Eastern District of New York

A three-count indictment was unsealed this morning in federal court in Brooklyn charging Raymond John Pirrello, Jr., also known as “Ray John,” with securities fraud conspiracy, wire fraud conspiracy and securities fraud relating to a scheme to defraud investors and prospective investors in securities offered by Late Stage Management, LLC through several sales offices, including Prior2IPO which he controlled.  Pirrello allegedly made material misrepresentations and omissions relating to, among other things, the existence and amount of fees paid by investors in stock offered by Late Stage.  Late Stage offered investors “no fee” opportunities to invest in “Pre IPO” stocks, i.e., shares of stock in companies that anticipated an initial public offering (“IPO”) in the near term.  Pirrello was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge James M. Cho. 

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 charges.  

“As alleged, the defendant lied to investors by claiming that the investments made through Late Stage carried no fees and that their full investment would be used to purchase stock, when in reality he was paying himself significant fees on each investment,” stated United States Attorney Peace.  “This Office will vigorously prosecute those who think it is business as usual to abuse the trust of their clients and profit through fraud.” 

Mr. Peace expressed his appreciation to the Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance during the investigation. 

"Lying and making material misrepresentations to investors is not just dishonest and bad business, but also a crime. Raymond Pirrello is alleged to have done just that when he advertised no-fee opportunities. In reality there were significant up-front fees from which he personally benefited.  The FBI is committed to holding accountable those who seek to profit from lies,” stated FBI Assistant Director-in-Charge Smith.

As set forth in the indictment and other court documents, Late Stage was a New Jersey based manager of investment funds that bought and sold stock issued by privately held companies that anticipated an IPO.  Late Stage worked with several sales offices throughout New Jersey, New York and Florida in order to promote the investments.  The salespeople used pitches devised by Pirrello and his co-conspirators which consistently touted that the investments carried no upfront fee, and claimed that the only time Late Stage profited was on exit, when the company made its IPO or sold to a larger company, in which case it would be entitled to a 20% share of the investor’s profits.  In reality, Late Stage charged substantial fees in the form of markups of stock ranging from 10 to 50% of the stock’s actual per share price.  In total, between approximately March 2019 and July 2022, sales offices working on behalf of Late Stage raised approximately $528 million from investors and diverted approximately $88.6 million in undisclosed upfront markups to Pirrello and his co-conspirators.   

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Pirrello faces a maximum sentence of 20 years’ imprisonment.

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

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

If you believe that you or someone you know was victimized by Pirrello, please inform the FBI at the following website: www.fbi.gov/Pirrello or by calling 1-800-CALL-FBI. 

The Defendants:

RAYMOND JOHN PIRRELLO, JR.
Age:  47
Sparta, New Jersey

E.D.N.Y. Docket No. 23-CR-499

A two-count indictment was unsealed yesterday in federal court in Brooklyn, New York, charging Vladimir Jovancic, a Bosnian national, with obstructing justice and assisting escape for his role in helping Artem Uss flee from Italy to Russia following an Italian court ruling that Uss would be extradited to the United States.  Uss had previously been charged in United States v. Orekhov et al. with heading a global scheme to smuggle millions of dollars in sensitive military and dual-use technologies and oil from Venezuela to sanctioned Russian oligarchs and companies.  Jovancic was arrested yesterday in the Republic of Croatia and will be arraigned in the Eastern District of New York at a future date.

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

“As alleged, this defendant brazenly helped Artem Uss escape justice on an indictment charging Uss for his actions in fueling Russia’s war in Ukraine, evading sanctions and enabling oligarchs,” stated United States Attorney Peace.  “I want to thank our partners in Italy for their valuable assistance and support.  We will continue to work together to make sure everyone involved in this flagrant scheme to obstruct justice is held accountable.” 

United States Attorney Peace also thanked the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office, the Justice Department’s Office of International Affairs, Task Force Kleptocapture Milan Prosecutor’s Office (Procura della Repubblica presso il Tribunale di Milano), the Carabinieri, the Ministry of Justice, and Croatian authorities for their assistance.

“The defendant allegedly helped a Kremlin crony jump bail in order to evade justice—but now finds himself captured by the long arm of U.S. law enforcement,” said Deputy Attorney General Lisa Monaco. “This case demonstrates the reach of the Department of Justice and further exposes the criminal networks propping up the Russian regime as it wages its unlawful and unprovoked war in Ukraine.”   

“Vladimir Jovancic was arrested yesterday for allegedly orchestrated Artem Uss’s escape from Italy by cutting off his ankle monitor and smuggling him through multiple countries.  The action yesterday is a stark reminder – if you interfere with U.S. legal proceedings anywhere around the world, the FBI will find you, we will arrest you, and we will bring you to justice.  Artem Uss remains a fugitive, no matter how often he leverages connections with criminal groups in Europe he is only temporarily evading imprisonment; we are confident that today’s reward announcement will aid in bringing an end to Uss’s transient criminality and he will soon find himself back in U.S. custody.  The FBI and our international partners will continue to work together to thwart attempts to evade sanctions imposed against Russia’s aggression against Ukraine,” stated FBI Assistant Director-in-Charge Smith.

Artem Uss      

As alleged in the indictment and other court filings, Uss is the son of Alexander Uss, the governor of Russia’s Krasnoyarsk Krai region and a close ally of President Vladimir Putin.  Uss has ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, as well as a senior position with a subsidiary of Rosneft, a sanctioned Russian state-controlled oil conglomerate.  Uss also had several significant holdings in Italy, including a luxury hotel in Sardinia, a vineyard and other real estate.

Uss and his business partner, Yury Orekhov, orchestrated a transnational fraud, smuggling and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately held industrial equipment and commodity trading company located in Hamburg, Germany.  Uss and Orekhov each owned fifty percent of NDA GmbH.  Using NDA GmbH as a front company, Uss and Orekhov sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites, and other space-based military applications.  These items were shipped to Russian end users, including sanctioned companies that serviced Russia’s defense sector.  Some of the types of electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine.  Uss and Orekhov also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China. 

Uss’ Escape   

Uss was apprehended in Milan, Italy on October 17, 2022, pursuant to a provisional arrest request from the United States.  Following his arrest, and over the objection of both Italian and U.S. prosecutors, Uss was released on bail to home detention at his Milan residence with electronic monitoring.  On March 21, 2023, the Italian court approved Uss’ extradition to the United States.  The next day, on March 22, 2023, Uss escaped from home detention and fled Italy, ultimately arriving in Russia, with the assistance of several individuals, including Vladimir Jovancic. 

The investigation into Uss’ escape revealed that, in or about January 2023, Jovancic and other individuals affiliated with a Serbian organized crime group were recruited by Uss to help him flee to Russia in the event extradition was granted.  Jovancic met Uss’ wife at a hotel in Milan, Italy, where they planned for Jovancic to deliver groceries to Uss’ residence in Milan as a pretext so that Jovancic’s presence would not raise suspicion if an escape was necessary.  Uss’ wife also provided Jovancic with a cell phone and a 10,000 euro deposit for his services.  Jovancic was later provided with a keycard to directly access Uss’ residence.

On the day of Uss’ escape, following the Italian court’s decision to extradite Uss to the United States, Jovancic and several other coconspirators went to Uss’ residence.  Once there, Jovancic escorted Uss into a car and provided Uss with bolt cutters.  Uss used the bolt cutters to remove his electronic ankle monitor and throw the monitoring device out the window.  Jovancic and his coconspirators then drove Uss across the border into Slovenia.  Over the next several days, Jovancic and his coconspirators shuttled Uss through Slovenia, Croatia and Bosnia and Herzegovina before crossing into Serbia, where Uss paid Jovancic an additional 40,000 euro before boarding a plane to Russia.  

If convicted, Jovancic faces a maximum of 20 years’ imprisonment.  The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

In conjunction with yesterday’s arrest, the State Department announced a reward offer of up to $7 million under the Transnational Organized Crime Rewards Program for information leading to the arrest or conviction of Uss.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

The Defendant:

Vladimir JOVANCIC
AGE: 52
Sarajevo, Bosnia and Herzegovina

E.D.N.Y. Docket No. 23-CR-430 (RPK)

A two-count indictment was unsealed yesterday in federal court in Brooklyn, New York, charging Vladimir Jovancic, 52, a Bosnia and Herzegovina national who resides in Serbia, with obstructing justice and assisting escape from custody. Jovancic was arrested on Dec. 4 in the Republic of Croatia. In a related operation, Italian authorities separately arrested a second suspect in Italy on Dec. 4.

As alleged, Jovancic is one of several individuals who helped Artem Uss, a defendant in United States. v. Orekhov et al., flee from Italy to Russia following an Italian court ruling that Uss would be extradited to the United States to face charges. Uss is charged with heading a global scheme to smuggle millions of dollars in sensitive military and dual-use technologies and oil from Venezuela to sanctioned Russian oligarchs and companies.

“The defendant allegedly helped a Kremlin crony jump bail in order to evade justice — but now finds himself captured by the long arm of U.S. law enforcement,” said Deputy Attorney General Lisa Monaco. “This case demonstrates the reach of the Department of Justice and further exposes the criminal networks propping up the Russian regime as it wages its unlawful and unprovoked war in Ukraine.”   

“As alleged, this defendant brazenly helped Artem Uss escape justice on an indictment charging Uss for his actions in fueling Russia’s war in Ukraine, evading sanctions and enabling oligarchs,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I want to thank our partners in Italy for their valuable assistance and support. We will continue to work together to make sure everyone involved in this flagrant scheme to obstruct justice is held accountable.” 

“The defendant’s flagrant disregard for the rule of law has not gone unanswered. This indictment and arrest demonstrate the FBI’s continued focus on holding accountable those who assist criminals attempting to evade U.S. law, regardless of where they may try to hide,” said FBI Deputy Director Paul Abbate. “The FBI, along with our international partners, will continue to aggressively investigate, pursue, and prosecute those who facilitate corrupt practices that place our nation and our institutions at risk.”

“Today’s actions are a warning to anyone who is thinking about unlawfully aiding sanctioned Russian elites and their enablers,” said Co-Director of Task Force KleptoCapture David Lim.  “If you break our laws, we will use every available tool and leverage our strong international partnerships to pursue you until you are brought to justice.”   

Concurrent with this law enforcement action, the State Department announced a reward offer of up to $7 million under the Transnational Organized Crime Rewards Program (TOCRP) for information leading to the arrest or conviction of Artem Aleksandrovich Uss.

As alleged in the indictment and other court filings, Uss is the son of Alexander Uss, the governor of Russia’s Krasnoyarsk Krai region and a close ally of President Vladimir Putin. Uss has ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, as well as a senior position with a subsidiary of Rosneft, a sanctioned Russian state-controlled oil conglomerate. Uss also had several significant holdings in Italy, including a luxury hotel in Sardinia, a vineyard and other real estate.

Uss and his business partner, Yury Orekhov, allegedly orchestrated a transnational fraud, smuggling and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately-held industrial equipment and commodity trading company located in Hamburg, Germany. Uss and Orekhov each owned 50% of NDA GmbH. Using NDA GmbH as a front company, Uss and Orekhov sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites and other space-based military applications. These items were shipped to Russian end users, including sanctioned companies that serviced Russia’s defense sector. Some of the types of electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine. Uss and Orekhov also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China.

Uss was apprehended in Milan, Italy, on Oct. 17, 2022, pursuant to a provisional arrest request from the United States. Following his arrest, and over the objection of both Italian and U.S. prosecutors, Uss was released on bail to home detention at his Milan residence with electronic monitoring. On March 21, the Italian court approved Uss’ extradition to the United States. The next day, Uss escaped from home detention and fled Italy, ultimately arriving in Russia, with the assistance of several individuals, including Vladimir Jovancic.

The investigation into Uss’ escape revealed that, in or about January 2023, Jovancic and other individuals affiliated with a Serbian organized crime group were recruited by Uss to help him flee to Russia in the event extradition was granted. Jovancic met Uss’ wife at a hotel in Milan, Italy, where they planned for Jovancic to deliver groceries to Uss’ residence in Milan as a pretext so that Jovancic’s presence would not raise suspicion if an escape was necessary. Uss’ wife also provided Jovancic with a cell phone and a 10,000-euro deposit for his services. Jovancic was later provided with a keycard to directly access Uss’ residence.

On the day of Uss’ escape, following the Italian court’s decision, Jovancic and several other co-conspirators went to Uss’ residence. Once there, Jovancic escorted Uss into a car and provided Uss with bolt cutters. Uss used the bolt cutters to remove his electronic ankle monitor and throw the monitoring device out the window. Jovancic and his co-conspirators then drove Uss across the border in Slovenia. Over the next several days, Jovancic and his co-conspirators shuttled Uss through Slovenia, Croatia and Bosnia and Herzegovina before crossing into Serbia, where Uss paid Jovancic an additional 40,000 euro before boarding a plane to Russia.

If convicted, Jovancic faces a maximum penalty of 20 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 and Department of Commerce’s Office of Export Enforcement New York Field Office are investigating the case, with valuable assistance provided by the Justice Department’s Office of International Affairs. The Justice Department thanks the Croatian authorities and the Italian authorities for their critical collaboration, specifically, the Milan Prosecutor’s Office (Procura della Repubblica presso il Tribunale di Milano), the Carabinieri and the Ministry of Justice.

Assistant U.S. Attorney Artie McConnell for the Eastern District of New York is prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

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

오늘 오전 뉴욕 브루클린의 연방법원에서 마이클 리라고도 알려진 현 W. 리(Hyun W. Lee)는 자신의 부동산 고객과 그 거래 상대로부터 변호사 에스크로 계좌에 보관된 자금을 가로챈 사기 행각과 관련한 전신 금융사기 혐의에 대해 유죄를 인정했습니다. 오늘 재판은 파멜라 K. 첸(Pamela K. Chen) 미국 지방법원 판사 앞에서 진행되었습니다. 판결이 확정되면, 이 씨는 최대 20년의 징역형을 선고받게 됩니다. 또한 이 씨는 몰수 금으로 327만 달러를 지불하기로도 합의했습니다.

뉴욕 동부 지역의 브리온 피스 변호가 유죄 인정 사실을 발표했습니다.

"오늘 유죄를 인정함으로써 이 씨는 자신의 변호사 자격이 정지되고 박탈된 후에도 변호사 자격을 유지한 것처럼 한인 사회 구성원을 속이고 그들이 맡긴 수백만 달러를 훔쳤다는 사실을 인정했습니다"라고 미국 변호사 브리온 피스는 말했습니다. "신뢰를 기반으로 하는 지위를 이용해 타인을 속이는 사람들에게 책임을 묻는 동시에 지역사회를 보호하는 것은 이 사무실의 최우선 과제이며 앞으로도 계속될 것입니다."

피스 씨는 이번 수사에 도움을 준 퀸스 카운티 지역 변호사 사무실에 감사의 뜻을 표했습니다.

                  법원에 제출된 서류와 변론 과정에서 제시된 사실에 따르면, 이 씨는 자신의 에스크로 계좌에 예치된 자금을 풀어줄 것이라는 허위 진술로 고객과 거래 상대가 부동산 구매를 위해 자신에게 자금을 맡기도록 유도했습니다. 그러나 이 씨는 이 자금을 유용하여 카지노에서 도박하거나 자신이 일부 지분을 소유한 식당의 비용을 지불하는 등 자신의 이익을 위해 전용했습니다. 또한 이 씨는 자신이 부동산 매매와 관련하여 고객을 대리하고 부동산 거래와 관련하여 자금을 수령하여 에스크로 계좌에 보관할 수 있는 권한을 가진 변호사라고 허위 진술했습니다. 사실, 이 씨는 뉴욕주 변호사 자격이 정지되었고 이후 변호사 자격이 박탈되었습니다. 그 결과 이 씨는 고객과 제삼자로부터 자금을 받을 자격도 없었습니다.

이 사기를 진행하면서 이 씨는 에스크로 계좌에 보관된 자금 상태에 대해 고객이 그 자금이 안전하다고 믿도록 문서를 조작하여 고객을 오도했습니다. 이 씨가 고객들에게 보여준 서류에는 자신의 에스크로 계좌 잔액이 거의 300만 달러에 달한다고 되어 있었지만, 실제로는 약 2만 5천 달러까지로 고갈된 상태였습니다. 이 씨는 에스크로 계좌에서 자금을 인출해 달라는 고객과 거래 상대의 요청을 이행하지 않았으며, 이 씨가 이미 계좌의 자금을 거의 모두 사용한 상태에서도 남은 자금을 공평하게 분배하는 방법을 모색 중이라고 거짓으로 주장했습니다.

이 씨 또는 위법 행위에 연루된 다른 뉴욕 변호사들의 행위로 인해 손해를 입은 피해자는 변호사 고객 보호 기금에 청구서를 제출하거나 전화 (800) 442-3863 또는 이메일(info@nylawfund.org)로 연락하면 보상 자격이 있을 수 있습니다.

이 사건은 미국 법무부 기업 및 증권 사기 부서의 히랄 메타(Hiral D. Mehta) 부검사와 브라이언 모리스(Brian D. Morris) 검사가 특수 요원 마틴 설리번(Martin Sullivan)과 법률 보조 전문가 페이튼 제퍼슨(Peyton Jefferson)의 도움을 받아 기소 중입니다.

피고:

HYUN W. LEE, 일명 "마이클 리"
나이: 51 
클로스터, 뉴저지주 클로스터 거주

E.D.N.Y. 적요서 번호 23-CR-465(PKC)

오늘 오전 뉴욕 브루클린의 연방법원에서 마이클 리라고도 알려진 현 W. 리(Hyun W. Lee)는 자신의 부동산 고객과 그 거래 상대로부터 변호사 에스크로 계좌에 보관된 자금을 가로챈 사기 행각과 관련한 전신 금융사기 혐의에 대해 유죄를 인정했습니다. 오늘 재판은 파멜라 K. 첸(Pamela K. Chen) 미국 지방법원 판사 앞에서 진행되었습니다. 판결이 확정되면, 이 씨는 최대 20년의 징역형을 선고받게 됩니다. 또한 이 씨는 몰수 금으로 327만 달러를 지불하기로도 합의했습니다.

뉴욕 동부 지역의 브리온 피스 변호가 유죄 인정 사실을 발표했습니다.

"오늘 유죄를 인정함으로써 이 씨는 자신의 변호사 자격이 정지되고 박탈된 후에도 변호사 자격을 유지한 것처럼 한인 사회 구성원을 속이고 그들이 맡긴 수백만 달러를 훔쳤다는 사실을 인정했습니다"라고 미국 변호사 브리온 피스는 말했습니다. "신뢰를 기반으로 하는 지위를 이용해 타인을 속이는 사람들에게 책임을 묻는 동시에 지역사회를 보호하는 것은 이 사무실의 최우선 과제이며 앞으로도 계속될 것입니다."

피스 씨는 이번 수사에 도움을 준 퀸스 카운티 지역 변호사 사무실에 감사의 뜻을 표했습니다.

                  법원에 제출된 서류와 변론 과정에서 제시된 사실에 따르면, 이 씨는 자신의 에스크로 계좌에 예치된 자금을 풀어줄 것이라는 허위 진술로 고객과 거래 상대가 부동산 구매를 위해 자신에게 자금을 맡기도록 유도했습니다. 그러나 이 씨는 이 자금을 유용하여 카지노에서 도박하거나 자신이 일부 지분을 소유한 식당의 비용을 지불하는 등 자신의 이익을 위해 전용했습니다. 또한 이 씨는 자신이 부동산 매매와 관련하여 고객을 대리하고 부동산 거래와 관련하여 자금을 수령하여 에스크로 계좌에 보관할 수 있는 권한을 가진 변호사라고 허위 진술했습니다. 사실, 이 씨는 뉴욕주 변호사 자격이 정지되었고 이후 변호사 자격이 박탈되었습니다. 그 결과 이 씨는 고객과 제삼자로부터 자금을 받을 자격도 없었습니다.

이 사기를 진행하면서 이 씨는 에스크로 계좌에 보관된 자금 상태에 대해 고객이 그 자금이 안전하다고 믿도록 문서를 조작하여 고객을 오도했습니다. 이 씨가 고객들에게 보여준 서류에는 자신의 에스크로 계좌 잔액이 거의 300만 달러에 달한다고 되어 있었지만, 실제로는 약 2만 5천 달러까지로 고갈된 상태였습니다. 이 씨는 에스크로 계좌에서 자금을 인출해 달라는 고객과 거래 상대의 요청을 이행하지 않았으며, 이 씨가 이미 계좌의 자금을 거의 모두 사용한 상태에서도 남은 자금을 공평하게 분배하는 방법을 모색 중이라고 거짓으로 주장했습니다.

이 씨 또는 위법 행위에 연루된 다른 뉴욕 변호사들의 행위로 인해 손해를 입은 피해자는 변호사 고객 보호 기금에 청구서를 제출하거나 전화 (800) 442-3863 또는 이메일(info@nylawfund.org)로 연락하면 보상 자격이 있을 수 있습니다.

이 사건은 미국 법무부 기업 및 증권 사기 부서의 히랄 메타(Hiral D. Mehta) 부검사와 브라이언 모리스(Brian D. Morris) 검사가 특수 요원 마틴 설리번(Martin Sullivan)과 법률 보조 전문가 페이튼 제퍼슨(Peyton Jefferson)의 도움을 받아 기소 중입니다.

피고:

HYUN W. LEE, 일명 "마이클 리"
나이: 51 
클로스터, 뉴저지주 클로스터 거주

E.D.N.Y. 적요서 번호 23-CR-465(PKC)

Earlier today, Stuart Conklin, a former employee of the Long Island Rail Road (LIRR), pleaded guilty to making a false entry in a report required to be kept by the LIRR under federal laws governing rail road safety and operations.  Conklin was charged with the offense in a criminal complaint in March 2021 and subsequently indicted in April 2022.  Today’s proceeding was held before United States District Judge Joanna Seybert.  When sentenced, the defendant faces up to two years in prison.    

Breon Peace, the United States Attorney for the Eastern District of New York; Christopher A. Scharf, Special Agent-in-Charge, United States Department of Transportation; and Daniel G. Cort, Inspector General for the Metropolitan Transportation Authority, announced the guilty plea.

“As dramatically evidenced by the derailment, the rail bond Conklin falsely claimed to have inspected was a critical piece of rail road equipment, essential to ensuring the safety of passengers,” said United States Attorney Peace.  “While thankfully no one was seriously hurt in this accident, it is a stark reminder of the importance federal oversight plays in the safety and integrity of our transportation system.” 

“Anyone choosing to intentionally ignore Federal laws and requirements put in place to ensure the safety of the traveling public will be pursed to the fullest extent of the law,” stated DOT-OIG Special Agent-in-Charge Christopher A. Scharf. “Today’s guilty plea is the result of an unwavering commitment to safety demonstrated together with our law enforcement and prosecutorial partners.”

“Falsifying inspection reports puts the safety of the public and MTA employees and property at risk.” said MTA Inspector General Daniel G. Cort.  “Individuals, like Conklin, who shirk their responsibilities and endanger others should be held accountable and I thank the U.S. Attorney’s Office for the Eastern District of New York for their partnership in doing just that.” 

As set forth in the complaint and indictment, Conklin was employed by LIRR as a signalman and his responsibilities included performing regular inspections of rail bonds.  Rail bonds are electronic jumpers around joints in the rails of a railroad track to ensure continuity of conductivity for signal currents.  On April 26, 2019, Conklin falsely indicated in an inspection report that he had inspected a particular rail bond in Speonk, New York and that the bond had passed inspection.  Video footage from a LIRR camera showed that Conklin in fact did not inspect the bond during his shift that day. 

Approximately one month later, on May 23, 2019, a westbound LIRR train collided with the rear of an eastbound train in Speonk, New York.  The rear of the westbound train did not register in the LIRR signal system as occupying a section of side track, causing the eastbound train to be cleared to pass on the main track when there was not enough space to do so. 

A subsequent LIRR investigation determined that the rail bond that Conklin had falsely indicated he had inspected on April 26, 2019, was broken and that the broken rail bond was the cause of the signal malfunction and the derailment. 

The government’s case is being prosecuted by the Office’s Public Integrity Section.  Assistant United States Attorneys Turner Buford and Sara K. Winik are in charge of the prosecution with assistance from Special Agent Rebecca Sidhu and Paralegal Specialist Melissa Bennett. 

The Defendant:

STUART CONKLIN
Age: 66 
Magnolia, TX

E.D.N.Y. Docket No. 22-CR-171 (JS)

Earlier today, Hyun W. Lee, also known as Michael Lee, pleaded guilty at the federal courthouse in Brooklyn, New York to wire fraud in connection with a scheme to defraud his real estate clients and their counterparties of funds held in his attorney escrow account.  Today’s proceeding took place before United States District Judge Pamela K. Chen. When sentenced, Lee faces up to twenty years in prison.  Lee has also agreed to pay $3.27 million dollars in forfeiture.

