Eastern District of New York

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

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

“The victim worked long hours to start his own company only to be murdered execution-style by these treacherous defendants who thought nothing of snuffing out a human life as part of their own business plan,” stated United States Attorney Peace.  “Thanks to the jury, and the outstanding work of the prosecutors, NYPD detectives and FBI special agents, justice has been served and the defendants will be deservedly punished for this vicious killing.”

 As proven at trial, Allen Yu was the president of Amaco, a multi-million dollar construction company that renovated apartments in New York City. In 2015, Xin Gu joined Amaco as a project manager.  Although Amaco’s business nearly quadrupled after he joined the company, Xin Gu became concerned about the company’s financial viability and resigned in 2018 to start his own property development company called KG Management.  After Xin Gu’s departure, several clients and employees also cut ties with Qing Ming Yu’s business. Multiple companies took their lucrative projects from Amaco to KG Management, including one project valued at $1,000,000. Enraged at Xin Gu’s perceived disloyalty, Qing Ming Yu hired co-conspirator You You and Zhe Zhang to kill Xin Gu in exchange for payment.  Zhang in turn hired another co-conspirator, Antony Abreu, to assist in carrying out the murder. 

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

You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing.  Abreu is awaiting trial.

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

The Defendants:

QING MING YU (also known as “Allen”)
Age: 55
Oyster Bay, New York

ZHE ZHANG (also known as “Zack”)
Age: 35
Arcadia, California and Flushing, New York

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

An 11-count indictment was unsealed on October 4, 2023 in federal court in Central Islip charging Carlos Humberto Aquino-Hernandez, also known as “Caprichoso” and “Flaco” (“Aquino-Hernandez”), who is a member of the Coronados Locos Salvatruchas subgroup or “clique” of the MS-13, the violent transnational criminal organization La Mara Salvatruchas, and Gerson Hernandez, also known as “Steven Jefferson,” “Jeffrey,” “Serio,” “Serioso” and “Necio,” who is a member of the Hempstead Locos Salvatruchas clique of the MS-13, with multiple racketeering offenses in connection with two murders, a narcotics trafficking conspiracy, as well as with related charges of murder, conspiracy to commit murder, firearms offenses, and narcotics trafficking offenses. 

Hernandez was arraigned this afternoon before United States Magistrate Judge Lee G. Dunst at the federal courthouse in Central Islip and was ordered detained pending trial.  On October 6, 2023, Aquino-Hernandez was ordered removed in custody from the District of Maryland and will be arraigned in the Eastern District of New York at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in Charge, Federal Bureau of Investigation, New York Field Office (“FBI”), and Patrick J. Ryder, Commissioner, Nassau County Police Department (“NCPD”) announced the indictment and charges.

“The defendants allegedly committed two murders in furtherance of the MS-13 enterprise with all the gang’s hallmarks of senseless, brutal violence that endangers the entire community as evinced by unleashing gunfire outside a McDonald’s in broad daylight near a mother walking with her child,” stated United States Attorney Peace.  “The defendants fleeing to another state proved futile thanks to the outstanding efforts of law enforcement to hold them accountable now in a federal courtroom on Long Island.”

Mr. Peace expressed his appreciation to the members of the FBI’s Long Island Gang Task Force, the NCPD, and the Nassau County District Attorney’s Office; as well as to the members of the FBI’s Baltimore Division and Cross Border Task Force, the Prince George’s County Police Department, the Montgomery County Police Department, the Montgomery County Division of the Maryland National Capital Park Police, and the United States Attorney’s Office for the District of Maryland for their tremendous assistance and partnership in this case. 

“The actions of Aquino-Hernandez and Hernandez remind us that gangs are responsible for a significant percentage of violent crime in many jurisdictions, putting innocent people at risk as they avenge their rivals. The violence caused by MS-13 has terrorized our communities for far too long, and the FBI is committed to dismantling this violent gang and putting an end their atrocities once and for all,” stated FBI Assistant Director-in-Charge Smith.

The July 19, 2022 Murder of Walter Ochoa

Walter Ochoa was targeted by MS-13 members who suspected him of being a member of a rival street gang.  Ochoa’s murder was also committed in retaliation for the killing of an MS-13 member 11 days earlier which the MS-13 blamed on the 18th Street gang.  On the evening of July 19, 2022, Ochoa was with another individual in Uniondale Park when they were approached by the defendants and a third MS-13 member, who were armed with a .45 caliber handgun and at least one knife.  After they shot Ochoa to death and stabbed him in the neck and abdomen, the three MS-13 members fled the park.

The September 14, 2022 Murder of Hector Valencia Gomez

Surveillance footage from the McDonald’s restaurant revealed that on the afternoon of September 14, 2022, Hernandez and an MS-13 associate were being chased by Gomez towards a dumpster next to the McDonald’s drive-thru.  Hernandez waved over Aquino-Hernandez who was armed with a 9-millimeter handgun.  Aquino-Hernandez fired at Gomez, who was running in between cars lined up at the drive-thru.  Gomez stumbled several steps before collapsing, after which point Aquino-Hernandez fired additional rounds at Gomez as he lay on the pavement.  The MS-13 associate also struck Gomez in the arm with a large knife.  The surveillance video also shows a mother and her small child, several feet away from the attack, running for cover during the shooting.  Hernandez and Aquino-Hernandez were later arrested in Maryland where they had traveled to avoid apprehension for the murders.

Finally, the defendants are charged with conspiring to distribute cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations, including purchasing firearms, ammunition and other weapons, and sending money to MS-13 leadership in Central America. 

The indictment 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, a violent transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras and Mexico, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults.  Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 65 murders in the Eastern District of New York, and it has convicted dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the NCPD, the Suffolk County Police Department, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.

If convicted, each defendant faces up to life in prison, or the possibility of the death penalty.  The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.

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

The Defendants:

CARLOS HUMBERTO AQUINO-HERNANDEZ ( also known as “Caprichoso” and “Flaco”)
Age: 22
Uniondale, New York and Baltimore, Maryland

GERSON HERNANDEZ (also known as “Steven Jefferson,” “Jeffrey,” “Serio,” “Serioso” and “Necio”)
Age: 22
Hempstead, New York

E.D.N.Y. Docket No. 23-CR-369 (JMA)

The Justice Department today announced the unsealing of an indictment charging Dr. John Waldrop, 74, of Cataula, Georgia, and Toney Jones, 53, of Eufala, Alabama, on conspiracy, smuggling, Endangered Species Act (ESA) and money laundering charges. An arraignment in federal court is scheduled for Oct. 16.

The indictment alleges that Waldrop and Jones illegally imported hundreds of taxidermy bird mounts and thousands of eggs into the United States between Jan. 1, 2016, and Dec. 10, 2020; they did not import any live birds. 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).  

“The Endangered Species Act is a vital law in the fight against international trafficking of protected wildlife,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Rare and endangered birds have important roles in their habitats, and we are committed to preventing and deterring their unlawful removal.”

“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,” said U.S. Attorney Breon Peace for the Eastern District of New York.

“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,” said Assistant Director Edward Grace of the USFWS Office of Law Enforcement. “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 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 myriad 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 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.

The maximum sentence for the smuggling and money laundering charges is 20 years in prison and a $250,000 fine, or twice the economic gain or loss. The conspiracy charge carries a five-year maximum sentence, and the ESA is punishable by six months in prison.

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, which regulates trade in endangered or threatened species through permit requirements. 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 USFWS’s Office of Law Enforcement in Valley Stream, New York, conducted the investigation as part of Operation Final Flight. The operation focused on the trafficking of protected birds into the United States. The U.S. Postal Inspection Service and Alabama Department of Conservation and Natural Resources assisted with the investigation.

The government is represented by Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Anna Karamigios 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.

A criminal complaint was unsealed today in federal court in Brooklyn charging Marcia Joseph with wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization (Company-1) that provides employment and education services for those in need.  Joseph was arrested earlier today and made her initial appearance this afternoon before United States Magistrate Judge Peggy Kuo.  The defendant was released on a $50,000 bond.

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 Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the arrest and charges.

“As alleged, Joseph lined her pockets with millions of dollars that she stole from a charity,” stated United States Attorney Peace.  “Money that should have gone to support those with employment and educational needs instead was used to pay for the defendant’s personal expenses, including mortgage payments, spa treatments, home remodeling, and landscaping.  Today’s charges send a message to those entrusted with positions of trust that if you abuse that trust for personal gain, you will be arrested and prosecuted.”

“Depleting resources procured for those with special needs is among the most egregious of financial crimes. As we allege today, Joseph did just that by embezzling millions of dollars from the company for which she worked, diverting money away from programs for those in need and right into her pockets. We remind the public that those who engage in similar schemes will be met with a similar fate,” stated FBI Assistant Director-in-Charge Smith.

“This former senior fiscal officer at a Brooklyn-based nonprofit embezzled more than $2.3 million by submitting to the nonprofit fictitious invoices for services, some of which purportedly related to City contracts, for payment to an entity that the defendant created and controlled, according to the criminal complaint,” stated DOI Commissioner Strauber.  “As charged, the defendant used her position of trust and responsibility to line her pockets at the expense of a nonprofit that receives City funding and provides critical services to vulnerable New Yorkers.  I thank the FBI and the U.S. Attorney's Office for the Eastern District of New York for their partnership in this investigation and their commitment to protect important public resources from fraud and abuse.”

According to the complaint, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged.  Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1.  In truth, Prestige performed no work, and instead was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period.  Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; 207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods.  Joseph also withdrew nearly $100,000 in cash, disbursed approximately $16,000 to friends and family, and issued approximately $50,000 in Prestige checks to herself.

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

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorney Eric Silverberg is in charge of the prosecution with assistance from Paralegal Specialists Elizabeth Reed and Melissa Bennett.

The Defendant:

MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age:  57
Baldwin, New York

E.D.N.Y. Docket No. 23-MJ-883

Earlier today, in federal court in Brooklyn, Jacob Daskal, the former head of the Boro Park Shomrim Society (the “Shomrim”), a private, Orthodox Jewish crime-patrol group associated with the New York Police Department, was sentenced by United States District Judge Nicholas G. Garaufis, to 210 months in prison and a $250,000 fine for transporting a minor with intent to engage in criminal sexual activity.  Daskal pleaded guilty to the charge in July 2023. As part of the sentence, Daskal is required to register as a sex offender.

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.  

“Daskal used his position of power to inflict serious mental, emotional and physical harm on a vulnerable underaged victim, who belonged to the same community he promised to serve and protect,” stated United States Attorney Peace.  “Today’s sentence brings some measure of justice for the brave victim.”

Mr. Peace also expressed his appreciation to the Kings County District Attorney’s Office and the New York City Police Department for their assistance with the investigation.

As set forth in court filings and statements at court proceedings, in the spring of 2017, as a result of his position with the Shomrim, Daskal was introduced to a 15-year-old girl who was having issues with her family and whom he took into his home and then groomed for sex.  Between August and November 2017, Daskal, then 58 years-old, subjected the 15-year-old victim to sexual acts. 

During the summer of 2017, the sexual conduct occurred primarily at Daskal’s house in Brooklyn, New York and at his summer house in South Fallsburg, New York.  Daskal frequently transported the victim between those locations by way of New Jersey.   At the end of August, Daskal, his family and the victim returned full-time to his house in Brooklyn where the abuse continued.  As the school year started, the defendant helped the victim find a new school in Chicago, Illinois, and, in October 2017, she moved there to attend that school and live with another family.  While the victim was in Chicago, Daskal communicated with the victim via text message and over Skype video chat.  On November 5, 2017, Daskal traveled to Chicago to visit the victim.  Daskal booked a hotel room in Chicago, and he brought the victim to the hotel for sex.  He returned to New York that evening.

Throughout the abuse, Daskal instructed the victim to delete their communications and warned her not to tell anyone about their sexual relationship.  Daskal also used his position as a leader in their community to quiet the victim, bragging about his connections to law enforcement and warning her that it would ruin her life if she told anyone about their relationship.  In fact, the victim was expelled from her religious school after disclosing her relationship with Daskal to the school principal.

The government’s case is being handled by the office’s Civil Rights Section.  Assistant United States Attorneys Erin Reid and Genny Ngai are in charge of the prosecution with assistance from Litigation Analyst Ryan Costley. 

The Defendant:

JACOB DASKAL
Age:  64
Brooklyn, New York

E.D.N.Y. Docket No. 21-CR-110 (NGG)

A six-count indictment was unsealed today in federal court in Brooklyn charging Charles Limmer with conspiracy to smuggle wildlife into the United States, smuggling wildlife into and out of the United States, and violations of the Lacey Act’s prohibitions on falsely labeling and trafficking in wildlife.  Limmer allegedly trafficked numerous deceased specimens of protected butterflies commonly referred to as “birdwings” due to their exceptional size, angular wings and bird-like flight. Limmer will be arraigned at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, and Paul Chapelle, Resident Agent-in-Charge, U.S. Fish and Wildlife Service, Valley Stream Division (FWS), announced the charges. 

Mr. Peace also thanked the U.S. Postal Inspection Service and U.S. Customs and Border Protection for their assistance with the investigation.

Limmer operated a commercial business (the “Limmer Business”) importing, exporting, purchasing, and selling wildlife, including protected species of butterflies. In 2016, the Limmer Business obtained a license to import and export wildlife from the FWS. The FWS suspended the license in October 2022.

U.S. law and regulations require that commercial importers and exporters of wildlife have a license and declare wildlife to the FWS.  The restrictions apply to live and dead wildlife specimens, as well as the skins, parts and products made in whole or in part from listed species. Additional documents are also required for wildlife protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), including birdwing butterflies.  The Lacey Act also requires that wildlife shipments be accurately labeled and prohibits trafficking in wildlife that an individual knows was transported unlawfully.

As alleged in the indictment, between October 2022 and September 2023, Limmer illegally imported and exported over $200,000 worth of shipments of deceased wildlife specimens.  Limmer sold the unlawfully imported wildlife on Internet platforms to customers located around the world.  To conceal the scheme, Limmer directed his co-conspirators to label the shipments of wildlife as “decorative wall coverings,” “origami paper craft” and “wall decorations.”  He also noted to one co-conspirator, “Screw USFWS[….] They are a gang of Orangutans.” 

The indictment also seeks forfeiture of over 1,000 butterflies, moths and other insects alleged to have been illegally trafficked. 

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

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

The Defendant:

CHARLES LIMMER
Age:  75
Commack, New York

E.D.N.Y. Docket No. 23-CR-405 (LDH)

Earlier today, Semaj Smith, also known as “Bam Bam” and “Real Ryte Sport,” a member of the Brooklyn-based street gang Real Ryte, pleaded guilty at the federal courthouse in Brooklyn to racketeering conspiracy and brandishing a firearm in furtherance of a crime of violence.  Smith’s guilty plea was preceded by those of co-defendants Dajahn McBean, also known as “Jeezy Mula,” who is the leader of Real Ryte, and Real Ryte member Mark Waiters, also known as “Telly.”  The three defendants pleaded guilty in connection with a superseding indictment stemming from Real Ryte’s gang war with the Breadgang crew of the 5-9 Brims, a subset of the Bloods, including a shooting in which Real Ryte members and an associate wounded an innocent bystander they mistook for a member of the rival crew. 

Today’s proceeding took place before United States District Judge Hector Gonzalez.  When sentenced, Smith and Waiters each face up to life in prison, and McBean 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 pleas.

“The defendants admitted that Real Ryte carried out violent crimes and committed acts of fraud, leaving some victims destitute and others shot.” stated United States Attorney Peace.  “These types of organized criminal groups inflict grievous harm on their communities and will not be tolerated.” 

Mr. Peace expressed his appreciation to the New York City Police Department for outstanding work and assistance in this investigation.

According to court filings and facts presented during the plea proceedings, between 2015 and 2018, Real Ryte was a violent street gang that operated in Brooklyn.  Real Ryte members committed acts of violence, including murder and assault, and also engaged in bank fraud and wire fraud while committing other serious crimes.”

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

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

The Defendants:

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

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

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

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

A federal grand jury in Central Islip, New York, returned a superseding indictment today charging George Anthony Devolder Santos (George Santos), 35, a U.S. Congressman representing the Third District of New York, with one count of conspiracy to commit offenses against the United States, two counts of wire fraud, two counts of making materially false statements to the Federal Election Commission (FEC), two counts of falsification of records submitted to the FEC, two counts of aggravated identity theft, and one count of access device fraud. Santos was previously charged with an additional seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the U.S. House of Representatives in the original indictment.

According to court documents, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on Jan. 7, engaged in two fraudulent schemes, in addition to the multiple fraudulent schemes alleged in the original indictment.

The Party Program Scheme

According to the allegations in today’s superseding indictment, during the 2022 election cycle, Santos was a candidate for the U.S. House of Representatives in New York’s Third Congressional District. Nancy Marks was the treasurer for his principal congressional campaign committee. During that election cycle, Santos and Marks allegedly devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the FEC on behalf of the campaign, in which Santos and Marks inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

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

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

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

The Credit Card Fraud Scheme

As alleged in the superseding indictment, between approximately December 2021 and August 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then allegedly charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’ campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented that some of the campaign contributions were made by other persons, such as his relatives or associates or other contributors, rather than the true cardholders. Santos did not have authorization to use the cardholders’ names in this way.

For example, in December 2021, one contributor (the contributor) texted Santos and others to make a contribution to his campaign, providing billing information for two credit cards. In the days after he received the billing information, Santos allegedly used the credit card information to make numerous contributions to his campaign and affiliated political committees in amounts exceeding applicable contribution limits, without the contributor’s knowledge or authorization. To mask the true source of these contributions and thereby circumvent the applicable campaign contribution limits, Santos falsely identified the contributor for one of the charges as one of his relatives. In the following months, Santos allegedly repeatedly charged the contributor’s credit card without the contributor’s knowledge or authorization, attempting to make at least $44,800 in charges and repeatedly concealing the true source of funds by falsely listing the source of funds as Santos himself, his relatives, and other contributors. On one occasion, Santos charged $12,000 to the contributor’s credit card, ultimately transferring the vast majority of that money into Santos’s own personal bank account.

The case is currently scheduled for a status conference before Judge Seybert on Oct. 27. If convicted, he faces a mandatory minimum penalty of two years in prison for the aggravated identity theft counts and a maximum penalty of 20 years in prison for the other counts. 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 in Charge James Smith of the FBI New York Field Office, and Nassau County District Attorney Anne T. Donnelly 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. Former Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.

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

CENTRAL ISLIP, NY – A 23-count superseding indictment was filed today in the United States District Court for the Eastern District of New York, charging George Anthony Devolder Santos, better known as “George Santos,” the United States Representative for the Third District of New York, with one count of conspiracy to commit offenses against the United States, two counts of wire fraud, two counts of making materially false statements to the Federal Election Commission (FEC), two counts of falsifying records submitted to obstruct the FEC, two counts of aggravated identity theft, and one count of access device fraud, in addition to the seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the United States House of Representatives that were charged in the original indictment.  Santos is due back in federal court in Central Islip on October 27, 2023.

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, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the superseding indictment.

