Eastern District of New York

Late yesterday, in federal court in Central Islip, an 18-count indictment was returned charging Dr. Roya Jafari-Hassad with illegal distribution of oxycodone and witness tampering. Hassad was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division and Elysia M. Doherty, Assistant Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations, New York Region (HHS-OIG) announced the charges.

“As alleged, the defendant abandoned her medical oath to operate a pill mill in Nassau County, illegally dispensing oxycodone to patients for a cash fee,” stated United States Attorney Breon Peace.  “This Office will continue to protect our community from bad actors who flood our streets with dangerous drugs, even if they hide behind their prescription pad.” 

“A prescription pad in the wrong hands can be a deadly weapon,” said DEA Special Agent in Charge Frank Tarentino.  “The diversion of prescription medication is inexcusable for medical professionals and I applaud the hard work by DEA and our law enforcement partners who brought these charges against Dr. Jafari-Hassad.”   

“Health care professionals have a duty to prescribe medication responsibly to ensure the well-being of their patients. Failing to do so puts the health and safety of patients at risk and undermines critical measures to address the opioid epidemic,” said Susan A. Frisco, Acting Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General. "HHS-OIG will continue to work with our law enforcement partners to hold accountable bad actors who exploit opioid addiction for personal financial gain.”

Specifically, the investigation has disclosed that Hassad operated a medical office in Great Neck, New York, in which she charged her patients hundreds of dollars in cash in exchange for an illegal monthly oxycodone prescription. These oxycodone prescriptions had no legitimate medical purpose. The cash charge was often in addition to Hassad billing the patient’s insurance for a variety of charges, many relating to procedures that never occurred.  It is estimated that Hassad made hundreds of thousands of dollars a year cash solely from the cash payments made by patients to obtain their oxycodone prescriptions. 

For example, Hassad prescribed oxycodone to an undercover agent at every visit including the first visit.  These visits took place over a year long period and none of the oxycodone prescriptions had a legitimate medical purpose.  In addition, after a search warrant was executed at her medical offices, Hassad reached out to patients and attempted to convince them to alter their testimony about their oxycodone prescriptions.    

Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is frequently abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.

The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor.

The Defendant:

ROYA JAFARI-HASSAD
Age:  56
Bayside, New York

E.D.N.Y. Docket No. 22-545

A criminal complaint was unsealed today in federal court in Brooklyn charging Mohammad David Hashimi, Abdullah At Taqi, Khalilullah Yousuf, and Seema Rahman with conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”).  Hashimi, Taqi, and Rahman were arrested this morning in Virginia, New York, and New Jersey, respectively.  Yousuf was also arrested this morning in Canada by Canadian law enforcement pursuant to a provisional arrest request from the United States.  Taqi and Rahman made their initial appearances earlier today in federal court in Brooklyn before Chief United States Magistrate Judge Cheryl L. Pollak.  Hashimi made his initial appearance in federal court in Alexandria, Virginia before United States Magistrate Judge Ivan Davis and was ordered held pending trial.

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

“As alleged, this crowdfunding network used cryptocurrency, Bitcoin wallets, GoFundMe, and PayPal to collect and raise blood money to support ISIS, not for needy families as they falsely claimed in their attempt to deceive law enforcement,” stated United States Attorney Peace.  “I commend our prosecutors and the FBI’s New York Joint Terrorism Task Force for piercing the veil of secrecy to identify the perpetrators of this scheme, reveal the true evil nature of these virtual money transfers, and bring to justice those who seek to enable acts of violent extremism.”

“As alleged, the defendants deliberately participated in schemes to raise funds for ISIS in support of the group’s barbaric aims and actions.  The FBI New York’s Joint Terrorism Task Force and our law enforcement partners remain relentless in our determination to protect our nation from those willing to support the scourge of international terrorism,” stated FBI Assistant Director-in-Charge Driscoll.

As set forth in the Complaint, Hashimi and Yousuf were members of a group chat (referred to in the Complaint as Group Chat-1) on an encrypted social media and mobile messaging electronic communication service that facilitated communication between and among supporters of ISIS and other groups that adhered to similar violent jihadist ideologies.  In early April 2021, members of Group Chat-1 discussed posting donation links that purported to be for humanitarian causes but were in fact intended to help the “mujahideen,” an Arabic term that translates to “holy warriors” that is used by ISIS supporters to refer to ISIS fighters.  Yousuf provided a link to a specific Bitcoin address and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by an individual identified in the Complaint as Facilitator-1. 

In conversations with a confidential source, Taqi and Facilitator-1 discussed giving money to support ISIS fighters.  When the confidential source asked Facilitator-1 for proof that the money being donated was going to support ISIS, Facilitator-1 sent the confidential source screenshots and a video depicting tactical gear, ammunition, and grenades on top of an ISIS flag.  An image of one of the photographs is depicted below.

Facilitator-1 also told the confidential source that the charitable descriptions in the fundraising campaigns were in fact a “deception for the infidels” and the “words that are in the link are fake in order to deceive.” 

Between February 2021 and July 2022, the defendants raised and contributed more than $35,000 to Facilitator-1 via a combination of cryptocurrency and other sources.  The defendants contributed more than $24,000 to Facilitator-1’s Bitcoin address, with Yousuf contributing $20,347.89, Taqi contributing $2,769.35, and Rahman contributing $927.51.  The defendants also sent more than $1,000 to the PayPal account associated with Facilitator-1, with Rahman contributing approximately $550, Taqi contributing approximately $480, and Hashimi contributing $55.  In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes.  Hashimi contributed $364 and Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Facilitator-1 via Western Union. 

Hashimi has also made statements suggesting his desire to die in combat or in a terrorist attack on behalf of a foreign terrorist organization.  For example, in November 2020, Hashimi told another confidential source over encrypted communications that “I have made up my mind I want to make Hijra to Afghanistan. To join dawla,” in other words, travel to join ISIS.  In or about September 2021, Hashimi told another individual through a direct message that “I just want Jannah,” i.e., paradise or the after-life, “And to die on the battlefield.”  Hashimi also provided financial support for numerous individuals who have been charged with or convicted of federal crimes of terrorism.  Between December 2021 and October 2022, Hashimi gave more than $2,000 to a terrorism defendant through JPay, an inmate funding service.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant U.S. Attorneys Douglas M. Pravda, Ian C. Richardson and Nina Gupta are in charge of the prosecution, with assistance provided by Trial Attorneys Daniel Gardner and Alexandra Hughes of the Counterterrorism Section of the Department of Justice’s National Security Division.

The Defendants:

MOHAMMAD DAVID HASHIMI
Age:  35
Potomac Falls, Virginia

ABDULLAH AT TAQI
Age:  23
East Elmhurst, Queens, New York

KHALILULLAH YOUSUF
Age:  34
Ontario, Canada

SEEMA RAHMAN
Age:  25
Edison, New Jersey

E.D.N.Y. Docket No. 22-MJ-1323

Publicly filed court documents, including a 16-count indictment unsealed today in Brooklyn, charge five Russian nationals – including a suspected Federal Security Service (FSB) officer – and two U.S. nationals with conspiracy and other charges related to a global procurement and money laundering scheme on behalf of the Russian government in which the defendants allegedly conspired to obtain military-grade and dual-use technologies from U.S. companies for Russia’s defense sector, and to smuggle sniper rifle ammunition, in violation of new U.S. sanctions imposed earlier this year.

Yevgeniy Grinin, 44, of Moscow; Aleksey Ippolitov, 57, of Moscow; Boris Livshits, 52, of St. Petersburg; Svetlana Skvortsova, 41, of Moscow; Vadim Konoshchenok, 48, of St. Petersburg; Alexey Brayman, 35, of New Hampshire; and Vadim Yermolenko, 41, of New Jersey, are charged with conspiracy to defraud the United States as to the enforcement of export controls and economic sanctions; conspiracy to violate the Export Control Reform Act (ECRA); smuggling; and failure to comply with the Automated Export System relating to the transportation of electronics.

According to the indictment, the defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications.

“The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian military’s war efforts,” said Attorney General Merrick B. Garland. “With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. I am grateful for the tireless efforts of the Department’s Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorney’s Office for the Eastern District of New York, and the FBI on this case.”

“Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls,” said Deputy Attorney General Lisa O. Monaco. “By exposing the defendants’ smuggling of ammunition and transfer of sensitive U.S. technologies – from quantum computing to hypersonic weapons development – the Department of Justice is holding accountable those who are fueling Russia’s unlawful and unprovoked aggression in Ukraine.”

“The FBI’s work, with our partners, to identify and stop illegal transfers of weapons and dual use-technology to Russia shows that we can and will reach around the world to keep Americans safe,” said FBI Director Christopher Wray. “The industries that these illegal transfers could support – quantum computing, hypersonic weapons – pose great danger in the hands of our adversaries. The FBI will remain relentless against illegal transfers that support such industries in hostile nations, while we also continue to focus on protecting strategic technology innovation here at home.”

“This indictment demonstrates the relentless efforts of the FBI and its partners to thwart Russian procurement actors in their attempts to reconstitute the Russian military’s weapons cache,” said FBI Deputy Director Paul Abbate. “The FBI, along with its U.S. and international partners, remains committed to disrupting and dismantling these networks, regardless of where they are.”

As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true identity(s) of Russian end users of U.S.-origin equipment.

Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them “instrumental to the Russian Federation’s war machine.”

“As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Our office will not rest in its vigorous pursuit of those who unlawfully procure U.S. technology to be used in furtherance of Russia’s brutal, continued attacks on democracy.”

“From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority,” said Task Force KleptoCapture Director Andrew C. Adams. “Today’s indictment demonstrates the reach of those controls and the United States’ commitment to choking off access to military grade equipment by the Russian regime. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin shopping for spare parts in North Korea.”

As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Livshits, a former resident of Brooklyn, New York, opened and controlled a variety of shell companies and associated bank accounts in the New York City area, which he used to route shipments and layer financial transactions in furtherance of the scheme, including in coordination with Konoshchenok, Brayman and Yermolenko.

Konoshchenok – who is suspected to be an FSB officer – would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items. As alleged in the indictment, on Oct. 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles. On Nov. 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately 20 cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds. Konoshchenok discussed “fabricating” business records with Livshits to conceal the ammunition shipments, on one occasion describing them as “auto parts.”  Incident to Konoshchenok’s arrest, Estonian authorities searched a warehouse held in the name of Konoshchenok’s son and recovered approximately 375 pounds worth of ammunition.

Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world — including to Konoshchenok in Estonia — before eventually arriving in Russia. Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme.

Livshits also interfaced directly with U.S. companies – often using the alias “David Wetzky” – and made materially false statements about how the items would be used and the ultimate end user. He also fabricated shipping documents and invoices and repackaged and reshipped items to intermediate destinations around the world before eventually arriving in Russia.

“The powerful export controls we’ve put in place have been successful in isolating Russia from the global economy,” stated Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “Today’s actions demonstrate our vigilance in uncovering Russian tactics to illicitly acquire the items they need to keep their brutal war going.”

Grinin, Ippolitov, Livshits and Skvortsova are further charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA); wire fraud; and money laundering. Grinin, Ippolitov, Livshits, Skvortsova, Brayman and Yermolenko are further charged with bank fraud conspiracy, wire fraud conspiracy and money laundering conspiracy. Today, Brayman surrendered to the FBI and Yermolenko was arrested in New Jersey. Brayman will be arraigned in New Hampshire and Yermolenko will be arraigned in the Eastern District of New York. Konoshchenok was arrested separately by Estonian authorities on Dec. 6 at the request of the United States and is now pending extradition. The remaining defendants are at large.

If convicted of bank fraud or bank fraud conspiracy, the defendants face a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated the case.

Assistant U.S. Attorneys Artie McConnell and Craig R. Heeren for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Litigation Analyst Ben Richmond. The Justice Department’s Office of International Affairs provided valuable assistance. The United States wishes to thank the Estonian Internal Security Service and the Prosecutor's Office for their support.

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

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

Earlier today, at the federal courthouse in Central Islip, a federal jury convicted Marlon Thompson on all four counts of an indictment charging him with conspiracy to distribute fentanyl, heroin and cocaine base, the distribution of fentanyl that caused the death of the victim Fredrick Koenig, 36, on Christmas Day 2018, and illegal possession of firearms.  The verdict followed a six-day trial before United States District Judge Joan M. Azrack.  When sentenced, Thompson faces a mandatory minimum sentence of 20 years’ imprisonment and up to life in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA); and Rodney J. Harrison, Commissioner, Suffolk County Police Commissioner (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the verdict.

“Today, the defendant was held accountable for trafficking fentanyl that caused the tragic overdose death of a young man on Long Island,” stated United States Attorney Peace.  “The large quantities of fentanyl the defendant distributed all over Suffolk County had a devastating impact on the community, including by taking this young man away from his family too soon. This Office, together with our federal and local partners, will continue to work tirelessly to prosecute those who contribute to this serious problem.”

“The overwhelming number of drug poisonings throughout the United States is a driving force for DEA to bring those responsible to justice,” stated DEA Special Agent-in-Charge Tarentino.  “Today’s conviction emphasizes the rippling effect of this crisis and its devastation of so many lives.  This investigation is one example of our commitment to families who have lost loved ones and how we work every day to stop drug traffickers like Marlon Thompson.” 

“This defendant was responsible for fueling addiction by trafficking powerful narcotics that led to the death of a Selden man,” stated SCPD Commissioner Harrison said.  “We will never stop working together with our law enforcement partners to hold these dealers accountable as well as community groups to help the addicted get the assistance they need.”

“This case is a stark reminder of the tragic devastation that the opioid epidemic has inflicted regionally, and specifically upon Suffolk County,” said Suffolk County District Attorney Raymond A. Tierney.  “My office will continue to work collaboratively with our State and Federal law enforcement partners to aggressively pursue and prosecute dealers whose illicit drugs have caused harm or death to others.”

The evidence proved that, from January 2017 through May 2019, the defendant conspired to distribute fentanyl, heroin and cocaine base throughout Suffolk County.  On Christmas Day in 2018, the defendant supplied fentanyl to the victim, who suffered a fatal overdose at his parents’ home in Selden, New York. The defendant continued supplying fentanyl, heroin, and crack in Suffolk County for months after Koenig’s death. When Thompson was arrested, law enforcement recovered fentanyl and drug packaging materials from his basement bedroom, and also seized three illegal guns and ammunition from Thompson’s storage unit. The government’s evidence included testimony from Thompson’s co-conspirators, text messages between the defendant and drug dealers discussing their illicit business, drug paraphernalia, and thousands of dollars of bundled U.S. currency derived from the drug sales seized from the defendant’s residence.

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

The Defendant:

MARLON THOMPSON
Age: 41
Selden, New York

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

A 16-count superseding indictment was unsealed yesterday in Brooklyn charging five Russian nationals, Yevgeniy Grinin, Aleksey Ippolitov, Boris Livshits, Svetlana Skvortsova and Vadim Konoshchenok with conspiracy and other charges related to a global procurement and money laundering network on behalf of the Russian government.  Konoshchenok, a suspected officer with Russia’s Federal Security Service (FSB), was arrested in Estonia on December 6, 2022 and will undergo extradition proceedings to the United States.  Grinin, Ippolitov, Livshits and Skvortsova remain at large.  Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of U.S.-origin ammunition.  Alexey Brayman, a lawful permanent resident of the United States residing in New Hampshire, and Vadim Yermolenko, a U.S. citizen residing in New Jersey, were also arrested and charged as part of scheme.

As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector.  Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.  The defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications. 

Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, Yevgeniy Grinin and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them “instrumental to the Russian Federation’s war machine.”

As alleged in the indictment, Sertal was licensed to conduct highly sensitive and classified procurement activities by Russia’s Federal Security Service (FSB), Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB.  The Serniya network’s clients included State Corporation Rostec, the state-owned defense conglomerate; State Atomic Energy Corporation Rosatom (Rosatom); the Ministry of Defense; the Foreign Intelligence Service (SVR); and various components of the FSB, including the Department of Military Counterintelligence and the Directorate for Scientific and Technological Intelligence, commonly known as “Directorate T.”

Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, Deputy Attorney General for the Department of Justice, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, Matthew Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, and Andrew Adams, Director, Task Force KleptoCapture, announced the charges.

“The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian military’s war efforts,” said Attorney General Merrick B. Garland. “With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. I am grateful for the tireless efforts of the Department’s Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorney’s Office for the Eastern District of New York, and the FBI on this case.”

“As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine,” stated United States Attorney Peace.  “Our Office will not rest in its vigorous pursuit of persons who unlawfully procure U.S. technology to be used in furtherance of Russia’s brutal war on democracy.”                                 

“Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls,” stated Deputy Attorney General Monaco.  “By exposing the defendants’ smuggling of ammunition and transfer of sensitive U.S. technologies — from quantum computing to hypersonic weapons development —the Department of Justice is holding accountable those who are fueling Russia’s unlawful and unprovoked aggression in Ukraine.”

“The FBI’s work, with our partners, to identify and stop illegal transfers of weapons and dual use-technology to Russia shows that we can and will reach around the world to keep Americans safe,” said FBI Director Christopher Wray. “The industries that these illegal transfers could support – quantum computing, hypersonic weapons – pose great danger in the hands of our adversaries.  The FBI will remain relentless against illegal transfers that support such industries in hostile nations, while we also continue to focus on protecting strategic technology innovation here at home.”

“We continue to protect military and dual-use technologies from adversaries seeking to undermine the United States or bring harm to our allies. Russia has shown it will use any means necessary to skirt our laws, including illegally procuring sensitive electronic components, for the purpose of bolstering its intelligence services and military wartime capabilities. Today’s actions represent outstanding collaborative work by FBI New York and our partners who have relentlessly disrupted these illicit activities, a mission that has become increasingly more critical following Russia's invasion of Ukraine, and sends a strong message to those who jeopardize the national security of the United States,” stated FBI Special Agent-in-Charge Driscoll.

“The powerful export controls we’ve put in place have been successful in isolating Russia from the global economy,” said Assistant Secretary of Commerce for Export Enforcement Axelrod.  “Today’s coordinated DOJ and Commerce enforcement actions demonstrate our vigilance in uncovering Russian tactics to illicitly acquire the items they need to keep their brutal war going.”

“From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority,” said Task Force KleptoCapture Director Adams. “Today’s indictment demonstrates the reach of those controls and the United States’ commitment to choking off access to military grade equipment by the Russian regime. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin continues shopping for spare parts in North Korea.”

As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal.  Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies.  Livshits, a former resident of Brooklyn, New York, opened and controlled a variety of shell companies and associated bank accounts in the New York City area, which he used to route shipments and layer financial transactions in furtherance of the scheme.  Livshits also interfaced directly with U.S. companies—often using the alias “David Wetzky”—and made materially false statements about how the items would be used and the ultimate end user. 

Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world—including to Konoshchenok in Estonia—before eventually arriving in Russia.  Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme.

Konoshchenok—a self identified “Colonel” in the FSB—would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items.  As alleged in the indictment, on October 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles.  On November 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately twenty cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds.  Konoshchenok discussed “fabricating” business records with Livshits to conceal the ammunition shipments, on one occasion describing them as “auto parts.”  Incident to Konoshchenok’s arrest, Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of ammunition.  

If convicted, the defendants face a maximum of 30 years’ imprisonment.  The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Artie McConnell and Craig Heeren are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Ben Richmond.  The United States thanks the Estonian Internal Security Service and the Prosecutor’s Office for their valuable support.

The Defendants:

Alexey Ippolitov
AGE: 57
Moscow, Russia

YEVGENIY GRININ age: 44
Moscow, Russia

BORIS LIVSHITS
Age: 52
St. Petersburg, Russia

SVETLANA SKVORTSOVA
AGE: 41
Moscow, Russia

VADIM KONOSHCHENOK
AGE: 48
Tallin, Estonia

ALEXEY BRAYMAN
AGE: 35
Merrimack, New Hampshire

VADIM YERMOLENKO
AGE: 41
Upper Saddle River, New Jersey

E.D.N.Y. Docket No. 22-CR-409 (HG)

Fawaz Ould Ahmed Ould Ahemeid, a Mauritanian national also known as “Ibrahim Idress” and “Ibrahim Dix,” was arraigned today in federal court in Brooklyn on a six-count indictment charging him with multiple terrorism offenses, including his roles in the March 7, 2015 attack on the La Terrasse restaurant in Bamako, Mali, in which five people were killed; the August 7, 2015 attack on the Hotel Byblos in Sevare, Mali, in which 13 individuals – including five United Nations workers – were killed; and the November 20, 2015 attack on the Radisson Blu Hotel in Bamako, Mali, in which 20 victims were killed, including U.S. citizen Anita Ashok Datar.  The defendant, who was transferred to U.S. custody in Mali, arrived at John F. Kennedy International Airport in Queens, New York, on December 9, 2022.  United States Magistrate Judge James R. Cho ordered the defendant detained pending trial.

The indictment charges the defendant with the murder of Ms. Datar; the unlawful use of firearms in connection with a crime of violence causing the death of Ms. Datar; conspiracy to provide material support to the designated foreign terrorist organizations al-Qaeda in the Islamic Maghreb (“AQIM”) and al-Murabitoun; provision and attempted provision of material support to AQIM and al-Murabitoun; and unlawful use of explosives.

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, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.

“Today, we have made clear that the United States is steadfast in our commitment to bring to justice those who commit barbaric acts of terrorism targeting innocent victims including, as in this case, an American aid worker who was killed more than 4,000 miles from her home in Maryland,” stated United States Attorney Peace.  “As a result of our work with our law enforcement partners here and abroad, the defendant now faces justice in a U.S. courtroom for the carnage that was carried out allegedly at his direction.”  

Mr. Peace expressed his thanks to the government of Mali for their continued support and assistance throughout this investigation, as well as to the FBI’s Joint Terrorism Task Force, the Justice Department’s Office of International Affairs, and United States Department of State.

“Ahemeid planned and executed deadly attacks targeting westerners, including Americans, and will now be brought to justice,” stated Assistant Attorney General Olsen.  “Let this be a reminder to any who would use violence against our people: no matter how far you run or how long you hide, we will not relent in our efforts to hold you accountable.”

“The defendant's alleged actions — inhumanely plotting and carrying out ruthless terrorist attacks — were not forgotten and will not be forgiven.  The New York Joint Terrorism Task Force and our law enforcement partners are resolute in our determination to ensure those willing to commit heinous acts of terrorism face the consequences of their actions as we seek justice for the victims of the attacks,” stated FBI Assistant Director-in-Charge Driscoll.

“International terrorism remains a grave threat to safety and freedom around the world,” stated NYPD Commissioner Sewell.  “This indictment details the defendant’s callous disregard for human life, and it reinforces the NYPD’s unwavering commitment to bringing terrorists and all those who support them to justice. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s National Security Division, the FBI’s New York Field Office, and everyone else who worked on this critical, wide-ranging case.”

La Terrasse Restaurant Attack

As alleged in the indictment, the previously filed criminal complaint and other publicly filed documents, Ahemeid joined AQIM in or around 2007.  Subsequently, Ahemeid planned and committed at least three major terrorist attacks against Western targets in Mali.  On March 7, 2015, Ahemeid, armed with two AK-47 assault rifles, a pistol, and grenades, committed an attack on the La Terrasse restaurant in Bamako, Mali, killing five people.  That same day, al-Murabitoun issued a public statement claiming responsibility for the attack.

Hotel Byblos Attack

Following the La Terrasse attack, Ahemeid helped plan and carry out the August 7, 2015 attack on the Hotel Byblos in Sevare, Mali.  During this attack, a gunman armed with an AK-47 assault rifle and wearing a suicide vest entered the Hotel Byblos and opened fire.  The attack caused the deaths of 13 victims, including five United Nations workers.  The gunman was killed in the attack.  Al-Murabitoun subsequently issued a public statement claiming responsibility for the attack.

Radisson Blu Hotel Attack

Ahemeid, along with others, planned and oversaw the November 20, 2015 terrorist attack on the Radisson Blu Hotel in Bamako, Mali.  On the morning of November 20, 2015, two men attacked the Radisson Blu, a hotel frequented by Western visitors.  The attackers, wearing Western clothing and armed with AK-47 assault rifles and hand grenades, moved from floor to floor of the hotel, shooting innocent victims as they progressed.  Security forces responded to the scene and both attackers were ultimately killed.  The attack resulted in the deaths of 20 victims, including U.S. citizen Anita Ashok Datar.  Datar, a guest at the Radisson Blu, was shot multiple times and died at the scene as a result of the gunshot wounds.  Datar was a 41-year-old public health expert from Takoma Park, Maryland, who was in Mali working for an international development firm assisting the United States Agency for International Development.  In addition to the 20 deaths, the attack also wounded at least seven people.  Following the attack, AQIM issued a public statement claiming responsibility for the attacks on behalf of AQIM and al-Murabitoun, stating “Two heroes infiltrating the Radisson Hotel in Mali, may God accept them.  #Al-Qa’ida_in_West_Africa #Ansar_al_din #Al_Murabitun,” along with photographs of the terrorists who committed the murders. 

