) that sold technology used to make batteries, including batteries used in electric vehicles.  Pflugbeil, a former employee of a company later purchased by Victim Company-1, stole trade secrets from his then employer, and later used the trade secrets to build Business-1, marketing his business as a replacement for Victim Company-1’s products.  The proceeding was held before United States Magistrate Judge Arlene R. Lindsay.  When sentenced, Pflugbeil faces up to 10 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 James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

“Today, the defendant is guilty of boldly sending valuable trade secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of battery-powered electric vehicles to an undercover law enforcement agent expertly posing as a businessman on Long Island,” stated United States Attorney Peace.  “Today’s guilty plea demonstrates how this Office will swiftly bring to justice those who misappropriate intellectual property belonging to American companies, to safeguard our economy and national security.”

Mr. Peace also thanked the Justice Department’s Computer Crime and Intellectual Property Section for their invaluable assistance on the case.

“Despite Pflugbeil’s agreement to protect what he knew was proprietary, sensitive technology, he chose to abscond with these trade secrets to China, where he sought an unfair and illegal advantage in critical industries such as electric vehicle manufacturing,” stated Assistant Attorney General Olsen.  “With his guilty plea, Pflugbeil is now being held accountable for this unlawful conduct that jeopardized our national security.”

Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems.  In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines (the “Canadian Manufacturer”).  Prior to its purchase by Victim Company-1, the Canadian Manufacturer sold battery assembly lines to customers who manufactured alkaline and lithium-ion batteries for consumer use.  The battery assembly lines contained or utilized a proprietary technology now owned by Victim Company-1: continuous motion alkaline battery assembly (the “Battery Assembly Trade Secret”).  The proprietary technology provided a substantial competitive advantage to Victim Company-1 in the battery manufacturing process. 

Both Pflugbeil and his co-defendant Shao are former employees of the Canadian Manufacturer.  As detailed in court documents, by no later than 2019, Pflugbeil and Shao planned to use Victim Company-1’s trade secrets for their own business activities.  Pflugbeil told Shao that he had “a lot of original documents” related to the technology and sought out more “original drawings” of the trade secrets.  Shao subsequently confirmed, among other things, that, “we have all of original assembly drawings by PDF.”

The conspirators took measures to obfuscate that they had stolen documents.  For example, Pflugbeil wrote to Shao about a document he created based on a document that Shao had stolen from Victim Company-1, “[it's] in a different format, so it looks very original and not like a copy.”

In or about July 2020, Pflugbeil joined Business-1, a company previously established by Shao, which has since expanded to locations in China, Canada, Germany and Brazil.  Business‑1 makes the same precision dispensing pumps and battery assembly lines that the Canadian Manufacturer developed.  Business-1 was marketed by Pflugbeil as an alternative source for the sale of products that relied upon Victim Company-1’s trade secrets, publishing online advertisements on Google, YouTube and LinkedIn. 

Pflugbeil purchased ads on Google for Business-1.  These ads read, for example, “[Business-1] | Replacing [Canadian Manufacturer] Pumps & Parts | [Canadian Manufacturer] Identical Spare Parts.  We manufacture precision metering pumps and fill tubes. | Contact Us for your [Canadian Manufacturer] replacement pumps and parts.”  In any given week, this ad was shown tens of thousands of times.

Pflugbeil also repeatedly sent LinkedIn messages that said, “Hello [name], I used to work at [Canadian Manufacturer], and after [Victim Company-1] purchased and closed the company, I am now part of a company providing similar products and services.”  Pflugbeil’s LinkedIn profile background, pictured below, read:

On September 11, 2023, undercover FBI agents attended a trade show for the packaging and processing industries (the “Trade Show”) in Las Vegas, Nevada.  The undercover agents posed as businesspeople who were interested in purchasing a battery assembly line from Business-1 to manufacture batteries at a facility in Long Island, New York.  The undercover agents were introduced to Shao at the trade show and later to Pflugbeil via email. 

Subsequently, on or about November 17, 2023, Pflugbeil sent, via email, a detailed 66-page technical documentation proposal (the “Proposal”) to an undercover agent (“UC-1”).  The Proposal notes, “this technical documentation package contains [Business-1] proprietary information which must be kept confidential.”  In reality, the Proposal contained Battery Assembly Trade Secret information belonging to Victim Company-1:  at least half a dozen drawings Pflugbeil used in the Proposal and sent to UC-1 were, in fact, Victim Company-1’s information related to the Battery Assembly Trade Secret.

The government’s case is being handled by the Office’s National Security and Cybercrime Section and the Criminal Section of the Long Island Criminal Division.  Assistant United States Attorneys Ellen H. Sise and Samantha Alessi are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force.  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.

The Defendant

KLAUS PFLUGBEIL
AGE:  58
Ningbo, China

E.D.N.Y. Docket No. 24-CR-238 (JMA)

Klaus Pflugbeil, 58, a Canadian and German national and resident of the People’s Republic of China (PRC), pleaded guilty today to conspiring to send trade secrets that belonged to a leading U.S.-based electric vehicle company (Victim Company-1). Pflugbeil and his co-defendant, Yilong Shao, who remains at large, are owners of a PRC-based business (Business-1) that sold technology used to make batteries, including batteries used in electric vehicles. Pflugbeil, a former employee of a company later purchased by Victim Company-1, stole trade secrets from his then employer and later used the trade secrets to build Business-1, marketing his business as a replacement for Victim Company-1’s products. 

“Despite Pflugbeil’s agreement to protect what he knew was proprietary, sensitive technology, he chose to abscond with these trade secrets to China, where he sought an unfair and illegal advantage in critical industries such as electric vehicle manufacturing,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “With his guilty plea, Pflugbeil is now being held accountable for this unlawful conduct that jeopardized our national security.”

“The defendant boldly took what did not belong to him and used stolen trade secrets for his own personal profit knowing those valuable trade secrets were rightfully owned by an American company,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s guilty plea demonstrates how this office will swiftly bring to justice those who misappropriate intellectual property belonging to American companies particularly where the use of the technology poses a national security risk.”

“The defendant knowingly and illegally took trade secrets with no regard to the damage that would be done to the victim or the financial impact it would have on the U.S. economy,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI and our partners will aggressively investigate and hold accountable anyone who seeks to profit by stealing technology from U.S. companies.”

According to court documents, Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines (the Canadian Manufacturer). Prior to its purchase by Victim Company-1, the Canadian Manufacturer sold battery assembly lines to customers who manufactured alkaline and lithium-ion batteries for consumer use. The battery assembly lines contained or utilized a proprietary technology now owned by Victim Company-1: continuous motion alkaline battery assembly (the Battery Assembly Trade Secret). The proprietary technology provided a substantial competitive advantage to Victim Company-1 in the battery manufacturing process. 

Both Pflugbeil and Shao are former employees of the Canadian Manufacturer. As detailed in court documents, by no later than 2019, Pflugbeil and Shao planned to use Victim Company-1’s trade secrets for their own business activities. Pflugbeil told Shao that he had “a lot of original documents” related to the technology and sought out more “original drawings” of the trade secrets. Shao subsequently confirmed, among other things that, “we have all of original assembly drawings by PDF.”

The conspirators took measures to obfuscate that they had stolen documents. For example, Pflugbeil wrote to Shao about a document he created based on a document that Shao had stolen from Victim Company-1, “[its] in a different format, so it looks very original and not like a copy.”

In or about July 2020, Pflugbeil joined Business-1, a company previously established by Shao, which has since expanded to locations in China, Canada, Germany and Brazil. Business‑1 makes the same precision dispensing pumps and battery assembly lines that the Canadian Manufacturer developed. Business-1 was marketed by Pflugbeil as an alternative source for the sale of products that relied upon Victim Company-1’s trade secrets, publishing online advertisements on Google, YouTube and LinkedIn.

Pflugbeil purchased ads on Google for Business-1. These ads read, for example, “[Business-1] | Replacing [Canadian Manufacturer] Pumps & Parts | [Canadian Manufacturer] Identical Spare Parts. We manufacture precision metering pumps and fill tubes. | Contact Us for your [Canadian Manufacturer] replacement pumps and parts.” In any given week, this ad was shown tens of thousands of times.

Pflugbeil also repeatedly sent LinkedIn messages that said, “Hello [name], I used to work at [Canadian Manufacturer], and after [Victim Company-1] purchased and closed the company, I am now part of a company providing similar products and services. Pflugbeil’s LinkedIn profile background, pictured below, read:

On Sept. 11, 2023, undercover FBI agents attended a trade show for the packaging and processing industries in Las Vegas. The undercover agents posed as businesspeople who were interested in purchasing a battery assembly line from Business-1 to manufacture batteries at a facility in Long Island, New York. The undercover agents were introduced to Shao at the trade show and later to Pflugbeil via email. 

Subsequently, on or about Nov. 17, 2023, Pflugbeil sent, via email, a detailed 66-page technical documentation proposal to an undercover agent (UC-1). The proposal notes, “this technical documentation package contains [Business-1] proprietary information which must be kept confidential.” In reality, the proposal contained Battery Assembly Trade Secret information belonging to Victim Company-1: at least half a dozen drawings Pflugbeil used in the Proposal and sent to UC-1 were, in fact, Victim Company-1’s information related to the Battery Assembly Trade Secret.

Pflugbeil pleaded guilty to conspiring to send trade secrets. He is scheduled to be sentenced on Oct. 9 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.

Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Ellen H. Sise and Samantha Alessi for the Eastern District of New York are prosecuting the case.

This action was coordinated through the Disruptive Technology Strike Force, 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. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.

Today, indictments were unsealed in federal court in Brooklyn charging four defendants for their participation in a series of fraudulent business email compromise (BEC) schemes and related romance schemes that resulted in more than $50 million in losses by individuals and small businesses located within the Eastern District of New York and throughout the United States.  The defendants Animashaun Adebo, Idowu Ademoroti, Nelson Ojeriakhi and Noguan Marvellous Eboigbe, together with their network of co-conspirators, misappropriated victim funds and laundered them through shell company accounts in the United States and abroad, sometimes using unsuspecting middlemen, including escrow attorneys and other victims, to further obscure the audit trail and disassociate the funds from the frauds.   

Adebo was arrested yesterday in Chicago, Illinois.  Ademoroti was arrested yesterday at John F. Kennedy International Airport in Queens, New York, and will be arraigned today before United States Magistrate Judge Peggy Kuo in federal court in Brooklyn.  Ojeriakhi was arrested previously in Paris, France, and remains in custody pending the resolution of extradition proceedings.  Adebo will be arraigned in the Eastern District of New York at a later date.  Eboigbe remains at large.

Breon Peace, United States Attorney for the Eastern District of New York, and Patrick J. Freaney, Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS), announced the arrests and charges.

“As alleged, from breaking hearts to breaking into email accounts, no scheme was too depraved for the defendants and their network of criminal associates to steal over $50 million from innocent victims in Brooklyn and throughout the country,” stated United States Attorney Peace.  “Business email compromise schemes like these cause devastating financial losses and other harm to victims.  The indictments unsealed today charge perpetrators at every step of the schemes – from executing the frauds to laundering and receiving the proceeds.  Prosecuting online criminal actors and recovering the victims’ stolen funds is a priority of this Office.”

“Today’s indictment is a cautionary tale for anyone who thinks they can target innocent victims through sophisticated cyber fraud and get away with it,” said USSS Special-Agent-in-Charge Freaney.  “Through deception and lies the alleged ringleaders schemed unwitting victims of more than 50 million dollars, leaving a wake of anguish in their path. I am incredibly proud of the investigators and prosecutors who were relentless in bringing accountability to these crimes.”

A BEC scheme is a form of cyber-enabled financial fraud.  In a typical BEC scheme, a malicious actor compromises legitimate business email accounts through computer intrusion techniques or social engineering and uses those accounts to cause the unauthorized transfer of funds.  Techniques for perpetrating these schemes include identity theft, spoofing of emails and websites and the use of malware.  Confidence fraud is another form of cyber-enabled financial fraud.  In a typical confidence fraud, a malicious actor befriends and gains the confidence of another individual through online communications and uses that confidence to cause the transfer of funds for unauthorized purposes.  A romance scheme is a type of confidence fraud wherein the perpetrator adopts a fictitious online identity to gain a victim’s affection and trust.  The perpetrator then uses the illusion of a romantic relationship to cause the transfer of funds for unauthorized purposes.   

Between April 2021 and March 2022, the defendants and their co-conspirators allegedly orchestrated a series of fraudulent BEC schemes and related romance schemes and laundered and received proceeds from the fraudulent schemes.  As one part of the BEC schemes, victim-individuals involved in real estate transactions received fraudulent emails purporting to be from legitimate parties to those transactions.  The emails instructed them to wire funds they believed to be related to the real estate transactions to specified bank accounts.  The fraudulent email accounts that contacted the victims closely resembled, but were slightly different from, the email addresses of the legitimate parties to the transaction (a process known as “spoofing”). 

As another part of the BEC schemes, employees of victim-companies received fraudulent emails purporting to be from legitimate vendors or other business partners of those companies directing them to transfer funds to specified bank accounts.  The employees were also defrauded through email spoofing and received fraudulent emails from accounts that closely resembled, but were slightly different from, the email addresses of the legitimate vendors and business partners. 

In each case, after the victims executed the wires in accordance with the fraudulent instructions, the transferred funds were misappropriated from the victims and sent to and through accounts controlled by the defendants and their co-conspirators.  As described below, the defendants played varying roles in the schemes.       

Animashaun Adebo, also known as “Kazeem” and “Kazeem Animashaun,” was charged with wire fraud conspiracy, money laundering conspiracy, conspiracy to receive stolen funds and receipt of stolen funds.  As alleged, Adebo conspired to perpetrate multiple internet-based fraud schemes on victims and directed others to launder the proceeds of those schemes through shell company accounts, through the purchase of luxury watches, and through an illegal money exchange operation run by his co-defendant Ademoroti.  Adebo ultimately received fraudulent proceeds in corporate bank accounts located in Nigeria.  If convicted, Adebo faces a maximum sentence of 20 years’ imprisonment on each of the wire fraud and money laundering conspiracy charges, five years’ imprisonment on the conspiracy to receive stolen funds charge, and 10 years’ imprisonment on the receipt of stolen funds charge. 

Idowu Ademoroti was charged with money laundering conspiracy, operating an illegal money transmitting business, conspiracy to receive stolen funds and receipt of stolen funds.   As alleged, Ademoroti laundered and received fraudulent proceeds of the schemes perpetrated by Adebo and others through the operation of an illegal money exchange business in which he facilitated the trading of fraudulent dollar proceeds to individuals overseas in exchange for Nigerian naira.  If convicted, Ademoroti faces a maximum sentence of 20 years’ imprisonment on the money laundering conspiracy charge, five years’ imprisonment on the illegal money transmitting business charge, five years’ imprisonment on the conspiracy to receive stolen funds charge, and 10 years’ imprisonment on the receipt of stolen funds charge.  

Noguan Marvellous Eboigbe, also known as “Randall Olson,” “Martin Roberto” and “Carlos Eduardo,” was charged with wire fraud, wire fraud conspiracy, money laundering conspiracy, money laundering and engaging in unlawful monetary transactions over $10,000 for facilitating the flow of more than $10 million in fraudulent proceeds from victims to the defendants and their co-conspirators.  Using false identities, Eboigbe contacted law firms that provided escrow services and posing as a potential client, told them that he would send them funds for a business transaction, and instructed them to wire those funds to specified accounts.  However, the funds received by the attorneys were in fact fraudulent proceeds of the real estate and corporate BEC schemes described above and were sent unwittingly by the victims.  If convicted, Eboigbe, who is on the USSS Most Wanted list, faces a maximum sentence of 20 years’ imprisonment on each of the wire fraud conspiracy, wire fraud, money laundering conspiracy and money laundering charges and 10 years’ imprisonment on the unlawful monetary transactions charge.

Nelson Ojeriakhi, also known as “Ojeey Mami” and “Oba Millie,” was charged with wire fraud and wire fraud conspiracy for sending spoof emails to unsuspecting victims in order to misappropriate millions of dollars from them in connection with the schemes described above.  The funds were subsequently laundered by the defendants and their co-conspirators.  Ojeriakhi was arrested in Paris, France on April 18, 2023.  If convicted, Ojeriakhi faces a maximum sentence of 20 years’ imprisonment on each of the wire fraud conspiracy and wire fraud charges. 

A fifth co-conspirator, Franziska Von Greve-Dierfeld, was previously charged with money laundering conspiracy for receiving and disbursing fraudulent proceeds from the schemes described above in shell company accounts she created.  Von Greve-Dierfeld was arrested in May 2022 and pleaded guilty to charges in connection with her conduct.  Von Greve-Dierfeld served time in custody and, following the completion of her sentence, returned to Germany pursuant to a judicial order of removal from the United States.

The U.S. Attorney’s Office for the Eastern District of New York conducts presentations by Assistant U.S. Attorneys about ways to protect yourself and your community against scams, especially those targeting financial exploitation. To request a presentation please email USANYE-SpeakersBureau@usdoj.gov.

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

Assistant United States Attorneys Andrew D. Reich and Daniel J. Marcus are in charge of the prosecution with the assistance of Paralegal Specialists Liam McNett and Jacob Menz. 

The Defendants:

ANIMASHAUN ADEBO (also known as “Kazeem” and “Kazeem Animashaun”)
Age: 39
Chicago, Illinois

IDOWU ADEMOROTI
Age: 31
Milwaukee, Wisconsin; Atlanta, Georgia

E.D.N.Y. Docket No. 24-CR-239 (PKC)

NOGUAN MARVELLOUS EBOIGBE (also known as “Randall Olson,” “Martin Roberto” and “Carlos Eduardo”)
Age: 44
Lagos, Nigeria

E.D.N.Y. Docket No. 24-CR-240 (PKC)

NELSON OJERIAKHI (also known as “Ojeey Mami” and “Oba Millie”)
Age: 31
Lagos, Nigeria 

E.D.N.Y. Docket No. 23-CR-188 (PKC)

FRANZISKA VON GREVE-DIERFELD
Age: 79
Aachen, Germany

E.D.N.Y. Docket No. 23-CR-033 (BMC)

Earlier today, in federal court in Brooklyn, Ariana Charles pleaded guilty to trafficking firearms and conspiring to distribute fentanyl and cocaine base.  The proceeding was held before United States District Judge William F. Kuntz II.  The defendant was charged in January 2024 under the provisions of the Bipartisan Safer Communities Act, the first federal statute specifically designed to target gun trafficking, which Congress and the President enacted in June 2022.  When sentenced, Charles faces a maximum sentence of 20 years’ imprisonment for the controlled substance distribution conspiracy and 15 years’ imprisonment for firearms trafficking. 

Breon Peace, United States Attorney for the Eastern District of New York, Frank A Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA) and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“This Office has made it a top priority to stop the illicit flow of firearms and drugs into our community and today’s guilty plea is the result of those ongoing efforts,” stated United States Attorney Peace.  “Gang members, felons and violent individuals who use deadly weapons to inflict irreparable harm on our community do not come into possession of these instruments of death out of thin air; instead, they rely on traffickers like this defendant, who must be held accountable for their role in the violence that results from the use of these weapons.”

According to the indictment, statements made during the plea proceeding and court documents, Charles personally sold 18 firearms to an undercover law enforcement officer (the “UC”) in residential areas of Brooklyn in broad daylight, including in and around the New York City Housing Authority’s Breukelen Houses, outside other apartment buildings and in shopping center parking lots.  The UC told Charles and her co-conspirators that he was a drug dealer who needed guns and was going to resell them.  Several guns sold by Charles were purchased in Virginia and Georgia and then transported to New York.  Among other weapons, Charles sold a firearm with a defaced serial number and several semi-automatic rifles.

Charles also sold drugs to the UC, including crack cocaine and fentanyl.  Some of the fentanyl she sold had been disguised as Oxycodone pills.

Four of Charles’s co-conspirators are awaiting sentencing after pleading guilty to conspiring to traffic firearms into Brooklyn in the first case in New York to publicly charge the gun trafficking provisions of the Bipartisan Safer Communities Act.

The case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Adam Amir, Irisa Chen and James R. Simmons are in charge of the prosecution. 

The Defendant:

ARIANA CHARLES
Age:  28
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-8 (WFK)

Earlier today, at the federal courthouse in Brooklyn, a four-count indictment was unsealed charging Tony Terry with conspiring to illegally traffic firearms from Georgia to Brooklyn, New York.  Terry was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.

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 (ATF) and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.