“As alleged, Santos is charged with stealing people’s identities and making charges on his own donors’ credit cards without their authorization, lying to the FEC and, by extension, the public about the financial state of his campaign.  Santos falsely inflated the campaign’s reported receipts with non-existent loans and contributions that were either fabricated or stolen” stated United States Attorney Peace.  “This Office will relentlessly pursue criminal charges against anyone who uses the electoral process as an opportunity to defraud the public and our government institutions.”

“Santos allegedly led multiple additional fraudulent criminal schemes, lying to the American public in the process.  The FBI is committed to upholding the laws of our electoral process.  Anyone who attempts to violate the law as part of a political campaign will face punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.

“The defendant - a Congressman - allegedly stole the identities of family members and used the credit card information of political contributors to fraudulently inflate his campaign coffers,” stated District Attorney Donnelly.  “We thank our partners in the US Attorney’s Office and the FBI as we work together to root out public corruption on Long Island.”

As alleged in the superseding indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on January 7, 2023, engaged in two fraudulent schemes, in addition to the multiple fraudulent schemes alleged in the original indictment.

The Party Program Scheme

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

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

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

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

The Credit Card Fraud Scheme

In addition, between approximately December 2021 and August 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign.  He then charged contributors’ credit cards repeatedly, without their authorization.  Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account.  To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders.  Santos did not have authorization to use their names in this way.

For example, in December 2021, one contributor (the “Contributor”) texted Santos and others to make a contribution to his campaign, providing billing information for two credit cards.  In the days after he received the billing information, Santos used the credit card information to make numerous contributions to his campaign and affiliated political committees in amounts exceeding applicable contribution limits, without the Contributor’s knowledge or authorization. To mask the true source of these contributions and thereby circumvent the applicable campaign contribution limits, Santos falsely identified the contributor for one of the charges as one of his relatives.  In the following months, Santos repeatedly charged the Contributor’s credit card without the Contributor’s knowledge or authorization, attempting to make at least $44,800 in charges and repeatedly concealing the true source of funds by falsely listing the source of funds as Santos himself, his relatives and other contributors.  On one occasion, Santos charged $12,000 to the Contributor’s credit card, ultimately transferring the vast majority of that money into his personal bank account.

The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The government’s case is being handled by the Office’s Public Integrity Section, the Long Island Criminal Division, and the Justice Department Criminal Division’s Public Integrity Section.  Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jacob Steiner and John Taddei, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman.  Former Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section also provided substantial contributions to the prosecution.

The Defendant:

GEORGE ANTHONY DEVOLDER SANTOS
Age:  35
Washington, District of Columbia

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

Good afternoon, today, justice has been served. 

During the morning rush hour on April 12th, 2022, Frank James unleashed a premeditated attack on unsuspecting New Yorkers he trapped in a subway car, firing 32 shots and seriously wounding 10 people.  For those acts, Frank James was sentenced to:

10 concurrent sentences of life in prison, plus an additional 10-year consecutive sentence.

The daily lifeblood of New York City is in its transit system – it’s found in the subway cars that are responsible for safely transporting New Yorkers every single day.  Frank James attempted to take that sense of safety away and inject fear and chaos into the heart of this City.  While he found temporary success in his plot, due to the resilience of New Yorkers and our relentless pursuit of justice, he ultimately failed.

On that horrific morning, when New Yorkers left their homes and boarded the N train, they had no idea that they were entering a death trap that Frank James orchestrated.  A trap that he had been planning to set for years during which he purchased smoke bombs, disguises, and guns.  In the weeks leading up to the attack, he scouted the location for his attack and completed multiple practice runs.  On the day of the attack, when the train was between stations, he put his evil plan into action.  He set off a smoke bomb, causing his victims to flee to the opposite end of the subway car.  They had nowhere else to run.  Then the defendant fired at them 32 times.  32 times in a closed subway car.  We can only imagine the terror the passengers in that car experienced.  Each time he pulled the trigger on his handgun, he made the choice to try to take a life.  And although fortunately no one died, sixteen (16) of those 32 bullets struck the bodies of the cornered, innocent victims. 

The victims – not just those who were wounded physically, but also those who witnessed this horrific act, and others who put themselves at risk to help, will live with these traumatic events for the rest of their lives.

From the victim who saved another passenger’s life by applying a makeshift tourniquet, to the victim who nearly lost her unborn child, to the victim who was shot three times and miraculously lived—dozens of people’s lives will forever be negatively affected because of the defendant’s heartless acts of terror.

The impact and fear were felt beyond the direct victims in that subway car and station that morning, the defendant terrorized the city at large.  Schools were on lockdown.  Parents rushed to pick up their kids and make sure that they were safe.  People feared taking the subway.  No one knew whether there would be additional attacks.  There was a city-wide manhunt for more than 24 hours, and the terror caused by the attack lingered until the defendant was caught.  And today Frank James was held accountable.

I want to thank our law enforcement partners who helped us secure justice in this case: the FBI, the NYPD, and the entire New York Joint Terrorism Task Force.  I also want to thank the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Transportation Authority which provided critical assistance along the way.  The excellent and determined work and cooperation of these agencies led to the identification and apprehension of Frank James.  Without the efforts of these agencies, we would not be standing here today.

I want to thank the outstanding prosecution team from my Office: Assistant United States Attorneys Sara Winik, Ellen Sise and Ian Richardson, paralegal specialist Magdalena Saint Surin, and the entire National Security & Cybercrime Section of my Office.  And I want to express appreciation to Attorney General Garland, Deputy Attorney General Monaco and our colleagues in the National Security Division of the Department of Justice for their support during the investigation of the attack and through the duration of this case.

Finally, to the people on that N train and in that station that morning, I want to thank you.  You helped each other get to safety and to medical care.  Your efforts assisted law enforcement in quickly identifying the defendant.  On a day when evil imperiled so many, you showed that this city is made of good people. That we look out for one another.  You are the fabric of this city; you are resilient.  And on a dark day of danger and fear, you showed strength and courage, you showed that you are the light. 

Today’s sentence sends a clear message to any would-be terrorist:  if you plan or commit an act of violence, this Office will aggressively pursue federal charges and prosecute you to the fullest extent of the law.

Now we will hear from FBI Special Agent in Charge Rob Kissane.

A New York man pleaded guilty today to conspiring to defraud Medicare and Medicaid of more than $25 million for medically unnecessary prescriptions that were induced by kickbacks and bribes. 

According to court documents, Dacheng Lu, aka Bruce Lu, 44, of Great Neck, was a part owner of 888 Pharmacy Inc. (888) and Huikang Pharmacy Inc. (Huikang). Between January 2015 and December 2022, Lu and his co-conspirators referred Medicare beneficiaries and Medicaid recipients to medical practices that prescribed medically unnecessary topical medications and pain patches, which 888 and Huikang billed to Medicare and Medicaid. In exchange for writing medically unnecessary prescriptions, Lu and his co-conspirators provided the medical practices kickbacks and bribes in the form of rent and office staff. 

Lu pleaded guilty to conspiracy to commit health care fraud. He is scheduled to be sentenced on Jan. 24, 2024, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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, Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.

HHS-OIG and the FBI are investigating the case.

Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Frank James, 62, of Milwaukee, Wisconsin, was sentenced today by U.S. District Judge William F. Kuntz II to 10 concurrent life sentences in prison, plus 10 years to run consecutively for shooting 10 people during an attack on the New York City subway in Sunset Park, Brooklyn, on April 12, 2022. James previously pleaded guilty to all 11 counts of a superseding indictment, which included 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle – one count for each gunshot victim – and one count of discharging a firearm in furtherance of his violent attack.

“Nothing can undo the damage that Frank James’s mass shooting inflicted on the 10 victims who were shot or the dozens more who suffered other injuries, but this sentence ensures that he will spend the rest of his life in prison for the devastation he caused,” said Attorney General Merrick B. Garland. “This sentence also makes clear that the Justice Department has no tolerance for crimes that terrorize our communities and will ensure accountability for those who perpetrate them.”

“Whenever domestic violent extremists violate our laws and commit heinous acts of violence against the American public, the FBI will work hand in hand with our law enforcement partners at all levels to pursue justice for the victims and hold criminals accountable for their abhorrent actions,” said FBI Director Christopher Wray. “The public we serve deserves nothing less.”

“In an act of cold-blooded terrorism, this defendant shot 32 rounds at defenseless victims trapped in a subway car during their rush hour commute,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF agents immediately responded to the scene of the shooting and joined their state, local and federal law enforcement partners in the investigation. When a gun was recovered on the subway platform, ATF conducted an urgent trace of the crime gun to identify the purchaser, ultimately leading to the name of the shooter. Today’s sentence not only reflects the heinousness of the crimes committed, but it reflects the extraordinary work of all the law enforcement and prosecutors involved. It takes the best of the best to catch the worst of the worst.”

“Today’s sentence delivered the necessary penalty for Frank James who callously carried out a terroristic mass shooting on a crowded subway car, intentionally attempting to kill innocent people, and spilling much blood,” said U.S. Attorney Breon Peace for the Eastern District of New York. “He wounded 10 victims in his planned out attack and affected the lives of many more. Every one of the victims who experienced that horror feared that they would never see their children or loved ones again. It is appropriate that the defendant will never know freedom again and will spend the rest of his life in prison so that no one can be harmed further by him. I hope that this sentence brings some closure to the many victims of this violent attack and brings comfort to the city at large in knowing that justice was done.”

During rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he legally purchased to conduct a mass shooting on an N subway train in Brooklyn. James planned his act of terror for years – purchasing smoke bombs, disguises, firearms, and ammunition. He scouted the location for his attack and completed multiple practice runs. As part of his attack, James, disguised in an orange reflective jacket and yellow hard hat to look like a Metropolitan Transportation Authority (MTA) employee, set off a smoke-bomb in a subway car before opening fire on his captive victims. Panicked passengers ran to the far end of the subway car, allowing James to shoot at his victims more easily. When the defendant started shooting, the train was between stations and then temporarily stalled, leaving victims trapped. In total, 10 victims were struck by 16 bullets fired by the defendant. Dozens more suffered from smoke inhalation and other mental and physical injuries due to the defendant’s attack. James then fled the scene of the attack, changing his clothing frequently to evade detection while law enforcement engaged in a 36-hour manhunt to find him and bring him to justice.   

At some point after the shooting, James purchased a burner phone which he used to follow the coverage of his attack while hiding from law enforcement. For example, James watched 31 videos of news reports about his subway shooting. He also watched a James Bond chase scene from the movie “No Time to Die” 10 times after the attack. Finally, James turned himself in by calling the NYPD crime stoppers hotline on April 13, 2022, the day after the mass shooting.

The New York Joint Terrorism Task Force investigated the case, with valuable assistance provided by the Metropolitan Transportation Authority (MTA) and the ATF.

Assistant U.S. Attorneys Sara K. Winik and Ellen H. Sise for the Eastern District of New York are prosecuting the case with valuable assistance provided by the National Security Division’s Counterterrorism Section.

Frank James was sentenced today by United States District Judge William F. Kuntz, II to 10 concurrent life sentences in prison, plus 10 years to run consecutively for shooting 10 people during an attack on the New York City subway in Sunset Park, Brooklyn, on April 12, 2022.  James previously pleaded guilty to all 11 counts of a superseding indictment, which included 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle—one count for each gunshot victim—and one count of discharging a firearm in furtherance of his violent attack.

Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, 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.

“Today’s life sentence delivered the necessary penalty for Frank James, who callously carried out a mass shooting on a crowded subway car, attempting to kill innocent people, and spilling much blood.  He wounded 10 victims in his calculated attack and terrorized many more,” stated United States Attorney Peace.  “I hope that this sentence brings some closure to the many victims of this violent attack and comfort to the city at large in knowing that justice was done.”

Mr. Peace praised the exceptional efforts of the New York Joint Terrorism Task Force for the investigation and speedy apprehension of the defendant.  He also extended his appreciation to the Metropolitan Transportation Authority (MTA) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their assistance.

“Today, Frank James was rightfully sentenced for his deliberate and calculated act of terror against our city.  He aimed to kill innocent people, who were simply going about their daily lives amid the morning rush. It is because of the dogged determination and vigilance of the investigators of the FBI New York’s Joint Terrorism Task force that James was brought to justice and is facing the consequences he rightfully deserves,” stated FBI Assistant Director-in-Charge Smith.  

“Today’s outcome hopefully brings solace to the many victims of Mr. James, who carried out a horrifying act of terrorism in a cold, calculated, premeditated manner,” stated NYPD Commissioner Caban.  “From the moment Mr. James committed this appalling crime, we and our law enforcement partners shrank his world until he had nowhere to turn – and the people of New York City worked alongside us. In addition to our colleagues at the FBI, the ATF, the U.S. Marshals Service, and the U.S. Attorney’s Office for the Eastern District of New York, I thank and commend New Yorkers for their vigilance in helping bring this unseemly episode to a just conclusion.” 

During rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he legally purchased to conduct a mass shooting on an N subway train in Brooklyn.  James planned his act of terror for years—purchasing smoke bombs, disguises, firearms, and ammunition.  He scouted the location for his attack and completed multiple practice runs.  As part of his attack, James, disguised in an orange reflective jacket and yellow hard hat to look like an MTA employee, set off a smoke-bomb in a subway car before opening fire on his captive victims.  Panicked passengers ran to the far end of the subway car, allowing James to shoot at his victims more easily.  When the defendant started shooting, the train was between stations and then temporarily stalled, leaving victims trapped. In total, the defendant fired at least 32 bullets and 10 victims were struck by his gunfire.  Dozens more suffered from smoke inhalation and other mental and physical injuries due to the defendant’s attack.  James then fled the scene of the attack, changing his clothing frequently to evade detection while law enforcement engaged in a 36-hour manhunt to find him and bring him to justice.    

At some point after the shooting, James purchased a burner phone which he used to follow the coverage of his attack while hiding from law enforcement. For example, James watched 31 videos of news reports about his subway shooting. He also watched a James Bond chase scene from the movie “No Time to Die” 10 times after the attack. Finally, James turned himself in by calling the NYPD Crime Stoppers hotline on April 13, 2022, the day after the mass shooting.  

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant U.S. Attorneys Sara K. Winik and Ellen H. Sise are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and the Justice Department’s National Security Division’s Counterterrorism Section.

The Defendant:

FRANK JAMES
Age:  64
Milwaukee, Wisconsin

E.D.N.Y. Docket No. 22-CR-214 (WFK)

The former treasurer for a candidate for the U.S. House of Representatives pleaded guilty today to conspiring with a congressional candidate to commit wire fraud, make materially false statements, obstruct the administration of the Federal Election Commission (FEC), and commit aggravated identity theft.

According to court documents, Nancy Marks, 58, of New York, was the treasurer for the principal congressional campaign committee of a candidate for the U.S. House of Representatives during the 2022 election cycle in New York’s Third Congressional District. During this election cycle, Marks and the candidate devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the FEC on behalf of the campaign in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

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

To meet this financial benchmark and to further demonstrate to the national party committee that the congressional candidate’s campaign was financially viable, Marks and the candidate agreed to falsely report to the FEC that at least 10 family members of Marks and the candidate had made contributions to the campaign, when Marks and the candidate both knew that these individuals had not made the reported contributions. In addition, Marks and the candidate agreed to falsely report to the FEC that the congressional candidate had loaned the campaign significant sums of money, including in one instance a $500,000 loan, when, in fact, the congressional candidate had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans.

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

Marks is scheduled to be sentenced on April 12, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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 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. Former Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.

CENTRAL ISLIP, NY – Earlier today, at the federal courthouse in Central Islip, Nancy Marks, the former treasurer for a candidate for the United States House of Representatives, pleaded guilty to conspiring with a congressional candidate to: (a) commit wire fraud; (b) make materially false statements; (c) obstruct the administration of the Federal Election Commission (FEC); and (d) commit aggravated identity theft. Today’s proceeding was held before United States District Judge Joanna Seybert.  When sentenced, Marks faces up to five years in prison, as well as restitution and a fine.

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, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

“With today’s guilty plea, Marks has admitted that she conspired with a congressional candidate to lie to the FEC and, by extension, the public about the financial state of the candidate’s campaign for New York’s Third Congressional District, falsely inflating the campaign’s reported receipts with non-existent contributions and loans,” stated United States Attorney Peace.  “My Office will continue holding accountable those who perpetrate a fraud on the public and the institutions that help maintain transparency in the electoral process.”

Mr. Peace expressed his thanks to the Nassau County District Attorney’s Office for their assistance with the investigation.

“Marks engaged in criminal conduct intended to deceive and defraud the American public. This guilty plea holds her responsible for those various fraudulent schemes and brazen misrepresentations,” stated FBI Assistant Director-in-Charge Smith.   “The FBI will continue to investigate all allegations of campaign finance abuse to ensure openness, fairness, and transparency in our election process.”

 According to court filings and facts presented during the plea proceeding, Marks was the treasurer for the principal congressional campaign committee of a candidate for the United States House of Representatives during the 2022 election cycle in New York’s Third Congressional District (the “Candidate”).  During this election cycle, Marks and the candidate devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the FEC on behalf of the campaign in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

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

To meet that financial benchmark and to further demonstrate to the national party committee that the congressional candidate’s campaign was financially viable, Marks and the Candidate agreed to falsely report to the FEC that at least 10 family members of Marks and the Candidate had made contributions to the campaign, when Marks and the Candidate both knew that these individuals had not made the reported contributions.  In addition, Marks and the Candidate agreed to falsely report to the FEC that the congressional candidate had loaned the campaign significant sums of money, including in one instance a $500,000 loan, when, in fact, the congressional candidate had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans.

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

The government’s case is being handled by the Office’s Public Integrity Section, the 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 Jacob Steiner and John Taddei, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman. Former Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section also provided substantial contributions to the prosecution.

The Defendant:

NANCY MARKS
Age:  58
Shirley, New York

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

Earlier today, in federal court in Central Islip, Eric Nunez pleaded guilty to conspiracy to distribute controlled substances and use of firearms in furtherance of drug trafficking activity. Nunez is the last of 13 defendants to plead guilty before United States District Judge Gary R. Brown in connection with a 22-count superseding indictment with charges involving drug distribution, use of firearms, pharmacy burglaries, and ATM thefts.

The defendants are members and associates of a burglary and drug trafficking organization known as the “Route Boys.”  The Route Boys committed burglaries of pharmacies and convenience stores in Nassau, Suffolk, Brooklyn, Queens, Westchester and Rockland Counties, as well as in New Jersey and Connecticut from 2020 through June 2022, when they were arrested.

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 pleas.

“With today’s guilty plea, and a dozen others previously, the criminal organization known as the “Route Boys” has been routed for their crime spree targeting local businesses throughout the Tri-State area, distributing drugs stolen from pharmacies and using firearms in furtherance of drug trafficking,” stated United States Attorney Peace.  “This Office is working tirelessly with our law enforcement partners to protect local businesses and hold accountable those who endanger our communities with dangerous drugs and guns.”

Mr. Peace thanked the New York City Police Department, Nassau County Police Department, Suffolk County Police Department, Westchester Safe Streets Task Force, Drug Enforcement Administration, Kings County District Attorney’s Office, Queens County District Attorney’s Office, Nassau County District Attorney’s Office, and Suffolk County District Attorney’s Office for their assistance with the investigation. 