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Jonathan Algor and Michael T. Keilty are in charge of the prosecution, with assistance provided by Trial Attorney Stephanie Sweeten of the Counterterrorism Section of the National Security Division of the Department of Justice.

The Defendant:

Fawaz Ould Ahmed Ould Ahemeid
Age: 44
Mauritania

E.D.N.Y. Docket No. 20-CR-502 (BMC)

Fawaz Ould Ahmed Ould Ahemeid, aka Ibrahim Idress,  aka Ibrahim Dix, 44, of Mauritania, was arraigned earlier today in federal court in the Eastern District of New York on a six-count indictment charging him with multiple terrorism offenses, including for his roles in the March 7, 2015 attack on the La Terrasse restaurant in Bamako, Mali, in which five people were killed; the Aug. 7, 2015 attack on the Hotel Byblos in Sevare, Mali, in which 13 individuals – including five United Nations workers – were killed; and the Nov. 20, 2015 attack on the Radisson Blu Hotel in Bamako, Mali, in which 20 victims were killed, including U.S. citizen Anita Ashok Datar. The defendant, who was transferred to U.S. custody in Mali, arrived at John F. Kennedy Airport in Queens, New York, on Dec. 9, 2022, and appeared today before U.S. Magistrate Judge James R. Cho, who entered a permanent order of detention pending trial.

“Ahemeid planned and executed deadly attacks targeting westerners, including Americans, and will now be brought to justice,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Let this be a reminder to any who would use violence against our people: no matter how far you run or how long you hide, we will not relent in our efforts to hold you accountable.”

“Today, we have once again made clear that we are, and will remain, steadfast in our commitment to working with our law enforcement partners here and abroad to bring to justice those who commit violent acts of terrorism targeting innocent American civilians, wherever they may be found,” said U.S. Attorney Breon Peace for the Eastern District of New York.

"Bringing Ahemeid to the United States to face the charges against him is an important step in achieving justice for those harmed by acts of terrorism, including the American citizen killed in the Radisson Blu Hotel attack," said Assistant Director Robert R. Wells of the FBI's Counterterrorism Division. "The FBI will not be deterred by the passage of time or geographical distance as we work with our partners to hold those who commit acts of terrorism accountable."

As detailed in the indictment, the previously filed criminal complaint and other publicly filed documents, Ahemeid joined AQIM in or around 2007. Subsequently, Ahemeid planned and committed at least three significant terrorist attacks against Western targets in Mali. On March 7, 2015, Ahemeid, armed with two AK-47 assault rifles, a pistol, and grenades, committed an attack on the La Terrasse restaurant in Bamako, Mali, killing five people. That same day, al-Murabitoun issued a public statement claiming responsibility for the attack.

Following the La Terrasse attack, Ahemeid helped plan and execute the Aug. 7, 2015 attack on the Hotel Byblos in Sevare, Mali, including by conducting surveillance of the hotel prior to the attack. During this attack, a lone gunman armed with an AK-47 assault rifle and equipped with a suicide vest entered the Hotel Byblos and opened fire. The attack resulted in the deaths of 13 individuals, including five United Nations workers. The gunman was killed in the attack. Al-Murabitoun subsequently issued a public statement claiming responsibility for the attack.

Finally, Ahemeid, along with others, planned and oversaw the Nov. 20, 2015 terrorist attack on the Radisson Blu Hotel in Bamako, Mali. Beginning in the morning of Nov. 20, 2015, two men attacked the Radisson Blu, a hotel frequented by Western visitors. The attackers, wearing Western clothing and armed with AK-47 assault rifles and hand grenades, moved from floor to floor of the hotel, shooting innocent victims as they progressed. Security forces responded to the scene and both attackers were ultimately killed.

The attack resulted in the deaths of 20 victims, including U.S. citizen Anita Ashok Datar. Datar, a guest at the Radisson Blu, was shot multiple times and died at the scene as a result of the gunshot wounds. Datar was a 41-year-old public health expert from Takoma Park, Maryland, who was in Mali working for an international development firm assisting the United States Agency for International Development. In addition to the 20 deaths, the attack also wounded at least seven people.

Following the attack, AQIM issued a public statement claiming responsibility for the attacks on behalf of AQIM and al-Murabitoun, stating “Two heroes infiltrating the Radisson Hotel in Mali, may God accept them. #Al-Qa’ida_in_West_Africa #Ansar_al_din #Al_Murabitun.”  The tweet included photographs of the two attackers holding AK-47s and each attacker’s nom de guerre.

Assistant U.S. Attorney Jonathan Algor and Michael Keilty is in charge of the prosecution, with assistance provided by Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section.

The indictment charges the defendant with (1) the murder of Anita Ashok Datar; (2) the unlawful use of firearms in connection with a crime of violence; (3) causing the death of Anita Ashok Datar through the use of a firearm; (4) conspiracy to provide material support to the designated foreign terrorist organizations al-Qaeda in the Islamic Maghreb (AQIM) and al-Murabitoun; (5) provision and attempted provision of material support to AQIM and al-Murabitoun; and (6) unlawful use of explosives. If convicted, he faces a maximum statutory penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Government of Mali provided continued support and assistance throughout this investigation, as did the Joint Terrorism Task Force and U.S. Department of State.

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

Breon Peace, United States Attorney for the Eastern District of New York, and Letitia James, New York State Attorney General, announced today a settlement agreement with a Brooklyn-based licensed home care service agency (LHCSA) White Glove Community Care, Inc. (White Glove). The settlement agreement addresses allegations that White Glove violated the federal False Claims Act and New York State’s False Claims Act in claiming that it paid its home care aides the minimum wages required under New York State law. The agency received payments from Medicaid, which is funded in part by the federal government, and is entitled to receive that money only if it paid its aides the required wages and benefits.

“The arduous work that these aides do, day after day, ensures that some of our most vulnerable neighbors receive the care and are shown the dignity that they deserve,” stated United States Attorney Peace. “This settlement—the third in our continuing investigation of certain licensed home care service agencies—reflects this Office’s ongoing commitment to providing home health aides the hard-earned benefits guaranteed them under New York law and the Medicaid program.”

Mr. Peace thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General for its partnership in the government’s investigation and resolution of this important case.

“Home health aides work tirelessly to provide critical care for our most vulnerable neighbors, and they deserve to receive adequate and fair compensation for their hard work,” said Attorney General James. “White Glove cheated their employees, and they cheated the everyday New Yorkers whose tax dollars fund the Medicaid program. My office will always stand up against bad actors, and ensure all workers get fair pay for their work.”

The New York Wage Parity Act sets minimum wage and benefits requirements for LHCSAs that employ home care aides who render services to Medicaid recipients in New York City and in Nassau, Suffolk, and Westchester counties. Under the Wage Parity law, which is funded by Medicaid, aides are to be paid a minimum amount in total compensation. That compensation comes in the form of a base wage and a supplemental benefit. The base wage must be paid in cash. The benefit portion can include the value of vacation, holiday, and sick pay, among other things. It can also include health insurance, pension plans, or educational assistance. Today, the minimum amount of total compensation for an aide in New York City is $19.09 per hour; for Nassau, Suffolk, and Westchester Counties, the minimum is $18.22 per hour.

Home health aides perform all aspects of personal care for sick or homebound patients and frequently work long shifts lasting up to 24 hours. The tasks performed in caring for patients are demanding and can consist of assisting or lifting patients out of bed and bathing, dressing, grooming, preparing meals for and, in some instances, feeding them. Patients may suffer from physical or mental disorders that can make the work of the aides physically and emotionally taxing. In fact, it was in recognition of the difficulty of this work that New York passed the Wage Parity Act.

The Settlement

This Office, in coordination with the New York State Attorney General’s Office’s Medicaid Fraud Control Unit, commenced an investigation after whistleblowers alleged that certain LHCSAs had knowingly defrauded the federal government and New York State by underpaying home health aides in violation of the Wage Parity Act. The government’s investigation revealed that White Glove certified its compliance with the law, even though it had not paid its aides the requisite compensation, and sought and received reimbursement from Medicaid.

Under the terms of the agreement with the United States and New York State, White Glove has agreed to pay $505,616.98 to the United States and $758,425.47 to New York State for conduct that took place in the years 2012 to 2018.

In addition to the payments to resolve the government’s fraud claims, White Glove is now paying its aides the wages and benefits it was required to pay under the Wage Parity Act, including the wages that were owed to current and former aides in prior years. It has agreed to pay its aides $2 million for past due wages pursuant to a separate agreement it reached with the New York State Office of Attorney General Labor Bureau. Moreover, White Glove has admitted, acknowledged, and accepted responsibility for underpaying its home health aides by failing to pay Wage Parity Act rates.

Today’s settlement with White Glove follows similar settlements with the LHCSAs All American Homecare Agency and Crown of Life Care NY LLC, announced earlier this year.

The case is being handled by Assistant U.S. Attorneys Michael Blume and Sean Greene-Delgado of the Office’s Civil Division.

A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California.  Derkach allegedly purchased the properties in violation of new U.S. sanctions imposed earlier this year and concealed his interest in the transactions. Derkach remains at large.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Andrew Adams, Director of Task Force Kleptocapture announced the charges.

“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing, and capable of exploiting our banking system in order to advance his illicit goals.  The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections,” stated United States Attorney Peace.  “This Office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”

“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services. While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions,” stated Assistant Director-in-Charge Driscoll. 

“Attempting to enjoy the safety, security, and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force.  It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections,” said Task Force KleptoCapture Director Andrew C. Adams.

Since 1998, except for a hiatus from November 2006 to November 2007, Derkach was a member of the Verkhovna Rada (Rada), Ukraine’s Parliament.  During his time in the Rada, Derkach was a member of the Party of Regions, a pro-Russia political party, which was the ruling party in Ukraine from 2010 until the 2014 Ukrainian Euromaidan Revolution.  On September 10, 2020 the United States Department of Treasury’s Office of Foreign Asset Control (OFAC) sanctioned Derkach and several companies he controlled pursuant to Executive Order 13848, calling him “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services” who “waged a covert influence campaign” to undermine the 2020 U.S. presidential election.

As alleged in the indictment, beginning in 2013, Derkach and a co-conspirator devised a scheme to purchase and maintain two luxury condominiums in Beverly Hills while concealing his interest in the transactions from U.S. financial institutions.  Specifically, Derkach used the services of a corporate nominee, a multi-tiered structure of California-based shell companies, and numerous U.S. bank and brokerage accounts. Using this framework, Derkach wired approximately $3.92 million to the nominee from overseas accounts in Latvia and Switzerland belonging to companies registered in the British Virgin Islands.  The money was then used to pay $3.2 million in cash in the name of a corporate entity set up by the nominee, with Derkach having no visible affiliation with the purchase.  The remaining $800,000 was invested in a brokerage account maintained by the nominee for Derkach’s benefit and used to pay expenses on the condominiums, including taxes, homeowners’ fees, and utilities.  Because Derkach had fraudulently obscured details about his identity and involvement from the financial institutions holding the aforementioned bank and brokerage accounts, he prevented those financial institutions from moving funds into blocked accounts, and instead caused those financial institutions to engage in transactions involving blocked funds and transactions for the benefit of the condominiums, which were blocked property pursuant to the sanctions.

A parallel civil forfeiture action has been initiated to seize the condominiums and the remaining funds in the U.S. brokerage and bank accounts that Derkach controls. 

If convicted, Derkach faces a maximum of 30 years’ imprisonment.  The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Artie McConnell and Jonathan E. Algor are in charge of the prosecution, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section and Litigation Analyst Ben Richmond.  Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.

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

The Defendant:

ANDRII DERKACH
Age:  55
Dnipropetrovsk, Ukraine

E.D.N.Y. Docket No.: 22-Cr-432 (DLI)

A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach, 55, of Ukraine, with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy, and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California. Derkach allegedly concealed his interest in the transactions and violated sanctions imposed in 2020. Derkach remains at large. The charges and forfeiture action announced today include the first use of criminal and forfeiture powers targeting the concealment of ownership by senior foreign political officials, passed as part of the National Defense Authorization Act of 2021.

“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing and capable of exploiting our banking system in order to advance his illicit goals,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections. This office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”

“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions.”

“Attempting to enjoy the safety, security and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force,” said Task Force KleptoCapture Director Andrew C. Adams. “It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections.”

According to the indictment filed in the Eastern District of New York, on or about Sept. 10, 2020, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Derkach for his efforts to influence the 2020 U.S. Presidential election. According to information publicly released by OFAC, Derkach was “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services,” who “waged a covert influence campaign” to undermine the 2020 Presidential election. As alleged, beginning in at least 2013 and continuing after Derkach’s OFAC designation, Derkach and a co-consiprator (CC-1) devised a scheme to purchase two luxury condominiums in Beverly Hills, California, (the Subject Condominiums) while concealing Derkach’s interest in the transactions from U.S. financial institutions. The scheme utilized a U.S.-based financial services professional (the Nominee). The Nominee assisted Derkach and CC-l in setting up and managing several corporate entities designed to hide Derkach’s ownership interest in the Subject Condominiums and related financial holdings. The Nominee understood that Derkach and CC-1 would occupy one of the Subject Condominiums, and the other would be used by Derkach’s children.

At the direction of Derkach and CC-1, the Nominee established two corporate entities in California. As part of the scheme, Derkach and CC-l misrepresented details about Derkach’s identity to the Nominee. Derkach and CC-l caused the Nominee to falsely represent ownership of funds and bank accounts to U.S. financial institutions, thereby deceiving those institutions into processing transactions related to, involving and on behalf of Derkach and his blocked property.

At all times relevant to this indictment, and since the date of his OFAC designation, Derkach has been aware of and actively working to evade the OFAC sanctions placed upon him. As alleged, on or about Sept. 10, 2020, the day that OFAC designated Derkach, Derkach posted a response on Facebook, stating the “decision was drawn up on a piece of paper by several congressman of [a U.S. political party] and inspired by representatives of the State Department.”

Moreover, in the years and months preceding his designation, the defendant spent significant time in the United States, including at the Subject Condominiums. In conducting that travel to, and spending time in, the United States, Derkach was actively involved in deceiving U.S. law enforcement and border authorities even prior to his SDN designation. For example, in December 2019 and February 2020, Derkach was in the United States to meet with U.S. persons and conduct media appearances. To obtain a U.S. visa, and to ostensibly attend meetings and conferences related to human rights issues in Ukraine, Derkach retained the services of a U.S.-based consulting firm (Firm-1). The written contract purported to be between Firm-l and a Ukrainian shipping company and did not refer to Derkach, notwithstanding Derkach’s direct involvement in the provision of services that the contract purported to reflect. In or about and between July 2018 and December 2018, Derkach paid Firm-l approximately $100,000. In a July 2018 email communication with Firm-l, Derkach’s representative expressed concern that, “given the fact that my client [Derkach] is a politically exposed person, as well as the statements he made concerning Ukraine’s interference into U.S. elections and the insider information we have in our possession,” the visa application process could be potentially complicated for Derkach.

Derkach, through the Nominee, continued to conduct U.S. financial transactions in support of his real estate holdings even after Sept. 10, 2020, the day that OFAC designated the defendant Derkach and added him to the SDN List. Because Derkach and CC-l had obscured details about Derkach’s identity and involvement from relevant financial institutions, Derkach and CC-1 succeeded for a time in conducting financial transactions valued at several hundred thousands of dollars in violation of OFAC’s sanctions.

If convicted, the defendant faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Concurrent with today’s announcement, the U.S. Attorney’s Office for the Eastern District of New York has filed and announced a civil forfeiture suit naming the Subject Condominiums and two financial accounts as defendants in rem, seeking forfeiture of those properties on the basis of their involvement in, and status as proceeds of, criminal violations of the federal money laundering laws, the IEEPA, and federal law criminalizing the concealment of assets of senior foreign political figures.

U.S. Attorney Breon Peace for the Eastern District of New York, Task Force KleptoCapture Director Andrew C. Adams and Special Agent in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.

Assistant U.S. Attorneys Artie McConnell and Jonathan E. Algor for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section. Assistant U.S. Attorney Madeline O’Connor for the Eastern District of New York is handling the forfeiture matters. The Justice Department’s Office of International Affairs provided valuable assistance.

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

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

Two New York diagnostic testing facility owners were sentenced today to three years in prison for their roles in a more than $18 million health care fraud scheme.

According to court documents, Tea Kaganovich, 50, and Ramazi Mitaishvili, 62, both of Brooklyn, are a married couple that co-owned several diagnostic testing facilities in Brooklyn. The couple paid over $18 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili also falsely reported to the IRS that the illegal kickback payments were legitimate business expenses and therefore submitted tax forms that under-reported business income and claimed deductions to which they were not entitled.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Acting Special Agent in Charge Susan Frisco of the Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office; and Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office made the announcement.

The HHS-OIG, FBI, and IRS-CI investigated the case.

Assistant Chief Debra Jaroslawicz and Trial Attorney Sarah Wilson Rocha of the Justice Department’s Fraud Section prosecuted the case. Assistant U.S. Attorney Tanisha Payne handled forfeiture matters.

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 Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

Today, a federal jury in Brooklyn convicted James Albert of conspiracy to violate the Travel Act and conspiracy to distribute controlled substances while he was incarcerated at the George R. Vierno Center at Rikers Island (GRVC) as part of a scheme to bribe correction officers to smuggle illegal drugs and other contraband into the jail for sale to other inmates.  The verdict followed a four-day trial before United States District Judge Ann M. Donnelly.  When sentenced, Albert faces a maximum of 15 years in prison.

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

“Today’s verdict holds the defendant accountable for conspiring with corrupt correction officers to facilitate his lucrative drug-selling business from which he generated tens of thousands of dollars from his Rikers Island jail cell.  Such lawless conduct by the defendant and his co-conspirators undermines the orderly running of the institution and endangers the safety of other incarcerated individuals and Department of Correction personnel,” stated United States Attorney Peace.  “This Office will continue working with our federal and local law enforcement partners to disrupt the flow of illegal narcotics and other contraband into correctional facilities.”

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

As proven at trial, while he was incarcerated at GRVC between February and June 2019, Albert orchestrated a scheme to bribe at least two officers to bring marijuana, suboxone strips, and other contraband into GRVC for sale and distribution to other inmates.  Albert also enlisted his wife, co-defendant Celena Burgess, to receive money from inmates and pay thousands of dollars in bribes to the correction officers on the defendant’s behalf using the electronic money-transfer platform Cash App. 

The government’s evidence included testimony from Patrick Legerme, a former New York City Correction Officer who accepted bribes from Albert to smuggle marijuana into the jail and described how he smuggled drugs into the jail.  Legerme pleaded guilty to conspiring to accept bribes and is awaiting sentencing.  The government’s evidence also included testimony from Burgess that she managed the Cash App transactions for the defendant and received payments from other inmates for the items that Albert had sold them.  Burgess testified as part of a deferred prosecution agreement with the government.  In addition to financial and phone records and expert testimony, the jury heard recorded telephone calls in which inmates used coded language in their conversations.  For example, “Oakland Raider jerseys” referred to marijuana, “oranges” was code for suboxone strips, and “Pink Panties” referred to a correction officer.

The government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Joy Lurinsky and Andrew D. Reich with the assistance of Paralegal Specialist Rachel Friedman.

The Defendant:

JAMES ALBERT      
Age:  45
Comstock, New York

E.D.N.Y. Docket No. 20-CR-64 (AMD)

Earlier today, in federal court in Central Islip, Jeffrey Chartier, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in publicly traded companies, was sentenced by United States District Judge Joanna Seybert to 10 years’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and money laundering.  The Court also ordered Chartier to pay $1,022,398.89 in forfeiture and $6,083,603.45 in restitution.  Chartier and co-defendant Lawrence Isen were convicted of the charges by a federal jury in March 2020 following a six-week trial.  Isen is awaiting sentencing.

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

“Jeffrey Chartier and his confederates lined their pockets with the lifetime savings of hard-working citizens they victimized all around the country,” stated United States Attorney Peace.  “Today’s sentences should serve as a reminder to so-called white-collar criminals that this Office will hold them accountable for their selfish actions and the devastation they inflict upon the lives and families of others.”

Mr. Peace also thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.

From 2014 to 2016, Isen, Chartier and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of stock in struggling companies with poor prospects, and off-loaded it onto unsuspecting victims who were often elderly and vulnerable. 

The evidence at trial proved that from approximately 2014 to 2016, Chartier paid the boiler room to illegally prop up the stock price of National Waste Management Holdings, Inc., trading under the ticker symbol NWMH, and CES Synergies, Inc., trading under ticker symbol CESX, through manipulative trading, and also to dump his own NWMH and CESX shares on innocent investors through illegal matched trades.  NWMH and CESX were previously profitable private companies that were each run by individuals seeking to retire.  Chartier persuaded them to pay him in large blocks of stock to take their companies public on promises that doing so would sustain the companies for the future.  Instead, Chartier hired the boiler room, which fraudulently inflated these companies’ share prices using high-pressure sales tactics, and then dumped his own shares through matched trades, which caused the companies’ stock prices to plummet. As part of the sentencing, the Court ordered the repatriation of Chartier’s remaining shares in NWMH and CESX.

The evidence at trial showed that Isen colluded with crooked investors, both in the United States and overseas, to dump large volumes of shares in Hydrocarb Energy Corp., trading under the ticker symbol HECC, and Intelligent Content Enterprises, Inc. trading under the ticker symbol ICEIF, on the victims.  He did so by, among other things, connecting the investors with the boiler room; negotiating the terms of the arrangements between them; and managing the relationships between them.  Isen assisted the boiler room in its illegal cold call campaigns that used lies and high-pressure sales tactics to lure victims, by, among other things, transferring money and stock required by the boiler room for the campaigns; working with the boiler room to fill the duped victims’ orders with Isen’s crooked investors’ stock; and creating fraudulent stock purchase agreements, consulting agreements and invoices to cover up the illegal conduct. 

The government has calculated that the conspiracy’s market manipulation fraudulently inflated the stock price of HECC, ICIEF, NWMH and CESX and one other company by more than $147 million.  All 16 defendants charged in this case have been convicted. 

Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution.  Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case. 

The Defendants:

JEFFREY CHARTIER
Age: 59
Sunny Isles, Florida

LAWRENCE ISEN
Age: 69
San Diego, California

Docket No. 17-CR-372 (JS)

Earlier today, at the federal courthouse in Central Islip, Sharon Gardner, the former Director of Food Services for the Hempstead Union Free School District (“HUFSD”), pleaded guilty to conspiracy to commit honest services wire fraud in connection with her participation in a kickback scheme.  Gardner’s co-defendant, Maria Caliendo, the owner of food service providers Smart Starts NY, Inc. (“Smart Starts”) and Prince Umberto’s restaurant in Franklin Square, previously pleaded guilty on October 27, 2022 to the same offense and is awaiting sentencing.  Today’s proceeding was held before United States District Judge Joanna Seybert.  When sentenced, the defendants each face up to 20 years in prison.  As part of their respective pleas, Gardner has agreed to forfeit approximately $120,000 and Caliendo has agreed to forfeit approximately $160,000.

Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Bethanne M. Dinkins, Special Agent-in-Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG); Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General, Eastern Regional Office; Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York; Anne T. Donnelly, Nassau County District Attorney; and Thomas P. DiNapoli, New York State Comptroller, announced the guilty plea.

“Gardner abused her position of trust as a school official in order to enrich herself with kickbacks she used to pay for overseas vacations and home furnishings.  Now she will face the consequences for her greed,” stated United States Attorney Peace.  “This Office will continue to vigorously investigate and prosecute corrupt officials who illegally profit from our public institutions.” 

“As today's guilty plea demonstrates, the defendant exploited her role in order to take advantage of the taxpayers for her own personal enrichment.  The FBI and our Law Enforcement partners are committed to fighting public corruption and ensuring that those officials who abuse the trust placed in them are held accountable for their actions in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.