“As alleged, the defendant brought deadly weapons from Georgia to the streets of East New York, Brooklyn, a community that has suffered terribly from gun violence,” stated United States Attorney Peace.  “My Office and our law enforcement partners are working tirelessly to investigate, prosecute and disrupt the flow of illegal guns along the Iron Pipeline, and keep them out of the hands of criminals who have no respect for the law or human life.”

Mr. Peace thanked the United States Attorney’s Office for the Southern District of Georgia for their assistance in the case.

“This indictment underscores the unwavering commitment of the Bureau of Alcohol, Tobacco, Firearms and Explosives to disrupt the flow of illegal guns into our streets,” stated ATF Special Agent-in-Charge Miller.  “Those who purchase and traffic guns to sell to those who cannot legally obtain them are a threat to our community. Disrupting firearms trafficking schemes like this is a top priority for us. The ATF NY/ NYPD’s Joint Firearms Task Force Joint is dedicated to ensuring the safety of our communities. We extend our gratitude to our colleagues in ATF Atlanta’s Savannah Field Office & Eastern District of New York for their assistance.  For those engaging in gunrunning conspiracies in NY, justice will be served in court.”

“This indictment underscores the NYPD’s commitment to eradicating the illicit firearms supply chain that continues to threaten our communities,” stated NYPD Commissioner Caban.  “I commend the diligent efforts of our NYPD investigators, especially our brave undercover officer in this case, along with our colleagues at the ATF and the office of the U.S. Attorney for the Eastern District for their critical role in removing these guns—and those who peddle them—from New York City’s streets.”

As set forth in the indictment and other filings, on November 22, 2022 and November 28, 2022, Terry traveled to Savannah, Georgia where members of his family served as straw purchasers for multiple firearms from licensed firearm dealers.  Terry then returned to Brooklyn where a co-conspirator sold two of the firearms.  On December 6, 2022, Terry sold a Taurus 9mm G2e handgun to an undercover NYPD officer in East New York, Brooklyn. 

The straw purchasers, Jose Marrero and Jacqueline Christmas, were indicted and prosecuted by the United States Attorneys’ Office for the Southern District of Georgia for an additional 15 firearms they purchased on behalf of the defendant.  Marrero pleaded guilty and was sentenced in May 2024 to 18 months in prison.  Christmas pleaded guilty in March 2024 and is awaiting sentencing. 

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

Assistant United States Attorney Raffaela S. Belizaire is in charge of the prosecution. 

The Defendant:

TONY TERRY
Age:  35
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-244 (CBA)

Earlier today, in federal court in Brooklyn, New York, Alan John Hanke, the sole member of IOLO Capital (IOLO), pleaded guilty to conspiracy to commit securities fraud for his role in misappropriating more than $8 million as part of a Ponzi scheme.  As part of his plea, Hanke also stipulated that he filed a bankruptcy petition and documents in a bankruptcy proceeding to conceal the conspiracy.  Hanke was indicted in February 2024.  The proceeding was held before United States District Judge Ramon E. Reyes, Jr.  When sentenced, Hanke faces up to five years in prison. 

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office, and David Walker, Special Agent in Charge, FBI, Tampa Field Office, announced the guilty plea.

“Hanke admitted today that he conspired to defraud clients of millions of dollars of their investments, and then tried to cover up his crime by declaring bankruptcy which was an intentional abuse of the U.S. Bankruptcy Court,” stated United States Attorney Peace.  “Today’s guilty plea reaffirms my Office’s efforts to root out white-collar crime where we find it and ensure integrity in the financial markets and the court system.” 

As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies.  Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.”  He also assured investors that their investments would be insured against losses.  As alleged, however, nearly all the money that the victims invested with Hanke was not recovered.  The bulk of the victims’ money went to Hanke’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car.  Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme.  Hanke filed a bankruptcy petition in June 2021 in which he sought to discharge the debts that he owed to his victims.  In the bankruptcy petition, Hanke disclosed that he received monthly Social Security disability payments but did not disclose the millions of dollars of income he received from his victims.  Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash. 

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates. 

The Defendant:

ALAN JOHN HANKE
Age: 50
Crystal Lake, Illinois

E.D.N.Y. Docket No. 24-CR-27 (RER)

CENTRAL ISLIP, NY - Yesterday afternoon, in federal court in Houston, Texas, Cesar Humberto Lopez-Larios, also known as “Grenas de Stoners” and “Oso de Stoners,” a high-ranking leader of La Mara Salvatrucha, also known as “MS-13,” was ordered to be transferred in custody to the Eastern District of New York where he, together with 13 other high-ranking MS-13 leaders, are charged with directing the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere over the past two decades.  Lopez-Larios, who had been a fugitive for more than three years, was arrested by the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) on June 9, 2024 when he arrived at George Bush Intercontinental Airport in Houston, Texas.  Specifically, Lopez-Larios is charged with conspiracy to provide and conceal material support to terrorists, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to finance terrorism, and narco-terrorism conspiracy.  Lopez-Larios will be arraigned in the Eastern District of New York at a later date.

Breon Peace, United States Attorney for the Eastern District of New York (EDNY), Krysti Hawkins, Acting Assistant Director-in-Charge of the FBI’s Los Angeles Field Office, and Ivan J. Arvelo, Special Agent-in-Charge, HSI’s New York Field Office, announced Lopez-Larios’s arrest.

“The arrest of Lopez-Larios, who is one of the most senior leaders of MS-13 in the world, is a significant achievement for law enforcement and another crucial step in the dismantling of this international criminal enterprise,” stated United States Attorney Peace.  “The defendant will soon face a reckoning in a federal courtroom on Long Island where, acting on his orders, MS-13 has spilled so much blood and turned communities into war zones.”

Mr. Peace expressed his thanks to the FBI’s Los Angeles Field Office and Criminal Investigative Division’s Safe Streets Gang Unit, and HSI’s National Gangs and Violent Crime Unit and New York Field Office for spearheading the MS-13 leadership investigations.  Additionally, he thanked the FBI and HSI’s Houston Field Offices, and the United States Customs and Border Protection Officers at the George Bush Intercontinental Airport in Houston for the critical support provided in connection with the arrest, and the U.S. Attorney’s Office and the United States Marshals Service for the Southern District of Texas for coordinating the defendant’s initial appearance in Houston.  Mr. Peace also thanked the numerous Department of Justice components that contributed to this indictment, including the National Security Division’s Counterterrorism Section and the Organized Crime Drug Enforcement Task Forces Executive Office.

“Now that Mr. Lopez-Larios is behind bars, he's no longer in his alleged position of power directing a reign of terror, nor enriching MS-13 and their cartel associates,” stated FBI Acting Assistant Director-in-Charge Hawkins. “The FBI will continue to collaborate with our partners to seek justice and to find the remaining fugitives of this vicious transnational criminal enterprise.”

“Cesar Humberto Lopez-Larios’ arrest represents yet another significant leader of MS-13 to be brought to justice this year. Despite his attempts to evade authorities, Lopez-Larios must now answer to criminal charges stemming from his alleged management of one of the most malicious transnational criminal organizations in existence today,” stated HSI New York Special Agent-in-Charge Arvelo. “Although Lopez-Larios, also known as ‘Grenas de Stoners’ to his followers, is now in custody, we recognize there is more to be done. HSI New York, working with our law enforcement partners, will not cease in our efforts to hold MS-13 accountable for their unmitigated violence in communities across New York and elsewhere.”

As set forth in the indictment and related court filings, Lopez-Larios and his co-defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales. They play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world.  In total, 27 of the highest-ranking leaders of MS-13 have been charged in the Eastern District of New York in this indictment and the related indictment of United States v. Arevalo-Chavez, et al.

As further alleged, in approximately 2002, Lopez-Larios, his co-defendants and other MS-13 leaders began establishing a highly organized, hierarchical command and control structure as a means to effectuate their decisions and enforce their orders, even while in prison.  They directed acts of violence and murder in El Salvador, the United States and elsewhere, established military-style training camps for MS-13 members and obtained military weapons such as rifles, handguns, grenades, improvised explosive devices (IEDs) and rocket launchers.  Further, beginning in approximately 2012, Lopez-Larios and other members of the Ranfla Nacional negotiated with officials from the government of El Salvador (GOES) to obtain benefits and concessions from the government.  In order to extort those benefits and concessions, MS-13 engaged in public displays of violence to threaten and intimidate civilian populations, target GOES law enforcement and military officials, and manipulate the electoral process in El Salvador.

Additionally, as alleged, the Ranfla Nacional directed the expansion of MS-13 activities around the world, including the United States and Mexico, where Lopez-Larios and other high-ranking leaders were sent to organize operations, make connections to obtain narcotics and firearms from Mexican drug cartels such as the Zetas, Gulf Cartel, Cártel de Jalisco Nueva Generación (CJNG) and Sinaloa Cartel, and engage in human trafficking and smuggling. The Ranfla Nacional also directed MS-13’s large membership in the United States to engage in criminal activities, such as drug trafficking and extortion to raise money to support MS-13’s terrorist activities in El Salvador and elsewhere.  Lopez-Larios, who has been an MS-13 leader for approximately two decades in El Salvador, Mexico and the United States, was an original member of MS-13's Twleve Apostles of the Devil and later became a member of the Ranfla Nacional.  

Finally, the Ranfla Nacional and MS-13’s transnational leadership structure is alleged to have directed members in the United States to commit acts of violence to further its goals and implement rules enabling MS-13 to entrench itself in parts of the United States, including within the Eastern District of New York where, under the defendants’ leadership and rules, MS-13 has committed murders, attempted murders, assaults, kidnappings, drug trafficking, extortion of individuals and businesses, and obstruction of justice, and has sent dues and the proceeds of criminal activity by wire transfer to MS-13 leaders in El Salvador.  For example, this Office's Long Island Criminal Division has prosecuted hundreds of MS-13 leaders, members and associates for carrying out more than 70 murders in the Eastern District of New York between 2009 and the present.

Two related defendants from the Arevalo-Chavez indictment, Jorge Alexander De La Cruz, also known as “Cruger de Peatonales,” and Francisco Javier Roman-Bardales, also known as “Veterano de Tribus,” remain at large.  Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s tip line at (866) 347-2423 or https://www.ice.gov/webform/ice-tip-form.  Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the fugitives. 

These charges are allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  If convicted, Lopez-Larios faces a maximum sentence of life in prison.

This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13, led by Assistant United States Attorney John J. Durham of the EDNY, and comprised of U.S. Attorney’s Offices across the country, including the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; HSI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the USMS; the U.S. Bureau of Prisons; and the United States Agency for International Development, Office of Inspector General have been essential law enforcement partners and spearheaded JTFV’s investigations.

The government’s case is being prosecuted by Assistant U.S. Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell of the Criminal Section of the Office’s Long Island Division with the assistance of Automated Litigation Support Specialist Michael Compitello.

Newly Arrested Defendant in U.S. Custody:

CESAR HUMBERTO LOPEZ-LARIOS (“El Grenas de Stoners” and “Oso de Stoners”)
Age:   45

Previously Arrested Defendant in U.S. Custody:

ELMER CANALES-RIVERA (“Crook de Hollywood”)
Age:  48

FREDY IVAN JANDRES-PARADA (“Lucky de Park View” and “Lacky de Park View”)
Age:  48

Fugitive Defendants:

BORROMEO ENRIQUE HENRIQUEZ (“Diablito de Hollywood”)
Age:  45

EFRAIN CORTEZ (“Tigre de Park View” and “Viejo Tigre de Park View”)
Age:  54

RICARDO ALBERTO DIAZ (“Rata de Leewards” and “Mousey de Leewards”)
Age:  51

EDUARDO ERAZO-NOLASCO (“Colocho de Western” and “Mustage de Western”)
Age:  51

EDSON SACHARY EUFEMIA (“Speedy de Park View”)
Age:  49

JOSE FERNANDEZ FLORES-CUBAS (“Cola de Western”)
Age:  49

LEONEL ALEXANDER LEONARDO (“El Necio de San Cocos”)
Age:  44

JOSE LUIS MENDOZA-FIGUEROA (“Pavas de 7-11” and “Viejo Pavas de 7-11”)
Age:  59

HUGO ARMANDO QUINTEROS-MINEROS (“Flaco de Francis”)
Age:  51

SAUL ANTONIO TURCIOS (“Trece de Teclas”)
Age:  46

ARISTIDES DIONISIO UMANZOR (“Sirra de Teclas”)
Age:  46

E.D.N.Y. Docket No.: 20-CR-577 (JMA)

Earlier today, at the federal courthouse in Central Islip, an indictment was unsealed charging Noman Ahmed, Adnan Arshad, Rehman Diwan, Jessica Hendrickson, Jose Marte, Mohammed Saleem, Faisal Shamsi and Waqas Shamsi 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 allegedly offered and paid health care kickbacks and submitted fraudulent claims to Medicaid for ambulette services to medical appointments that were not performed, or the costs were artificially inflated. The defendants were arrested today and all but Marte will be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay. Marte will be arraigned tomorrow.

Breon Peace, United States Attorney for the Eastern District of New York, Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of 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.

“As alleged, the defendants abused the trust placed in them by Medicaid by falsely and brazenly treating this essential program like a piggy bank for their own enrichment,” stated United States Attorney Peace.  “Their transportation scam ended today with law enforcement providing the defendants a free ride to the courthouse to face serious criminal charges.  My Office will prosecute health care providers who steal from taxpayer-funded programs intended to help those in need.”

Mr. Peace also thanked the Office of the New York State Comptroller and the New York Attorney General’s Office, Medicaid Fraud Control Unit for their assistance in the case.

“HHS-OIG will continue to work with our law enforcement partners to ensure that individuals are held accountable if they attempt to exploit federal health care programs for their own greed,” stated HHS-OIG Special Agent-in-Charge Gruchacz.  “It is alleged in this case that the defendants offered illegal kickbacks and billed Medicaid improperly for millions of dollars, which can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care.”

“Healthcare fraud is not a victimless crime.  The loss created by criminals bilking the system generates a gap in funding that gets filled by law-abiding citizens paying more than their fair share.  This team of alleged criminals are charged with a multimillion dollar fraud involving health care kickbacks and false claims. While legitimate claimants continue to work through the Medicaid system, some of the alleged fraudsters purchased luxury vehicles and million-dollar homes.  This is unacceptable, and each offender will now face justice for their actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.

“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.”

As set forth in court filings, 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.  Yet 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 defendants also submitted artificially inflated claims to Medicaid.  Although there were numerous addiction treatment centers on Long Island the beneficiaries could have utilized, the defendants instructed them to order rides to addiction treatment centers in New York City and to list false addresses so they could obtain higher reimbursement rates from Medicaid for longer rides. The transportation companies owned or operated by the defendants billed Medicaid over $16 million for trips to just three addiction treatment centers in New York City.

The defendants Adnan Arshad and Mohammed Saleem used the illicit proceeds of the schemes to purchase approximately 15 additional transport vehicles for use in the scheme and to purchase multimillion-dollar homes and luxury vehicles. 

The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Adam Toporovsky and Special Assistant United States Attorney Jennifer Milito, of the Suffolk County District Attorney’s Office, are in charge of the prosecution with the assistance of Paralegal Specialist Adam Bernard. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants:

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)

Breon Peace, United States Attorney for the Eastern District of New York, Letitia James, New York State Attorney General, and Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced today a settlement agreement with a New York-based ophthalmologist, his ophthalmology practice and related entities which allegedly provided ophthalmological health care services to Brooklyn and Queens residents, many of whom were elderly or non-native English speakers.  The settlement agreement requires the defendants to pay more than $2.4 million to resolve claims that they billed or caused to be billed false claims for payment to Medicare and Medicaid for certain procedures, tests, and other ophthalmological services that were either unnecessary or could not have been performed because the ophthalmologist was not in his office. Under the terms of the agreement, these providers, including Sheldon Rabin, Sheldon Rabin, M.D., Sheldon Rabin, M.D., P.C. d/b/a New York Eye Care, will pay $2,426,144.93 to the United States to resolve claims under the False Claims Act.  The defendants have also separately agreed to pay $73,855.07 to New York State to resolve claims under New York State’s False Claims Act, for a total payment of $2.5 million.  

“As alleged, the defendants took advantage of our district's older residents and other vulnerable individuals in defrauding the Medicare and Medicaid programs for their own personal gain,” stated U.S. Attorney Peace.  “As this settlement makes clear, our Office will protect the integrity of government health care programs and pursue providers who enrich themselves through fraud.”

Mr. Peace also thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General for their assistance with the investigation.

“Doctors who exploit their patients undermine the health care system that all New Yorkers rely on,” stated New York Attorney General James.  “Dr. Rabin and his practice unjustly enriched themselves with taxpayer funds by taking advantage of their elderly and vulnerable patients, and today they are being held accountable. I thank U.S. Attorney Peace and our partners in this investigation for bringing this case to ensure New Yorkers get the high-quality care they deserve.”

“The Medicare and Medicaid fraud claims in this case involved services that were not medically necessary, which always raises a concern about potential patient harm,” stated HHS-OIG Special Agent-in-Charge Gruchacz.  “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

As alleged by the Government, from 2013 through 2016, defendants improperly submitted claims to Medicare and Medicaid for treatments that were unnecessary by manipulating patient test readings to create an appearance of a need for certain eye care services, when in fact, the patients’ test readings indicated no such need. Further, during this same time frame, the government alleged instances of services having been billed, but never actually rendered by Dr. Rabin, because he was out of the office or out of the country when the services were purportedly rendered.

The settlement includes the resolution of two civil actions brought under the qui tam or whistleblower provisions of the False Claims Act. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. As alleged in the qui tam actions, the defendants provided ophthalmological health care services to Brooklyn and Queens residents, many of whom were elderly or non-native English speakers.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

The government’s case was handled by Assistant United States Attorney Artemis Lekakis of the Office’s Civil Division.

E.D.N.Y. Docket Nos. 13-CV-1930 (HG) and 15-CV-6356 (HG)

A federal jury in Brooklyn today returned a guilty verdict against Maliek Miller, a leader of the Ninedee Gang, a violent criminal enterprise operating out of the Louis H. Pink Houses in East New York, on all counts of a second superseding indictment charging him with racketeering, conspiracy to commit murder in-aid-of racketeering, murder in-aid-of racketeering, unlawful use and possession of firearms, causing death through the use of firearms, being a felon in possession of ammunition and conspiracy to distribute and possess with intent to distribute marijuana.  The verdict followed a four-week trial before United States District Judge LaShann DeArcy Hall.  When sentenced, Miller faces a mandatory term of life in prison.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, 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 verdict.

“Today’s verdict is momentous because it holds Miller accountable for orchestrating a cowardly plot to kill a woman who bravely stood up to his Ninedee Gang, and it upholds the rule of law for the residents of the Pink Houses who just want to go about their lives and raise their children without the plague of violence and danger inflicted on them by ruthless criminals like the defendant,” stated United States Attorney Peace.  “The verdict ensures that Miller will spend the rest of his life in prison, which I hope provides some measure of solace to the family of Shatavia Walls.”

“The perceived need for revenge never justifies murder. In 2020, Maliek Miller ordered the heinous killing of Shatavia Walls - who testified against Miller's gang - to send a message to residents in the Louis H. Pink Houses not to cooperate with law enforcement. There is no place for such egregious violence in our city, especially when used in retaliation to incite fear. May today's conviction offer some closure to Shatavia Walls's family and serve as a deterrent to gangs who use violent tactics in furtherance of their criminal activity,” stated FBI Assistant Director-in-Charge Smith.

“Today’s guilty verdict is another step toward eradicating gang violence in New York City,” stated NYPD Commissioner Caban.  “The NYPD will continue to partner with the FBI and everyone at the office of the U.S. Attorney for the Eastern District to present solid cases for prosecution, to secure meaningful federal prison sentences, and to deliver justice for victims, their families, and our communities.”

As proven at trial, Ninedee Gang members are affiliated with the “5” and “6” Pink Houses apartment buildings and have engaged in ongoing gang-related violence within and outside of the New York City Housing Authority complex.  The Ninedee Gang’s main rivalry, dating back over a decade, is against the “7” and “8” buildings in the Pink Houses.  Ninedee Gang protects its turf through violence, makes money by selling drugs and committing fraud and seeks to silence anyone who they perceive to be working with law enforcement. 

The murder of former government witness, Shatavia Walls, was coordinated by Miller and other Ninedee Gang members as part of that ongoing gang rivalry.  Specifically, the victim was targeted by the Ninedee Gang because of her affiliation with the “7” and “8” buildings associated with the Makk Baller Brims gang and because she had previously testified at a federal criminal trial against a Ninedee associate in the Eastern District of New York.  Prior to her testimony, fliers had been posted around the Pink Houses stating, “Shatavia Been a Rat And She Still Ratting.”