As alleged in the superseding indictment and other court filings, the Route Boys began committing burglaries in late 2020, breaking into convenience stores, check-cashing businesses, laundromats and restaurants, stealing primarily cash and tobacco products.  In addition, the organization often stole free-standing ATMs, forcing them open and stealing the cash from inside the machine, netting them tens of thousands of dollars.  They then began targeting small “mom-and-pop” pharmacies throughout the Tri-State area by smashing through windows and stealing controlled substances such as oxycodone and promethazine-codeine cough syrup. They sold these stolen pharmaceuticals, often by advertising on social media immediately after a night of burglaries. 

When sentenced, Carlos Acevedo, Ramon Collado, Naresh Deonarrain, the crew’s founder Jason Liriano, Charlie Maisonet, Cavier Nedrick, Eric Nunez, Jose Rosado, Alberto Santiago, and Jeffrey Vargas each face up to life imprisonment. Jonathan Santiago faces a sentence of up to 20 years’ imprisonment, Luis Cerda faces a sentence of up to 10 years’ imprisonment, and Devin Lopez-Dominguez faces a sentence of up to 5 years’ imprisonment.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Samantha Alessi and Andrew Wenzel are in charge of the prosecution.   

The Defendants:

CARLOS ACEVEDO
Age:  26
Brooklyn, New York

LUIS CERDA
Age:  33
Queens, New York

RAMON COLLADO
Age:  26
Brooklyn, New York

NARESH DEONARRAIN
Age:  27
Brooklyn, New York

JASON LIRIANO
Age:  25
Brooklyn, New York

DEVIN LOPEZ-DOMINGUEZ
Age:  22
Brooklyn, New York

CHARLIE MAISONET
Age:  21
Brooklyn, New York

CAVIER NEDRICK
Age:  26
Hauppauge, New York

ERIC NUNEZ
Age:  26
Brooklyn, New York

JOSE ROSADO
Age:  30
Queens, New York

ALBERTO SANTIAGO
Age:  27
Queens, New York

JONATHAN SANTIAGO
Age:  24
Franklin Square, New York

JEFFREY VARGAS
Age:  23
Brooklyn, New York

E.D.N.Y. Docket No. 21-451 (S-3) (GRB)

A criminal complaint was unsealed today in federal court in Brooklyn charging New York City Department of Correction (DOC) officer James Internicola with federal program fraud.  Internicola was arrested this morning and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Marcia M. Henry.

Internicola has been a correction officer with the DOC since January 1996.  In 2019, he began working at a warehouse at Rikers Island which manages supplies for the jail facility, as well as facility garbage and recycling.  Currently, Internicola is primarily responsible for all recycling operations at Rikers Island. 

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

“As alleged, the defendant defrauded the people of New York City and the New York City Department of Correction by claiming to work significant amounts of hours, including overtime, that he did not actually work,” stated United States Attorney Peace.  “Instead of being at work, the defendant was often at home or even on vacation.  Correction officers who steal tax dollars by fraudulently obtaining compensation should take note of today’s arrest and know that this Office is working with our law enforcement partners to root out corruption at Rikers Island.”

“Internicola’s alleged crime taints every law enforcement officer who takes an oath to uphold the law," stated FBI Assistant Director-in-Charge Smith.  “The FBI maintains a zero-tolerance policy for individuals who commit fraud and steal from law abiding taxpayers.”

“This Correction Officer, as charged, stole over $171,000 from the City by falsely claiming he was at work on Rikers Island, including for overtime hours, when in fact he was vacationing in Aruba and the Jersey Shore, or at home on Staten Island. His false timesheets allegedly included 2,250 hours of time he did not work, a staggering figure.  I thank the U.S. Attorney’s Office for the Eastern District of New York for its commitment to protect City resources – including salaries paid to City workers – from theft and abuse,” stated DOI Commissioner Strauber.  

According to the complaint, Internicola fraudulently obtained more than $171,000 in salary and overtime pay by lying about the hours he worked from at least July 2021 to January 2023.  During this time period, Internicola claimed to work large amounts of overtime nearly every week.  In fact, based on license plate reader data, E-Z pass toll records and cell site location information, Internicola frequently showed up to work more than two hours late and left work several hours early.  In many instances, Internicola claimed to be at work when he actually never showed up to Rikers Island at all, including when he was at his home on Staten Island, visiting the Jersey Shore or vacationing in Aruba.  In total, Internicola claimed to have worked more than 2,250 hours in a period of approximately 18 months and he fraudulently received the equivalent of more than a year of his base salary.

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, the defendant faces up to 10 years’ imprisonment.

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

The Defendant:

JAMES INTERNICOLA
Age:  56
Staten Island, NY

E.D.N.Y. Docket No. 23-MJ-867

The United States yesterday completed the sale of the Sayville Motor Lodge in Sayville, Long Island to a company that is partially owned by a principal of a neighboring business with longstanding ties to the community.  By Order entered on September 11, 2023, United States District Judge Joanna Seybert approved today’s sale of the Sayville Motor Lodge for the sum of $2 million, with the payment out of the sale’s proceeds to prior lenders on the property.  The remaining proceeds are earmarked for forfeiture to the United States government, which will enable the office to seek their use in compensating the victims of the charged conduct through the Department of Justice’s remission procedures.

The Sayville Motor Lodge was a drug-involved property at the center of a sex trafficking conspiracy based on Long Island.  In November 2022, an indictment was unsealed in federal court in Central Islip charging Timothy Bullen, Michael Johnson, Narendarakuma Dadarwala, his wife Shardaben Dadarwala, their son Jigar Dadarwala, Ashokbhai Patel, and Himanshu, Inc. d/b/a Sayville Motor Lodge with sex trafficking conspiracy.  The Dadarwalas, Patel, and Himanshu, Inc. were also charged with managing a drug premises, and Narendarakuma Dadarwala was charged with distribution of proceeds of prostitution and narcotics businesses.  Charges against the defendants are pending.  There is no trial date at the present time.

Breon Peace, United States Attorney for the Eastern District of New York, and Vincent F. DeMarco, United States Marshal for the Eastern District of New York, announced the sale of the property.

“As a result of this sale, the Sayville Motor Lodge is no longer ground zero of an insidious money-maker for prostitution and narcotics trafficking, and a blight on the surrounding community,” stated United States Attorney Peace.  “Instead, the property will be repurposed by its new owner for the benefit of the residents of Long Island.”

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, the Suffolk County Police Department, the Suffolk County District Attorney’s Office, the Suffolk County Sheriff’s Office, the Nassau County District Attorney’s Office, United States Customs and Border Protection, and Homeland Security Investigations for their work on the case.

“The closing of the sale of this property yesterday is a positive step that will increase public safety in this community,” stated United States Marshal DeMarco.

The Underlying Sex Trafficking Scheme

As set forth in court filings, the Dadarwalas owned and operated the Sayville Motor Lodge since approximately 1984.  They resided and worked at the motel.  From 2017 to 2019, Ashokbhai Patel was employed and also lived there.  The Dadarwalas and Patel facilitated the criminal activity at the Sayville Motor Lodge and profited from the prostitution and narcotics activity that routinely took place there.  They were aware that women engaged in prostitution, including at least one minor trafficking victim.  They warned traffickers and women engaged in prostitution when law enforcement was on the premises and observed traffickers inflict physical violence on their victims and customers. 

From approximately 2014 until 2018, Bullen allegedly operated his sex trafficking business out of the Sayville Motor Lodge, in coordination with the Dadarwalas and Patel; and from approximately 2018 until 2020, Johnson allegedly operated his sex trafficking business out of the Sayville Motor Lodge, in coordination with the Dadarwalas and Patel.  Bullen and Johnson trafficked several women out of the motel, including a minor, and routinely subjected the women who worked for them to mental and physical violence.  In furtherance of their respective operations, Bullen and Johnson kept the women who worked for them addicted to drugs and introduced them to prostitution in exchange for drugs.

In addition, from 2014 to the present, the Dadarwalas, Patel, and Himanshu, Inc. profited from the narcotics trafficking that was conducted openly on Sayville Motor Lodge property.  The defendants allowed customers to freely use drugs, including heroin, cocaine and crack cocaine, in plain view and in motel rooms.  Much like the traffickers, drug dealers paid the Sayville defendants for the privilege of selling drugs at the Sayville Motor Lodge. 

The Government Obtains Order To Restrain The Sayville Motor Lodge

In connection with the indictment, the government sought to forfeit the Sayville Motor Lodge.  In addition, to ensure the property was preserved for forfeiture, the United States obtained an order restraining the defendants from transferring, encumbering or operating the Sayville Motor Lodge in violation of law.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Catherine M. Mirabile, Samantha S. Alessi and Brian Morris are in charge of the prosecution.

The Defendants:

TIMOTHY BULLEN, also known as “Trouble,” “T” and “Tiervoni,”
Age: 36
Bay Shore, New York

MICHAEL JOHNSON, also known as “Wise”
Age: 34
Selbyville, Delaware

JIGAR DADARWALA, also known as “Cobra”
Age: 45 
Sayville, New York

NARENDARAKUMA DADARWALA, also known as “Naren,” “Pa” and “Dad”
Age: 77
Sayville, New York

SHARDABEN DADARWALA, also known as “Sharda,” “Ma” and “Mom”
Age: 70
Sayville, New York

ASHOKBHAI PATEL, also known as “BG”
Age: 59
Omaha, Nebraska

HIMANSHU, INC. d/b/a Sayville Motor Lodge

E.D.N.Y. Docket No. 22-CR-494 (JS)

Breon Peace, United States Attorney for the Eastern District of New York, and Naomi D. Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG) announced that the United States has reached a settlement with Genomic Health, Inc. (GHI) to resolve allegations that it violated the False Claims Act in an alleged nationwide scheme to improperly bill Medicare for laboratory tests known as “Oncotype DX®.”  Under the terms of the settlement, GHI will pay $32.5 million for losses caused by GHI’s submission of false claims to the Medicare Program.

“This settlement rightly requires the payment of double damages caused by delayed tests for cancer patients for no reason other than to circumvent a Medicare requirement and allow improper payment to GHI,” stated United States Attorney Peace.  “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for those suffering from the ravages of cancer.” 

Mr. Peace expressed his gratitude for the support of the United States Department of Health and Human Services for their assistance in investigating these important claims.

“Health care providers that unnecessarily delay services to evade Medicare requirements put their own profits over the well-being of vulnerable patients,” stated HHS-OIG Special Agent-in-Charge Gruchacz. “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise patient well-being and the integrity of our federal health care programs.” 

GHI is a Delaware corporation headquartered in Redwood City, California.  GHI is a provider of genomic-based clinical diagnostic tests.  Its principal test, Oncotype DX®, has been used for patients diagnosed with breast, colon and prostate cancer.  GHI was acquired by Exact Sciences Corporation (“Exact”) in November 2019 and is a wholly-owned subsidiary of Exact.

The United States contends that GHI perpetrated a scheme to evade Medicare regulations when submitting claims to the Medicare Program for its test to circumvent Medicare’s 14-Day Rule (which establishes which entity may bill Medicare for certain laboratory services).  During the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for certain tests if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay either in an outpatient or inpatient setting. Such claims were required to be submitted by the hospital.  However, if the test was performed more than 14 days after discharge, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test.  The United States contends that GHI perpetrated its scheme in four ways:

• GHI sought direct reimbursement from the Medicare Program for claims on behalf of Medicare beneficiaries, when Oncotype DX® tests were ordered and submitted for testing within 14 days after an inpatient discharge.  This caused the Medicare Program to incur additional costs beyond what it would have otherwise paid.
• GHI sought direct reimbursement from the Medicare Program for Oncotype DX® tests ordered within 14 days of a beneficiary’s out-patient procedure.
• GHI conspired with and encouraged hospitals and physicians to cancel and reorder Oncotype DX® tests and failed to discourage providers who ordered tests within 14 days from canceling and reordering the tests after the 14-day time period had elapsed.
• GHI failed to send timely invoices to hospitals for laboratory services that fell under the 14-Day Rule and instead wrote off the unpaid fees for laboratory services, thereby violating the Anti-Kickback Statute. 

The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against GHI.  Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant.  The relator share from the proceeds of the federal settlement in this case will be $5,687,500.  The qui tam cases are captioned United States ex rel. Caughron v. Genomic Health, Inc., Civil Action No. 16-CV-4038 (E.D.N.Y) and United States ex rel. Doe v. Genomic Health, Inc., et al., Civil Action No. 17-CV-4460 (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 former Assistant U.S. Attorney Deborah B. Zwany and Assistant U.S. Attorney Anjna Kapoor with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell, Paralegal Specialist Loan Ngyuen, and Sanjay Bhambhani, Senior Trial Counsel, Fraud Section, Commercial Litigation Branch.  The Office of Inspector General at the Department of Health and Human Services assisted in the investigation of these cases. 

Genomic Health, Inc. (GHI), a Delaware corporation headquartered in Redwood City, California, has agreed to pay $32.5 million to resolve allegations that it violated the False Claims Act by engaging in a nationwide scheme to improperly bill Medicare for certain laboratory tests used to diagnose and treat cancer patients. GHI is a wholly owned subsidiary of Exact Sciences Corporation, which acquired GHI in November 2019.

GHI provides genomic-based clinical diagnostic tests. Its principal test, Oncotype DX®, is used for patients diagnosed with breast, colon and prostate cancer. The United States alleged that GHI perpetrated a scheme to evade Medicare’s 14-Day Rule, which governs the billing of genomic laboratory tests like Oncotype DX®.

During some or all of the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for covered tests if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay in an inpatient or outpatient setting. For inpatient beneficiaries, such tests were covered under a lump-sum payment hospitals receive from the Medicare Program called the Diagnosis-Related Group (DRG) payment. For outpatient beneficiaries, Medicare’s 14-day Rule required (for most of the relevant time) tests ordered within 14 days of the patient’s discharge to be billed to the hospital but the hospital could then seek reimbursement from Medicare. However, if the test was performed more than 14 days after discharge from a hospital stay either in an inpatient or outpatient setting, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test. The United States contends that GHI improperly manipulated the 14-Day Rule in four ways:

• GHI sought direct reimbursement from the Medicare Program for claims on behalf of Medicare beneficiaries, when Oncotype DX® tests were ordered and submitted for testing within 14 days after an inpatient discharge. By submitting separate claims for these tests, GHI received direct payment for tests that should have been covered as part of the DRG payment to the hospital.
• GHI sought direct reimbursement from the Medicare Program for Oncotype DX® tests ordered within 14 days of a beneficiary’s outpatient procedure. By submitting separate claims for these tests, GHI received direct payment from Medicare for tests that should have been billed to the hospital.
• GHI conspired with and encouraged hospitals and physicians to cancel and reorder Oncotype DX® tests and failed to discourage providers who ordered tests within 14 days from canceling and reordering the tests after the 14-day time period had elapsed.
• GHI failed to send timely invoices to hospitals for laboratory services that fell under the 14 Day Rule and instead wrote off the unpaid fees for laboratory services, thereby violating the Anti-Kickback Statute.

“Participants in federal health care programs must comply with applicable rules when providing and billing for their services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will use the tools at its disposal to prevent companies from manipulating these programs for their own monetary benefit.”

“This settlement rightly requires the payment of double damages caused by delayed tests for cancer patients for no reason other than to circumvent a Medicare requirement and allow improper payment to GHI,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for those suffering from the ravages of cancer.”

“Health care providers that unnecessarily delay services to evade Medicare requirements put their own profits over the well-being of vulnerable patients,” said Special Agent in Charge Naomi D. Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise patient well-being and the integrity of our federal health care programs.”

The civil settlement includes the resolution of allegations brought in two separate actions filed against GHI under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, private parties can file an action on behalf of the United States and receive a portion of any recovery. The relator’s share from the proceeds of the settlement in this case will be $5,687,500. The qui tam cases are captioned United States ex rel. Caughron v. Genomic Health, Inc., Civil Action No. 16-CV-4038 (EDNY) and United States ex rel. Doe v. Genomic Health, Inc., et al., Civil Action No. 17-CV-4460 (EDNY).

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).

The cases were handled by former Assistant U.S. Attorney Deborah B. Zwany and Assistant U.S. Attorney Anjna Kapoor for the Eastern District of New York and monitored by Senior Trial Counsel Sanjay M. Bhambhani of the Civil Division’s Commercial Litigation Branch. The HHS-OIG and the FBI assisted in the investigation of these cases.

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

Earlier today, in federal court in Brooklyn, Timothy Martinez was sentenced by United States District Judge Frederic Block to 15 years in prison for two counts of sexual exploitation and attempted sexual exploitation of a minor, one count of attempted receipt of child pornography and one count of possession of child pornography.  Martinez was employed as a police officer by the New York City Police Department and immediately prior to his arrest, was a sergeant in the U.S. Army Reserves.  Martinez was convicted by a federal jury in May 2023 following a one-week trial.

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

“The defendant, a former New York City police officer and an Army reservist, was a predator hiding in plain sight, who preyed on vulnerable victims he believed had been sexually abused,” stated United States Attorney Peace.  “For these unconscionable, disgraceful crimes, today’s substantial jail sentence is not only well-deserved, but necessary to protect the community.”

“As a police officer, Timothy Martinez pledged to keep the people of New York City safe from predators, but instead became one himself. Today, justice is served as he finds himself behind bars," stated HSI New York Special Agent-in-Charge Arvelo. “HSI New York is proud to have had a hand in taking this dangerous man off the streets.”

“Today’s sentence sends the unequivocal message that no one is above the law,” stated NYPD Commissioner Caban.  “Mr. Martinez’ reprehensible behavior violated his sworn oath as a police officer, breached the public trust, and tarnished the shield he once wore. The NYPD and our law enforcement partners remain steadfast in our commitment to identify and hold accountable all such criminal predators. I thank HSI and the U.S. Attorney for the Eastern District of New York for their important work on this case.”

Between October 2016 to March 2017, Martinez engaged in live video sex chats with Jane Doe-1, who was then 16-years old.  Additionally, between September 3, 2012, and November 2016, Martinez engaged in live video sex chats with Jane Doe-2, starting when she was 13-years old.  During some of those video chats, he convinced both Jane Doe-1 and Jane Doe-2 to show him their nude bodies and perform sexual acts.  Martinez also attempted to purchase child pornography from an individual who he believed was a 14-year-old girl.  Finally, Martinez possessed hundreds of still images and several videos of child pornography, including images and videos of known victims of child abuse. 

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 and the Department of Justice Child Exploitation and Obscenity Section, 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 www.projectsafechildhood.gov

Assistant United States Attorneys William P. Campos and Chand W. Edwards-Balfour are in charge of the prosecution with the assistance of Paralegal Specialist Allison Henry and the Victim Witness Team including Coordinator Lisa Foster, Lillian Tejada and Gladian Rivera.

The Defendant:

TIMOTHY MARTINEZ
Age:  43
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-98 (S-2) (FB)

BROOKLYN, NY — The United States, on behalf of the U.S. Environmental Protection Agency (EPA), filed a civil complaint today in federal court in Brooklyn against eBay Inc. (eBay) for unlawfully selling and distributing hundreds of thousands of products in violation of the Clean Air Act (CAA); the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Toxic Substances Control Act (TSCA).  The complaint was filed in federal court in Brooklyn.