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

“With today’s guilty plea, Lee has admitted that he preyed upon members of the Korean-American community by holding himself out as a licensed attorney after his suspension and disbarment, only to steal millions of dollars entrusted to him for safekeeping,” stated United States Attorney Breon Peace. “Protecting the community while holding accountable those who use their positions of trust to defraud others is, and will remain, a priority of this Office.”

Mr. Peace expressed his appreciation to the Queens County District Attorney’s Office for their assistance in this investigation.

According to court filings and facts presented during the plea proceeding, Lee induced clients and counterparties to entrust funds to him for the purchase of real estate based on misrepresentations that Lee would release the funds deposited into his escrow account.  Instead, Lee misappropriated these funds and used them for his own benefit, which included gambling at casinos and to pay expenses at a restaurant that he partially owned.  Lee also misrepresented that he was an attorney authorized to represent clients, including in connection with the purchase and sale of real estate, and to receive and hold funds in his escrow account in connection with real estate transactions.  In reality, Lee had been suspended and was subsequently disbarred from engaging in the practice of law in the State of New York.  As a result, Lee was not permitted to accept funds from clients and third parties.

In furtherance of the scheme, Lee misled clients about the status of funds held in his escrow account by fabricating documents leading them to believe their funds were secure.  While documentation Lee showed to clients reflected a balance in Lee’s escrow account of nearly $3 million, in reality Lee had depleted the escrow account down to only approximately $25,000.  Lee then failed to honor requests by clients and their counterparties to release funds from his escrow account, falsely claiming that he was in the process of working out an equitable way to distribute funds that remained when Lee had already spent virtually all of the funds in the account.

Victims who suffered losses as a result of the conduct of Lee, or other New York lawyers who engage in misconduct, may be eligible to receive compensation by filing a claim with the Lawyer’s Fund for Client Protection, which may be reached at (800) 442-3863 or e-mailing info@nylawfund.org.

The government’s case is being prosecuted by Assistant United States Attorneys Hiral D. Mehta and Brian D. Morris of the Office’s Business and Securities Fraud Section with assistance from Special Agent Martin Sullivan and Paralegal Specialist Peyton Jefferson.

The Defendant:

HYUN W. LEE, also known as “Michael Lee”
Age: 51 
Closter, New Jersey

E.D.N.Y. Docket No. 23-CR-465 (PKC)

An indictment was unsealed today in federal court in Brooklyn charging two defendants, Walter Stanzione and William Neogra, with wire fraud conspiracy for systematically defrauding the City of New York.  The defendants are charged with overbilling New York City agencies for more than a decade in connection with contracts to repair and maintain fire alarm systems.  Stanzione is scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak, while Neogra is scheduled to be arraigned before Untied States Magistrate Judge Laura D. Hatcher in the District Court of Delaware.

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

“As alleged in the indictment, the defendants were hired to make sure that the fire alarm systems in hundreds of New York City buildings functioned safely and effectively,” stated United States Attorney Peace.  “The defendants took this as an opportunity to steal and defraud, abusing and betraying their obligations.  This indictment demonstrates our Office’s commitment to holding accountable government contractors who fleece city agencies and taxpayers.”

DOI Commissioner Jocelyn E. Strauber said, “These defendants, as charged, overbilled City agencies for more than a decade, including the Department of Citywide Administrative Services, the Department of Education, the Department of Environmental Protection, and the Department of Sanitation, by submitting fraudulent invoices reflecting inflated prices.  I thank our federal law enforcement partners for their commitment to protect the City’s resources and to hold accountable vendors who use their City contracts to engage in fraud.”

“Doing business with the city is a privilege Neogra and Stanzione allegedly abused for over a decade. Their alleged crimes milked the city of valuable resources. They got used to getting paid more for less, but today it caught up to them,” stated FBI Assistant Director-in-Charge Smith.  

“The defendants in this case took money out of the pockets of hard-working New Yorkers by allegedly overbilling the city with fake invoices and inflated prices.  This fraud affects all those taxpayers who trusted that the City was paying for services rendered.  The defendants are now being held responsible for their criminal acts and will face justice for their decades-long scheme.” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.

As alleged in the indictment, the defendants exercised control over Fire Alarm Electrical Corp., a company that held numerous contracts with New York City agencies to repair and maintain fire alarm systems.  For more than a decade, Fire Alarm Electrical Corp. overbilled those agencies by submitting fraudulent invoices with dramatically inflated prices, including invoices that purported to be from legitimate retailers, which the defendants had altered and modified, as well as invoices from shell companies that the defendants owned and controlled.

The charge in the indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty.  The defendants face maximum sentences of 20 years’ imprisonment.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Erik Paulsen and Michael Gibaldi are in charge of the prosecution.

The Defendants:

WALTER STANZIONE
Age: 65
East Meadow, New York

WILLIAM NEOGRA
Age: 63
Millsboro, Delaware

E.D.N.Y. Docket No. 23-CR-482

Today, Daniel E. Russo was sentenced to 60 months in prison by United States District Judge Dora L. Irizarry for conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, and nine counts of filing false personal and corporate tax returns.  In addition to the terms of imprisonment, Judge Irizarry ordered Russo to serve three years of supervised release.  Immediately prior to the sentencing, the defendant paid over $400,000 in restitution.  Russo pleaded guilty in February 2023.  

Breon Peace, United States Attorney for the Eastern District of New York, David A. Hubbert, Deputy Assistant Attorney General of the Justice Department’s Tax Division, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.

“From pharmacist to pill pusher, Daniel Russo betrayed his years of medical training to pocket dirty money in return for illegally selling enormous amounts of oxycodone, which was invariably later sold on the streets,” stated United States Attorney Peace.  “Today’s sentence sends a message to all would-be drug dealers, especially healthcare professionals, that the illegal distribution of drugs will be punished.” 

DEA Special Agent in Charge Frank Tarentino said, “Through today’s sentencing and prior plea, it is apparent that Daniel Russo will spend the next five years contemplating his ill-fated decision to use his business to illegally distribute prescription medication while enabling opioid addiction throughout New York.   The investigation and prosecution meticulously brought to justice Russo’s tax fraud and his role in a major drug trafficking conspiracy.  I commend our partners in the DEA’s Long Island Division Office Tactical Diversion Squad, the IRS-CI New York, and the US Attorney’s Office Eastern District of New York for their diligent work.” 

“Russo distributed highly addictive drugs to the community he served, completely disregarding his sworn code of ethics as a pharmacist.  And while using his position to commit criminal acts, he then failed to report and pay taxes on the proceeds of his illicit sales. It is with strong law enforcement partnerships that we were able to ensure Russo is now facing justice for his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.

As set forth in the indictment, court filings and during court proceedings, Russo owned and operated Russo’s Pharmacy in Far Rockaway, Queens.  Between March 2011 and June 2014, Russo conspired with others, including medical professionals and employees, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash.  Over the course of the conspiracy, Russo’s co-conspirators delivered hundreds of fraudulent oxycodone prescriptions to Russo’s Pharmacy and would then retrieve the filled prescriptions—written out in various patients’ names—so that they could be dispensed elsewhere.  Oxycodone illegally distributed by Russo led to at least one non-fatal overdose.  Russo accepted payment mostly in cash for the prescriptions.  Russo then hid the proceeds from the scheme and filed false corporate income tax returns for his pharmacy for the years 2013 through 2016, omitting the illegal proceeds.  Russo also filed false individual income tax returns for the years 2012 through 2016.  In total, Russo failed to report over $1 million in earnings, much of it generated from his oxycodone distribution scheme.  As a result, Russo fraudulently underreported his tax obligations on those earnings by over $400,000. 

More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.

The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department and Rockville Centre Police Department.  The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the U.S. Department of Health & Human Services’ Office of the Inspector General and New York City Department of Investigation. 

 This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative.  In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, the New York State Police and other key federal, state and local government partners launched the initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics.  To date, the initiative has brought over 160 federal and local criminal prosecutions including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers.  The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Francisco J. Navarro, Nomi D. Berenson and Andrew D. Wang and Trial Attorney Michael C. Vasiliadis of the Tax Division are in charge of the prosecution.

The Defendant:

DANIEL E. RUSSO
Age: 44
Cedarhurst, New York

E.D.N.Y. Docket No. 20-CR-23 (DLI)

Earlier today, Amaury Abreu, a former police officer with the New York City Police Department (NYPD), pleaded guilty at the federal courthouse in Brooklyn to one count of conspiring to distribute and possess with intent to distribute cocaine.   Between approximately January 2016 and October 2020, Abreu assisted a multinational drug trafficking organization (DTO) with distributors in the New York-metropolitan area and the Dominican Republic.  When sentenced, Abreu faces up to 20 years in prison.

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

“Rather than protect and serve, Officer Abreu helped drug traffickers distribute large amounts of cocaine in the Eastern District of New York by giving them confidential law enforcement information.  That was a disgraceful breach of public trust,” stated United States Attorney Peace.  “Today’s plea should send the message that police officers who betray the shield and violate the law will be held to account.  No one is above the law.”

United States Attorney Peace thanked the New York City Police Department, Internal Affairs Bureau, Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration and the Nassau County District Attorney’s Office for their assistance in the investigation.

According to the indictment and other court filings, the DTO imported multi-kilogram quantities of cocaine into the United States through a variety of means, including by sending drug couriers on flights to the United States, concealing narcotics in mail and tractor trucks that enter the United States from Mexico, and concealing narcotics in produce shipments that are imported into the United States.  Since 2016, law enforcement agents seized more than 350 kilograms of cocaine belonging to the DTO.

During the charged time period, Abreu abused his position as a police officer to protect his co-conspirators by providing information to the DTO about law enforcement procedures, performing warrant checks on members of the DTO using the NYPD arrest database and, on at least one occasion, receiving cocaine from the DTO.

The investigation was led by the Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, New York City Police Department, Internal Affairs Bureau and the Nassau County District Attorney’s Office.

The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Erin Reid and Andrew Wang are in charge of the prosecution.

The Defendant:

AMAURY ABREU
Age:  37
Residence: Hauppauge, New York

E.D.N.Y. Docket No. 23-CR-433 (RRM) (RML)

Earlier today, Idris Dayo Mustapha, a national of Nigeria and the United Kingdom, pleaded guilty to charges of computer intrusion, securities fraud, wire fraud and access device fraud based on his involvement in a ring of hackers and fraudsters who broke into Americans’ email and brokerage accounts in order to defraud and steal over $6 million from their victims.  Mustapha was arrested in the United Kingdom in August 2021 and was extradited to the United States in August 2023.  Today’s proceeding was held before United States District Judge Pamela K. Chen.  When sentenced, the defendant faces up to 20 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 guilty plea.

As set forth in the criminal information and court filings, between 2011 and 2018, Mustapha and his co-conspirators hacked into the computer servers of U.S. financial institutions, reviewed confidential user data, and placed malicious files on the servers.  Using the stolen data and stolen passwords that they acquired, they executed various schemes to defraud U.S. victims.  First, they accessed victims’ email accounts and, impersonating the victims, caused wire transfers of the victims’ funds for their own benefit.  Second, they used their access to the victims’ securities brokerage accounts to steal securities outright by having them transferred out of the accounts.  Third, Mustapha and his co-conspirators caused the victims’ brokerage accounts to execute unfavorable trades against accounts that Mustapha and his co-conspirators controlled, generating a profit for themselves at the victims’ expense.  Losses attributable to the scheme were in excess of $6 million.

The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section and the Business and Securities Fraud Section.  Assistant United States Attorneys Alexander Mindlin, Sarah M. Evans, and Sara K. Winik are in charge of the prosecution. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the UK of Mustapha.

The Defendant:

IDRIS DAYO MUSTAPHA
Age:  33
United Kingdom

E.D.N.Y. Docket No. 23-CR-440 (PKC)

Earlier today, in federal court in Brooklyn, Melvi Amador-Rios, a leader of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization, was sentenced by United States District Judge Rachel P. Kovner to life in prison for murder in-aid-of racketeering.  The defendant was also sentenced to 80 years in prison for four Hobbs Act robberies, 40 years in prison for ordering a non-fatal shooting and 38 years in prison for firearms charges, to run consecutive to the sentences on all other counts.  Amador-Rios was convicted of racketeering, murder in-aid-of racketeering in connection with the May 16, 2017 fatal stabbing of 16-year-old Julio Vasquez in Queens, attempted murder in-aid-of racketeering, assault-in aid-of racketeering, firearms offenses and four counts of Hobbs Act robbery after a three-week jury trial in July and August 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), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.  

“The defendant will deservedly serve a life sentence for the murder, attempted murder and armed robberies he committed on behalf of MS-13,” stated United States Attorney Peace.  “Today’s sentence reflects justice for the heinous and senseless nature of the defendant’s crimes and the terror he inflicted on his victims, their families and the community.”

“This is the culmination of another thorough, intelligence-led investigation of a violent gang member who will thankfully never have the opportunity to victimize another New Yorker,” stated NYPD Commissioner Caban.  “I commend our NYPD investigators and law enforcement partners, whose tireless efforts on this important case ensured today’s meaningful prison sentence. We vow to remain relentless in identifying, arresting, and holding to full account everyone responsible for driving crime and disorder in our city.”

Murder of Julio Vasquez

As proven at trial, beginning in fall 2016, the CLS clique, led by Amador-Rios, decided to kill a CLS chequeo, or low-level MS-13 member (referred to in the superseding indictment as John Doe 3) who had been violating the clique’s rules, including by associating with members of the rival 18th Street gang.  Amador-Rios ordered Julio Vasquez, also an MS-13 chequeo, to carry out the killing of John Doe 3.  Vasquez was tasked with killing John Doe 3 because he too had been violating the clique’s rules and was suspected of cooperating with law enforcement.  After Vasquez failed to kill John Doe 3, Amador-Rios ordered Vasquez be killed. On May 16, 2017, Vasquez was lured to a wooded area of Alley Pond Park where co-conspirators Josue Leiva and Luis Rivas stabbed him more than 30 times, killing him. Vasquez’s body was discovered by a bird watcher in the park on May 21, 2017.  Leiva and Rivas pleaded guilty on July 14, 2023 to racketeering charges, including Vasquez’s murder. They are awaiting sentencing.

2016 Attempted Murder

In October 2016, Amador-Rios ordered a CLS chequeo to kill a member of the rival 18th Street gang.  The chequeo targeted a boy that he believed to be a member of the rival 18th Street gang (referred to in the superseding indictment as John Doe 1).  In the early morning hours of October 23, 2016, in the vicinity of 179th Street and 90th Avenue in Jamaica, Queens, the CLS chequeo, accompanied by two others, confronted John Doe 1, who was 16 years old at the time.  At Amador-Rios’s direction, the chequeos beat John Doe 1, shot him in the head, and attempted to shoot him a second time as he lay on the ground.  The gun malfunctioned, but, as a result of the gunshot wound, John Doe 1 was permanently paralyzed.  Following the arrests of the chequeos for the shooting, Amador-Rios informed them in a prison call that “you guys already have the pass, you know, to be homeboys, you know,” indicating that they would be promoted in the gang for committing the attempted murder.  The three chequeos have each pleaded guilty to their participation in the assault and attempted murder of John Doe 1, including variously assault in-aid-of racketeering, attempted murder in-aid-of racketeering and discharging a firearm in furtherance of a crime of violence.

Amador-Rios also participated in the armed robbery of a money transfer business during which an employee was pistol whipped, three armed robberies of convenience stores in Jamaica, Queens, one during which a four-year-old child was present, and related firearms offenses.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF

Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The MS-13’s leadership was based in El Salvador and Honduras, but the gang has thousands of members across the United States. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Nadia E. Moore, Anna L. Karamigios, and Raffaela S. Belizaire are in charge of the prosecution, with the assistance of Paralegal Specialist Emily Moosher.

The Defendant:

MELVI AMADOR-RIOS (also known as “Letal” and “Pinky”)
Age:  32
Briarwood, New York

E.D.N.Y. Docket No. 18-CR-398 (S-3) (RPK)

Richard Dale Sterritt, Jr., also known as “Richard Richman,” pleaded guilty yesterday at the federal courthouse in Brooklyn to a five-count superseding indictment charging him with conspiracy to commit securities and wire fraud, multiple counts of securities fraud and conspiracy to commit money laundering.  A trial in the case had been scheduled to begin yesterday, and Sterritt’s plea took place immediately following jury selection before United States District Judge Kiyo A. Matsumoto.  When sentenced, Sterritt faces up to 75 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 guilty plea.

“Investors trusted Sterritt with millions of dollars of their money and he repaid that trust with gimmicks and lies,” stated United States Attorney Peace.  “The defendant’s guilty plea at the beginning of his trial is a testament to the hard work and commitment of this Office and our law enforcement partners to holding accountable fraudsters who deceive the investing public.”

Mr. Peace thanked the U.S. Securities and Exchange Commission, New York Regional Office and the Financial Industry Regulatory Authority for their invaluable assistance in the investigation.

As alleged in the superseding indictment, between March 2019 and January 2021, Sterritt and his co-conspirators defrauded investors of more than $17 million that they claimed would be used for an oil and gas venture called Zona Energy.  Sterritt misappropriated the lion’s share of investor funds, which he spent on personal expenses, including luxury cars, travel and high-end clothing.  Sterritt also wired investor money to other businesses he controlled, including a purported cannabis business, and to his friends and girlfriends.  Sterritt used the alias “Richard Richman” when interacting with investors to conceal his prior criminal conviction for securities fraud. 

Sterritt also engaged in a stock market manipulation fraud in which he conspired with others to manipulate the price and trading volume of publicly traded shares of OrgHarvest, Inc., which traded under the stock ticker “ORGH.”  Sterritt, who secretly controlled the majority of ORGH shares through trusts in the name of his girlfriends, family members, and co-conspirators, sought to sell the fraudulently inflated shares to the investing public via a corrupt stock promoter, who was in reality an undercover law enforcement agent.  Sterritt executed a series of matched trades with the undercover agent, after which regulators suspended trading in ORGH.  Following the suspension of trading, he attempted to manipulate the price and trading volume of the shares of yet another public company—ERF Wireless, Inc., which traded under the stock ticker “ERFB.”

Sterritt is the last defendant to plead guilty in connection with the charges in the superseding indictment.  Five of his co-conspirators pleaded guilty in 2022 and 2023, four of whom are currently awaiting sentencing.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys David C. Pitluck, Sarah M. Evans, Nick M. Axelrod, Jessica K. Weigel, and John O. Enright are in charge of the prosecution with assistance from Paralegal Specialist William Daniels.

The Defendant:

RICHARD DALE STERRITT, JR. (also known as “Richard Richman”)
Age: 67
Garland, Texas

Co-Conspirators Who Previously Pleaded Guilty:

MICHAEL GREER
Age: 48
Dallas, Texas

ROBERT MAGNESS
Age: 54
New York, New York

CHRISTOPHER J. PITTMAN
Age: 52
Dallas, Texas

MARK ROSS
Age: 56
Parkland, Florida

ROBYN STRAZA
Age: 61
Dallas, Texas

E.D.N.Y. Docket No.  21-CR-193 (KAM)

Earlier today, the defendant Brandon Kern was arraigned on an indictment charging him with five counts of sexual exploitation of minors and possession of child pornography. The defendant made his initial appearance before Magistrate Judge Lee Dunst in Central Islip where he was ordered detained. 

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 charges.

“Posing as a teen on Snapchat, the defendant allegedly contacted at least six girls, some as young as twelve years old, and coerced them into sending him sexually explicit photos and videos, and when these girls attempted to block further contact with him, he threatened to expose and humiliate them to family and friends,” stated United States Attorney Peace.  “Minors should be free to use their phones without fear of victimization.  Our Office will work tirelessly with our federal and local partners to find those who lurk in the shadows of cyberspace and prey on our children.”

Mr. Peace praised the outstanding investigative work of the FBI and the North Olmstead, Ohio Police Department.  Mr. Peace also expressed his thanks to the United States Attorney’s Office for the Northern District of Ohio.

“Kern thought he could use technology to outsmart and abuse young girls. His alleged crimes were horrific and the FBI's Long Island Child Exploitation Task Force used every tool available to track him down and arrest him putting a stop to his heinous behavior. There could be more victims and the FBI wants parents or victims to contact law enforcement if they think anyone may have had contact with Kern,” stated FBI Assistant Director-in-Charge Smith.

As set forth in court filings, between December 2020 and October 2021, the defendant exploited numerous victims by forcing them to send him sexually explicit photographs and videos.  Thus far, law enforcement has been able to identify six young girls.  The defendant was caught when he traveled from Long Island to Ohio to have sex with one victim and threatened her when she got scared and refused to meet him. He was arrested leaving a hotel room with condoms, rope and lubricant.  Subsequent searches of his social media accounts revealed contact with numerous other minor victims.    

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

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

The government’s case is being prosecuted by the Office’s Long Island Criminal Division.  Assistant United States Attorney Samantha Alessi is in charge of the prosecution.

The FBI has identified several Snapchat accounts through which the defendant communicated with potential victims. If parents believe their children have communicated with any of the below, they should contact the FBI by at tips.fbi.gov or 212-384-1000.

Snapchat Accounts:

• bsublime10
• bsublime11
• bsublime12
• bsublime20
• bsublime28
• bsublime31
• bsublime33
• punkygreen472

The Defendant:

BRANDON THOMAS KERN
Age:  29
Bayport, New York

Earlier today, at the federal court in Brooklyn, Vladimir Esguerra and Jonathan Betancur were sentenced by United States District Judge Eric Komitee to 128 months’ imprisonment and 110 months’ imprisonment, respectively, for conspiracy to distribute controlled substances and distributing the heroin and fentanyl that caused the death of Michael J. Marino.

Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentences.

“As the defendants admitted in their guilty pleas, they conspired over a period of years to distribute narcotics in our community, and tragically those narcotics had deadly consequences,” stated United States Attorney Peace.  “We are facing a national crisis of opioid addiction, which cuts lives short every day in this district and across the country.  Today’s sentences send a message that those who prey on people suffering from this disease will be punished.  It is our hope that these sentences will deter others from peddling dangerous drugs and provide some measure of comfort to the victim’s family.” 

“The opioid crisis has cut a wide swath across our country, affecting people from all walks of life and causing immense harm in every community,” stated NYPD Commissioner Caban.  “To combat this scourge locally, the NYPD and our law enforcement partners work relentlessly to disrupt drug trafficking operations and hold those involved fully accountable. The sentences handed down today send a message of support to the families of loved ones lost, promising that we will not rest until justice is delivered.”

As set forth in the government’s sentencing letters and other public documents, Esguerra and Betancur were drug dealers who distributed narcotics together in Queens since at least 2015.  Sometimes Esguerra would meet the buyer and handle the transaction himself and sometimes he would send them to Betancur instead. In July 2019, they sold heroin cut with fentanyl to Marino, who suffered a fatal overdose as a result in a pizzeria in Ozone Park, Queens.  In September 2019, Betancur was arrested by the NYPD in an unrelated case, and two cellphones that he was carrying were seized.  One of them was the same phone he had used to communicate with Marino on the day of the overdose—and the number to which Marino had saved as “Vlad.”  Earlier this year, both defendants pleaded guilty to drug trafficking conspiracy and admitted responsibility for Marino’s death.

Assistant United States Attorney Robert M. Pollack is prosecuting the case.

The Defendants:

JONATHAN BETANCUR
Age:  34
Queens, New York

VLADIMIR ESGUERRA
Age:  41
Queens, New York

E.D.N.Y. Docket No. 21-CR-525 (EK)

Earlier today in federal court in Brooklyn, former New York City correction officer Krystle Burrell was sentenced by United States District Judge Kiyo A. Matsumoto to 29 months’ imprisonment for accepting nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island.  Burrell was employed by the New York City Department of Corrections (DOC) and worked as a correction officer at Rikers Island. 

Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Krystle Burrell put her own interests above the safety of incarcerated individuals and other correction officers at Rikers Island by accepting payments for drugs and smuggling cell phones into the jail she was supposed to protect,” stated United States Attorney Peace.  “Public corruption is especially harmful when it affects the safety and security of our city’s jails and today’s sentence demonstrates that correction officers face serious consequences for smuggling contraband into Rikers Island.” 

DOI Commissioner Jocelyn E. Strauber said, “New York City Correction Officers’ most significant responsibility is to maintain order and safety in our City’s jails.  By accepting bribes and smuggling contraband onto Rikers Island, this defendant endangered both the persons in custody, and fellow officers, that she was entrusted to protect. Her prison sentence sends a strong message that officers who misuse their positions of trust will be held accountable. I thank the US Attorney’s Office for the Eastern District of New York for their partnership in our joint efforts to eradicate contraband smuggling in the City jail system.”