On July 4, 2020, Ms. Walls and others were involved in a physical altercation with members of Ninedee, including Miller’s cousin, for lighting fireworks around young children.  Miller went to the scene of the altercation, called Ms. Walls a “snitch,” fought with Ms. Walls and fired a shot in the air.  Following the altercation, Miller agreed with other Ninedee Gang members to kill Ms. Walls, and set a plan to do so in motion. 

On July 7, 2020, Walls was spotted by a Ninedee Gang hit team, who chased her down a path at the Pink Houses.  She was shot numerous times by Ninedee Gang members Quintin Green and Joe Santana.  Ninedee Gang member Shakur Bey destroyed the clothing that Green and Santana wore during the shooting by throwing the items down an incinerator chute.  Ninedee Gang member Kevin Wint, who was not present at the murder, rented a hotel room at a Best Western Hotel near John F. Kennedy International Airport to provide a place where the shooters could hide out overnight.  Ms. Walls died of her injuries ten days later. 

Green, Santana, and Bey have pleaded guilty to their roles in the murder and are currently awaiting sentencing.  Wint pleaded guilty in March 2023 and was later sentenced to 110 months’ imprisonment.

The government’s case is being handled by Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Emily J. Dean, Margaret Schierberl and Irisa Chen are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and with the assistance of Intelligence Analyst Eungee Hwang and Intelligence Specialist Ashley Hinkson. 

The Defendant:

MALIEK MILLER
Age:  30
Brooklyn, New York

Defendants Who Previously Pleaded Guilty:

SHAKUR BEY (also known as “Speedy)
Age:  27
Brooklyn, New York

QUINTIN GREEN (also known as “Wild Child”)
Age:  23
Brooklyn, New York

JOE SANTANA (also known as “Baby Joe”)
Age:  20
Brooklyn, New York

KEVIN WINT (also known as “Kev G”)
Age: 30
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

A criminal complaint was filed today in federal court in Brooklyn charging Long Phi Pham, also known as “Bruce,” with conspiring with others to defraud a sports betting company (Betting Company 1) by placing “under prop” bets on a National Basketball Association (NBA) player (Player 1) in NBA games on January 26, 2024 and on March 20, 2024. Pham was arrested on Monday and made his initial appearance this afternoon before United States Magistrate Judge Cheryl L. Pollak. Pham was ordered detained pending trial. Three co-conspirators charged in the scheme remain at large.

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 arrest and charge.

“Whether on the court or in the casino, every point matters. As alleged, the defendant and his co-conspirators, as well as an NBA player, participated in a brazen, illegal betting scheme that had a corrupting influence on two games and numerous bets,” stated United States Attorney Peace. “This prosecution serves as a warning that fraud and dishonesty in professional sports will not be tolerated and those who engage in this flagrant flouting of the law will be prosecuted.”

"Long Phi Pham allegedly participated in a conspiracy to defraud an online sports betting website, encouraging an NBA player to unnecessarily withdraw himself from select games in an attempt to profit from personal bets made with this advanced, insider knowledge. These alleged actions violated the prohibition of using non-public information - eliminating the risk associated with the unpredictable nature of the betting world – an unfair advantage not afforded to other bettors. There is no 'over/under' when intentionally circumventing rules for financial gain, the FBI remains vigilant in its investigations of those who engage in such fraudulent conspiracies," stated FBI Assistant Director-in-Charge Smith.

The Betting Scheme

The NBA is a professional basketball league in North America. The NBA maintains a code of conduct for all of its players which prohibits wagering in connection with NBA games.

As alleged in the complaint, Pham and his co-conspirators placed “under prop” bets on Player 1’s performance in two NBA games, knowing in advance that Player 1 planned to withdraw from those games for purported health reasons. A “prop,” or proposition bet is a wager placed on a player’s performance, rather than the outcome of the game. For example, a betting platform could offer users a wager that a player would score more (referred to as betting the “over”) or fewer (betting the “under”) points than a certain number of points designated by the betting platform for a given game.

The January 26, 2024 Game

In early 2024, Player 1 had amassed large gambling debts to certain of the co-conspirators. Player 1 was encouraged to clear those debts by withdrawing from certain games prematurely to ensure that under prop bets on Player 1’s performance were successful. On January 22, 2024, Player 1 sustained a purported eye injury during a game. He was evaluated and diagnosed with a corneal abrasion, but was not placed on the NBA injury list. Shortly before the game on January 26, 2024 (the January 26 Game) Player 1 told the defendant that he would be removing himself early from the game, claiming that he was injured. Player 1 entered the January 26 Game midway through the first quarter. After playing just four minutes and recording zero points, three rebounds and one assist, Player 1 removed himself from the game after he complained to team officials that he had reaggravated the eye injury.

Player 1’s performance in several statistical categories during the January 26 Game was under the designated amounts set by Betting Company 1 in its prop bets related to Player 1. Thus, several bettors, including co-conspirators, who wagered the “under” on prop bets related to Player 1’s performance for the January 26 Game won those bets.
For example, a relative of a co-conspirator placed a $10,000 parlay bet through Betting Company 1 on the “under” for Player 1’s three pointers, assists and steals. As a result of Player 1 removing himself from the January 26 game, the bet was successful and the relative won $85,000 (netting a profit of $75,000). Additionally, a co-conspirator placed a $7,000 parlay bet through Betting Company 1 on the “under” for Player 1’s three pointers, points, assists and rebounds. As a result of Player 1 removing himself from the January 26 Game, the bet was successful and the co-conspirator won $40,250 (netting a profit of $33,250).

The March 20, 2024 Game

Prior to a game on March 20, 2024 (the March 20 Game), Pham and his co-conspirators discussed in a Telegram group chat that Player 1 would be removing himself early from the game, claiming that he felt ill. They agreed to share the profits for money won on successful under bets placed on Player 1, and that Pham would receive approximately 24% of the profits. On March 20, 2024, Pham and his co-conspirators met at a casino in Atlantic City, New Jersey, and placed several bets on Player 1. After playing just three minutes and recording zero points, three rebounds and zero assists, Player 1 removed himself from the March 20 Game, complaining he felt ill. Several bettors, including the co-conspirators, who wagered the under on prop bets related to Player 1’s performance won those bets. In total, the defendant and his co-conspirators netted over $1 million in profits.

On April 4, 2024, in a group chat between Player 1 and the conspirators, Player 1 wrote to the group that they “might just get hit w a rico,” referring to a racketeering charge, and asked if the group chat participants had “delete[d] all the stuff” from their personal cell phones.

The charge in the complaint is based on allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of wire fraud, the defendant faces up to 20 years in prison.

The government’s case is being handled by the Office’s Business and Securities Fraud Section and General Crimes Sections. Assistant United States Attorneys Kaitlin Farrell, Benjamin L. Weintraub and David Berman are in charge of the prosecution.

The Defendant: LONG PHI PHAM (also known as “Bruce”)
Age: 38
Brooklyn, New York

E.D.N.Y. Docket No.: 24-MJ-404

Earlier today, a ten-count indictment was unsealed charging the defendant Alfonso Forney with robbery of a postal worker, a related firearms offense, mail theft related offenses, wire fraud, bank fraud, access device fraud and aggravated identity theft.  The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Joseph A. Marutollo at the federal courthouse in Brooklyn.

Breon Peace, United States Attorney for the Eastern District of New York and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS) announced the charges.

“The safety of our mail carriers is essential to assuring the unobstructed flow of goods, checks and information through the United States Postal Service,” stated United States Attorney Breon Peace.  “The defendant’s pattern of violent behavior endeavored to turn this vital system into his own personal pipeline for theft and fraud.”

USPIS Inspector-in-Charge Daniel B. Brubaker said, “Our highest priority as postal inspectors is the safety of our employees, especially our letter carriers who are out on the streets every day delivering for the American public. They deserve to be protected from violent criminals who prey on these hardworking public servants that serve our communities. Today’s arrest of this alleged armed robber and mail thief is proof of this fact: postal inspectors working alongside our law enforcement partners in the NYPD, and the U.S. Attorney’s Office, Eastern District of New York, will relentlessly pursue violent criminals wherever they lurk. No matter how long it takes, no matter where they hide, we will find them and bring them to justice for their alleged crimes.”     

As alleged in the indictment and other court papers, the defendant engaged in both a robbery and mail theft scheme as well as an identity theft scheme. 

With respect to the robbery and mail theft scheme, between January 2023 and December 2023, the defendant and others committed gunpoint robberies of United States Postal Service mail carriers to obtain arrow keys, which are universal keys that allow mail carriers to access various postal boxes within a certain geographic area.  The defendant and others used the keys to steal mail, including checks from the mail, which were subsequently deposited into the defendant’s bank accounts or otherwise cashed.  

With respect to the identity theft scheme, between January 2024 and March 2024, the defendant misrepresented himself as another individual (the “Victim”) to fraudulently gain access to the Victim’s bank accounts.  He did so by changing the address on the Victim’s driver’s license to his own address, and then ordering a duplicate of that driver’s license to his residence.  After gaining access to the Victim’s bank accounts, the defendant withdrew at least $245,000 and deposited a portion of the funds into his own bank accounts.  The defendant also used the Victim’s identity to obtain an automobile loan for approximately $25,000, which the defendant used to purchase a vehicle in the Victim’s name.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted, the defendant faces up to 39 years’ 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, with the assistance of Paralegal Specialist Stephanie Heyward.

The Defendant:

ALFONSO FORNEY
Age: 45
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-220 (KAM)

# # #

Earlier today, in federal court in Brooklyn, Jean Fremont, also known as “Juno” and “Bigga Twirl,” was sentenced by United States District Judge William F. Kuntz II to 35 years in prison for his participation in three shootings occurring on November 7 and 9, 2020, committed by members and associates of the No Love City (NLC) gang, a subset of the Flatbush-based Folk Nation Gangster Disciples gang (GD).  Fremont was convicted by a jury in November 2022 on eight counts of a superseding indictment charging him with conspiracy to murder rival gang members in-aid-of racketeering, two counts of attempted murder in-aid-of racketeering, two counts of assault in-aid-of racketeering, one count of attempted assault in-aid-of racketeering and two counts of discharging a firearm during a crime of violence in connection with multiple shootings in Brooklyn in November 2020. 

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

“Fremont will spend decades in prison for attempting to murder individuals for the sole purpose of defending his gang’s reputation,” stated United States Attorney Peace.  “Incarcerating Fremont and his co-defendants for a long period of time for their ruthless acts of violence and complete disregard for human life will serve to protect the community while sending a message of deterrence to others who foolishly seek status by choosing to join violent gangs.”

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office and the New York City Police Department for their assistance in the case.

As proven at trial, Fremont and his co-defendants are all members or associates of NLC.  Fremont was also a leader of NLC, having served on its five-member “Steering Committee.”  The November 2020 shootings, in which several individuals were injured, were committed on behalf of GD in retaliation for the theft of a gold chain and pendant from Fremont by rival gang members following the filming of a music video in Brooklyn.  On November 7, 2020, a chain with a pendant featuring the letters “SPMB” that was closely associated with NLC’s leader was stolen from the defendant by gang rivals.  In response, members of NLC retaliated by engaging in a series of shootings in rival gang territory.  In the resulting violence, three victims were shot and survived their wounds.

Seven other members and associates of GD that were charged with Fremont have been convicted of crimes including conspiracy to commit murder, attempted murder, assault and firearms-related offenses for their conduct related to the November 2020 shootings.  Lorenzo Bailey was sentenced to 34 years’ imprisonment; Quincy Battice was sentenced to 32 years’ imprisonment; Oluwagbenga Agoro was sentenced to 30 years’ imprisonment; Hans Destine was sentenced to 20 years’ imprisonment; Deryck Thompson was sentenced to 210 months’ imprisonment; Ricardo Hapburn was sentenced to 135 months’ imprisonment; and McKoy Lima was sentenced to 108 months’ imprisonment.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Jonathan Siegel, Dana Rehnquist and Sophia Suarez are in charge of the prosecution. 

The Defendant:

JEAN FREMONT (also known as “Juno” and “Bigga Twirl”)
Age:  32
Brooklyn, New York

Other Defendants Convicted at Trial:

OLUWAGBENGA AGORO (also known as “Gee Banga”)
Age:  24
Brooklyn, New York

LORENZO BAILEY (also known as “Renzo” and “St. Clair Bailey”)
Age:  35
Brooklyn, New York

QUINCY BATTICE (also known as “Hush Dinero” and “George Ayala”)
Age:  35
Brooklyn, New York

Defendants Who Pleaded Guilty

HANS DESTINE (also known as “YL Flocks”)
Age:  32
Brooklyn, New York

RICARDO HEPBURN (also known as “Riko Floxks”)
Age:  22
Brooklyn, New York

MCKOY LIMA (also known as “Mak”)
Age:  29
Brooklyn, New York

DERYCK THOMPSON (also known as “Benzo,” “DBenzo” and “Kenzie”)
Age: 25
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-293 (S-1) (WFK)

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Rashawn Russell, a former investment banker, who was formerly a registered broker with the Financial Industry Regulatory Authority, was sentenced by United States District Judge Hector Gonzalez to 41 months in prison for a cryptocurrency fraud scheme that resulted in approximately $1.5 million in investor losses and for a separate access device fraud scheme. Russell was also ordered to pay more than $1.5 million in restitution to victims of his fraud scheme. Russell pleaded guilty in September 2023 to wire fraud and access device fraud.

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 Eric Shen, Inspector-in-Charge, United States Postal Inspection Service, Criminal Investigations Group (USPIS), announced the sentence.

From November 2020 to August 2022, Russell engaged in a scheme to induce multiple victims to invest with him based on false promises that he would use their funds for cryptocurrency investments and that they would earn large—and sometimes guaranteed—returns. Russell misappropriated much of the victims’ assets and used them for his personal benefit, to gamble, and to repay other investors. Russell also repeatedly failed to repay the victims’ principal investments and failed to provide them with promised rates of return. After some victims requested to be repaid their investments, Russell falsely represented that he had wired them money.

In a separate scheme, between September 2021 and June 2023, Russell fraudulently obtained at least 97 credit/debit cards and at least 43 identification cards in the names of third parties, often from gym lockers in New York and New Jersey. Russell obtained these devices with the intent to use them to complete unauthorized transactions.

Assistant United States Attorney Drew Rolle of the Eastern District of New York, Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section prosecuted the case. 

The Defendant:

RASHAWN RUSSELL
Age:  28
Brooklyn, New York

E.D.N.Y Docket No.: 23-CR-152 (HG)

A former investment banker, who was formerly a registered broker with the Financial Industry Regulatory Authority, was sentenced today to three years and five months in prison for a fraud scheme that resulted in approximately $1.5 million in investor losses and for a separate access device fraud scheme.

According to court documents, from November 2020 to August 2022, Rashawn Russell, 28, of Brooklyn, New York, engaged in a scheme to defraud multiple investors by inducing them to invest with him based on false promises that, among other things, he would use their funds for cryptocurrency investments and that the investors would earn large—and sometimes guaranteed—returns from those investments. Russell misappropriated much of the investors’ assets and used them to fund personal expenses, to gamble, and to repay other investors. Russell also repeatedly failed to repay investors’ principal investments and failed to provide investors with promised rates of return. After certain investors requested to be repaid their investments, Russell also falsely represented that he had wired the money to them.

In a separate fraud scheme, between September 2021 and June 2023, Russell fraudulently obtained at least 97 credit and debit cards and at least 43 identification cards in the names of third parties, often from gym lockers in New York and New Jersey. Russell used the stolen card information to complete unauthorized transactions, including opening online gambling accounts and making fraudulent purchases.

Russell was also ordered to pay more than $1.5 million in restitution to victims of his cryptocurrency fraud scheme. Russell pleaded guilty in September 2023 to wire fraud and access device fraud.

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 Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.

USPIS investigated the case.

Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Drew Rolle for the Eastern District of New York prosecuted the case.

WASHINGTON – The Justice Department announced yesterday that the Suffolk County Police Department (SCPD) has achieved sustained compliance with provisions of its settlement agreement with SCPD, including requirements concerning tracking and trending hate crimes and hate incidents, investigating allegations of police misconduct and development of policies and training. As a result, the department has terminated those provisions of the settlement agreement.

“The County and its Police Department have made significant progress towards ensuring that all Suffolk County residents benefit from constitutional policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Police Department has improved the tracking of hate crimes, is strengthening the handling of internal affairs investigations and has improved the way it handles complaints of discriminatory policing.  This progress demonstrates that meaningful policing reform and change can be achieved through our work. The Justice Department is committed to collaboratively working with the community, Suffolk County officials and the police department to ensure constitutional, fair and nondiscriminatory policing for all County residents. Residents across Suffolk County deserve nothing less.”

“We are pleased to see the Suffolk County Police Department’s progress in fulfilling significant requirements of the police reform agreement to help ensure fair and equitable policing and make the County better and safer for its residents and visitors,” said U.S. Attorney Breon Peace for the Eastern District of New York. “By terminating the areas of the agreement where reform efforts have been successful, we can focus on the areas that require additional attention. We look forward to working together to help the Suffolk County Police Department successfully achieve the reforms required by the remaining areas of the agreement.”

SCPD has made substantial changes in reaching compliance with provisions of the police reform agreement that the Justice Department is terminating, including:

• SCPD provides annual training on responding to, investigating and charging hate crimes.
• SCPD implemented a mapping system to track and analyze hate crimes and hate incidents. These maps are available to the public on SCPD’s website.
• SCPD improved its systems for reporting allegations of discriminatory policing and accepting third-party complaints of discrimination.
• Members of the public can now submit complaints of bias to any part of the police department — the hate crimes unit, internal affairs, any officer and any precinct.
• SCPD improved the quality of internal affairs investigations. 
• SCPD now tracks civilian complaints and internal investigations by the nature of the allegation, the status of the investigation and how it resolved the investigation. This tracking allows SCPD to evaluate trends and identify patterns of problematic behavior.
• SCPD has developed and updated a number of policies, which are available on SCPD’s website in English and Spanish.

The Civil Rights Division and U.S. Attorney’s Office for the Eastern District of New York entered an agreement with Suffolk County in January 2014 to ensure that SCPD provides fair and equitable policing services to all members of the Suffolk County community, including the Latino community.

In determining that SCPD has achieved and sustained full and effective compliance with significant portions of the agreement, the United States relied on its own independent evaluations of SCPD’s compliance.

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Donna Ingram with wire fraud, disaster relief fraud, and theft of public funds relating to her 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.  Ingram was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara.  

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); Patrick J. Freaney, Special Agent-in-Charge, United States Secret Service (USSS); Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the SBA, Eastern Region Office (SBA-OIG); Edward A. Caban, Commissioner, New York City Police Department (NYPD); and Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of the Inspector General, Northeast Region (DOL-OIG), announced the arrest and charges. 

“As alleged, the defendant made a business out of defrauding the government by falsely claiming that she and others needed government loan benefits to pay their employees during the pandemic. This money was meant to help businesses weather the pandemic.  In reality, the defendant was lining her own pockets,” stated United States Attorney Peace.  “This Office will continue prosecuting those who took advantage of the COVID crisis and stole funds from vitally important government relief programs.”

“Donna Ingram is accused of spearheading a scheme that defrauded the United States government of over $3.2 million in relief funds meant for the well-meaning public during a time when their lives were in unparalleled crisis. The defendant’s alleged crimes were anything but victimless, and robbed small businesses — the backbone of this country — of critical resources. HSI New York stands at the forefront of investigating financial crimes, and will pursue justice on behalf of New Yorkers regardless of how much time has passed,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “I commend our state and local law enforcement partners for their exceptional collaboration that resulted in today’s arrest.”

“Bilking a loan program that served as a lifeline to businesses experiencing distress during the pandemic is simply unconscionable," said Patrick J. Freaney, Special Agent-in-Charge, United States Secret Service (USSS).  "While our nation has moved past the pandemic, the United States Secret Service remains steadfast in its commitment to holding these alleged fraudsters accountable. I want to thank our many law enforcement partners for their seamless collaboration in this important and ongoing work.”

“Abusing the Paycheck Protection Program, which was established to support struggling small businesses during the pandemic, for personal gain is inexcusable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Our office is dedicated to safeguarding the integrity of SBA programs and ensuring that individuals who commit fraud are held accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

“This indictment underscores law enforcement’s ongoing commitment to ensuring that only people and businesses truly in need used public resources earmarked for relief programs during the pandemic,” stated NYPD Commissioner Caban.  “The NYPD will continue to assist our federal partners in any of their investigations related to that grave time, with the goal of protecting taxpayer funds and holding all alleged fraudsters accountable for their actions.”