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, and David M. Uhlmann, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance, announced the filing.

“eBay’s sale of emission control defeat devices, pesticides, and other unsafe products poses unacceptable risks to our communities disproportionately impacted by environmental and health hazards,” stated United States Attorney Peace.  “Together with our partners, this Office will vigorously enforce federal law against those whose conduct endangers public health and the environment.”

“Laws prohibiting the sale of products that harm human health and the environment apply to e-commerce retailers just as they do to brick-and-mortar stores,” stated Assistant Attorney General Kim.  “The Department of Justice will pursue violators of these laws regardless of their place in the sale or distribution chain.” 

“Our nation’s environmental laws protect public health and the environment by prohibiting the unlawful sale of defeat devices; unregistered, misbranded and restricted use pesticides; and unsafe products containing toxic chemicals such as methylene chloride,” stated EPA Assistant Administrator Uhlmann. “The complaint filed today demonstrates that EPA will hold online retailers responsible for the unlawful sale of products on their websites that can harm consumers and the environment.”

The Clean Air Act prohibits selling, offering for sale, or causing the sale or offer of aftermarket parts that defeat motor vehicle emission controls (commonly known as “aftermarket defeat devices”).  Today’s complaint alleges that eBay sold, offered for sale or caused the sale of more than 343,000 such devices.  By enabling vehicle emission controls to be evaded, aftermarket defeat devices contribute to air pollution and harm public health.  They also impede efforts by the EPA, states, tribes, and local agencies to plan for and meet air quality standards.  For example, the use of defeat devices significantly increases emissions of particulate matter, carbon monoxide, nitrogen oxides and nonmethane hydrocarbons.

FIFRA prohibits the unlawful distribution or sale of unregistered, misbranded, and restricted use pesticides, and authorizes EPA to issue Stop Sale, Use, or Removal Orders to anyone with ownership, custody or control of such pesticides being unlawfully sold or distributed.  Today’s complaint alleges that eBay unlawfully distributed or sold at least 23,000 such pesticides, and that some of those sales were in direct violation of a stop sale order issued to eBay in 2020 and amended in 2021. Examples of the pesticides at issue include a high toxicity insecticide banned in the U.S., a restricted use pesticide that only certified applicators may apply, and a product falsely claiming to protect users against the SARS-CoV-2 virus.

TSCA’s Methylene Chloride Rule prohibits retailers from distributing in commerce products containing methylene chloride for paint and coating removal to prevent unreasonable risks, including the risk of death, presented by these types of products. The complaint alleges that eBay has distributed over 5,600 items in violation of TSCA’s Methylene Chloride Rule.

The complaint seeks a Court order that eBay’s business practices as an e-commerce retailer violated the CAA, FIFRA, and TSCA and injunctive relief to enjoin eBay from further violations of the CAA, FIFRA, and TSCA, as well as civil penalties for each violation of the CAA.

The lawsuit is being handled by Assistant United States Attorneys Michael Blume and Paulina Stamatelos of the United States Attorney’s Office for the Eastern District of New York, James Freeman, Senior Attorney, Environmental Enforcement Section, working with Caitlin Meisenbach, Lindsay Simmons, and Adrienne Trivedi from EPA’s Office of Enforcement and Compliance Assurance.

In June 2021, the United States Attorney’s Office for the Eastern District of New York created an Environmental Justice Team within the Office’s Civil Division. The focus of the Environmental Justice Team is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards. 

Earlier today in federal court in Central Islip, an 11-count indictment was unsealed charging Lamont Young, also known as “Paper,” with sex trafficking by force, sex trafficking of a minor and interstate prostitution.    Young was arrested today on Long Island and was arraigned this afternoon before United States Magistrate Judge James M. Wicks.  Young was ordered detained pending trial.

Earlier this week, on September 26, 2023, a six-count indictment was also unsealed in federal court in Central Islip charging Michail McKen, also known as “Kells,” with sex trafficking by force and interstate prostitution.  McKen was arrested this morning in Arizona.  He will make his initial appearance in federal court in Phoenix later this afternoon.  

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 Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the indictments.

“As alleged, Young and McKen each ran a national sex trafficking business, including on Long Island, forcing vulnerable females into commercial sex work for the defendants’ financial benefit,” stated United States Attorney Peace.  “These indictments demonstrate that the United States Attorney’s Office is committed to working with both local and federal partners to ensure that sex trafficking on Long Island is not tolerated, and those who engage in such violent, cruel crimes are held accountable.”

Mr. Peace also expressed his thanks to the New York City Police Department for their assistance with the Young case, and to the Greater Phoenix Human Trafficking Task Force and the FBI Phoenix Violent Crimes Task Force for their assistance with the McKen arrest.

“The commercial sexual exploitation of women is a heinous act that causes long-lasting harm to victims and their families,” stated FBI Assistant Director-in-Charge Smith. “Combating sex trafficking and violence in our communities is one of the top priorities for the FBI and our law enforcement partners across New York.”

“This pair preyed on and recruited vulnerable young women for years using violence and other measures to force them to engage in sex acts for their own financial gain,” stated SCPD Commissioner Harrison.  “The Suffolk County Police Department remains committed to working with our law enforcement partners throughout the nation to bring justice to victims of human trafficking.”  

As set forth in Young’s indictment and other court filings, between 2011 and at least 2021, Young recruited his victims online, sold them a dream of stability and financial wellbeing, and then once they accepted his invitation to work for him, he used violence, fraud and coercion to cause them to engage in commercial sex acts for his benefit.  At least one of his victims was a minor, who engaged in numerous sex acts on Long Island in 2016 and 2017 at Young’s direction.  Young referred to the women that worked for him as a “program” or a “movement,” had numerous rules and inflicted violence on the victims when he perceived they disobeyed him.  Young also had some of his victims brand themselves with tattoos, including the letter “P” for his street name “Paper,” which is a reference to cash. 

As alleged in McKen’s indictment and other court filings, between 2019 and 2022, McKen used violence and threats of violence to compel multiple women to engage in commercial sex acts for his financial benefit.  McKen often recruited sex workers in Virginia, and then caused them to travel to Long Island, where McKen is originally from, to engage in commercial sex acts.  McKen sent his victims all over the country to work, including Massachusetts, Pennsylvania, Arizona, Kentucky, Alabama and Oregon.  Of the individuals that he trafficked, McKen separated them into two tiers – high-end, experienced females, for whose services he could charge large sums of money, and lower-end, less competitive females, who often struggled with drug addiction, and for whose services McKen would charge less.  McKen maintained leverage over those suffering with drug addiction by forcing them to engage in commercial sex acts in exchange for a rationed supply of narcotics that would prevent them from going through complete withdrawal.  At the time of his arrest, law enforcement recovered a loaded Smith & Wesson 9mm handgun from the Mercedes Benz vehicle he was driving.

The charges in the Young and McKen indictments are allegations and both defendants are presumed innocent unless and until proven guilty.  If convicted, they face a mandatory minimum sentence of 15 years in prison and up to life in prison.

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

The government’s cases are being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorney Megan Farrell is in charge of both prosecutions.

The Defendants:

LAMONT YOUNG (also known as “Paper”)
Age:  41
Hauppauge, Central Islip and Patchogue, New York

E.D.N.Y. Docket No. 23-CR-382(JMA)

MICHAIL MCKEN (also known as “Kells” and “Cavalli”)
Age:  35
Baldwin, New York and Phoenix, Arizona

E.D.N.Y. Docket No. 23-CR-377(JMA)

Earlier today in federal court in Brooklyn, Nicholas Welker, also known as “King ov Wrath,” pleaded guilty to conspiring to make interstate threats.  Welker, the leader of Feuerkrieg Division (FKD), an international racially or ethnically motivated violent extremist group (RMVE), posted death threats against a Brooklyn-based journalist (the “Journalist”) to cause him/her to stop reporting on the extremist group.  The proceeding was held before United States District Judge Pamela K. Chen.  When sentenced, Welker faces up to five 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. 

“Welker and his hate group threatened a journalist to prevent reporting on the white supremacist group that Welker led.  Today’s guilty plea represents a victory for freedom of the press,” stated United States Attorney Peace.  “This prosecution demonstrates our commitment to ensuring that those who espouse hateful, extremist ideologies, like Welker, cannot silence First Amendment-protected activity through threats of violence and will be met with the full force of the law.”

Mr. Peace praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.  Mr. Peace also thanked the Estonian Internal Security Service and Prosecutor’s Office for their valuable support.

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

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ellen H. Sise and Andrew Reich are in charge of the prosecution with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.

The Defendant:

NICHOLAS WELKER (also known as “King ov Wrath”)
Age: 32
San Jose, California

E.D.N.Y. Docket No. 23-CR-141 (PKC)

The Justice Department filed a complaint against eBay Inc. today for unlawfully selling and distributing hundreds of thousands of products in violation of the Clean Air Act (CAA); the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Toxic Substances Control Act (TSCA). The complaint was filed on behalf of the U.S. Environmental Protection Agency (EPA) in federal court in Brooklyn.

The complaint alleges that eBay sold, offered for sale or caused the sale of more than 343,000 aftermarket defeat devices, which defeat motor vehicle emission controls, a violation of the CAA. Aftermarket defeat devices significantly increase pollution emissions – including carbon monoxide, nitrogen oxides, particulate matter and nonmethane hydrocarbons – that harm public health and impede efforts by the EPA, states, Tribes and local agencies to plan for and attain air quality standards.

The complaint also alleges that eBay has violated FIFRA by unlawfully distributing or selling at least 23,000 unregistered, misbranded or restricted-use pesticide products, even in violation of a stop sale order EPA issued to eBay in 2020 and amended in 2021. Examples include a high toxicity insecticide banned in the United States, restricted use pesticides that only certified applicators may apply and products fraudulently claiming to protect users against the SARS-CoV-2 virus.

Finally, the complaint alleges that eBay has distributed over 5,600 items in violation of the TSCA Methylene Chloride Rule. The rule prohibits retailers from distributing in commerce products that contain methylene chloride for paint and coating removal to prevent unreasonable risks, including death, presented by these types of products.

“Laws that prohibit selling products that can severely harm human health and the environment apply to e-commerce retailers like eBay just as they do to brick-and-mortar stores,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We are committed to preventing the unlawful sale and distribution of emissions-defeating devices and dangerous chemicals that, if used improperly, can lead to dire consequences for individuals and communities.”

“Our nation’s environmental laws protect public health and the environment by prohibiting the unlawful sale of defeat devices; unregistered, misbranded and restricted use pesticides; and unsafe products containing toxic chemicals such as methylene chloride,” said Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “The complaint filed today demonstrates that EPA will hold online retailers responsible for the unlawful sale of products on their websites that can harm consumers and the environment.”

“eBay’s sale of emission control defeat devices, pesticides and other unsafe products poses unacceptable risks to our communities disproportionately impacted by environmental and health hazards,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Together with our partners, this office will vigorously enforce federal law against those whose conduct endangers public health and the environment.”

The complaint seeks a court order that eBay’s business practices as an e-commerce retailer violated the CAA, FIFRA and TSCA and requests injunctive relief to enjoin eBay from further violations of these laws, as well as civil penalties for CAA violations.

The lawsuit, filed in U.S. District Court for the Eastern District of New York, is being handled by Senior Attorney James Freeman for ENRD’s Environmental Enforcement Section and by Assistant U.S. Attorneys Michael Blume and Paulina Stamatelos for the Eastern District of New York.

An indictment was unsealed today in federal court in Brooklyn charging Abel Mora, a member of the Trinitarios, a violent street gang, with being a convicted felon in possession of ammunition related to two separate shootings Mora allegedly committed in Queens and Brooklyn on August 13, 2023.  Mora was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy. 

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 charges and arrest.

“As alleged, this defendant was a one-man crime wave, who engaged in a broad daylight gunfight in Queens, then robbed and shot someone in Brooklyn later that same day,” stated United States Attorney Peace.  “This Office will continue working tirelessly to dismantle gangs and reduce gun violence by prosecuting violent offenders who put the safety of communities in our district at extreme risk.”

Mr. Peace expressed his appreciation to the FBI/NYPD Metro Safe Streets Task Force and the NYPD’s 75th and 101st Precincts for their outstanding work and assistance in this investigation and prosecution.

“Gang members like Mora continue to plague our city with his blatant disregard for the safety of our community and his reckless indifference to human life.  It is only through our local and federal partnerships that we are able to put a stop to these violent repeat offenders,” stated FBI Assistant Director-in-Charge Smith.  “This case is another example of how the FBI and our law enforcement partners are dedicated to keeping the streets of New York City Safe for everyone in our community.”

“Today’s indictment is a result of the tight focus the NYPD and our law enforcement partners maintain to identify and remove from the streets the individuals who are most significantly driving crime and violence in New York City neighborhoods,” stated NYPD Commissioner Caban.  “I thank our colleagues at the FBI and the office of the U.S. Attorney for the Eastern District, in particular, for their unwavering dedication to our shared public safety mission.”

As alleged in the indictment and other court filings, the charges stem from two shootings allegedly committed by the defendant on August 13, 2023 within a span of nine hours.  At approximately 1:05 p.m. in Far Rockaway, Queens, Mora exchanged gunfire with individuals inside of a vehicle as they chased each other throughout a residential neighborhood in the vicinity of New Haven Avenue and Beach 13th Street.  The shooting, which was captured on video, arose from a fight that broke out between an occupant of the vehicle and Mora’s associate.  Residents of the neighborhood, including children, ran for cover to escape harm.

The second shooting occurred at approximately 9:18 p.m. outside of 3441 Fulton Street in East New York, Brooklyn.  Mora allegedly shot a victim and robbed him of his backpack.  Video surveillance capturing this incident showed that Mora committed this violent crime outside of a busy convenience store with customers and children present inside and outside the location.  Immediately following the shooting, Mora fled to Etna Street with the stolen property, where he was picked up by an associate on a scooter.  The victim survived.  A total of ten 9mm Luger cartridges were possessed by Mora in the two shootings.

This morning, law enforcement recovered a loaded 9mm firearm with a 17-round magazine inside Mora’s residence. 

At the time of the shootings, Mora had a prior felony conviction for assault.

The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Mora faces up to 15 years in prison on each of the two counts.

This case was brought as 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. Attorneys’ 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 government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Emily J. Dean and Dana Rehnquist are in charge of the prosecution.

The Defendant:

ABEL MORA
Age: 22
Far Rockaway, Queens

E.D.N.Y. Docket No. 23-CR-383 (FB)

Earlier today, in federal court in Central Islip, Jeramya Sloan, also known as “JuJu,” was sentenced by United States District Judge Joanna Seybert to 46 months’ imprisonment for illegally selling eight firearms – including several privately made firearms, or “ghost guns” – in Suffolk County.  Sloan pleaded guilty to firearms trafficking in June 2022. 

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

“This case reflects the efforts of this Office, together with our law enforcement partners, to reduce gun violence in our district.  We will arrest and prosecute those who traffic firearms and contribute to the proliferation of untraceable ghost guns, which threaten public safety,” stated United States Attorney Peace.  “The recovery of each and every gun sold by Sloan potentially prevented death or serious injury.”

Mr. Peace also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Division (ATF), the Suffolk County Police Department, and the United States Postal Inspection Service, for their work in this case. 

According to court filings and statements made during court proceedings, from approximately December 2019 through January 2021, Sloan sold eight firearms to someone he believed was a member of the Bloods street gang, at locations throughout Suffolk County.  Specifically, Sloan sold: (1) a .45 caliber Ruger P97DC semi-automatic pistol; (2) a .22 caliber High Standard MFG Corp revolver; (3) a .22 caliber Smith & Wesson M&P semi-automatic pistol; (4) a .40 caliber Smith & Wesson SW40VE semi-automatic pistol, with an obliterated serial number; (5) a 9-millimeter Polymer80 type semi-automatic pistol, bearing no make, model or serial number (also known as a “ghost gun”); (6) a 9-millimeter FMK G2 semi-automatic pistol; (7) a .45 caliber Polymer80 type semi-automatic pistol “ghost gun,” with a loaded magazine; and (8) a 9-millimeter Polymer80 type semi-automatic pistol “ghost gun,” along with a MasterPiece Arms MAC 10 9-millimeter high-capacity magazine.  The .45 caliber Ruger was traced to another purchaser, who originally bought the firearm in approximately March 2005 from a store in Columbia, South Carolina.  The .22 caliber Smith & Wesson was traced to another purchaser, who originally bought the firearm in approximately May 2012 from a store in Oneonta, New York.  The other firearms could not be traced.  At the time of Sloan’s arrest on November 9, 2021, ammunition was recovered from his residence in Selden. 

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 Long Island Criminal Division.  Assistant United States Attorney Justina L. Geraci is in charge of the prosecution.

The Defendant:

JERAMYA SLOAN (also known as “JuJu”)
Age:  22
East Patchogue and Selden, New York

E.D.N.Y. Docket No. 21-CR-559 (JS)

Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with Queens-based physician Arun Arora. The settlement agreement addresses allegations that Dr. Arora violated the federal False Claims Act by billing Medicare for critical care services to residents of nursing homes when, in fact, he provided only routine care.

“Our Medicare program, which provides health care services to the elderly, works only if its funds are expended properly,” stated United States Attorney Breon Peace. “When health care providers overbill the program, Medicare cannot ensure that services are going to the people who need them most.”

Mr. Peace thanked the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation for its work on this case.

Dr. Arora provided care to residents of nursing homes. That care was, for the most part, routine care, such as regular medical checkups. The Government contends that, rather than billing for his services as routine care, Dr. Arora billed Medicare for critical care services. Critical care services involve imminent life-threatening deterioration of the patient’s condition.  Medicare reimburses health care providers at a higher rate for critical care services than for routine care.  By billing for critical care services when he provided only routine care, as the Government contends, Dr. Arora received extra payment for care that he did not provide.

Under the terms of the agreement with the United States, Dr. Arora will pay $1.3 million for conduct that took place in the years 2019 to 2023. In addition to the payment to resolve the government’s fraud claims, Dr. Arora has entered into a separate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. The Integrity Agreement imposes a number of obligations on Dr. Arora, all of which are meant to ensure that he complies with Medicare rules and regulations going forward.

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

The case is being handled by Assistant U.S. Attorney Michael Blume of the Office’s Civil Division.

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Rashawn Russell pleaded guilty to participating in a scheme to defraud clients of the R3 Crypto Fund, a purported cryptocurrency investment fund operated by Russell.  Russell also pleaded guilty for his role in a separate identity-theft scheme in which he fraudulently obtained credit cards and other access devices in the names of third parties.  Today’s plea took place before United States Magistrate Judge Sanket J. Bulsara. When sentenced, Russell faces up to 30 years in prison.  As part of his plea agreement, Russell will be required to pay restitution in the amount of more than $1.5 million.

Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Eric Shen, Inspector-in-Charge, U.S. Postal Inspection Service, Criminal Investigations Group (USPIS), announced the guilty plea.

“Russell leveraged investor interest in cryptocurrency markets to perpetrate a scheme to defraud clients who trusted him,” stated United States Attorney Breon Peace.  “The swift conviction in this case underscores this Office’s commitment to holding bad actors in the digital asset markets accountable.”