USDA-OIG Special Agent-in-Charge Dinkins stated, “The School Breakfast Program (SBP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent.  This joint investigation identified individuals who sought to profit from the SBP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”

“I am proud of the work of OIG Special Agents and our law enforcement partners in holding Ms. Gardner accountable for her criminal actions,” stated DOE-OIG Special Agent-in-Charge Harris.  “We will continue to aggressively pursue those who misappropriate federal funds for their own selfish purposes.  America’s students and taxpayers deserve nothing less.”

“This defendant leveraged her power as a Hempstead School District official to line her own pockets and those of her co-defendant for nearly two years,” stated Nassau County District Attorney Donnelly.  “Gardner orchestrated the scheme, shirking her responsibilities to follow a legitimate bidding process and handing over the contract to Maria Caliendo, a local restaurant owner who had previously hosted Gardner’s holiday parties. Public funds are precious and finite. Individuals who exploit their positions to access those funds for their own financial gain will be found and prosecuted. I thank our law enforcement partners for their diligent work ensuring these defendants are now held accountable for their crimes.”

“Gardner exploited her position and betrayed the students, parents and taxpayers of the Hempstead School District to enrich herself,” stated Comptroller DiNapoli.  “I thank United States Attorney Breon Peace, Nassau County District Attorney Anne Donnelly, the FBI and the Inspectors General for the Departments of Agriculture and Education for their partnership in holding Gardner accountable for her actions.”  

According to court filings and facts presented at the plea proceeding, Gardner, in her capacity as the Director of Food Services for HUFSD, helped secure lucrative contracts for Caliendo’s company, Smart Starts, to provide prepackaged breakfast meals for Hempstead public school students.  In exchange, Caliendo kicked back a portion of the contract proceeds totaling more than $100,000 to Gardner through fraudulent payroll deposits and other payments.  To conceal the illegal nature of the arrangement, those payments were deposited into a bank account that was created in the name of one of Gardner’s family members.  The kicked back funds were spent by Gardner on international vacations, a leased vehicle, and home furnishings.  Approximately $13,000 in kicked back funds were also withdrawn by Gardner in cash from ATMs located near her home and workplace.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Anthony Bagnuola and Charles P. Kelly are in charge of the prosecution.

The Defendants:

SHARON GARDNER
Age:  56          
Lindenhurst, New York

MARIA CALIENDO
Age:  57
Elmont, New York

E.D.N.Y. Docket No. 22-CR-229 (JS)

Carlos Silva Arellano, also known as “Bolas,” was arraigned today before United States Magistrate Judge Lois Bloom at the federal courthouse in Brooklyn on an indictment charging him with participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses.  The defendant, a Mexican citizen, was extradited from Mexico to the United States on November 23, 2022.  Silva Arellano was ordered detained pending trial. 

Breon Peace, United States Attorney for the Eastern District of New York, and Anne Milgram, Administrator, United States Drug Enforcement Administration (DEA), announced the extradition and arraignment.

“As alleged, the defendant, a trusted member of a notoriously violent drug cartel, participated in the importation of thousands of kilograms of dangerous drugs into our country for sale in our communities.  He will now answer to the American justice system for his role in the crimes alleged,” stated United States Attorney Peace.  “Our Office is committed to working with our international partners to dismantle destructive drug trafficking organizations, wherever they are.”

Mr. Peace extended his appreciation to the DEA’s Los Angeles and Mexico City, Mexico offices, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico.

“The H-2 Cartel and its associates have smuggled multi-ton quantities of heroin, cocaine, and methamphetamine into our country for years, using intimidation and violence to build and protect their criminal empire,” said DEA Administrator Milgram. “The continuous flood of addictive and dangerous drugs into the United States remains a threat to the safety and health of our communities. Today’s extradition highlights the important work of DEA, alongside our U.S. and global partners, to bring dangerous drug traffickers to justice.” 

According to the indictment and court filings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez.  The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return.  In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence and is associated with numerous homicides.  

Between June 2013 and December 2016, the defendant allegedly conspired with the H-2 Cartel to smuggle large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into the United States and distribute the drugs throughout the country, including in the Eastern District of New York.  The defendant allegedly established heroin distribution networks on behalf of the H-2 Cartel, coordinating with and directing several individuals to receive and sell large amounts of heroin. 

The extradition of Silva Arellano is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris and Andrew D. Wang are in charge of the prosecution. 

The Defendant:

CARLOS SILVA ARELLANO
Age: 36
Mexico

E.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA)

Earlier today, in federal court in Central Islip, Nelson Argueta-Quintanilla, also known as “Mendigo”, a member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” was sentenced by United States District Judge Gary R. Brown to 327 months in prison for his role in the murder of Oscar Acosta, whose body was found on the grounds of an abandoned psychiatric hospital in Brentwood, and a subsequent attempt to shoot and kill rival gang members on Lukens Avenue in Brentwood.  The defendant, a self-admitted member of the Sailors Locos Salvatruchas Westside (Sailors) clique, pleaded guilty in September 2021 to racketeering and admitted to his involvement in the Acosta murder and Lukens Avenue shooting, as well as narcotics trafficking on behalf of the MS-13.  

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, 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 sentence.

“Demonstrating the defendant’s complete disregard for human life, today’s sentence is a fitting punishment for a brutal murder followed by another reckless shooting,” stated U.S. Attorney Peace. “This Office and our law enforcement partners remain committed to holding violent actors, including gang members, accountable for the fear, destruction, and death they bring to our communities.”

Argueta-Quintanilla and other MS-13 members targeted Acosta for death because he previously had associated with the MS-13, but later began associating with the rival 18th Street gang.  On April 29, 2016, a group of MS-13 members, including the defendant, gathered in a wooded area near an elementary school in Brentwood where they learned a fellow MS-13 member was meeting Acosta to smoke marijuana.   When Acosta arrived in the woods, the defendant and the other gang members repeatedly struck Acosta with a large tree branch, knocking him unconscious.  They then called the leader of the Sailors clique who arrived at their location with additional members of the gang.  The MS-13 members decided to move Acosta to a more isolated area.  They tied his hands and feet together and carried Acosta into the trunk of a car.  Two cars of gang members, one with Acosta’s body in the trunk, ultimately drove to a secluded wooded area in Brentwood behind several warehouses and adjacent to the grounds of an abandoned psychiatric hospital.  Once they arrived, the MS-13 members carried Acosta, still alive, into the woods.  Once in the woods, the defendant and three other MS-13 members took turns striking Acosta with a machete.  The MS-13 members then put Acosta in a shallow grave, covered him with dirt, and fled the area.  On September 16, 2016, while searching for the victim of a different MS-13 murder, law enforcement found Acosta’s body, which was in a shallow grave, and his hands and feet were still bound.

Separately, on the evening of August 10, 2016, the defendant agreed with other Sailors clique members to drive around Brentwood hunting for rival gang members to kill.  After observing a number of men standing outside of a house on Lukens Avenue, who they believed were members of the rival gang Goon Squad, the defendant and another MS-13 member, armed with .45 and .40 caliber handguns, respectively, got out of their car, approached the house and opened fire at the group.  The defendant fired multiple shots with the .45 caliber handgun.  One of the .40 caliber bullets fired by the other MS-13 member traveled through the bedroom wall of an adjacent house and struck the headboard of an elderly woman’s bed.  Fortunately, no one was injured in the shooting.

On May 2, 2018, the defendant was arrested on a federal warrant in connection with this case.  At the time, he was in immigration custody and had been since June 27, 2017.

Today’s sentencing is the latest accomplishment in a series of federal prosecutions by the USAO-EDNY targeting members and associates of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates 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, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and 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 John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution.

The Defendant:

NELSON ARGUETA-QUINTANILLA (also known as “Mendigo”)
Age: 25
Residence: formerly of Central Islip and Brentwood, New York

E.D.N.Y. Docket No.:  16-CR-403 (S-7) (GRB)

Earlier today, a federal jury in Brooklyn convicted Lorenzo Bailey, Quincy Battice, Jean Fremont, and Oluwagbenga Agoro on multiple counts of a superseding indictment charging them with conspiracy to murder rival gang members in-aid-of racketeering, attempted murder in-aid-of racketeering, attempted assault with a dangerous weapon in-aid-of racketeering, assault with a dangerous weapon in-aid-of racketeering and possessing, brandishing and discharging a firearm during a crime of violence in connection with multiple shootings in Brooklyn in November 2020.  Bailey, Battice, Fremont, and Agoro are all members or associates of the Flatbush-based Folk Nation Gangster Disciples, also known as “GD.”  Bailey and Fremont are also leaders of the No Love City (NLC) subset of GD, with Fremont serving on NLC’s five-member “Steering Committee,” and Bailey serving as the set’s “Chief of Security.”  Additionally, Agoro was convicted of threatening physical violence in connection with a plan to commit extortion.  The verdicts followed a five-week trial before United States District Judge William F. Kuntz, II.  When sentenced, the defendants each face a maximum of life in prison; Agoro and Fremont face mandatory minimum sentences of 20 years, and Bailey and Battice face mandatory minimum sentences of 10 years.  Four other participants in the shootings previously pleaded guilty.

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

“In senseless retaliation for the theft of a gold chain, our Brooklyn communities were terrorized by gangs on a violent gun rampage that left three victims wounded in four separate shootings over a two-day period,” states United States Attorney Peace. “The residents of this district deserve to walk the streets of our communities without fear of falling victim to gun violence.  Today’s verdict sends a resounding message that defendants who display a callous disregard for human life and safety will be met with the full force of the law and brought to justice.”

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office; Kings County District Attorney’s Office, and the New York City Police Department (NYPD) for their assistance in the case.

As proven at trial, the defendants participated in four shootings over a two-day period stemming from the snatching of a gold chain and pendant from Fremont by rival gang members following the filming of a music video in Brooklyn.  News of the theft spread online, along with photos of the stolen necklace.  In response to ridicule posted on social media about the theft, the defendants plotted retaliation against rival gang members. 

The November 2020 Shootings

As proven at trial, on November 7 and 9, 2020, Agoro, Bailey, Battice, Fremont and others carried out four separate drive-by shootings in Canarsie, Prospect Park South, and Brownsville, during which three victims were wounded.  In the first November 7 shooting, Agoro, Bailey, Battice, Fremont and others drove to Canarsie, where they shot at a group of individuals.  The defendants then drove back to one of the shooter’s residences, before setting out again for a second shooting in Canarsie, during which two individuals were wounded in their legs.  On November 9, 2020, Agoro and others drove to Prospect Park South, where they shot at a group of individuals but did not hit anyone.  Later that same day, Agoro, Fremont and others drove to Brownsville for another shooting, where one 18-year-old victim was shot in the shoulder and grazed in her back.

In March 2021, Agoro went to a bodega in Flatbush.  He and another individual then displayed a gun and threatened to kill the bodega clerk unless the clerk allowed the defendant and his friends to take merchandise from the store for free.

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

The investigations that led to these prosecutions and convictions were conducted by the FBI/NYPD Safe Streets Task Force and NYPD Gun Violence Suppression Division.

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

The Defendants:

LORENZO BAILEY (also known as “Renzo” and “St. Clair Bailey”)
Age:  33
Atlanta, Georgia

QUINCY BATTICE (also known as “Hush Dinero” and “George Ayala”)
Age:  33
Atlanta, Georgia

JEAN FREMONT (also known as “Juno” and “Bigga Twirl”)
Age:  31 
Brooklyn, New York

OLUWAGBENGA AGORO (also known as “Gee Banga”)
Age:  22
Brooklyn, New York

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

Earlier today, in federal court in Brooklyn, James Davneiro, a former New York City Police Department (NYPD) officer, pleaded guilty to conspiring to participate in a scheme to steer vehicles damaged in automobile accidents to a licensed tow trucking and automobile repair business company in contravention of NYPD’s Directed Accident Response Program (DARP) in exchange for thousands of dollars in bribes (the “Tow Truck Scheme”).  On November 15, 2022, former NYPD officer Michael Perri pleaded guilty to conspiring to participate in the Tow Truck Scheme.  On November 16, 2022, former NYPD officer Giancarlo Osma pleaded guilty to conspiring to participate in the Tow Truck Scheme. 

At the time that they participated in the Tow Truck Scheme, Davneiro and Osma were NYPD officers assigned to the 107th Precinct in Queens, New York.  Perri was also an NYPD officer assigned to the 107th Precinct at the outset of the scheme, but subsequently retired in June 2020 and began operating a licensed tow trucking and automobile repair business that received the damaged vehicles pursuant to the Tow Truck Scheme. Davneiro resigned from the NYPD in November 2021 and Osma resigned on November 16, 2022. 

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, NYPD, announced the guilty pleas.

“These three officers abused the public’s trust and disgraced their NYPD badges by lining their pockets with bribes,” stated United States Attorney Breon Peace.  “This Office will continue working closely with our law enforcement partners to vigorously investigate and prosecute corruption by those who are sworn to enforce and uphold the law.”

“The investigators of our Internal Affairs Bureau left no stone unturned in this case because there is zero tolerance in the NYPD for corruption of any kind,” said NYPD Commissioner Sewell.  “We worked tirelessly in this case, alongside our partners in the Federal Bureau of Investigation and the United States Attorney’s Office, to ensure that those who swore to serve and protect the public but violate that trust face severe consequences.”

According to court filings and facts presented at the plea proceeding, between May 2020 and May 2021, Davneiro and Osma received thousands of dollars of bribe payments from Perri in exchange for steering vehicles damaged in automobile accidents to a licensed tow trucking and automobile repair business operated by Perri, instead of using the NYPD’s DARP, as legally required. DARP requires the NYPD to identify appropriate licensed tow trucking and automobile repair businesses to respond to automobile accident scenes and remove damaged vehicles. 

Today’s plea took place before United States District Judge Rachel P. Kovner.  When sentenced, each of the defendants faces up to five years in prison.  As part of their respective pleas, Davneiro has agreed to forfeit $25,000, Osma has agreed to forfeit approximately $26,011, and Perri has agreed to forfeit approximately $158,277.

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

The Defendants:

JAMES DAVNEIRO
Age:  43
Bayside, New York

GIANCARLO OSMA
Age:  40
Deer Park, New York

MICHAEL PERRI
Age:  33
East Islip, New York

E.D.N.Y. Docket No. 21-CR-508 (RPK)

For the first time, a Mexican court has invoked its new civil forfeiture law to authorize the forfeiture of real property located in and around Guadalajara, Mexico pursuant to a request for mutual legal assistance from the United States.  The forfeiture represents the United States’ groundbreaking use of Mexico’s new statute to divest drug cartel leader Rafael Caro Quintero of ill-gotten gains. Caro Quintero is indicted in the Eastern District of New York for leading a continuing criminal enterprise and related crimes. He is currently in custody in Mexico and extradition proceedings are ongoing.

The forfeited properties, described in the civil forfeiture order issued by U.S. District Judge Eric N. Vitaliano on April 15, 2021, were purchased by Rafael Caro Quintero with drug proceeds generated by the Caro Quintero drug trafficking organization, an affiliate of the Mexican organized crime syndicate known as the Sinaloa Cartel. 

Breon Peace, United States Attorney for the Eastern District of New York, and Anne Milgram, Administrator, United States Drug Enforcement Administration (DEA), announced the seizure and forfeiture order of the Mexican Court.

“This forfeiture sends a powerful message to drug kingpins in Mexico and elsewhere that there are no boundaries to prosecuting bad actors and locating their ill-gotten assets wherever they are in the world,” stated United States Attorney Peace.  “This Office will continue working with our law enforcement partners to take the economic gain out of crime through all available resources, including asset forfeiture.” 

Mr. Peace extended his appreciation to the DEA New York Division Organized Crime and Drug Enforcement Strike Force, as well as the DEA Raleigh Resident Office, the DEA Los Angeles Office and the DEA Mexico City Country Office for their assistance with the case. 

“For over thirty years, the men and women of the DEA have worked tirelessly to bring Rafael Caro Quintero to justice for his violent and ruthless acts,” said Administrator Milgram. “Today’s order— authorizing the forfeiture of Caro Quintero’s properties in Mexico—demonstrates that DEA agents will follow the evidence wherever it leads to hold drug traffickers fully accountable for their deadly crimes.”

According to the forfeiture complaint, between January 1980 and March 2015, the Caro Quintero drug trafficking organization was involved in the transportation of multi-ton quantities of marijuana, multi-kilogram quantities of methamphetamine and multi-kilogram quantities of cocaine from Mexico to the United States.  As part of its investigation, law enforcement learned that Caro Quintero used proceeds from the sale of illegal narcotics to purchase real estate in and around his home area of Guadalajara.  Caro Quintero allegedly placed the properties in the names of family members to conceal his ownership of the properties and use of illegal proceeds to purchase them, and to prevent Mexican authorities from seizing them.

The government’s case is being handled by the Office’s Asset Recovery Section and International Narcotics and Money Laundering Section.  Assistant United States Attorney Brendan G. King is in charge of the forfeiture action.

The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the Mexican authorities.

E.D.N.Y. Docket No. 19-CV-5748 (ENV)

Earlier today, in federal court in Brooklyn, Donnell Russell was sentenced by United States District Judge Ann M. Donnelly to 20 months’ imprisonment for his participation in a scheme to harass, intimidate, and cause substantial emotional distress to Jane Doe, a victim in the Eastern District of New York racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” and Jane Doe’s mother.  Russell, a self-described manager, advisor and friend of Kelly, harassed and threatened Jane Doe and her mother after Jane Doe filed a civil lawsuit against R. Kelly.  Russell continued his harassment campaign after it was clear that Jane Doe was a victim in Kelly’s criminal case in this District and would likely testify against Kelly. 

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

“For more than a year, the defendant engaged in a vicious campaign to harass, humiliate and threaten the victim in order to force her to dismiss her lawsuit against R. Kelly and stop speaking publicly about him,” stated United States Attorney Peace.  “The punishment meted out to the defendant today is a victory for crime victims, particularly those of sexual assault and abuse, who are often reluctant to come forward to law enforcement or pursue legal recourse, given the trauma and fear of retaliation associated with publicly discussing their experiences.”

Mr. Peace expressed his thanks to the Homeland Security Investigations, New York, for its outstanding investigative work on the case.

Between November 2018 and February 2020, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly.  In November 2018, Russell caused a letter, with attachments, purportedly written by Kelly, to be mailed to Jane Doe’s lawyer at the time.  The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!”  In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating “Just a sample.  We will seek criminal charges.  You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”   

On January 3, 2019, Russell sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.”  On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe.  In late January 2020, Russell appeared on two live interviews with “vloggers” supporting Kelly and discussed Kelly’s legal troubles, which were streamed live on the internet via YouTube.  Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.  

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

The Defendant:

DONNELL RUSSELL (also known as “Don Russell” and “Colon Dunn”)
Age:  47
Chicago, IL

E.D.N.Y. Docket No. 20-CR-427 (AMD)

Earlier today, in federal court in Brooklyn, an indictment and a complaint were unsealed charging Russian nationals Anton Napolsky and Valeriia Ermakova with criminal copyright infringement, wire fraud and money laundering for operating Z-Library, an online e-book piracy website.  The pair was arrested on November 3, 2022 in Cordoba, Argentina at the request of the United States.  At the same time, Z-Library’s network of online domains was also taken offline and seized by the U.S. government, pursuant to a court order that was also unsealed today.

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

“As alleged, the defendants profited illegally off work they stole, often uploading works within mere hours of publication, and in the process victimized authors, publishers and booksellers,” stated United States Attorney Peace. “This Office is committed to protecting the intellectual property rights that enable creative and artistic expression, and holding individuals accountable for threatening those rights.”

“The defendants are alleged to have operated a website for over a decade whose central purpose was providing stolen intellectual property, in violation of copyright laws.  Intellectual property theft crimes deprive their victims of both ingenuity and hard-earned revenue. The FBI is determined to ensure those willing to steal and profit from the creativity of others are stopped and made to face the consequences in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.

As alleged in the indictment and court filings, Z-Library bills itself as “the world’s largest library” and claims to offer more than 11 million e-books for download.  Z-Library, which has been active since approximately 2009, offers e-book files in a variety of file formats, stripped of their copyright protections, and encourages users to upload and download titles.  Many of the e-books offered by Z-Library are protected intellectual property for which authors hold copyrights and publishers hold exclusive distribution rights, and which Z-Library has no right or license to distribute, and which are available elsewhere only with anti-circumvention measures applied. As such, a central purpose of Z-Library is to allow users to download copyrighted books for free in violation of U.S. law.   In addition to its homepage, Z-Library operates as a complex network of approximately 249 interrelated web domains.  As part of this action, those domains were taken offline and seized by the U.S. government.

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

The government’s case was initiated by the Office’s Cyber Crime Task Force.  Assistant United States Attorney Chand Edwards-Balfour, Alexander Mindlin, Antoinette N. Rangel and Kaitlin Farrell are prosecuting the case.  Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.

The Justice Department’s Office of International Affairs and Computer Crime and Intellectual Property Section, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case.  In particular, the Office extends its appreciation to the Argentine authorities for their assistance in the capture of Napolsky and Ermakova.

Multiple organizations representing the victim authors and publishers also provided critical assistance in this case.  The Office extends its particular appreciation to The Authors Guild in New York and The Publishers Association in London for their assistance.  The Office also extends its appreciation to the National Cyber-Forensics & Training Alliance for its assistance in the domain takedown.     

The Defendants:

ANTON NAPOLSKY
Age:  33
St. Petersburg, Russia

VALERIIA ERMAKOVA
Age:  27
St. Petersburg, Russia

E.D.N.Y. Docket No. 22-CR-525 (NM)

Two New York men pleaded guilty to conspiracy to commit money laundering for using New York-area pharmacies to submit false and fraudulent claims to Medicare and then laundering the criminal proceeds.

Arkadiy Khaimov, 39, of Forest Hills, pleaded guilty today to one count of conspiracy to commit money laundering. Peter Khaim, 42, also of Forest Hills, pleaded guilty to one count of conspiracy to commit money laundering on Nov. 3.

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

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

Khaimov is scheduled to be sentenced on May 3, 2023. Khaim is scheduled to be sentenced on May 10, 2023. They each face 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.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office; Acting Special Agent in Charge Susan Frisco of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Thomas M. Fattorusso of the IRS Criminal Investigation’s (IRS-CI) New York Field Office; and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

The HHS-OIG, FBI, IRS-CI, and FDIC-OIG are investigating the case. 

Acting Principal Assistant Deputy Chief Jacob Foster of the Criminal Division’s Fraud Section and Trial Attorney Andrew Estes of the Fraud Section’s Brooklyn Strike Force are prosecuting the case. Former Fraud Section Trial Attorney Patrick Mott previously worked on the investigation.

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 Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

Earlier today, in federal court in Brooklyn, Samantha Shader was sentenced by United States District Judge Dora L. Irizarry to 72 months’ imprisonment for using an improvised incendiary device, commonly known as a “Molotov cocktail,” in an attempt to set fire to a New York City Police Department (NYPD) van occupied by four police officers in Brooklyn on the night of May 29, 2020.  Shader pleaded guilty to the charge in April 2022.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, NYPD, announced the sentence.

“The constitutionally protected right to peaceful protest is a core democratic value.  Over the course of this nation’s history, protests have led to significant positive changes. But, throwing a potentially lethal device at an NYPD van occupied by four officers during a protest was an unacceptable and dangerous act, which put the officers and others present at risk,” stated United States Attorney Peace.  “This Office is committed to holding accountable those who, like this defendant, commit crimes that endanger the community and the lives of the dedicated officers of the NYPD.” 

“Today, Ms. Shader learned the consequences for choosing to engage in violent criminal actions.  Malicious actors who wish to bring mayhem to our community - and those who dutifully serve to protect it - will be held accountable for their behavior by the FBI and our law enforcement partners,” stated FBI Assistant Director-in-Charge Driscoll.

“A violent criminal who crossed a line that is critical to a lawful, civil society has been appropriately held to account,” stated NYPD Commissioner Sewell. “Today’s sentencing sends a clear message that no one may ever commit a despicable act of vandalism, especially one that endangers the lives of police officers – whose mission is to ensure people’s right to demonstrate peacefully. I commend the NYPD officers who arrested her for this criminal act, and I thank the U.S. Attorney for the Eastern District for taking the safety of all New Yorkers – including the police who serve them – seriously.”

 On May 29, 2020, Shader traveled from her residence in Saugerties, New York to Brooklyn to participate in a march planned to protest the murder of George Floyd by Minneapolis police officers.  Before traveling to Brooklyn, Shader invited co-conspirator Timothy Amerman to “go down to the City to cause some hell,” and after he declined, procured from him numerous glass bottles that Amerman believed Shader would use as projectiles against police and counter-protesters.