“Bringing contraband into a correctional facility undermines the security of the institution and threatens the residents and the officers tasked with keeping them safe,” stated NYPD Commissioner Caban. “Above all else, correction officers are public servants – the majority of whom honor their oaths and serve as stellar examples to the community and those under their care. Ms. Burrell, who blatantly abused her position of authority, was the exact opposite.”

According to court documents and facts presented at today’s sentencing proceeding, Burrell accepted nearly $10,000 in bribes from co-conspirators on behalf of co-defendant Terrae Hinds in exchange for Burrell smuggling contraband into the Anna M. Kross Center on Rikers Island for Hinds.  Burrell also accepted payments on behalf of Hinds for narcotics and other contraband so that Hinds could resell the contraband on Rikers Island.  After she pleaded guilty in federal court in September 2022 to bribery charges and while on bail pending sentencing, Burrell conspired with Hinds and others to smuggle contraband into the federal Metropolitan Detention Center in Brooklyn where Hinds had been transferred and was being held on federal charges.  In March 2023, Burrell was charged with the additional crime of smuggling contraband into a federal prison. Burrell pleaded guilty to smuggling contraband into a federal detention facility and she was also sentenced today for this additional crime. 

Hinds previously pleaded guilty to bribing Burrell and is currently awaiting sentencing.

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

The Defendants:

KRYSTLE BURRELL
Age:  36
Lawrence, NY

E.D.N.Y. Docket Nos. 22-CR-196 (KAM); 23-CR-207 (KAM)

A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Kevin Grant with being a felon in possession of ammunition, possession of five or more false identification documents, possessing stolen United States Postal Service (USPS) arrow keys, and possessing stolen mail.  The indictment was returned by a federal grand jury sitting in Brooklyn, New York on November 17, 2023, and relates to Grant’s alleged activities on October 3, 2023.

On October 31, 2023, Tyrone Santos was indicted by a grand jury sitting in the Eastern District of New York for the assault and robbery of two USPS letter carriers, on September 30, 2023, and October 14, 2023, respectively, who were on their delivery routes within the East New York area of Brooklyn.  The indictment charges Santos with two counts for each robbery of a U.S. Postal Service employee and two counts for the theft of the postal keys from those employees.

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

“As these cases demonstrate, whether it is breaking into a Postal relay box, and possessing a ghost gun or assaulting postal workers, our Office will use all tools available to prosecute those who harm our public servants or public services,” stated U.S. Attorney Breon Peace. “I encourage all to educate themselves and take steps to protect their mail, and for bad actors to recognize the consequences involved in these crimes.”

“Today’s indictment is an example of the commitment of Postal Inspectors to spare no resource in their pursuit to bring those to justice who violate the sanctity of the U.S. Mail, commit criminal acts against USPS letter carriers, and steal from the public. Their reign of terror has ended against our letter carriers, and now they will face the justice they so rightly deserve. I would also like to acknowledge the role of our USPIS NYPD Task Force Officers in this fight. Together, and in partnership with the U.S. Attorney’s Office, eight additional defendants have been charged federally with mail theft related crimes in the past year,” said Inspector in Charge of the New York Division, Daniel B. Brubaker.

“The crimes outlined in these indictments bear witness to what has unfortunately become a national trend, and such acts will never be tolerated in New York City,” said NYPD Commissioner Edward A. Caban. “Together with our federal partners, the NYPD remains committed to using every resource at our disposal to protect the integrity of our mail service and eradicate violent crime in all its forms.”

To combat the rise in mail fraud crimes, the U.S. Attorney’s Office for the Eastern District is highlighting how to protect your mail through flyers translated into English, Spanish and Mandarin. Postal Inspectors and the U.S. Attorney’s Office for the Eastern District of New York encourage all mail theft victims to report it directly to the Postal Inspection Service. Each report is helpful in building impactful cases against those responsible. You can report mail theft, identity theft, fraud or other crimes involving the U.S. mail by calling the Postal Inspection Service’s national toll-free number at 1-877-876-2455 or by going to http://uspis.gov/report and filing an electronic report.

U.S. v. Grant

According to the criminal complaint previously filed against the defendant, on September 5, 2023, the defendant was observed in a black BMW 535 series sedan with Florida license plate #DEP3 that was involved in the unauthorized accessing of a USPS relay box in the Flatbush area of Brooklyn (the “Subject BMW”). Similarly, on September 11, 2023, video surveillance appeared to capture a vehicle consistent with the Subject BMW but with Pennsylvania license plate #MCR5107 that was also involved in the theft of mail from a relay box in the Parkville area of Brooklyn.

On October 3, 2023, NYPD officers initiated a traffic stop of a vehicle consistent with the Subject BMW.  As the officers approached the vehicle, the defendant, who was the sole occupant of the vehicle, rolled down his window, observed the officers, and then fled in the vehicle.  After a chase, the defendant abandoned the vehicle and fled on foot. 

NYPD officers seized the vehicle and conducted an inventory search, during which they discovered a personally manufactured firearm without a serial number (also known as a “ghost gun”) loaded with 15 rounds of ammunition and an additional 39 rounds of ammunition. 

The officers also found evidence related to the mail thefts, including the same Florida license plate #DEP3 that had been observed on the Subject BMW during the defendant’s unauthorized access to the relay box on or about September 5, 2023.  In addition, within a duffle bag in the vehicle, they found genuine postal arrow keys for the Flatbush area and the Parkville area, a postal uniform, mail addressed to individuals in the Flatbush Area and approximately 100 checks not belonging to the defendant (several of which appeared to have been made out by residents of the Flatbush area). 

Within the same duffle bag, NYPD officers also uncovered approximately five fraudulent social security cards with names of other individuals on them, blank credit cards, credit cards with the names of other individuals on them, several identification documents with the defendant’s picture but bearing different names and additional identification documents bearing other pictures and names.

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

The government’s case is being prosecuted 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.

U.S. v. Santos

As alleged in the criminal complaint previously filed against the defendant, the U.S. Postal Inspection Service (USPIS) was investigating two robberies of U.S. Postal Service mail carriers while they were on their routes.  Both robberies took place two weeks apart, on September 30, 2023 and October 14, 2023, and bore similar characteristics.  In both robberies, surveillance footage reveals a perpetrator with similar physical characteristics, wearing similar attire: a gray hooded sweatshirt, black jeans, and tan shoes.  Additionally, in both robberies, this perpetrator surveilled young, slight-in-stature female postal carriers on their mail routes, accosted them with a weapon—in the first robbery using what appears to be a pipe and in the second robbery using a firearm—demanded their arrow keys, and then fled the scene.  Both robberies took place in a very limited geographic area, within four blocks of each other, and the perpetrator fled to the same residential building after both robberies.

The investigation led authorities to Santos, who was arrested on October 20, 2023, and charged by a federal criminal complaint with the theft of a postal key from a U.S. Postal Service mail carrier.  Santos was arrested in his Brooklyn residence without incident by the U.S. Marshals Service Regional Fugitive Task Force, U.S. Postal Inspectors, and the USPIS NYPD Task Force Officers.  Separately, the USPIS NYPD Task Force Officers arrested Santos on state first-degree robbery charges.

Santos was arraigned on the criminal complaint on October 20, 2023, before United States Magistrate Judge Taryn A. Merkl at the federal courthouse in Brooklyn and ordered detained.  He was arraigned on the indictment on November 6, 2023.  The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorney Amanda Shami is in charge of the prosecution.

The Defendants:

KEVIN GRANT
Age:  29
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-477 (OEM)

TYRONE SANTOS 
Age:  49
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-436 (OEM)

Christopher Acevedo, a founder and leader of the Wood City street gang based in the Woodhull neighborhood of Queens, was sentenced yesterday by United States District Judge Diane Gujarati in federal court in Brooklyn to two terms of life imprisonment to run concurrently, for murder in aid of racketeering and causing death through the use of a firearm.  Acevedo was convicted by a federal jury in May 2023 following a two-week trial.  

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

“Christopher Acevedo showed his indifference for human life when he murdered David Hutchinson in broad daylight over a petty gang dispute, in order to maintain and burnish his status as the leader of a violent street gang whose members felt insulted by the taking of a piece of jewelry,” stated United States Attorney Peace.  “Yesterday’s sentence of life imprisonment demonstrates the heinousness of Acevedo’s crime and sends a message that gun violence has no place in our society.”

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, the Drug Enforcement Administration, the New York City Police Department, and the FBI Safe Streets Task Force for their exemplary work on the case.

Since at least 2010, the Wood City gang has been engaged in racketeering activity, including murder, drug trafficking, and various forms of fraud and identity theft.  Acevedo was the founder and leader of the gang which was so named because many of its members lived around Woodhull Avenue in Jamaica, Queens.  Since at least 2011, Wood City has been involved in a war with rival “Snow Gang,” another violent gang based in Queens.  During this period, members of Wood City and Snow Gang would regularly taunt and insult each other using social media platforms and phone calls.

On August 26, 2019, members of Snow Gang, including one of its leaders, robbed a gold “YTB” chain from a high-ranking member of Wood City while he was at a recording studio in Queens.  Shortly after the robbery, the Snow Gang leader posted a photo himself wearing the YTB chain on social media.  As a leader of Wood City, Acevedo was expected to retaliate for the chain-snatching to protect his gang’s reputation.  Acevedo and other Wood City members drove to Snow Gang territory and spotted a vehicle with the Snow Gang leader who had robbed the chain and other members and associates of Snow Gang.  After following that vehicle to the front of a deli in the vicinity of 140th Avenue and Springfield Boulevard, Acevedo pulled alongside the vehicle and fired a dozen shots, killing the driver, David Hutchinson.  The murder occurred in broad daylight outside a bodega filled with civilians.   

The government’s case was prosecuted by Assistant United States Attorneys Kayla C. Bensing and Benjamin Weintraub, and former Assistant United States Attorney James P. McDonald. 

The Defendant:

CHRISTOPHER ACEVEDO
Age:  28
Queens, New York

E.D.N.Y. Docket No. 21-CR-162 (DG)

Today, at the conclusion of a removal hearing, a federal court in Houston, Texas ordered Elmer Canales-Rivera, also known as “Crook de Hollywood,” a high-ranking leader of La Mara Salvatrucha, also known as MS-13, to be transferred in custody to the Eastern District of New York where he 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.

On November 9 2023, Canales-Rivera was arrested by members of the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), and the United States Marshals Service (USMS), when he arrived at George Bush Intercontinental Airport in Houston, Texas.  Specifically, Canales-Rivera has been 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. 

Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Christopher A. Wray, Director, FBI; and Alejandro N. Mayorkas, Secretary of Homeland Security announced Canales-Rivera’s arrest and initial appearance.

“We allege that Elmer Canales-Rivera, a founding member of MS-13’s ‘Twelve Apostles of the Devil,’ bears responsibility for the gang’s efforts over decades to terrorize communities, target law enforcement, and sow violence here in the United States and abroad,” said Attorney General Merrick B. Garland. “The arrest of this high-ranking, long-time leader of MS-13 should serve as a warning to MS-13’s other leaders that the Justice Department will hold you accountable for your crimes.”

“The defendant’s appearance in a federal courtroom today in the United States is a giant step in holding him accountable for his significant role as an alleged member of the MS-13 gang’s leadership body known as the ‘Twelve Apostles of the Devil’ and later renamed Ranfla Nacional,” stated United States Attorney Peace.  “As alleged, Canales-Rivera along with his co-defendants acted as a board of directors, directing acts of violence, intimidation and material support of terrorists in El Salvador and throughout the United States including in the Eastern District of New York where he will appear next in a federal courtroom in Central Islip to answer these charges.”

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 other government agencies and offices have been essential partners in JTFV, including the Department of Justice’s National Security Division and the Criminal Division, 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.

Mr. Peace expressed his thanks to the FBI’s Los Angeles Field Office, which has spearheaded JTFV’s MS-13 leadership investigations, with critical support provided by the Criminal Investigative Division’s Safe Streets Gang Unit, along with HSI’s National Gangs and Violent Crime Unit and HSI’s New York and Houston Field Offices.  Additionally, FBI Legal Attachés in Mexico City and San Salvador, FBI Houston Field Office, HSI Attaché Mexico City, USMS Legal Attaché in Mexico City and the United States Customs and Border Protection Officers at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrest, as well as the U.S. Attorney's Office and the USMS for the Southern District of Texas for coordinating the 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; the Organized Crime Drug Enforcement Task Forces Executive Office; the Justice Department’s Office of International Affairs; and the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training.  In addition, the Department of State, Bureau of International Narcotics and Law Enforcement Affairs and the United States Department of Treasury, Office of Foreign Asset Control have provided valuable assistance for JTFV’s mission. 

“With determination and coordinated effort, the FBI and our law enforcement and foreign partners successfully apprehended a violent criminal that directly threatened the safety of our communities," said FBI Director Christopher A. Wray. "This pursuit exemplifies the FBI's commitment to safeguard the American public and continued promise to dismantle criminal networks like MS-13.” 

“This arrest makes it clear that there is no hiding place for leaders of criminal syndicates that threaten our communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Through the dedication and investigative abilities of HSI agents and our federal partners, we are taking on criminal organizations like MS-13 and helping to bring all those who perpetrate transnational crimes to justice.”

As set forth in the indictment, which was returned on December 16, 2020 and unsealed on January 14, 2021, and related court filings, Canales-Rivera 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, Canales-Rivera, 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 its members and obtained military weapons such as rifles, handguns, grenades, improvised explosive devices (IEDs) and rocket launchers. Further, beginning in approximately 2012, Canales-Rivera and other members of the Ranfla Nacional negotiated with officials from the government of El Salvador (GOES) and obtaied benefits and concessions from the GOES.  In order to extract those benefits and concessions from GOES, MS-13 engaged in public displays of violence to threaten and intimidate civilian populations, targeted GOES law enforcement and military officials, and manipulated the electoral process in El Salvador.  Canales-Rivera played one of the most prominent roles in MS-13’s negotiations and agreements with the GOES.

Additionally, as alleged, the Ranfla Nacional directed the expansion of MS-13 activities around the world, including the United States and Mexico, where several 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. 

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, including murders, to further its goals and implemented rules that enabled MS-13 to entrench itself in parts of the United States, including within the EDNY where, under the defendants’ leadership and rules, MS-13 has committed numerous acts of violence—including murders, attempted murders, assaults, kidnappings, drug trafficking, extortion of individuals and businesses, obstructed justice and 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 65 murders in the Eastern District of New York between 2009 and the present. 

When the indictment was unsealed in January 2021, Canales-Rivera was in custody in El Salvador serving a prison sentence, and the United States lodged an INTERPOL Red Notice and submitted an extradition request for Canales-Rivera to the GOES.  However, in or about November 2021, Canales-Rivera was released from custody by the GOES and then unlawfully entered Guatemala.  Canales-Rivera remained a fugitive until November 7, 2023, when he was apprehended by Mexican authorities.

Further, in addition to requesting Canales-Rivera’s extradition, in 2021 and 2022, the United States requested the extradition of 11 of his co-defendants, including Borromeo Enrique Henriquez, also known as “Diablito de Hollywood,” who is widely recognized as the most powerful member of the Ranfla Nacional.  To date, the GOES has not extradited any of those defendants.

Two of Canales-Rivera’s co-defendants, Fredy Ivan Jandres-Parada, also known as “Lucky de Park View” and “Lacky de Park View,” and Cesar Humberto Lopez-Larios, also known as “El Grenas de Stoners” and “Oso de Stoners,” and three related defendants from the Arevalo-Chavez indictment, Jorge Alexander De La Cruz, also known as “Cruger de Peatonales,” Juan Antonio Martinez-Abrego, also known as “Mary Jane de Hollywood,” 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, Canales-Rivera faces a maximum sentence of life in prison.

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, with assistance from Assistant U.S. Attorneys James Donnelly (District of New Jersey), Matthew Shepherd (Northern District of Ohio), and Stewart Young (District of Utah) from JTFV.

Newly Arrested Defendant in U.S. Custody:

ELMER CANALES-RIVERA (“Crook de Hollywood”)
Age:  47

Fugitive Defendants:

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

CESAR HUMBERTO LOPEZ-LARIOS (“El Grenas de Stoners” and “Oso de Stoners”)
Age:   44

Defendants with Pending Extradition Requests, Reportedly in El Salvador Custody:

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:  50

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:  43

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

HUGO ARMANDO QUINTEROS-MINEROS (“Flaco de Francis”)
Age:  50

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

ARISTIDES DIONISIO UMANZOR (“Sirra de Teclas”)
Age:  45

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

At the conclusion of a removal hearing, a federal court in Houston, Texas ordered Elmer Canales-Rivera, aka Crook de Hollywood, a high-ranking leader of La Mara Salvatrucha, aka MS-13, to be transferred in custody to the Eastern District of New York where he 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.

On Nov. 9, Canales-Rivera was arrested by members of the FBI, Homeland Security Investigations (HSI), and the U.S. Marshals Service (USMS) when he arrived at George Bush Intercontinental Airport in Houston, Texas. Specifically, Canales-Rivera has been 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.

“We allege that Elmer Canales-Rivera, a founding member of MS-13’s ‘Twelve Apostles of the Devil,’ bears responsibility for the gang’s efforts over decades to terrorize communities, target law enforcement, and sow violence here in the United States and abroad,” said Attorney General Merrick B. Garland. “The arrest of this high-ranking, long-time leader of MS-13 should serve as a warning to MS-13’s other leaders that the Justice Department will hold you accountable for your crimes.”

“This arrest makes it clear that there is no hiding place for leaders of criminal syndicates that threaten our communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Through the dedication and investigative abilities of HSI agents and our federal partners, we are taking on criminal organizations like MS-13 and helping to bring all those who perpetrate transnational crimes to justice.”

“With determination and coordinated effort, the FBI and our law enforcement and foreign partners successfully apprehended a violent criminal that directly threatened the safety of our communities,” said FBI Director Christopher A. Wray. “This pursuit exemplifies the FBI's commitment to safeguard the American public and continued promise to dismantle criminal networks like MS-13.” 

“The defendant’s appearance in a federal courtroom today in the United States is a giant step in holding him accountable for his significant role as an alleged member of the MS-13 gang’s leadership body known as the ‘Twelve Apostles of the Devil’ and later renamed Ranfla Nacional,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, Canales-Rivera along with his co-defendants acted as a board of directors, directing acts of violence, intimidation, and material support of terrorists in El Salvador and throughout the United States, including in the Eastern District of New York where he will appear next in a federal courtroom in Central Islip to answer these charges.”

As set forth in the indictment, which was returned on Dec. 16, 2020 and unsealed on Jan. 14, 2021, and related court filings, Canales-Rivera 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, Canales-Rivera, 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 its members and obtained military weapons such as rifles, handguns, grenades, improvised explosive devices (IEDs) and rocket launchers. Further, beginning in approximately 2012, Canales-Rivera and other members of the Ranfla Nacional negotiated with officials from the government of El Salvador (GOES) and obtained benefits and concessions from the GOES. In order to extract those benefits and concessions from the GOES, MS-13 engaged in public displays of violence to threaten and intimidate civilian populations, targeted GOES law enforcement and military officials, and manipulated the electoral process in El Salvador. Canales-Rivera played one of the most prominent roles in MS-13’s negotiations and agreements with the GOES.

Additionally, as alleged, the Ranfla Nacional directed the expansion of MS-13 activities around the world, including the United States and Mexico, where several 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.

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, including murders, to further its goals and implemented rules that enabled MS-13 to entrench itself in parts of the United States, including within the EDNY where, under the defendants’ leadership and rules, MS-13 has committed numerous acts of violence — including murders, attempted murders, assaults, kidnappings, drug trafficking, extortion of individuals and businesses, obstructed justice and sent dues and the proceeds of criminal activity by wire transfer to MS-13 leaders in El Salvador. For example, this the U.S. Attorney’s Office for the Eastern District of New York’s Long Island Criminal Division has prosecuted hundreds of MS-13 leaders, members, and associates for carrying out more than 65 murders in the Eastern District of New York between 2009 and the present.

When the indictment was unsealed in January 2021, Canales-Rivera was in custody in El Salvador serving a prison sentence, and the United States lodged an INTERPOL Red Notice and submitted an extradition request for Canales-Rivera to the GOES. However, in or about November 2021, Canales-Rivera was released from custody by the GOES and then unlawfully entered Guatemala. Canales-Rivera remained a fugitive until Nov. 7, when he was apprehended by Mexican authorities.

Further, in addition to requesting Canales-Rivera’s extradition, in 2021 and 2022, the United States requested the extradition of 11 of his co-defendants, including Borromeo Enrique Henriquez, also known as “Diablito de Hollywood,” who is widely recognized as the most powerful member of the Ranfla Nacional. To date, the GOES has not extradited any of those defendants.

Two of Canales-Rivera’s co-defendants, Fredy Ivan Jandres-Parada, aka Lucky de Park View and Lacky de Park View, and Cesar Humberto Lopez-Larios, aka El Grenas de Stoners and Oso de Stoners, and three related defendants from the Arevalo-Chavez indictment, Jorge Alexander De La Cruz, aka Cruger de Peatonales; Juan Antonio Martinez-Abrego, aka Mary Jane de Hollywood, and Francisco Javier Roman-Bardales, aka 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 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.

This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13, led by Assistant U.S. Attorney John J. Durham of the Eastern District of New York, and comprised of U.S. Attorneys’ 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 other government agencies and offices have been essential partners in JTFV, including the Justice Department’s National Security Division and the FBI’s Criminal Division; HSI; U.S. Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); USMS; Federal Bureau of Prisons (FBOP); and U.S. Agency for International Development, Office of Inspector General.

The FBI Los Angeles Field Office spearheaded JTFV’s MS-13 leadership investigations, with critical support provided by the Criminal Investigative Division’s Safe Streets Gang Unit, along with HSI’s National Gangs and Violent Crime Unit and HSI’s New York and Houston Field Offices. Additionally, the FBI Legal Attachés in Mexico City and San Salvador, FBI Houston Field Office, HSI Attaché Mexico City, USMS Legal Attaché in Mexico City, and the U.S. Customs and Border Protection Officers at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrest, as well as the U.S. Attorney’s Office and the USMS for the Southern District of Texas for coordinating the initial appearance in Houston.

Numerous Justice Department components that contributed to this indictment, including: the National Security Division’s Counterterrorism Section; the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office; the Justice Department’s Office of International Affairs; and the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training. In addition, the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) have provided valuable assistance for JTFV’s mission.

If convicted, Canales-Rivera faces a maximum sentence of life in prison.

Assistant U.S. Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell for the Eastern District of New York’s Long Island Criminal Division are prosecuting the case, with assistance from Assistant U.S. Attorneys James Donnelly for the District of New Jersey, Matthew Shepherd for the Northern District of Ohio, and Stewart Young for the District of Utah from JTFV.

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

Al final de una audiencia de traslación, un tribunal federal en Houston, Texas ordenó que Elmer Canales-Rivera, alias Crook de Hollywood, un líder de alto rango de La Mara Salvatrucha, alias MS-13, fuera trasladado bajo custodia al Distrito Este de Nueva York, donde él y otros 13 líderes de alto rango de la MS-13 fueron acusados formalmente en diciembre de 2020 por delitos de terrorismo relacionados con su conducción de las actividades delictivas de la organización de criminalidad transnacional en Estados Unidos, El Salvador, México, México y en otros lugares durante las últimas dos décadas.  

El 9 de noviembre, Canales-Rivera fue arrestado por miembros del FBI, Investigaciones de Seguridad Nacional (HSI) y el Servicio de Alguaciles de los Estados Unidos (USMS) al llegar al Aeropuerto Intercontinental George Bush en Houston, Texas. Concretamente, Canales-Rivera ha sido acusado de conspiración para prestar y ocultar apoyo material a terroristas, conspiración para cometer actos de terrorismo que trascienden las fronteras nacionales, conspiración para financiar el terrorismo y conspiración narcoterrorista. 

“Sostenemos que a Elmer Canales-Rivera, miembro fundador de los ‘Doce Apóstoles del Diablo’ de la MS-13, le cabe responsabilidad por las acciones de la pandilla a lo largo de varias décadas para aterrorizar a las comunidades, atacar a las fuerzas del orden y sembrar la violencia aquí en Estados Unidos y en el extranjero”, expresó el fiscal general Merrick B. Garland. “La detención de esta persona, que es un alto líder desde hace tiempo en la MS-13, debería servir de advertencia a otros líderes de la MS-13 para entender que el Departamento de Justicia los hará responder por sus crímenes”.  