“The Postal Inspection Service proudly protects Americans from ever-evolving threats of fraud,” stated USPIS Inspector-in-Charge Shen.  “This case showcases our dedication to bring to justice those who violate their fiduciary duty to their clients.”

According to court filings and facts presented during the plea hearing, between November 2020 and August 2022, Russell, a former investment banker and registered broker with the Financial Industry Regulatory Authority, engaged in a scheme to defraud investors into his R3 Crypto Fund by falsely promising that, among other things, he would use their funds to make cryptocurrency investments that would return large, and sometimes guaranteed, returns.  In truth, much of the investors’ assets were misappropriated by Russell and used for his personal benefit, to gamble, and to repay earlier investors.   Through Russell’s scheme, at least 29 investors lost at least $1.5 million. 

In a separate fraud scheme, between September 2021 and June 2023, Russell fraudulently obtained more than fifteen credit cards and other access devices in the names of third parties.  Russell obtained these devices with the intent to use them to complete unauthorized transactions.

The government’s case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Department of Justice, Criminal Division, Fraud Section.  Assistant United States Attorney Drew Rolle, Trial Attorney Kyle Crawford, and Assistant Chief Scott Armstrong are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.

The Defendant:

RASHAWN RUSSELL
Age:  27
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-152

Earlier today, at the federal courthouse in Central Islip, Lorenzo Arana was sentenced by United States District Judge Gary R. Brown to 210 months in prison for distribution of child pornography in connection with his circulation on social media of sexually explicit videos of a 12-year-old girl.  Arana pleaded guilty to the charge in November 2022.

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

“Today’s sentence brings justice to a vulnerable young girl and many others like her throughout the country who were terrorized and harmed by the defendant’s weaponization of social media to target them for undeserved cruelty, vulgarity, and abuse,” stated United States Attorney Peace.  “It will always be a priority of this Office to protect children and hold online predators accountable for their actions.  My message to parents and caregivers is please talk to your children about the dangers of communicating online with strangers who may exploit them and to seek help from a trusted adult if they are being threatened.”

“It is particularly evil for a person to prey upon young people and exploit their innocence, but to do so to the point where a victim sees no reason to live is beyond reprehensible,” stated HSI New York Special Agent-in-Charge Arvelo.  “The defendant, Lorenzo Arana, got what he deserved today for his actions. There is no place in our society for such heinous behavior, and HSI New York is committed to protecting our children in every way possible.”

Arana, who also used the online alias “Lorenzo Blake,” has a lengthy and well-documented history of using social media—where he amassed thousands of followers, many of whom were minors—to target underage girls for harassment and abuse.  Arana leveraged his large following across social media platforms, including Facebook, Instagram, Tik Tok, Snapchat and YouTube, to bully, harass and exploit underage girls, including through blackmail with sexually explicit material he solicited from them, threatening to publicly distribute the material—along with other sensitive information, such as the victims’ cellphone numbers—for a range of conduct Arana deemed unacceptable, from refusing to send additional pornographic materials to simply declining his phone calls. 

Arana’s conviction in this case related specifically to his online harassment and abuse in September 2020 of a 12-year-old described in the indictment as Jane Doe #2.  After soliciting sexually explicit material from “Jane Doe #2,” Arana intentionally distributed those videos to her friends and classmates on social media (including other minors), causing Jane Doe #2 to attempt suicide. Arana posted about his conduct on social media, acknowledging that he distributed the compromising material to “expose” Jane Doe #2 for refusing to respond to his calls.  Law enforcement recovered a text message on Jane Doe #2’s cellphone, in which Arana stated “kill ur . . . self.”  Upon learning that Jane Doe #2 was contemplating suicide, Arana responded, “I don’t care . . . she deserves it.”  Local police in another state received an emergency call, requesting a welfare check of Jane Doe #2. Responding officers found Jane Doe #1 unconscious in her bed, along with loose pills, two pill bottles, a firearm, and a suicide note. The victim survived.

This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the 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 www.projectsafechildhood.gov.

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

The Defendant:

LORENZO ARANA (also known as “Lorenzo Blake”)
Age:   22
Island Park, New York

E.D.N.Y. Docket No. 21-CR-19 (GRB)

Earlier today, in federal court in Brooklyn, Somorie Moses, also known as “Somorie Barfield,” “Sugar Bear,” “Bear” and “Daddy,” pleaded guilty in the federal courthouse in Brooklyn to sex trafficking eight women and to the 2017 murder of one of the women, Leondra Foster.  The plea proceeding took place before United States District Judge Carol Bagley Amon.  When sentenced, Moses faces a mandatory term of imprisonment of 15 years, and up to life in prison.  This prosecution is the first use of the federal statute criminalizing murder in the course of sex trafficking. 

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 guilty plea.

“With today’s guilty plea to every count in the indictment, Moses is held fully responsible for preying on women and girls, forcing them to become prostitutes, and then brutally murdering and dismembering one of his many victims,” stated United States Attorney Peace.  “While the defendant’s total admission of guilt cannot undo the terrible harm he has caused, we hope it will bring a measure of closure to his victims who suffered the defendant’s extreme cruelty and brutality, and to the family of Ms. Foster.”

Mr. Peace also expressed his appreciation to the Kings County District Attorney’s Office for their assistance.

“Moses exploited vulnerable women and robbed them of their freedom and dignity for his own personal gain, and even brutally robbed one woman of her life”, stated FBI Assistant Director-in-Charge Smith.  “Stopping human trafficking remains a top priority of the FBI and our partners, and we hope that this plea will result in some solace for the survivors to know that Moses will pay for his crimes and no longer be able to harm anyone else.”

“Today’s guilty plea brings finality to a case of reprehensible sexual exploitation, brutal assault, and murder,” stated NYPD Commissioner Caban. “I commend and thank our dedicated NYPD detectives, along with our partners in the FBI and the office of the U.S. Attorney for the Eastern District of New York, for their commitment to investigating and prosecuting this important case.”

According to court filings and admissions made in court, since at least 2003, Moses forced women and girls, including minors, into prostitution for his benefit using violence, threats of violence, and psychological manipulation. Moses used false promises of love and marriage to initiate sexual relationships with his victims before demanding that they work as prostitutes and turn over the money they earned to him.  Moses pressured many of his victims into tattooing his first name, “Somorie,” on their bodies. 

Moses used brutal beatings, rape, torture, and threats to coerce his victims to work in prostitution in Brooklyn and Queens.  When one victim, identified at today’s guilty plea proceeding as Jane Doe 1, refused to engage in prostitution, Moses used a taser against her until she complied.  Another victim, identified as Jane Doe 2, was slashed on her arms and back with a razor by Moses who also beat her with a belt before pouring lemon juice on her wounds, leaving her permanently scarred.  When a victim identified as Jane Doe 7 told Moses that she did not want to work as a prostitute, he put a shotgun in her mouth and threatened to kill her and her child.

On January 13, 2017, Moses murdered Leondra Foster, one of his sex trafficking victims.  That same day, using a knife and a saw, Moses dismembered Foster’s body inside their shared apartment in Brooklyn.  Four days later, on the morning of January 17, 2017, Moses transported Foster’s torso and limbs to the Bronx for disposal at a sanitation site.  Foster’s head, hands and feet — including a foot with the name “Somorie” tattooed on it — were subsequently recovered by law enforcement inside the deep freezer of Moses’s apartment. 

The government’s case is being handled by the Office’s Civil Rights Section.  Assistant United States Attorneys Jonathan Siegel and Tanya Hajjar are in charge of the prosecution, with assistance from paralegal specialist Anna November.

The Defendant:

SOMORIE MOSES (also known as “Somorie Barfield,” “Sugar Bear,” “Bear” and “Daddy”)
Age:  47
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR-232 (CBA)

A 31-count superseding indictment was unsealed today in federal court in Brooklyn adding three defendants, Yuan Yuan Chen, also known as “Xiao Pang,” Yichu Chen and Johnnie Kim, as well as 10 additional assaults in-aid-of racketeering to the pending charges against co-defendants Rong Rong Xu, also known as “Eleanor,” Siyang Chen, Siyu Chen, also known as “Ban Ban,” Carlos Cury, also known as “Red,” Bo Jiang, Meizhen Song, also known as “Die Die,” and Jilong Yu.  The charges relate to the defendants’ alleged participation in a Queens-based criminal organization that engaged in sex trafficking, beatings, and robberies of dozens of women across the United States.  The three newly indicted defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Peggy Kuo. 

Yuan Yuan Chen (“Yuan Yuan”) is charged with racketeering conspiracy, sex trafficking conspiracy, interstate prostitution conspiracy, and assault in-aid-of racketeering, among other crimes, and Yichu Chen (“Yichu”) and Johnnie Kim are variously charged with Hobbs Act robbery and conspiracy to commit Hobbs Act robbery.  The superseding indictment also adds charges against Cury, Xu, Siyang Chen, and Jiang. 

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 superseding indictment and arrests.

“As alleged, the defendants preyed on vulnerable women for sex trafficking, brutally assaulting them to enforce loyalty to the criminal enterprise.  Human beings are not property and deserve to be free from violence and coerced sexual activity,” stated United States Attorney Peace.  “This case is another example of our Office’s longstanding commitment to bringing to justice sex trafficking organizations that exploit and seek to dehumanize victims for financial gain.” 

Mr. Peace praised the outstanding investigative work of the FBI and the NYPD.  This investigation was aided by law enforcement agencies throughout the country.  Mr. Peace expressed his thanks to the United States Attorney’s Office for the District of Nebraska, as well as the Oklahoma City and Manchester field offices of United States Homeland Security Investigations and United States Immigration & Customs Enforcement.  In addition, local police departments across the United States have provided invaluable assistance, including the Beaverton (Oregon) Police Department, Michigan State Police, Missouri Highway Patrol, Oklahoma City (Oklahoma) Police Department, Omaha (Nebraska) Police Department, Overland Park (Kansas) Police Department, Portland (Oregon) Police Department, Southfield (Michigan) Police Department, and Troy (Michigan) Police Department.

“These defendants allegedly engaged in the heinous crime of forced labor and chose to brutally exploit their fellow human beings for profit,” stated FBI Assistant Director-in-Charge Smith.  “The FBI is committed to working with our partners to pursue justice on behalf of victims of human trafficking and prosecuting perpetrators to the fullest extent of the law.”

“The crimes outlined in today’s indictment are among the most heinous we confront,” stated NYPD Commissioner Caban.  “The NYPD and our law enforcement partners share an unwavering commitment to protect survivors of sex trafficking, and to ensure that anyone seeking to profit through the abuse and exploitation of others is brought to justice. I thank and commend for their sustained dedication everyone involved in investigating and prosecuting this important case.”

As set forth in court filings, between April 2019 and September 2021, the defendants allegedly participated in or performed work on behalf of an organization that ran a nationwide prostitution business, trafficked women and directed and carried out violent attacks on women throughout the United States to protect its turf and deter commercial sex workers from working for rival organizations or independently.  In carrying out these attacks, several defendants’ zip-tied the victims’ hands, stuffed or covered their mouths to silence them, and then viciously beat them with hammers, wrenches, baseball bats, rolling pins and other blunt objects, leaving the victims bloody, terrified, and, in many cases, seriously injured. 

Yuan Yuan engaged in a conspiracy to commit sex trafficking and managed the Organization’s interstate prostitution business.  She, along with her co-defendants, sought to keep women working for the Organization through force, fraud or coercion.  For example, Yuan Yuan required women to provide passports, or copies of passports, to the Organization and then would later remind them of such information when warning them not to cross the “boss.”  The Organization also sought to protect their business’s territory through violence, and Yuan Yuan played a pivotal role in devising a scheme to circulate video recordings of assaults among large groups or sex workers to deter them from working independently or for rivals.  Yuan Yuan personally recruited sex workers for the Organization, took commissions from each of their jobs, identified rival businesses for purposes of planning targeted assaults of their employees, and kept the Organization’s own employees engaged in sex work by instilling fear in them. 

As alleged, Yichu Chen and Johnnie Kim were enforcers employed by the Organization to carry out attacks on commercial sex workers.  Yichu and Kim directly participated in the violent assaults of two victims on September 15, 2020 and April 21, 2021, respectively.  A co-conspirator in a contemporaneous electronic communication described Yichu’s beating of the restrained victim on September 15, 2020 as “super severe.”  As for Kim, he, along with co-defendant Cury, stomped all over the body of a victim on April 22, 2021 and kicked her hard and repeatedly to the point that she lost consciousness. 

The superseding indictment also charges 10 additional assaults-in-aid-of-racketeering and adds defendants to previously charged counts.  WeChat messages reveal the planning of assaults by the defendants on behalf of the Organization, and describe details of the violence that occurred during the assaults.  In some cases, videos of the attacks were circulated between the defendants to demonstrate to more senior members of the Organization that the beatings were sufficiently severe.  Some videos depict victims struggling while they are bound, bleeding and being beaten with hammers, baseball bats and rolling pins, among other weapons. 

The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, Yuan Yuan faces a mandatory minimum sentence of 15 years’ imprisonment and up to life imprisonment. Yichu and Kim each face up to 20 years’ imprisonment on Hobbs Act robbery charges. 

Two defendants charged in the original indictment, Raymond Jiarun Yan, also known as “Raymond Yan” and “Mike,” and Zerong Tang, pleaded guilty earlier this month and are awaiting sentencing.

The government’s case is being handled by the office’s Organized Crime and Gangs and Civil Rights Sections.  Assistant United States Attorneys Matthew R. Galeotti, Kayla C. Bensing, Sophia M. Suarez and Genny Ngai are in charge of the prosecution, with assistance from paralegal specialist Anna November. 

The FBI’s New York Joint Asian Criminal Enterprise Task Force believes this enterprise may be responsible for the assaults of even more commercial sex workers throughout the country.  If you are a victim or have information to provide, there are several ways to contact the FBI: send a tip online at tips.fbi.gov or call 1-800-CALL-FBI.  They have people ready to work with you in your native language, regardless of your immigration status.  Please select English when prompted and ask the operator for a translator by stating your language of choice. Online tips may be submitted in any language.  In an emergency, always call 911 for the police.

The Defendants:

RONG RONG XU (also known as “Eleanor”)
Age:  31
Queens, New York

SIYANG CHEN
Age:  34
Queens, New York

SIYU CHEN (also known as “Ban Ban”)
Age:  26
Queens, New York

YUAN YUAN CHEN (also known as “Xiao Pang”)
Age:  30
Queens, New York

YICHU CHEN
Age: 21
Queens, New York

CARLOS CURY
Age:  43
Queens, New York

BO JIANG
Age:  28
Queens, New York

JOHNNIE KIM
Age: 53
Queens, New York

MEIZHEN SONG (also known as “Die Die”)
Age:  25
Dallas, Texas

JILONG YU
Age:  25
Dallas, Texas

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Roberto Gustavo Cortes Ripalda (Cortes) pleaded guilty to participating in a years’ long conspiracy to defraud clients of Biscayne Capital, an international investment advisory firm that operated in the United States, South America, and the Caribbean.  Today’s plea took place before United States District Judge Carol Bagley Amon.  When sentenced, Cortes faces up to 20 years in prison and as part of his plea agreement will pay forfeiture in the amount of $3.4 million. 

Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Kareem A. Carter, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Washington, D.C. (IRS-CI); and Derek W. Gordon, Special Agent-in-Charge, Homeland Security Investigations, Washington, D.C. Field Office (HSI), announced the guilty plea.

According to court filings and facts presented during the plea hearing, between approximately 2013 and 2018, Cortes, together with others at Biscayne Capital, orchestrated a scheme to defraud Biscayne Capital clients through a series of material misrepresentations and omissions about how Biscayne Capital client funds would be used, including falsely claiming that their funds would be used to develop luxury real estate in Florida.  As part of the scheme, Cortes and his co-conspirators used client money to pay promised investment returns to other Biscayne Capital clients.  According to the indictment, by September 2018, the scheme collapsed and Biscayne Capital went into liquidation, causing more than $155 million in losses to Biscayne Capital clients.   

Co-conspirators Ernesto Heraclito Weisson Pazmino pleaded guilty to conspiracy to commit wire fraud in April 2022; Gustavo Trujillo pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering in April 2019; Juan Carlos Cortes pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering in July 2022; Fernando Martinez Gomez pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering in March 2022. They are awaiting sentencing.  Co-conspirator Fernando Haberer Bergson was arrested in Argentina in September 2021 and is facing extradition to the Eastern District of New York. 

The IRS-CI Global Illicit Financial Team and HSI are investigating the case.

The government’s case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS).  Assistant United States Attorneys Drew G. Rolle and Benjamin Weintraub, Fraud Section Trial Attorney Randall Warden and MLARS Trial Attorney Chad Davis are in charge of the prosecution. The Justice Department’s Office of International Affairs also provided significant assistance in the case.

The Defendant:

ROBERTO GUSTAVO CORTES RIPALDA
Age:  56
Key Biscayne, Florida

Co-Conspirators Who Previously Pleaded Guilty:

ERNESTO HERACLITO WEISSON PAZMINO
Age:  55
Miami, Florida

FERNANDO HABERER BERGSON
Age:  50
Argentina

E.D.N.Y. Docket No. 21-CR-458 (CBA)

GUSTAVO TRUJILLO
Age:  43
Miami, Florida

E.D.N.Y. Docket No. 19-CR-134 (CBA)

JUAN CARLOS CORTES
Age:  45
Boca Raton, Florida

E.D.N.Y. Docket No. 22-CR-288 (CBA)

FERNANDO MARTINEZ GOMEZ
Age:  45
Ecuador

E.D.N.Y. Docket No. 22-CR-65 (CBA)

A Florida man pleaded guilty today to defrauding clients of his financial services firm.

According to court documents, in 2005, Roberto Gustavo Cortes Ripalda, 56, of Key Biscayne, founded financial services company Biscayne Capital. Between approximately 2013 and 2018, Cortes and others orchestrated a scheme to defraud Biscayne Capital clients through a series of lies regarding how the firm would use client funds. For example, Cortes and his co-conspirators told clients that their investments would finance the development of real estate projects, when in fact, Cortes and his co-conspirators used the money to pay other Biscayne Capital clients, cover Biscayne Capital expenses, and pay themselves millions of dollars. Cortes and his co-conspirators also invested clients’ money without their knowledge, and then attempted to cover their tracks by providing investors with fraudulent account statements. According to the indictment, by September 2018, the scheme collapsed, and Biscayne Capital went into liquidation, causing more than $155 million in losses to Biscayne Capital clients.

Cortes pleaded guilty to conspiracy to commit wire fraud. As part of his plea, Cortes agreed to a forfeiture judgment in the amount of $3.4 million. Cortes is scheduled to be sentenced on Jan. 12, 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, Special Agent in Charge Kareem A. Carter of the IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office, and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington made the announcement.

The IRS-CI Global Illicit Financial Team and HSI are investigating the case.

Trial Attorney Randall Warden of the Criminal Division’s Fraud Section, Trial Attorney Chad Davis of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Drew Rolle and Benjamin Weintraub for the Eastern District of New York are prosecuting the case. Trial Attorneys John (Fritz) Scanlon and Brandon Burkart of the Criminal Division’s Fraud Section assisted with the investigation of the case.