On the night of May 29, 2020, amid a large protest march near the Brooklyn Museum, a witness used his phone to record a video of Shader lighting the wick of a Molotov cocktail and throwing it at a marked NYPD van occupied by four police officers who were assigned to crowd control during the protests.  As she threw the Molotov cocktail, Shader called out to the protesters around the van to “GET OUT THE MOTHERF---ING WAY!”  The Molotov cocktail struck the NYPD van, shattering two of its windows, but did not break and ignite.  The police officers exited their vehicle and apprehended Shader, who resisted arrest by biting one of the police officers on the leg.

Following Shader’s arrest, the FBI identified Saugerties, New York resident Amerman as the man who had provided glass bottles to Shader and arrested him on July 3, 2020.  Amerman pleaded guilty to one count of conspiracy to commit civil disorder on March 26, 2021, and is awaiting sentencing.  He faces a maximum term of 60 months’ imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ian C. Richardson and Jonathan Algor are in charge of the prosecution.

The Defendants:

SAMANTHA SHADER
Age:  29
Saugerties, New York

E.D.N.Y. Docket No. 20-CR-202 (DLI)

TIMOTHY AMERMAN
Age:  31
Saugerties, New York

E.D.N.Y. Docket No. 21-CR-126 (DLI)

Earlier today, in federal court in Central Islip, Jason Langhorn, an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise based in Riverhead, New York, was sentenced to 27 years’ imprisonment and three years of supervised release by United States District Judge Joanna Seybert for his participation in the murder of Thomas Lacolla on November 17, 2015, which occurred while Langhorn and others were attempting to kill a rival of the gang.  Langhorn pleaded guilty to firearms-related murder in August 2021.  

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

“Langhorn has been held accountable for his role in a heartless shooting that claimed the life of an unintended victim,” stated United States Attorney Peace.  “We hope today’s sentence brings a measure of solace and closure to the victim’s family and sends a clear message that those who commit brutal acts of gang violence will be brought to justice and punished.” 

Mr. Peace also extended his thanks to the Suffolk County District Attorney’s Office’s East End Drug Task Force, the Suffolk County Police Department and the Riverhead Police Department for their assistance in the investigation and prosecution.

As alleged in the indictment and court filings, the defendant assisted members of the Bloods as they tried to kill a rival gang member, which resulted in the shooting death of Mr. Lacolla.  In an attempt to carry out a standing order by the leader of the gang to kill the rival, Langhorn accompanied several fellow Bloods members to a location in Riverside, New York, just outside of Riverhead.  There, Langhorn and two others fired more than 39 shots, collectively, into a vehicle they believed was occupied by their intended target, but instead was occupied by Mr. Lacolla, who was shot and killed instantly. 

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

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.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Michael Maffei and Nicole Boeckmann are in charge of the prosecution.   

Defendant:

JASON LANGHORN, also known as “Hov”
Age: 40
Riverhead, New York

E.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)

Two criminal complaints were unsealed today in federal court in Brooklyn charging three correction officers employed by the New York City Department of Correction (DOC) at Rikers Island with federal program fraud.  Correction Officers Steven Cange, Monica Coaxum and Eduardo Trinidad were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon. 

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, 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, in the midst of an ongoing staffing crisis at Rikers Island, the defendants defrauded New Yorkers by fraudulently obtaining their full salaries while taking over a year of sick leave.  These correction officers abandoned their oath to protect inmates and put the safety of their fellow correction officers at risk” stated United States Attorney Breon Peace.  “Today’s arrests demonstrate that this Office remains committed to rooting out corruption at Rikers Island and protecting New Yorkers from public officials who steal their tax dollars.”

“As alleged, the defendants deliberately violated their oath when they participated in an elaborate scheme to defraud our community.  The FBI and our partners are committed to disrupting these fraudulent scams and holding the public officials who perpetuate them accountable,” stated FBI Assistant Director-in-Charge Driscoll.

 DOI Commissioner Jocelyn E. Strauber said, “As charged, these New York City Correction Officers feigned illness and submitted false medical documentation to take sick leave during a staffing crisis, defrauding the City of New York of hundreds of thousands of dollars.  Today’s arrests hold these Correction Officers accountable for the shameful dereliction of duty alleged in the Complaints.  I thank the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their continuing partnership and efforts to bring to justice those whose misconduct jeopardizes the safety and stability of the City’s jails.”

As alleged in one complaint, New York City Correction Officer Steven Cange fraudulently obtained more than $160,000 in salary by being on sick leave from March 2021 to the present.  Although Cange claimed that he suffered from symptoms of vertigo and side effects from the COVID-19 vaccine, evidence obtained by law enforcement demonstrates that Cange was able to work.  During his sick leave, Cange submitted more than 100 fraudulent medical notes to DOC demonstrating that he was at physical therapy or another medical provider when records subpoenaed from those providers demonstrate that Cange was not at those appointments.  Law enforcement also observed Cange engaging in normal life activities with no apparent difficulty.

As alleged in a separate complaint, New York City Correction Officer Monica Coaxum fraudulently obtained more than $80,000 in salary by being on sick leave from March 2021 to May 2022, and her fiancée, Correction Officer Eduardo Trinidad, fraudulently obtained more than $140,000 in salary by being on sick leave from June 2021 to November 2022.  Although Coaxum claimed to suffer from multiple injuries, evidence collected by investigators shows that she was able to work.  During her sick leave, Coaxum submitted nearly 50 fraudulent medical notes to DOC stating that she had gone to a medical appointment at times law enforcement determined she was elsewhere.  Additionally, evidence shows that on some occasions where Coaxum claimed to be injured and at home, she was traveling and at parties.  When approached by law enforcement, Coaxum admitted to forging some medical documents.

Trinidad likewise obtained more than $140,000 by claiming to be too injured to work for over a year.  Although he went to medical appointments with DOC wearing some combination of a sling, cane, and/or boot, photographic and video evidence during the same period showed Trinidad doing normal life activities like home improvement work, bowling and traveling abroad, without any difficulty or help from equipment like a boot, sling or cane.

The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants each face a maximum sentence of 10 years’ imprisonment.

The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorneys Philip Pilmar and Andrew Grubin.

The Defendants:

STEVEN CANGE
Age:  49
Brooklyn, NY

E.D.N.Y. Docket No. 22-MJ-1204

MONICA COAXUM
Age:  36
Harrison, NY

EDUARDO TRINIDAD
Age:  42
Yonkers, NY

E.D.N.Y. Docket No. 22-MJ-1203

Earlier today, a federal jury in Central Islip returned a guilty verdict on all five counts of superseding indictment charging Lorraine Pilitz, also known as “Lorraine Christie,” and “Lorraine Storms” with illegally structuring financial transactions, corruptly obstructing the Internal Revenue Service (IRS), and filing false tax returns.  The verdict followed a two-week trial before United States District Judge Joanna Seybert.

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

“For years the defendant thought she could get away with hiding substantial amounts of cash and income, impeding the Internal Revenue Service, and cheating her employees, but the jury saw through the lies and has held her responsible for her actions,” stated United States Attorney Peace.  “Business owners who place greed above following the rule of law will face the consequences.”

Mr. Peace thanked the Suffolk County Police Department’s Treasury Enhanced Prosecution Program for their assistance with the case.

“Lorraine Pilitz set up a complicated scheme to hide hundreds of thousands of dollars from the IRS by grossly underreporting her income and having an ‘off-the-books’ payroll.  As the investigative arm of the IRS, IRS Criminal Investigation is strategically positioned to track down all those who look to steal from the U.S. Treasury and the American public to line their own pockets,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.

As proven at trial, Pilitz owned and operated several automobile-related businesses on Long Island.  Financial institutions are required to file a Currency Transaction Report (CTR) with the IRS for each transaction in excess of $10,000.  Between 2011 and 2013, the defendant routinely structured cash deposits to avoid the required CTR filings – depositing cash amounts just under $10,000.  As a result of Pilitz’s scheme, hundreds of thousands of dollars were concealed from the IRS.  As part of the same scheme to conceal her income, Pilitz also diverted hundreds of thousands of dollars of business checks into her and her family’s personal bank accounts, maintained “off-the-books” payrolls, failed to file personal and corporate tax returns, and filed false tax returns that severely underreported her income.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor and Diane Leonardo are in charge of the prosecution with assistance from Paralegal Specialist Michael Compitello.

The Defendant:

LORRAINE PILITZ
Age:  64
Merrick, New York

E.D.N.Y. Docket 17-CR-53 (S-2) (JS)

A two-count indictment was unsealed earlier today in federal court in Central Islip charging three members of La Mara Salvatrucha, also known as the MS-13, Roberto Antonio Abrego-Reyes, also known as “Splinter” and “Impaciente,” Miguel Angel Alfaro-Santos, also known as “Asesino,” and Jose Benedicto Baires-Novoa, also known as “Macabro,” with the murder of 24-year-old Kenneth Evans, Jr in Brentwood, New York on November 28, 2015. 

Baires-Novoa, who is a member of the Guanacos Lil Cycos Salvatruchas (Guanacos) clique of the MS-13, was arrested in Brentwood, New York on November 7, 2022 by members of the Federal Bureau of Investigation Long Island Gang Task Force (FBI LIGTF) and was arraigned before United States Magistrate Judge James M. Wicks earlier this afternoon.   Baires-Novoa was ordered detained pending trial.  Additionally, earlier today, Alfaro-Santos, who is also a member of the Guanacos clique of the MS-13, appeared in federal court in the Middle District of Pennsylvania, and was ordered removed to the Eastern District of New York to face charges.  The third defendant, Abrego-Reyes, a member of the Indios Locos Salvatruchas (ILS) clique of the MS-13, is presently in state custody at the Nassau County Correctional Center and will be transferred to federal custody and arraigned at a later date.                         

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, 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 charges.

“With these arrests, we are holding the defendants accountable for senselessly shooting two innocent bystanders, striking one in the head and killing the other, leaving fear and grief in their wake,” stated United States Attorney Peace. “This should serve as a warning, that there is no amount of time that will stop this Office from pursuing justice to keep our communities safe.” 

United States Attorney Peace expressed his appreciation to the members of the FBI LIGTF, as well as to the Nassau County District Attorney’s Office, for their partnership in this case.   

“The senseless and gruesome acts committed in the name of MS-13 are hard to comprehend,” Suffolk County Police Commissioner Rodney K. Harrison said. “This department, along with our law enforcement partners, will never stop pursuing justice for those killed at hands of gang members. Even though seven years have passed since this murder, investigators never gave up.”

"MS-13 raises the specter of violence for communities that have experienced the terror members leave in their wake. Our work has slowed and even stopped their criminal and deadly activity; however, we could see a resurgence if we get complacent. The FBI Long Island Gang Task Force and our law enforcement partners are continuing the work and maintaining our outreach with the public to thwart this ever-present threat," stated FBI Assistant Director-in-Charge Driscoll.

According to court filings, on the evening of November 28, 2015, Abrego-Reyes, Alfaro-Santos and Baires-Novoa agreed with other MS-13 members to “put in work” for the gang – that is, to go out hunting for rival gang members to target and kill.  The MS-13 members armed themselves with a .38 caliber handgun and a 9mm handgun, and drove around the Brentwood area looking for potential targets.  While driving in the vicinity of Gibson Avenue in Brentwood, the three defendants and their fellow MS-13 co-conspirators observed three males, one of whom was Evans, walking along the street.  Although the three males were not personally known to the MS-13 members, they were wrongly presumed to be members of a rival gang and were immediately targeted. 

Alfaro-Santos and another MS-13 member, who were each armed with a handgun, got out of the car and approached the victims, while Abrego-Reyes, who was driving the vehicle, Baires-Novoa, and another MS-13 member remained in close proximity, watching for police presence in the area and waiting to drive the shooters away from the scene.  Alfaro-Santos and the other MS-13 member walked just behind the three victims and began shooting.  Evans was struck multiple times and died from his wounds.  A second victim was shot in the head but survived the attack.  The third man escaped injury.  Following the shooting, the MS-13 members in the car picked up the two shooters, and all fled the scene. 

If convicted, each defendant faces mandatory life in prison or the possibility of the death penalty. 

This 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, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 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 LIGTF, 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 Defendants:

ROBERTO ANTONIO ABREGO-REYES (“Splinter” and “Impaciente”)
Age: 28
Flushing and Hempstead, NY

MIGUEL ANGEL ALFARO-SANTOS (“Asesino”)
Age: 26
Flushing, NY

JOSE BENEDICTO BAIRES-NOVOA (“Macabro”)
Age: 26
Flushing and Brentwood, NY

E.D.N.Y. Docket No. 22-CR-499 (JMA)

Earlier today, in federal court in Central Islip, Gary Confredo, also known as “Gary Conte,” the former operator of Goldstar Financial Management Corp. (Goldstar), a financial services business based in Commack, New York, pleaded guilty to a criminal information charging him with conspiracy to commit bank fraud in connection with a scheme to defraud Bank of America of more than $3.2 million in loans and lines of credit that were obtained under false pretenses. 

The proceeding was held before United States Magistrate Judge Lee G. Dunst.  When sentenced, Confredo faces up to 30 years in prison.  As part of his guilty plea, Confredo agreed to forfeit approximately $140,000 and to pay restitution in an amount to be determined by the Court at his sentencing.

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

“As the defendant admitted, he selfishly manipulated the trust of his clients and lied to financial institutions simply to line his own pockets. He will now face consequences for his greed,” stated United States Attorney Peace.  “This Office stands committed to prosecuting criminals, whether they hurt someone physically or financially.”

“Mr. Confredo defrauded Bank of America of millions of dollars while on supervised release from a previous conviction.  With his guilty plea today, he has taken responsibility for his greed and hopefully will stop the revolving door on his life of crime.   Any time the U.S. Mail is used to commit and/or further a crime, the U.S. Postal Inspection Service will be there to see that those responsible are brought to justice” stated USPIS Inspector in Charge, Daniel Brubaker.

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

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

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

The Defendant:

GARY CONFREDO (also known as “Gary Conte”)
Age:  60
East Northport, New York

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

United States Attorneys Breon Peace and Damian Williams announced today that Assistant United States Attorneys (AUSAs) will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA Erik Paulsen has been appointed to serve as the District Election Officer (DEO) for the Eastern District of New York, and David J. Kennedy has been appointed to serve as the DEO for the Southern District of New York. In their capacity as DEOs, these AUSAs are responsible for overseeing the Districts’ handling of Election Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney Peace said, “The right of all citizens in the district to cast their votes and have their votes counted fairly and without interference, discrimination or threat of violence, is a cornerstone of our democracy and this Office will vigorously defend that right with the full force of federal law.”

United States Attorney Williams said, “Free and fair elections are principal to democracy, and every vote counts. It is the solemn privilege of this Office to work together with our law enforcement partners to ensure that New Yorkers are able to exercise their inherent right to select their representatives unencumbered by unlawful intimidation or interference.  We encourage anyone who finds their civic voting protections subject to hindrance to please contact the numbers below.

The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

United States Attorneys Peace and Williams stated that: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs will be on duty in this District while the polls are open.”

In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 8, 2022, and to ensure that such complaints are directed to the appropriate authorities, the United States Attorneys said that their Offices will be available to receive complaints at the following numbers through Tuesday, November 8, 2022:

(646) 369-4739 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and
(718) 254-7000 (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI field office can be reached by the public at (212) 384-1000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:

IN NEW YORK CITY

City Board of Elections

Main Office  (866) 868-3692

TTY #: 212-487-5496

IN COUNTIES OUTSIDE NEW YORK CITY

County Boards of Elections

Dutchess (845) 486-2473

Nassau (516) 571-8683

Orange (845) 360-6500

Orange (Spanish language) (855) 331-2444

Putnam (845) 808-1300

Rockland (845) 638-5172

Suffolk (631) 852-4500

Sullivan (845) 807-0400

Westchester (914) 995-5700 

Earlier today, in federal court in Brooklyn, Dwayne Pickett, also known as “Waynehead,” was arraigned before Judge James R. Cho on a three-count indictment charging him with unlawful firearms trafficking and being a felon in possession of firearms and ammunition.  The indictment relates to Pickett’s sales and attempted sales of more than fifteen firearms that he trafficked from North Carolina to New York. Pickett was arrested on a complaint in September 2022.  A federal grand jury returned the indictment on October 25, 2022. Pickett remains detained pending trial.

Breon Peace, United States Attorney for the Eastern District of New York, John DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the charges.

“Another individual who is alleged to have come into our district for the sole purpose of selling over fifteen illegal firearms has been arrested and will be held accountable,” stated United States Attorney Breon Peace.  “This office and our law enforcement partners will continue to work nonstop to prevent guns from being trafficked into our communities and protect those who call this district home from gun violence.”

“As alleged in the indictment, Pickett, a convicted felon, in concert with others, trafficked more than fifteen firearms to New York City.  A large portion of these firearms were sourced through theft and burglary.  This case demonstrates how the steady trickle of firearms into our communities originate from any number of sources, and sometimes make their way to our streets in only a matter of days.  Pickett is in custody today thanks to the outstanding work of the ATF Joint Firearms Task Force, the NYPD Human Trafficking Unit, the NYPD 105th Field Intelligence Office and the U.S. Attorney’s Office EDNY.  Our investigation and resolve continue,” stated ATF Special Agent-in-Charge DeVito.

As alleged, in September 2022, Pickett traveled from North Carolina to Jamaica, Queens, where he sold ten firearms for approximately $11,000.  The firearms Pickett sold were handguns of various makes and models, eight of which had been previously reported stolen from a firearms dealer in North Carolina.  After returning to North Carolina, Pickett continued to market firearms for sale, sending one potential buyer pictures of a variety of handguns and their sale prices. 

In late September 2022, Pickett again traveled from North Carolina and planned to meet with a purchaser for another guns for cash transaction.  Pickett was arrested upon arriving at the planned sale location, while carrying a duffle bag with five additional handguns and assorted ammunition.

Pickett’s criminal history includes felony convictions that bar him from possessing firearms.  The defendant is not a licensed firearms dealer.

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. This case is also being investigated by the Firearms Trafficking Strike Force, announced in June 2021, and designed to share information and otherwise collaborate across districts where firearms trafficking schemes cross state lines or jurisdictional boundaries to focus enforcement against entire trafficking networks, from the places where guns are unlawfully obtained to the areas where they are used to commit violent crimes.

The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Kaitlin McTague is in charge of the prosecution. Law Clerk Beth Ann Bentley of the Office’s Asset Recovery Section is assisting on forfeiture matters.

The Defendant:

DWAYNE PICKETT (also known as “Waynehead”)
Age:  27
Statesville, North Carolina

E.D.N.Y. Docket No. 22-CR-486 (NM)

An indictment was unsealed today in federal court in Central Islip charging 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. are also charged with managing a drug premises, and Narendarakuma Dadarwala is charged with distribution of proceeds of prostitution and narcotics businesses.  Patel was arrested yesterday in Nebraska and will be arraigned in the Eastern District of New York at a later date.  The other defendants were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Lee G. Dunst. A fifth co-conspirator remains at large.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the indictment and arrests.

“As alleged, the defendants made the Sayville Motor Lodge a money-making refuge for prostitution and narcotics trafficking, and a blight on the surrounding community,” stated United States Attorney Peace.  “With these arrests, we send a clear message that our Office will prosecute those who use motels or any other venue as their base of operations for trafficking human beings and drugs.”

Mr. Peace also thanked the United States Marshal Service, 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 assistance.

“We allege the owner and employees of the Sayville Motor Lodge looked the other way when pimps trafficked human beings in their hotel. More egregiously, we allege they took money from those pimps and drug dealers, who beat and abused the women involved in front of them. Other hotel owners who operate in a similar fashion should take heed, we will hold them accountable for their actions in allowing sex trafficking to take place in their establishments. We're asking anyone who is a victim of human trafficking, or believes they know of someone who is, to call us at 1-800-CALL-FBI," stated FBI Assistant Director-in-Charge Driscoll.

 “From the outside, the Sayville Motor Lodge appeared to be a typical roadside motel, but in reality, there was far more than just overnight stays occurring there,” stated SCPD Commissioner Harrison.  “The owners and employees facilitated sex trafficking and drug sales for financial gain at the expense of women, including a minor. We will continue to work with our law enforcement partners to stop those who exploit victims of human trafficking and will continue to help these victims receive the services they need to get their lives back on track.”

“These defendants are alleged to have not only knowingly allowed criminal behavior to run rampant at the Motor Inn for years, they also financially benefited from these same illegal activities directly through kickbacks," stated District Attorney Tierney. "Thanks to our partnership with U.S. Attorney Breon Peace and the Suffolk County Police Department, this blight on the community will no longer be open for illicit business.”

As set forth in court filings, the Dadarwalas have owned and operated the Sayville Motor Lodge since approximately 1984.  They reside and work at the motel.  From 2017 to 2019, Ashokai 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.  Specifically, the Dadarwalas and Patel conspired with traffickers.  They exercised control over room rentals and booked dates and set room rates for commercial sex.  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. They also financially benefited from the commercial sex activity at the Sayville Motor Lodge.  The traffickers, sex workers, and drug dealers at the Sayville Motor Lodge frequently interacted with the staff and called Narendarakuma Dadarwala “Dad” and “Pa” and Shardaben Dadarwala “Mom” and “Ma.”

From approximately 2014 until 2018, an unapprehended co-conspirator allegedly operated his sex trafficking business out of the Sayville Motor Lodge, in coordination with the Dadarwalas and Patel.  The co-conspirator trafficked several women out of the motel, including a minor, and routinely subjected the women who worked for him to physical violence.  In furtherance of his operation, the co-conspirator kept the women who worked for him addicted to drugs and introduced them to prostitution in exchange for drugs, posted ads on the internet and set rates for commercial sex acts, confiscated proceeds from prostitution, and mentally and physically abused the women and minors who worked for him.

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.  Narendarakuma Dadarwala wired funds from the rental of rooms for prostitution and narcotics trafficking to his son and Patel.

Further, as set forth in the indictment, the government is seeking to forfeit the Sayville Motor Lodge.  To ensure the property is preserved for forfeiture, the United States has obtained an order restraining the defendants from transferring, encumbering or operating the Sayville Motor Lodge in violation of law.

If convicted, the defendants each face a minimum of 15 years’ imprisonment and a maximum of life imprisonment on the sex trafficking charge.  Jigar Dadarwala, Narendarakuma Dadarwala, Shardaben Dadarwala and Ashokai Patel face up to 20 years for the managing a drug premises charge; and Narendarakuma Dadarwala faces up to 5 years on distribution of proceeds of prostitution and narcotics businesses charge.

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

If you were a victim, please contact the FBI at 1-800-CALL-FBI.

The government’s case is being handled by the Office’s Civil Rights Section and Long Island Criminal Division.  Assistant United States Attorneys Catherine M. Mirabile, Samantha S. Alessi and Special Assistant United States Attorney Vanessa McEvoy are in charge of the prosecution.  Assistant United States Attorney Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants:

JIGAR DADARWALA (also known as “Cobra”)
Age: 44 
Sayville, New York

NARENDARAKUMA DADARWALA (also known as “Naren,” “Pa” and “Dad”)
Age: 76
Sayville, New York

SHARDABEN DADARWALA (also known as “Sharda,” “Ma” and “Mom”)
Age: 69
Sayville, New York

ASHOKBHAI PATEL, also known as “BG”
Age: 58
Omaha, Nebraska

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

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

Earlier today, Jebara Igbara, also known as “Jay Mazini,” pleaded guilty in federal court in Brooklyn to a three count information charging him with wire fraud, wire fraud conspiracy and money laundering.  As set forth in the information, up until March 2021, Igbara maintained a popular Instagram account under the name “Jay Mazini,” where he would post videos depicting, among other things, occasions during which he would hand out large amounts of cash to various individuals as gifts.  In reality, Igbara was perpetrating overlapping fraud schemes, scamming investors out of at least $8 million. 

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

“With today’s plea, the defendant has admitted to leveraging his Instagram popularity to prey upon innocent investors and steal at least $8 million of their hard-earned money,” stated United States Attorney Peace.  “Together with our agency partners, this Office is committed to bringing scammers to justice.”

“As he admitted today, Igbara deliberately operated multiple scams to cheat a multitude of investors out of their money.  The FBI and our law enforcement partners are committed to stopping fraudsters of all types and holding them accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.  