“Este arresto deja claro que no hay ningún escondite seguro para los cabecillas de consorcios delictivos que amenazan a nuestras comunidades”, apuntó el secretario de Seguridad Nacional Alejandro N. Mayorkas. “Con la dedicación y las aptitudes de investigación de los agentes de HSI y nuestros socios en el ámbito federal, estamos enfrentando a organizaciones delictivas como la MS-13 y contribuyendo a llevar ante la justicia a todos aquellos que cometen delitos transnacionales”.  

“Con determinación y actuación coordinada, el FBI y nuestras fuerzas de seguridad y socios extranjeros lograron capturar a un criminal violento que amenazaba de manera directa la seguridad de nuestras comunidades”, señaló el director del FBI, Christopher A. Wray. “Este esfuerzo ejemplifica el compromiso del FBI de salvaguardar al público estadounidense y la promesa continua de desarticular a las redes criminales como la MS-13”.   

“La comparecencia del acusado en el día de hoy ante un tribunal federal en Estados Unidos es un paso inmenso en el proceso para que rinda cuentas por su papel clave como presunto miembro del órgano de liderazgo de la pandilla MS-13, conocido como los ‘Doce Apóstoles del Diablo’, y posteriormente renombrado Ranfla Nacional”, expresó el fiscal estadounidense Breon Peace para el Distrito Este de Nueva York. “Conforme se sostuvo, Canales-Rivera y sus coacusados actuaron como un directorio, disponiendo que se cometieran actos de violencia e intimidación y se prestara apoyo material a terroristas en El Salvador y en todo Estados Unidos, incluido el Distrito Este de Nueva York, donde en breve comparecerá ante un juzgado federal en Central Islip para responder por estos cargos”.  

Según se establece en la acusación formal, que se pronunció el 16 de diciembre de 2020 y se reveló el 14 de enero de 2021, Canales-Rivera y sus coacusados forman parte de la estructura de mando y control de la MS-13, que está conformada por la Ranfla Nacional, Ranfla en Las Calles y Ranfla en Los Penales. Desempeñan papeles importantes de liderazgo en las operaciones de la organización en El Salvador, México, Estados Unidos y en todo el mundo. En total, 27 de los máximos líderes de la MS-13 han sido acusados en el Distrito Este de Nueva York en esta acusación formal y en la acusación conexa en la causa Estados Unidos v. Arevalo-Chávez et al. 

Se sostiene asimismo que, aproximadamente en 2002, Canales-Rivera, sus coacusados y otros líderes de la MS-13 empezaron a establecer una estructura jerárquica de mando y control sumamente organizada como medio para ejecutar sus decisiones y hacer cumplir sus órdenes, incluso mientras se encontraban en prisión. Ordenaron que se cometieran hechos de violencia y homicidios en El Salvador, Estados Unidos y otros lugares, establecieron campamentos de entrenamiento de estilo militar para sus miembros y obtuvieron armas militares como fusiles, pistolas, granadas, artefactos explosivos improvisados y lanzacohetes. Además, a partir de aproximadamente 2012, Canales-Rivera y otros miembros de la Ranfla Nacional mantuvieron negociaciones con funcionarios gubernamentales de El Salvador y obtuvieron beneficios y concesiones del Gobierno de El Salvador. Con el fin de obtener esos beneficios y concesiones del Gobierno de El Salvador, la MS-13 llevó a cabo manifestaciones públicas de violencia para amenazar e intimidar a la población civil, atacó a agentes de la fuerza pública y militares del Gobierno de El Salvador y manipuló el proceso electoral en El Salvador. Canales-Rivera tuvo uno de los papeles más prevalentes en las negociaciones y acuerdos de la MS-13 con el Gobierno de El Salvador. 

A su vez, como se alega, la Ranfla Nacional dirigió la expansión de las actividades de la MS-13 en todo el mundo, incluidos Estados Unidos y México, adonde se envió a varios altos líderes a organizar operaciones, entablar contactos para obtener narcóticos y armas de fuego de carteles mexicanos de narcotráfico como los Zetas, el Cártel del Golfo, el Cártel de Jalisco Nueva Generación (CJNG) y el Cártel de Sinaloa, y participar en trata y contrabando de personas. La Ranfla Nacional también ordenó a los numerosos miembros de la MS-13 en Estados Unidos que se involucren en actividades delictivas, como tráfico de drogas y extorsión, con el fin de recaudar dinero para apoyar las actividades terroristas de la MS-13 en El Salvador y en otros lugares.  

Por último, la Ranfla Nacional y la estructura de liderazgo transnacional de la MS-13 habrían ordenado a miembros en Estados Unidos que cometieran actos de violencia, incluidos homicidios, para conseguir sus objetivos e implementar reglas que posibilitaron que la MS-13 se afianzara en partes de Estados Unidos, incluso dentro del Distrito Este de Nueva York, donde, bajo el liderazgo y las reglas de los acusados, la MS-13 ha perpetrado numerosos actos de violencia, como homicidios, tentativas de homicidio, agresiones, secuestros, tráfico de drogas y extorsión de personas y empresas, ha obstruido la justicia y ha enviado contribuciones y el producto de actividades delictivas mediante transferencias electrónicas a líderes de la MS-13 en El Salvador. Por ejemplo, la Fiscalía Federal para la División Criminal de Long Island del Distrito Este de Nueva York ha procesado a cientos de líderes, miembros y asociados de la MS-13 por cometer más de 65 homicidios en el Distrito Este de Nueva York entre 2009 y hasta el momento. 

Cuando se dio a conocer la acusación en enero de 2021, Canales-Rivera se encontraba detenido en El Salvador cumpliendo una pena de prisión, y Estados Unidos presentó una circular roja de INTERPOL y una solicitud de extradición de Canales-Rivera al Gobierno de El Salvador. Sin embargo, aproximadamente en noviembre de 2021, Canales-Rivera fue liberado de la custodia del Gobierno de El Salvador y más tarde ingresó ilegalmente en Guatemala. Canales-Rivera permaneció prófugo hasta el 7 de noviembre, cuando fue detenido por las autoridades mexicanas. 

Además de solicitar la extradición de Canales-Rivera, en 2021 y 2022, Estados Unidos solicitó la extradición de 11 de sus coacusados, incluido Borromeo Enrique Henríquez, también conocido como “Diablito de Hollywood”, quien es ampliamente reconocido como el integrante más poderoso de la Ranfla Nacional. Hasta la fecha, el Gobierno de El Salvador no ha extraditado a ninguno de esos acusados.  

Dos de las otras personas acusadas junto con Canales-Rivera —Fredy Ivan Jandres-Parada, alias Lucky de Park View y Lacky de Park View, y César Humberto López-Larios, alias El Grenas de Stoners y Oso de Stoners— y tres acusados que figuran en la acusación de Arevalo-Chávez —Jorge Alexander De La Cruz, alias Cruger de Peatonales; Juan Antonio Martínez-Abrego, alias Mary Jane de Hollywood, y Francisco Javier Román-Bardales, alias Veterano de Tribus— siguen prófugos. Se recomienda enfáticamente al público que tenga información sobre su paradero que se comunique con la línea gratuita del FBI para denuncias sobre la MS-13, 1-866-STP-MS13 (1-866-787-6713), o la línea de denuncias de HSI llamando al 866-347-2423 o a través de www.ice.gov/webform/ice-tip-form  

Juntos, el FBI y HSI han ofrecido una recompensa de USD 20.000 a cambio de información que posibilite el arresto y la condena de los fugitivos. 

Este caso fue presentado por la Fuerza Operativa Conjunta Vulcan (Joint Task Force Vulcan, JTFV), creada para combatir a la MS-13, dirigida por el fiscal federal adjunto John J. Durham del Distrito Este de Nueva York, e integrada por Fiscalías Federales en todo el país, incluido 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 Florida; el Distrito Este de Virginia; el Distrito Sur de California; el Distrito de Nevada; el Distrito de Alaska; y el Distrito de Columbia, así como otras agencias y oficinas gubernamentales que han sido socios clave en la JTFV, incluida la División de Seguridad Nacional del Departamento de Justicia y la División Criminal del FBI; Investigaciones de Seguridad Nacional (HSI); la Administración para el Control de Drogas de Estados Unidos (DEA); la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos (ATF); el USMS; la Oficina Federal de Prisiones (FBOP); y la Oficina del Inspector General de la Agencia de Estados Unidos para el Desarrollo Internacional.  

La Oficina de Campo del FBI en Los Ángeles encabezó las investigaciones de la JTFV sobre los cabecillas de la MS-13, con el apoyo crítico prestado por la Unidad de Pandillas Safe Streets de la División de Investigaciones Penales, junto con la Unidad Nacional de Pandillas y Delitos Violentos de HSI y las Oficinas de Campo de HSI en Nueva York y Houston. A su vez, los agregados legales del FBI en Ciudad de México y San Salvador, la Oficina de Campo del FBI en Houston, el Agregado de HSI en Ciudad de México, el Agregado Legal del USMS en la Ciudad de México y los agentes del Servicio de Aduanas y Protección Fronteriza de Estados Unidos en el Aeropuerto Intercontinental George Bush en Houston prestaron apoyo crítico para el arresto, así como la Fiscalía Federal y el USMS para el Distrito Sur de Texas para coordinar la audiencia inicial en Houston. 

Fueron varios los componentes del Departamento de Justicia que contribuyeron a esta acusación, incluidas la Sección Antiterrorista de la División de Seguridad Nacional; la Oficina Ejecutiva de las Fuerzas Operativas sobre la delincuencia organizada y la represión en materia de drogas (OCDETF); la Oficina de Asuntos Internacionales del Departamento de Justicia; y la Oficina de Desarrollo, Asistencia y Capacitación del Ministerio Público en el Extranjero de la División Penal. Además, la Oficina de Asuntos Internacionales de Narcóticos y Aplicación de la Ley del Departamento de Estado de EE. UU. y la Oficina de Control de Activos Extranjeros (Office of Foreign Assets Control, OFAC) del Departamento del Tesoro de EE. UU. han proporcionado asistencia valiosa para la misión de la JTFV.  

De ser condenado, Canales-Rivera se enfrenta una pena máxima de prisión perpetua.  

La acción penal es impulsada por los fiscales federales adjuntos John J. Durham, Paul G. Scotti, Justina L. Geraci, y Megan E. Farrell, de la División Penal de Long Island del Distrito Este de Nueva York, con la asistencia de los fiscales federales adjuntos James Donnelly del Distrito de Nueva Jersey, Matthew Shepherd del Distrito Norte de Ohio y Stewart Young del Distrito de Utah de la JTFV.  

Una acusación implica solamente un señalamiento. Todos los acusados se presumen inocentes hasta tanto se demuestre su culpabilidad sin lugar a duda razonable en un tribunal de justicia. 

Earlier today, Aurelien Michel, a French national who had been residing in the United Arab Emirates (UAE), pled guilty at the federal courthouse in Brooklyn, New York to conspiring to commit wire fraud in connection with defrauding purchasers of “Mutant Ape Planet” NFTs, a type of digital asset.  Today’s proceeding took place before United States Magistrate Judge Vera M. Scanlon.  When sentenced, Michel faces up to five years in prison.  Michel has also agreed to pay $1.4 million in forfeiture.  Michel was charged in January 2023.

Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the guilty plea.

“With today’s guilty plea, Michel has admitted that he conspired with others to defraud consumers eager to participate in a new digital asset market,” stated United States Attorney Breon Peace.  “Our Office is acutely aware that criminal actors are taking advantage of the constant pace of innovation in the digital asset space and the investing public’s desire to become involved in cryptocurrency to perpetrate large-scale frauds.  Holding these criminal actors accountable and protecting the public is, and will remain, a priority of this Office.”

Mr. Peace expressed his appreciation to the New York Police Department, U.S. Customs and Border Protection, the U.S. Postal Inspection Service, Port Authority of New York and New Jersey Police, and Nassau County Sheriff’s Department.

“Aurelien Michel enticed investors with promises of capitalizing on the NFT trend, only to abandon the project after amassing nearly $3 million in what’s described as a ‘rug-pull scheme.’ The defendant, accused of misleading the Mutant Ape NFT community, claimed innocence and even labeled victims as ‘too toxic.’ However, these attempts to evade responsibility came to a conclusion with today’s plea,” stated Ivan J. Arvelo, Special Agent in Charge of HSI New York. “In the face of evolving investment landscapes, HSI remains vigilant, utilizing cutting-edge tools to safeguard individuals from unscrupulous actors and their attempts to exploit well-meaning investors.”

“While Michel purported to sell dream NFTs backed with rewards and benefits, he defrauded investors, turning their dream into a nightmare of deception and losses.  There is no excusing this kind of greed, and today’s guilty plea brings Michel one step closer to realizing his own nightmare—behind bars,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.

According to court filings and facts presented during the plea proceeding, Michel and his co-conspirators marketed the NFTs to purchasers by falsely promising them numerous rewards and benefits designed to increase demand for, and the value of, their newly acquired NFTs.  But Michel and his co-conspirators intentionally failed to deliver on these promises, diverting millions of dollars’ worth of proceeds for their personal benefit while continuing to represent that the benefits would be forthcoming. 

The government’s case is being prosecuted by Assistant United States Attorneys Drew G. Rolle and Dylan A. Stern of the Office’s Business and Securities Fraud Section with assistance from Paralegal Specialist William Daniels.

If you believe that you have been a victim of this crime, please call the HSI Tip Line at 1-866-347-2423.

The Defendant:

AURELIEN MICHEL
Age:  25
Dubai, United Arab Emirates

E.D.N.Y. Docket No. 23-CR-418 (MKB)

CENTRAL ISLIP, NY – Earlier today, Samuel Miele pleaded guilty at the federal courthouse in Central Islip to wire fraud committed while he was working as a fundraiser for a candidate seeking election to the U.S. House of Representatives (Candidate #1).  Miele agreed to pay $109,171 in restitution, $69,136 in forfeiture, and a separate stipulated payment of $470,000 to a contributor.  The proceeding was held before United States District Judge Joanna Seybert.

Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County, announced the guilty plea.

"The defendant used fraud and deceit to steal more than one hundred thousand dollars from his victims, funneling this money into the campaign committees of candidates for the House, and into his own pockets,” stated United States Attorney Peace.  “Defrauding potential political contributors undermines our democracy, and we will vigorously prosecute such conduct.”

“Today, Samuel Miele admitted to engaging in multiple frauds designed to improperly raise election campaign funds and for his own personal benefit.  Miele now rightly faces punishment in the criminal justice system for his criminal acts.  The FBI is committed to enforcing the laws that protect the integrity of electoral process – the hallmark of our democracy,” stated FBI Assistant Director-in-Charge Smith.

“This defendant misrepresented himself as a high-ranking congressional aide to deceived political donors and used their money to pad his own pocket and the coffers of a candidate,” District Attorney Donnelly stated.  “The integrity of fundraising practices is essential for fair elections. We stand alongside our federal partners to protect our electoral institutions and are proud to assist in this prosecution.”

As part of the scheme, Miele impersonated a high-ranking aide to a member of House leadership while soliciting funds for Candidate #1’s campaign.  As part of his plea, Miele also admitted that he committed access device fraud by charging credit cards without authorization for contributions to the campaigns of Candidate #1 and other candidates, as well as for Miele’s personal use.  When sentenced, he faces up to 20 years in prison.

The FBI is investigating the case with assistance from the Nassau County District Attorney’s Office.

The government’s case is being prosecuted by the Office’s Public Integrity Section and Long Island Criminal Division, and the Criminal Division’s Public Integrity Section.  Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys John Taddei and Jacob Steiner are in charge of the prosecution, with assistance from Paralegal Specialist Rachel Friedman.

The Defendant:

SAMUEL MIELE
Age:  27
New York, NY

E.D.N.Y. Docket No. 23-CR-327 (JS)

A congressional campaign staffer pleaded guilty today to wire fraud in connection with a scheme to fraudulently obtain political contributions.

According to court documents, Samuel Miele, 27, of New York, worked as a fundraiser for a candidate seeking election to the U.S. House of Representatives (Candidate #1). As part of the scheme, Miele impersonated a high-ranking aide to a member of House leadership while soliciting funds for Candidate #1’s campaign. Miele also admitted that he committed access device fraud by charging credit cards without authorization for contributions to Candidate #1’s and other candidates’ campaigns, as well as for Miele’s personal use. 

Miele is scheduled to be sentenced on April 30, 2024, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director Luis Quesada 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 is investigating the case, with assistance from the Nassau County District Attorney’s Office.

Trial Attorneys Jacob Steiner and John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise for the Eastern District of New York are prosecuting the case, with assistance from Paralegal Specialist Rachel Friedman.

Earlier today, in federal court in Central Islip, Charles Carter, also known as “Chase,” pleaded guilty to conspiring to distribute more than 40 grams of fentanyl.  As part of his plea, Carter admitted that fentanyl that he sold contributed to the drug overdose deaths of two victims (“Victim-1” and “Victim-2”) in 2020 and 2021.  Carter also admitted that in, 2021, he sold more than 43 grams of fentanyl to an undercover officer.  The plea proceeding was held before United States District Gary R. Brown.  As part of his plea agreement, Carter forfeited approximately $3,200 in seized narcotics sales proceeds and a 2009 Jeep Patriot that he used to facilitate narcotics sales.  When sentenced, Carter faces five to 40 years’ imprisonment.  

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

“Carter’s fentanyl sales contributed to the overdose deaths of a man and a woman, which only added to pain and anguish caused by an opioid epidemic that has harmed so many on Long Island,” stated United States Attorney Peace.  “The defendant’s guilty plea today is the result of the relentless efforts by this Office and our law enforcement partners to prosecute traffickers dealing lethal drugs for profit and bring justice for the victims and families devastated by the scourge of fentanyl.”

“During the COVID pandemic, when the world was focused on saving lives and the public’s health, Carter was making plans to sell ‘the good stuff’ which ended lives and fueled the fentanyl crisis.  This plea exemplifies law enforcement’s efforts to bring to justice those causing the most harm to our communities,” stated DEA Special Agent-in-Charge Tarentino. 

“Defendant Carter knowingly sold narcotics laced with fentanyl for months which contributed to the premature deaths of a man and woman.  With this plea, the defendant will receive a sentence that fits this crime.  All of this would not be possible without the exemplary work from numerous law enforcement agencies and their investigators,” stated NCPD Commissioner Ryder.

“With drug overdoses rising at an alarming rate the Glen Cove Police Department will continue to make it a priority to identify and arrest those selling drugs in our community,” stated GCPD Chief of Police Whitton.

Between August 2020 and February 2021, Carter sold more than 40 grams of fentanyl to two overdose victims and an undercover GCPD detective.   The investigation revealed that on August 6, 2020, a 23-year-old individual (Victim-1) died of a drug-related overdose at her residence in Glen Cove, Long Island.  Cellular telephone analysis and additional investigation, showed that the fentanyl that Victim-1 used was purchased from Carter about two days before Victim-1’s death and that Victim-1 had drug-sale-related communications with Carter.  On February 5, 2021, a 40-year-old individual (Victim-2) died of a drug-related overdose at his residence in Farmingdale, Long Island.   A search of Victim-2’s phone revealed text messages between Carter and Victim-2, which related to Victim-2’s purchase of fentanyl, shortly before and in the months preceding his overdose death.  For example, on January 21, 2021, Carter wrote text messages to Victim-2, stating “im.(sic) around and I got the good stuff[.] Do u (sic) need to see me..??” Autopsies performed on both victims revealed traces of fentanyl in their bodies.  Additionally, Carter repeatedly sold fentanyl to the undercover GCPD detective in doses that could have been lethal if consumed, including approximately 43 grams of fentanyl in January 2021.

According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2019, nearly 71,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States.  The increase in overdose deaths has been driven in large part by fentanyl, a drug that has been described as 50 to 100 times more potent than morphine.   In 2019, over 14,000 people died in the United States from a drug overdose involving heroin.  From 2013 to 2019, the synthetic opioid death rate increased by more than 1,000 percent.  Of those deaths, over 70% involved a prescription or illicit opioid.  Among New York State residents, the number of overdose deaths involving any opioid increased each year between 2010 and 2017, with an overall increase of 200.2 percent from 1,074 in 2010 to 3,224 in 2017, according to the New York State Health Department.   

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

The Defendant:

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

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

Di pengadilan federal di Brooklyn, Dakwaan 16 dakwaan dan 16 dakwaan pengganti telah dibuka segelnyadalam penuntutan warga negara Indonesia bernama Francius Marganda yang melakukan penipuan sekuritas, penipuan kawat, pencucian uang dan tuduhan konspirasi terkait karena melakukan skema Ponzi dari bulan Mei 2019 hingga Mei 2021 yang menargetkan ratusan korban investor yang menetap di lebih dari 12 negara bagian termasuk New York dan di Indonesia. Marganda diekstradisi ke Distrik Timur New York dari Signapore kemarin dan akan diadili pada 13 November 2023 di hadapan Hakim Ketua Amerika Serikat Lois Bloom.

Breon Peace, Pengacara Amerika Serikat untuk Distrik Timur New York; James Smith, Asisten Direktur Penanggung Jawab, Federal Bureau of Investigation (Biro Investigasi Federal), Kantor Lapangan New York (FBI); dan Ivan J. Arvelo, Agen Khusus Penanggung Jawab, U.S. Department of Homeland Security (Departemen Keamanan Dalam Negeri AS), Investigasi Keamanan Dalam Negeri (HSI), mengumumkan ekstradisi dan gugatannya.  

“Ratusan korban menitipkan uang hasil jerih payah mereka kepada rekan senegaranya dari Indonesia yang ternyata adalah penipu yang jahat. Marganda mengkhianati kepercayaan mereka dengan menggunakan skema Ponzi klasik untuk menipu mereka hingga jutaan dolar untuk keuntungan pribadinya,” kata Peace, Pengacara Amerika Serikat. “Kantor ini berkomitmen untuk melindungi masyarakat investor dari pemangsa seperti Marganda dan akan bekerja sama dengan mitra penegak hukum kami untuk membawa para penjahat ini ke keadilan di mana pun mereka berada.”

Mr. Peace berterima kasih kepada Office of International Affairs (Kantor Hubungan Internasional) di Departemen Kehakiman, khususnya Atase DOJ yang berbasis di Manila dan Bangkok; mitra penegakan hukum di U.S. Embassy (Kedutaan Besar AS) di Singapura, termasuk Atase Hukum FBI, Atase HSI, dan U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office (Kantor Investigasi Kriminal Luar Negeri Layanan Keamanan Diplomatik di Departemen Luar Negeri AS); dan para pihak berwenang di Singapura, khususnya Kepolisian Singapura dan Attorney-General’s Chambers (Dewan Kejaksaan Agung), atas bantuan mereka dalam penangkapan dan ekstradisi Marganda.  Mr. Peace juga berterima kasih kepada Securities and Exchange Commission, Fort Worth Regional Office (Komisi Sekuritas dan Bursa, Kantor Regional di Fort Worth); United States Attorney’s Office for the Southern District of New York (Kantor Kejaksaan Amerika Serikat untuk Distrik Selatan New York); Internal Revenue Service Criminal Investigation (Investigasi Kriminal Dinas Pendapatan Internal), New York; Federal Trade Commission (Komisi Perdagangan Federal); New York State Attorney General’s Office (Kantor Kejaksaan Agung Negara Bagian New York); Commonwealth of Massachusetts Attorney General’s Office (Kantor Kejaksaan Agung Persemakmuran Massachusetts); New York County District Attorney’s Office (Kantor Kejaksaan Wilayah New York); Queens County District Attorney’s Office (Kantor Kejaksaan Wilayah Queens); New York City Police Department (Departemen Kepolisian Kota New York); Westford Police Department (Departemen Kepolisian Westford), di Westford, Massachusetts; Richfield Police Department (Departemen Kepolisian Richfield), di Richfield, Minnesota; dan Lexington Police Department (Departemen Kepolisian Lexington), di Lexington, Carolina Selatan, atas bantuan mereka dalam penyelidikan ini.

“Marganda diduga memangsa rekan-rekan ekspatriat dan senegaranya untuk menipu uang mereka. Terdakwa membujuk korbannya dengan janji pengembalian investasi yang luar biasa, sebuah godaan yang terbukti berhasil dalam skema Ponzi.  Sebaliknya, uang korban tersebut digunakan untuk membiayai gaya hidup mewah si terdakwa. FBI dan mitra penegak hukum kami berdedikasi untuk melindungi masyarakat dari penipuan dan meyakinkan bahwa bagi mereka yang melanjutkan tipe skema seperti ini akan menghadapi konsekuensi atas perbuatan mereka,” ujar Asisten Direktur Penanggung Jawab dari FBI yang bernama Smith.