“An important part of the mission of the U.S Department of Labor, Office of Inspector General is to investigate allegations of pandemic-related fraud. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.

As set forth in court filings, between May 2020 and May 2021, Ingram submitted at least 27 PPP loan applications (the “Subject Applications”) on behalf of her own companies as well as at least 22 other businesses (the “Subject Businesses”).  The Subject Applications contained false information about the Subject Businesses, including false claims about their revenue, number of employees, payroll costs, and intended use of the loan proceeds.  For example, for one business, referred to in the Indictment as Subject Business-3, Ingram submitted two separate applications for loans, one which falsely claimed that the business had earned approximately $950,950 in 2019 and another which falsely claimed that the same business had earned approximately $820,000 in 2019.  Subject Business-3 received two PPP loans for $150,000 each and its owner paid Ingram approximately $50,500 in kickbacks.  In total, the Subject Businesses received loans in the amount of approximately $3.28 million and Ingram received kickbacks totaling at least $430,000 for her preparation and submission of the fraudulent Subject Applications.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Ingram faces up to 20 years’ 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:

DONNA INGRAM  
Age:  50
Freeport, Long Island

E.D.N.Y. Docket No. 24-CR-214 (HG)

The Justice Department announced today that the Suffolk County, New York, Police Department (SCPD) has achieved sustained compliance with provisions of its settlement agreement with SCPD, including requirements concerning tracking and trending hate crimes and hate incidents, investigating allegations of police misconduct and development of policies and training. As a result, the department has terminated those provisions of the settlement agreement.

“The County and its Police Department have made significant progress towards ensuring that all Suffolk County residents benefit from constitutional policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Police Department has improved the tracking of hate crimes, is strengthening the handling of internal affairs investigations and has improved the way it handles complaints of discriminatory policing. This progress demonstrates that meaningful policing reform and change can be achieved through our work. The Justice Department is committed to collaboratively working with the community, Suffolk County officials and the police department to ensure constitutional, fair and nondiscriminatory policing for all County residents. Residents across Suffolk County deserve nothing less.”

“We are pleased to see the Suffolk County Police Department’s progress in fulfilling significant requirements of the police reform agreement to help ensure fair and equitable policing and make the County better and safer for its residents and visitors,” said U.S. Attorney Breon Peace for the Eastern District of New York. “By terminating the areas of the agreement where reform efforts have been successful, we can focus on the areas that require additional attention. We look forward to working together to help the Suffolk County Police Department successfully achieve the reforms required by the remaining areas of the agreement.”

SCPD has made substantial changes in reaching compliance with provisions of the police reform agreement that the Justice Department is terminating, including:

• SCPD provides annual training on responding to, investigating and charging hate crimes.
• SCPD implemented a mapping system to track and analyze hate crimes and hate incidents. These maps are available to the public on SCPD’s website.
• SCPD improved its systems for reporting allegations of discriminatory policing and accepting third-party complaints of discrimination.
• Members of the public can now submit complaints of bias to any part of the police department — the hate crimes unit, internal affairs, any officer and any precinct.
• SCPD improved the quality of internal affairs investigations.
• SCPD now tracks civilian complaints and internal investigations by the nature of the allegation, the status of the investigation and how it resolved the investigation. This tracking allows SCPD to evaluate trends and identify patterns of problematic behavior.
• SCPD has developed and updated a number of policies, which are available on SCPD’s website in English and Spanish.

The Civil Rights Division and U.S. Attorney’s Office for the Eastern District of New York entered an agreement with Suffolk County in January 2014 to ensure that SCPD provides fair and equitable policing services to all members of the Suffolk County community, including the Latino community.

In determining that SCPD has achieved and sustained full and effective compliance with significant portions of the agreement, the United States relied on its own independent evaluations of SCPD’s compliance.

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about civil rights enforcement at the U.S. Attorney’s Office for the Eastern District of New York, including the Office’s Civil Rights Division work, is available at www.justice.gov/usao-edny/civil-rights.

Earlier today, at the federal courthouse in Brooklyn, Qing Ming Yu, also known as “Allen,” and Zhe Zhang, also known as “Zack,” were sentenced by United States District Judge Carol Bagley Amon to mandatory life imprisonment for their roles in the February 12, 2019 killing of 31-year-old Xin “Chris” Gu outside a karaoke bar in Queens.  In October 2023, following a two-week trial, a federal jury found the defendants guilty of murder-for-hire and murder-for-hire conspiracy. As part of the sentence, the Court ordered the defendants to pay $1,035,000 in restitution to the victim’s family.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, 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 sentences.

“Allen Yu set out to kill Xin Gu because he started a rival business and Zhang agreed to carry out the execution-style murder without hesitation,” stated United States Attorney Peace.  “Driven by greed and revenge, they hired a hitman to commit a brutal murder of a young man, traumatizing the victim’s family as well as the Flushing community.  The defendants will spend the rest of their lives behind prison walls for this premediated murder.  I hope today’s sentences bring some measure of closure to Xin Gu’s family.” 

“Threatened by Xin Gu’s entrepreneurial skills, Allen Yu sought revenge and unwarranted retribution against his former employee. After securing Zhang and a hitman as accomplices to his calculated plot, the trio unjustly ended the life of a promising young businessman. Today’s lifelong sentences serve as a just punishment for two individuals who deemed cold-blooded murder as an acceptable response for slighted feelings,” stated FBI Assistant Director-in-Charge Smith.

“Today’s sentences bring with them some satisfaction to the dedicated investigators who worked on this horrific case and, hopefully, a modicum of relief to the family and friends of the victim,” stated NYPD Commissioner Caban.  “Life in prison is an appropriate outcome for the crimes these men coldly carried out. I commend and thank our NYPD investigators for their meticulous work and our partners at the office of the U.S. Attorney for the Eastern District of New York for their diligent prosecution.”

Allen Yu was the president of Amaco, a multi-million-dollar construction company that renovated apartments in New York City.  In 2015, Xin Gu joined Amaco as a project manager.  Although Amaco’s business nearly quadrupled after he joined the company, Xin Gu became concerned about the company’s financial viability and resigned in 2018 to start his own property development company called KG Management.  After Xin Gu’s departure, several clients and employees also cut ties with Allen Yu’s business.  Multiple companies took their lucrative projects from Amaco to KG Management, including one project valued at $1 million.  Enraged at Xin Gu’s perceived disloyalty, Allen Yu hired Zhe Zhang and another co-conspirator to kill Xin Gu in exchange for payment.  Zhang in turn hired another co-conspirator, Antony Abreu, to act as the shooter in carrying out the murder. 

On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing. After that dinner, Xin Gu and a smaller group went to a karaoke bar, Grand Slam KTV, on Fowler Avenue.  The hit team learned of the party and with Zhe Zhang serving as the getaway driver, Abreu walked up to the victim and shot him multiple times as he waited for an Uber, killing him.  Over the next three months, Allen Yu paid a co-conspirator $150,000 and Zhe Zhang $30,000 for the murder.

Abreu was convicted of murder-for-hire and murder-for-hire conspiracy following a two-week trial in April 2024 and is awaiting sentencing.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Nadia E. Moore, Gabriel Park and Eric Silverberg are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Legal Assistant Thomas “Cole” Englert. 

The Defendants:

QING MING YU (also known as “Allen”)
Age:  56
Oyster Bay, New York

ZHE ZHANG (also known as “Zack”)
Age:  36
Arcadia, California and Flushing, New York

E.D.N.Y. Docket No. 22-CR-208 (CBA)

Earlier today, in federal court in Central Islip, Marlon Thompson was sentenced by United States District Judge Joan M. Azrack to 30 years in prison for distribution of fentanyl causing the death of a young Long Island man, conspiracy to distribute controlled substances on Long Island, and being a felon in possession of firearms.  Thompson was found guilty on all counts following a December 2022 jury trial.  

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Robert Waring, Acting Police Commissioner, Suffolk County Police Department (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the sentence.

“Today, Thompson was held accountable for the large quantities of fentanyl he distributed all over Suffolk County which had a devastating impact on the community, including the tragic poisoning death of a young man on Long Island,” stated United States Attorney Peace.  “This Office, together with our federal and local partners, will continue to work tirelessly to prosecute those who contribute to this epidemic.”

"Today’s sentencing reflects the consequences to those who manufacture and distribute lethal narcotics, while tearing our communities apart” stated DEA New York Division Special Agent in Charge Frank Tarentino. “We will continue to work with our law enforcement partners in making sure those responsible for poisoning our communities bear the heavy burden of the lives they have destroyed.”

“The lethalness of fentanyl is not a secret, and yet, this defendant continued to distribute the deadly drug at the expense of others to make a profit,” Suffolk County Police Acting Commissioner Robert Waring said. “We will continue to work with our law enforcement partners to stem the flow of deadly opioids.”

"Opioid overdose deaths are at crisis levels in the United States and here in Suffolk County, where at least one of our residents dies every day from a fentanyl overdose. I appreciate the help from our federal partners at the Eastern District and the DEA in combating this scourge and I hope that this sentence brings some measure of closure to the family of Mr. Koenig," stated Suffolk County D.A. Raymond A. Tierney.

As proven at trial, from January 2017 through May 2019, the defendant conspired to distribute fentanyl, heroin and cocaine base throughout Suffolk County.  On Christmas Day in 2018, the defendant supplied fentanyl to the victim, Freddy Koenig, who suffered a fatal overdose at his parents’ home in Selden, New York.  The defendant continued supplying fentanyl, heroin, and crack in Suffolk County for months after Koenig’s death.

When Thompson was arrested, law enforcement recovered fentanyl and drug packaging materials from his basement bedroom, and also seized three illegal guns, including a sawed-off shotgun, and ammunition from Thompson’s storage unit. The government’s evidence included testimony from Thompson’s co-conspirators, text messages between the defendant and drug dealers discussing their illicit business, drug paraphernalia, and thousands of dollars of bundled U.S. currency derived from the drug sales seized from the defendant’s residence.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Samantha Alessi, Gabriel Park and Catherine M. Mirabile are in charge of the prosecution, with the assistance of Paralegal Specialist Adam Bernard.

The Defendant:

MARLON THOMPSON
Age: 42
Selden, New York

E.D.N.Y. Docket No. 19-CR-596 (S-1) (JMA)

Earlier today, in federal court in Brooklyn, Qawon Allen, also known as “40” and “Phorty Wap,” was sentenced by United States District Judge Kiyo A. Matsumoto to 140 months in prison for assault in-aid-of-racketeering in connection with his role in the shooting and attempted murder of a rival.  Allen pleaded guilty to the charges in May 2022.  Today’s sentence will be served consecutive to the seven-year term of imprisonment imposed earlier this year by United States District Judge Nicholas G. Garaufis for brandishing a firearm in furtherance of a crime of violence.  Allen pleaded guilty to the firearm charge in January 2020.

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, announced the sentence.

Allen was a long-time member of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang that operated primarily in East New York.  The gang made money through fraud and drug dealing, particularly sales of crack cocaine and marijuana.  The gang murdered or attempted to murder its rivals to maintain its power and referred to East New York as “Gun Town” for the level of violence its members and associates committed and perpetuated.  Allen helped track down rivals so E.A.M members could shoot them.

In United States v. Allen, Docket No. 19-CR-128, Allen pleaded guilty to robbing a drug dealer at gunpoint.  In United States v. Allen, Docket No. 20-CR-213, Allen pleaded guilty to his role in the shooting of a victim.  Specifically, Allen alerted the gang’s so-called “Godfather” Quandel Smothers and another member of E.A.M. to the victim’s location so that the victim could be murdered.  Allen also provided the location of a hidden firearm that others could pick up to use in the shooting. 

 All other members and associates of E.A.M. that were charged with Allen have been convicted of crimes including conspiracy to commit murder, using firearms in connection with murder, assault, and interstate stalking causing life threatening injury and sentenced for their conduct.  Tyshawn Corbett was sentenced to 45 years’ imprisonment; Smothers was sentenced to 23 years’ imprisonment after being convicted at trial; Marlon Bristol was sentenced to 135 months’ imprisonment; Devon Bristol was sentenced to 80 months’ imprisonment; and Desmonn Beckett was sentenced to 64 months’ imprisonment. 

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Jonathan Siegel, Genny Ngai, and Matthew Galeotti are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.

The Defendant:

QAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 28
Brooklyn, New York

Defendant Convicted at Trial:

QUANDEL SMOTHERS (also known as “Chucky”)
Age: 32
Brooklyn, New York

Defendants Who Pleaded Guilty

TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New York

DESMONN BECKETT (also known as “Des”)
Age: 30
Brooklyn, New York

DEVON BRISTOL (also known as “D”)
Age: 32
Brooklyn, New York

MARLON BRISTOL (also known as “Marlo”)
Age: 35
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-213 (KAM); E.D.N.Y. Docket No. 19-CR-128 (NGG)

BROOKLYN, NY – Earlier today in federal court in Brooklyn, Vladislav Kotlyar was sentenced by United States District Judge William F. Kuntz II to 33 months in prison and ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million for his role in a scheme to fraudulently obtain specialty baby formula.  Kotlyar pleaded guilty to mail fraud in March 2023.

Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the sentence.

Kotlyar submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed baby formula and forged those records to obtain specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by impersonating the infants’ parents, to falsely claim that shipments were damaged or contained the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula. A portion of Kotlyar’s scheme occurred during a national shortage of infant formula. 

Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case. Assistant United States Attorney Claire S. Kedeshian of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

VLADISLAV KOTLYAR
Age:  45
Staten Island, New York

E.D.N.Y. Docket No. 23-CR-75 (WFK)

A New York man was sentenced today to two years and nine months in prison and ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million for his role in a scheme to fraudulently obtain specialty baby formula. 

According to court documents, Vladislav Kotlyar, 45, of Staten Island, submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed baby formula and forged those records with respect to the type and amount of formula prescribed to obtain high volumes of expensive specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by impersonating the infants’ fathers, to falsely claim that shipments were damaged or contained the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula. A portion of Kotlyar’s scheme occurred during a national shortage of infant formula. 

Kotlyar previously pleaded guilty in March 2023 to mail fraud. 

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 Michael Nordwall of the FBI’s Criminal Investigative Division; and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.

The FBI New York Field Office investigated the case. 

Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Claire S. Kedeshian for the Eastern District of New York assisted with forfeiture. 

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 the Department of Health and Human Services Office of Inspector General, 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.

Yesterday, in federal court in Brooklyn, Thomas John Sfraga, also known as “T.J. Stone,” pleaded guilty to an information charging him with wire fraud.  The proceeding was held before Chief United States Magistrate Judge Lois Bloom.  When sentenced, Sfraga faces a maximum sentence of 20 years’ imprisonment, as well as restitution of over $1.33 million.

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 guilty plea.

“For years, Sfraga brazenly lied to friends, neighbors and investors to swindle over $1.3 million of their hard-earned life savings,” stated United States Attorney Peace.  “This Office will continue to hold fraudsters accountable and achieve justice for victims throughout the Eastern District of New York and across the United States.”

As set forth in the information and court filings, from at least 2019 to 2022, Sfraga held himself out as the owner and principal of multiple businesses, including Vandelay Contracting Corp. and Build Strong Homes LLC.  In the television show “Seinfeld,” the character George Constanza falsely claimed to have interviewed for a job with the fictional company Vandelay Industries.  The defendant held himself out as ‘T.J. Stone,’ a serial entrepreneur with experience in real estate development, media relations, podcasting and cryptocurrencies, including acting as the host or emcee of cryptocurrency events in New York.

Sfraga defrauded over a dozen victims, including victims in Brooklyn, Staten Island and Long Island.  Sfraga convinced victims to loan him monies for, or to invest in, multiple fraudulent investments including purchasing, renovating and “flipping” homes.  On one occasion, Sfraga convinced a victim to lend him $100,000 in cash as start-up costs for a non-existent major construction project.  On yet another occasion, Sfraga convinced a victim to invest in a fictitious cryptocurrency “virtual wallet.”  He promised the victims returns on their investments as high as 60% in three months.  In reality, however, Sfraga converted the monies to his own benefit, to pay expenses, and to pay earlier victims and business associates.   

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney John Vagelatos is in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates. 

The Defendant:

THOMAS JOHN SFRAGA (also known as “T.J. Stone”)
Age:  55
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-194 (FB) (LB)

Jeffrey Slothower, a former registered investment adviser and founder of the New York investment advisory firm Battery Private, Inc. (Battery Private), was convicted today by a federal jury in Central Islip of all three counts of an indictment charging him with wire fraud, investment adviser fraud and money laundering in connection with a scheme to misappropriate more than $1 million from clients.  The verdict followed a three-day trial before United States District Judge Gary R. Brown. When sentenced, Slothower faces up to 30 years in prison.

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 verdict.

“This case was about greed and betrayal of clients who trusted the defendant and thought their money was safely invested with him,” stated United States Attorney Peace.  “Slothower tricked those clients so he could steal their money and lavish himself with a new car, high-end clothing and jewelry, and a membership at an East End country club.  Protecting investors from fraudsters like the defendant has always been a priority of this Office and today’s verdict underscores our resolve to vigorously prosecute those who enrich themselves at the expense of victims.”

Mr. Peace thanked the Special Agents of the Federal Bureau of Investigation, New York Field Office, for their outstanding investigative work on the case.

As proven at trial, Slothower orchestrated a scheme to misappropriate more than $1 million from current and prospective clients.  Specifically, while operating Battery Private, Slothower solicited business from Victim-1 and Victim-2, a couple from California whose money Slothower had managed at another financial services firm where he was previously employed.  Slothower promised the victims he could beat any rate of return they were receiving and do so without market risk.  In 2017, he offered to invest Victim-1’s money into what Slothower described as bonds backed by homeowner’s association fees (the “HOA Bonds”), which would pay an eight percent return.  

Slothower sent Victim-1 wiring instructions for his investment and attached a document that made additional representations about Victim-1’s purported investment, claiming that Victim-1’s money would be held in the “capital reserves” of Battery Private.  Between January 25, 2017 and January 27, 2017, Victim-1 sent more than $500,000 to Slothower at Battery Private to be invested in the purported HOA Bonds.  Instead of investing in HOA Bonds or holding the funds in “capital reserves,” Slothower funneled the money into his personal bank accounts, and then used those funds to purchase a $125,000 Mercedes Benz SUV, and membership dues at Long Island National Golf Club, a private East End country club.  To further the fraudulent scheme, Slothower made payments to Victim-1 that were falsely represented as quarterly distributions from Victim-1’s “investment.”

Later, Slothower solicited Victim-1 to invest additional moneys, including funds controlled by Victim-1’s spouse, who was then a Battery Private client.  Enticed by the supposedly steady rate of return, Victim-2 agreed to invest in the same purported HOA Bonds, and in December 2017, Victim-2 sent more than $500,000 to Slothower at Battery Private.  However, like Victim-1, Victim-2’s money was not invested in HOA Bonds or held in “capital reserves” as represented by Slothower.  Instead, he used that money to pay tens of thousands of dollars in personal credit card debt traced to an approximately $6,500 Chanel purse, an approximately $13,000 Rolex watch, and more than $11,000 in Ralph Lauren clothing, among other things.  To further the fraudulent scheme, Slothower made payments to Victim-2 that were falsely represented as quarterly distributions from Victim-2’s investment.

In June 2018, still unaware of the fraudulent scheme, Victim-1 made an additional investment of approximately $84,000 into the purported HOA Bonds.  Slothower used Victim-1’s money to make purported quarterly payments to Victim-1 and Victim-2 that were falsely represented as their investment returns and to pay membership dues at the private golf club.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Office’s Business and Securities Fraud Section. Assistant U.S. Attorneys Drew G. Rolle, Anthony Bagnuola, Adam Toporovsky and Benjamin Weintraub are in charge of the prosecution, with the assistance of Paralegal Specialists Adam Bernard and Michael Compitello.

The Defendant:

JEFFREY SLOTHOWER
Age:  46
Southampton, New York

E.D.N.Y. Docket No. 21-CR-602 (GRB)

Earlier today, at the federal courthouse in Central Islip, a three-count indictment was unsealed charging Devin Anthony Magarian with conspiracy to distribute oxycodone and possessing oxycodone with intent to distribute.  Magarian is charged with orchestrating a years’ long conspiracy to commandeer physicians’ e-prescribing privileges in order to divert Oxycodone and other controlled substances into the illicit market. 