The Justice Department’s Office of International Affairs provided significant assistance in the case.

A criminal complaint was unsealed earlier today in federal court in Brooklyn charging Mina Tadrus, the founder and chief executive officer of Tadrus Capital, LLC, with wire fraud in connection with a scheme to steal from clients of his purported hedge fund.  Tadrus was arrested this morning in Tampa, Florida and made his initial appearance this afternoon in federal court in the Middle District of Florida where he was released on a $100,000 bond.

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

“As alleged, the defendant preyed on the Egyptian-American Coptic Christian community through a scheme built on false promises that his purported artificial intelligence-driven hedge fund would earn them guaranteed annual returns, when in reality he never invested a dime and just used new investor money to pay the guaranteed monthly returns and line his own pockets,” stated United States Attorney Peace.  “This Office will vigorously prosecute those who, like the defendant, claim to use cutting edge technology but instead are committing old-fashioned fraud against the public to enrich themselves.”

Mr. Peace expressed his appreciation to the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this matter.

According to the complaint, between September 2020 and July 2023, Tadrus, a former registered stockbroker, operated Tadrus Capital LLC.  Tadrus promised clients he had met at a Coptic Christian Church in Brooklyn and elsewhere that its artificial intelligence-driven trading strategies would earn them guaranteed annual returns of 30% or more.  Tadrus did not appear to have engaged in AI-based algorithmic trading. Instead, Tadrus used the investors’ funds to pay a few employees and purchase luxury goods and expensive meals for himself and make good on the fraudulent “returns” to new investors.  In total, Tadrus misappropriated at least $5 million from his victims. 

If you were a Tadrus Capital LLC client and would like to file a complaint, please visit www.iC3.gov.  Please reference “Tadrus Capital” or “Mina Tadrus” in your complaint. 

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Tadrus faces up to 20 years in prison. 

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Genny Ngai and John O. Enright are in charge of the prosecution. 

The Defendant:

MINA TADRUS
Age: 36
Tampa, Florida

E.D.N.Y. Docket No. 23-MJ-792

Today, in federal court in Central Islip, Enrique Portillo, also known as “Oso” and “Turkey,” a member of La Mara Salvatrucha, also known as the MS-13, pleaded guilty to racketeering and firearms charges in connection with his participation in four murders, namely, the September 13, 2016 murders of teenagers Kayla Cuevas and Nisa Mickens, in Brentwood; the October 13, 2016 murder of Dewann Stacks, in Brentwood; and the January 30, 2017 murder of Esteban Alvarado-Bonilla in Central Islip; as well as his participation in four attempted murders, including the discharge of a .40 caliber semi-automatic handgun in connection with one of the attempted murders; and arson.  The guilty plea proceeding was held before United States District Judge Gary R. Brown.  When sentenced, Portillo faces up to life in prison on the racketeering charge and a 10-year, mandatory minimum sentence on the firearms charge.

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 Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“Today, the defendant pleaded guilty to participating in four extremely brutal murders, including two teenage girls slaughtered while walking home, that have left permanent scars in the Brentwood community which for too long has suffered acts of violence and destruction carried out by the MS-13 with machetes, knives, guns and fire,” stated United States Attorney Peace.  “I am confident that justice for the victims will be delivered when Portillo is sentenced for his savage crimes.  This Office will not rest until all MS-13 gang members are held to account for their utter lack of respect for human life and the rule of law.”

“As part of his desire to gain status within MS-13, Portillo repeatedly acted with complete disregard for human life, killing four individuals along with multiple other attempts.   Today’s guilty plea stands as a warning to anyone willing to attempt to gain standing through senseless acts of violence — you will face the consequences.  The FBI Long Island Gang Task Force will not allow vicious criminals to go unchecked and cause our community to live in fear of violence,” stated FBI Assistant Director-in-Charge Smith.

“These senseless and barbaric killings, including those of teenagers Kayla Cuevas and Nisa Mickens, shook our communities and reverberated around the nation,” stated SCPD Commissioner Harrison.  “It is my hope that this guilty plea will provide the victims’ families some peace while also demonstrating our commitment to dismantling these criminal enterprises. I commend the work of the Long Island Gang Task Force on this case and Eastern District of New York for their continued success in prosecuting these vicious gang members.”    

According to court filings and statements made during today’s guilty plea proceeding, Portillo was a member of the Sailors Locos Salvatruchas Westside (Sailors) clique of the MS-13.  He committed the following crimes in order to maintain and increase his membership and status in the gang:

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

On the evening of July 18, 2016, Portillo and other members of the MS-13, who were driving around Brentwood, armed, in search of rival gang members to attack and kill, observed a group of men on Apple Street.  Believing these men to be members of a rival gang, Portillo and two other MS-13 members exited the car and attacked the group.  Portillo fired a .40 caliber semi-automatic handgun at one of the men (identified as John Doe #1), and then used a machete to hack at another (identified as John Doe #2).  Another MS-13 member fired at the group of men using a .38 caliber handgun.  Although John Doe #1 was struck with a bullet, he survived.  John Doe #2, who was attacked with a machete, also survived, but was severely disfigured as a result of this attack.      

September 12, 2016 Arson in Brentwood

During the summer of 2016, Sailors clique members of MS-13 were regularly having altercations with rival gang members based in a neighborhood on Freeman Avenue in Brentwood.  On September 12, 2016, the MS-13 members set fire to a car parked in the driveway of one of the houses in that neighborhood.  Portillo and other MS-13 members drove to that house, where Portillo and two others poured gasoline on a car parked in the driveway and then set it on fire.  The car exploded and ignited another parked car.  

September 13, 2016 Murders of Kayla Cuevas and Nisa Mickens

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

In the months leading up to the murders, Cuevas was involved in a series of disputes with members and associates of the MS-13.  Approximately one week before the murders, these disputes escalated when Cuevas and several friends were involved in an altercation with MS-13 members at Brentwood High School.  After that incident, the MS-13 members vowed to seek revenge against Cuevas.  On the evening of September 13, 2016, Portillo and other members of the Sailors clique of the MS-13, who were driving around Brentwood in search of rival gang members to attack and kill, spotted Cuevas and Mickens walking on Stahley Street in a residential neighborhood.  Recognizing Cuevas, they quickly sought and obtained the requisite permission to murder the teen girls.  Portillo and others then jumped out of the car, chased and attacked both Cuevas and Mickens, wielding baseball bats and a machete, striking each of the girls numerous times in their heads and bodies, causing their deaths.  Mickens, whose body was discovered later that evening on Stahley Street, not far from Cuevas’s home, sustained significant sharp force trauma to her face and blunt force trauma to her head.  Cuevas, whose body was discovered the following day behind a house adjacent to where Mickens’s body was found, sustained significant blunt force trauma to her head and body and multiple lacerations.

October 13, 2016 Murder of Dewann Stacks

On the evening of October 13, 2016, Portillo and other members of the MS-13 were once again driving around Central Islip and Brentwood in search of rival gang members to attack and kill.  That night, they spotted 34-year-old Dewann Stacks and, believing him to be a rival gang member, decided to kill him.  Portillo, armed with a baseball bat, and two other MS-13 members, both armed with machetes, attacked Stacks, beating and hacking him to death on American Boulevard, a residential street in Brentwood.  Stacks sustained severe sharp and blunt force trauma to his face and head, leaving him nearly unrecognizable.

January 30, 2017 Murder of Esteban Alvarado-Bonilla

On the morning of January 30, 2017, members of the Sailors clique of MS-13 spotted 29-year-old Esteban Alvarado-Bonilla inside El Campesino Deli in Central Islip.  Alvarado-Bonilla was wearing a football jersey bearing the number “18,” which led the MS-13 to conclude that he was a member of a rival gang, and they plotted to kill him.  Portillo identified Alvarado-Bonilla to other MS-13 members as their target, and kept watch over him to ensure that he remained at the deli.  Other MS-13 members then arrived at the deli to commit the murder.  At approximately 10:30 a.m., a masked MS-13 member entered the deli, approached Alvarado-Bonilla from behind, and shot him multiple times, killing him.  One of the bullets pierced through Alvarado-Bonilla’s head and struck the chest of a female employee of the deli, who was standing directly in front of him.  The deli employee survived the gunshot wound.

September 26, 2017 Attempted Murder of John Doe #3 in Federal Prison in Brooklyn

In the summer of 2017, while Portillo was in federal custody at the Metropolitan Detention Center (MDC) in Brooklyn, MS-13 members were regularly having altercations with members of the Young Gunnaz, or YGz, a rival gang.  On September 26, 2017, Portillo encountered an individual (identified as John Doe #3), a YGz member, on his unit and tried to kill him by using a shank to stab him in the neck, and by beating him with metal locks tied to a braided bed sheet.  John Doe #3 survived the attack. 

May 30, 2019 Attempted Murder of John Doe #4 in Federal Prison in Brooklyn

On May 30, 2019, while Portillo was in federal custody at the MDC in Brooklyn, he encountered an individual (identified as John Doe #4), a member of the Bloods street gang – a rival of the MS-13 – in his unit’s common area.  Portillo tried to kill him by stabbing him with a shank.  John Doe #4 survived the attack.    

Today’s conviction 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, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization operating on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted of 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 65 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision. 

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

The Defendant:

ENRIQUE PORTILLO (also known as “Oso” and “Turkey”)
Age: 26
Brentwood, New York

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

A 20-count superseding indictment was filed yesterday in federal court in Brooklyn charging Chad Barclay with interstate prostitution, Hobbs Act robbery, kidnapping, access device fraud, aggravated identity theft, witness tampering, and obstruction of an official proceeding.  Those crimes involve five female victims.  In addition, one male was the victim of access device fraud and aggravated identify theft.  Barclay was arrested in May 2023 and ordered detained pending trial.  Barclay will be arraigned on the superseding indictment at a later date. 

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

“As alleged, the defendant is a dangerous criminal who sexually assaulted and robbed multiple vulnerable women while using fear to make them his prisoners,” stated United States Attorney Peace.   “I commend the prosecutors and FBI Special Agents for bringing this serial offender to justice.  Anyone who believes they are a victim of a crime committed by Barclay is asked to contact the United States Attorney’s Office at https://www.justice.gov/usao-edny/report-crime or the FBI.” 

“Barclay is alleged to have callously sexually assaulted, robbed multiple women, or both through threats of violence and coercion.  This type of criminal behavior has no place in our communities. Today’s indictment serves as a notice to any individual who willingly uses threats and intimidation to commit sexual assault and other violent crimes—the FBI will ensure you face punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith. 

As alleged in court filings, from September 2022 to May 2023, Barclay engaged in a criminal pattern of enticing women, some of whom were contacted through online escort websites, to meet with him, and then sexually assaulting and/or robbing them.  After luring them to his apartment in Brooklyn, Barclay sexually assaulted multiple female victims, instilling fear and confining them for hours in his apartment.  Barclay also compelled the victims to unlock their phones so he could take control of the phones and transfer thousands of dollars to himself through various financial platforms.  On several occasions, Barclay stole the victims’ bank cards and used them to make unauthorized ATM withdrawals.  In some cases, Barclay asked his victims personal questions in an attempt to identify whether they had friends and family in New York or lived alone, and accessed their phones to gather personal information about them—including where they lived and whether they had children—to further coerce them into complying with his demands.  

If you are a victim or have information, there are several ways to contact the FBI: send a tip online at tips.fbi.gov or call 1-800-CALL-FBI.  The FBI is ready to work with callers in their native language and regardless of your immigration status.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of kidnapping, Barclay faces up to 20 years in prison. 

The government’s case is being prosecuted by Assistant United States Attorneys Andy Palacio and Lorena Michelen.

The Defendant:

CHAD BARCLAY
Age:  30
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-242 (S-1) (FB)

BROOKLYN, NY – UBS AG and several of its U.S.-based affiliates (together, “UBS”) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007.  UBS will pay the United States $1,435,000,000 in civil penalties in exchange for dismissal of the complaint filed in the action.  This settlement resolves the last case brought by a Department of Justice Working Group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.  

Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007.  The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1833a (FIRREA).  The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes, as well as 18 U.S.C. §§ 1005 and 1014. 

Breon Peace, United States Attorney for the Eastern District of New York; Vanita Gupta, United States Associate Attorney General; Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division; Ryan K. Buchanan, United States Attorney for the Northern District of Georgia, and Brian M. Tomney, Inspector General for the Federal Housing Finance Agency (FHFA) announced the settlement.

“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities.  The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated United States Attorney Peace.  “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”

Mr. Peace expressed his appreciation to the Office’s partners at the United States Attorney’s Office for the Northern District of Georgia (NDGA), and to the Federal Housing Finance Agency-Office of the Inspector General for its assistance in the government’s case. 

“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” stated Associate Attorney General Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”

“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” stated Principal Deputy Assistant Attorney General Boynton.  “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”

“This settlement represents accountability for those entities and individuals who mistakenly believed themselves to be above the law,” stated U.S. Attorney NDGA Buchanan.  “UBS’ conduct in this case played a significant role in causing a financial crisis that harmed millions of Americans.  The scope of this settlement should serve as a warning to other financial institutions – both large and small – of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets. We are thankful for the collective efforts of our partners at the U.S. Attorney’s Office for the Eastern District of New York and the investigative agencies to bring this case to resolution.”

“The FHFA Office of Inspector General, together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” stated FHFA Inspector General Tomney.  “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”

The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay.  The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws.  UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors.  Ultimately, the 40 RMBS sustained substantial losses. 

With the UBS settlement announced today, the Department of Justice has collected more than $36 billion in civil penalties from 18 major domestic and foreign banks, originators, and rating agencies for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis.  These resolutions include settlements with eighteen banks, mortgage originators, and rating agencies:  Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.   

Collectively, these matters were handled by 11 U.S. Attorney’s Offices and the Civil Division of the Department of Justice, in conjunction with the RMBS Working Group.  The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis.  Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies, including the FHFA Office of Inspector General, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission and the FBI, to investigate financial fraud in RMBS. 

The UBS case is the last RMBS Working Group case resolved by the U.S. Attorney’s Office of the Eastern District of New York. In six cases the Office and its partners recovered over $11 billion in penalties.  The Office thanks its many partners, current and former Assistant U.S. Attorneys, and professional staff for their work on this important Departmental initiative.

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

The matter involving UBS was handled by the United States Attorneys’ Offices for the Eastern District of New York and the Northern District of Georgia, with the support of agents from FHFA-OIG.  Assistant United States Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman and Melanie Speight from the Eastern District of New York, and Austin M. Hall, Andres H. Sandoval, and former Assistant United States Attorney Armen Adzhemyan from the Northern District of Georgia were in charge of the litigation. 

E.D.N.Y. Docket No. 18-CV-6369 (RPK) (PK)

Martin Leonel Perez Castro, also known as “Richard,” pleaded guilty today in federal court in Brooklyn to conspiracy to distribute cocaine internationally, intending and knowing that the cocaine would be illegally imported into the United States.  The proceeding was held before United States District Judge Brian M. Cogan.  Perez Castro, the commander of the Revolutionary Armed Forces of Colombia (FARC) 30th Front, a group that operated in southwestern Colombia, was extradited to the Eastern District of New York in June 2022.  When sentenced, he faces up to life in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the guilty plea.

“The defendant was a senior FARC leader who financed the group’s violence and terrorism through the production and distribution of thousands of kilograms of cocaine on a global scale,” stated United States Attorney Peace.  “Today’s guilty plea is a powerful reminder to drug trafficking organizations all over the world that this Office and our law enforcement partners will bring them to justice for the harm and misery they have caused in the United States and elsewhere.” 

Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Department of State, the Department of Justice’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attaché Office in Bogotá, Colombia, the Colombian National Police, and the Government of Colombia.

“As a senior FARC leader, Perez Castro used violence, power and notoriety to import tons of cocaine from Colombia into New York City,” stated DEA Administrator Milgram.  “Today's guilty plea reflects DEA’s unwavering commitment to hold all drug traffickers accountable and should send a clear message to drug networks across the globe that we will investigate and dismantle organizations that threaten the safety and health of the American people.”

“This FARC senior official maintained a revenue stream that used extortion and direct sales to cocaine dealers to fund the para-military group.  In his position, Perez Castro is responsible for distributing thousands of kilos of cocaine in and around the United States.  Today’s guilty plea is the result of the great investigative work of DEA and IRS-CI Special Agents and incredible law enforcement partnerships globally,” stated IRS-CI New York Special Agent-in-Charge Fattorusso. 

As set forth in the indictment, court filings, and statements made in Court, the FARC’s 30th Front, led by Perez Castro, generated revenue by directly selling cocaine to drug traffickers or extorting payments from traffickers operating in the 30th Front’s territory.  The cocaine trafficked by the 30th Front was later smuggled into the United States, Europe, and elsewhere.  The 30th Front also attacked rival drug trafficking groups or Colombian government forces to protect or expand FARC territory.  As part of his plea, Perez Castro will take responsibility for the distribution of more than 75,000 kilograms of cocaine.    

The FARC was founded in 1964 as a left-wing paramilitary group dedicated to the violent overthrow of the Government of Colombia.  Over decades of conflict, the FARC attacked Colombian government forces and used targeted killings, kidnapping, and other terrorist tactics to achieve its ends.  In October 1997, the U.S. Secretary of State designated the FARC as a foreign terrorist organization (FTO), pursuant to Title 8, United States Code, Section 1189.  After the Government of Colombia and the FARC entered into a peace accord in 2016, the FARC formally dissolved.  On November 30, 2021, the U.S. Secretary of State revoked the designation of the FARC as an FTO.   The defendant’s conduct occurred prior to the 2016 peace accord. 

This prosecution 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

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Andrew D. Wang, Adam Amir, and Miranda Gonzalez are in charge of the prosecution. 
 

The Defendant:

MARTIN LEONEL PEREZ CASTRO
Age:  53
Colombia

E.D.N.Y. Docket No. 14-CR-465 (S-2) (BMC)

A federal jury in Brooklyn today returned a guilty verdict against 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, on 17 of the 18 counts of a third superseding indictment.  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, conspiracy to commit murder in-aid-of racketeering, assault-in aid-of racketeering, firearms offenses and four counts of Hobbs Act robbery.  The verdict followed a three-week trial before United States District Judge Rachel P. Kovner.  When sentenced, Amador-Rios faces a mandatory term of life in prison.

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

“With today’s verdict, an extremely dangerous MS-13 gang leader aptly nicknamed “Letal,” or “Lethal,” has been brought to justice for his murderous racketeering crimes and now faces a mandatory life sentence,” stated United States Attorney Peace.  “The outstanding work of our prosecutors, along with members of the FBI and the NYPD, underscores this Office’s continuing efforts to make our communities safer by dismantling violent gangs.” 

“With the guilty verdict today, Amador-Rios has rightly been found responsible for these senseless and heinous violent crimes carried out by MS-13 in Queens.  MS-13 relies on violence and fear for control, but the verdict serves as reminder that their actions will not be tolerated.  The FBI New York Safe Streets Task Force remains steadfast in our efforts to remove the threat of this violent and dangerous gang from our communities,” stated FBI Acting Assistant Director-in-Charge Curtis.