“Seperti yang dituduhkan, Marganda dan rekan-rekan konspiratornya memangsa komunitas Indonesia dan Indo-Amerika, menjanjikan tingkat pengembalian yang tampaknya terlalu bagus untuk menjadi kenyataan hingga skema Ponzi mereka runtuh, sehingga investor kehilangan tabungan dengan jumlah jutaan dolar yang telah mereka peroleh dengan susah payah,” ujar Agen Khusus HIS Arvelo.  “HSI bangga bisa bekerja sama dengan mitra kami di dalam dan luar negeri, dengan memanfaatkan jejak internasional kami untuk melindungi korban yang tidak bersalah dari skema pemangsa dan membawa para pelaku ke keadilan.

Marganda memiliki dan mengoperasikan Air Travel Ticketing Corp., sebuah perusahaan tiket pesawat diskon di New York, dan mengoperasikan MH Lux & Beauty Inc., sebuah perusahaan barang mewah yang terdaftar di California. Seperti yang dituduhkan di dalam dakwaan, dari bulan Mei 2019 hingga Mei 2021, Marganda dan rekan-rekan konspiratornya menjalankan skema untuk menipu para investor dengan cara meminta investasi dalam dua program palsu, yaitu Easy Transfer dan Global Transfer —yang mana Marganda dan rekan-rekan konspiratornya  menggambarkan secara palsu sebagai program pinjaman jangka pendek dengan bunga tinggi di mana para investor akan memperoleh pendapatan pasif.  Ratusan investor, banyak dari mereka adalah pelanggan dari perusahaan Air Travel milik terdakwa, sebagian besar berasal dari komunitas Indonesia dan Indo-Amerika, dan mereka menginvestasikan lebih dari 23 juta dolar ke dalam Easy Transfer dan Global Transfer. Banyak dari korban-korban ini mempunyai keuangan yang terbatas dan mengumpulkan sumber daya mereka dari kerabat dan teman-teman untuk melakukan investasi.

Dalam surat-surat berisi perjanjian palsu yang dibagikan kepada korban investor, peserta skema menjanjikan tingkat pengembalian yang tinggi – seringkali setinggi 200% atau lebih – pada simpanan investor.

Saat skema Ponzi berlanjut, Marganda dan rekan-rekan konspiratornya mengarahkan para investor untuk melakukan pembayaran tunai dan untuk menyetorkan dana ke dalam rekening bank mereka dan ke rekening investor-investor lain. Marganda dan rekan-rekan konspiratornya menyalahgunakan dana tersebut untuk kepentingan mereka sendiri, termasuk dengan membeli perumahan dan barang-barang mewah. Marganda dan rekan-rekan konspiratornya juga mencuci uang terkait dengan skema tersebut ke dalam rekening bank yang berlokasi di Distrik Timur kota New York dan di Indonesia. Skema Ponzi tersebut akhirnya gagal di bulan Mei 2021, ketika Marganda dan rekan-rekan konspiratornya berhenti melakukan pembayaran kepada para investor.

Tuduhan di dalam dakwaan adalah dugaan, dan Marganda dianggap tidak bersalah kecuali dan hingga terbukti bersalah. Jika terbukti bersalah, Marganda akan menghadapi hukuman penjara hingga 20 tahun untuk setiap tuduhan penipuan kawat, penipuan sekuritas, konspirasi penipuan kawat dan konspirasi pencucian uang dan untuk empat tuduhan pencucian uang; hingga 10 tahun penjara untuk dua tuduhan pencucian uang; dan hukuman penjara hingga lima tahun untuk tuduhan konspirasi penipuan sekuritas.

FBI dan HSI telah membentuk situs web dan hotline email untuk para calon korban. Jika Anda memiliki informasi mengenai tuduhan-tuduhan dalam dakwaan ini atau yakin bahwa Anda mungkin menjadi korban, silakan kirim email ke HSIMarganda@hsi.dhs.gov atau www.fbi.gov/Marganda.

Pada bulan Juli 2022, Mr. Peace terpilih sebagai Ketua sub White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (komite Penipuan Kerah Putih untuk Dewan Pertimbangan Kejaksaan Agung) (AGAC).  Sebagai pemimpin sub komite, Mr. Peace memainkan peran penting dalam membuat rekomendasi untuk AGAC untuk memfasilitasi pencegahan, penyelidikan dan penuntutan berbagai kejahatan tanpa kekerasan yang bermotif finansial, termasuk penipuan kawat, seperti penipuan yang telah dilakukan oleh Marganda.

Kasus pemerintah ini ditangani oleh Bagian Integritas Publik dari Kantor tersebut. Asisten Pengacara Amerika Serikat bernama Victor Zapana dan Laura Zuckerwise bertanggung jawab atas penuntutan tersebut, dengan bantuan dari Paralegal Spesialis Kavya Kannan.

Terdakwa:

FRANCIUS MARGANDA
Umur:  40
Jakarta, Indonesia dan sebelumnya dari Queens, New York

E.D.N.Y. Docket No. 22-CR-481 (DLI)

A 16-count indictment and 16-count superseding indictment were unsealed in federal court in Brooklyn charging Indonesian national Francius Marganda with securities fraud, wire fraud, money laundering and related conspiracy counts for running a Ponzi scheme from May 2019 to May 2021 that targeted hundreds of victim investors residing in more than 12 states including New York and in Indonesia.  Marganda was extradited to the Eastern District of New York from Singapore yesterday and will be arraigned on November 13, 2023 before United States Chief Magistrate Judge Lois Bloom.

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 Ivan J. Arvelo, Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), announced the extradition and charges.

“Hundreds of victims entrusted their hard-earned money to a fellow countryman from Indonesia who turned out to be an unscrupulous fraudster.  Marganda betrayed their trust by using a classic Ponzi scheme to defraud them out of millions of dollars for his own personal gain,” stated United States Attorney Peace.  “This Office is committed to protecting the investing public from predators like Marganda and will work closely with our law enforcement partners to bring these criminals to justice regardless of where in the world they are located.”

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

“Marganda allegedly preyed on his fellow expatriates and countrymen in order to defraud them of their money.  The defendant enticed his victims with promises of an extraordinary return on investment, a tried-and-true lure into a Ponzi Scheme.  Instead, the victims’ money went to funding the defendant’s extravagant lifestyle.  The FBI and our law enforcement partners are dedicated to protecting the public from scams and ensuring that those who perpetuate these types of schemes face the consequences for their actions,” stated FBI Assistant Director-in-Charge Smith.   

“As alleged, Marganda and his co-conspirators preyed on the Indonesian and Indo-American community, promising rates of return that appeared too good to be true until their Ponzi scheme came crashing down, leaving investors out of their hard-earned savings to the tune of millions of dollars,” stated HSI Special Agent-in-Charge Arvelo.  “HSI is proud to work with our partners at home and abroad, leveraging our international footprint to protect innocent victims from predatory schemes and bring the perpetrators to justice.”  

Marganda owned and operated Air Travel Ticketing Corp., a discount airline tickets company in New York, and operated MH Lux & Beauty Inc., a purported luxury goods company registered in California.  As alleged in the indictment, from May 2019 to May 2021, Marganda and his co-conspirators ran a scheme to defraud investors by soliciting investments in two sham programs called Easy Transfer and Global Transfer—which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income.  Hundreds of investors, many of the defendant’s Air Travel customers, were predominantly from the Indonesian and Indo-American community, and they invested more than $23 million into Easy Transfer and Global Transfer.  Many of the victims had limited means and had pooled their resources with relatives and friends to make investments. 

In fraudulent agreement letters distributed to victim investors, the scheme participants promised high rates of return—often as high as 200% or more—on the investors’ deposits.  As the Ponzi scheme continued, Marganda and his co-conspirators directed investors to make cash payments and to deposit funds into their bank accounts and the accounts of other investors.  Marganda and his co-conspirators misappropriated the funds for their own benefit, including by buying real estate and luxury goods.  Marganda and his co-conspirators also laundered scheme-related money into bank accounts located in the Eastern District of New York and in Indonesia.  The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments to investors.

The charges in the indictment are allegations, and Marganda is presumed innocent unless and until proven guilty.  If convicted, Marganda faces up to 20 years’ imprisonment for each of the wire fraud, securities fraud, wire fraud conspiracy and money laundering conspiracy counts and for four of the money laundering counts; up to 10 years’ imprisonment for two of the money laundering counts; and up to five years’ imprisonment for the securities fraud conspiracy count.

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

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

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

The Defendant:

FRANCIUS MARGANDA
Age:  40
Jakarta, Indonesia and formerly of Queens, New York

E.D.N.Y. Docket No. 22-CR-481 (DLI)

Earlier today, at the federal courthouse in Brooklyn, United States District Judge Frederic Block sentenced Darrell Robinson to 50 months in prison for illegal gun possession, including an AR-15 style rifle, in connection with firearms trafficking scheme.  Robinson pleaded guilty in April 2023 to being a felon in possession of a firearm.

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.

“I have no doubt that lives may have been saved and tragedies averted by the seizure of these lethal weapons that were transported to our district from out-of-state by a convicted felon,” stated United States Attorney Peace.  “Today’s sentence is validation of the tireless work of this Office and our law enforcement partners who are working to protect the community from gun violence.”

On August 8, 2022, law enforcement learned that Robinson would be traveling in a vehicle to the Willets Point section of Queens transporting firearms to sell. Acting pursuant to a judicially-issued search warrant, law enforcement agents stopped Robinson’s vehicle and found a bag containing multiple firearms.  Recovered were a Smith & Wesson .380 caliber pistol, a Taurus 9 mm pistol, a Bersa .380 caliber pistol, a Springfield Armory 9 mm pistol, a Smith & Wesson 9 mm pistol and a Smith & Wesson .22 caliber rifle, an AR-15 style rifle.

Robinson has at least seven previous state felony convictions, including for armed robbery and aggravated assault.

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.  As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.  The U.S. Attorney’s Office for the Eastern District of New York is currently partnering with the SCPD, the New York City Police Department (NYPD), the Federal Bureau of Investigation (FBI), ATF, the U.S. Department of Homeland Security, Homeland Security Investigations (DHS/HSI), and the Drug Enforcement Administration (DEA) in its PSN mission.

The government’s case is being handled by the office’s General Crimes Section.  Assistant United States Attorney Kaitlin McTague and Special Assistant United States Attorney Sean Fern are in charge of the prosecution.

The Defendant:

Darrell Robinson
Age:  30
Columbia, South Carolina

E.D.N.Y. Docket No. 22-CR-403 (FB)

A 16-count indictment was unsealed today in federal court in Brooklyn charging 10 defendants with racketeering conspiracy, extortion, witness retaliation, and union-related crimes committed in an attempt to dominate the New York carting and demolition industries. All ten defendants are in custody and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.  In connection with the arrests, federal authorities executed search warrants, one of which resulted in the seizure of multiple firearms from an associate of the Gambino crime Family. 

In a coordinated operation, Italian law enforcement today arrested six organized crime members and associates who are charged with, among other crimes, mafia association and connected criminal offenses. One individual remains at large.

The defendants are Joseph Lanni, also known as “Joe Brooklyn” and “Mommino,” an alleged captain in the Gambino organized crime family, Diego “Danny” Tantillo, Angelo Gradilone, also known as “Fifi,” and James LaForte, alleged Gambino soldiers, Vito Rappa, alleged U.S.-based Sicilian Mafia member and Gambino associate, Francesco Vicari, also known as “Uncle Ciccio,” alleged U.S.-based Sicilian Mafia associate and Gambino associate, and Salvatore DiLorenzo, Robert Brooke, Kyle Johnson, also known as “Twin,” and Vincent Minsquero, also known as “Vinny Slick,” alleged Gambino associates. 

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), Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Elizabeth Crotty, Commissioner and Chair, New York City Business Integrity Commission (BIC), announced the charges.

“As alleged, for years, the defendants committed violent extortions, assaults, arson, witness retaliation and other crimes in an attempt to dominate the New York carting and demolition industries,” stated United States Attorney Breon Peace.  “Today’s arrests reflect the commitment of this Office and our law enforcement partners, both here and abroad, to keep our communities safe by the complete dismantling of organized crime.” 

Mr. Peace expressed his appreciation to the New York Waterfront Commission, the Office’s law enforcement partners in Italy, including the Prosecutor of Palermo, the Polizia di Stato, the Servizio Centrale Operativo, and the Squadra Mobile of Palermo.

“These defendants learned the hard way that the FBI is united with our law enforcement locally and internationally in our efforts to eradicate the insidious organized crime threat.  Those arrested are alleged to have taken part in a racketeering conspiracy in an attempt to control the carting and demolition industries in the city.  The FBI will continue to lead the fight against organized crime and ensure that individuals willing to cross the line face punishment in the criminal justice system” stated FBI Assistant Director-in-Charge Smith.

“Today’s arrests should serve as a warning to others who believe they can operate in plain sight with apparent impunity – the NYPD and our law enforcement partners exist to shatter that notion,” stated NYPD Commissioner Edward A. Caban. “And we will continue to take down members of traditional organized crime wherever they may operate.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” said DOL-OIG Special Agent-in Charge Jonathan Mellone.

“Investigating these matters is at the heart of BIC’s mission to ensure the industries under our regulation do not pose a risk to public safety. These arrests demonstrate that the influence of organized crime will never go unchecked,” stated BIC Commissioner and Chair Elizabeth Crotty.  “BIC thanks the NYPD, FBI, EDNY, and our other agency partners for their collaboration and excellent work on this case.”

As alleged in the government’s court filings and summarized below, members and associates of the Gambino crime family used violent extortions, fraud, theft and embezzlement schemes to infiltrate the carting and demolition industries to enrich themselves and the Gambino crime family, including by laundering criminal proceeds.  For example, in the midst of a financial dispute between Tantillo and the owners of Demolition Company 1, Tantillo and Johnson coordinated a violent hammer assault on the dispatcher for Demolition Company 1, which left the dispatcher bleeding and seriously injured.   

Extortions Related to the Carting and Demolition Industries

Tantillo, Rappa, Vicari and Johnson engaged in a violent extortion conspiracy relating to the demand and receipt of money from John Doe 1, who operated a carting business in the New York City area.  The extortion scheme involved threatening John Doe 1 with a bat, setting fire to the steps to John Doe 1’s residence, attempting to damage John Doe 1’s carting trucks, and violently assaulting an associate of John Doe 1.   In addition, Tantillo and Vicari were captured on judicially-authorized wiretaps discussing threats they made to John Doe 1 and John Doe 1’s father-in-law.  On one call, Rappa stated that Vicari “acted like the ‘Last of the Samurai,” describing how Vicari picked up a knife and directed John Doe 1’s father-in-law to threaten to cut John Doe 1 in half in order to get John Doe 1 to make extortionate payments.  After John Doe 1 ultimately made a payment of $4,000 to Vicari, Vicari and Rappa met and sent Tantillo a photo of Vicari raising a small champagne bottle, as in a toast.

In addition, Tantillo, Brooke and Johnson engaged in two separate violent extortion schemes of Demolition Company 1 and its owners over purported debts owed to Tantillo and a company operated by Tantillo and Brooke.   Brooke violently assaulted one of the owners on a street corner in midtown Manhattan.  In another instance, as mentioned, Tantillo and Johnson coordinated a violent hammer assault on a dispatcher at Demolition Company 1, which left the dispatcher bleeding and seriously injured.  Pictures of the victim dispatcher were then circulated to various people in the carting and demolition industries. 

Frauds and Union-Related Crimes in the Carting and Demolition Industries

The defendants also committed a series of crimes to steal and embezzle from unions and employee benefit plans and rigged bids in the demolition and carting industries.  As part of one such scheme, DiLorenzo provided Rappa with a “no-show” job at DiLorenzo’s demolition company so that Rappa could receive paychecks and union health benefits, among other benefits.  Similarly, Tantillo arranged for Gradilone to receive a “no-show” job at a construction company with which Tantillo was associated, which enabled Gradilone to receive paychecks and union health benefits to which he was not entitled.  Tantillo and Johnson also conspired to secure a “no-show” job for Johnson, so that Johnson could similarly receive union health benefits.

Tantillo also embezzled from employee benefit plans by using laborers from a non-union company, Gane Services, Inc., to perform work for union companies operated by Tantillo, and failing to make contributions for such work as required by collective bargaining agreements.

In addition, Tantillo, DiLorenzo and their co-conspirators conspired to rig bids for lucrative demolition contracts in New York City.  Among other things, Tantillo and DiLorenzo coordinated that their companies exchange bidding information to secure a project on Fifth Avenue. 

Additional Charged Schemes

The defendants also perpetrated a series of other crimes throughout the New York and New Jersey areas from 2017 through 2023.  Their pattern of racketeering activity included additional extortions, retaliating against a federal witness, and money laundering, among other crimes, as detailed in court documents.  For example, in September 2023, Lanni and Minsquero coordinated an assault on proprietors of a restaurant in New Jersey, including physically assaulting a woman at knifepoint.  In addition, LaForte, having previously been convicted of a felony, illegally possessed a firearm in or about May 2023. 

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  The defendants variously face maximum sentences between 20 and 180 years’ imprisonment. 

 The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Matthew R. Galeotti, Anna L. Karamigios, and Andrew M. Roddin are in charge of the prosecution, with assistance from Paralegal Specialist Emme Moosher.

The Defendants:

JOSEPH LANNI (also known as “Joe Brooklyn” and “Mommino”)
Age:  52
Staten Island, New York

DIEGO TANTILLO (also known as “Danny” and “Daniel”)
Age:  48
Freehold, New Jersey

ROBERT BROOKE
Age:  55
New York, New York

SALVATORE DILORENZO
Age:  66
Oceanside, New York

ANGELO GRADILONE (also known as “Fifi”)
Age:  57
Staten Island, New York

KYLE JOHNSON (also known as “Twin”)
Age:  46
Bronx, New York

JAMES LAFORTE (also known as “Jimmy”)
Age:  46
New York, New York

VINCENT MINSQUERO (also known as “Vinny Slick”)
Age:  36
Staten Island, New York

VITO RAPPA (also known as “Vi”)
Age:  46
East Brunswick, New Jersey

FRANCESCO VICARI (also known as “Frank” and “Uncle Ciccio”)
Age:  46
Elmont, New York

E.D.N.Y. Docket No. 23-CR-443

This week, Justice Department leaders met with law enforcement and community leaders at a time of increased threats against Jewish, Muslim, and Arab communities across the country. The Department remains vigilant in combating threats against Americans based on their religion, race, color, ethnicity, or national origin.

“In this heightened threat environment, the partnerships between the Department of Justice, state and local law enforcement, and the communities we serve matter more than ever,” said Attorney General Merrick B. Garland. “That is why, this week, the Department held meetings with law enforcement and community leaders to discuss what they are seeing on the ground and how we can best support them. In these conversations, I reiterated that the Justice Department is committed to protecting our communities from hate-fueled violence. The Department will continue bringing together stakeholders to support our shared goal of preventing, disrupting, and prosecuting illegal acts of hate fueled by antisemitism, Islamophobia, or anti-Arab bias.”  

Today, Attorney General Garland, Associate Attorney General Vanita Gupta, FBI Director Christopher Wray, Assistant Attorney General for Civil Rights Kristen Clarke, Acting Community Relations Service Director Justin Lock, and other Department officials met with Jewish community leaders in Washington, D.C. The leaders expressed their concerns about the significant increase in threats against Jewish community members, organizations, and businesses over the past month. Department officials discussed their continued commitment to protecting Jewish communities and highlighted recent examples of prosecutions against individuals for threatening or attempting to harm Jewish people across the country.

Also today, in Brooklyn, New York, Deputy Attorney General Lisa O. Monaco joined U.S. Attorney Breon Peace for the Eastern District of New York for a roundtable discussion with local Jewish leaders. Deputy Attorney General Monaco emphasized that the Justice Department’s top priority is keeping the American people safe, and that the Department will use every available tool to work with partners across the country to combat hate.

These meetings come as there has been a significant increase in the volume and frequency of threats against Jewish, Muslim, and Arab communities across the country. During the meetings, Department leadership stressed that no one in the United States should have to live in fear of violence because of where they or their family comes from or because of how they worship.

On Monday, Attorney General Garland and Associate Attorney General Gupta met with community leaders before the Civil Rights Division’s quarterly interagency meeting hosted by Assistant Attorney General Clarke with leaders representing Muslim, Arab, Sikh, South Asian, and Hindu communities. The meeting was co-hosted by Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office for Civil Rights and Civil Liberties. The Department’s Civil Rights Division first began convening regular meetings with Muslim, Arab, Sikh, South Asian, and Hindu organizations following the Sept. 11, 2001, attacks. The organizations asked the Justice Department and other federal agencies to continue to take actions to protect their communities from unlawful discrimination and violence.

Also on Monday, Attorney General Garland, Deputy Attorney General Monaco, and Associate Attorney General Gupta hosted the Law Enforcement Quarterly Meeting, at which representatives from the Justice Department’s law enforcement and grantmaking components together with their state and local law enforcement partners, discussed the increase in threats against Jewish, Muslim, and Arab communities. Attorney General Garland emphasized to the group that in moments of crisis, strong partnerships and trust between law enforcement and communities are essential and that successfully preventing, disrupting, and prosecuting illegal acts of hate requires close coordination across government and across the country.

The meeting also included discussions regarding violent crime and challenges in recruitment and retention of law enforcement officers. Director Steven M. Dettelbach of the Bureau of Alcohol, Tobacco and Firearms (ATF) discussed the work ATF is doing to combat gun violence, as well as new technologies, such as ghost guns and machine gun conversion devices, that exacerbate the threat posed by illegal firearms. The Department continues to implement strategies to combat violent crime. A cornerstone of this effort is providing state and local partners with resources and support to help keep their communities safe. In light of that goal, the Justice Department announced on Thursday that Department investments in community safety have reached over $5.6 billion.

Earlier this month, Attorney General Garland directed the FBI and all 94 U.S. Attorneys’ Offices across the country to work with local law enforcement and community leaders to protect vulnerable communities in the wake of Hamas’ Oct. 7 terrorist attack in Israel.

Last week, the Department hosted a virtual forum to highlight the successful implementation of the United Against Hate (UAH) initiative in all 94 U.S. Attorneys’ Offices and discuss efforts to combat unlawful acts of hate. In conjunction with the event, the Civil Rights Division released a document highlighting the reach of the UAH program in its first year and examples of its impact in communities across the country. These include enhancing coordination on responding to threats to religious communities and sparking the creation of new initiatives at local colleges and similar institutions.

On Oct. 30, the Department announced that it is awarding over $38 million in grants to support the investigation and prosecution of hate crimes, increase hate crimes reporting, expand victim services, and improve community awareness.

Later Today, Nikolaj Sofinskij will be arraigned before United States Magistrate Judge Ramon E. Reyes, Jr., at a federal courthouse in Brooklyn on an indictment charging him and others with three counts each of conspiracy to commit wire and mail fraud and money laundering conspiracy and one count of aggravated identity theft, in connection with schemes to steal personally identifiable information (PII) on the black market and to buy merchandise in the United States for resale abroad based on the PII.  Sofinskij was extradited to the United States yesterday after being arrested in Romania.  For similar charges, defendants Ruslan Albertovich Nurullin was extradited to the United States from Morocco and arraigned at a federal courthouse in Brooklyn on September 15, and Aleksandr Popan was extradited to the United States from Germany and arraigned at a federal courthouse in Brooklyn on October 16.

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 extraditions and charges.

“The defendants are charged with conspiring to defraud victims out of more than $48 million by stealing sensitive personal information, including social security numbers, and using it to buy and then resell electronics and luxury goods,” stated United States Attorney Peace.  “This case shows that if criminals organize to target U.S. victims in their international crimes, our Office will unite with the international community to catch and bring them to justice.”

Mr. Peace thanked the Department of Justice’s Office of International Affairs, the Computer Crime and Intellectual Property Section, INTERPOL, the United States Marshals Service and the authorities of Morocco, Germany, and Romania for their assistance in securing the arrests and extraditions of Nurullin, Popan, and Sofinskij, respectively.

“Nurullin, Popan and Sofinskij allegedly engaged in multiple reshipping schemes, utilizing online communications to execute their scams, leading to $48 million in losses for their victims.  The announcement today highlights the FBI’s commitment along with our international law enforcement partners to bringing criminals to the United States to be held accountable for their crimes,” stated FBI Assistant Director-in-Charge Smith.

As alleged in the indictment, from approximately 2013 to 2018, individuals located primarily in Russia and countries of the Commonwealth of Independent States (CIS) and Eastern Europe operated reshipping schemes to defraud merchants, banks and individuals in the United States.  Nurullin, Popan and Sofinskij resided in Russia during the schemes, and they were arrested in their respective countries pursuant to INTERPOL Red Notices based on arrest warrants issued from the Eastern District of New York.