“All the victims in this case were promised something that was too good to be true.  Those in the Ponzi scheme were all assured a high rate of return in a short amount of time, while the victims of the Bitcoin advance fee scheme were guaranteed above current market value for their Bitcoin.  This multi-million dollar case is a reminder for anyone thinking of investing: Be skeptical of any investments with larger than life promises, because if it sounds too good to be true, it probably is,” stated IRS-CI Special Agent-in-Charge Fattorusso.

As detailed in the information, Igbara is charged with perpetrating a scheme to defraud members of the Muslim-American community in New York by soliciting their money for purported investments in stock, electronics resale, and purchases of COVID-19 related personal protective equipment (PPE).  In reality, Igbara was operating a Ponzi scheme, and misappropriated nearly all of the money for his personal expenses and gambling. 

To raise money in order to pay his investors “returns,” and keep them on the hook, Igbara also perpetrated a second fraudulent scheme, wherein he posted on his Instagram and other social media accounts that he was willing to pay above-market prices for various cryptocurrencies.  He would then send his victims doctored images of wire transfer confirmations that purported to show he had sent money for the cryptocurrency as promised, when in reality, the payment was never sent, and Igbara was merely stealing the cryptocurrency sent by his victim.                       

When sentenced, Igbara faces up to 20 years’ imprisonment.

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

The Defendant:

JEBARA IGBARA (also known as “Jay Mazini”)
Age:  27 
Edgewater, New Jersey

E.D.N.Y. Docket No. 22-CR-424 (FB)

An indictment was unsealed today in federal court in Brooklyn charging Kyler Booker with conspiring to deal in firearms and making false statements to acquire firearms.  According to public filings, Booker was a straw gun buyer who purchased at least 137 firearms from dealers in Arkansas between December 2019 and September 2021.  Law enforcement has recovered at least 13 firearms illegally acquired and distributed by Booker in New York City, across all five boroughs.  Booker was arrested this morning in Arkansas and is scheduled to be arraigned today at the federal courthouse in Little Rock, Arkansas, and removed to the Eastern District of New York at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.

“Today’s arrest stops one bad actor who illegally purchased at least 137 guns, funneling many into our community including putting firearms in the hands of minors and a convicted criminal,” stated United States Attorney Peace. “While 13 guns have been recovered from across all five boroughs of New York City, as is the unfortunate side effect of the gun violence epidemic, many more of the defendant’s firearms may still be out there. Our Office and our law enforcement partners remain committed to keeping our community safe by doing all we can to stop gun traffickers and quell gun violence.”

Mr. Peace thanked the United States Attorney’s Office for the Eastern District of Arkansas for its assistance with the investigation.

“As alleged, Kyler Booker illegally trafficked firearms directly into the hands of violent criminals in New York; far from the neighborhoods in which they were originally purchased.  This case is yet another example of fully exploiting crime gun intelligence and the collaborative work amongst law enforcement and prosecutors to identify and stop these individuals.  Mr. Brooker and all others involved in weapons trafficking should know that the men and women of the ATF Joint Firearms Task Force, NYPD and EDNY will work tirelessly to keep our communities safe. Special thanks to the ATF Little Rock Arkansas Field Office for their tireless work on this investigation,” stated ATF Special Agent-in-Charge DeVito.  

“The surge of gun violence in New York City is being fueled by individuals who circumvent the law and supply firearms to trigger-pullers,” stated NYPD Commissioner Sewell.  “The weapons recovered in this case were headed to only one place, our neighborhoods, in the hands of criminals fully prepared to commit acts of wanton violence.  I commend and thank all of the investigators with the NYPD, the ATF, and the U.S. Attorney’s Office for the Eastern District for their outstanding work on this and many other cases.” 

As alleged in court filings, Booker visited numerous federally licensed retailers in Arkansas and, in 26 separate transactions, purchased at least 137 firearms, including dozens of 9-millimeter pistols.  In connection with purchasing the firearms, Booker falsely affirmed that he was the actual buyer when, in fact, he had conspired to sell the guns to other individuals, including customers he communicated with by phone and over Facebook. 

The NYPD has recovered at least 13 of the firearms dealt by Booker from across every borough, including eight from Brooklyn:

• Twelve of the recovered firearms were loaded;
• Two were recovered from or near a minor;
• One was recovered from the residence of a parolee who had been convicted of attempted burglary;
• Seven were recovered on a party bus that had been stopped for traffic violations.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Booker faces a maximum of 10 years’ imprisonment for each of the false statement counts and a maximum of five years’ imprisonment for the conspiracy count.

The government’s case is being handled by the Office’s Organized Crime and Gangs section.  Assistant United States Attorney Victor Zapana is in charge of the prosecution.

The Defendant:

KYLER BOOKER
Age: 44
Little Rock, Arkansas

E.D.N.Y. Docket No. 22-CR-489 (NM)

Seizure of Cocaine from the MSC Gayane at the Port of Philadelphia Was One of the Largest in U.S. History

An indictment was unsealed today in federal court in Brooklyn charging Goran Gogic with one count of conspiracy to violate the Maritime Drug Law Enforcement Act and three counts of violating the Maritime Drug Law Enforcement Act.  Gogic, a citizen of Montenegro, and a former heavyweight boxer, was arrested last night as he attempted to board an international flight from Miami International Airport.  Gogic is expected to appear this afternoon in federal court in Miami 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; Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Wayne A. Jacobs, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Steven A. Nigrelli, First Deputy Superintendent, New York State Police (NYSP), announced the arrest and charges.

“The arrest and indictment of Gogic, a former boxer allegedly responsible for trafficking a staggering amount of cocaine, more than 20 tons, which he attempted to move through U.S. ports, is a resounding victory for law enforcement,” stated United States Attorney Peace.  “The meticulous planning by the defendant and his co-conspirators failed to take into account the federal agents whose hard work resulted in this body blow to the organization and individuals responsible for distributing massive quantities of cocaine.”

Mr. Peace also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania for its assistance in the investigation. 

“Gogic, as alleged, is a major drug trafficker who, along with his criminal associates, is responsible for overseeing long-range narcotics transportation on container ships as well as the wholesale distribution of cocaine throughout Europe.  Today’s arrest sends a message to narcotraffickers worldwide that they are not free to hijack international maritime commerce with impunity,” stated HSI Special Agent-in-Charge Arvelo.  “HSI, along with our partners, will continue to leverage our unique investigative authorities to aggressively pursue drug traffickers who seek to exploit legitimate industries.”

“A billion dollars’ worth of cocaine seized was a heavy hit for Gogic’s criminal network, but nothing heavier than his arrest last night,” said DEA Special Agent-in-Charge Tarentino.  “As evident in this case, criminal organizations will go to various extremes to make a profit off the sale of poison. Due to the hard work by local, state and federal law enforcement, 20 tons of poison was intercepted en route from Colombia to Europe. Gogic’s arrest underscores law enforcement’s commitment to bringing to justice those responsible for causing the most harm to our communities.”

“Gogic allegedly conspired with drug suppliers, ships' crewmembers, and port workers to traffic massive quantities of cocaine through the U.S. to Europe via commercial cargo ships," said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office's Criminal/Cyber Division. "His arrest demonstrates the FBI’s and our partners’ global reach and resolve to bring narcotraffickers to justice for violating U.S. laws and exploiting maritime commerce.”

“When building a case against a sophisticated drug trafficker like Goran Gogic, operating on a mammoth scale, it is critical that federal, state, and local law enforcement work in close coordination, sharing resources and information,” stated NYPD Commissioner Sewell. “This arrest and massive seizure demonstrate the effectiveness of HSI New York’s El Dorado Task Force, of which the NYPD has long been a proud partner.”

New York State Police Acting Superintendent Nigrelli said, “This arrest and indictment speaks volumes of the tremendous coordination between law enforcement partners to stop individuals such as Mr. Gogic, from using our waterways to distribute illegal drugs throughout the world. May this arrest send a clear message that we will find and punish the people who are responsible for carrying out such acts. The New York State Police will continue to work with our partners to stop the flow of dangerous drugs in our country and the world.”

As alleged in the indictment and court documents, between May 2018 and July 2019, Gogic conspired with others to distribute massive quantities of cocaine via commercial cargo ships.  Gogic coordinated with the sources of the cocaine in Colombia, the crewmembers who transported tons of cocaine on commercial cargo ships on the high seas, and the network of port workers who transported and offloaded the cocaine in Europe via the United States. 

Members of the conspiracy loaded the commercial cargo ships at night near the coast and ports, working with crewmembers who would hoist loads of cocaine from speedboats that approached the ships at multiple points along their route.  To physically load the cocaine aboard, they used the ship’s cranes as well as nets.  Once the cocaine was onboard, the crewmembers would hide it within specific shipping containers that they knew had sufficient room to conceal the large quantities of cocaine and for which they had duplicate counterfeit seals.  They selected the specific containers to be used to conceal the cocaine based, in part, on the containers’ location and orientation, and route and destination on board the vessel.  This complex operation relied on having to access to each ship’s crew, route, manifest, real-time positioning and geolocation data and a knowledge of what legitimate cargo is contained in each container.   The conspiracy used a different set of workers with access to the ports in Europe to clandestinely access and remove the cocaine from the shipping containers upon their arrival. 

U.S. law enforcement officers seized three of these shipments:

• The February 27, 2019 seizure of approximately 1,437 kilograms of cocaine secreted aboard the MSC Carlotta at the Port of New York and New Jersey;
• The March 18, 2019 seizure of approximately 537 kilograms of cocaine secreted aboard the MSC Desiree at the Port of Philadelphia; and
• The June 19, 2019 seizure of approximately 17,956 kilograms of cocaine secreted aboard the MSC Gayane at the Port of Philadelphia.  The seizure of the cocaine from the MSC Gayane—worth over $1 billion—was one of the largest seizures of cocaine in United States history. 

Law enforcement officers also seized significant amounts of cocaine related to the scheme at ports in Panama, Peru, and the Netherlands, among other countries.

If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison and up to life in prison. 

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

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

HSI New York leads and directs all operational and administrative activities of the El Dorado Task Force (EDTF).  The EDTF is comprised of more than 200 law enforcement personnel representing approximately thirty-five (35) federal, state, and local law enforcement and regulatory agencies.  The mission of the EDTF is to disrupt, dismantle, or render ineffective, organizations involved in the laundering of proceeds of narcotics trafficking and other financial crimes.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Nomi Berenson and Robert Pollack are in charge of the prosecution.

The Defendant:

GORAN GOGIC
Age: 43          
Montenegro

E.D.N.Y. Docket No. 22-493 (NM)

今天，一项刑事诉讼在布鲁克林联邦法院启封，指控两名中华人民共和国情报官策划阻挠纽约东区检察院一项刑事诉讼。被告仍然在逃。

法院文件显示，贺国春，又名“何东”和“贺杰克”，与王政，又名“王谮”，涉嫌策谋从美国联邦检察院纽约东区办公室窃取联邦政府对位于中国一家全球电信公司（公司-1）起诉的文件和其他信息，包括向一名美国政府雇员支付约$61,000比特币贿额。被告认为该雇员已被招募为中国政府工作，但事实上该雇员是一个代表联邦调查局（联调局）工作的双重间谍。

美国纽约东区检察官布利昂·皮斯、负责国家安全的助理司法部长马修·G·奥尔森、联调局局长克里斯多弗·雷宣布指控。

美国检察官皮斯表示：“今天的诉讼充分展示了中国政府为破坏法治所作的不懈努力。据指控，此案涉及中国情报官员通过贿赂从本办公室窃取文件并和一个全球通信公司分享，努力阻挠对此公司持续进行的刑事诉讼。我们会始终采取果断行动打击针对我们司法系统的犯罪行为。”

负责国家安全的助理司法部长马修·G·奥尔森指出：“被此案指控的中国情报官的企图和行为远超于收集信息和情报，其实质必须被披露：一个外国政府的代表超乎寻常地干扰美国刑事司法系统的诚信，损害联邦雇员，阻碍美国执法，并为一个位于中国的商业性企业牟利。司法部不会允许其他国家的代表干涉美国刑事程序和调查，不会容忍外国对公正与司法的干预。”

联调局雷局长表示：  “联调局的使命是保护美国人民，捍卫美国宪法 - 此案对两者都带来威胁。中华人民共和国情报官试图从纽约东区偷窃文件，不仅危害了刑事司法系统的诉讼程序，而且危害了司法的本意。对司法的威胁是对我们自由社会基础的威胁。联调局时刻保持警惕并致力于保护美国免受这些威胁。”

贺国春与王政被指控试图阻挠纽约东区联邦检察院对公司-1的一宗刑事诉讼。被告贺因为试图进一步促成该阴谋, 支付总值约$61,000比特币贿额，另被指控两项洗钱罪。

根据诉讼，两名被告为中国情报官员，代表中国政府并且为了公司-1的利益，从事针对美国的国外情报行动。自2019年起，他们指使一名他们认为已被招募成功的美国政府执法机构员工（政府雇员-1）窃取对公司-1刑事起诉有关的机密信息，以干扰此案的诉讼。实际上，政府雇员-1是一名代表联调局工作的双重间谍。

2021年9月，两名被告责成政府雇员-1汇报政府雇员-1据称在布鲁克林美国检察院纽约东区办公室与检察官举行的会议。被告在书面沟通中表示他们特别想知道公司-1的哪些员工曾与政府面谈，并想获得检察官所持证据、证人名单和庭审策略的说明。

2021年10月，政府雇员-1 使用加密短信程序向被告发送了有关公司-1案件所谓策略备忘录中的一页。该文件看似归类为“机密” ，提及指控并逮捕两名居住在中国的公司-1现任负责人的计划。[1] 贺国春回应表示这份文件 “正是我在等待的”，他还在“等待某些人的反馈”，看他们对这份文件是否有任何问题。后来贺国春为政府雇员-1偷窃文件支付了约 $41,000比特币。

政府雇员-1亦曾向被告询问有关“机密”文件的任何反馈。2021年11月，贺国春指出“[公司-1] 目前还没有给我具体的反馈，但他们对此显然很感兴趣，我的老板和他们需要更多的资料。”贺国春另外告诉政府雇员-1“[公司-1]显然对”政府雇员-1窃取策略备忘录中另一部分“有兴趣”，并为那些信息“可能会付更多”。2021年12月，在回答政府雇员-1进一步要求公司-1的反馈或指示“他们需要我拿什么”时，贺国春解释说“他们还没有给我任何正面反馈，要求直接和你联系。”贺国春说他拒绝了公司-1直接与政府雇员-1对话的请求因为“这样太危险。”

最近，2022年9月下旬，因为贺国春的“机关已决定给你一笔丰厚的奖金”，贺国春告诉政府雇员-1他准备为政府雇员-1提供的信息再次给政府雇员-1支付比特币 。后来，贺国春于2022年10月付给政府雇员-1约$20,000比特币。

起诉书中的控告只是指控，除非并直到被证明有罪，被告应被视为无罪。如罪名成立，贺国春面临高达60年的监禁，王面临高达20年的监禁。

此案由国家安全和网络犯罪处办理。助理联邦检察官亚历山大·A·所罗门、玛丽迪丝·A·阿法、国家安全司反情报和出口管制处庭审律师斯科特·A·克拉非主理诉讼。

被告人:

贺国春，又名“何东”或 “JACKY HE”
年龄：45
中华人民共和国

E.D.N.Y.案卷号 22-MJ-1137

王政，又名 “ZEN WANG”
年龄：37
中华人民共和国

E.D.N.Y.案卷号 22-MJ-1137

[1] 诉讼中描述的文件是政府为调查目的而准备的。它既不是从任何与被起诉公司-1相关的实际文件中提取，也不归类为 “机密”。此外，诉讼中政府雇员-1向被告提供的信息并不准确地描述与公司-1诉讼相关的实际会面、通信或其它策略。

צענטראלע פאראייניגטע תלמודישע אקאדעמיע (''CUTA'' אדער ''די שולע''), א ישיבה אין וויליאמסבורג, ברוקלין, האט זיך היינט מודה געווען אין פעדעראלע געריכט אז עס איז געווען פארמישט אין עטלעכע טיילווייזע דעקונג שווינדלען, ווי אויך א מולטי-מיליאן דאלאר פלאן צו באקומען אומיושרדיקע געלטער דעזיגנירט צו פיטערן  נויטיקע שולע קינדער.  דער פראצעס איז פארגעקומען פארן US דיסטריקט ריכטער ניקאלעס ג. גאראופיס(Nicholas G. Garaufis) .

CUTA איז אריינגעגאנגען אין א דריי יעריקן אפגעלייגטע משפט הסכם מיט דער רעגירונג אין שייכות מיט א קרימענעל אינפארמאציע איינגעגעבן היינט אין דעם מזרח'דיקן דיסטריקט פון ניו יארק וואס באשולדיקט די שולע מיט  קאנספירירן צו באגיין עלעקטראנישער שווינדל.  אלץ טייל פונעם הסכם, האט די שולע מסכם געווען צו באצאלן 5 מיליאן דאלאר קנס אין צוגאב צו מער ווי 3 מיליאן דאלאר אין  פארגיטיקונג וואס איז שוין באצאלט געווארן, צו לייזן די אויספארשונג אין דער שולעס שווינדל אויפפירעכץ. 

  אלעזר פארגעס(Elozer Porges) , דער פריערדיגע עקזעקוטיווע דירעקטאר פון CUTA, און יואל לוי(Joel Lowy) , פארגעסעס געהילף, האבן זיך ביידע אנערקענט פאר שולדיג אין מארץ 2018 פאר זייער ראלע צו קאנספירירן אויסנארן די רעגירונג.  פארגעס איז פארמשפט געווארן צו צוויי יאר אין טורמע אין אקטאבער 2019, בשעת לוי איז פארמשפט געווארן צו פינף יאר פראבע, 1000 שעה פון קאמיוניטי באדינונג און 98,407.21$ אין צוריקקער אין אפריל 2022.

בריאן פיס, US אדוואקאט פארן מזרחדיקע דיסטריקט פון ניו יארק, מייקל דזש. דריסקאל(Michael J. Driscoll) , געהילפ-דירעקטאר ממונה, פעדעראלע ביורא פון אויספארשונג, ניו יארק פעלד אפיס FBI)), בעט-אן מ. דינקינס(Bethanne M. Dinkins) , ספעציעלע אגענט ממונה, US דעפארטמענט אוו אגריקולטור, אפיס פון אלגעמיינער אינספעקטאר USDA-OIG)), און דזשויס ע. שטרויבער(Jocelyn E. Strauber) , קאמיסיאנער, ניו יארק סיטי דעפארטמענט אוו אינוועסטיגעשענס DOI)), האבן געמאלדן דעם אפמאך.

''דער אומאויפפיר פון CUTA, איז געווען סיסטעמאטיש און פארשפרייט, אריינגערעכנט גנב'ענען איבער 3 מיליאן דאלאר פאר שולע-קינדער אין נויט פון מאלצייטן,'' האט US אדוואקאט פיס פעסטגעשטעלט. ''די היינטיג רעזאלוציע גיט צו פארשטיין CUTA's פארמישונג אין די פארברעכעריי און שטעלט צו א וועג פאראויס צוריק צו צאלן און פארריכטן דעם היזק וואס איז געטאן געווארן צו דער קאמיוניטי, אין דער צייט טוט עס אויך ערלויבן CUTA ממשיך זיין צו צושטעלן חינוך פאר קינדער אין דער קאמיוניטי.

''דאס מודה זיין היינט טוט קלאר מאכן אז עס איז געווען א שטארק פארשפרייטע קולטור פון שווינדל און גייציקייט אויפן ארט אין CUTA.  מיר רעכענען זיך אז שולעס זענען ערטער ווי מען לערנט אויס סטודענטן זיך צו פירן געהעריק.  די פירער פון CUTA האבן זיך מטריח געווען צו טאן פונקט פארקערט, געשאפן פילפאכיקע סיסטעמס פון שווינדל כדי אפנארן די רעגירונג.  די FBI און אונדזערע געזעץ-היטער שותפים וועלן ממשיך זיין צו פארשן די סארטן שווינדלעריי און פלענער, צו פארזיכערן רעגירונג פראגראמען בענעפיטן פאר יענע וואס זענען דעזיגנירט געווארן צו ווערן געהאלפן אן ווערן  אויסגעניצט,'' האט דער געהילף דירעקטאר ממונה דריסקל ארויסגעזאגט.

די DOI קאמיסיאנערין דזשאסלין ע. שטרויבער האט געזאגט, ''אזוי ווי עס איז פארצייכנט אין דעם משפט הסכם, איז CUTA געווען פארמישט אין א ברייטן פלאן צו גנב'נען מיליאנען דאלארן פון ציבורדיקע געלטער, אוועקפירנדיק געלט וואס איז  געשטעלט אויף צו פיטערן שולע-קינדער און צוגעהאלפן שטייער און בענעפיטן שווינדל דורך זייערע ארבעטער.   DOI און אירע געזעץ-היטער שותפים אין די US אדוואקאטס אפיס פאר דער מזרח'דיקן דיסטריקט פון ניו יארק, די FBI און די USDA זענען איערגעגעבן צו פארמיידן שווינדלערייען וואס גראבט אונטער ציבור'דיקע הילף פראגראמען.  מיט דער רעזעלוציע, וואס איז כולל א 5 מיליאן דאלאר קנס, האט CUTA אנערקענט און וועט טראגן דאס אחריות פאר איר שלעכטע אויפפירונג.

''USDA אפיס פון אלגעמיינער אינספעקטאר, ספעציעלע אגענט ממונה בעט-אן מ. דינקינס האט געזאגט:  דאס קינד און דערוואקסענע קעיר עסן פראגראם (CACFP) איז באשאפן געווארן צו צושטעלן עסנווארג און שפייזונג צו יענע וואס נויטיקן זיך שטארק אויף דער הילף. יענע וואס נעמען אנטייל אין שווינדל און קרומבאניץ פון USDA פיטער פראגראמען וועלן ווערן געפארשט דורך אונדזער אפיס מיטן פולסטן פארנעם.  אונדזער בשותפות'דיקע אויספארשונג מיט די פעדעראלע ביורא פון אויספארשונג און דער ניו יארק סיטי דעפארטמענט פון אויספארשונג אידענטיפיצירט יענע וועלכע זוכן צו פארדינען פון דער CACFP דורך אומלעגאלע פלענער. די USDA אפיס פון אלגעמיינעם אינספעקטאר וועט ממשיך זיין זיך אפגעבן צו פארש-רעסורסן, וואס וועט ארבעטן מיט אונדזער געזעץ-היטער און פראקורירישע שותפים, כדי אפצוהיטן די ערלעכקייט פון די פראגראמען און ברענגען אין געריכט די וואס באגייען שווינדל.

לויט די שולד אנערקענונג פון דעם באריכט פון די פאקטן און אנדערע פובליק דאקומענטן, צווישן 2014 און 2016, האט CUTA באקומען מער ווי 3.2 מיליאן דאלאר אויסגעצאלט פאר אן עסנווארג פראגראם געצילט צו פיטערן סטודענטן פון דער ישיבה. די פראגראם איז געווען כמעט אינגאנצן פאלש.  אנשטאט פיטערן די קינדער, האט די שולע געפירט דאס געלט אין אן אנדער ריכטונג, ווי אויך  סובסידירט מסיבות פאר דערוואקסענע. צו באגיין דאס פארברעכעריי, האט די שולע פאבריצירט רעקארדס און געמאכט צענדליגע געשוואוירענע פארדרייטע פאקטן צו רעגירונגס אגענטורן.

בשעת דעם אויספארש וועגן די פאלשע עסנווארג פראגראם, האבן די אויספארש קאמאנדע אנטדעקט באווייזן פון נאך אנדערע שווינדלערישע התנהגות'ן ביי דער שולע און אירע ארבעטער. אין צוגאב צו דער אויבנדערמאנטער פאלשער פראגראם, איז געווען פארשידענע שכירות פירעכצער וואס האט ערלויבט די שולעס איינגעשטעלטע אפטאן בענעפיט און שטייער שווינדלערייען.