“Today’s guilty verdict is the next step toward delivering justice for the victims of this violent criminal,” stated NYPD Commissioner Caban.  “The NYPD, in close collaboration with our law enforcement partners at the FBI and the Eastern District of New York, will continue to conduct aggressive, precisely-directed investigations like this that stanch the violence – an essential step toward healing gang-plagued communities and fulfilling our duty to protect all New Yorkers in every neighborhood.”

Murder of Julio Vasquez

Beginning in fall 2016, the CLS clique, led by Amador-Rios decided to kill a CLS chequeo, or low-level MS-13 members, (referred to in the superseding indictment 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 participated in the armed robbery of a money transfer business in which an employee was pistol whipped, three armed robberies of convenience stores all in Jamaica, Queens, as well as 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 conviction 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)

BROOKLYN, NY - Earlier today, in federal court in Brooklyn, Dairo Antonio Úsuga David, known by various aliases, including “Otoniel,” a citizen of Colombia, was sentenced by United States District Judge Dora L. Irizarry to 45 years’ imprisonment for engaging in a continuing criminal enterprise as a leader of the multibillion-dollar paramilitary and drug trafficking organization known as the “Clan del Golfo” (CDG).  Úsuga David was also sentenced to 45 years’ imprisonment for engaging in a maritime narcotics conspiracy and 45 years’ imprisonment for engaging in a narcotics importation conspiracy.  The sentences will run concurrently.  As part of the sentence, the Court ordered Úsuga David to pay $216 million in forfeiture. The defendant pleaded guilty to all three charges in January 2023.

Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Markenzy Lapointe, United States Attorney for the Southern District of Florida, Damian Williams, United States Attorney for the Southern District of New York, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Steven A. Nigrelli, Acting Superintendent, New York State Police (NYSP), announced the sentence.

“Otoniel led one of the largest cocaine trafficking organizations in the world, where he directed the exportation of massive amounts of cocaine to the United States and ordered the ruthless execution of Colombian law enforcement, military officials, and civilians,” stated Attorney General Garland.  “This sentence sends a clear message: the Justice Department will find and hold accountable the leaders of deadly drug trafficking organizations that harm the American people, no matter where they are and no matter how long it takes.”

“The human misery caused by the defendant’s incredibly violent, vengeful, and bloody reign as leader of the Clan de Golfo drug trafficking organization may never be fully calculated due to its magnitude, but today’s lengthy sentence delivers appropriate justice and sends a message to other paramilitary and cartel leaders that the United States will seek their arrest and extradition in order to hold them accountable in our courts of law,” stated United States Attorney Peace.

Mr. Peace extended his appreciation to the United States Attorneys’ Offices for the Middle District of Florida and Eastern District of Texas, the Justice Department’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), Judicial Attachés in Bogotá, Colombia and Attorneys assigned at the Special Operations Division, the United States Marshals Service, the Port Authority Police Department, the Colombian Attorney General’s Office, the Colombian National Police, the Colombian Ministry of National Defense, the Colombian Ministry of Justice, and the Colombian Ministry of Foreign Affairs, for assistance in the investigation, arrest, and extradition of the defendant.

“Today’s 45-year sentence of Clan de Golfo’s notoriously violent leader illustrates the United States’ tenacious approach to securing justice against those who threaten the security of our nation and communities,” stated United States Attorney Lapointe.  “Cartel leaders like Úsuga David will be found, extradited, and prosecuted.”     

“Today’s sentencing demonstrates DEA’s commitment to defeating deadly criminal networks who have no regard for human life,” stated DEA Administrator Milgram.  “DEA investigated Otoniel – one of the most violent and prolific drug traffickers in the world – for almost 20 years. Under Otoniel’s leadership, the Clan de Golfo shipped massive quantities of cocaine into the United States, terrorized the Colombian people, and killed civilians, law enforcement officers, and rivals in Colombia who threatened the organization’s trafficking operations. I commend the men and women of the DEA for their many years of outstanding work that culminated in today’s sentencing.”

“Today’s sentencing of notorious Clan del Golfo leader Dairo Antonio Úsuga David is the culmination of years of collaborative efforts between HSI and our local, federal and international law enforcement partners,” stated HSI New York Special Agent-in-Charge Arvelo.  “Criminals should take note of this sentencing and heed its warning; HSI remains committed to these joint efforts to disrupt and dismantle criminal organizations whose illicit activities threaten the national security of the United States and the safety of our communities.”

“When you consider the scale of Usuga David’s operations—a man with a private army who dared to place bounties on the heads of law enforcement and other government officials in Columbia–– you have to admire the tenacity and courage of team that brought him to justice, both in Columbia and the U.S.” stated NYPD Commissioner Caban.  “The NYPD is proud to have played its part in the coordinated efforts of Columbian officials, the U.S. Department of Justice, the DEA, the FBI, Homeland Security Investigations and the New York State Police.”

NYSP Acting Superintendent Nigrelli stated: “Today’s sentencing is the direct result of law enforcements dedication to stemming the tide of illegal drugs coming into our communities. This defendant smuggled tons of illegal drugs into our country and our state, putting lives in danger. We will continue to make it a priority to find, then dismantle these dangerous and deadly operations. I want to thank our members and our law enforcement partners for their work on this case and their commitment to stopping the flow of illegal drugs into our country.”

Between June 2003 and October 2021, Úsuga David was the leader of a continuing criminal enterprise responsible for exporting multi-ton shipments of cocaine from Colombia to Mexico and Central America for ultimate importation into the United States.  Additionally, Úsuga David participated in conspiracies to distribute narcotics via maritime vessels and also to manufacture and distribute cocaine, knowing and intending that the narcotics would be illegally imported into the United States.

The Clan Del Golfo

Between 2012 and through his capture by Colombian military and law enforcement forces on October 23, 2021, Úsuga David was the leader of the CDG.

The CDG is one of the most violent and most powerful criminal organizations in Colombia, and it is one of the largest distributors of cocaine in the world.  With as many as 6,000 members at times, the CDG exercises military control over vast amounts of territory in the Urabá region of Antioquia, Colombia, one of the most lucrative drug trafficking areas within Colombia due to its proximity to the Colombia-Panama border and the Caribbean and Pacific coasts.  Clad in military uniforms, CDG members employ military tactics and weapons to reinforce their power and incite wars and violence against rival drug traffickers, paramilitary organizations, and Colombian law enforcement authorities who threaten the CDG’s control.  

The CDG funds its operations primarily through a multi-billion-dollar drug trafficking operation.  It imposes a “tax” on any drug traffickers operating in territory under its control, charging fees for every kilogram of cocaine manufactured, stored, or transported through areas controlled by the organization.  The CDG also directly exports cocaine, and coordinates the production, purchase, and transfer of weekly and bi-weekly multi-ton shipments of cocaine from Colombia into Central America and Mexico for ultimate importation to the United States. 

To maintain control over CDG territory, Úsuga David and the CDG employed an army of “sicarios,” or hitmen, who carried out acts of violence, including murders, assaults, kidnappings, torture, and assassinations against competitors and those deemed traitors to the organization, as well as their family members.  The CDG murdered and assaulted Colombian law enforcement officers, Colombian military personnel, rival drug traffickers and paramilitaries, potential witnesses, and civilians.  Úsuga David and the CDG used violence to promote and enhance the reputation and position of the CDG with respect to rival criminal organizations; preserve, protect, and expand the CDG’s power and territory; finance the CDG’s operations and enrich its leaders through the collection of drug debts; maintain discipline among its members and associates; and protect CDG members from arrest and prosecution by attempting to silence potential witnesses and retaliating against law enforcement authorities and those assisting law enforcement. 

Úsuga David served as a high-ranking leader within the CDG from its inception and was its principal leader for approximately10 years.  During his reign, Úsuga David oversaw all of the CDG’s activities and directed its members to engage in extensive criminal acts, including acts of violence, mandated shutdowns of all business activities and civilian movement within designated regions of Colombia, retaliation against law enforcement authorities and potential witnesses, the exertion of control over drug manufacturing facilities and trafficking routes, and the exportation of cocaine in multi-ton quantities.

Úsuga David assumed power and territorial control over vast swaths of the Colombian coastline and personally directed members of the CDG to commit acts of violence to reinforce that power.  This included violence against civilians.  For example, in early 2012, following the death of Úsuga David’s brother in a police raid, Úsuga David ordered a multi-day shutdown be imposed on towns and communities within the CDG’s control.  During the strike, CDG members ordered that all businesses remain closed, and that residents stay in their homes. Úsuga David ordered CDG members to execute those who did not adhere to his orders. 

Úsuga David also personally ordered CDG members to commit murders of specific individuals, including the murders of rival drug traffickers and members of the CDG who betrayed him or the organization.  For example, Úsuga David ordered the assassinations of multiple individuals who worked for a rival drug trafficking organization.

In addition, Úsuga David regularly directed CDG members to use violence, intimidation, and murder to dissuade law enforcement authorities from performing their duties and to silence potential witnesses.  For example, at Úsuga David’s direction, the CDG carried out organized campaigns, referred to as “Plan Pistolas,” to kill Colombian law enforcement and military personnel using military-grade weapons, including grenades, explosives, and assault rifles.  Úsuga David offered bounties for the murder of Colombian police officers and military personnel to intimidate law enforcement authorities and prevent them from capturing him or interfering in the CDG’s business.  Úsuga David’s organization made numerous attempts to assassinate individuals who were believed to be cooperating with law enforcement. 

Úsuga David was also extensively involved in the narcotics activities that funded the CDG and enabled its power.  He oversaw the CDG’s drug trafficking exports and directed a network of “debt collectors” tasked with the enforcement and collection of taxes paid by drug trafficking organizations that operated in regions controlled by the CDG.   In addition, Úsuga David controlled cocaine manufacturing facilities and used the CDG’s extensive distribution network to export cocaine independently for his own personal profit.

Asset Forfeiture

As part of the sentence, the Court ordered Úsuga David to pay a $216 million forfeiture money judgment.  The forfeiture money judgment is subject to the Agreement between the Government of the United States of America and the Government of the Republic of Colombia concerning the Sharing of Forfeited Proceeds and Instrumentalities of Crime.

The government’s case is being handled by the Eastern District of New York’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Francisco J. Navarro, Gillian Kassner, and Tara B. McGrath are in charge of the prosecution.  Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.  Assistant United States Attorney Robert Emery of the Southern District of Florida and Assistant United States Attorney Alexander Li of the Southern District of New York led the prosecutions for their respective offices.

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

The Defendant:

DAIRO ANTONIO USUGA DAVID (also known as “Otoniel,” “Mao,” “Gallo” and “Mauricio-Gallo”)
Age: 51
Antioquia, Colombia

E.D.N.Y. Docket Nos. 14-CR-625 (S-4) (DLI)
                                   23-CR-021 (DLI)
                                   23-CR-027 (DLI)

Note: To obtain copy of b-roll of the U.S. Marshals Service transporting Otoniel via NYPD helicopter on May 5, 2022 click here.

Earlier today in federal court, a citizen of Colombia was sentenced to 45 years in prison for engaging in a continuing criminal enterprise as a leader of the multibillion-dollar paramilitary and drug trafficking organization known as the “Clan del Golfo” (CDG).

According to court documents, Dairo Antonio Úsuga David, aka Otoniel, 51, of Antioquia, Colombia, was also sentenced to 45 years in prison for engaging in a maritime narcotics conspiracy and 45 years in prison for engaging in a narcotics importation conspiracy. The sentences will run concurrently. As part of the sentence, the court ordered Úsuga David to pay $216 million in forfeiture. The defendant pleaded guilty to all three charges in January 2023.

“Otoniel led one of the largest cocaine trafficking organizations in the world, where he directed the exportation of massive amounts of cocaine to the United States and ordered the ruthless execution of Colombian law enforcement, military officials, and civilians,” said Attorney General Merrick B. Garland. “This sentence sends a clear message: the Justice Department will find and hold accountable the leaders of deadly drug trafficking organizations that harm the American people, no matter where they are and no matter how long it takes.”

“The FBI’s goal is to save lives by stopping the supply of deadly narcotics before they reach our borders and targeting the leadership of these criminal enterprises,” said FBI Director Christopher Wray. “The success of this case is due to the collaborative efforts of partners who work to dismantle these dangerous drug trafficking organizations and stop these criminals from harming our communities.”

“Today’s sentencing demonstrates DEA’s commitment to defeating deadly criminal networks who have no regard for human life,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA investigated Otoniel – one of the most violent and prolific drug traffickers in the world – for almost 20 years. Under Otoniel’s leadership, the Clan del Golfo shipped massive quantities of cocaine into the United States, terrorized the Colombian people, and killed civilians, law enforcement officers, and rivals in Colombia who threatened the organization’s trafficking operations. I commend the men and women of the DEA for their many years of outstanding work that culminated in today’s sentencing.”

“The human misery caused by the defendant’s incredibly violent, vengeful, and bloody reign as leader of the Clan del Golfo drug trafficking organization may never be fully calculated due to its magnitude, but today’s lengthy sentence delivers appropriate justice and sends a message to other paramilitary and cartel leaders that the United States will seek their arrest and extradition in order to hold them accountable in our courts of law,” said U.S. Attorney Breon Peace for the Eastern District of New York.

“Today’s 45-year sentence of Clan del Golfo’s notoriously violent leader illustrates the United States’ tenacious approach to securing justice against those who threaten the security of our nation and communities,” said U.S. Attorney for the Southern District of Florida Markenzy Lapointe. “Cartel leaders like Úsuga David will be found, extradited, and prosecuted.”     

“Today’s sentencing of notorious Clan del Golfo leader Dairo Antonio Úsuga David is the culmination of years of collaborative efforts between HSI and our local, federal and international law enforcement partners,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Criminals should take note of this sentencing and heed its warning; HSI remains committed to these joint efforts to disrupt and dismantle criminal organizations whose illicit activities threaten the national security of the United States and the safety of our communities.”

Between June 2003 and October 2021, Úsuga David was the leader of a continuing criminal enterprise responsible for exporting multi-ton shipments of cocaine from Colombia to Mexico and Central America for ultimate importation into the United States. Additionally, Úsuga David participated in conspiracies to distribute narcotics via maritime vessels and also to manufacture and distribute cocaine, knowing and intending that the narcotics would be illegally imported into the United States.

The Clan Del Golfo

The CDG is one of the most violent and powerful criminal organizations in Colombia, and it is one of the largest distributors of cocaine in the world. With as many as 6,000 members at times, the CDG exercises military control over vast amounts of territory in the Urabá region of Antioquia, Colombia, one of the most lucrative drug trafficking areas within Colombia due to its proximity to the Colombia-Panama border and the Caribbean and Pacific coasts. Clad in military uniforms, CDG members employ military tactics and weapons to reinforce their power and incite wars and violence against rival drug traffickers, paramilitary organizations, and Colombian law enforcement authorities who threaten the CDG’s control.

The CDG funds its operations primarily through a multi-billion-dollar drug trafficking operation. It imposes a “tax” on any drug traffickers operating in territory under its control, charging fees for every kilogram of cocaine manufactured, stored, or transported through areas controlled by the organization. The CDG also directly exports cocaine and coordinates the production, purchase, and transfer of weekly and bi-weekly multi-ton shipments of cocaine from Colombia into Central America and Mexico for ultimate importation to the United States.

To maintain control over CDG territory, Úsuga David and the CDG employed an army of “sicarios,” or hitmen, who carried out acts of violence, including murders, assaults, kidnappings, torture, and assassinations against competitors and those deemed traitors to the organization, as well as their family members. The CDG murdered and assaulted Colombian law enforcement officers, Colombian military personnel, rival drug traffickers and paramilitaries, potential witnesses, and civilians. Úsuga David and the CDG used violence to promote and enhance the reputation and position of the CDG with respect to rival criminal organizations; preserve, protect, and expand the CDG’s power and territory; finance the CDG’s operations and enrich its leaders through the collection of drug debts; maintain discipline among its members and associates; and protect CDG members from arrest and prosecution by attempting to silence potential witnesses and retaliating against law enforcement authorities and those assisting law enforcement.

Úsuga David served as a high-ranking leader within the CDG from its inception and was its principal leader for approximately 10 years. During his reign, Úsuga David oversaw all of the CDG’s activities and directed its members to engage in extensive criminal acts, including acts of violence, mandated shutdowns of all business activities and civilian movement within designated regions of Colombia, retaliation against law enforcement authorities and potential witnesses, the exertion of control over drug manufacturing facilities and trafficking routes, and the exportation of cocaine in multi-ton quantities.

Úsuga David assumed power and territorial control over vast swaths of the Colombian coastline and personally directed members of the CDG to commit acts of violence to reinforce that power. This included violence against civilians. For example, in early 2012, following the death of Úsuga David’s brother in a police raid, Úsuga David ordered a multi-day shutdown be imposed on towns and communities within the CDG’s control. During the strike, CDG members ordered that all businesses remain closed, and that residents stay in their homes. Úsuga David ordered CDG members to execute those who did not adhere to his orders.

Úsuga David also personally ordered CDG members to commit murders of specific individuals, including the murders of rival drug traffickers and members of the CDG who betrayed him or the organization. For example, Úsuga David ordered the assassinations of multiple individuals who worked for a rival drug trafficking organization.

In addition, Úsuga David regularly directed CDG members to use violence, intimidation, and murder to dissuade law enforcement authorities from performing their duties and to silence potential witnesses. For example, at Úsuga David’s direction, the CDG carried out organized campaigns, referred to as “Plan Pistolas,” to kill Colombian law enforcement and military personnel using military-grade weapons, including grenades, explosives, and assault rifles. Úsuga David offered bounties for the murder of Colombian police officers and military personnel to intimidate law enforcement authorities and prevent them from capturing him or interfering in the CDG’s business. Úsuga David’s organization made numerous attempts to assassinate individuals who were believed to be cooperating with law enforcement.

Úsuga David was also extensively involved in the narcotics activities that funded the CDG and enabled its power. He oversaw the CDG’s drug trafficking exports and directed a network of “debt collectors” tasked with the enforcement and collection of taxes paid by drug trafficking organizations that operated in regions controlled by the CDG. In addition, Úsuga David controlled cocaine manufacturing facilities and used the CDG’s extensive distribution network to export cocaine independently for his own personal profit.

As part of the sentence, the court ordered Úsuga David to pay a $216 million forfeiture money judgment. The forfeiture money judgment is subject to the agreement between the U.S. government and the Government of the Republic of Colombia concerning the sharing of forfeited proceeds and instrumentalities of crime.

The DEA, HSI, FBI, New York City Police Department (NYPD), and New York State Police (NYSP) investigated the case. The United States Attorneys’ Offices for the Middle District of Florida and Eastern District of Texas, the Justice Department’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), Judicial Attachés in Bogotá, Colombia, and attorneys assigned at the Special Operations Division, the U.S. Marshals Service, the Port Authority Police Department, the Colombian Attorney General’s Office, the Colombian National Police, the Colombian Ministry of National Defense, the Colombian Ministry of Justice, and the Colombian Ministry of Foreign Affairs provided valuable assistance in the investigation, arrest, and extradition of the defendant.