Scheme participants communicated online on websites called “Admin Panels.”  Popan set up one of those Admin Panels, called USS-Design.  Participants called “Stuffers” used stolen PII from victims—including their social security numbers and credit and debit card numbers—to buy merchandise such as smartphones, computers, luxury clothing and handbags from online retailers.  These Stuffers deceived the retailers by having them ship merchandise to addresses in the United States, where the items would later be reshipped to Russia and to CIS and Eastern European countries for resale.  Nurullin and Sofinskij served as Stuffers associated with the Admin Panels called Strongbox.cc, Arenaproject.it, and Astra Star Ave.

Participants divided profits frequently through a virtual currency exchange based in Russia, and they reinvested proceeds into the ongoing schemes, including by buying prepaid mailing labels to facilitate shipments to Russia and elsewhere.  The reshipping schemes caused more than $48 million in losses to victims.

The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.  The defendants face a maximum of 20 years’ imprisonment for each of the fraud, fraud conspiracy and money laundering counts.  If convicted of the aggravated identity theft counts, the defendants face a mandatory additional sentence of 2 years’ imprisonment. 

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 and identity theft—such as the crimes that Nurullin, Popan and Sofinskij committed.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Nicholas J. Moscow and Victor Zapana are in charge of the prosecution with assistance from Paralegal Specialist Emme Moosher, along with Trial Attorney Christopher D. Usher of the Department of Justice’s Violent Crime and Racketeering Section.

The Defendants:

RUSLAN ALBERTOVICH NURULLIN (also known as “ray.nolan” and “nolan”)
Age:  32
Morocco

ALEKSANDR POPAN (also known as “exemption,” “popanus,” “Alexander Popan,” “Alexandr Popan” and “Alexander Popandopulo”)
Age:  40
Germany

NIKOLAJ SOFINSKIJ (also known as “pagnini,” “Nikola Sofinskiy” and “Mykola Petrovych Sofinskyi”)
Age:  42
Romania

E.D.N.Y. Docket No. 19-CR-456 (PKC)

A third superseding indictment was unsealed today in federal court in Brooklyn charging Brian Michael Sutton, Brycen Kay Millett, Anthony Santamaria, Joshua Manuel Alegria, Hershel Tsikman and Hafizullah Ebady with conspiracy to commit health care fraud, health care fraud and money laundering conspiracy.  As alleged, the defendants participated in an international scheme to acquire pharmacies across the United States with pre-existing relationships with private health insurance companies. Using those pharmacies, in conjunction with call centers to induce individuals to accept unnecessary medications and a network of recruited physicians, the defendants generated more than $500 million in fraudulent prescriptions purportedly filled by the scheme pharmacies.

Santamaria, Alegria and Tsikman were arrested today in California and will be arraigned this afternoon in federal court in Los Angeles.  Millett and Ebady were previously indicted and arrested on health care fraud charges, and will be arraigned at a later date.  Sutton remains at large and is believed to reside in Moscow.

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, the defendants orchestrated a massive international scheme to defraud American businesses out of hundreds of millions of dollars and attempted to hide behind multiple aliases, shell companies and straw owners,” stated United States Attorney Peace.  “Fraudulent healthcare billing drives up the cost of medical services for all those who need it.   We will continue to aggressively investigate and prosecute those who take advantage of health care plans.”

Mr. Peace thanked the Port Authority of New York and New Jersey, Office of Inspector General, for their invaluable assistance in the investigation.

“The defendants allegedly carried out a complex international health care fraud scheme that led to over half billion dollars in fraudulent prescriptions.  Health care fraud schemes like this affect those directly targeted, but ultimately the general public who face increased medical costs as a result.  The FBI will see to it that anyone attempting to benefit from health care fraud will face punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith. 

As alleged, between 2017 and 2022, Sutton, a U.S. citizen residing in Russia, led his co-defendants in carrying out an international scheme to bill private insurers for hundreds of millions of dollars’ worth of fraudulent prescriptions.  At Sutton’s direction, the conspirators oversaw call centers initially based in Utah, but later operated from Russia and other foreign nations.  Call center employees telephoned beneficiaries enrolled in private insurers’ health care plans and offered prescription medications at little to no cost to the beneficiaries and without any medical exam to determine the medical necessity for those medications.  The defendants also recruited doctors purportedly to review prescriptions by nurse practitioners and physician’s assistants after telemedicine visits.  Contrary to what the recruited doctors were told, in many cases there were no telemedicine visits between the beneficiaries and any medical professionals.  The conspirators generated fraudulent prescriptions under the physicians’ names and National Provider Identifier (NPI) numbers.  Despite the prescriptions, many beneficiaries never received the medications.

To conceal their involvement, the defendants operated under multiple aliases, funneled millions of dollars through pass-through shell companies and straw owners, used end-to-end encrypted communications and moved operations overseas.  Specifically, the defendants purchased and operated dozens of existing brick-and-mortar pharmacies through straw owners including in Brooklyn, Staten Island, Manhattan, Long Island, New Jersey, Pennsylvania, Texas, Michigan and Alabama.  The conspirators also laundered millions of dollars in fraudulent proceeds from overseas through pass-through shell companies that they used to purchase the scheme pharmacies and conceal the defendants’ involvement.

After acquiring the brick-and-mortar pharmacies, the conspirators oversaw the installation of pharmacy management software that allowed for the remote submission of reimbursement requests by the scheme pharmacies to private insurers; they also trained and supervised a team of “billers” that remotely submitted hundreds of thousands of reimbursement requests totaling over $500 million for over 50 pharmacies.  Ultimately, private insurers paid over $280 million as a result of the fraudulent billing.

Co-conspirators Dela Saidazim pleaded guilty in February 2023 and David Gary Bishoff pleaded guilty in March 2023 to health care fraud conspiracy and are awaiting sentencing.

The charges in the superseding indictment are allegations, and the defendants are presumed innocent and 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 John Vagelatos, Jessica Weigel and Jonathan P. Lax are in charge of the prosecution with assistance from Paralegal Specialist William Daniels.  Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The New Defendants:

BRIAN MICHAEL SUTTON (also known as “Mike Summers,” “Mike Miller” and “Ryan White”)
Age:  31
Moscow, Russia

ANTHONY SANTAMARIA (also known as “Big Boy,” “Wade Watts,” “Pablo Rodriguez,” “Ryan Rusty” and “Bruce Peter”)
Age:  31
North Hollywood, California

JOSHUA MANUEL ALEGRIA (also known as “Jboy,” “Jaxon Asher” and “Turk Malloy”)
Age:  32
Woodland Hills, California

HERSHEL TSIKMAN (also known as “Andrew Milner,” “Andrew M.,” “Linus Caldwell,” 
“Adam Schneider,” “Jonathan Martin,” and “H”)
Age:  30
Studio City, California

Previously Charged Defendants:

BRYCEN KAY MILLETT (also known as “Brett Johnson” and “Tommy Wilkinson”)
Age:  33
Saint George, Utah

HAFIZULLAH EBADY (also known as “Hafiz Ebady”)
Age:  45
Parsippany, New Jersey

Co-Conspirators Who Previously Pleaded Guilty:

DAVID GARY BISHOFF (also known as “Bobby Fischer”)
Age:  39
Saint George, Utah

DELA SAIDAZIM (also known as “Delila,” “Gina Payne,” and “Olivia Rothstein”)
Age:  34
Moscow, Russia

E.D.N.Y. Docket No. 21-CR-564 (S-3) (WFK)

A Serbian man has been extradited to the United States, where he faces charges in two separate federal indictments in the Northern District of Texas and Eastern District of New York for his alleged participation in coordinated cryptocurrency and binary options schemes.

On Feb. 3, pursuant to a request for provisional arrest followed by a request for extradition, Georgian authorities arrested Kristijan Krstic, 48, in Batumi, Georgia. The U.S. Marshals Service (USMS) completed the removal of Krstic on Oct. 30 from Georgia to the Northern District of Texas.

Krstic arrived in the Northern District of Texas made his initial appearance today in the U.S. District Court for the Northern District of Texas, where he will first face charges before being transferred to face additional charges in the Eastern District of New York. 

“This extradition is the result of continued coordination between the Justice Department and our Georgian law enforcement partners in the fight against transnational organized crime,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “We are committed to protecting the people of this nation by investigating and prosecuting individuals involved in cryptocurrency fraud.”

Northern District of Texas

In March 2020, a federal grand jury in the Northern District of Texas indicted Krstic for his role in defrauding investors worldwide out of more than $70 million through fraudulent cryptocurrency and binary options investment platforms. Krstic and more than a dozen other alleged fraudsters were also indicted on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in the superseding indictment in July 2020.

“The work on this case exemplifies the whole of the Justice Department to bring cyber-criminals – including those who use cryptocurrency and other purported cyber investment platforms to victimize the citizens of the United States – to justice,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas will work hand-in-hand with our law enforcement partners to ensure that cyber-criminals are held accountable regardless of their location.” 

According to court documents, the defendants allegedly helped create and market more than 20 fraudulent cryptocurrency and binary options investment platforms, including Start Options, Trinity Mining, Hedger Tech, BTC Mining Factory, Bitcoin Trading World, Dragon Mining, BTC Trader Online, Crypto Trading World, Go Solar Mining, BTC Falcon, Perpetual Energy, Perfect-Options, Options Rider, Option Giants, Banking Options, Aeon Options, Bancde Options, Instant Options, Fast Options, and Elite Options.

“The FBI remains committed to pursuing subjects across international boundaries who are increasingly utilizing sophisticated virtual asset schemes to defraud investors,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Victims were told their investment in Start Options and B2G would return significant wealth, but many were defrauded and harmed as a result. The FBI thanks our national and international partners for their efforts throughout the investigation to help bring justice for the victims.”

“This extradition occurred because of international cooperation and the FBI’s persistence to hold this individual accountable for defrauding thousands of innocent victims. Some victims lost their entire savings to this scheme and have not been able to financially recover,” said Special Agent in Charge Chad Yarbrough of the FBI Dallas Field Office. “We would like to thank our international partners for assisting us with the arrest and extradition of Mr. Krstic. He will now finally face charges for his actions in the United States.”

Krstic is charged in the Northern District of Texas with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering in an alleged scheme to create, promote, market, and organize fraudulent online investment platforms. If convicted, he faces a maximum penalty of 20 years in prison for each count.

The FBI Dallas Field Office is investigating the case.

Assistant U.S. Attorneys Michelle Winters and Nicole Dana for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Dimitri Rocha and John de la Garza for the Northern District of Texas assisted with forfeiture matters.

Eastern District of New York

In February 2021, a federal grand jury in the Eastern District of New York also indicted Krstic for his role in a cryptocurrency scheme in which he solicited U.S. investors using two fraudulent online investment platforms. According to court documents, Krstic was the founder of two digital-asset investment platforms, Start Options and B2G, and also served as the chief financial officer of Start Options. As alleged, between approximately 2017 and 2018, Krstic and others fraudulently induced U.S.-based investors to purchase securities in the form of investment contracts in Start Options and B2G. To perpetuate the fraud, Krstic allegedly used the alias “Felix Logan” and created the Twitter handle “@felixlogan_cfo” to communicate with investors in Start Options and B2G.

The indictment alleges that Start Options purported to be an online investment platform that provided cryptocurrency mining and digital-asset trading services, including trading in cryptocurrencies, commodities, stocks, and indices. Start Options also allegedly claimed that it was “the largest Bitcoin exchange in euro volume and liquidity” and that it was “consistently rated the best and most secure Bitcoin exchange by independent news media.” The indictment further alleges that B2G purported to be an “ecosystem” that would allow users to trade B2G tokens, as well as digital and fiat currencies, “on a secure, comprehensive platform.” Krstic and others allegedly represented that once investors opened a B2G account, a deposit of B2G “open[ed] a door to all the curtains inside Aladdin’s cave. Dollars buy B2G; B2G tokens can be exchanged back into dollars, or for Euros, or for other national fiat currencies.  B2G holdings can be traded for original bitcoin or other altcoins.”

“Kristijan Krstic used the hype and mystery of cryptocurrency to separate unwitting investors from their money,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “Krstic founded two online investment platforms which allowed him to steal $7 million in investor funds before closing up shop. Fleeing the country did not stop IRS-CI and our law enforcement partners from continuing our pursuit of justice, and today’s extraction demonstrates that no criminal is out of our reach.”

According to the indictment, however, the money that investors in Start Options and B2G sent was never invested and instead, was laundered internationally to a Philippines-based financial account and digital-currency wallet and diverted to John DeMarr, a U.S.-based promoter of the fraud. Subsequently, DeMarr allegedly transferred to Krstic approximately $7 million in investor funds from B2G and Start Options, and then Krstic stopped responding to all communications and absconded with those investors’ funds. A press release issued by Start Options claimed that the company had been sold to Russian venture capitalists.

Krstic is charged in the Eastern District of New York with one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison.

On Jan. 31, DeMarr, 55, of Santa Ana, California, the former Director of North American Operations for Start Options and B2G, was sentenced to five years in prison for his role in the scheme.

U.S. Attorney Breon Peace for the Eastern District of New York joined in the announcement.

IRS-CI and the FBI Los Angeles Field Office are investigating the case.  

The government of Georgia, including the Prosecution Service of Georgia, Ministry of Justice of Georgia, and the Ministry of Interior of Georgia, provided significant assistance in the extradition of Krstic to the United States. Republika Srpska Police (RS-MUP) assisted as well. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Krstic. USMS transported Krstic from Georgia to the United States.

Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kaitlin Farrell, Hiral Mehta, and David Pitluck for Eastern District of New York are prosecuting the case, with assistance on forfeiture matters from Assistant U.S. Attorney Laura Mantell for the Eastern District of New York. 

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

Earlier today, at the federal courthouse in Brooklyn, Larby Amirouche was sentenced by United States District Judge Kiyo A. Matsumoto to 20 months in prison for his role in fraudulent internet marketing schemes utilizing e-commerce websites that purported to sell various dietary supplements, hair care products, skin care products, testosterone, and web-based business tutorials.  As part of the sentence, the Court also ordered the defendant to pay $1.8 million in forfeiture and over $110,000 in criminal restitution.  Amirouche pleaded guilty in May 2022 to conspiracy to commit bank fraud. 

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

“The prison term handed down today is appropriate and necessary for Amirouche who orchestrated internet marketing schemes that charged consumer credit cards for products that were ordered but never delivered or never ordered at all, and overbilled other consumers for products they had ordered from the defendant’s websites,” stated United States Attorney Peace.  “This Office will not hesitate to enforce the law to protect consumers and financial institutions from fraudsters, and ensure integrity in the e-commerce marketplace.”

“Amirouche victimized unsuspecting consumers by creating a literal world wide web of lies, building an online platform to defraud his victims for his own personal gain. With this sentencing, he now is facing the full consequences of his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso. 

Amirouche was the managing member of Angry Elephant Marketing LLC and Purple Whale Management LLC.  Between January 2012 and April 2016, Amirouche and his co-conspirators earned illegal profits by (1) charging consumer credit cards for products that were ordered but never delivered to the consumer; (2) charging consumer credit cards for products that were not purchased by the consumers and (3) repeatedly charging consumers for products that they had ordered from Amirouche’s websites.

Amirouche and his co-conspirators set up dozens of shell companies fronted by nominees they recruited to distance themselves from the fraudulent schemes and maximize the ill-gotten profits.  Nominees were utilized in part because Amirouche and the corporate entities he controlled had been barred from opening new merchant accounts due to previous fraudulent activity. The profits were funneled to a bank account that was in the name of a nominee, but was actually controlled by Amirouche.  From that account, Amirouche sent over $1.3 million to bank accounts in the names of other companies he controlled.

Amirouche and his co-conspirators also fraudulently established bank and merchant accounts for the shell companies so they could process credit card transactions and collect and transfer the proceeds of their crimes.  The bank and merchant account applications the defendant submitted contained material falsehoods, including that the defendant was controlling the company, the nature of the business and forged signatures of the applicants.

In addition, Amirouche and his co-conspirators concealed material information from the financial institutions that supported the merchant card accounts.  The misrepresentations were designed to prevent the financial institutions from discovering the frauds, which would have led to the financial institutions shutting off the accounts for the websites and stopping payment of funds to Amirouche.

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 will play 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 Business and Securities Fraud Section.  Assistant United States Attorney David C. Pitluck is in charge of the prosecution with the assistance of Paralegal Specialist Jake Menz.

The Defendant:

LARBY AMIROUCHE (also known as “Luke Williams”)
Age:  33
Highland Park, Illinois

E.D.N.Y. Docket No. 21-CR-64 (KAM)

Earlier today, in federal court in Central Islip, Marquis Douglas, a narcotics trafficker who operated a drug business that was responsible for the distribution of large quantities of cocaine and fentanyl, along with other illicit substances throughout the North Fork of Long Island, pleaded guilty before United States District Judge Joanna Seybert to conspiring to distribute controlled substances and the distribution of controlled substances resulting in death.  Douglas was charged in June 2022.

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

“Today, Douglas has admitted his role in a large scale narcotics distribution operation as well as his role in the distribution of fentanyl laced cocaine that led to the deaths of four men in a single day,” stated United States Attorney Peace.  “We hope today’s guilty plea begins to bring a measure of solace to the victims’ families.”

Mr. Peace also extended his thanks to the Federal Bureau of Investigation, New York Field Office, the Suffolk County District Attorney’s Office, the Riverhead Police Department, the Southold Police Department, the Shelter Island Police Department, and the New York State Police for their assistance in the investigation.

According to court filings and statements made during today’s proceeding, Douglas orchestrated a years’ long conspiracy to distribute over five kilograms of cocaine, one kilogram of heroin, 280 grams of crack cocaine, 40 grams of fentanyl and a quantity of fentanyl analogues.  In August of 2021, Douglas’ operation distributed a quantity of cocaine laced with a fentanyl analogue in Greenport, New York.  When this cocaine was re-distributed at the street level, it ultimately led to four fatal overdoses on a single day across Greenport and Shelter Island.  When apprehended in Suffolk County on May 5, 2022, Douglas was found in possession of large, sellable quantities of cocaine and fentanyl. When sentenced, Douglas faces up to life in prison.  

The government’s case is being prosecuted by Assistant United States Attorneys Michael R. Maffei, Andrew P. Wenzel, and Special Assistant United States Attorney Dana Gremaux. 

The Defendants:

MARQUIS DOUGLAS
Age: 38
Riverhead, New York

E.D.N.Y. Docket No. 22-CR-246 (JS)

Four individuals were arrested, and an indictment and criminal complaint were unsealed this week in the Eastern District of New York regarding two separate conspiracies to unlawfully export controlled, dual-use technologies to Russia following Russia’s full-scale invasion of Ukraine.

Yesterday, a criminal complaint was unsealed, and a Brooklyn, New York, resident and two Canadian nationals were arrested in connection with a sophisticated global procurement scheme in which the defendants used two corporate entities registered in Brooklyn to unlawfully source and purchase millions of dollars’ worth of dual-use electronics on behalf of end-users in Russia, including companies affiliated with the Russian military. Some of the electronic components and integrated circuits shipped by the defendants are the same make, model, and part number that have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.

Separately, earlier today, a Brooklyn resident was arrested, and a four-count indictment was unsealed alleging an illegal exports scheme to procure dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.

“Russia relies on critical technologies to wage its unlawful war in Ukraine, and the Justice Department will use all of our legal tools and authorities to deny them those technologies,” said Deputy Attorney General Lisa O. Monaco. “Today’s actions underscore the Department’s determination to hold accountable those who flout our laws by trying to evade sanctions and export controls to aid the Russian war machine. The defendants arrested over the last two days will now face justice for allegedly using false names and front companies to funnel sensitive electronics to Russia.”

“Protecting American technologies and securing innovation from foreign adversaries is of the utmost importance to U.S. national security,” said FBI Deputy Director Paul Abbate. “The conduct alleged in the charging documents represent a complete disregard for our nation’s security and our laws. The FBI and our partners remain committed to protecting American-made military and dual-use technologies by using every tool at our disposal. These law enforcement actions send a strong message that the FBI will never rest in our pursuit of those who intend to harm the United States and our allies.”

“In the past two days alone, the Justice Department and its law enforcement partners have arrested and charged multiple individuals accused of perpetrating sophisticated schemes to unlawfully acquire, conceal, and ship U.S. electronic components on behalf of the Russian defense industry,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division is committed to holding accountable individuals who would defy U.S. law in support of Russian aggression in Ukraine.”

“We will continue to do everything in our power to take down Russian military procurement schemes like those alleged in these cases,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “When we identify U.S. components inside the types of Russian weapons being used to wreak destruction and death in Ukraine, we take action.” 

“As both of these important cases demonstrate, in Brooklyn and around the world, the U.S. Attorney’s Office for the Eastern District of New York will not rest in making sure that military technologies do not fall into the wrong hands,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, we have now stopped these six defendants from conducting sophisticated schemes to evade American sanctions and ship dual use electronics to fuel Russia’s war effort on the battlefield against Ukraine.”

United States v. Goltsev et al.

According to court documents, Nikolay Goltsev, 37, of Montreal, Canada; Salimdzhon Nasriddinov, 52, of Brooklyn; and Kristina Puzyreva, 32, of Montreal, Canada are charged in a sanctions evasion and export control scheme, in which millions of dollars’ worth of semiconductors, integrated circuits and other dual-use electronic components were unlawfully exported to Russia through two Brooklyn front companies.

Nasriddinov, a Brooklyn resident and dual citizen of Russia and Tajikistan, was arrested on Oct. 31 in Brooklyn. Goltsev and Puzyreva were arrested at a hotel in Manhattan on Oct. 31 during a trip to New York to visit Nasriddinov.

As alleged, the defendants used two corporate entities registered in Brooklyn – SH Brothers Inc. and SN Electronics Inc. – to facilitate the scheme and unlawfully source, purchase, and ship millions of dollars’ worth of dual-use electronics from U.S. manufacturers to sanctioned end-users in Russia. Many of the electronic components and integrated circuits shipped by the defendants through SH Brothers were, according to the Department of Commerce “of the highest concern due to their critical role in the production of advanced Russian precision-guided weapons systems, Russia’s lack of domestic production, and limited global manufacturers.” 

According to the complaint, some of the electronic components and integrated circuits shipped by the defendants through SH Brothers are the same make, model, and part number that have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs), and T-72B3 battle tanks.

During the period charged in the complaint, SH Brothers made hundreds of shipments valued at over $7 million to Russia.

As alleged, Goltsev received orders from Russian end-users in the defense and technology sectors who sought to acquire a particular item or part from the United States. Goltsev then communicated directly with U.S. manufacturers and distributors, typically using aliases such as “Nick Stevens” or “Gio Ross.” Nasriddinov and Goltsev purchased electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be sent to various locations in Brooklyn. Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary corporations located in other countries, including Turkey, Hong Kong, India, China, and the United Arab Emirates, where they were rerouted to Russia. Puzyreva operated numerous bank accounts and conducted financial transactions in furtherance of the scheme.

As described in the complaint, the defendants were aware that the electronics being exported had potential military applications. For example, in a November 2022 message exchange between Nasriddinov and Goltsev, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport. Nassridinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?” Goltsev responded that, “we need to figure out why they keep holding the package ... I don’t really understand how they figured [it] out.” In a subsequent message, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention ... for now large packages will be dangerous until we understand what they figured out ... we will need to think of diversifying the load ... so that not everything is not moving from the same deck.” Additionally, in a February 2023 message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces. Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].” 

The FBI, Department of Commerce’s Bureau of Industry and Security, and Department of Homeland Security Homeland Security Investigations are investigating the case.

Assistant U.S. Attorneys Artie McConnell and Ellen H. Sise for the Eastern District of New York and Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analyst Mary Clare McMahon. Assistant U.S. Attorney Laura Mantell for the Eastern District of New York is handling forfeiture matters.

United States v. Grigorev et al.

In a four-count indictment unsealed today in the Eastern District of New York, Nikita Arkhipov, 39, and Artem Oloviannikov, 37, both of St. Petersburg, Russia; and Nikolay Grigorev, 36, of Brooklyn; are charged with conspiracy and other offenses related to an export control scheme to benefit companies affiliated with the Russian military, including SMT-iLogic, a sanctioned Russian entity that has been identified as part of the supply chain for producing Russian military drones used in Russia’s war against Ukraine.

Grigorev was arrested today. Arkhipov and Oloviannikov remain at large.

As alleged in the indictment and other court filings, the defendants used a corporate entity, Quality Life Cue LLC (QLC), to facilitate their illegal export control scheme. QLC was registered in Brooklyn and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia. Through QLC, the defendants procured dual-use electronic components, including semiconductors, for entities in Russia involved in the Russian war effort in Ukraine.