צום ביישפיל, די שולע האט באצאלט אירע איינגעשטעלטע אויף אן אויפן וואס האט שטארק אונטער-רעפרעזענטירט זייערע איינגעשטעלטע ''אויף די ביכער'' הכנסות.  די שולע האט דאס אויסגעפירט אויף עטלעכע אופנים.  אויסער באצאלן אירע איינגעשטעלטע מיט מזומן, האט די שולע צוגעשטעלט אירע ארבעטער מיט ''קופאנען'' וואס מ'קען אויסלייזן אין לאקאלע געשעפטן פאר א געוויסע מזומן-ווערדע.  די איינגעשטעלטע קענען נוצן די קופאנען איינצוקויפן, און די געשעפטן האבן דאן אויסגעלייזט די קופאנען אין די שולע פאר געלט. די ''קופאנען'' האבן אזוי נאך געהאלפן באשאפן אן אונטערערדישע עקאנאמיע, אין וועלכע די איינגעשטעלטע האבן באקומען נוצלעכע הכנסה אומבאקאנט צו דער רעגירונג.   די שולע האט צוגעשטעלט אנדערע ''נישט אויף די ביכער'' הכנסות אין אנדערע וועגן, אזוי ווי דורך באהאלטענע אינוועסטירונג קאנטעס.

דער אויספארש האט פעסטגעשטעלט אז די שולע האט זיך באטייליגט אין די מעשים, אין טייל, צו העלפן דערגאנצן שווינדלערייען אויסגעפירט דורך אירע ארבעטער. דורך אונטעררעפרעזענטירן אירע איינגעשטעלטעס הכנסה, האט CUTA דערמעגלעכט אירע ארבעטער צו באקומען פארשידענע פובליק בענעפיטן - ווי אויך העלטקעיר און קינדקעיר - וואס זיי וואלטן נישט געקענט באקומען אויב די איינגעשטעלטע וואלטן באריכט ערלעך זייער הכנסה.  די שולע האט ווייטער געשטיצט די באמיאונגען דורך צושטעלן בריוו צו רעגירונג אגענטורן וואס האבן פאלש געשריבן אז זייערע ארבעטער האבן נאר פארדינט די ''אויף די ביכער'' סכומים וואס די שולע האט אריינגעגעבן צו די שטייער אויטאריטאטן, אזוי נאך ערלויבן זייערע איינגעשטעלטע צו באגיין וועלפעיר און אנדערע בענעפיטן שווינדלערייען.  די שולע, ווידער, האט אויך פארדינט פון אירע ארבעטערס פארדרייאונגען, ווייל זי האט אנגענומען און איינקאסירט קינד-קעיר קופאנען וואס די סטעיט האט צוגעשטעלט צו אירע איינגעשטעלטע, וועלכע איר ארבעטער האבן נאר קוואליפיצירט צוליב די שולעס אייגענע פאלשע-אויסטייטשונגען.  דער אנגעקלאגטער יואל לוי איז געווען איינער צווישן אסאך CUTA איינגעשטעלטע וואס האט זיך באניצט מיט דעם דריידל. 

דערצו, צו דעם אויבנדערמאנטער שכירות שווינדל, האט די שולע צוגעשטעלט ''באווייז זיך נישט'' ארבעט פאר נישט קיין איינגעשטעלטע, וואס האט גורם געווען צו ''פאסטאראטן'' שטייער פרייהייטן פאר אזעלכע וואס שטעלן נישט צו פאסטאראט סערוויסעס, אויסגעזוכט און באקומען טעכנעלאגיע געלטער פאר נישט קיין שייכות'דיקע באניץ צו דער שולעס עדיוקעישענעל צוועקן און צוגעשטעלט קינד-קעיר סערוויסעס אָן קיין געהעריגע לייסענסעס.

אזוי ווי פארשריבן אין דעם הסכם, האט דער אפיס דערגרייכט א רעזעלוציע מיט דער שולע, אין טייל, צוליב די שולעס פארבעסערונג באמיאונגען, אסאך זענען שוין איינגעפירט געווארן פאר א פּּאָר יאר.  אין דערצו, אין אנערקענען און צו צושטעלן א נול-טאלעראנץ פאליסי צו דעם אויבנדערמאנטע אויפפירעכץ, האט די שולע אנגענומען א רייע פון ממשות'דיגע פונדעמענטאלע ענדערונגען.  צווישן אנדערע זאכן, האט זי אויסגעטוישט אירע עקזעקוטיווע אדמיניסטראציע פערסאנאל; אנטוויקעלט א זאץ פון פינאנציעלע און פראצעדורעלע קאנטראלען; איינגעפירט אן אויספאלג האנטביכל צו פירן און אננעמען עטישע באשליסונגען; באשאפן אן אויפזע קאמיסיע, אכטונג געבן, איינצופירן די נייע סטאנדארטן; און דורכגעפירט רעוויזיעס צו פארזיכערן כסדר'דיקע אויספאלגונג.  דערצו, צום שטראף און רעסטיטוציע דערמאנט אויבן, וועט די שולע זיין אויסגעשטעלט צו דער השגחה פון אן אומאפהענגיקער קאנטראלירער אויף א תקופה פון דריי יאר.  דער קאנטראלירער וועט שאצן די שולעס אויספאלגונג מיט דעם אפגעלייגטע פראקורירונג הסכם און פארזיכערן אז די שולע טוט ווייטער אויספאלגן אירע לעגאלע און עטישע אבליגאציעס.

דער הסכם וואס מ'האט היינט געמאלדן איז טייל פון אן אויספארשונג וואס איז געווארן אנגעפירט דורך דער US אדוואקאטס אפיס פאר דער מזרח'דיקע דיסטריקט פון ניו יארק, די FBI's ניו יארק פעלד אפיס, USDA אפיס פון אלגעמיינער אינספעקטארס אפיס פון פארשונגען צפון מזרח געגנט אפיס און דער ניו יארק סיטי דעפארמענט פון אויספארשונגען.  דער קעיס ווערט באהאנדעלט ביי דער אפיסעס פובליק גאנצקייט אפטייל.  דער געהילף US אדוואקאט עריק פאולסון(Erik Paulsen)  איז דער אחראי פון די פראקורירונג.  

דער אנגעקלאגטע: CENTRAL UNITED TALMUDIC ACADEMY
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR-378 (NGG)

A criminal complaint was unsealed today in federal court in Brooklyn charging two People’s Republic of China (PRC) intelligence officers with attempting to obstruct a criminal prosecution in the Eastern District of New York.  The defendants remain at large.

According to court documents, Guochun He, also known as “Dong He” and “Jacky He,” and Zheng Wang, also known as “Zen Wang,” allegedly orchestrated a scheme to steal files and other information from the U.S. Attorney’s Office for the Eastern District of New York related to the ongoing federal criminal investigation and prosecution of a global telecommunications company (Company-1) based in the PRC, including by paying approximately $61,000 in Bitcoin bribes to a U.S. government employee who the defendants believed had been recruited to work for the PRC, but who in fact was a double agent working on behalf of the Federal Bureau of Investigation (FBI). 

Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General for National Security; and Christopher Wray, Director, FBI, announced the charges.

“Today’s complaint underscores the unrelenting efforts of the PRC government to undermine the rule of law,” stated United States Attorney Peace.  “As alleged, the case involves an effort by PRC intelligence officers to obstruct an ongoing criminal prosecution by making bribes to obtain files from this Office and sharing them with a global telecommunications company that is a charged defendant in an ongoing prosecution.  We will always act decisively to counteract criminal acts that target our system of justice.”

“Far more than an effort to collect information or intelligence, the actions of the PRC intelligence officers charged in this case must be called out for what they are:  an extraordinary intervention by agents of a foreign government to interfere with the integrity of the U.S. criminal justice system, compromise a U.S. government employee, and obstruct the enforcement of U.S. law to benefit a PRC-based commercial enterprise,” stated Assistant Attorney General for National Security Matthew G. Olsen.  “The Department of Justice will not abide nation-state actors meddling in U.S. criminal process and investigations, and will not tolerate foreign interference with the fair administration of justice.”

“The mission of the FBI is to protect both the American people and uphold the Constitution of the United States—and this case represents a threat to both,” stated FBI Director Wray.  “By attempting to steal documents from the Eastern District of New York, intelligence officers from the People’s Republic of China threatened not just the proceedings of our criminal justice system but the very idea of justice itself.  A threat to justice is a threat to the foundation of our free society, and the FBI remains constantly vigilant and committed to protecting the U.S. from these threats.”

Guochun He and Zheng Wang are charged with attempting to obstruct a criminal prosecution of Company-1 in federal district court in the Eastern District of New York.  Defendant He also is charged with two counts of money laundering based upon bribe payments totaling approximately $61,000 in Bitcoin, made in furtherance of the scheme.  

According to the complaint, the defendants are PRC intelligence officers conducting foreign intelligence operations targeting the United States, on behalf of the PRC government and for the benefit of Company-1.  Starting in 2019, they directed an employee at a U.S. government law enforcement agency (GE-1), whom they believed they had recruited as an asset, to steal confidential information about the criminal prosecution of Company-1 in order to interfere with that prosecution.  In actuality, GE-1 was working as a double agent on behalf of the FBI.

In September 2021, the defendants tasked GE-1 with reporting about meetings that GE-1 was purportedly having with prosecutors in Brooklyn at the U.S. Attorney’s Office for the Eastern District of New York.  In written communications, the defendants said they were particularly interested in knowing which Company-1 employees had been interviewed by the government and in obtaining a description of the prosecutors’ evidence, witness list, and trial strategy. 

In October 2021, GE-1 used an encrypted messaging program to send the defendants a single page from a purported internal strategy memorandum from the U.S. Attorney’s Office for the Eastern District of New York regarding the Company-1 case.  The document appeared to be classified as “SECRET” and to discuss a plan to charge and arrest two current Company-1 employees living in the PRC.[1]  Guochun He responded that the document was “exactly what I am waiting for” and that he was “waiting for the feedback from some guys” about whether there were any questions about the document.  Guochun He then paid GE-1 approximately $41,000 in Bitcoin for stealing that document.

GE-1 also asked the defendants for any feedback about the “SECRET” document.  In November 2021, Guochun He stated that “[Company-1] didn’t give me specifically feedback now yet, but they are obviously interested in it, and my boss and they need further information.”  Guochun He further told GE-1 that “[Company-1] obviously will be interested” in GE-1 stealing another part of the strategy memorandum, and “maybe will offer more” for that information.  In December 2021, in response to a further request by GE-1 for feedback or guidance from Company-1 about “what they want me to get,” Guochun He explained that “they didn’t give me any positive feedback yet, and demanded to communicate with you directly.”  Guochun He said that he refused Company-1’s request to speak directly to GE-1 because “it’s too dangerous.”

More recently, in late September 2022, Guochun He told GE-1 that he intended to provide GE-1 with additional payment in Bitcoin for the information GE-1 had provided, because Guochun He’s “organization already decided to give a good reward to you.”  Guochun He subsequently, in October 2022, paid GE-1 approximately $20,000 in Bitcoin.

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, Guochun He faces up to 60 years of imprisonment and Wang faces up to 20 years of imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution.

The Defendants:

Guochun HE, also known as “DONG HE” or “JACKY HE”
Age:  45
PEOPLE’s REPUBLIC OF CHINA

E.D.N.Y. Docket No.  22-MJ-1137

ZHENG WANG, also known as “ZEN WANG”
Age:  37
PEOPLE’s REPUBLIC OF CHINA

E.D.N.Y. Docket No.  22-MJ-1137

[1] The documents described in the complaint were prepared by the government for purposes of the investigation and were neither taken from any actual document related to the prosecution of Company-1 nor classified as “SECRET.”  Furthermore, the information in the complaint that was provided by GE-1 to the defendants did not accurately recount actual meetings, communications, or other strategy related to the Company-1 prosecution.

Earlier today, at the federal courthouse in Central Islip, United States District Judge Joanna Seybert sentenced Christopher Bertsch to 28 years in prison for sexual exploitation of a child.  As part of his sentence, Bertsch must register as a sex offender upon his release from prison and not have unsupervised contact with minors.  Bertsch pleaded guilty to the charge in November 2020.

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

“Today’s sentence removes a dangerous predator who not only abused minors and created videos of it but, horrifically, also operated a chat room where he instructed adults on how to abuse minors and to create and share images of it,” stated United States Attorney Peace.  “The outstanding undercover work of the FBI made this prosecution possible.  I urge parents and caregivers to encourage their children to tell a trusted adult if anyone asks them to engage in inappropriate behavior. Protecting children and holding those who harm vulnerable victims accountable for their actions are priorities of our Office.”

As set forth in the government’s sentencing memorandum and other court filings as well as on the record in court proceedings, Bertsch sexually abused an 18-month-old toddler, created child pornography with that victim and others, and generated a large collection of child pornography, including what he created and what he received from members of the chat room he operated.  Bertsch’s child pornography trove included dozens of videos and hundreds of images of child pornography depicting the defendant engaged in sexual conduct with children.  An analysis of his chat room activity revealed that Bertsch sent the images of himself abusing children to others. 

In addition, in the chat room he operated, Bertsch instructed other adults on how to initiate and carry out sexual abuse of children, while recording it at the same time.  Admission to Bertsch’s chat room required photographic proof of the applicant with a minor under their control.  Bertsch shared photos of his sexual abuse of children and encouraged others to engage in such abuse and record it for his viewing.      

 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 Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.

The Defendant:

CHRISTOPHER BERTSCH
Age:  38
Wantagh, New York

E.D.N.Y. Docket No. 20-CR-109 (JS)

Central United Talmudic Academy (“CUTA” or “the School”), a yeshiva in Williamsburg, Brooklyn, admitted today in federal court that it was involved in several overlapping frauds, including a multi-million dollar scheme to wrongfully obtain funds designated to feed needy schoolchildren.  The proceeding was held before United States District Judge Nicholas G. Garaufis.

CUTA has entered into a three-year deferred prosecution agreement with the government in connection with a criminal information filed today in the Eastern District of New York charging the school with conspiring to commit wire fraud.  As part of this agreement, the School has agreed to pay $5 million in penalties, in addition to more than $3 million in restitution it has already paid, to resolve the investigation into the school’s fraudulent conduct. 

Elozer Porges, the former executive director of CUTA, and Joel Lowy, Porges’s assistant, both pleaded guilty in March 2018 for their roles in the conspiracy to defraud the government.  Porges was sentenced to two-years’ imprisonment in October 2019, while Lowy was sentenced to five-years’ probation, 1000 hours of community service and $98,407.21 in restitution in April 2022.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the agreement.

“The misconduct at CUTA was systemic and wide ranging, including stealing over $3 million allocated for schoolchildren in need of meals,” stated United States Attorney Peace. “Today’s resolution accounts for CUTA’s involvement in those crimes and provides a path forward to repay and repair the damage done to the community, while also allowing CUTA to continue to provide education for children in the community.”

“Today’s admission makes clear there was a pervasive culture of fraud and greed in place at CUTA.  We expect schools to be places where students are taught how to do things properly.  The leaders of CUTA went out of their way to do the opposite, creating multiple systems of fraud in order to cheat the government.  The FBI and our law enforcement partners will continue to investigate these types of frauds and schemes to ensure government programs benefit those they were designed to help without being exploited,” stated Assistant Director-in-Charge Driscoll.

DOI Commissioner Jocelyn E. Strauber said, “As detailed in the prosecution agreement, CUTA engaged in an extensive scheme to steal millions of dollars in public funds, diverting money intended to feed schoolchildren and facilitating tax and benefit fraud by its employees.  DOI and its law enforcement partners in the United States Attorney's Office for the Eastern District of New York, the FBI and the USDA are committed to the prevention of fraud that undermines public assistance programs.  With this resolution, which includes a $5 million penalty, CUTA has acknowledged and will be held accountable for its misconduct.”

“USDA Office of Inspector General, Special Agent-in-Charge Bethanne M. Dinkins stated: The Child and Adult Care Food Program (CACFP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent.  Our joint investigation with the Federal Bureau of Investigation and the New York City Department of Investigation identified those who sought to profit from the CACFP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”

According to admissions in the statement of facts and other public documents, between 2014 and 2016, CUTA received more than $3.2 million in reimbursement for a meal program that purported to feed students of the yeshiva.  The program was almost entirely fictitious.  Rather than feed its children, the School diverted the funding, including to subsidize parties for adults. To commit the crime, the School fabricated records and made dozens of sworn misrepresentations to government agencies.

During the investigation into the fictitious meal program, the investigative team uncovered evidence of other fraudulent conduct by the School and its employees.  In addition to the program fraud noted above, this included various payroll practices that enabled the School’s employees to commit benefit and tax fraud.

For example, the School paid its employees in a manner that grossly underrepresented their employees’ “on the books” income.  The School accomplished this in several ways.  In addition to paying its employees in cash, the School provided its employees with “coupons” that were redeemable at local stores for a specific cash value.  Employees could use these coupons to make purchases, and the stores would then redeem the coupons back to the school for payment.  These “coupons” thus facilitated the creation of an underground economy, in which employees obtained usable income unknown to the government.  The school provided additional “off the books” income in other ways, such as through undisclosed investment accounts.

The investigation determined that the School engaged in these practices, in part, to facilitate additional frauds committed by its employees.  By underrepresenting its employees’ income, CUTA enabled its employees to obtain various public benefits—including health care and childcare—that would not have been available if the employees honestly reported their income.  The School further supported these efforts by providing letters to government agencies falsely stating that their employees only earned the “on the books” amount the School disclosed to the taxing authorities, thus enabling their employees to commit welfare and other benefits fraud.  The School, in turn, also benefited from its employees misrepresentations, as it then accepted and cashed child care vouchers provided to its employees’ by the State, which its employees only qualified for as a result of the School’s own misrepresentations.  Defendant Joel Lowy was among the many CUTA employees to avail themselves of this scheme. 

In addition to the payroll fraud described above, the School also provided no-show jobs to non-employees, facilitated “parsonage” tax exemptions for individuals who did not provide parsonage services, sought and obtained technology funding for uses unrelated to the school’s educational purposes and provided child care services without proper licenses.

As outlined in the agreement, the Office reached this resolution with the School, in part, due to the School’s remedial efforts, many of which have been in effect for several years.  In addition to recognizing and applying a zero-tolerance policy to the conduct described above, the School engaged in a series of significant structural changes.  Among other things, it replaced its executive management team; developed a set of financial and procedural controls; instituted a compliance manual to guide ethical decision-making; created an oversight committee to oversee the implementation of the new standards; and conducted audits to ensure ongoing compliance.  In addition to the fine and restitution referenced above, the School will be subject to the supervision of an independent Monitor for a three-year period.  The Monitor will assess the School’s compliance with the deferred prosecution agreement and ensure that the School continues to follow its legal and ethical obligations.

The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI’s New York Field Office, USDA Office of Inspector General’s Office of Investigations’ Northeast Regional Office and the New York City Department of Investigation.  The case is being handled by the Office’s Public Integrity Section.  Assistant U.S. Attorney Erik Paulsen is in charge of the prosecution.  

The Defendant: CENTRAL UNITED TALMUDIC ACADEMY
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR-328 (NGG)

Earlier today, a federal jury in Brooklyn convicted Lafayette Morrison of Hobbs Act robbery and conspiracy to commit Hobbs Act robbery in connection with the March 7, 2020 armed robbery of more than $280,000 in cash from Aqueduct Racetrack in South Ozone Park, Queens.  Morrison and co-defendant Lamel Miller were also convicted of brandishing a firearm, and Morrison of obstruction of justice.  Miller pleaded guilty to the robbery in September 2022. When sentenced, the defendants each face minimum sentences of seven years’ imprisonment, and up to life imprisonment.  The verdict followed a five-day trial before United States District Court Judge Ann M. Donnelly. 

Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict. 

“Their armed robbery of Aqueduct Racetrack played out like a Hollywood movie heist, but with a bad ending for the defendants who now face steep prison sentences,” stated United States Attorney Peace.  “Today’s verdict proves once again that it is a losing bet to commit a violent crime and think that you will outrun the law.”

“This should serve as a warning to those who believe that armed robbery will be tolerated by the law enforcement community and the public,” said ATF Special Agent-in-Charge DeVito.  “The men and women of ATF, and our NYPD partners in the ATF Strategic Pattern Armed Robbery and Technical Apprehension (SPARTA) Group, are at work daily to investigate and arrest those who believe they can prey on New Yorkers without consequence. Thanks to the NYPD’s Queens Robbery Squad and U.S. Attorney's office for the outcome of this case.”

“This violent robbery plot, featuring a racetrack security guard who betrayed his duty, showed a callous disregard for several victims,” said NYPD Commissioner Sewell.  “Thanks to our joint law enforcement efforts, those responsible will now bear the consequences of their despicable acts. I want to thank our NYPD officers, the U.S. Attorney for the Eastern District, the ATF’s New York Field Division, and everyone involved in this case for their exceptional work.”

As proven at trial, at approximately 10 p.m. following the Gotham Day stakes races at Aqueduct, Miller and a co-conspirator held up at gunpoint several racetrack employees – including Morrison, who was employed as a racetrack security guard – as they were transporting more than $284,000 in cash earnings to a vault.  Miller and the co-conspirator emerged from their hiding spot in a stairwell and confronted the employees at gunpoint, taking the cash and employees’ cell phones, and forcing the employees into a closet.  Miller and the co-conspirator then went to a hotel where they divided up the robbery proceeds; they each took $100,000 and gave the remaining $84,000 to Morrison who had posed as a victim during the robbery, but who was actually the robbery crew’s “inside man,” providing information in advance about where and when the money would be transported to the vault.  When interviewed by federal law enforcement officers after the robbery, Morrison repeatedly lied to officers, including by claiming to be a victim of the crime and misidentifying a photograph of his childhood friend, Miller. 

Assistant United States Attorneys Matthew R. Galeotti and Rachel A. Bennek are in charge of the prosecution, with the assistance of Paralegal Specialist Anna November. 

The Defendants:

LAMEL MILLER
Age: 39
Queens, New York

LAFAYETTE MORRISON
Age: 39
Jamaica, Queens

E.D.N.Y. Docket Nos. 20-CR-216 (AMD)

Earlier today, in federal court in Central Islip, John Drago, the former owner/operator of several check cashing businesses on Long Island, was sentenced to 4 years in prison for illegally structuring financial transactions and payroll tax evasion. The proceeding took place before United States District Judge Gary R. Brown.  In addition to his prison sentence, Judge Brown ordered Drago to forfeit $253,000 and to pay restitution of approximately $593,000.  Drago pleaded guilty to fraud charges in September 2021.  As a result of his plea, Drago was required to surrender his check cashing licenses, his federal money services business registrations and he is barred from applying for any such licenses or registrations in the future.

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

“Drago operated his check cashing business as a haven for tax cheats like himself, concealing over $9.5 million from the federal government,” stated United States Attorney Peace.  “Today’s sentence demonstrates that significant consequences follow business owners who place greed above public good.” 

Mr. Peace expressed his thanks to the New York State Department of Financial Services for their assistance.

"Drago used his seemingly legitimate check cashing business to defraud the government while lining his pockets.  Over several years, he used his employees do his dirty work and, at his request, they cashed checks in a way to avoid IRS reporting requirements, concealing more than $9.5 million in check cashing transactions.  His scheme to make some extra cash has now resulted in him spending time behind bars, where he will no longer have any pockets to be lined," said Thomas Fattorusso, Special Agent in Charge of IRS-CI.

According to court filings and facts presented at the plea and sentencing proceedings, Drago owned and operated check cashing businesses on Long Island, including Kayla Check Cashing Corp., North Island Check Cashing Corp., South Island Check Cashing Corp., East Island Check Cashing Corp., Bay Shore Check Cashing Corp. and Brentwood Check Cashing Corp. (collectively, the “Kayla Companies”).  Financial institutions are required to file a Currency Transaction Report (CTR) for each cash transaction in excess of $10,000.  In addition, a CTR is required to be filed by the financial institution when multiple checks, the total value of which exceeds $10,000, are cashed in a single day.

From January 2010 to October 31, 2013, Drago instructed employees to cash multiple checks in excess of $10,000 in a single day for certain customers without filing required CTRs.  In addition, to avoid the required CTR filings, Drago directed employees to deposit and cash checks that had been submitted together on a single day in amounts in excess of $10,000.  Drago also instructed employees to tell certain customers who presented individual checks in amounts exceeding $10,000 to return with multiple checks in amounts that were less than $10,000 to avoid the reporting requirement for such financial transactions.  As a result of Drago’s scheme, more than $9.5 million in check cashing transactions were concealed from the IRS.

Between April 1, 2012 and July 31, 2013, Drago paid overtime wages and commissions to employees of the Kayla Companies in cash and failed to inform the IRS of the payment of these cash wages.  Drago falsely underreported to the IRS the gross wages paid to his employees to avoid paying the full amount of Federal Insurance Contribution Act taxes that the Kayla Companies owed.  In addition, as part of his plea, Drago agreed to pay restitution to the IRS for evading personal income taxes between 2010 and 2013.  Overall, Drago’s payroll and personal tax evasion cost the IRS approximately $590,000.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Burton T. Ryan, Jr., Bradley T. King and Madeline O’Connor are in charge of the prosecution.