Breon Peace, United States Attorney for the Eastern District of New York, Anne T. Donnelly, District Attorney of Nassau County, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA) and Patrick Ryder, Nassau County Police Commissioner, announced the indictment and charges.

“As alleged, Magarian led the conspiracy to pirate the digital prescription pads of physicians, putting thousands of lives at risk through this illicit diversion scheme,” stated United States Attorney Breon Peace.  “This Office will continue doing its part to find and hold responsible individuals at all levels who, motivated by greed, perpetuate the opioid and prescription drug epidemic with careless disregard for the safety of the communities in this district and nationwide.” 

United States Attorney Peace thanked the New York State Bureau of Narcotic Enforcement for their significant contributions to the investigation.

“Devin Magarian was the primary facilitator of a complex narcotics conspiracy, coordinating drug-running operations in dozens of states across the county and maximizing profits for the illicit venture,” said Nassau County District Attorney Anne T. Donnelly. “Tens of thousands of prescriptions for narcotics and other controlled substances were filled in Nassau County and beyond at this defendant’s direction using pirated e-prescribing credentials of unwitting doctors, putting our communities at risk. Magarian was an important cog in a much larger machine – one that we will dismantle piece by piece with our federal partners at the U.S. Attorney’s Office and the Drug Enforcement Administration.”

“The indictment against Devin Anthony Magarian for conspiracy to distribute oxycodone through a diverted e-prescription scheme and distribute on the illicit market for the purpose of putting profits above public health is not only reckless and dangerous, but unconscionable” stated DEA New York Special Agent-in-Charge Frank Tarentino. “Trading in lives for profit is a dark path and we will continue to work with our law enforcement partners to make sure those responsible face justice.”

As alleged in the indictment, in or around and between December 2022 and March 2024, the defendant was the key driver of a wide-ranging conspiracy in which he and his associates surreptitiously commandeered the e-prescribing credentials of doctors throughout the country, and then used those compromised accounts to issue and fill thousands of prescriptions for narcotics and other controlled substances, including Oxycodone and Promethazine with Codeine syrup, commonly known as Codeine, throughout Nassau County and nationwide.  These highly abused substances were then diverted into the illicit market, where the defendant often advertised them for sale to street-level resellers and buyers on his social media accounts and elsewhere. 

Over the course of this investigation, law enforcement identified dozens of medical practitioners who experienced a similar series of occurrences which ultimately resulted in the defendant and his associates issuing and filling thousands of illicit prescriptions in the names of countless fictitious patients. Many of the physicians experienced unusual activity on their cellphones, including being flooded with text messages in the days leading up to losing control of their cellphones and e-prescribing accounts.  Unbeknownst to the physicians, these text messages were related to efforts by the defendant and his associates to “clone” the SIM card of the doctors’ cellphone, thereby giving the defendant full access to the phone, and ultimately, the physicians’ e-prescribing credentials.

Once the credentials were compromised, the defendant advertised the prescriptions and controlled substances he had for sale on social media.  Using automated “bots,” the defendant would generate and transmit thousands of prescriptions using the compromised doctor’s e-prescribing credentials within a matter of hours.  These bots generated fictitious names, dates of birth, and addresses, and sent electronic prescriptions for controlled substances and narcotics to pharmacies in specific areas where the defendant’s associates were waiting. The defendant transmitted thousands of prescriptions, which when filled, resulted in thousands of pills of pharmaceutical grade narcotics being illicitly diverted and re-sold at a premium.  The defendant’s profits from the resale of those illegally procured narcotics ranged from $75,000 to $250,000 per month, in the form of payments which were primarily made via cryptocurrency, at the defendant’s request.

The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Adam Toporovsky and Kaitlin McTague, and Special Assistant United States Attorney Brian Rodriguez, of the Nassau County District Attorney’s Office, are in charge of the prosecution with assistance from Paralegal Specialists Adam Bernard and Samantha Schroeder.

The Defendant:

DEVIN ANTHONY MAGARIAN
Age: 21
Kissimmee, New York

E.D.N.Y. Docket No. 24-CR- 178

Earlier today, in federal court in Brooklyn, a superseding indictment was partially unsealed variously charging seven members of the Brooklyn-based Hyena Crips gang with racketeering and using a firearm in the course of a murder in connection with three murders, murder conspiracies, robberies and identity-fraud schemes dating back to 2012.  Three defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.  The four remaining defendants, who are in state and federal custody on other charges, will be arraigned at a later date.

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), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Northeast Region (DOL-OIG), announced the arrests and superseding indictment.

“For years, the Hyena Crips terrorized our community with brutal acts of violence—including murders, shootings and brazen armed-robberies—and funded their criminal activities through fraud schemes,” stated United States Attorney Peace.  “The crimes alleged in today’s superseding indictment illustrate well the damage this gang has wrought on individuals, small businesses and the community at-large.  This Office and its law enforcement partners are working tirelessly to dismantle violent criminal enterprises, take out their leadership and obtain justice for their victims.  It is my hope that today’s indictment brings some measure of solace particularly to the families of Samuel Joseph, Leandre Mallinckrodt and Roodson Polynice who were senselessly murdered.” 

“As alleged, these defendants and the Hyena Crips gang at-large have for years inflicted unimaginable pain on the community and claimed the lives of innocent New Yorkers. While nothing can bring back Leandre Mallinckrodt, Samuel Joseph, and Roodson Polynice, HSI New York will never forget its commitment to seeking justice on behalf of victims, regardless of how much time has passed,” said Special Agent-in-Charge Arvelo. “HSI New York will not sit idly by as gangs terrorize the public. I commend our law enforcement partners, including the New York Police Department, for working together to eliminate violent criminal organizations and the fear they cause.”

“The ‘Hyena lifestyle’ was one of wanton violence coupled with acute ineptitude, as the individuals charged today allegedly murdered innocent men they mistook for rival gang members,” stated NYPD Commissioner Caban.  “The actions of this busy criminal network ranged from robbery to financial fraud, which, for too long, cast a pall over large swaths of our city. I highly commend all the investigators involved in this case, starting us toward a modicum of justice for the grieving families of those senselessly killed.”

“An important part of the mission of the U.S Department of Labor, Office of Inspector General is to investigate allegations of fraud involving COVID-19 pandemic unemployment insurance programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.

As detailed in the government’s detention letter filed earlier today, the Hyena Crips set of the Crips street gang is a violent criminal enterprise operating in the East Flatbush section of Brooklyn.  The gang engages in acts of violence, including murder, robbery and assault, and earns money through drug trafficking, bank fraud and access device fraud.  Members of the gang refer to each other as “Hyenas,” “Heenz” or some variation of hyena, and use social media emojis depicting a bluish-purple face with horns and an animal resembling what appears to be a hyena, wolf or fox. 

Murder of Leandre Mallinckrodt

On September 3, 2012, defendant Rick Jasmin and other members of the Hyena Crips were present at the annual West Indian Day Parade in Brooklyn.  A fight broke out and Jasmin allegedly stabbed Leandre Mallinckrodt, who the defendant mistook for a rival gang member, in the neck.  Mallinckrodt, who had been visiting from upstate New York and had no gang affiliation, died from the wound.

Murder of Samuel Joseph

On February 22, 2019, Martial H. Amilcar and a co-conspirator drove to 15-year-old Samuel Joseph’s apartment building and waited outside until Joseph’s teenage sister arrived at the building’s entrance.  While Joseph’s sister prepared to enter the building, the victim was walking down an internal staircase towards the building’s exit.  When Joseph’s sister opened the building door to enter, Amilcar walked into the building behind her, pulled out a gun and shot Joseph three times at close range, killing him. The shooting and events leading up to it were captured on security camera footage taken nearby.  Amilcar and the co-conspirator allegedly killed Joseph in retaliation for an altercation earlier that day between Amilcar’s relative, a fellow gang member, and Joseph’s older brother, a rival gang member.

Murder of Roodson Polynice

In the summer of 2020, Hyena Crips leader Dave Augustin allegedly directed Richler Morette and Bradley Augustin to retaliate against a rival gang for the non-fatal shootings of two Hyena Crips leaders.  On September 2, 2020, Bradley Augustin, Morette and others allegedly carried out the fatal shooting of Roodson Polynice.  Polynice, like Mallincrodt, had no gang affiliation and was killed after he was wrongly identified by the defendants as a rival.  Following the murder, Morette responded to a group Facebook messages about Polynice’s death in which he replied with three laughing-face emojis and stated, “[d]on’t care who got hit” and “pic [sic] a side or get killed with them Hyenalifestyle or no life.”

COVID-19 Fraud

Dave Augustin, Matthew Harris, Rick Jasmin, Wisny Joseph, and Richler Morette are charged with allegedly conspiring to commit identity fraud in connection with fraudulently obtaining unemployment benefits and loans issued by the Small Business Administration for relief during the COVID-19 pandemic.  Dave Augustin, Harris, Joseph and Morette are also charged with money laundering conspiracy arising from their fraudulently opening bank accounts to conceal the source of ill-gotten gains obtained by members of the Hyena Crips.

The superseding indictment also charges several defendants with the attempted armed robbery of a Caribbean Air check cashing businesses, the attempted robbery of a pharmacy and the non-fatal shooting of an individual following an argument during a dice game.

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

If convicted, Martial H. Amilcar, Bradley Augustin, Dave Augustin, Jasmin, and Morette face a maximum sentence of life imprisonment.  Harris and Joseph face prison terms of up to 20 years.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Devon Lash, Jessica Weigel, Joshua Dugan and Andres Palacio are in charge of the prosecution.  The case was initiated and investigated by Assistant United States Attorney Andrew Wenzel in the Long Island Division.

The Defendants:

MARTIAL H. AMILCAR (also known as “Drippy”)
Age:  27
Brooklyn, New York

BRADLEY AUGUSTIN (also known as “Cradley”)
Age:  24
Brooklyn, New York

DAVE AUGUSTIN (also known as “Juice”)
Age: 38
Brooklyn, New York

MATTHEW HARRIS (also known as “Kappy”)
Age: 24
Brooklyn, New York

RICK JASMIN (also known as “Jab”)
Age: 31
Brooklyn, New York

WISNY JOSEPH (also known as “Weezy”)
Age: 32
Brooklyn, New York

RICHLER MORETTE (also known as “Breezy”)
Age: 29
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-18 (S1) (AMD)

Earlier today, in federal court in Central Islip, Gary Confredo, also known as “Gary Conte,” the former operator of Goldstar Financial Management Corp. (Goldstar), a financial services business based in Commack, New York, was sentenced by United States District Judge Joan M. Azrack to 42 months’ imprisonment for conspiring to commit bank fraud in connection with a scheme to defraud Bank of America of more than $3.2 million in loans and lines of credit that were obtained under false pretenses.  The Court also ordered Confredo to pay $1,096,882 restitution to Bank of America.  Confredo pleaded guilty to the charge in November 2022.

Breon Peace, United States Attorney for the Eastern District of New York, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.

“The defendant’s scheme of submitting fraudulent applications for commercial loans and lines of credit to Bank of America was full of lies and deception. With today’s sentence the defendant learns a powerful truth, that cheating financial institutions for personal gain will be punished and the cost is significant,” stated United States Attorney Peace.

“As a financial consultant, Confredo was a trusted member of the financial industry.  However, instead of acting ethically, he used his position to submit fraudulent loan applications on his clients’ behalf.  Many of whom were complicit in this scheme. Driven by greed, Confredo and these co-conspirators caused Bank of America to lose millions of dollars in defaulted loans. These crimes have a far-reaching and long-lasting negative impact on the financial industry and the American public.  Today’s sentencing bears truth to the fact that Postal Inspectors and our law enforcement partners will investigate and prosecute white collar criminals to the fullest extent of the law,” stated USPIS Inspector-in-Charge Brubaker.

According to court filings and facts presented at the plea proceeding, between November 2016 and October 2019, Confredo conspired with others to submit fraudulent applications for commercial loans and lines of credit to Bank of America on behalf of Goldstar clients, who agreed to pay Confredo a portion of any loan that he secured on their behalf.  To manipulate the application process, Confredo submitted altered tax returns and bank statements that falsely inflated the clients’ incomes and assets and allowed them to qualify for loans and lines of credit under Bank of America’s lending criteria.  As a result of Confredo’s scheme, Bank of America issued approximately $3.2 million in loans and lines of credit to Goldstar’s clients and sustained losses of approximately $1 million when those loans and lines of credit were not repaid. 

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 mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft. 

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorney Bradley T. King is in charge of the prosecution with assistance from Paralegal Specialist Samantha Schroeder and Legal Assistant Danielle Casey. Assistant United States Attorney Madeline O’Connor is handling forfeiture matters.

GARY CONFREDO (also known as “Gary Conte”)
Age:  61
East Northport, New York

E.D.N.Y. Docket No. 22-CR-425 (JMA)

Earlier today, at the federal courthouse in Brooklyn, a six-count indictment was unsealed charging Yashiya Louisdor, Zaire Alman, Marques Seals and a fourth defendant with conspiring to illegally traffic more than 40 firearms in three months.  Louisdor, Alman and Seals were arrested yesterday and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.  The fourth defendant is still at large.  During the arrests 33 guns, including several rifles and shotguns, were recovered.

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

“As alleged, in just three short months the defendants attempted to bring over 40 guns into our community to sell them on our streets, including selling near an elementary school,” stated U.S. Attorney Peace. “Thanks to our Office and our law enforcement partners, this gun trafficking ring has been dismantled and we hope this sends a message to all who seek to profit from the illegal gun trade that we will not stop in our efforts to keep our community safe.”

“This indictment highlights NYPD investigators’ ongoing intelligence-driven efforts to pinpoint, arrest, and hold accountable gun traffickers,” stated NYPD Commissioner Caban. “Allegedly selling these illegal firearms in broad daylight, close to a school, makes these charges especially disturbing. Along with our partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York, the NYPD vows to remain relentless in our quest to eradicate gun violence in all New York City neighborhoods.”

Stated ATF Acting Special Agent-in-Charge Kalogiros: “Firearms trafficking is a central focus of the ATF strategy to protect the public from violent crime. These individuals are alleged to have brought dozens of illegal firearms to the streets of New York. With their arrests we have disrupted and dismantled a trafficking ring that profited from bringing illegal firearms to our city streets endangering each and every one of their fellow citizens. I would like to thank the ATF Special Agents and Task Force Officers of the NYPD/ ATF Joint Firearms Task Force for their diligent efforts on this case. This case is yet another example of how the many units in the NYPD and ATF can collaborate and coordinate their efforts with their Federal partners at the United States Attorney’s Office to make the streets safer for all.”

According to the indictment and other court documents, the defendants made multiple sales of at least 40 illegal firearms, including semi-automatic and defaced weapons, between February 2024 and April 2024.  The defendants conducted many of these firearms sales in a vehicle in the parking lot of a fast-food restaurant in Brooklyn, New York, which was at a busy intersection and mere blocks away from an elementary school and a sports venue and concert arena.  The defendants also conducted these firearm sales in a vehicle near a public transportation hub in Manhattan.  Three members of the gun-trafficking operation obtained the firearms in Georgia and then transported them to New York to be sold on the streets of Brooklyn.  The firearms deals often occurred in the middle of the afternoon and in broad daylight.  Some of the firearms had defaced serial numbers. 

The charges in the indictment 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 Katherine P. Onyshko is in charge of the prosecution, with the assistance of Paralegal Specialist Peiyuan Lo.

The Defendants:

YASHIYA LOUISDOR
Age:  23
Brooklyn, New York

ZAIRE ALMAN
Age:  23
Douglasville, Georgia

MARQUES SEALS
Age:  23
Douglasville, Georgia

E.D.N.Y. Docket No. 24-CR-187

Earlier today, in federal court in Brooklyn, Quandel Smothers, also known as “Chucky,” was sentenced by United States District Judge Kiyo A. Matsumoto to 23 years in prison for racketeering conspiracy and possessing a firearm in furtherance of a drug trafficking crime in connection with his leadership of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang.  Smothers was convicted of the charges by a federal jury in February 2023 following a two-week trial.  Smothers conspired with other gang members and associates to deal drugs, commit fraud and to murder or attempt to murder their rivals from 2006 to 2019, resulting in multiple shootings that left one individual dead and several other victims permanently disabled.

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

“Smothers, who fancied himself the gang’s “Godfather” and East New York his ‘Gun Town,’ deserves the decades behind bars imposed today for leading a criminal enterprise that endangered the community with their mindless killing, shootings and assaults of rivals,” stated United States Attorney Peace.  “This Office and our law enforcement partners have dismantled the Elite Assassin Millas and will continue the important work of ridding our district of violent groups that have no respect for the law or human life.”

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for outstanding work in the case.

As proven at trial, E.A.M. operated primarily in East New York, which the gang referred to as “Gun Town.”  The gang made money through fraud and drug dealing, particularly sales of crack cocaine and marijuana.  Smothers rose to the leadership position of E.A.M. through violence and fear.  E.A.M. members reporting to Smothers referred to themselves as “Homicide Town.” Smothers agreed with other gang members and associates to deal drugs, commit fraud, and to murder or attempt to murder their rivals from 2006 to 2019, resulting in numerous shootings.

On April 30, 2011, Smothers, the so-called “Godfather” or “GF” of E.A.M., shot a fellow E.A.M. member in the torso and leg over a drug and loyalty-related dispute, causing the victim’s leg to be amputated.  Over the years that Smothers led the gang, his underlings engaged in feuds with other local street gangs in East New York that frequently resulted in shootouts between the groups.  As a result of shootings, two individuals were paralyzed by members of E.A.M., and one victim — Michael Tenorio — was murdered.

All six other members and associates of E.A.M. that were charged with the defendant have pleaded guilty to crimes including murder, conspiracy to commit murder, assault, and interstate stalking causing life threatening injury.  Tyshawn Corbett was sentenced to 45 years’ imprisonment; Marlon Bristol was sentenced to 135 months’ imprisonment; Devon Bristol was sentenced to 80 months’ imprisonment; Desmonn Beckett was sentenced to 64 months’ imprisonment; and Andrew Campbell was sentenced to 30 months’ imprisonment.  Qawon Allen is awaiting sentencing. 

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Matthew Galeotti, Genny Ngai and Jonathan Siegel are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.

The Defendant:

QUANDEL SMOTHERS (also known as “Chucky”)
Age: 32
Brooklyn, New York

Defendants Who Pleaded Guilty

TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New York

QAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 28
Brooklyn, New York

DESMONN BECKETT (also known as “Des”)
Age: 30
Brooklyn, New York

DEVON BRISTOL (also known as “D”)
Age: 32
Brooklyn, New York

MARLON BRISTOL (also known as “Marlo”)
Age: 35
Brooklyn, New York

ANDREW CAMPBELL (also known as “Phaze”)
Age: 27
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-213 (KAM)

Earlier today, in federal court in Central Islip, Hui Qin, also known as “Qin Hui,” “Hui Quin,” “Muk Lam Li” and “Karl,” a citizen of the People’s Republic of China (PRC), who was listed on Forbes Magazine’s List of Billionaires and who operated SMI Culture, a Hong Kong-based entertainment entity, was sentenced by United States District Judge Joan M. Azrack to seven months’ imprisonment for making political contributions in the names of others, immigration fraud and producing a false identification document.  Qin pleaded guilty to the charges in March 2024.  As part of his plea, the defendant consented to abandonment of his fraudulently obtained LPR status and removal from the United States immediately after the sentencing.  Qin has been incarcerated since his arrest seven months ago on October 2, 2023.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the sentence.

“Qin’s brazen flouting of our political and immigration systems, and his defrauding government agencies resulted in a felony conviction, prison sentence and today, his removal from the United States,” stated United States Attorney Peace.  “Qin has learned a lesson in American civics the hard way, that no one is above the law.”

“Hui Qin violated our democratic norms by illegally attempting to influence election campaigns through fraudulent political donations,” stated FBI Assistant Director-in-Charge Smith.  “His unlawful actions and repeated efforts to exploit various government agencies were disrupted by the FBI and such attempts by other threat actors will not be tolerated. Today’s sentence and his removal from the United States should dissuade any future schemers from engaging in similar activity.  The FBI is committed to exposing all forms of corruption, especially those that threaten election integrity and our duly elected officials.

“Qin interfered with our election system and tried to gain advantage through his straw donations.  He furthered his criminal activity by misrepresenting himself on documents to obtain a false Visa, then lived with an illegitimate status in his $5 million Manhattan apartment.   It is through our law enforcement partnerships and good police work that Qin was held accountable for behaving like he was above the law,” stated IRS-CI Special Agent-in-Charge Fattorusso.    