Assistant U.S. Attorneys Francisco J. Navarro, Gillian Kassner, and Tara B. McGrath for the Eastern District of New York prosecuted the case. Assistant U.S. Attorney Claire S. Kedeshian for the Eastern District of New York is handling forfeiture matters. Assistant U.S. Attorneys Robert Emery for the Southern District of Florida and Alexander Li for the Southern District of New York led the prosecutions for their respective offices.

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

Earlier today, Peter Adamczak, a licensed chiropractor operating in East Meadow, Long Island, was sentenced by United States District Judge Joanna Seybert in federal court in Central Islip to a year and a day in prison for health care fraud.  As part of that sentence, Judge Seybert ordered Adamczak to pay nearly $1 million in restitution and to forfeit over $180,000.  Adamczak had billed a private insurance company over $1 million for acupuncture services that were never performed.  The defendant pleaded guilty to the charge in August 2022.

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

“Today’s sentence demonstrates that Adamczak’s long-running scheme, in which he brazenly submitted false and fraudulent billing claims to an insurance provider, ultimately came at a personal cost to the defendant,” stated United States Attorney Peace.  “This Office will continue to hold accountable dishonest healthcare professionals who abuse the trust placed in them by lying and cheating in order to line their own pockets.” 

“Health insurance fraud is not a victimless crime as it increases the cost of coverage for those who need it most and wastes precious medical resources,” state New York State Inspector General Lang.  “I want to thank the United States Attorney for the Eastern District of New York Breon Peace for delivering justice on this case and to the OIG staff who worked on exposing this audacious scheme.”   

From 2016 to 2020, Adamczak submitted over $1 million in fraudulent claims for reimbursement to a private insurance company.  Adamczak was not licensed to perform acupuncture but claimed that the services were performed by an unaffiliated acupuncturist who leased office space from Adamczak.  In reality, neither the unaffiliated acupuncturist nor Adamczak performed the billed acupuncture services.  Based on Adamczak’s fraudulent claims, the private insurance company paid reimbursements to its beneficiaries who, in turn, delivered the payments to Adamczak.  In one case, a beneficiary who was a relative of Adamczak, deposited the reimbursement checks to their personal bank account and kept the funds.

Assistant United States Attorney John Vagelatos is in charge of the prosecution.  Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

PETER ADAMCZAK
Age:  66
Huntington, New York

E.D.N.Y. Docket No. 22-CR-287 (JS)

今天早些时候，廖海燕（Haiyan Liao）在布鲁克林的联邦法院对签证欺诈和洗钱指控认罪，因为其参与了旨在将中国公民非法带入美国以谋取经济利益的多年计划。 廖某于2021年1月被起诉。

美国纽约东区检察官布雷昂·皮尔斯（Breon Peace）、司法部刑事司助理司法部长小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)、美国国务院外交安全局（DSS）首席副助理部长兼调查代理副助理主任格雷戈里·巴特曼（Gregory Batman）宣布了此消息。

“向廖支付了过千美元，以助向联邦政府撒谎，将包括无人陪伴的未成年人等个人带入美国，以谋取私利，”美国检察官皮尔斯（Peace）说。“本办公室致力维护法治并保护我们移民流程的完整性。”

“刑事司致力于在法律允许的最大范围内起诉人口走私者和人贩子，”司法部刑事司助理总检察长 小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)说。 “廖的定罪表明，对那些剥削弱势群体谋取个人贪婪的人士追究责任的承诺。”  

“外交安全局的全球存在让我们的机构能够充当美国和外国执法机构之间的联络人，协助双方努力制止人口贩运，” DSS 代理副助理调查主任格雷戈里·巴特曼(Gregory Batman)说。 “今天的认罪证明 DSS 在全球的部署如何能够阻止人口贩运的浪潮，并针对捕猎这些受害者的犯罪分子。” 

根据法庭文件，已入籍的美国公民、土生土长的中国公民廖某与他人参与一项计划，协助来自中国的非公民非法进入美国。廖透过向美国驻广州领事馆提交包含虚假陈述的申请，以欺诈手段为这些非公民取得旅客签证。对于申请被批准的非公民——包括四名未成年人——廖为他们前往美国提供了便利，包括陪同他们乘坐商业航班飞往约翰肯尼迪国际机场。该等非美国公民及其家人支付了上千美元才能到达美国。由于此计划，廖透过从中国到美国的电汇汇款获取了至少 98,673.72 美元的非法收益。

廖承认了串谋非法将非法移民带入美国以谋取经济利益，最高可判处五年徒刑和洗钱罪，最高可判处20年徒刑。联邦地区法院法官将在考虑美国量刑指南和其他法定因素后确定任何量刑。

DSS 刑事欺诈调查科对此案进行了调查。

纽约东区助理美国检察官诺米·贝伦森(Nomi Berenson)和司法部人权和特别起诉科的审判律师拉米·巴达维(Rami Badawy)正起诉此案。

被告：

廖海燕（Haiyan liao）
年龄： 45
内华达州拉斯维加斯

纽约东区法院案卷号：20-CR-500 (SJ)

今天早些时候，廖海燕（Haiyan Liao）在布鲁克林的联邦法院对签证欺诈和洗钱指控认罪，因为其参与了旨在将中国公民非法带入美国以谋取经济利益的多年计划。 廖某于2021年1月被起诉。

美国纽约东区检察官布雷昂·皮尔斯（Breon Peace）、司法部刑事司助理司法部长小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)、美国国务院外交安全局（DSS）首席副助理部长兼调查代理副助理主任格雷戈里·巴特曼（Gregory Batman）宣布了此消息。

“向廖支付了过千美元，以助向联邦政府撒谎，将包括无人陪伴的未成年人等个人带入美国，以谋取私利，”美国检察官皮尔斯（Peace）说。“本办公室致力维护法治并保护我们移民流程的完整性。”

“刑事司致力于在法律允许的最大范围内起诉人口走私者和人贩子，”司法部刑事司助理总检察长 小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)说。 “廖的定罪表明，对那些剥削弱势群体谋取个人贪婪的人士追究责任的承诺。”  

“外交安全局的全球存在让我们的机构能够充当美国和外国执法机构之间的联络人，协助双方努力制止人口贩运，” DSS 代理副助理调查主任格雷戈里·巴特曼(Gregory Batman)说。 “今天的认罪证明 DSS 在全球的部署如何能够阻止人口贩运的浪潮，并针对捕猎这些受害者的犯罪分子。” 

根据法庭文件，已入籍的美国公民、土生土长的中国公民廖某与他人参与一项计划，协助来自中国的非公民非法进入美国。廖透过向美国驻广州领事馆提交包含虚假陈述的申请，以欺诈手段为这些非公民取得旅客签证。对于申请被批准的非公民——包括四名未成年人——廖为他们前往美国提供了便利，包括陪同他们乘坐商业航班飞往约翰肯尼迪国际机场。该等非美国公民及其家人支付了上千美元才能到达美国。由于此计划，廖透过从中国到美国的电汇汇款获取了至少 98,673.72 美元的非法收益。

廖承认了串谋非法将非法移民带入美国以谋取经济利益，最高可判处五年徒刑和洗钱罪，最高可判处20年徒刑。联邦地区法院法官将在考虑美国量刑指南和其他法定因素后确定任何量刑。

DSS 刑事欺诈调查科对此案进行了调查。

纽约东区助理美国检察官诺米·贝伦森(Nomi Berenson)和司法部人权和特别起诉科的审判律师拉米·巴达维(Rami Badawy)正起诉此案。

被告：

廖海燕（Haiyan liao）

年龄： 45

内华达州拉斯维加斯

纽约东区法院案卷号：20-CR-500 (SJ)

A Las Vegas woman pleaded guilty today in the Eastern District of New York to money laundering conspiracy and conspiracy to unlawfully bring Chinese nationals into the United States for financial gain.

According to court documents, Haiyan Liao, 46, a naturalized U.S. citizen and native of China, engaged in a scheme with others to assist noncitizens from China in entering the United States by fraudulently obtaining visitor visas. Liao and her co-conspirators submitted applications containing false statements to the U.S. Consulate in Guangzhou, China. For the noncitizens whose applications were approved, Liao facilitated their travel to the United States and accompanied them on commercial flights to Queens and Brooklyn, New York. Four of the noncitizens were unaccompanied minors. The noncitizens and their families paid thousands of dollars to Liao and others to get to the United States. As a result of this scheme, Liao reaped at least $98,673.72 in illicit proceeds through wire transmissions from China to the United States.

“The Criminal Division is committed to prosecuting human smugglers who undermine the rule of law by trying to circumvent our lawful immigration system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As Liao’s conviction demonstrates, we will continue to hold accountable people who take advantage of vulnerable populations for personal greed.”

“Liao was paid thousands of dollars to help lie to the federal government to bring individuals, including unaccompanied minors, into the United States for her own selfish gain,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office stands committed to upholding the rule of law and protecting the integrity of our immigration process.”

“The Diplomatic Security Service’s global presence provides it with the expertise necessary to dismantle transnational human smuggling networks,” said Deputy Assistant Director of Investigations Robert Kelty of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s guilty plea demonstrates DSS’ commitment to protecting vulnerable populations, stemming the tide of human smuggling and targeting those who abuse our nation’s visa system.”

Liao pleaded guilty to conspiracy to unlawfully bring aliens into the United States for financial gain, which carries a maximum penalty of five years in prison, and money laundering conspiracy, which carries a maximum penalty of 20 years in prison. She is scheduled to be sentenced on Dec. 8. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DSS Criminal Fraud Investigations Branch investigated the case.

Acting Deputy Chief Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Nomi Berenson for the Eastern District of New York are prosecuting the case.

A 16-count indictment was unsealed today in federal court in Central Islip charging investment advisers Adam Kaplan and his brother, Daniel Kaplan, with conspiracy to commit wire fraud, wire fraud, investment advisor fraud, and money laundering in connection with several schemes to steal millions of dollars from their clients.  The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge James M. Wicks. 

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

“As alleged, the Kaplans engaged in years-long schemes violating the trust that their clients, some of them elderly and vulnerable, had placed in them to manage their money safely and honestly,” stated United States Attorney Peace.  “The defendants lined their pockets at the victims’ expense, but with their lies and frauds exposed, they will be held to account for their conduct.” 

Mr. Peace thanked the Securities and Exchange Commission for their assistance with the case.

“As alleged, the Kaplans engaged in multiple investment fraud schemes that victimized their clients, many of whom were elderly or disabled. This type of illegal activity is unfortunately all too common and even more egregious when vulnerable groups are targeted,” stated FBI Acting Assistant Director-in-Charge Curtis.  “The FBI will continue to investigate and hold accountable those who exploit their clients by misappropriating their funds for personal gain.”

As set forth in the indictment and other public filings, between May 2018 and November 2022, Adam and Daniel Kaplan acted as investment advisors for hundreds of clients.  The defendants used their positions of trust to misappropriate millions of dollars from their clients, some of whom were elderly and disabled.  The defendants used various schemes to misappropriate the victims’ funds, including overbilling for advisory fees, siphoning money from bank accounts through fraudulent advisory fee charges and through purported “investments” defendants never intended to make.  The defendants lied to their clients about the fraudulent charges, forged their clients’ signatures on documents, and made misrepresentations to financial institutions.   In total, the defendants misappropriated at least $5 million, using the funds for personal expenses and to purchase luxury goods.

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 20 years in prison.

If you were a client of Adam Kaplan or Daniel Kaplan and would like to file a complaint, please visit www.iC3.gov.  Please reference “Adam Kaplan” or “Daniel Kaplan” in your complaint. 

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Christopher Caffarone, Paul Scotti, and Adam Toporovsky are in charge of the prosecution. 

The Defendants:

ADAM KAPLAN
Age:  34
Great Neck, New York 

DANIEL KAPLAN
Age:  34
Great Neck, New York

E.D.N.Y. Docket No. 23-CR-293 (GRB)

This afternoon, at the federal courthouse in Brooklyn, Haiyan Liao pleaded guilty to visa fraud and money laundering charges for her role in a multi-year scheme to illegally bring Chinese nationals into the United States for financial gain.  Liao was charged in January 2021. Today’s proceeding was held before United States Magistrate Judge Cheryl L. Pollak. 

U.S. Attorney Breon Peace of the Eastern District of New York; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and Principal Deputy Assistant Secretary and Acting Deputy Assistant Director of Investigations Gregory Batman of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.

“Liao was paid thousands of dollars to help lie to the federal government to bring individuals, including unaccompanied minors, into the United States for her own selfish gain,” stated United States Attorney Peace.  “This Office stands committed to upholding the rule of law and protecting the integrity of our immigration process.”

“The Criminal Division is committed to prosecuting human smugglers who undermine the rule of law by trying to circumvent our lawful immigration system,” stated Assistant Attorney General Polite. “As Liao’s conviction demonstrates, we will continue to hold accountable people who take advantage of vulnerable populations for personal greed.”

“The Diplomatic Security Service’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts, assisting both in their efforts to stop human trafficking,” stated DSS Acting Deputy Assistant Director of Investigations Batman.   “Today’s guilty plea demonstrates how DSS’ placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.”

According to court documents, Liao, a naturalized U.S. citizen and native of China, engaged in a scheme with others to assist noncitizens from China to illegally enter the United States.  Liao fraudulently obtained visitor visas for those noncitizens by submitting applications containing false statements to the U.S. Consulate in Guangzhou, China.  For the noncitizens whose applications were approved – including four minors – Liao facilitated their travel to the United States, including accompanying them on commercial flights to John F. Kennedy International Airport.  The noncitizens and their families paid thousands of dollars to get to the United States.  As a result of this scheme, Liao reaped at least $98,673.72 in illicit proceeds through wire transmissions from China to the United States.

Liao pleaded guilty to conspiracy to unlawfully bring unauthorized immigrants into the United States for financial gain, which carries a maximum sentence of five years imprisonment and money laundering conspiracy, which carries a maximum sentence of 20 years imprisonment. 

The DSS Criminal Fraud Investigations Unit Branch investigated the case.

Assistant U.S. Attorney Nomi Berenson for the Eastern District of New York and Rami Badawy, Acting Deputy Chief of the Justice Department’s Human Rights and Special Prosecutions Section are prosecuting the case.

The Defendant:

HAIYAN LIAO
Age:  46
Las Vegas, Nevada

E.D.N.Y. Docket No. 20-CR-500 (DG)

Breon Peace, United States Attorney for the Eastern District of New York, announced today the formation of the Office’s Conviction Integrity Committee and the Office’s process to receive, evaluate, and review claims of wrongful convictions.  In October 2022, Mr. Peace appointed Assistant United States Attorney Kayla Bensing to the newly created position of Conviction Integrity Coordinator to formalize the Office’s conviction integrity process and collaborate with our law enforcement partners who are undertaking similar efforts to ensure the integrity of all convictions.

“It is critical to this Office’s law enforcement mission and our sacred responsibility to seek justice and uphold the public trust that, whenever there is reason to doubt the integrity of conviction, we move quickly to evaluate the prosecution and take the necessary steps to achieve a just result,” stated United States Attorney Peace.  “From my first day as U.S. Attorney, it has been my priority to pursue justice and protect the civil rights of everyone in our community, without bias and with compassion, and I am confident that the measures announced today will help accomplish that goal.”

The United States Attorney’s Office for the Eastern District of New York is committed to maintaining rigorous internal processes in investigating and prosecuting cases as well as assisting state and local partners in maintaining the integrity of our justice system. 

If you have an inquiry related to the integrity of a conviction, please email USANYE-Convictionintegrity@usdoj.gov. Please provide the information requested here.  Please note that decisions as to whether and how to investigate a claim are made in the U.S. Attorney’s discretion and are not reviewable by any court.  There is no timeframe by which claims presented to the U.S. Attorney’s Office will be resolved, but the Office will make every effort to expedite the resolution of each inquiry.

Earlier today, at the federal courthouse in Central Islip, James Tunstall, also known as “Math,” was sentenced by the Honorable Joan M. Azrack, United States District Judge, to 30 years’ imprisonment, for distributing heroin, the use of which resulted in the fatal overdose of 24-year-old Sergio Niko Alvarez on October 29, 2018 in Jericho, New York.  Tunstall was found guilty in a week-long jury trial in February 2023.  

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

“As proven at trial, the defendant feigned addiction to misuse a rehab program to get out of jail, where he met vulnerable individuals he could sell drugs to, including the victim,” stated United States Attorney Peace.  “It is our hope that today’s sentence serves both as a deterrent to those peddling dangerous narcotics in our communities and as a measure of comfort to the victim’s family, that callous disregard for human life will never be accepted.”

United States Attorney Peace extended his appreciation to the members of the Long Island Heroin Task Force for their outstanding working on this case.

“DEA’s New York Division works tirelessly to safeguard our communities from drug traffickers peddling their poison that has taken too many lives,” said DEA Special Agent in Charge Tarentino.  “This sentencing exemplifies law enforcement’s focus of bringing those responsible for overdoses and poisonings to justice, and sends a message of support to the families of loved ones lost that we will not rest until justice is done.”

“The arrest and sentencing of defendant James Tunstall is a clear example of numerous law enforcement agencies working together to bring closure to this case,” said NCPD Commissioner Ryder.  “Defendant Tunstall continuously dealt illegal drugs to Nassau County residents which contaminated our communities.  This also resulted in the fatal overdose of a 24-year-old male and the defendant is now held accountable.  Nassau County continues our zero tolerance approach for the distribution of illegal drugs and this case should send a strong message to all that may contemplate the distribution of these drugs.”

As proven at trial earlier this year and set forth in the government’s sentencing letters and other public documents, Tunstall was a drug dealer who regularly sold cocaine and heroin to customers in Nassau County.  Despite repeated state arrests for drug trafficking, the defendant regularly feigned opioid addiction and was therefore court-mandated to participate in rehabilitation programs in lieu of incarceration. As proven in court, Tunstall amassed new drug customers at these rehabilitation centers, including the victim, who he met at an outpatient rehabilitation facility in Mineola.  Tunstall later sold cocaine to the victim at that same facility.  In an effort to keep his drug customers out of jail, Tunstall also provided these individuals with his own clean urine for use in order to pass their drug tests. 

Tunstall’s co-defendant, Jay Tenem, who Tunstall also met as part of a drug rehabilitation program, delivered the fatal dose of heroin from Tunstall to the victim on October 28, 2018.  Tenem also brought the victim’s cash payment back to Tunstall, in exchange for heroin of Tenem’s own to use.  The next morning, the victim was found dead, by his mother, of heroin intoxication.  Tunstall was arrested for the victim’s death while on release pending sentence in yet another state drug trafficking case.  Tenem was also arrested, and pleaded guilty.     

Tunstall pleaded guilty in July 2021 to participating in a conspiracy to distribute heroin and cocaine, and was sentenced by the Court in December 2022 to 20 years’ imprisonment.  The sentence imposed upon him today in connection with Alvarez’s death will be served concurrently with that sentence.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Justina Geraci and Samantha Alessi are in charge of the prosecution, with assistance from Paralegal Specialist Michael Compitello.

The Defendant:

JAMES T. TUNSTALL (also known as “Math”)
Age:  48
Freeport and Westbury, New York

E.D.N.Y. Docket No. 18-CR-675 (JMA)