The Defendant:

JOHN DRAGO
Age:  58
Central Islip, New York

E.D.N.Y. Docket No. 18-CR-394 (S-1) (GRB)

An eight-count indictment was unsealed today in federal court in Brooklyn charging a total of seven nationals of the People’s Republic of China (PRC)—Quanzhong An, his daughter Guangyang An, Tian Peng, Chenghua Chen, Chunde Ming, Xuexin Hou, and Weidong Yuan—with participating in a scheme to cause the forced repatriation of a PRC national residing in the United States. The lead defendant, Quanzhong An, allegedly acted at the direction and under the control of various officials with the PRC’s government’s Provincial Commission for Discipline Inspection (Provincial Commission)—including Peng, Chen, Ming, and Hou—to conduct surveillance of and engage in a campaign to harass and coerce a U.S. resident to return to the PRC as part of an international extralegal repatriation effort known as “Operation Fox Hunt.”

Quanzhong An and Guangyang An were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. The remaining defendants remain at large.

Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.

“As alleged, the defendants engaged in a unilateral and uncoordinated law enforcement action on U.S. soil on behalf of the government of the People’s Republic of China, in an effort to cause the forced repatriation of a U.S. resident to China,” stated United States Attorney Peace. “The United States will firmly counter such outrageous violations of national sovereignty and prosecute individuals who act as illegal agents of foreign states.”

Mr. Peace thanked the Internal Revenue Service Criminal Investigations for its work on the case.

“The victims in this case sought to flee an authoritarian government, leaving behind their lives and family, for a better life here. That same government sent agents to the United States to harass, threaten, and forcibly return them to the People's Republic of China. The actions we allege are illegal, and the FBI will not allow adversaries to break laws designed to protect our nation and our freedom,” stated FBI Assistant Director-in-Charge Driscoll.

As alleged in the indictment, the defendants participated in an international campaign to threaten and intimidate John Doe-1, a resident of United States, and his family to force John Doe-1 to return to the PRC. These efforts were part of “Operation Fox Hunt,” an initiative by the PRC’s Ministry of Public Security to locate and repatriate alleged fugitives who flee to foreign countries, including the United States. The PRC government has targeted these alleged fugitives and their families to compel cooperation with the PRC government and self-repatriation to the PRC. The PRC government has taken such law enforcement actions on U.S. soil in a unilateral manner without approval, of or coordination with, the U.S. government.

Quanzhong An, who is a businessman operating in Queens, New York, and the majority shareholder of a hotel in Flushing, acted as the primary U.S.-based liaison for the Provincial Commission’s targeting of John Doe-1 and his family members, including his son, John Doe-2, both in the United States and in the PRC. As part of the scheme, various PRCbased conspirators forced a relative in the PRC (John Doe-3) to travel from the PRC to the United States in September 2018 to meet with John Doe-2 and convey threats that were intended to coerce John Doe-1’s return to the PRC. Yuan—John Doe-3’s superior at the PRC’s State Administration of Taxation—escorted John Doe-3 from the PRC to the United States, under the guise of a visit with a tour group.

On September 11, 2018, John Doe-2 met with John Doe-3 at a restaurant in Queens. In the recorded meeting, John Doe-3 explained that he had been forced to travel to the United States by the Provincial Commission, which wanted to repatriate the 100 most wanted fugitives, a group that purportedly includes John Doe-1. Yuan then joined John Doe-2 and John Doe-3 at the restaurant and indicated that he had been “tasked to relay the message” to John Doe-1 that the “leadership in China would like to encourage the elite overseas Chinese to return” and that the PRC government had already caused the repatriation of 80 of the 100 most wanted fugitives. Yuan explained that he had made “a special trip here,” as John Doe-1’s issue needed to be resolved “sooner or later,” and John Doe-1 needed to return to the PRC.

PRC-based defendants and coconspirators also engaged in a pattern of harassment targeting John Doe-1’s family members. In November 2017, Hou wrote John Doe-2 warning him that “coming back and turning yourself in is the only way out.” Hou further threatened that “avoidance and wishful thinking will only result in severe legal punishments.”The PRC government also harassed John Doe-1 and John Doe-2 through the filing of a lawsuit in New York State court, alleging that John Doe-1 had stolen funds from his former PRC based employer and that John Doe-2 had knowledge of and benefitted from his father’s scheme.

In a series of recorded meetings in 2020, 2021, and 2022, Quanzhong An repeatedly met with John Doe-2 and attempted to persuade John Doe-2 to cause the return of John Doe-1 to the PRC. In these meetings, Quanzhong An acknowledged that he is a member of the Standing Committee of the Chinese People’s Political Consultative Conference (CPPCC), which enforces the rules and regulations of the Chinese Communist Party (CCP) abroad. At various times, he attributed his instructions to Chen, Ming, and Peng and acknowledged that the Fox Hunt operation was motivated by the PRC government’s need to “save their faces” and repatriate as many fugitives as possible.

In the meetings, Quanzhong An admitted that the civil lawsuit filed against John Doe-1 and John Doe-2 would be withdrawn if John Doe-1 returned to the PRC. He stated that “they are still suing you to place additional pressure on you” and “will keep pestering you through a lawsuit” because the cost of it “really is a drop in the bucket for a country to spend $1 billion or $0.8 billion to meet the political task assigned by the Central Government.”

Quanzhong An admitted that he was acting as an agent of the Provincial Commission to increase his standing in the PRC. During his meetings with John Doe-2, Quanzhong An repeatedly transmitted threats on behalf of the PRC government. If John Doe-1 did not return, the PRC government would “keep pestering you, [and] make your daily life uncomfortable,” in addition to actions to “target and monitor” John Doe-1’s relatives in the PRC. On another occasion, he stated that “they will definitely find new ways to bother you” and “it is definitely true that all of your relatives will be involved.”

As set forth in the detention memorandum, Quanzhong An met with John Doe-2 again on September 29, 2022. During this meeting, Quanzhong An pressed for John Doe-1 to execute an agreement to return to the PRC in advance of the CCP’s 20th National Congress, which began on October 16, 2022. As part of such agreement, Quanzhong An sought a written confession from John Doe-1, which would be submitted directly to the PRC government.

As also alleged in the indictment, Quanzhong An and Guangyang An engaged in a money laundering scheme involving millions of dollars from the PRC to the U.S. financial system. As part of the scheme, the defendants and their coconspirators repeatedly lied to U.S. financial institutions to obscure the ownership and control of the funds. As a result of the money laundering charge, the government has charged forfeiture allegations against Quanzhong An’s hotel in Flushing, New York, as well as the defendants’ residences in Roslyn, New York.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of acting as agents of the PRC, Quanzhong An faces a maximum sentence of ten years in prison. The money launderingconspiracy charge against Quanzhong An and Guangyang An carries a maximum sentence of twenty years in prison. The remaining charges, including conspiring to act as agents of the PRC and conspiring to commit interstate and international stalking, carry a maximum sentence of five years in prison.

The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Sara K. Winik, and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney
Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section. Assistant United States Attorney Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants: QUANZHONG AN
Age: 55
Roslyn, New York

GUANGYANG AN
AGE: 34
Roslyn, New York

TIAN PENG
AGE: 38
PEOPLE’S REPUBLIC OF CHINA

CHENGHUA CHEN
Age: Unknown
PEOPLE’S REPUBLIC OF CHINA

CHUNDE MING
Age: Unknown
PEOPLE’S REPUBLIC OF CHINA

XUEXIN HOU
Age: 52
PEOPLE’S REPUBLIC OF CHINA

WEIDONG YUAN
Age: 55
PEOPLE’S REPUBLIC OF CHINA

E.D.N.Y. Docket No. 22-CR- 460 (KAM)

A ten-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging defendants Carlos Ernesto Angucho Guerrero, Eduard Mauricio Rendon Agudelo, Clemente Riascos Coral, Luis Fernando Sánchez Isaza, Alejandro Alberto Estupiñan Alzate, Belcy Gomez Murcia, Diego Fernando Ceron Munoz, Jhon Armando Panta Gutierrez, and Carlos Adolfo Meza Sanchez, with an international cocaine-distribution conspiracy that resulted in the attempted distribution of thousands of kilograms of cocaine destined for the United States.

Estupiñan Alzate was extradited to the Eastern District of New York from Colombia today.  The defendant was arraigned this morning before United States Magistrate Judge Ramon Reyes, Jr., and ordered detained pending trial. 

Breon Peace, United States Attorney for the Eastern District of New York; Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA); New York Division; Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI), New York; Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Steven A. Nigrelli, First Deputy Superintendent, New York State Police (NYSP), announced the charges.

“As alleged, the defendants’ attempt to traffic thousands of kilograms of cocaine into our communities was stopped by the coordinated cross-border efforts of law enforcement,” stated United States Attorney Peace.  “This Office is working tirelessly with our international and domestic law enforcement partners to hold these narcotics distributors accountable and dismantle their criminal enterprise.”

Mr. Peace expressed his appreciation to the Direccion Antinarcoticos, Unidad Especializada Contra el Trafico de Cocaina and Sensitive Investigative Unit of the Colombian National Police and the Ecuadorian National Police’s Sensitive Investigations Unit for their assistance.

“This investigation shut down a drug pipeline that shipped multi-ton quantities of cocaine from clandestine laboratories in the jungles of Colombia to the streets of the United States,” said DEA Special Agent-in-Charge Tarentino.  “I commend the men and women in the New York Strike Force, U.S. Attorney’s Office Eastern District of New York, DEA Special Operations Division, DEA Bogota Country Office, and the Colombian National Police for their diligent efforts to intercept and identify the organization responsible for trafficking this significant amount of poison.”

“HSI, in collaboration with our partners at the New York Strike Force, leverages every resource across the globe to stem the tide of illegal substances into our communities. It’s a direct result of these multi-lateral relationships that law enforcement successfully disrupted the drug trafficking organization’s capability to profit from threatening our public safety,” said HSI New York Acting Special Agent-in-Charge Alfonso

“Today’s charges demonstrate that the investigative efforts of New York City law enforcement are far-reaching, precisely focused, and patient,” stated NYPD Commissioner Sewell. “As long as individuals – wherever they are based – are involved in illegal narcotics trafficking, the NYPD and our partners will relentlessly work to stop the threat to public safety. I commend and thank all of our local, state, and federal colleagues who took part in this New York Organized Crime Drug Enforcement Task Force investigation for their tireless efforts in building this strong, multinational conspiracy case.”

 As alleged in the charging documents, between December 2016 and October 2017, the defendants belonged to an international drug trafficking organization and conspired to coordinate the transportation of thousands of kilograms of cocaine from laboratories in the rural areas of Cauca and Nariño in southwestern Colombia to the Pacific Coast of Colombia and/or Ecuador.  The organization regularly operated in Ecuador, using land routes to transport cocaine from laboratories to the Pacific Coast of Ecuador.  To distribute these drugs internationally, the criminal enterprise shipped cocaine via sea vessels, including submarines, in the eastern Pacific Ocean and by land in Central America to Mexico, en route to the United States. 

Using intelligence from sources including lawfully intercepted calls and communications, this investigation revealed that these sophisticated criminal co-conspirators operated in multiple countries to coordinate the shipment of thousands of kilograms of cocaine ultimately destined for the United States.  As a result of the investigation, law enforcement successfully seized multiple-hundred-kilograms of cocaine traced to this criminal organization. 

If convicted, Estupiñan Alzate faces a mandatory term of 10 years in prison and up to life in prison. 

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

The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the New York Strike Force. The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; Suffolk County District Attorney’s Office  and New York State Department of Corrections and Community Supervision. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Margaret Schierberl and Chand Edwards-Balfour are in charge of the prosecution. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, Colombia provided valuable assistance in the investigation and with securing the arrest and extradition of Estupiñan Alzate.

The Defendant:

DIEGO FERNANDO CERON MUÑOZ (also known as “Galleta”)
Age: 36          
Colombia

JHON ARMANDO PANTA GUTIERREZ (also known as “Gafas”)
Age: 48
Ecuador

CARLOS ERNESTO ANGUCHO GUERRERO (also known as “Corleone” and “Flaco”)
Age: 40 
Colombia

EDUARD MAURICIO RENDON AGUDELO (also known as “Oz”)
Age: 41          
Colombia

CLEMENTE RIASCOS CORAL (also known as “Pastuso”)
Age: 55
Colombia

LUIS FERNANDO SÁNCHEZ ISAZA (also known as “Gym” and “Pechuga”)
Age: 55
Colombia

ALEJANDRO ALBERTO ESTUPINAN ALZATE (also known as “Porcelana” and “Armitage”)
Age: 43
Colombia

BELCY GOMEZ MURCIA (also known as “La Senora” and “Jesus”)
Age: 57
Colombia

CARLOS ADOLFO MEZA SANCHEZ (also known as “Lechuga” and “Charly”)
Age: Unknown
Ecuador

E.D.N.Y. Docket No. 19-367 (MKB)

Following six weeks of trial, a federal jury in Brooklyn today convicted Anthony Zottola, Sr. and Himen Ross of murder-for-hire conspiracy and murder-for-hire in the October 4, 2018 killing of 71-year-old Sylvester Zottola as he waited to pick up a cup of coffee at a McDonald’s drive-thru in the Bronx.  The jury also found the defendants guilty of causing Sylvester Zottola’s death through the use of a firearm and unlawful use and possession of firearms.  They face mandatory life terms when sentenced by United States District Judge Hector Gonzalez. A third defendant, Alfred Lopez, was acquitted on all counts.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict. 

“Over the course of more than a year, the elderly victim, Sylvester Zottola, was stalked, beaten, and stabbed, never knowing who orchestrated the attacks.  It was his own son, who was so determined to control the family’s lucrative real estate business that he hired a gang of hit men to murder his father,” stated United States Attorney Peace.  “For sentencing his father to a violent death, Anthony Zottola and his co-defendant will spend the rest of their lives in prison where they belong as a result of today’s verdict.  I thank our prosecutors, the FBI Special Agents and NYPD detectives for their tremendous investigative work solving this cold-blooded crime and bringing the defendants to justice.” 

“Proven by evidence and testimony during trial, Zottola had not one, not two, but multiple chances to rethink his deadly intent to murder his own father. He and the others he recruited chose to continue with their savage plot and succeeded. Now, instead of living off his father's millions, his only payday will be federal prison,” stated FBI Assistant Director-in-Charge Driscoll.

“Today’s convictions underscore the unwavering commitment of the NYPD, and its law enforcement partners, to deliver meaningful consequences for violent crimes – in this case against those who carried out a sustained plot to commit murder,” stated NYPD Commissioner Sewell.  “For their effort to build a strong prosecution, I want to thank and commend our NYPD investigators, the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and everyone who worked to see this case through to a successful outcome.”

Sylvester Zottola controlled a residential real estate portfolio consisting of multi-family rental properties that was valued at tens of millions of dollars at the time of his death. Defendant Anthony Zottola helped manage his father Sylvester Zottola’s real estate business by maintaining the properties, collecting rent, and helping to run A&S Maintenance, a company that was jointly owned by Anthony and his brother Salvatore Zottola.  Anthony Zottola plotted to kill his father and his brother so that he could take control of the family business.

As proven at trial, Anthony Zottola hired co-conspirator Bushawn Shelton to kill his father and his brother, Salvatore.  Shelton recruited others to commit the murders, and together they engaged in a year-long conspiracy to carry out a series of violent attacks against Sylvester and Salvatore Zottola.  Salvatore, who testified at trial, endured several violent attacks on his life.  On November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual.  On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck him on the head with a gun, stabbed him multiple times, and slashed his throat.  Zottola survived the attack.  Then on July 11, 2018, a gunman shot Salvatore Zottola in the head, chest, and hand in front of his residence.  Zottola survived the shooting.

A tracking device was placed on Sylvester Zottola’s car, allowing Ross to track him to the McDonald’s restaurant on Webster Avenue where Ross fatally shot the victim multiple times.  Ross and Shelton exchanged texts immediately after the hit, and then Shelton and Anthony Zottola exchanged texts, in which Anthony was informed that his father had just been murdered.   Shelton texted Anthony Zottola: “Can we party today or tomorrow?”  Anthony Zottola assured Shelton that he would have Shelton’s payment for carrying out the murder ready soon: “I have the cases of water in a day or so.”  A photograph later recovered from one of Shelton’s cellular telephones depicts a cardboard box of bottled water, as well as over $200,000 in banded currency.  Shelton pleaded guilty in August 2022 to murder-for-hire conspiracy and murder-for-hire.  He is awaiting sentencing.

The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Kayla Bensing, Emily J. Dean, Devon Lash, and Andrew Roddin are in charge of the prosecution, with the assistance of paralegal Brittany Wissel.

The Defendants:

HIMEN ROSS (also known as “Ace” and “A Boggie”)
Age:  36
Bronx, New York

ANTHONY ZOTTOLA, SR.
Age:  44
Larchmont, New York

Defendants Who Previously Pleaded Guilty:

HERMAN BLANCO (also known as “Taliban” and “L”)
Age:  37
Bronx, New York

ARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age:  34
New Hampton, New York

JASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age:  34
Brooklyn, New York

BUSHAWN SHELTON (also known as “Shelz”)
Age:  38
Brooklyn, New York

JULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age:  36  
Bronx, New York

E.D.N.Y. Docket No. 18-CR-609 (S-3)(HG)

Earlier today, in federal court in Central Islip, Roberto Villanueva was sentenced by United States District Judge Joanna Seybert to 72 months in prison for his role in the forced labor conspiracy that took place at the Thatched Cottage in Centerport, New York.  The defendant pleaded guilty to forced labor and forced labor conspiracy on February 5, 2020 and has been incarcerated since his arrest on December 10, 2017. 

Breon Peace, United States Attorney for the Eastern District of New York; Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI), New York; Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York (DOL-OIG); and Patricia A. Menges, Director, United States Citizenship and Immigration Services, New York Asylum Office (USCIS), announced the sentence.

“Villanueva exploited his victims’ immigration status, promising them the American dream, but instead threatening arrest or deportation if they didn’t work 16 hours a day, often unpaid, sleeping on bug infested mattresses covered in garbage bags, without heat or hot water,” stated United States Attorney Peace. “This sentence highlights our Office’s commitment to bringing abusers to justice.”

“Villanueva knowingly manipulated these workers using bait-and-switch tactics to coerce and control them, forcing them to live in squalid conditions with a constant threat of physical harm if they failed to comply with his ever-escalating demands.  Today’s sentencing sends a strong message that human lives are not commodities and these workers deserved dignity and respect.  HSI is committed to working together with our partners to fight human trafficking in all its forms, including labor trafficking and exploitation to prevent abuses like this,” said Acting Special Agent in-Charge Alfonso for Homeland Security Investigations in New York.

“Roberto Villanueva abused the H-2B visa program by forcing workers to work long hours in occupations not approved by the U.S. Department of Labor, often for far less than the prevailing wage. Workers that complained were met with threats of physical harm and deportation. The U.S. Department of Labor, Office of Inspector General will continue to work with our law enforcement partners to vigorously pursue those who misuse worker visa programs for their own personal gain,” stated Jonathan Mellone, Special Agent-in-Charge of the U.S. Department of Labor OIG New York Region.

Villanueva formerly worked as a recruiter and manager for the Thatched Cottage.  At his plea proceeding, Villanueva admitted that workers were brought from the Philippines to the United States on H-2B visas that expired shortly after their arrival.  Once their H-2B visas expired, Villanueva coached workers how to apply for student visas by fraudulently representing that they intended to attend school full-time and had sufficient resources to support themselves during school. 

Villanueva admitted that his actions were done in concert and agreement with Ralph Colamussi, the former owner of Thatched Cottage. Villanueva admitted that at times he deposited funds in the workers’ bank accounts to give the appearance of ample resources, and then withdrew the funds once the student visas were approved.  When workers objected to performing certain jobs, working consecutive shifts or not being paid promptly, Villanueva threatened to report them to the police or immigration authorities. 

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.

The Defendant:

ROBERTO VILLANUEVA
Age: 65
Huntington, New York

E.D.N.Y. Docket No. 17-CR-592 (JS)

A 12-count indictment was unsealed today in federal court in Brooklyn, New York charging five Russian nationals, Yury Orekhov, Artem Uss, Svetlana Kuzurgasheva, also known as “Lana Neumann,” Timofey Telegin and Sergey Tulyakov with various charges related to a global procurement, smuggling and money laundering network.  Also charged were Juan Fernando Serrano Ponce, also known as “Juanfe Serrano” and Juan Carlos Soto, who brokered illicit oil deals for Petroleos de Venezuela S.A. (PDVSA), the Venezuelan state-owned oil company, as part of the scheme.  On October 17, 2022, Orekhov was arrested in Germany and Uss was arrested in Italy, both at the request of the United States, and will undergo extradition proceedings.   

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office, and Andrew Adams, Director, Task Force KleptoCapture announced the charges.

“As alleged, the defendants were criminal enablers for oligarchs, orchestrating a complex scheme to unlawfully obtain U.S. military technology and Venezuelan sanctioned oil through a myriad of transactions involving shell companies and cryptocurrency.  Their efforts undermined security, economic stability and rule of law around the world,” stated United States Attorney Peace.  “We will continue to investigate, disrupt and prosecute those who fuel Russia’s brutal war in Ukraine, evade sanctions and perpetuate the shadowy economy of transnational money laundering.”

“Today we announce the dismantling of a sophisticated network consisting of at least five Russian nationals and two Venezuelan nationals, each of whom are directly linked to corrupt state-owned enterprises, who knowingly sought to conceal the theft of U.S. military technology and profit off black market oil,” said FBI Assistant Director-in-Charge Driscoll. “This network schemed to procure sophisticated technology in direct support of a floundering Russian Federation military industrial complex. While America's adversaries may seek innovative means to undermine the United States, they will continuously be met with the FBI's resolve through tirelessly uncovering and overcoming all threats to U.S. national security, no matter where they may seek safe haven.

“Complex criminal schemes like this require sustained coordination and collaboration between federal law enforcement and international partners. I’m proud of our team of dedicated law enforcement professionals for their teamwork and dedication to enforcing U.S. export controls,” stated U.S. Department of Commerce Special Agent-in-Charge Carson.  “We will continue to enforce the unprecedented export controls implemented in response to Russia’s illegal war against Ukraine and the Office of Export Enforcement intends to pursue these violators wherever they may be worldwide.”

“Webs of shell companies, cryptocurrency and an international network of fraudsters failed to shield Orekhov and his cronies from apprehension by U.S. law enforcement. Stamping out evasion of export controls on military technology is among the Task Force’s highest priorities, and today’s arrests reflects the power of those controls when enforced by a dedicated team of expert agents and devoted foreign partners,” stated Task Force KleptoCapture Director Adams. 

As alleged, Orekov has served as the part owner, Chief Executive Officer and Managing Director of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately held industrial equipment and commodity trading company located in Hamburg, Germany.  The other owner of NDA GmbH is Artem Uss, the son of the governor of Russia’s Krasnoyarsk Krai region.  Kuzurgasheva served as the Chief Executive Officer of one of the scheme’s shell companies and worked for NDA GmbH under Orekhov.  Using NDA GmbH as a front company, Orekhov and Kuzurgasheva sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites and other space-based military applications.  These items were shipped to Russian end users, including sanctioned companies controlled by Telegin and Tulyakov, such as Radioavtomatika, Radioexport and Abtronics, that serviced Russia’s defense sector.  Some of the same electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine. 

In 2019, Orekhov travelled to the United States to source parts used in the Russian-made Sukhoi fighter aircraft and the American-made F-22 Raptor stealth fighter aircraft.  Orekhov and Uss also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China.  Serrano Ponce and Soto brokered deals worth millions of dollars between PDVSA and NDA GmbH, which were routed through a complex group of shell companies and bank accounts to disguise the transactions.  In one communication with Serrano Ponce, Orekhov openly admitted that he was acting on behalf of a sanctioned Russian oligarch, saying “He [the oligarch] is under sanctions as well.  That’s why we [are] acting from this company [NDA GmbH].  As fronting.”  The scheme also involved falsified shipping documents and supertankers that deactivated their GPS navigation systems to obscure the Venezuelan origin of their oil. 