“By flouting laws vital to the sanctity of the federal election and immigration systems, the defendant threatened not only the community's safety, but the democratic foundation on which the United States of America was established,” stated HSI New York Special Agent-in- Charge Arvelo.  “Hui Qin’s sentencing today underscores the importance of law enforcement’s collaboration, coordination, and unwavering dedication to one common goal: protecting the public. HSI New York stands united with our partners against any individuals attempting to jeopardize our national security.”  

 As set forth in court filings and facts presented at the plea proceeding, between December 2021 and December 2022, Qin agreed to reimburse other individuals who made contributions on his behalf to the campaign committees for a candidate for a New York City-wide political office, a member of the United States House of Representatives for a congressional district in the Eastern District of New York and a candidate for a House of Representatives seat in a Rhode Island congressional district.  During the scheme, straw donors made approximately $11,600 in contributions on Qin’s behalf, which caused the campaign committees to file false contribution reports with the Federal Election Commission in 2022.

Additionally, as part of his plea Qin admitted that, in April 2019, he filed a false application for LPR status with United States Citizenship and Immigration Services.  In the application, Qin falsely swore, under penalty of perjury, that he had never used another name.  In fact, in 2008, a PRC government official provided Qin with the alias “Muk Lam Li” and between 2008 and the filing of Qin’s LPR application, Qin obtained identification documents, including a Hong Kong identification card, a PRC identification card and a Hong Kong passport in the name of the Li alias, which contained Qin’s photograph, but a date of birth different than Qin’s.  Around September 2017, Qin used the Li alias to transfer more than $5 million from the PRC to a United States bank account, a portion of which was used to purchase a luxury Manhattan apartment, where Qin resided. 

Qin also pleaded guilty to engaging in interstate travel to fraudulently obtain a Florida driver’s license.  In December 2020, Qin traveled from New York to Florida and applied for a driver’s license at Florida Department of Highway Safety and Motor Vehicles (FLHSMV).  At the time of his travel, Qin was a resident of Old Westbury, Long Island and Manhattan, but he signed an application stating that it was “true and correct” that he resided at an address in Miami, where he had never lived.  To bolster this false assertion, Qin presented FLHSMV officials with fake bank and credit card statements bearing the name “Hui Quin” and the false Miami address.  After FLHSMV issued Qin a Florida Driver’s License, he presented it to banks and a motor vehicle insurer as identification.

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 Adam Toporovsky are in charge of the prosecution.

The Defendant:

HUI QIN (also known as “Qin Hui,” “Hui Quin,” “Muk Lam Li” and “Karl”)
Age:  55
Old Westbury, Long Island and Manhattan, New York

E.D.N.Y. Docket No. 24-CR-100 (JMA)

Earlier today, in federal court in Brooklyn, Julien Levy and Keily Nunez were sentenced by United States District Judge Pamela K. Chen to 20 and 40 months in prison, respectively, for defrauding JetBlue Airways of approximately $10 million.  Levy and Nunez pleaded guilty to committing honest services wire fraud in June and July 2023, respectively.

Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, announced the sentence. 

“These defendants shamelessly lined their own pockets by diverting millions of dollars in airline part contracts to entities they controlled,” stated United States Attorney Peace.  “Today’s sentence sends a clear message that those who betray the trust of their employers by disrupting marketplaces for their own personal gain will be held to account.”

Mr. Peace thanked Internal Revenue Service Criminal Investigation for their assistance with the investigation. 

“The defendants abused their positions of power to orchestrate a scheme that defrauded JetBlue Airways out of millions of dollars. Levy and Nunez went as far as manipulating the identity of a deceased airline employee to circumvent the company’s policies and procedures with the sole intention of enriching themselves. Today they face the consequences of their unbound greed," said HSI New York Special Agent in Charge Ivan J. Arvelo. "I commend HSI New York and our law enforcement and private sector partners for stemming this corruption before it ultimately impacted well-meaning customers.”

Between approximately July 2017 and June 2021, Nunez and another JetBlue employee accepted bribes from Levy in exchange for approving more than $1.5 million in aircraft part invoices between JetBlue and Levy’s company, Summit Aviation Supply LLC.  Nunez also accepted bribes in connection with his approval of more than $8.5 million in aircraft part invoices between JetBlue and Alaris Aerospace Systems LLC, a Florida-based aircraft parts seller a co-conspirator controlled.  Nunez was previously sentenced to two years’ imprisonment in connection with this role in a separate scheme to defraud the United States Small Business Administration’s Economic Injury Disaster Loan program of approximately $1.5 million through the submission of false loan applications. 

Department of Justice Trial Attorney Patrick J. Campbell and Assistant United States Attorney Nick Axelrod are in charge of the prosecution with assistance from Paralegal Specialist Liam McNett.   

The Defendants:

KEILY NUNEZ
Age:  44
Jamaica, New York

JULIEN LEVY
Age:  39
Englewood, New Jersey

E.D.N.Y. Docket No. 22-CR-281 (PKC)

Earlier today, at the federal courthouse in Brooklyn, Emmanuel Quamey, a Ghanaian national, was sentenced by United States District Judge Carol Bagley Amon to 48 months in prison for his role in receiving and laundering stolen money which was obtained through romance scams that defrauded over a dozen vulnerable and/or elderly victims in the United States.  As part of his sentence, Quamey was ordered to pay $3.3 million in forfeiture and restitution to the victims in the amount of approximately $3.8 million.  Quamey pleaded guilty in October 2023 to conspiring to receive stolen money for his role in the romance scams.

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

“Romance scams are callous crimes in which perpetrators steal money from vulnerable and elderly victims by taking advantage of the victims’ trust and desire to form human connections,” stated United States Attorney Peace.   “This sentence serves as a warning to individuals like the defendant that there are real consequences to participating in these cruel scams.  This Office and our law enforcement partners are committed to bringing these fraudsters to justice and getting the victims’ money back.”

Mr. Peace thanked the Special Agents of Homeland Security Investigations New York for their exemplary work on the case.     

As set forth in court filings, between September 2019 and March 2023, Quamey and a network of co-conspirators received over $3.8 million in fraud proceeds that were stolen from several vulnerable and elderly U.S. victims of romance scams.  A “romance scam” is a type of online financial fraud that occurs when an individual user of social media or an internet dating website is targeted for fraud by a scammer posing as a potential romantic partner.  The scammers use a fake persona to express strong romantic interest in the targeted victim in order to trick them into sending money to the scammer under false pretenses.  The specific stories that the scammers use to induce romance scam victims to send money vary, but as part of the fraud, the victims are directed to wire their money to one or more bank accounts to purportedly help their romantic partners.  The victims would then be defrauded of the money.    

Quamey was responsible for receiving and laundering the victims’ money.  He personally received approximately $3.3 million of the victims’ money that was wired into bank accounts he directly controlled.  Using more than a dozen bank accounts in the United States and Ghana, Quamey and his co-conspirators would then transfer the victims’ money overseas to Ghana. 

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Shannon C. Jones and Genny Ngai are in charge of the prosecution with the assistance of Paralegal Specialist Jacob Menz.  Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters in the case.

The Defendant:

EMMANUEL QUAMEY
Age:  36
Accra, Ghana

E.D.N.Y. Docket No. 23-CR-226 (CBA)

Earlier today, at the federal courthouse in Central Islip, a criminal complaint was unsealed charging Jonathan Cannon and Julie Dotton with wire fraud in connection with a scheme to defraud a company seeking to purchase personal protective equipment (“PPE”) at the outset of the COVID-19 pandemic.  Cannon was arrested this morning at his home on Long Island and arraigned before United States Magistrate Judge Steven L. Tiscione who released the defendant on a $500,000 bond.  Dotton was arrested this morning in Buffalo and will make her initial appearance this afternoon in federal court in the Western District of New York. 

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 arrests and charges. 

“As alleged in the complaint, the defendants sought to take advantage of a provider’s need for life-saving personal protective equipment through a fraudulent scheme that was designed in reality to line their own pockets,” stated United States Attorney Peace.  “This Office will continue to work diligently to ensure that fraudsters who sought to capitalize on the worldwide pandemic will be brought to justice. There is no free pass for Covid-19 fraud.”

“Jonathan Cannon and Julie Dotton allegedly defrauded a healthcare company of approximately $8.2 million under the false pretense of selling personal protective equipment. The defendants’ alleged failure to provide these critical garments, especially during the onset of a global pandemic, selfishly deprived potential consumers and patients in need. Today’s arrests highlights the FBI’s steadfast pursuit of those who jeopardize the health of others for personal financial gain,” stated FBI Assistant Director-in-Charge Smith.

According to court filings, as part of their fraudulent scheme, Cannon and Dotton allegedly misrepresented their ability to obtain PPE to a Canadian company that was an official provider of PPE to two Canadian provinces during the COVID-19 pandemic.  Using a nominal entity she controlled, Dotton entered into a contract with the company to sell approximately 12 million face masks to it for $8.2 million.  Cannon and Dotton then caused the company to wire the $8.2 million payment to a purported third-party escrow agent’s bank account.  Rather than use the funds to procure the PPE as promised, Cannon and Dotton caused the purported escrow agent to transfer the funds to a bank account controlled by Cannon, who, in turn, disbursed the funds to various third parties for the defendants’ benefit.  After Cannon and Dotton failed to procure the agreed upon PPE for the company, and the company demanded delivery of the PPE or a refund, Cannon and Dotton strung them along with excuses for a number of months. 

The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Drew G. Rolle, John O. Enright and Adam Toporovsky are in charge of the prosecution with assistance from Paralegal Specialist Peyton Jefferson. 

The Defendants:

JONATHAN CANNON
Age:  58
Miller Place, New York

Julie Dotton
Age:  51
Orchard Park, New York

E.D.N.Y. Docket No. 24-MJ-342

Earlier today, in federal court in Brooklyn, former Village of Brewster Police Officer Wayne Peiffer was sentenced by United States District Judge LaShann DeArcy Hall to 36 months’ imprisonment for his participation in a conspiracy to commit Hobbs Act extortion and conspiracy to commit bribery.  Additionally, Peiffer must pay $5,000 in forfeiture as well as perform community service during his supervised release for no less than four hours per week for a total of 208 hours. The community service should benefit Brewster, New York or a nearby community.

The charges arose from Peiffer’s protection of two Queens-based prostitution businesses from law enforcement when the businesses brought women to his jurisdiction in Brewster, New York, to engage in prostitution.  Peiffer pleaded guilty to the charges in April 2022. 

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), James Smith, 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 charges.

“The defendant is rightly punished with a prison sentence for disgracing his badge, violating the public trust in the community he was sworn to serve, and facilitating the victimization of vulnerable women all for his own self-satisfaction,” stated United States Attorney Peace.  “Rooting out public corruption in all its pernicious forms is a priority of this Office as such conduct undermines trust in law enforcement.”

Mr. Peace also expressed his appreciation to the Putnam County District Attorney’s Office for their continued support and assistance throughout this investigation.

“Wayne Peiffer violated his sworn oath to serve the community by using his authority as law enforcement to protect known sex traffickers and perpetuate the further victimization of the trafficked women,” stated FBI Assistant Director-in-Charge Smith. “Today, justice has been restored. Peiffer’s sentence emphasizes the FBI’s intolerance of corrupt individuals who abuse their position and disrupt the public’s confidence in our law enforcement departments.”

“Wayne Peiffer, a police officer and trusted public servant, used his official position to shield prostitution route drivers and sex traffickers from other local and state law enforcement in exchange for sexual favors,” stated HSI New York Special Agent-in-Charge Arvelo.  “This case is particularly alarming because Peiffer not only betrayed his sworn duty to uphold the law, but his actions also facilitated the trafficking of young women. HSI will not tolerate those who abuse their positions of trust to commit these despicable acts exploiting the most vulnerable members of our society.”

“Today, a former police officer who once swore an oath and then betrayed it in reprehensible fashion is facing the consequences of his actions,” stated NYPD Commissioner Caban. “Law enforcement is a noble profession that provides no harbor for those who would tarnish the shield we proudly wear. I commend everyone from the NYPD, HSI, FBI, and the U.S. Attorney’s Office for the Eastern District for their work on this important case.”

From approximately 2010 through October 2018, Peiffer provided protection to members of a prostitution business and a sex trafficking organization that each transported women from Queens to Brewster for the purposes of engaging in prostitution.  Peiffer’s protection included advance notice of increased law enforcement activities and assistance with avoiding detection and apprehension.  For example, on one occasion Peiffer warned members of the Cid-Hernandez Sex Trafficking Organization not to travel to Brewster because law enforcement officers in a narcotics investigation were conducting car stops in the area.  Peiffer met one of the criminal organization’s employees in a service station and told him to leave the area.  On another occasion Peiffer called one of the organization’s drivers and advised him not to travel to Brewster because of law enforcement activities.  When a driver for the organization was pulled over by another Brewster police officer, Peiffer vouched for the driver, describing him as a “friend.”  In exchange for his assistance, Peiffer received sexual services from the women at no cost.

Four of Peiffer’s co-defendants, Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Blanca Hernandez Morales and Jose Facundo Zarate Morales were convicted after trial of sex trafficking in October 2023, and they are awaiting sentencing.  Co-defendant Cristian Godinez pleaded guilty to conspiracy to facilitate prostitution and conspiracy to facilitate bribery.  He was sentenced in December 2023 to 14 months in prison.   

The government’s case is being handled by the Office’s Civil Rights Section.   Assistant United States Attorneys Nicholas J. Moscow and Rachel A. Bennek are in charge of the prosecution, with the assistance of Paralegal Specialist Ryan Costley. 

The Defendant:

WAYNE PEIFFER
Age:  51
Highland, New York

Co-Defendants:

LUZ ELVIRA CARDONA
Age:  35
Queens, New York

ROBERTO CESAR CID DOMINGUEZ
Age:  61
Queens, New York

CRISTIAN NOE GODINEZ
Age:  44
Queens, New York

BLANCA HERNANDEZ MORALES
Age:  53
Queens, New York

JOSE FACUNDO ZARATE MORALS
Age:  35
Queens, New York

E.D.N.Y. Docket No. 21-CR-622 (LDH)

Today, in federal court in Central Islip, Surage Roshan Perera, the founder and Executive Director of Janues Capital, Inc. in Bellerose, Queens, was sentenced by United States District Judge Gary R. Brown to 78 months’ imprisonment for securities fraud in connection with running a Ponzi scheme in which the defendant used investor money to pay redemptions to prior investors and his personal expenses, and fund his highly speculative day trading. Perera pleaded guilty to the charge in October 2023.  As part of his sentence, Perera was ordered to pay $6.3 million in restitution.

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 sentence.

“Perera’s sentence is just punishment for causing more than $6 million in losses to the victims who are now saddled with debts, some who lost their life savings and others who have been forced to delay retirement all because of the lies he peddled to them about their investments,” stated United States Attorney Peace.  “I commend the members of my Office and the FBI Special Agents for disrupting the defendant’s Ponzi scheme so that he could not wreak even more financial harm and holding him accountable for his criminal conduct.”

Mr. Peace thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group for their assistance with the case.

“Surage Perera pays the price for using his relationships with the victims to swindle them of over $6 million and casting several into a lifetime of debt. Today’s sentence reaffirms the FBI’s promise to uphold financial integrity and to pursue those who create fraudulent schemes for personal gain,” stated FBI Assistant Director-in-Charge Smith.

As alleged in the indictment and set forth in court filings, between February 2022 and March 2023, Perera abused his position of trust as an investment advisor to convince unsuspecting investors to part with their hard-earned money for what they believed were safe, well-performing investments.  For example, Perara falsely told one victim (“Jane Doe”) that he had relationships with large institutions and could purchase stock in companies that traded on the NASDAQ and NYSE at discounted prices.  He also told Jane Doe that her investment was  low-risk and he would use her investment capital to purchase shares in those public-traded companies.  As a result, Jane Doe gave Perera more than $4.2 million.  In reality, Perera was operating a Ponzi scheme.  Instead of investing as promised, Perera misappropriated those funds by, among other things, paying redemptions to prior investors, paying personal expenses and funding his day trading.  To conceal his fraudulent scheme, Perera sent fraudulent confirmation notices and account statements to investors.  In the end, Perera caused 15 victims, some of whom were his close friends, to lose approximately $6.3 million. 

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Christopher Caffarone is in charge of the prosecution. 

The Defendant:

SURAGE ROSHAN PERERA
Age:  51
Bellerose, Queens

E.D.N.Y. Docket No. 23-CR-129 (GRB)

Nikolay Grigorev, 36, of Brooklyn, pleaded guilty today to conspiring to defraud the United States for his role in an illicit export control scheme to ship electronic components from the United States to companies affiliated with the Russian military. Co-defendants Nikita Arkhipov and Artem Oloviannikov remain at large.

“In pleading guilty today, the defendant admitted he conspired to smuggle over $250,000 worth of sensitive American drone technology to Russian companies fueling Putin’s unlawful war against Ukraine,” said Deputy Attorney General Lisa Monaco. “Swift action by agents and prosecutors unraveled a web of fake orders and wire transfers to prevent over 11,500 electronic components from making their way to the Russian war machine. The Justice Department will continue to hold accountable those who defy our sanctions and export controls to support Russia’s unprovoked and unjustified aggression in Ukraine – whether they’re based in New York City or overseas.”

“The FBI is relentless in its efforts to prevent sensitive, dual-use technology from being acquired by adversaries,” said FBI Deputy Director Paul Abbate. “The technologies in this case supported Russia’s war effort and poses a significant threat to the United States and its allies. The FBI continues to tirelessly pursue any illegal transfers that threaten national security and hold accountable those who violate the law.”

“When I visited Ukraine last November, I saw firsthand the death and destruction that such drones and other Russian weapons of war have caused, and heard from our counterparts about the importance of stopping the illicit flow of technology to support the Russian war machine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s plea reinforces our commitment to hold accountable those who violate our laws and our determination to undermine the Russian government’s unjustified campaign of aggression against the Ukrainian people.”

“Grigorev admitted today that he conspired to supply Russia with U.S.-sourced, dual-use technologies, knowing full well that his actions violated export controls and sanctions designed to stop those items from being sent to Russia and used in the production of drones like those found on the battlefields in Ukraine,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s guilty plea reaffirms that my office will pursue anyone who violates our export controls and threatens our national security.”

“Today’s guilty plea is just the latest example of our unyielding efforts to reduce the flow of electronic components to the Russian military,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Criminal convictions await those who willfully circumvent U.S. export controls and aid the manufacture of Russian drones used against Ukraine.”

As alleged in the indictment, Grigorev utilized a Brooklyn-based corporate entity, Quality Life Cue LLC (QLC), to facilitate the scheme. QLC was registered and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia. Through QLC, the defendants procured dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine. The most notable of these entities was SMT-iLogic, a Russia-based technology company that was sanctioned in May 2023 for its involvement in the supply chain for producing Russian military UAVs used in Russia’s war against Ukraine.

Between Oct. 22, 2021, and Feb. 22, 2022, QLC accounts controlled by Grigorev received wire transactions from SMT-iLogic totaling approximately $272,830. These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor (the “Brooklyn Company”) or to pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn Company. In email and chat communications, the defendants explicitly discussed their efforts to circumvent U.S. export restrictions, including through the use of front companies in third countries, such as Kazakhstan, and they also forwarded invoices listing SMT-iLogic as the recipient of semiconductors and other electronic components purchased from the Brooklyn Company. In addition, in December 2022, in response to negative press coverage of SMT-iLogic, Grigorev forwarded a news article to his co-defendants and stated, “they are already writing about your (sic) guys in articles about how Russia is getting American components for drones.” In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn resulted in the successful seizure of over 11,500 electronic components that had been purchased from the Brooklyn Company and were awaiting unlawful export to Russia.

As a result of today’s guilty plea, Grigorev faces a maximum penalty of five years in prison. A sentencing hearing has not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorneys Artie McConnell and Kate Mathews for the Eastern District of New York are prosecuting the case. Natalya Savransky, formerly of the National Security Division’s Counterintelligence and Export Control Section, provided valuable assistance.

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.

BROOKLYN, NY - Today, in federal court in Brooklyn, Nikolay Grigorev pleaded guilty to conspiring to defraud the United States for his role in an illicit export control scheme to ship electronic components from the United States to companies affiliated with the Russian military.  The proceeding was held before United States District Judge Nicholas G. Garaufis.  When sentenced, Grigorev faces up to five years in prison.  Co-defendants Nikita Arkhipov and Artem Oloviannikov remain at large.