According to court documents, between Oct. 22, 2021, and Feb. 22, 2022, QLC accounts controlled by Grigorev received wire transactions from iLogic totaling approximately $273,000. These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor or to pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn-based company. Email and chat communications amongst the defendants explicitly reference efforts to circumvent U.S. sanctions; use “test” or “fictitious” orders to test new supply lines to Russia; and to discuss front companies in third countries, including Kazakhstan. In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn successfully interdicted over 11,500 electronic components purchased from the Brooklyn-based company that were awaiting unlawful export to Russia.

The FBI and Department of Commerce’s Bureau of Industry and Security are investigating the case.

Assistant U.S. Attorneys Artie McConnell, Rebecca Schuman, and Kate Mathews for the Eastern District of New York and Trial Attorney Natalya Savransky of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analyst Mary Clare McMahon.

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.

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

An indictment was unsealed today in federal court in Brooklyn charging Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in defrauding investors in a decentralized finance digital asset called “SafeMoon” (SFM) that was issued by their company SafeMoon LLC.  As alleged, the defendants lied to SFM investors concerning whether SFM’s use of ‘locked’ liquidity was inaccessible to the defendants, as well as their personal holding and trading of SFM.  As SFM’s market capitalization grew to more than $8 billion, the defendants fraudulently diverted and misappropriated millions of dollars’ worth of purportedly “locked” SFM liquidity for their personal benefit. Earlier today, Karony was arrested in Provo, Utah, and Smith was arrested in Bethlehem, New Hampshire.  Nagy remains at large.

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); Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the arrests and charges. 

“As alleged, the defendants deliberately misled investors and diverted millions of dollars to fuel their greedy scheme and enrich themselves by purchasing a custom Porsche sports car, other luxury vehicles and real estate,” stated United States Attorney Peace.  “As fraudsters increasingly use digital assets to mislead investors and misappropriate funds, our Office will be at the forefront of pursuing them and their ill-gotten gains.  We will continue our focus in the digital asset space and bring those who defraud investors in this area to justice.” 

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

“As alleged, SafeMoon’s executives grew their company value to over $8 billion, but instead of rewarding their clients as promised, their insatiable greed led them to spend millions of dollars on their own lavish desires. Today, no luxury vehicles or sprawling real estate can protect them from the consequences of such crimes,” said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations, New York. “HSI New York will relentlessly pursue individuals who seek to exploit investors and the American financial system for their own gain.”

“Although this fraud scheme may be complex, the end result is simple—theft. Investors were assured their money would be safe while the defendants allegedly misled investors and diverted millions of dollars to line their pockets and their driveways.  Through cryptocurrency tracing and good old-fashioned police work, IRS-CI New York’s Cyber and J5 groups worked with our investigative partners to track the millions in diverted funds and arrest the perpetrators of this con,” stated IRS-CI Special Agent-in-Charge Fattorusso.

Background on SFM

As alleged, SFM tokens were digital assets first issued in March 2021 by SafeMoon LLC on a public blockchain.  Through the operation of SFM’s smart contracts, every transaction in SFM was automatically subject to a 10% tax, meaning, for example, that if a holder of SFM transferred 10 SFM to another user, 1 SFM would automatically be retained from the transfer as a tax, and the remaining 9 SFM would be received by the other party.  As marketed to SFM investors, the proceeds of SFM’s 10% tax were split into two 5% tranches, the proceeds of which were supposed to benefit holders of SFM in specific ways.  The first 5% tranche of the tax proceeds would be “reflected” back to, and distributed among, all SFM holders, in proportion to their current SFM holdings and thereby increase the total quantity of SFM held by every SFM investor automatically.  The remaining 5% tranche of SFM tax proceeds would be deposited into designated SFM liquidity pools.  The larger the SFM liquidity pool, the greater the liquidity in the market for SFM.  In the months after its launch in March 2021, SFM grew to have more than one million holders and a market capitalization of more than $8 billion.

The Defendants’ Fraudulent Scheme

As alleged, the defendants misrepresented to investors various material aspects of the SFM offering, including that SFM relied on “locked” liquidity pools that would automatically increase in size due to a 10% tax imposed on every SFM transaction; that the “locked” SFM liquidity pool prevented the defendants and other insiders at SafeMoon from being able to “rug pull”—a type of crypto fraud—SFM investors by removing liquidity from the SFM liquidity pool; that tokens in the liquidity pool would not be used to enrich the SafeMoon developers, including the defendants; that the defendants would manually add token pairs to the SFM liquidity pool when transactions of SFM occurred on specific centralized exchanges; and that the developers were not holding and trading SFM for their benefit.

In reality, the defendants allegedly retained access to the SFM liquidity pools and they used that access to intentionally divert and misappropriate millions of dollars’ worth of tokens from the SFM liquidity pools for their personal benefit.  In addition, although they publicly denied that they personally held or traded SFM, the defendants repeatedly bought and sold SFM for their personal benefit, including at the height of SFM’s market price, which generated millions of dollars in profits.  The defendants masked their movement of the fraudulent proceeds via numerous private un-hosted crypto wallet addresses, complex transaction routing, and pseudonymous centralized exchange accounts.  The defendants used some of these proceeds to purchase luxury vehicles and real estate in New Hampshire, Utah, and Florida.  Smith, for example, using cryptocurrency addresses he controlled, sent 2,900 Binance Coin (BNB) worth more than approximately $860,000 and traceable to the SFM liquidity pool to a third party’s cryptocurrency address in order to purchase a custom Porsche 911 sportscar and non-fungible token.

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 Business and Securities Fraud Section.  Assistant United States Attorneys Drew G. Rolle, Matthew R. Galeotti and John O. Enright are in charge of the prosecution with assistance from Paralegal Specialist Jacob Menz. 

The Defendants:

BRADEN JOHN KARONY (also known as “John Karony” and “CPT HODL T MUN”)
Age:  27
Provo, Utah

KYLE NAGY (also known as “Safemoon Dev”)
Age:  35
Vero Beach, Florida

THOMAS SMITH (also known as “papa”)
Age:  35
Bethlehem, New Hampshire

E.D.N.Y. Docket No. 23-CR-433

Earlier today, at the federal courthouse in Central Islip, United States District Judge Joan M. Azrack sentenced Dennis Wolfolk of Marietta, Georgia, to 57 months in prison for possessing firearms in relation to a larger scheme to purchase and illegally transport into New York more than two dozen handguns.  Wolfolk pleaded guilty in May 2023 to being a felon in possession of a firearm.  Co-defendant Patrick Polidore pleaded guilty in September 2023 to making false statements to acquire firearms and is awaiting sentencing.

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

“The so-called gun trafficking “Iron Pipeline” from Georgia to Long Island took a detour to a federal courtroom for Wolfolk, a convicted felon, who was punished today for his continuing disregard of the law and serious criminal conduct that resulted in guns being found in the hands of juveniles, a parolee, criminals and at the scene of a murder,” stated United States Attorney Peace.  “This Office and our law enforcement partners are working tirelessly to investigate and prosecute those like the defendant who attempt to circumvent state and federal gun laws and contribute to the presence of deadly guns in our community.”

Mr. Peace thanked the United States Attorney’s Office for the Northern District of Georgia, the ATF’s Atlanta Field Division, the Nassau County District Attorney’s Office, the Nassau County Police Department, and the Hempstead Police Department for their assistance in the investigation.

“The interstate flow of illegal guns is a grave threat to public safety,” stated ATF Assistant Special Agent-in-Charge Kalogiros.  “This sentencing sends a clear message to those who think they can traffic firearms into NY without consequence. ATF NY will continue to share Crime Gun Intelligence with law enforcement partners across all boundaries to identify, disrupt and dismantle firearms trafficking schemes. Each illegal firearm recovered is a potential life saved. I commend the work of ATF NY’s Long Island Field Office, Nassau County PD, Hempstead PD and EDNY for their diligent efforts and collaboration through this investigation.”

Between October and December 2020, Polidore visited numerous federally licensed retailers in the Atlanta metropolitan area and acted as the straw purchaser for approximately 27 handguns, many of which were purchased in rapid succession on a handful of common dates.  For example, on October 29, 2020, Polidore purchased two handguns from two different retailers; six days later, on November 4, 2020, he purchased six more handguns from four different retailers; on November 18, 2020, he purchased five firearms from four different retailers; between November 20, 2020 and November 23, 2020, he purchased 10 handguns from at least four different retailers; on November 30, 2020, he purchased two handguns from two different retailers; and two days later, on December 2, 2020, he purchased three more handguns from two different retailers.  On ATF Forms 4473—federal records that document firearms transactions—Polidore falsely affirmed that he was the intended recipient of the weapons when, in actuality, he had conspired with Wolfolk, who, as a convicted felon, was legally prohibited from possessing a firearm, to traffic the handguns to New York, where he distributed them to street-level buyers, many of whom were themselves prohibited from having a gun. 

At least 12 of the handguns Wolfolk transported to New York have been recovered by law enforcement at crime scenes in and around Long Island.  On November 4, 2020, for example, Polidore purchased six firearms from four different retail locations in Georgia, which Wolfolk trafficked to New York.  Shortly after, those firearms began emerging on Long Island.  On December 22, 2020, a serialized gun box matching a .40-caliber Glock model 27 handgun purchased by Polidore was recovered from the scene of a murder in Hempstead.  On January 13, 2021, during a traffic stop in Hempstead, three juveniles were found in possession of a 9mm Ruger model Security-9 handgun purchased by Polidore.  on May 28, 2021, during a traffic stop in Patchogue, police arrested an individual in possession of a .22-caliber Walther model P22 handgun purchased by Polidore.  And on October 3, 2021, a .40-caliber Smith & Wesson handgun purchased by Polidore was recovered from a robbery suspect in Bethpage. 

Other firearms involved in the scheme were similarly recovered in the hands of criminals.  On January 12, 2021, for example, a Taurus 9mm model G3C handgun purchased by Polidore on November 23, 2020, was recovered from a parolee in Lynbrook. 

Wolfolk has a previous felony conviction for attempted second-degree criminal possession of a firearm.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Anthony Bagnuola and Mark E. Misorek are in charge of the prosecution, with assistance from Special Agent Michael Cassidy.

The Defendants:

DENNIS WOLFOLK
Age:    30
Marietta, Georgia

PATRICK POLIDORE
Age:   33
Powder Springs, Georgia

E.D.N.Y. Docket No. 22-CR-347 (JMA)

A four-count indictment was unsealed yesterday in Brooklyn charging Nikita Arkhipov, Nikolay Grigorev and Artem Oloviannikov with conspiracy and other charges related to an export control scheme to benefit companies affiliated with the Russian military.  Grigorev, a Brooklyn resident, was arrested on November 1, 2023.  Arkhipov and Oloviannikov remain at large.

As alleged in the indictment and other court filings, the defendants utilized a Brooklyn-based corporate entity, Quality Life Cue LLC (QLC), to facilitate the export control 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. 

Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General, National Security Division, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Carson, Special Agent in Charge, Office of Export Enforcement, New York Field Office, Bureau of Industry and Security, US Department of Commerce announced the charges.

“As alleged, these defendants conducted a sophisticated scheme, violating American sanctions in order to fuel Russia’s war effort,” stated United States Attorney Peace.  “In Brooklyn and around the world, our Office will not rest in making sure that military technologies do not fall into the wrong hands.” 

“In the past two days alone, the Justice Department and its law enforcement partners have arrested and charged multiple individuals accused of perpetrating sophisticated schemes to unlawfully acquire, conceal, and ship U.S. electronic components on behalf of the Russian defense industry,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division is committed to holding accountable individuals who would defy U.S. law in support of Russian aggression in Ukraine.”

“Sanctioned dual-use electronic components intended for the Russian military were allegedly obtained and exported by the defendants.  Export control laws are put in place to defend our national security and any violation of these laws is extremely serious.  FBI New York will ensure that anyone responsible for evading these laws is punished in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.

“The Office of Export Enforcement is focused on rooting out the illicit procurement networks that supply Russia’s ongoing war in Ukraine.  We will continue to collaborate with our law enforcement partners and leverage our unique authorities to prosecute these violators responsible, as alleged in the indictment, for undermining the extensive sanctions put in place to stem the flow of war materials to Russia’s military,” stated Jonathan Carson, Special Agent in Charge, Office of Export Enforcement, New York Field Office, Bureau of Industry and Security, US Department of Commerce.

SMT-iLogic

The most notable of these entities is SMT-iLogic, a Russia-based technology company.  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 Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Person List (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. 

According to public reporting, SMT-iLogic shares an address with STC in St. Petersburg, Russia, was founded by a top Russian scientist and major shareholder of STC, and has imported millions of dollars’ worth of electronics into Russia.  On or about May 19, 2023, SMT-iLogic was also added to the SDN List.  Per OFAC, SMT-iLogic “is known to be involved in the supply chain for producing Russian military UAVs used in Russia’s war against Ukraine.”

On or about January 4, 2017, STC was added by the U.S. Department of Commerce, Bureau of Industry and Security (BIS) to the Entity List for supporting the GRU.  STC was involved in the production of the “Sea Eagle Orlan 10 UAV,” a drone vehicle that has been involved in Russian military operations in Ukraine.  STC’s biggest customer, according to the same reporting, is Russia’s Ministry of Defense, which paid STC the equivalent of nearly $99 million between February and August of 2022.           

Export Control Scheme

As alleged in the indictment and other court filings, between October 22, 2021 and February 22, 2022, QLC accounts controlled by Grigorev received wire transactions from iLogic totaling approximately $272,830.40.  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.  Email and chat communications among the defendants explicitly reference efforts to circumvent U.S. sanctions, use “test” or “fictitious” orders to test new supply lines to Russia, and discuss front companies in third countries.  In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn successfully interdicted over 11,500 electronic components purchased from the Brooklyn Company that were awaiting unlawful export to Russia.

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

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

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 Defendants:

NIKITA ARKHIPOV
AGE: 39
SAINT PETERSBURG, RUSSIA

NIKOLAY GRIGOREV
AGE: 36
BROOKLYN, NY

ARTEM OLOVIANNIKOV
AGE: 37
SAINT PETERSBURG, RUSSIA

E.D.N.Y. Docket No. 23-M-429

A two-count indictment was unsealed today in federal court in Central Islip charging four men with conspiracy to commit securities fraud and money laundering conspiracy in connection with a scheme to steal millions of dollars from a global financial services company based in Menlo Park, California.   The charges arise from a wide-ranging scheme by the defendants to create hundreds of sham brokerage accounts in order to access short-term cash advances which the defendants then stole through a complex options trading scheme.  In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million.

Eduardo Hernandez was arrested today in Atlantic City, New Jersey and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Lois Bloom.  Christopher Flagg and Daquan Lloyd were arrested earlier today on Long Island and will be arraigned this afternoon in federal court in Central Islip before United States District Judge Gary R. Brown.  The fourth defendant, Corey Ortiz, remains 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 arrests and charges.

“The defendants are charged with stealing millions of dollars by creating fraudulent brokerage accounts and engaging in sham trading,” stated United States Attorney Peace.  “For years, the defendants deceived others to line their own pockets.  Today’s indictment shows that this Office will hold accountable anyone who tries to manipulate the financial system.”

U.S. Attorney Peace thanked the Securities and Exchange Commission for their assistance with the case.

“The defendants allegedly engaged in a sprawling multiyear complex financial fraud scheme, which saw more than 2 million dollars stolen.  This type of scam is not only illegal, but weakens the public’s faith in our financial marketplace.  The FBI will continue to ensure that anyone attempting to benefit from this type of fraud is punished in the criminal justice system,” said FBI Assistant Director-in-Charge Smith.

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

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

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

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

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face up to 25 years in prison.

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 will play 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 Business and Securities Fraud Section.  Assistant United States Attorneys Jonathan P. Lax and Sara K. Winik are in charge of the prosecution with the assistance of Paralegal Specialist Jake Menz.

The Defendants:

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

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

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

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

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

A criminal complaint was unsealed yesterday in Brooklyn charging Nikolay Goltsev, Salimdzhon Nasriddinov and Kristina Puzyreva, with conspiracy and other charges related to a global procurement scheme on behalf of sanctioned Russian entities, including companies affiliated with the Russian military. Some of the electronic components and integrated circuits shipped by the defendants have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. Nasriddinov, a Brooklyn resident and dual citizen of Russia and Tajikistan, was arrested this morning in Brooklyn.  Goltsev and Puzyreva were arrested at a hotel in Manhattan this morning during a trip to New York to visit Nasriddinov.

Breon Peace, United States Attorney for the Eastern District of New York, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, 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), Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS) announced the charges.

“As alleged, the defendants evaded sanctions, shipping equipment to Russia vital for their precision-guided weapons systems, some of which has been used on the battlefield in Ukraine,” stated U.S. Attorney Peace.  “Individuals and companies in the Eastern District should know that our Office will use all tools available to prosecute those who evade sanctions to aid hostile nation states.”

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

“With these defendants in U.S. custody, we have disrupted a sophisticated procurement network allegedly used to procure critical technologies for the Russian military’s advanced weapons systems,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division.  “The Justice Department is committed to imposing accountability and exposing tactics used by hostile nation-states to illicitly acquire items they need to perpetuate their brutal campaigns.”

“These defendants are alleged to have illegally exported millions of dollars in electronics to support the Kremlin in its ongoing attacks of Ukraine. Over the course of a year, this criminal organization evaded U.S. sanctions and laws, managing to dispatch over 300 shipments of restricted items, valued at approximately $7 million USD, to the Russian battlefield. This unlawful activity would have persisted if not for the law enforcement collaborative efforts that led to today's charges," said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations, New York. "HSI New York remains committed to utilizing its unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws for financial gain.”

“The arrests announced today demonstrate our sustained focus on targeting illicit Russian procurement networks, especially those attempting to acquire sensitive U.S. technologies that BIS has identified as critical high priority items for Russia’s military,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.  “To be clear: it doesn’t matter if those networks use a front  company or transship these items using intermediaries in places like Turkey, Hong Kong, India, China and the United Arab Emirates, with final destination in Russia.  We will use all of our tools to hold such actors to account.” 

"The defendants allegedly were part of a global procurement scheme designed to evade United States’ sanctions and export controls.   This case, once again, shows the willingness of Russia to ignore the laws of the United States, using illegal procurement networks to provide for their military.  FBI New York and our partners will hold anyone attempting to procure sanctioned equipment accountable in the criminal justice system in order to protect our national security,” said James Smith, Assistant Director-in-Charge, FBI.

As alleged, the defendants used two corporate entities registered in Brooklyn, SH Brothers Inc. and SN Electronics Inc., to facilitate the scheme. These entities unlawfully sourced, purchased and shipped millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia.  Many of the electronic components and integrated circuits shipped by the defendants through SH Brothers were, according to the Department of Commerce, “of the highest concern due to their critical role in the production of advanced Russian precision-guided weapons systems, Russia’s lack of domestic production, and limited global manufacturers.”  As described in the complaint and other court filings, some of the electronic components and integrated circuits with the same make, model and part number shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs) and T-72B3 battle tanks.  During the period charged in the complaint, SH Brothers made hundreds of shipments valued at over $7 million to Russia.   

Goltsev received orders from Russian end users in the defense and technology sectors who sought to acquire a particular item or part from the United States.  Goltsev then communicated directly with U.S. manufacturers and distributors, typically using aliases such as “Nick Stevens” or “Gio Ross.”  Nasriddinov and Goltsev purchased electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics, and arranged for the items to be sent to various locations in Brooklyn.  Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary corporations located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia.  Puzyreva operated numerous bank accounts and conducted financial transactions in furtherance of the scheme.

As described in the complaint, the defendants were aware that the electronics being exported had potential military applications.  For example, in a message exchange on or about and between November 8, 2022 and November 15, 2022 between Nasriddinov and Goltsev, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport in Queens, New York.  Nassridinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?”  Goltsev responded that, “we need to figure out why they keep holding the package ... I don’t really understand how they figured [it] out.”  In a subsequent message, on or about November 9, 2022, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention ... for now large packages will be dangerous until we understand what they figured out ... we will need to think of diversifying the load ... so that not everything is not moving from the same deck.”  In a February 23, 2023 message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring to the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces.  Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].” 

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

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

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 Defendants:

NIKOLAY GOLTSEV
AGE: 37
MONTREAL, CANADA

SALIMDZHON NASRIDDINOV
AGE: 52
BROOKLYN, NY

KRISTINA PUZYREVA
AGE: 32
MONTREAL, CANADA

E.D.N.Y. Docket No. 23-M-956

Tito Aldemar Ruano Yandun, also known as “Don T,” “Don Ti,” “Don Tito,” “Pedro Linares,” “Pedro AK2,” “Santos,” “Don Tuma,” “Viejo” and “Viejo Loco,” will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn on an indictment charging him with leading an international cocaine distribution conspiracy.  The defendant, a Colombian citizen, was arrested in Colombia pursuant to a U.S. provisional arrest request and was extradited to the United States on October 25, 2023. 

Breon Peace, United States Attorney for the Eastern District of New York; Deanne Reuter, Special Agent-in-Charge, Drug Enforcement Administration, Miami Division (DEA); Edward A. Caban, Commissioner, New York City Police Department (NYPD); and Dominick L. Chiumento, Acting Superintendent, New York State Police (NYSP), announced the extradition and arraignment.

“As alleged, the defendant is a drug kingpin who led an international trafficking organization that produced and exported thousands of kilograms of cocaine from Colombia and Ecuador to the United States,” stated United States Attorney Peace.  “This Office will continue to pursue and bring to justice the leaders of transnational criminal organizations, wherever they are in the world.” 

Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Colombian National Police, and the Government of Colombia. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attaché Office in Bogotá, Colombia provided valuable assistance with securing the arrest and extradition of Ruano Yandun.

“This indictment is a testament to the incredible hard work and resiliency of our investigators and speaks to the strength of our partnerships with our local, state, and federal law enforcement partners, as well as our international counterparts. DEA’s message is clear: we will continue to work relentlessly to dismantle and defeat the international drug trafficking organizations responsible for bringing this poison into our communities, threatening the safety and health of our citizens,” stated DEA Special Agent-in-Charge Reuter.

“This case proves again that New York City law enforcement has a very long reach and that anyone who participates in a criminal network – whether locally or globally – will be held to full account for their actions,” stated NYPD Commissioner Caban.  “I thank the U.S. Attorney for the Eastern District of New York, the DEA, the New York State Police, and all the members of OCDETF, for their dedication to this important long-term investigation.”

“This indictment speaks to the tremendous interagency coordination and cooperation necessary to get illegal drugs off our streets,” stated NYSP Acting Superintendent Chiumento.  “As a result of this effort, a dangerous international drug trafficking operation, and the organized crime perpetuated by it, has been shut down. A drug like cocaine destroys communities and puts lives at risk. I applaud the U.S. Attorney’s Office and all involved law enforcement partners for their outstanding efforts in dismantling this operation. This case sends a clear message that we will not tolerate this illegal activity in our communities, and we will continue to work together to keep our communities safe.”

According to the indictment, court filings, and statements made in court, Ruano Yandun allegedly led a sophisticated drug trafficking organization (“DTO”) that operated in southwestern Colombia and Ecuador.  After procuring cocaine from laboratories operating in Colombia, Ruano Yandun’s DTO arranged for the cocaine to be transported from Colombia and Ecuador through the Pacific Ocean via “go-fast vessels” (“GFVs”).  Such GFVs typically carried several hundred kilograms of cocaine at a time.  After being loaded with cocaine in Colombia or Ecuador, the GFVs would travel to Guatemala or other Central American countries.  Upon successfully arriving in such countries, co-conspirators took possession of the cocaine and transported it by land into Mexico.  Co-conspirators then usually sold the cocaine to Mexican DTOs, who would invariably smuggle the cocaine into the United States to be sold.  The defendant’s organization exported thousands of kilograms of cocaine to Central America and Mexico so that it could eventually be smuggled into the United States.  As part of the investigation, law enforcement authorities seized over 3,000 kilograms of cocaine attributable to Ruano Yandun’s drug trafficking enterprise. 

On November 29, 2017, pursuant to the Foreign Narcotics Kingpin Designation Act, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Ruano Yandun and his organization as Specially Designated Narcotics Traffickers (SDNTs) for playing a significant role in international narcotics trafficking.  At the time of the designation, OFAC explained that Ruano Yandun’s organization was “a key contributor to the increased cocaine production in the Nariño department of Colombia in recent years.”

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

The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum of 10 years’ imprisonment and up to life in prison.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorney Andrew D. Wang is in charge of the prosecution. 