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; James Smith; Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (DOC-BIS-OEE), announced the guilty plea.

“Grigorev admitted today that he conspired to supply Russia with U.S.-sourced, dual-use technologies, knowing full well that his actions violated export controls and sanctions designed to stop those items from being sent to Russia and used in the production of drones like those found on the battlefields in Ukraine,” stated United States Attorney Peace.  “Today’s guilty plea reaffirms that my Office will pursue anyone who violates our export controls and threatens our national security.”

“In pleading guilty today, the defendant admitted he conspired to smuggle over $250,000 worth of sensitive American drone technology to Russian companies fueling Putin’s unlawful war against Ukraine,” stated Deputy Attorney Monaco.  “Swift action by agents and prosecutors unraveled a web of fake orders and wire transfers to prevent over 11,500 electronic components from making their way to the Russian war machine. The Justice Department will continue to hold accountable those who defy our sanctions and export controls to support Russia’s unprovoked and unjustified aggression in Ukraine – whether they’re based in New York City or overseas.”

“When I visited Ukraine last November, I saw firsthand the death and destruction that such drones and other Russian weapons of war have caused and heard from our counterparts about the importance of stopping the illicit flow of technology to support the Russian war machine,” stated Assistant Attorney General Olsen.  “Today’s plea reinforces our commitment to hold accountable those who violate our laws and our determination to undermine the Russian government’s unjustified campaign of aggression against the Ukrainian people.”

“Nikolay Grigorev intentionally avoided export controls by masking his business’s production and shipment of technologies designed to support Russian military operations, especially its ongoing attacks in Ukraine,” stated FBI Assistant Director-in-Charge Smith.  “These sanction violations intentionally subvert those laws designed to protect international trade and illustrate the defendant’s malintent in this scheme. The FBI prioritizes all threats to our national security and will disrupt any entity attempting to covertly collaborate with our adversaries”

“Deliberately circumventing U.S. export controls to enable production of drones that support Russia’s full-scale invasion of Ukraine and the indiscriminate bombing of Ukrainian citizens and critical infrastructure will not be tolerated,” stated DOC-BIS-OEE Special Agent-in-Charge Carson.  “Today’s guilty plea demonstrates the direct impact that OEE investigations have in supporting U.S. national security interests.”

As alleged in the indictment, Grigorev utilized a Brooklyn-based corporate entity, Quality Life Cue LLC (“QLC”), to facilitate the scheme.  QLC was registered and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia.  Through QLC, the defendants procured dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.  The most notable of these entities is SMT-iLogic, a Russia-based technology company.  On or about May 19, 2023, SMT-iLogic was also added to the Specially Designated Nationals and Blocked Person List (“SDN List”).  According to the Office of Foreign Assets Control, SMT-iLogic is known to be involved in the supply chain for producing Russian military drones used in Russia’s war against Ukraine.  SMT-iLogic is associated with an entity known as the Special Technology Centre (“STC”).  STC is a Russia-based entity that was added to the SDN List on or about December 29, 2016, for assisting the foreign military intelligence agency of Russia’s armed forces, commonly known by the acronym “GRU,” in conducting signals intelligence operations.  On or about January 4, 2017, STC was added by the U.S. Department of Commerce, Bureau of Industry and Security to the Entity List for supporting the GRU.  STC was involved the production of the “Sea Eagle Orlan 10 UAV,” a drone vehicle that has been involved in Russian military operations in Ukraine.  STC’s largest customer is Russia’s Ministry of Defense, which paid STC the equivalent of nearly $99 million between February and August of 2022. 

Between October 22, 2021 and February 22, 2022, QLC accounts controlled by Grigorev received wire transactions from SMT-iLogic totaling approximately $272,830.  These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor (the “Brooklyn Company”) or pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn Company.  In email and chat communications, the defendants explicitly discussed their efforts to circumvent U.S. export restrictions, including through the use of front companies in third countries, such as Kazakhstan, and they also forwarded invoices listing SMT-iLogic as the recipient of semiconductors and other electronic components purchased from the Brooklyn Company. In addition, in December 2022, in response to negative press coverage of SMT-iLogic, Grigorev forwarded a news article to his co-defendants and stated, “they are already writing about your (sic) guys in articles about how Russia is getting American components for drones.” In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn resulted in the successful seizure of over 11,500 electronic components that had been purchased from the Brooklyn Company and were awaiting unlawful export to Russia.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Artie McConnell and Kate Mathews are in charge of the prosecution, with assistance from Litigation Analyst Mary Clare McMahon. Natalya Savransky, formerly of the National Security Division’s Counterintelligence and Export Control Section, also provided valuable assistance.

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 Defendant:

NIKOLAY GRIGOREV
AGE:  36
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-429 (NGG)

Earlier today, in federal court in Brooklyn, Jebara Igbara, also known as “Jay Mazini,” was sentenced by United States District Judge Frederic Block to 84 months in prison for wire fraud, wire fraud conspiracy and money laundering arising out of multiple schemes that resulted in millions of dollars in loss to trusting investors.  Igbara pleaded guilty to the charges in November 2022.  As set forth in the information, up until March 2021, Igbara maintained a popular Instagram account under the name “Jay Mazini,” where he would post videos depicting, among other things, occasions during which he would hand out large amounts of cash to various individuals as gifts.  In reality, Igbara was perpetrating overlapping fraud schemes, scamming investors out of at least $8 million.  As part of his sentence, Igbara was ordered to pay $10 million in forfeiture. The amount of restitution will be determined at a later date.

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

“The prosecution of Igbara unmasked him as a fraudster who used his social media popularity to con investors out of millions of dollars,” stated United States Attorney Peace.  “Shamefully, he targeted his own religious community, taking advantage of their trust in him so he could spend and gamble their hard-earned money. Hopefully today’s sentence will influence fraudsters, like this defendant, to think twice about the consequences before they victimize investors for their own benefit.”

“Igbara was a crypto con man.  He not only created a fake online presence to purport that he was a wealthy crypto investor, he used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes.   He conned a New York Muslim community out of millions then simply spent it and gambled it away.  Igbara had no regard for the victims he affected with his scam, but today’s sentence means that this crypto swindler, along with his social media persona, will now spend years in prison for his criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso.

Igbara maintained a popular social media presence on Instagram, calling himself “Jay Manzini,” with nearly one million followers during the offense period of 2019 to 2021.  The defendant portrayed himself as a successful investor and businessman, and also posted material relating to his Muslim faith, portraying himself as religious. Igbara touted his purported wealth by posting videos on his Instagram account showing him handing out large sums of cash to shoppers waiting on the checkout line in grocery stores, individuals working in fast food restaurants and a woman he met at the airport who had lost her purse. 

Igbara perpetrated an investment fraud scheme via a company called Halal Capital LLC.  The scheme targeted members of the Muslim-American community in New York by soliciting their money for purported investments in stock, electronics resale and the sale of personal protective equipment.  In reality, Igbara was operating a Ponzi scheme, and misappropriated nearly all of the money for his personal expenses, luxury vehicles and gambling.  To raise money in order to pay his investors “returns,” and keep them on the hook, Igbara also perpetrated a second fraudulent scheme, wherein he posted on his Instagram and other social media accounts that he was willing to pay above-market prices for various cryptocurrencies.  He would then send his victims doctored images of wire transfer confirmations that purported to show he had sent money for the cryptocurrency as promised, when in reality, the payment was never sent, and Igbara was merely stealing the cryptocurrency sent by his victim.                        

The government’s case is being handled by the Office’s Business & Securities Fraud Section.  Assistant United States Attorneys Lauren Howard Elbert and Joshua Dugan are in charge of the prosecution. 

The Defendant:

JEBARA IGBARA (also known as “Jay Mazini”)
Age:  28
Edgewater, New Jersey

E.D.N.Y. Docket No. 22-CR-424 (FB)  

Today, a federal jury in Brooklyn returned a guilty verdict against Antony Abreu on both counts of an indictment charging him with murder-for-hire and murder-for-hire conspiracy in connection with the February 12, 2019 killing of 31-year-old Xin “Chris” Gu, outside of a karaoke bar in Queens.  The verdict followed a two-week trial before United States District Judge Carol Bagley Amon.  When sentenced, the defendant faces a mandatory term of life in prison.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, 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 verdict.

“With today’s conviction of Abreu, a cold-blooded triggerman who executed a young man in exchange for an expensive wristwatch, this Office has held all the conspirators responsible for this murder plot driven by greed and revenge,” stated United States Attorney Peace.  “The victim was marked for death simply because he was pursuing the American dream by starting his own company.  Chris Gu was celebrating his promising future and the Chinese New Year when his life was violently ended in the street without warning.  His killers will spend the rest of their lives in prison.” 

“Antony Abreu appraised Xin “Chris” Gu to be worth that of an expensive watch, murdering him for such jewelry. After Gu decided to pursue his own business dream, his slighted employer bribed Abreu to carry out the final step in this twisted judge, jury, and executioner scheme. Today’s conviction of the final defendant in this cold-blooded conspiracy emphasizes the FBI’s commitment to restoring the balance of justice and reaffirming that no individual is permitted to put a price on another’s life,” stated FBI Assistant Director-in-Charge Smith.

“The tireless work of the detectives, agents, and prosecutors in this case helped hold to full account the men responsible for this murder,” stated NYPD Commissioner Caban. “This is another example of our agencies’ collaborative commitment to public safety, and further proof that no one is beyond the reach of the law.”

As proven at trial, Abreu was hired to murder Gu as part a revenge scheme orchestrated by Gu’s former boss, Allen Yu.  Allen Yu’s business, Amaco, lost substantial business when Gu left to start his own property development company.  Enraged at Gu’s perceived disloyalty, Allen Yu hired co-conspirators You You and Zhe Zhang to kill Gu in exchange for payment.  Zhang in turn hired Abreu to carry out the murder. 

 On the evening of February 11, 2019, and into the following pre-dawn hours, Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing.  After dinner, Gu and a smaller group went to a karaoke bar, Grand Slam KTV in Flushing.  When Gu left the bar and was getting into a cab, Abreu approached and shot Gu multiple times at close range, killing him.  In exchange for committing the murder, Zhang gave Abreu a luxury Richard Mille wristwatch valued at over $100,000.

 In the days after the murder, in an effort to avoid detection, Abreu sold the car he used in the murder to a relative and sold a burner phone used to facilitate the murder.  In the following months, Abreu repeatedly bragged about committing the murder to various associates and posted on social media about the wristwatch Zhang had given him.  After his arrest, Abreu obtained a contraband phone in jail, which he used to attempt to intimidate and retaliate against government witnesses in the case and to make payments to potential defense witnesses.

You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing.  Allen Yu and Zhang were convicted at trial in October 2023 and face mandatory life sentences when they are sentenced.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Gabriel Park and Eric Silverberg are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Legal Assistant Thomas “Cole” Englert.

The Defendants:

ANTONY ABREU (also known as “Anthony”)
Age:  36
Corona, Queens

E.D.N.Y. Docket No. 22-CR-208 (CBA)

Earlier today, at the federal courthouse in Brooklyn, Nicholas Welker, also known as “King ov Wrath,” was sentenced by United States District Judge Pamela K. Chen to 44 months’ imprisonment for conspiring to make death threats.  Welker, the leader of Feuerkrieg Division (“FKD”), an international racially or ethnically motivated violent extremist (“RMVE”) group, which translates to “War Fire,” posted death threats against a Brooklyn-based journalist (the “Journalist”) so that the Journalist would stop reporting on the Neo-Nazi group.  Welker pleaded guilty in September 2023.

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

“Welker tried to silence a journalist from reporting on his white supremacist group so that his fellow extremists could continue to commit violence against racial, ethnic, and religious minorities, and the LGBTQ+ community,” stated United States Attorney Peace.  “There were real victims of this crime—the journalist and his news media organization.  Today’s sentence demonstrates that we will stand up for them and other journalists who bravely report on these violent hate groups.” 

Mr. Peace expressed his thanks to the Federal Bureau of Investigation’s New York Joint Terrorism Task Force which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.  Mr. Peace also thanked the Estonian Internal Security Service and Prosecutor’s Office for their valuable support.

According to court filings, Welker’s threat included a photograph of the Journalist with a gun aimed at his head and the words “Race Traitor” over the Journalist’s eyes.  The threat stated, “JOURNALIST F[***] OFF!  YOU HAVE BEEN WARNED.”  The threat listed the Journalist and his employer by name.  Welker posted the threat to a public online forum.  Two under-aged FKD members tweeted the death threat directly at the Journalist’s social media handle so that he would see it.  Welker intended to frighten the Journalist into dropping his reporting on Welker’s hate group.

FKD members share a common goal of challenging laws, social order, and the government via terrorism and other violent acts.  The organization encourages attacks on racial minorities, the Jewish community, the LGBTQ+ community, the U.S. Government, journalists, and critical infrastructure.  FKD has members in the United States and abroad.

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.

The Defendant:

NiCHOLAS WELKER (also known as “King ov Wrath”)
Age: 33
San Jose, California

E.D.N.Y. Docket No. 23-CR-141 (PKC)

Earlier today, a seven-count indictment was unsealed in federal court in Brooklyn charging Omari Scott, also known as “Prince” and “Sir Prince,” and Michael Simmons, also known as “Victory,” with murder in the course of sex trafficking, sex trafficking by force and related crimes.  The charges stem from the defendants’ trafficking of women and promoting prostitution with customers in cars, hotels and along a stretch of Pennsylvania Avenue in Brooklyn known as the “Penn Track” which has operated for years as an open-air commercial sex market.  In the spring of 2023, Scott violently punished a trafficking victim who attempted to leave his control to work instead for Cleveland Clay, another individual who had women working for him in prostitution on the Penn Track.  Scott and Simmons decided to murder Clay, which Simmons carried out by shooting him multiple times at close range on May 1, 2023.  Scott was arrested earlier today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo.  Simmons is currently serving a sentence on unrelated charges and will be arraigned in the Eastern District of New York at a later date.

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), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.

“As alleged, the defendants conspired to brazenly murder a rival for control of a victim they perceived to be their property in the course of sex trafficking,” stated United States Attorney Peace.  “This Office is working alongside our federal and state law enforcement partners to prosecute the perpetrators who exploit vulnerable women for profit and we will provide support for these victims who have been harmed.”

Mr. Peace also expressed his appreciation to the New York City Department of Corrections, the New York City Human Resources Administration, the Kings County District Attorney’s Office and the New York County District Attorney’s Office for their valuable assistance with the case.

FBI Assistant Director-in-Charge Smith said, “Human lives are not pawns for criminals to manipulate for their own cruel wishes.  Omari Scott and Michael Simmons’s desire to establish control over their sex trafficking operation extended beyond violence against their victims, leading to the alleged murder of their rival. Their alleged actions – sexually exploiting women and conspiring to take a life of another individual – show a blatant disregard for humanity. The FBI will continue its efforts to pursue and bring to justice those who prey upon vulnerable populations with violence.”

“It is unequivocally detestable to compound the loathsome act of sex trafficking by allegedly murdering a business rival,” stated NYPD Commissioner Caban.  “I commend everyone at the office of the U.S. Attorney for the Eastern District and the FBI’s New York Field Office for their continued partnership in this case. The NYPD and our colleagues remain steadfast in holding accountable anyone who seeks to profit from the abuse and exploitation of others.”

As alleged in court documents, Scott and Simmons both recruited women to work in prostitution on their behalf along the Penn Track.  Scott used threats and violence to force at least two victims to engage in commercial sex work and provide him with the proceeds.  For example, in a conversation obtained by law enforcement, Scott warned a victim that he would “knock [her] out for disrespecting me,” and, on another occasion, told an associate on a recorded call that he was “beating this b---- up tonight” for failing to work quickly enough to locate customers. 

On April 30, 2023, when Scott learned that a victim planned to leave him and work with Clay, he was captured on video violently dragging the victim by her hair into his car, and later told an associate on a recorded call, “I’m bout to violate that b----. . .  I’m about to do her something crazy. . . I’m not respecting this shit. . . . I’m about to kill this b----!”  Early the next morning, Scott and Simmons were captured on video engaged in a heated argument with Clay.  Less than three hours later, Scott and Simmons were captured on video outside of a laundromat near the Penn Track before Simmons walked off to kill Clay in a parking lot, shooting him at least five times at close range.  When Simmons returned, the laundromat video captured Simmons telling Scott, “He’s down. . . he’s down!”  Clay succumbed to his injuries and died later that day. 

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of the sex trafficking charges, the defendants face a minimum term of 15 years in prison, and up to life imprisonment.  If convicted of the murder charge, the defendants face up to life imprisonment, and are eligible for the death penalty. 

If you are a victim of trafficking—whether by Scott, Simmons or someone else—and have information to provide, please contact the FBI, which is prepared to help you regardless of your immigration status, at tips.fbi.gov or call 1-800-CALL-FBI.

The government’s case is being handled by the Office’s Civil Rights Section.  Assistant United States Attorney Erin Reid, Anna Karamigios and Joshua Dugan are in charge of the prosecution with the assistance of Paralegal Specialists Anna November and Ryan Costley.

The Defendant:

OMARI SCOTT (also known as “Prince” and “Sir Prince”)
Age:  43
Brooklyn, New York
 

Michael Simmons (also known as “Victory”)
Age:  40
Pittsburgh, Pennsylvania 
E.D.N.Y. Docket No. 24-CR-158 (KAM)

Earlier today, Fredy Ivan Jandres-Parada, also known as “Lucky de Park View” and “Lacky de Park View,” a high-ranking leader of La Mara Salvatrucha, also known as MS-13, was arraigned at the federal courthouse in Central Islip, New York by United States Magistrate Judge Steven L. Tiscione.  Jandres-Parada and 13 other high-ranking MS-13 leaders were indicted in December 2020 on terrorism offenses relating to their direction of the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico and elsewhere over the past two decades.  Specifically, Jandres-Parada is charged with conspiracy to provide and conceal material support to terrorists, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to finance terrorism and narco-terrorism conspiracy.  For more than three years, Jandres-Parada was a fugitive, but he was arrested by the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) earlier this month and made an initial appearance in federal court in the Southern District of California, where he was ordered to be transferred in custody to the Eastern District of New York.

Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Mehtab Syed, Acting Assistant Director-in-Charge of the FBI’s Los Angeles Field Office; and Ivan J. Arvelo, Special Agent-in-Charge, HSI’s New York Field Office announced Jandres-Parada’s arrest and arraignment.

“As alleged, Jandres-Parada, a high-ranking leader in MS-13, engaged in drug trafficking, public and private displays of violence, and terrorism — all in pursuit of power for the organization,” said United States Attorney Peace.   “This arrest is a monumental achievement for our Office and international partners, highlighting our dedication to dismantling MS-13 and their reign of terror wherever they hide.”

Mr. Peace expressed his thanks to the FBI’s Los Angeles Field Office and Criminal Investigative Division’s Safe Streets Gang Unit, and HSI’s National Gangs and Violent Crime Unit and New York Field Office for spearheading the MS-13 leadership investigations.  Additionally, he thanked the FBI Legal Attachés in Mexico City and San Salvador, FBI and HSI’s San Diego Field Offices, HSI Attaché Mexico City and Assistant Attaché Tijuana, USMS Legal Attaché in Mexico City and the United States Customs and Border Protection Officers at the San Ysidro Port of Entry for the critical support provided in connection with the arrest, and the U.S. Attorney’s Office and the United States Marshals Service for the Southern District of California for coordinating the defendant’s initial appearance in San Diego.  Mr. Peace also thanked the numerous Department of Justice components that contributed to this indictment, including the National Security Division’s Counterterrorism Section and the Organized Crime Drug Enforcement Task Forces Executive Office.

“The arrest of Jandres Parada demonstrates the FBI's commitment to protecting the American public by proactively targeting MS-13's highest ranking leaders in order to dismantle this transnational criminal organization, which is among the most violent in the world," said Mehtab Syed, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office.  "This collaborative effort among many agencies spanned coast to coast and led to this successful capture.”

“Fredy Ivan Jandres-Parada, (a/k/a “Lucky”) has been a fugitive on HSI's Most Wanted list since 2021.  As one of the founding members of the MS-13 street gang, Jandres-Parada is alleged to be responsible for ordering acts of violence against gang rivals, law enforcement, and civilians alike.  However, Jandres-Parada’s reign of violence came to an end when he was arrested in a joint operation by HSI and FBI,” said HSI New York Special Agent in Charge Ivan J. Arvelo.  “With the apprehension of one of HSI’s most wanted, I commend HSI New York, our Long Island Division, and our law enforcement partners for their steadfast commitment and resolve to securing justice for the countless victims whom have been impacted by MS-13’s violence.”