The Defendant:

TITO ALDEMAR RUANO YANDUN
Age: 48
Colombia

E.D.N.Y. Docket No. 17-CR-27 (WFK)

Breon Peace, United States Attorney for the Eastern District of New York, announced agreements with several entities that provide dialysis treatment and services to patients suffering from chronic kidney failure, also known as end-stage renal disease or ESRD.  The defendants have agreed to pay a total of more than $9.5 million to settle civil fraud allegations that they caused double-billing to the Medicaid Program for certain medications.  Under the terms of the agreements, these providers, including DaVita Healthcare Partners, Inc., Bay Ridge Sunset Park Dialysis Center, Inc., Midwood Chayim Aruchim Dialysis Associates, Inc., New York Artificial Kidney Center, Inc., The Rogosin Institute, for itself  and as successor-in-interest to Nephrology Foundation of Brooklyn, Terence Cardinal Cooke Health Care Center, New York Renal Associates, Inc., and Dialysis Clinic, Inc., have paid $3,967,083.38 to the United States under the federal False Claims Act and $5,629,151.20 to New York State under New York State’s False Claims Act.  The agreements were approved by United States District Judge Allyne R. Ross.

“No patients, especially those suffering from chronic diseases, should ever be used by health care providers to defraud Medicaid,” stated United States Attorney Peace.  “This settlement sends a strong message that our office will vigorously prosecute anyone whose practices jeopardize Medicaid for their own enrichment.”

Mr. Peace thanked the Medicaid Fraud Control Unit of the Office of the New York Sate Attorney General for partnering in the Government’s investigation and resolution of this important case. 

The Government’s investigation revealed that, from 2000 through 2010[1], the dialysis clinics and management companies improperly caused claims to be made to Medicaid by retail pharmacies for certain injectable drugs that were administered during the course of dialysis treatment for ESRD. The injectable drugs had already been paid for by Medicaid as part of the composite dialysis payments received by the dialysis clinics and management companies for dialysis treatments. 

The civil settlement resolved allegations brought under the qui tam or whistleblower provisions of the federal and state False Claims Acts against these entities.  Under the qui tam provisions of these Acts, 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.  The qui tam case is captioned United States and the State of New York ex rel. Island Rehabilitative Services, Corp. v. South Brooklyn Nephrology Center, Inc. et al, Civil Action No. 09-CV-1549 (E.D.N.Y).

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 Attorneys Anjna Kapoor and John Vagelatos.   

[1] With regard to defendant Dialysis Clinic, Inc., the alleged conduct occurred between 2006 and 2010.

A federal jury in Brooklyn today returned guilty verdicts on all counts of an indictment charging Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Blanca Hernandez Morales, and Jose Facundo Zarate Morales, who were members of the Queens-based Cid-Hernandez Sex Trafficking Organization, with transportation of minors, sex trafficking, conspiracy to commit Hobbs Act extortion, promotion of prostitution, use of interstate facilities to commit bribery and related conspiracy counts.  The verdict followed a four-week, trial before United States District Judge LaShann DeArcy Hall. When sentenced, the defendants each face up to life in prison, except for Cid Dominguez, who faces up to 40 years in prison. 

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

“Today’s verdict is a milestone in the dismantling of a sex trafficking organization that exploited young women and minors, it is justice for the vulnerable victims who suffered so much pain and suffering, and it is a reckoning for the perpetrators who will soon learn the consequences for their deplorable crimes,” stated United States Attorney Peace.  “It is my hope that the convictions bring some measure of solace to the victims on their paths to healing.”

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, Homeland Security Investigations, New York, the New York City Police Department, and the Putnam County Sherriff’s Office for their outstanding work on the case.

As proven at trial, since approximately 2002, the defendants, all of whom are related by blood or common-law marriage, used force, threats of force, fraud and coercion to cause young women and minor girls from Mexico to engage in prostitution in the United States. Members of the organization pressured the victims, including two minor victims, to travel to the United States with false promises of employment and a better life. When the young girls arrived in New York, they were forced by the defendants to work in prostitution.

During the trial, a victim testified that she was 15 years-old and living in Mexico in 2007 when Cardona, her aunt, offered to pay travel expenses to New York City where the teen could work as a cleaner.  The victim did not know that Cardona, along with her partner Zarate Morales, his mother Hernandez Morales, and her partner Cid Dominguez, were operating a prostitution business.  After the victim arrived in Queens, Cardona and Zarate Morales brokered a deal with a client to sell her virginity and thereafter she was forced to engage in commercial sex with 20 or more men daily. 

Although the Cid-Hernandez Sex Trafficking Organization was based in Queens, young women and minor girls were transported to prostitution clients throughout New York State and Connecticut. The organization controlled “routes,” which were comprised of contact lists of potential clients in specific areas and employed individuals who served as drivers.

Cid Dominguez also bribed Village of Brewster Police Officer Wayne Peiffer with free sexual services to ensure the organization’s protection from law enforcement in his jurisdiction.  Peiffer pleaded guilty in April 2022 to conspiracy to commit Hobbs Act extortion and conspiracy to commit bribery.  Peiffer is awaiting sentencing.

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

The Defendants:

LUZ ELVIRA CARDONA (also known as “Lucy”)
Age:  35
Queens, New York

ROBERTO CESAR CID DOMINGUEZ
Age:  60
Queens, New York

BLANCA HERNANDEZ MORALES (also known as “Nancy,” “Maria Elena,” and “Malena”)
Age:  53
Queens, New York

JOSE FACUNDO ZARATE MORALES (also known as “El Guero”)
Age:  34
Queens, New York

E.D.N.Y. Docket No. 21-CR-622 (LDH)

A social media influencer was sentenced today to seven months in prison and fined $15,000 for his role in a conspiracy to interfere with potential voters’ right to vote in the 2016 presidential election.

According to court documents, by 2016, Douglass Mackey, aka Ricky Vaughn, had established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as one of the most significant influencers of the then-upcoming presidential election. Between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media, which was legally invalid. 

For example, on Nov. 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” Mackey tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by then-presidential candidate Hillary Clinton. On or about and before Election Day 2016, at least 4,900 unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images that Mackey and his co-conspirators tweeted.

Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated in a conference room typing a message on her cell phone. This deceptive image was written in Spanish and mimicked a font that the Clinton campaign used in authentic ads. The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag. 

A federal jury in Brooklyn previously convicted Mackey at trial for conspiracy against rights.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement. 

The FBI investigated the case. 

Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Erik D. Paulsen and F. Turner Buford and Paralegal Specialist Shivani Parshad for the Eastern District of New York prosecuted the case.

Douglass Mackey, was sentenced today by United States District Judge Ann M. Donnelly to 7 months in prison for his role in a conspiracy to interfere with potential voters’ right to vote in the 2016 election for the Office of the President of the United States. Douglass Mackey, also known as “Ricky Vaughn,” was previously convicted of the charge of Conspiracy Against Rights at trial by a federal jury in Brooklyn. Mackey was convicted of the charge in March 2023 following a three-week trial.   

Breon Peace, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General Nicole M. Argentieri 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 sentence. 

“One of the foundational rights we hold as Americans, a right that many fought so hard to obtain, is the right to vote.  The defendant weaponized disinformation in a dangerous scheme to stop targeted groups, including black and brown people and women, from participating in our democracy,” stated United States Attorney Peace. “This groundbreaking prosecution demonstrates our commitment to prosecuting those who commit crimes that threaten our democracy and seek to deprive people of their constitutional right to vote.”

As proven at trial, by 2016, Mackey had established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as one of the most significant influencers of the then-upcoming presidential election.  Between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media which was legally invalid. 

For example, on November 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” the defendant tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by Hillary Clinton.  On or about and before Election Day 2016, thousands of unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images tweeted by Mackey and his co-conspirators.

Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated at a conference room typing a message on her cell phone.  This deceptive image was written in Spanish and mimicked a font used by the Clinton campaign in authentic ads.  The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag. 

This case was investigated by the FBI. 

This case is being prosecuted by Assistant United States Attorneys Erik D. Paulsen and F. Turner Buford of the Eastern District of New York’s Public Integrity Section and Trial Attorney William J. Gullotta of the Department of Justice’s Public Integrity Section.

The Defendant:

DOUGLASS MACKEY
Age: 34
West Palm Beach, Florida

E.D.N.Y. Docket No. 21-CR-80 (AMD)

Dieuverson Caille, a/k/a “Savage,” was sentenced today by Second Circuit Judge Denny Chin, sitting by designation, in Brooklyn to 36 months plus an additional 21 years to run consecutively for committing multiple armed carjackings during the height of the COVID-19 pandemic.  Caille was convicted in March where it was established that between August 28, 2020 and June 20, 2021, Caille, together with his co-conspirator gang members, carjacked four victims at gunpoint, kidnapped one of them, pistol whipped another, and stole their iPhones and money.  Evidence at trial also showed that the defendant was a member of the Eight Tray Gangster Crip and Haitian Loc gangs when he committed these crimes.

Breon Peace, United States Attorney for the Eastern District of New York, and Bryan DiGirolamo, Acting ATF NY 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 verdict.

“The defendant terrorized Brooklyn by committing a string of violent crimes against random, innocent people during the height of the COVID pandemic,” stated United States Attorney Peace.  “The city is a safer place because of today’s sentence and underscores that this Office will vigorously prosecute defendants who commit violent crimes.”

“The men and women of ATF NY and the NYPD successfully disrupted this senseless violent string of armed carjackings. Due to the hard work of law enforcement, a reckless individual is effectively removed from terrorizing more innocent people," stated Acting ATF NY Special Agent in Charge Bryan DiGirolamo. "No one should live in fear simply driving down the street. I am thankful for the collaboration of the men and women of ATF NY’s Strategic Pattern Armed Robbery Technical Apprehension group, NYPD’s Brooklyn Robbery Squad & the U.S. Attorney’s Office for the Eastern District of New York.  ATF NY will continue to work with our partners to aggressively pursue investigations to remove violent criminals from our communities. Working together is vital to our Violent Crime Reduction Strategy here and throughout NY State.”

“Today’s sentence appropriately punishes a brazen criminal who tormented unsuspecting New Yorkers at the peak of the pandemic, and amid a citywide and nationwide spike in motor vehicle thefts,” stated NYPD Commissioner Edward A. Caban. “Mr. Caille has now been held fully accountable for his actions. And I thank all of the talented NYPD and ATF investigators, and everyone involved from the office of the U.S. Attorney for the Eastern District of New York, for their dedication to ending his particular reign of terror.”

As proven at trial, Caille was involved in a series of violent and armed carjackings.  On August 28, 2020, Caille carjacked a victim in Flatbush at gunpoint.  Caille and two of his gang members forced the victim into the backseat of his own car, drove the victim to a drive-through ATM fifteen minutes away and attempted to force the victim to withdraw money.  The victim escaped by jumping out of the car’s window because he thought if he stayed in the car he could be shot.  On September 3, 2020, Caille and several accomplices carjacked a Chevrolet Malibu at gunpoint in Canarsie and attacked an occupant of the car by pistol whipping him.  On November 15, 2020, Caille, acting alone, carjacked at gunpoint the driver of a BMW who was working as a rideshare driver in Flatbush.  Finally, on June 20, 2021, the defendant, together with at least one other accomplice, carjacked at gunpoint the driver of a Porsche in East New York.  The defendant posted pictures of the same make and model Porsche to his Instagram account “cali2savage” three days later.

During the course of the conspiracy, the defendant texted his fellow gang member “I need money” or “I need a V,” which was code for committing robberies or carjackings.  The defendant instructed his co-conspirator to text in Creole to evade law enforcement.

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.

Assistant United States Attorneys Sara K. Winik, Ellen H. Sise, and Antoinette N. Rangel are in charge of the prosecution with assistance from Paralegal Specialist Magdalena St. Surin.

The Defendant:

DIEUVERSON CAILLE
Age: 22
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-547 (DC)

Earlier today, an indictment was unsealed in federal court in Brooklyn federal court charging Douglas Welch, also known as “Paradise,” with sex trafficking by force, sex trafficking conspiracy, interstate prostitution and promotion of prostitution.  The charges in the indictment relate to Welch allegedly forcing victims to engage in prostitution, in among other places, a stretch of Pennsylvania Avenue in Brooklyn known as the “Penn Track.”  Welch was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.

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, Welch has trafficked multiple women for his own financial benefit while boasting about the cruel and brutal violence he has inflicted on the vulnerable victims,” stated United States Attorney Peace.  “Running a brazen, open-air commercial sex market in East New York or anywhere else in our district is unacceptable, dangerous to our communities, and especially harmful to women caught in this terrible cycle of abuse.  Today’s indictment will hold the defendant accountable in a federal courtroom for his exploitative crimes.”

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

“Today’s charges further affirm our unwavering commitment to protecting the survivors of sex trafficking,” stated NYPD Commissioner Caban.  “Together with our law enforcement partners, the NYPD will continue to ensure that anyone seeking to profit through the abuse and exploitation of another human being is identified, investigated, and indicted. I commend everyone involved at the FBI and the office of the U.S. Attorney for the Eastern District of New York for their work on this important case.”

The Penn Track has for years operated as an open-air market where Welch and others have forced trafficking victims to earn money for them by engaging in commercial sex acts with customers in cars or nearby hotels.

As alleged in court documents, Welch recruited women to work on his behalf along the Penn Track and used threats and violence to force those victims to engage in commercial sex with customers, and provide him with the profits.  Welch routinely threatened his victims with physical violence if they disobeyed his orders, telling one victim, “if you f*** with the pimping, I’m gonna crack your head” and threatening to “slap the s***” out of another victim for not listening to him.  He also bragged about knocking unconscious trafficking victims who disrespected him or other traffickers, including describing one instance in which he grabbed a woman by the throat, knocked her onto the sidewalk and then body slammed her for disrespecting another pimp along the Penn Track.   Welch struck a victim with a baseball bat for refusing to engage in prostitution after he directed her to do so, telling another sex trafficker that he wanted to leave a “stain on her brain.”

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges, Welch faces a minimum term of 15 years in prison, and up to life imprisonment.

If you are a victim of trafficking—whether by Welch 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, Kayla Bensing and Joshua Dugan are in charge of the prosecution.

The Defendant:

Douglas Welch (also known as “Paradise”)
Age:  40
Queens, New York

E.D.N.Y. Docket No. 23-CR-411 (OEM)

Earlier today, in federal court in Brooklyn, Ruslan Maratovich Asainov, a U.S. citizen and former resident of Bay Ridge, Brooklyn, was sentenced by United States District Judge Nicholas G. Garaufis to life imprisonment plus seventy years for providing material support to ISIS, a foreign terrorist organization, that resulted in death.  Asainov was also sentenced to concurrent terms of 20 years’ imprisonment on related convictions of conspiracy to provide material support to ISIS and obstruction of justice, and 10 years’ imprisonment for receipt of military-type training from ISIS.  Today’s sentence was imposed by United States District Judge Nicholas G. Garaufis.  Asainov was convicted by a federal jury after a three-week trial in February 2023.

Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Today’s sentence rightly holds Asainov responsible for the carnage he inflicted as a sworn member of ISIS and protects the world community from this avowed killer,” stated United States Attorney Peace.  “The defendant committed his life to that terrorist organization and became a lethal sniper for ISIS in Syria, training many other ISIS members to shoot to kill as ISIS waged its brutal, barbaric campaign.  To this day, the defendant maintains his unrepentant allegiance to that hateful cause.  Like this defendant now knows, anyone who takes up arms in service of ISIS and causes death and destruction will be prosecuted to the fullest extent of the law by this Office.”

“Mr. Asainov abandoned his family and country to fight for ISIS and train others to carry out its reign of terror, a cause to which he remains devoted to this day,” said Assistant Attorney General for National Security Matthew G. Olsen.  “Now, he is being held accountable for his crimes with a sentence of life in prison. The Department of Justice is committed to bringing to justice those who would aid such murderous terrorist organizations.”

“The world is undoubtedly safer with Ruslan Maratovich Asainov behind bars," stated HSI New York Special Agent-in-Charge Arvelo.  “Mr. Asainov pledged himself to ISIS, committed unconscionable acts on behalf of the terrorist group, and bragged about how he taught nearly 100 aspiring snipers how to kill. He further aligned himself to the Islamic State by covering his federal prison cell wall with an improvised ISIS flag. HSI New York is proud to stand with our partners to ensure his atrocities end here.”

“Today’s sentence is a just and fair punishment for a naturalized U.S. citizen who forsook the country that took him in,” stated NYPD Commissioner Caban. “Instead of embracing all that America had to offer him and his family in New York City, he instead pledged allegiance to a foreign terrorist organization. This outcome serves as a warning to those who intend to actively promote or carry out the violent objectives of such groups: The NYPD and our law enforcement partners around the globe will never stop working to identify and bring to justice anyone who so clearly considers our nation their sworn enemy.”  

Between December 2013 and March 2019, Asainov provided and conspired to provide material support and resources in the form of personnel, including himself, training, and expert advice and assistance, to a foreign terrorist organization, namely ISIS, knowing that ISIS was a designated foreign terrorist organization that had engaged in terrorist activity and terrorism.  Asainov also received military-type training from ISIS, in violation of federal law.

On December 24, 2013, Asainov abandoned his wife and daughter in Brooklyn, and boarded a flight at JFK International Airport, bound for Istanbul, Turkey.  Along with a co-conspirator, Mirsad Kandic, by early January 2014, Asainov traveled to northern Syria in the area of Aleppo, and joined ISIS as a fighter.  Kandic was arrested in Sarajevo, Bosnia and Herzegovina, convicted of conspiracy to provide material support to ISIS resulting in death by a federal jury in Brooklyn in May 2022, and sentenced to life in prison in July 2023.

Over the course of approximately five years fighting on behalf of ISIS, Asainov fought in numerous battles against ISIS enemies, including engagements at Kobani, Tabqa, Raqqa, Dayr Az Zawr, and ISIS’s last stand in Syria at Baghouz, in March 2019.  Asainov received training in how to use automatic rifles, machine guns and rocket-propelled grenades.  In Tabqa, in mid-2014, he volunteered to train as a sniper.  Over time, Asainov became a sniper trainer or “emir” on behalf of ISIS, estimating that he taught nearly 100 students.  A former U.S. Navy SEAL scout sniper testified that the defendant’s sniper training course was consistent with what the former SEAL would expect to be taught in a sniper training program.

From Syria, the defendant attempted to recruit another individual to travel from the United States to Syria to fight for ISIS, and sought to obtain funds to purchase a scope for his rifle from the same person.  The defendant also told his estranged wife that he was fighting on behalf of ISIS, described by him in a recorded January 2015 voicemail as “the most atrocious terrorist organization in the world that ever existed.”  Asainov’s estranged wife testified that he sent her a photograph of three dead fighters, one of whom was wearing a patch reading, “Islamic State of Iraq and al-Sham,” i.e., ISIS, in Arabic script.

Asainov was captured in Syria after ISIS’s last stand at Baghouz, near the Syria-Iraq border.  Just before his capture, Asainov discarded his rifle and destroyed his cell phone.

Asainov admitted to agents from the FBI’s Joint Terrorism Task Force that he had fought in numerous battles on behalf of ISIS as a warrior and sniper, serving in several different katibas or ISIS fighting brigades.  In recorded phone calls to his mother from facilities operated by the Bureau of Prisons (“BOP”), the defendant told her that he was carrying out Allah’s orders when he waged jihad and killed for ISIS, that he intended to return to waging jihad if released, and that he would fight until he “meet[s] Allah,” i.e., until his death.  In September 2020, staff at a BOP facility confiscated a makeshift ISIS flag affixed to Asainov’s cell wall. The defendant had filled in an 8.5” x 11” sheet of paper with black ink and Arabic writing in the design of the ISIS flag.  During his trial, the defendant reiterated his allegiance to ISIS to court personnel, stating that ISIS would rise again.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Douglas M. Pravda, J. Matthew Haggans, Nicholas J. Moscow, and Nina C. Gupta are in charge of the prosecution, with assistance provided by Trial Attorney Jenny Levy of the Counterterrorism Section of the National Security Division of the Department of Justice and Paralegal Specialists Wayne Colon and Mary Clare McMahon.

The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on multiple continents provided critical assistance in this case. The Bosnian and Herzegovinian authorities and the FBI Legal Attaché Office in Sarajevo provided extraordinary assistance in the investigation and prosecution. The Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, the Prosecutor General’s Office in Ukraine, and the FBI’s Legal Attaché Offices for those countries provided valuable assistance in the investigation.

The Defendant:

RUSLAN MARATOVICH ASAINOV (also known as “Suleiman Al-Amriki” and “Suleiman Al-Kazakhi”)
Age:  46
Bay Ridge, Brooklyn

E.D.N.Y. Docket No. 19-CR-402 (NGG)

Related Defendants:

MIRSAD KANDIC
Age: 42
Brooklyn, New York; Kosovo

E.D.N.Y. Docket No. 17-CR-449 (NGG)

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, an eight-count indictment was unsealed charging John Waldrop and Toney Jones with conspiracy to smuggle goods into the United States, smuggling goods into the United States, violating the Endangered Species Act (ESA), and money laundering conspiracy.  The defendants surrendered this morning in Atlanta and will make their initial appearances this afternoon in U.S. District Court for the Northern District of Georgia. The defendants will be arraigned via teleconference in federal court in Brooklyn on October 16, 2023.

The defendants are alleged to have illegally imported hundreds of taxidermy bird mounts and thousands of eggs into the United States between January 2016, and December 2020.  U.S. law and regulations require that importers declare wildlife to the U.S. Fish and Wildlife Service (USFWS) and Customs authorities. Permits are also required for wildlife protected by the ESA, Migratory Bird Treaty Act (MBTA) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). 

Breon Peace, United States Attorney for the Eastern District of New York, Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division (ENRD, and Edward Grace, Assistant Director, U.S. Fish and Wildlife Service, Office of Law Enforcement (USFWS), announced the arrests and charges.

“It is in our national and global interest to enforce federal laws and treaties that protect endangered birds from the harm of alleged profiteers like the defendants, and the Eastern District of New York will do so” stated United States Attorney Peace.

Mr. Peace also thanked The U.S. Postal Inspection Service and the Alabama Department of Conservation and Natural Resources for their assistance with the investigation.

“The Endangered Species Act is a vital law in the fight against international trafficking of protected wildlife,” stated Assistant Attorney General Kim. “Rare and endangered birds have important roles in their habitats, and we are committed to preventing and deterring their unlawful removal.”

“This investigation highlights the immense pressure illegal trade places on imperiled bird species around the world, and the Service's commitment to upholding laws and treaties that prevent the exploitation of foreign and domestic species,” stated USFWS Assistant Director Grace. “We hope this indictment sends a clear message that our investigators will work tirelessly to seek justice for poached wildlife.”

According to the indictment, Waldrop and Jones used online sales sites such as eBay and Etsy to buy taxidermy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom and Uruguay. Waldrop and Jones imported and collected many species of protected birds, such as canary, dipper, duck, eagle, falcon, grouse, gull, hawk, heron, hoopoe, kestrel, kinglet, lapwing, murre, owl, parrot, pochard, rail, teal, snipe, spoonbill, vulture and woodpecker. 

In addition to the conspiracy, the indictment charges Waldrop and Jones with importing three packages containing taxidermy birds and eggs in 2020 through John F. Kennedy International Airport in violation of smuggling and ESA laws. The packages contained a Levant sparrowhawk, a grasshopper buzzard-hawk, two gull eggs, two murre eggs and one unidentified bird egg. The final count of the indictment alleges that Waldrop and Jones conspired to commit money laundering by sending funds out of the United States to finance bird smuggling. The indictment also seeks forfeiture of 779 bird mounts and 2,594 eggs alleged to have been illegally imported into the United States.

As alleged, Waldrop and Jones made requests to wildlife dealers for particular bird species, including species that were protected under CITES and the MBTA. In turn, those dealers notified Waldrop and Jones when a bird of that species had been killed and was available for purchase. Waldrop and Jones also communicated regularly with dealers about new birds available for purchase. The estimated value of the wildlife purchased, transported, imported, and possessed by the defendants was at least $1.2 million.

The CITES treaty regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty. The MBTA implements treaties with Canada, Japan, Mexico, and Russia to protect many native U.S. bird species that also have habitats in those countries.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of the smuggling and money laundering charges, Waldrop and Jones face up to 20 years in prison and a $250,000 fine.  The conspiracy charge carries a five-year maximum sentence, and the ESA is punishable by six months in prison.

Assistant United States Attorney Anna Karamigios of the Eastern District of New York and Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section are in charge of the prosecution.

The Defendants:

JOHN WALDROP
Age:  74
Cataula and Columbus, Georgia

TONEY JONES
Age:  53
Eufala, Alabama

E.D.N.Y. Docket No.: 23-CR-378 (RPK)