As set forth in the indictment and related court filings, Jandres-Parada and his co-defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales. They play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world.  In total, 27 of the highest-ranking leaders of MS-13 have been charged in the Eastern District of New York in this indictment and the related indictment of United States v. Arevalo-Chavez, et al.

As further alleged, in approximately 2002, Jandres-Parada, his co-defendants, and other MS-13 leaders began establishing a highly-organized, hierarchical command and control structure as a means to effectuate their decisions and enforce their orders, even while in prison.  They directed acts of violence and murder in El Salvador, the United States and elsewhere, established military-style training camps for MS-13 members and obtained military weapons such as rifles, handguns, grenades, improvised explosive devices (IEDs) and rocket launchers.  Further, beginning in approximately 2012, Jandres-Parada and other members of the Ranfla Nacional negotiated with officials from the government of El Salvador (GOES) to obtain benefits and concessions from the government.  In order to extort those benefits and concessions, MS-13 engaged in public displays of violence to threaten and intimidate civilian populations, target GOES law enforcement and military officials, and manipulate the electoral process in El Salvador.

Additionally, as alleged, the Ranfla Nacional directed the expansion of MS-13 activities around the world, including the United States and Mexico, where Jandres-Parada and other high-ranking leaders were sent to organize operations, make connections to obtain narcotics and firearms from Mexican drug cartels such as the Zetas, Gulf Cartel, Cártel de Jalisco Nueva Generación (CJNG) and Sinaloa Cartel, and engage in human trafficking and smuggling. The Ranfla Nacional also directed MS-13’s large membership in the United States to engage in criminal activities, such as drug trafficking and extortion to raise money to support MS-13’s terrorist activities in El Salvador and elsewhere.  Jandres-Parada, who previously resided in the Los Angeles area before being deported to El Salvador, played a key role coordinating communication and criminal activity between the Ranfla Nacional and MS-13 leaders in the United States, Mexico and elsewhere.

Finally, the Ranfla Nacional and MS-13’s transnational leadership structure is alleged to have directed members in the United States to commit acts of violence to further its goals and implement rules enabling MS-13 to entrench itself in parts of the United States, including within the Eastern District of New York where, under the defendants’ leadership and rules, MS-13 has committed murders, attempted murders, assaults, kidnappings, drug trafficking, extortion of individuals and businesses, and obstruction of justice, and has sent dues and the proceeds of criminal activity by wire transfer to MS-13 leaders in El Salvador.  For example, this Office's Long Island Criminal Division has prosecuted hundreds of MS-13 leaders, members and associates for carrying out more than 70 murders in the Eastern District of New York between 2009 and the present.

One of Jandres-Parada’s co-defendants, Cesar Humberto Lopez-Larios, also known as “El Grenas de Stoners” and “Oso de Stoners,” and two related defendants from the Arevalo-Chavez indictment, Jorge Alexander De La Cruz, also known as “Cruger de Peatonales,” and Francisco Javier Roman-Bardales, also known as “Veterano de Tribus,” remain at large.  Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s tip line at (866) 347-2423 or https://www.ice.gov/webform/ice-tip-form.  Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the fugitives. 

These charges are allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  If convicted, Jandres-Parada faces a maximum sentence of life in prison.

This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13, led by Assistant United States Attorney John J. Durham of the EDNY, and comprised of U.S. Attorney’s Offices across the country, including the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; HSI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the USMS; the U.S. Bureau of Prisons; and the United States Agency for International Development, Office of Inspector General have been essential law enforcement partners and spearheaded JTFV’s investigations.

The government’s case is being prosecuted by Assistant U.S. Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell from the Office’s Long Island Criminal Division.

Newly Arrested Defendant in U.S. Custody:

FREDY IVAN JANDRES-PARADA (“Lucky de Park View” and “Lacky de Park View”)
Age:  47

Previously Arrested Defendant in U.S. Custody:

ELMER CANALES-RIVERA (“Crook de Hollywood”)
Age:  48

Fugitive Defendants:

CESAR HUMBERTO LOPEZ-LARIOS (“El Grenas de Stoners” and “Oso de Stoners”)
Age:   45

BORROMEO ENRIQUE HENRIQUEZ (“Diablito de Hollywood”)
Age:  45

EFRAIN CORTEZ (“Tigre de Park View” and “Viejo Tigre de Park View”)
Age:  54

RICARDO ALBERTO DIAZ (“Rata de Leewards” and “Mousey de Leewards”)
Age:  51

EDUARDO ERAZO-NOLASCO (“Colocho de Western” and “Mustage de Western”)
Age:  51

EDSON SACHARY EUFEMIA (“Speedy de Park View”)
Age:  49

JOSE FERNANDEZ FLORES-CUBAS (“Cola de Western”)
Age:  49

LEONEL ALEXANDER LEONARDO (“El Necio de San Cocos”)
Age:  44

JOSE LUIS MENDOZA-FIGUEROA (“Pavas de 7-11” and “Viejo Pavas de 7-11”)
Age:  59

HUGO ARMANDO QUINTEROS-MINEROS (“Flaco de Francis”)
Age:  51

SAUL ANTONIO TURCIOS (“Trece de Teclas”)
Age:  45

ARISTIDES DIONISIO UMANZOR (“Sirra de Teclas”)
Age:  46

E.D.N.Y. Docket No.: 20-CR-577 (JMA)

Hoy, Fredy Iván Jandres-Parada, también conocido como “Lucky de Park View” y “Lacky de Park View”, un cabecilla de alto rango de La Mara Salvatrucha, también conocida como la MS-13 fue instruído de cargos en el Tribunal Federal en Central Islip, Nueva York ante el Juez Magistrado Federal  Steven L. Tiscione.  Jandres-Parada y otros 13 cabecillas de alto rango de la MS-13 fueron acusados formalmente en diciembre de 2020, por delitos de terrorismo relacionados con su dirección de las actividades criminales transnacionales de la organización criminal en los Estados Unidos, El Salvador, México, y otros lugares durante las últimas dos décadas. Específicamente a Jandres-Parada se le imputan cargos de conspiración para proporcionar y ocultar apoyo material a terroristas, conspiración para cometer actos de terrorismo que trascienden las fronteras nacionales, conspiración para financiar el terrorismo y conspiración para el narcoterrorismo. Durante más de tres años, Jandres-Parada era prófugo de la justicia, pero fue detenido por el FBI y HSI antes este mes y tuvo su primera comparecencia en el Tribunal Federal en el Distrito Sur de California, donde se dió la orden de trasladarle bajo custodia al Distrito Este de Nueva York.

Breon Peace, Fiscal Federal de los Estados Unidos para el Distrito Este de Nueva York (EDNY), Mehtab Syed, Director Adjunto Encargado en Funciones de la Oficina Regional de Los Ángeles del FBI, y Ivan J. Arvelo, Agente Especial Encargado en Funciones de la Oficina Regional de HSI en Nueva York anunciaron la detención e instrucción de cargos de Jandres-Parada.

“Se alega que Jandres-Parada, un líder de alto nivel en la MS-13, participó en el tráfico de estupefacientes, en muestras públicas y privadas de violencia y en el terrorismo - todo en búsqueda de poder para la organización” dijo el Fiscal Federal Peace. “Esta detención es un logro monumental para nuestra Oficina y los socios internacionales, recalcando nuestra dedicación para desmantelar la MS-13 y su reino de terror, donde sea que se escondan.”

El Sr. Peace expresó su agradecimiento a la Oficina Regional del FBI en Los Ángeles y a la Unidad Contra Pandillas para Calles Seguras de la División de Investigaciones Criminales, y a la Unidad contra Pandillas Nacionales y Delitos Violentos del HSI y a la Oficina Regional en Nueva York por encabezar las investigaciones de la MS-13. Además dió las gracias a los Agregados Legales del FBI en la Ciudad de México y San Salvador, las Oficinas Regionales del FBI y HSI en San Diego, al Agregado de HSI en la Ciudad de México, al Agregado en Tijuana,  al Agregado Adjunto del USMS en la Ciudad de México, y a los Oficiales de los Estados Unidos de Aduanas y  Protección de las Fronteras en el Puerto de Entrada de San Ysidro por el apoyo crítico que proporcionaron relacionado con la detención, y a la Oficina del Fiscal Federal y al Servicio de Marshals para el Distrito Sur de California por coordinar la comparecencia inicial del acusado en San Diego. El Sr. Peace también agradeció a numerosos componentes del Departamento de Justicia que contribuyeron a esta Acusación Formal del Gran Jurado (Indictment), incluyendo la Sección Contra el Terrorismo de la División de Seguridad Nacional, y a la Oficina Ejecutiva de los Grupos de Trabajo Contra el Crimen Organizado.

“La detención de Jandres-Paarada muestra el compromiso del FBI para proteger al pueblo norteamericano persiguiendo proactivamente a los líderes de más alto rango en la MS-13 para desmantelar esta organización criminal transnacional, que figura entre las más violentas en el mundo entero” dijo Mehtab Syed, Director Adjunto en Funciones Encargado de la Oficina Regional del FBI en Los Ángeles. “Este esfuerzo colaborativo entre muchas agencias abarcaba desde una de nuestras costas hasta la otra, y llevó a esta captura exitosa.”

“Fredy Ivan Jandres-Parada, (a/k/a) “Lucky”) ha sido un prófugo de la Justicia en la Lista de los Más Buscados del HSI desde 2021. Como uno de los miembros fundadores de la pandilla callejera MS-13, se alega que Jandres-Parada  es responsable por ordenar actos de violencia contra pandillas rivales, contra las autoridades de orden público, y contra civiles. Sin embargo el reino de violencia de Jandres-Parada terminó cuando fue detenido en una operación conjunta de HSI y el FBI”, dijo Darren B. McCormack, Agente Especial Encargado en Funciones de la Oficina Regional de HSI en Nueva York. “Con la detención de uno de los más buscados de HSI, felicito a HSI en Nueva York, a nuestra División en Long Island, y a nuestros compañeros en las fuerzas de órden público por su compromiso constante y su empeño para asegurar que se haga justicia para las víctimas incontables que han sido afectados por la violencia de la MS-13”.

Según la Acusación Formal (Indictment), y documentación pertinente radicada en la Corte, Jandres-Parada y sus coacusados forman parte de la estructura de mando y control de la MS-13, que consiste en la Ranfla Nacional, Ranfla en Las Calles, y Ranfla en los Penales. Juegan un papel importante de liderazgo en las operaciones de la organización en El Salvador, México, los Estados Unidos, y en todo el mundo. En total, 27 de los líderes de más alto rango de la MS-13 han sido imputados con cargos en el Distrito Este de Nueva York en esta Acusación Formal del Gran Jurado (Indictment), y la Acusación Formal (Indictment) relacionado de los Estados Unidos v. Arévalo-Chávez, et al.

Además se alega que, en aproximadamente 2002, Jandres-Parada, sus coacusados, y otras cabecillas de la MS-13 empezaron a establecer una estructura de hierarquía de mando y control muy organizada como mecanismo para hacer cumplir sus decisiones y ejecutar su órdenes, aún estando encarcelados. Dirigían actos de violencia y asesinatos en El Salvador, los Estados Unidos y en otros lugares, establecieron campamentos de entrenamiento estilo militar para miembros de la MS-13 y obtuvieron armas militares tales como fusiles, pistolas, granadas, artifactos explosivos improvisados, y lanzacohetes. Además, comenzando en aproximadamente 2012, Jandres-Parada y otros miembros de la Ranfla Nacional negociaron con funcionarios del gobierno de El Salvador (GOES) para obtener beneficios y concesiones del gobierno. Para extorsionar esos beneficios y concesiones, la MS-13 participó en muestras públicas de violencia para amenazar e intimidar a las poblaciones civiles, poner en su mira a las fuerzas GOES de orden público y a oficiales militares, y a manipular el proceso electoral en El Salvador.

Además según se alega, la Ranfla Nacional dirigía la expansión de las actividades de la MS-13 por todo el mundo, incluyendo los Estados Unidos y México, donde Jandres-Parada y otros líderes de alto rango, fueron enviados para organizar las operaciones, establecer vínculos para obtener drogas y armas de fuego de carteles Mexicanos tales como los Zetas,  el Cartel del Golfo, el Cartel de Jalisco Nueva Generación (CJNG), y el Cartel de Sinaloa, y participar en la trata de personas y contrabando. La Ranfla Nacional también dirigía a la membresía numerosa de la MS-13 en los Estados Unidos, para su participación en actividades criminales, tales como el narcotráfico y la extorsión para recaudar dinero para apoyar las actividades terroristas de la MS-13 en El Salvador y otros lugares. Jandres-Parada, que antes vivía en el área de Los Ángeles, antes de ser deportado a El Salvador, tenía un puesto clave coordinando la comunicación y la actividad criminal entre la Ranfla Nacional y las cabecillas de la MS-13 en los Estados Unidos, México y otros lugares.

Y por último, se alega que la Ranfla Nacional y que la estructura transnacional del liderazgo de la MS-13 han dado órdenes a miembros en los Estados Unidos para cometer actos de violencia para promover sus objetivos e implementar reglas para  la MS-13,  establecerse en algunas partes de los Estados Unidos, incluyendo el Distrito Este de Nueva York, donde, bajo el liderazgo y las reglas de los acusados, la MS-13 ha cometido asesinatos, atentados de asesinatos, agresiones, secuestros, narcotráfico, extorsión de personas y negocios, y obstrucción de la justicia, y ha enviado las cuotas y ganancias de la actividad criminal a través de  giros electrónicos a los líderes de la MS-13 en El Salvador. Por ejemplo, la División en Long Island de esta Oficina ha procesado a cientos de líderes, miembros y asociados de la MS-13 por llevar a cabo más de 70 asesinatos en el Distrito Este de Nueva York desde 2009 hasta hoy.

Uno de los coacusados de Jandres-Parada, César Humberto López-Larios, también conocido como “El Grenas de Stoners” y “Oso de Stoners”, y dos acusados relacionados con la Acusación Formal (Indictment) de Arévalo-Chávez, Jorge Alexander De La Cruz, también conocido como “Cruger de Peatonales” y Francisco Javier Román-Bardales, también conocido como “Veterano de Tribus” siguen en libertad. Se anima a los miembros del público que tengan información sobre sus paraderos que se pongan en contacto en la línea gratis del FBI línea de información sobre MS-13, 1-866-STP-MS13 (1-866-787-6713) o la línea de información de HSI al (866) 347-2423 o https://www.ice.gov/webform/ice/tip/form. Juntos, el  FBI y el HSI ofrecen una recompensa de $20,000 por información que lleva a la detención y condena de los prófugos.

Estos cargos son alegatos, y se presume la inocencia del acusado hasta y cuando se pruebe su culpabilidad más allá de una duda razonable en una Corte de Justicia. Si es condenado, Jandres-Parada confronta una condena máxima de cadena perpetua en prisión.

La imputación en este caso viene del Grupo de Trabajo Conjunto Vulcan (JTFV) que fue creado para combatir a la MS-13, encabezado por el Fiscal Adjunto John J. Durham de EDNY, y compuesto de las Oficinas de las Fiscalías Federales en todo el país, incluyendo el Distrito de Nueva Jersey, el Distrito Norte de Ohio, el Distrito de Utah, el Distrito de Massachusetts, el Distrito Este de Texas, el Distrito Sur de Nueva York, el Distrito Sur de la Florida, el Distrito Este de Virginia, el Distrito Sur de California, el Distrito de Nevada, el Distrito de Alaska, y el Distrito de Columbia, además de la División de Seguridad Nacional del Departamento de Justicia y la División Criminal. También el FBI, HSI, la DEA, el Bureau de Alcohol, Tabaco, Armas de Fuego y Explosivos, el USMS, la Junta Federal de Prisiones, y la Agencia de Estados Unidos para el Desarrollo Internacional, Oficina del Inspector General. Todos han sido socios esenciales y han promovido las investigaciones del JTFV.

La causa por parte del Gobierno será procesada por los Fiscales Federales Adjuntos John J. Durham, Paul G. Scotti, Justina L. Geraci, y Megan E. Farrell de la División Criminal de la Oficina en Long Island.

Acusado Recién Detenido en la Custodia de los Estados Unidos.

FREDY IVAN JANDRES-PARADA (“Lucky de Park View” y “Lacky de Park View”)
Age:  47

Acusado Detenido Antes en la Custodia de los Estados Unidos.

ELMER CANALES-RIVERA (“Crook de Hollywood”)
Age:  48

Acusados Prófugos de la Justicia:

CESAR HUMBERTO LOPEZ-LARIOS (“El Grenas de Stoners” y “Oso de Stoners”)
Age:   45

BORROMEO ENRIQUE HENRIQUEZ (“Diablito de Hollywood”)
Age:  45

EFRAIN CORTEZ (“Tigre de Park View” y “Viejo Tigre de Park View”)
Age:  54

RICARDO ALBERTO DIAZ (“Rata de Leewards” y “Mousey de Leewards”)
Age:  51

EDUARDO ERAZO-NOLASCO (“Colocho de Western” y “Mustage de Western”)
Age:  51

EDSON SACHARY EUFEMIA (“Speedy de Park View”)
Age:  49

JOSE FERNANDEZ FLORES-CUBAS (“Cola de Western”)
Age:  49

LEONEL ALEXANDER LEONARDO (“El Necio de San Cocos”)
Age:  44

JOSE LUIS MENDOZA-FIGUEROA (“Pavas de 7-11” y “Viejo Pavas de 7-11”)
Age:  59

HUGO ARMANDO QUINTEROS-MINEROS (“Flaco de Francis”)
Age:  51

SAUL ANTONIO TURCIOS (“Trece de Teclas”)
Age:  45

ARISTIDES DIONISIO UMANZOR (“Sirra de Teclas”)
Age:  46

E.D.N.Y  Causa No: 20-CR-577 (JMA)    

Earlier today, at the federal courthouse in Central Islip, Trevor Lawry was sentenced by United States District Judge Joan M. Azrack to 96 months in prison for orchestrating a yearslong conspiracy to divert Oxycodone and other prescription medications from a Hempstead pharmacy into the illicit market. 

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA), and Naomi Gruchacz, Special Agent-in-Charge, New York Regional Office, Department of Health and Human Services Office of Inspector General, announced the sentence.

“While communities across the country reeled from an opioid epidemic, this defendant operated an elaborate scheme that illegally diverted huge quantities of prescription medications into the hands of drug users, including people struggling with addiction,” stated United States Attorney Peace.  “This Office will continue doing its part to find and hold responsible individuals at all levels of the illegal supply chain who contribute to the scourge of opioids in this District.” 

United States Attorney Peace thanked the New York State Bureau of Narcotic Enforcement, the New York City Human Resources Administration, the New York Police Department, and the Nassau County Police Department for their significant contributions to the investigation.

DEA New York Division Special Agent in Charge Frank Tarentino stated “For two years, Lawry spearheaded a diverted prescription drug trafficking conspiracy using forged prescriptions, putting profits above public health. This sentencing stands as a testament to our commitment in combatting the scourge of opioids being sold on the street, and those responsible for selling them.”

“HHS-OIG is committed to working with our law enforcement partners to combat the illegal distribution of controlled substances to patients enrolled in HHS programs,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “The defendants in this drug trafficking organization are being held responsible for wantonly disregarding responsible prescribing practices, seemingly exploiting the opioid epidemic affecting our communities.”

As set forth in court filings, between February 2018 and March 2020, Lawry headed a drug trafficking organization that used forged paper prescription forms—sourced from stolen prescription pads—to obtain large quantities of several controlled substances that are commonly diverted for recreational use:  Oxycodone, Adderall, Alprazolam (also known as “Xanax”), and Promethazine with Codeine syrup.  During the relevant time period, more than 500 fraudulent prescriptions for these medications were filled at D.R.A. Pharmakon, Inc. d/b/a D’s Pharmacy (D’s Pharmacy) in Hempstead, where one of Lawry’s co-conspirators worked as a pharmacist.  In total, the conspiracy involved nearly a kilogram’s worth of stolen prescription medication, which Lawry and his co-conspirators then advertised for sale on social media and eventually sold at street level. 

The government’s case is being prosecuted by the Office’s Long Island Criminal Division.  Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution, with assistance from the Office’s Special Agent Michael J. Cassidy.

The Defendant:

TREVOR LAWRY
Age: 38
Hempstead, New York

E.D.N.Y. Docket No. 22-CR-506 (JMA)