Payment for NDA GmbH’s illicit activities was often consummated in U.S. dollars routed through U.S. financial institutions and correspondent bank accounts.  To facilitate these transactions, Orekhov and his coconspirators used fictitious companies, falsified “Know Your Customer” documentation and bank accounts in high-risk jurisdictions, causing U.S. banks to process tens of millions of dollars in violation of U.S. sanctions and other criminal laws.  In one conversation with Soto, Orekhov bragged that “there were no worries...this is the shittiest bank in the Emirates…they pay to everything.”  The scheme also utilized bulk cash drops with couriers in Russia and Latin America, as well as cryptocurrency transfers worth millions of dollars, to effectuate these transactions and launder the proceeds.  

On March 30, 2022, Orekhov asked the defendant Uss, “Have you decided to leave Russia?”  Uss joked in response, “[Y]ou want to be an international fugitive?”

On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.

If convicted, the defendants face a maximum of 30 years’ imprisonment.  The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Artie McConnell is in charge of the prosecution, with valuable assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, and Litigation Analyst Ben Richmond. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters. The Justice Department’s Office of International Affairs is providing substantial assistance. The United States thanks German and Italian authorities for their valuable assistance.

The Defendants:

YURY OREKHOV
Age: 42
Dubai, United Arab Emirates

ARTEM USS
Age: 40
Moscow, Russia

SVETLANA KUZURGASHEVA
Age: 32
Moscow, Russia

JUAN FERNANDO SERRANO PONCE
AGE: 47
Dubai, United Arab Emirates

JUAN CARLOS SOTO

TIMOFEY TELEGIN
Age: 39
Moscow, Russia

SERGEY TULYAKOV
Age: 52
Moscow, Russia

E.D.N.Y. Docket No. 22-CR-434 (EK)

بروكلين، نيويورك - في وقت سابق اليوم، في محكمة اتحادية في بروكلين، نيويورك، أقرت شركة لافارج اس آ (Lafarge S.A.- Lafarge)، وهي شركة عالمية لتصنيع مواد البناء مقرها في فرنسا، وشركة لافارج سوريا للإسمنت اس آ (Lafarge Cement Syria, S.A.- LCS)، وهي شركة تابعة لشركة لافارج مقرها في سوريا، أقرت بالذنب أمام هيئة قضائية وجهت لهما تهمة واحدة  تتمثل في التآمر لتقديم الدعم المادي والموارد إلى تنظيم الدولة الإسلامية في العراق والشام (داعش) وجبهة النصرة (ANF)، وكلاهما من المنظمات الإرهابية الأجنبية التي حددتها الولايات المتحدة. وفور إقرار المتهمين بالذنب هذا الصباح، حكم قاضي المقاطعة الأمريكية ويليام ف. كونتز الثاني William) (F. Kuntz, II على المتهمين بشروط المراقبة ودفع غرامات مالية، بما في ذلك غرامات جنائية قدرها 90.78 مليون دولار ومصادرة مبلغ قدره 687 مليون دولار، بإجمالي 777.78 مليون دولار.  

نشأت التهم عن مخطط المتهمين لدفع مبالغ مالية لداعش وجبهة النصرة مقابل الإذن بتشغيل مصنع إسمنت في سوريا من آب/أغسطس 2013 إلى تشرين الأول/أكتوبر 2014، ممّا مكن شركة لافارج سوريا للإسمنت من الحصول على ما يقرب من 70.30 مليون دولار من العائدات. 

وقد أعلن هذا الإقرار بالذنب كل من بريون بيس (Breon Peace)، المدعي العام للولايات المتحدة بالمنطقة الشرقية من نيويورك؛ وليزا أو موناكو (Lisa O. Monaco)، نائبة وزير العدل للولايات المتحدة؛ وماثيو جي. أولسن (Matthew G. Olsen)، مساعد وزير العدل بقسم الأمن القومي بوزارة العدل؛ ومايكل دريسكول (Michael J. Driscoll)، مساعد المدير المسؤول، بمكتب التحقيقات الفيدرالي، مكتب نيويورك الميداني ,ومايكل ألفونسو (Michael Alfonso)، الوكيل الخاص المسؤول بالنيابة، من تحقيقات الأمن الداخلي بنيويورك؛ وكيشانت ل. سيوال (Keechant L. Sewell)، مفوض إدارة شرطة مدينة نيويورك(NYPD) .

صرح المدعي العام للولايات المتحدة السيد بيس قائلاً: "في خضم حرب أهلية، اتخذت شركة لافارج خيارًا لا يمكن تصوره بوضع أموال في أيدي داعش، إحدى أكثر المنظمات الإرهابية وحشية في العالم، حتى تتمكن من مواصلة بيع الإسمنت"، مضيفاً "لم تقم شركة لافارج بهذا الفعل فقط مقابل الحصول على إذن لتشغيل مصنع الإسمنت الخاص بها - وهو عمل سيء بما فيه الكفاية - ولكن أيضًا للاستفادة من علاقتها مع داعش وتحقيق مكاسب اقتصادية، والسعي للحصول على مساعدة داعش لإلحاق الضرر بمنافسي شركة لافارج مقابل خفض مبيعات شركة لافارج. اليوم تعترف شركة لافارج وتتحمل مسؤوليتها عن جريمتها الشنيعة، فلم يسبق قطّ أن اتُّهمت شركة بتقديم الدعم المادي والموارد لمنظمات إرهابية أجنبية، حيث تعكس هذه التهمة والقرار غير المسبوقين الجرائم المذهلة المرتكبة ويبرهنان على أن الشركات التي تتخذ إجراءات تتعارض مع مصالح أمننا القومي في انتهاك للقانون ستخضع للمساءلة". 

"وكما يتضح من الإقرار بالذنب اليوم، كانت شركة لافارج مدفوعة بالجشع والمصلحة الذاتية عندما غضت الطرف عن الفظائع التي يرتكبها الإرهاب وتواطأت عن علم لتمويل منظمات إرهابية. ولا تختلف الشركات عن الأفراد - فإذا قمت بتمويل الإرهاب، فسوف تواجه العواقب. وصرح مساعد المدير المسؤول بمكتب التحقيقات الفيدرالي السيد دريسكول قائلاً: "يجب أن تكون النتيجة التي توصلنا إليها اليوم درساً للآخرين، فإذا كان أحدهم على استعداد لتمويل الأشرار، سواء أكان فردًا أو كيانًا أكبر، فإن فرقة العمل المشتركة لمكافحة الإرهاب التابعة لمكتب التحقيقات الفيدرالي وشركاءنا في إنفاذ القانون سيلتزمون بدون هوادة بحماية أمتنا وتقديم المذنبين أمام العدالة".

وقال ألفونسو(Alfonso)، الوكيل الخاص المسؤول بالنيابة، من تحقيقات الأمن الداخلي بنيويورك(HSI)  "إن تحقيقات الأمن الداخلي تفتخر بالوقوف إلى جانب شركائنا في فرقة العمل المشتركة لمكافحة الإرهاب في هذه القضية الرائدة حيث نحاسب الشركات الخاصة على تواطؤها في أعمال القتل والدمار التي تسبب فيها داعش وجبهة النصرة؛ الحرب تغذيها الأموال، وقد دفعت شركة لافارج للإرهابيين الأموال، لتصب البنزين على النار، ولحماية أرباحها الخاصة." وأضاف قائلاً "إن العمل المتعمد مع منظمة إرهابية أجنبية مسؤولة عن مقتل عدد لا يحصى من الجنود الأمريكيين من أجل تحقيق مكاسب مالية يعدّ عملاً حقيراً يستحق أقسى العقوبات بموجب القانون. وهذا الإقرار بالذنب الذي صدر اليوم يعدّ تاريخياً إذ يوجه رسالة واضحة إلى الشركات في جميع أنحاء العالم بأننا لن نسمح لها بالسعي لتحقيق الأرباح عن طريق استغلال الأعمال الشريرة التي يرتكبها داعش. لن نترككم تشوهون ذكرى أولئك الذين قتلوا على يد هذه المجموعة الوحشية".

وقال سيوال، مفوض إدارة شرطة نيويورك، "إن الإقرار بالذنب الذي أُعلن اليوم لأمر تاريخيّ حيث يظهر أهمية عملنا المستمر لتعطيل هذا النوع من الإرهاب العابر للحدود والذي يشكل تهديدات كبيرة في الداخل وحول العالم". "مرة أخرى، تمت مواءمة علاقاتنا القوية مع إنفاذ القانون في هذا التحقيق للوصول إلى أقصى حد ممكن لضمان العدالة وحمايتنا من الأذى، أنا فخور للغاية اليوم بالعمل الذي قام به المحققون في شرطة نيويورك، والمدعي العام للولايات المتحدة بالمنطقة الشرقية وفرقة العمل المشتركة لمكافحة الإرهاب التابعة لمكتب التحقيقات الفيدرالي في نيويورك، وتحقيقات الأمن الداخلي، وكل شخص في الداخل والخارج ساهم في متابعة هذه القضية المهمة.

المتهمون تفاوضوا مع الجماعات المسلحة ودفعوا أموالاً للإرهابيين

في الفترة من أيار/مايو 2010 إلى أيلول/سبتمبر 2014، قامت شركة لافارج، من خلال شركة لافارج سوريا للإسمنت، بتشغيل مصنع إسمنت في منطقة الجلابية في شمال سوريا ("مصنع إسمنت الجلابية") الذي بنته شركة لافارج بتكلفة تقارب 680 مليون دولار. وبعد اندلاع الحرب الأهلية السورية في عام 2011، تفاوضت شركة لافارج وشركة لافارج سوريا للإسمنت على اتفاقيات لدفع أموال للفصائل المسلحة في الحرب الأهلية لحماية عمّال شركة لافارج سوريا للإسمنت، وضمان استمرار تشغيل معمل إسمنت الجلابية والحصول على ميزة اقتصادية تتفوق بها على منافسيها في سوق الإسمنت السورية. 

وكما أوضح مدراء شركة لافارج في رسائل بريد إلكتروني أرسلت في تلك الفترة، كانت دوافعهم اقتصادية بحتة. اشترى مدراء شركة لافارج سوريا للإسمنت المواد الخام اللازمة لتصنيع الإسمنت من موردين خاضعين لسيطرة داعش، ودفعوا "تبرعات" شهرية للجماعات المسلحة، بما في ذلك داعش وجبهة النصرة، حتى يتمكن العمال والعملاء والموردون من عبور نقاط التفتيش التي تسيطر عليها الجماعات المسلحة على الطرق المحيطة بمصنع إسمنت الجلابية، ووافقوا في النهاية على دفع أموال لداعش بناءً على حجم الإسمنت الذي تبيعه شركة لافارج سوريا للإسمنت لعملائها، والذي شبّهه مدراء شركة لافارج وشركة لافارج سوريا للإسمنت بدفع "الضرائب".

المدعى عليهم تفاوضوا على اتفاقيات تقاسم العائدات مع داعش وسعوا لتحقيق ميزة اقتصادية

قام مدراء شركة لافارج وشركة لافارج سوريا للإسمنت عن قصد بصياغة اتفاقياتهم مع داعش لتعويض المنظمة الإرهابية بناءً على كمية الإسمنت التي تتمكن شركة لافارج سوريا للإسمنت من بيعها – مما يُعدّ بالفعل اتفاقية لتقاسم الإيرادات - لتحفيز المجموعة الإرهابية على التصرف بما يخدم المصلحة الاقتصادية لشركة لافارج سوريا للإسمنت. 

وكشرط لإبرام اتفاقية تقاسم الإيرادات، التمس مدراء شركة لافارج وشركة لافارج سوريا للإسمنت مساعدة داعش لفرض تكاليف على المنافسين الذين يبيعون الإسمنت التركي الذي يتم استيراده إلى شمال سوريا، والذي كان يباع غالبًا بسعر أرخص من الإسمنت المنتج في مصنع الجلابية للإسمنت، وأوضح مدراء شركة لافارج سوريا للإسمنت للوسطاء الذين يتفاوضون مع داعش أنه في مقابل دفع شركة لافارج سوريا للإسمنت مبلغ 750 ليرة سورية لكل طن من الإسمنت الذي تبيعه، فإنهم يتوقعون أن يتخذ داعش إجراءات ضد منافسي شركة لافارج سوريا للإسمنت، إما عن طريق وقف بيع الإسمنت التركي المستورد المنافس في المناطق الخاضعة لسيطرة داعش، أو بفرض ضرائب على الإسمنت المنافس مما يسمح لشركة لافارج سوريا للإسمنت برفع أسعارها للإسمنت.

ومن آب/أغسطس 2013 إلى تشرين الأول/أكتوبر 2014، دفعت شركة لافارج وشركة لافارج سوريا للإسمنت إلى داعش وجبهة النصرة، من خلال وسطاء، ما يعادل حوالي 5.92 مليون دولار، وهي مدفوعات في شكل "تبرعات" شهرية ثابتة إلى داعش وجبهة النصرة، ومدفوعات للموردين الخاضعين لسيطرة داعش لشراء المواد الخام ومدفوعات مختلفة على أساس كمية الإسمنت التي تبيعها شركة لافارج سوريا للإسمنت؛ ودفعت شركة لافارج وشركة لافارج سوريا للإسمنت أيضًا ما يعادل 1.11 مليون دولار تقريبًا إلى أطراف ثالثة وسيطة للتفاوض مع داعش وجبهة النصرة ودفع مبالغ مالية لهما نيابةً عن شركة لافارج وشركة لافارج سوريا للإسمنت. بالإضافة إلى ذلك، عندما أخلَت شركة لافارج سوريا للإسمنت في نهاية المطاف معمل إسمنت الجلابية في أيلول/سبتمبر 2014، استحوذت داعش على الإسمنت الذي أنتجته شركة لافارج سوريا للإسمنت لتستمر في المؤامرة، وباعت داعش الإسمنت بأسعار كانت ستدر لداعش ما يقرب من 3.21 مليون دولار. ونتيجة لهذا المخطط، حصلت شركة لافارج سوريا للإسمنت على ما يقرب 70.30 مليون دولار كإجمالي إيرادات المبيعات من آب/أغسطس 2013 حتى 2014. وبلغت المكاسب التي حققها جميع المشاركين في المؤامرة، بما فيهم شركة لافارج سوريا للإسمنت والوسطاء والجماعات الإرهابية، حوالي 80.54 مليون دولار.

المدعى عليهم أخفوا مدفوعاتهم وزوّروا السجلات وغيّروا تواريخ العقود

كما أخفى مدراء شركة لافارج وشركة لافارج سوريا للإسمنت بنشاط مخططهم لتقديم الدعم المادي لداعش وجبهة النصرة. على سبيل المثال:

• طلب مدراء شركة لافارج وشركة لافارج سوريا للإسمنت من الوسطاء إنشاء كيانات تجارية بأسماء غير مرتبطة بشكل واضح بالوسطاء وقاموا بإنشاء فواتير بأوصاف مزيفة للخدمات المقدمة للوسيط لتقديمها إلى شركة لافارج سوريا للإسمنت؛
• قام مدراء شركة لافارج سوريا للإسمنت بصياغة مدفوعات تقاسم الإيرادات التي يقدمونها لداعش بحيث يدفع عملاء شركة لافارج سوريا للإسمنت إلى داعش، في حين أن شركة لافارج سوريا للإسمنت تعوض العملاء عن طريق خصم الأسعار التي تفرضها عليهم. وللتأكد من أن عملاء شركة لافارج سوريا للإسمنت لا يدفعون لداعش أقل من اللازم، وافقت شركة لافارج سوريا للإسمنت على تقديم تقارير مبيعات دورية لداعش، والتي يمكن لداعش استخدامها للتحقق من أن عملاء شركة لافارج سوريا للإسمنت يدفعون المبالغ المستحقة بموجب شروط اتفاقية شركة لافارج سوريا للإسمنت مع داعش؛
• لإخفاء هذه الترتيبات بشكل أكبر، حاول مدراء شركة لافارج وشركة لافارج سوريا للإسمنت مطالبة داعش بعدم إدراج اسم "لافارج" في الوثائق التي تكرّس الاتفاقيات الخاصة بهم وتنفيذها؛
• استخدم العديد من مدراء شركة لافارج وشركة لافارج سوريا للإسمنت المشاركين في المخطط عناوينهم للبريد الإلكتروني الشخصية بدلاً من عناوين البريد الإلكتروني للشركة، لتنفيذ المؤامرة؛
• في أكتوبر 2014، طلب مدراء شركة لافارج وشركة لافارج سوريا للإسمنت من الوسيط توقيع اتفاقية تُنهي اتفاقيته لتقديم الخدمات إلى لافارج سوريا للإسمنت كشرط لدفع المال لوسيط للتفاوض مع داعش والجماعات المسلحة الأخرى. وبشكل حاسم، قام مدراء شركة لافارج وشركة لافارج سوريا للإسمنت بتغيير تاريخ اتفاقية الإنهاء إلى 18 آب/أغسطس 2014، وهو تاريخ بعد فترة وجيزة من إصدار مجلس الأمن التابع للأمم المتحدة قرارًا يدعو الدول الأعضاء إلى حظر التعامل مع داعش وجبهة النصرة، للإيحاء زورًا بأن الوسيط لم يكن يتفاوض مع داعش نيابة عن شركة لافارج سوريا للإسمنت بعد قرار الأمم المتحدة.

وتم الاستحواذ على شركة لافارج من قبل منافس ("الشركة الوريثة") في صفقة أغلقت في 10 تموز/يوليو 2015. ولم يكشف مدراء لافارج للشركة الوريثة عن مدفوعات شركة لافارج سوريا للإسمنت إلى داعش وجبهة النصرة خلال اجتماعات العناية الواجبة قبل الاستحواذ، كما لم تقم الشركة الوريثة بإجراء العناية الواجبة قبل أو بعد الاستحواذ للتحقق من عمليات شركة لافارج سوريا للإسمنت في سوريا، والتي كانت قد انتهت بحلول وقت إغلاق الصفقة. وبالإضافة إلى ذلك، لم تُبلغ شركة لافارج وشركة لافارج سوريا للإسمنت ولا الشركة الوريثة عن تلك السلوكيات أو تتعاون بشكل كامل في التحقيق الذي أجراه هذا المكتب.

قام بإجراء التحقيق فريق العمل المشترك لمكافحة الإرهاب التابع لمكتب التحقيقات الفيدرالي بنيويورك. ويقوم قسم الأمن القومي والجرائم الإلكترونية بالمكتب بإدارة قضية الحكومة. وقام بقيادة التحقيق والمقاضاة كل من المدعين العامين المساعدين للولايات المتحدة: ألون ليفشيتز (Allon Lifshitz)، وألكسندر أ. سولومون (Alexander A. Solomon)، وإيان سي ريتشاردسون (Ian C. Richardson)، وجوشوا هافيتز (Joshua Hafetz)، بمساعدة المدعين العامين المساعدين للولايات المتحدة: أرتيميس ليكاكيس (Artemis Lekakis)، و ج. ماثيو هاجانز J. (Matthew Haggans)، ولوران أ. بومان (Lauren A. Bowman)، ومحاميا الادعاء: بريجت بهلنغ Bridget) (Behling، وجنفير ليفي (Jennifer Levy)، من قسم مكافحة الإرهاب في شعبة الأمن الوطني. 

وقدم مكتب الشؤون الدولية التابع لوزارة العدل مساعدة بالغة الأهمية في هذه القضية. كما تعرب الوزارة عن تقديرها للتعاون الكبير والمساعدة المعتبرة التي قدمتها السلطات الفرنسية والمغربية واللبنانية.

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, New York, Lafarge S.A. (Lafarge), a global building materials manufacturer headquartered in France, and Lafarge Cement Syria, S.A. (LCS), a Lafarge subsidiary headquartered in Syria, pleaded guilty to a one-count criminal information charging them with conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF), both U.S.-designated foreign terrorist organizations.  Immediately following the defendants’ guilty pleas this morning, United States District Judge William F. Kuntz II sentenced the defendants to terms of probation and to pay financial penalties, including criminal fines of $90.78 million and forfeiture of $687 million, totaling $777.78 million.   

The charges arose out of the defendants’ scheme to pay ISIS and ANF in exchange for permission to operate a cement plant in Syria from August 2013 to October 2014, which enabled LCS to obtain approximately $70.30 million in revenue. 

Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, the Deputy Attorney General of the United States; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas and sentences.

“In the midst of a civil war, Lafarge made the unthinkable choice to put money into the hands of ISIS, one of the world’s most barbaric terrorist organizations, so that it could continue selling cement,” said United States Attorney Peace.  “Lafarge did this not merely in exchange for permission to operate its cement plant – which would have been bad enough – but also to leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of Lafarge’s sales.  Today, Lafarge has admitted and taken responsibility for its staggering crime.  Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations.  This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take actions in contravention of our national security interests in violation of the law will be held to account.”

“The terrorism crimes to which Lafarge and its subsidiary have pleaded guilty are a vivid reminder of how corporate crime can intersect with national security,” said Deputy Attorney General Monaco.  “The defendants partnered with ISIS, one of the most brutal terrorist organizations the world has ever known, to enhance profits and increase market share—all while ISIS engaged in a notorious campaign of violence during the Syrian civil war.  This case sends the clear message to all companies, but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions.”

“The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations—ISIS and al-Nusrah Front in Syria—at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” said Assistant Attorney General Olsen.  “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations.”

“As today’s guilty plea demonstrates, Lafarge was motivated by greed and self-interest when it turned a blind eye to the horrors of terrorism and knowingly conspired to fund terrorist organizations.  Corporations are no different from individuals - if you fund terrorism, you will face the consequences.   Today's result should serve as an example to others; if you are willing to fund evil, regardless of whether you are an individual or a larger entity, the FBI’s Joint Terrorism Task Force and our law enforcement partners will continue to be unrelenting in our commitment to protect our nation and bring you to justice," said FBI Assistant Director-in-Charge Driscoll.

“Homeland Security Investigations (HSI) is proud to stand beside our partners in the Joint Terrorism Task Force in this groundbreaking case as we hold private companies to account for their complicity in the death and destruction caused by ISIS and ANF.  War runs on money, and Lafarge paid terrorists, adding fuel to the fire, to protect their own profits,” said HSI Acting Special Agent-in-Charge Alfonso.  “Knowingly working with a foreign terrorist organization that is responsible for the deaths of countless American soldiers for monetary gain is a despicable act that deserves the highest penalties under the law.  Today’s historic guilty plea sends a strong message to companies all over the world that we will not let you profit on the evil done by ISIS.  We will not let you dishonor the memory of those killed by this barbaric group.”

“Today’s landmark guilty pleas demonstrate the importance of our ongoing work to disrupt the kind of transnational terrorism that poses significant threats at home and around the world,” said NYPD Commissioner Sewell.  “Once again, our strong law enforcement relationships were aligned in this investigation to reach as far as was necessary to ensure justice and keep us from harm. I am immensely proud, today, of our NYPD investigators, the U.S. Attorney for the Eastern District, the FBI’s New York Joint Terrorism Task Force, Homeland Security Investigations, and everyone here and abroad who pulled together over time to pursue this important case."

The Defendants Negotiated with Armed Groups and Paid Terrorists

From approximately May 2010 to September 2014, Lafarge, through LCS, operated a cement plant in the Jalabiyeh region of Northern Syria (the “Jalabiyeh Cement Plant”) that Lafarge had constructed at a cost of approximately $680 million.  After the start of the Syrian Civil War in 2011, Lafarge and LCS negotiated agreements to pay armed factions in the Civil War to protect LCS employees, to ensure continued operation of the Jalabiyeh Cement Plant, and to obtain economic advantage over their competitors in the Syrian cement market. 

As Lafarge executives made clear in contemporaneous emails, their motives were primarily economic.  LCS executives purchased raw materials needed to manufacture cement from ISIS-controlled suppliers; paid monthly “donations” to armed groups, including ISIS and ANF, so that employees, customers and suppliers could traverse checkpoints controlled by the armed groups on roads around the Jalabiyeh Cement Plant; and eventually agreed to make payments to ISIS based on the volume of cement that LCS sold to its customers, which Lafarge and LCS executives likened to paying “taxes.”

The Defendants Negotiated Revenue-Sharing Agreements with ISIS and Sought Economic Advantage

Lafarge and LCS executives intentionally structured their agreements with ISIS to compensate the terrorist organization based on the amount of cement that LCS was able to sell – effectively, a revenue-sharing agreement – to incentivize the terrorist group to act in LCS’s economic interest.  A senior Lafarge executive, who supervised LCS’s executives and reported directly to Lafarge’s Chief Executive Officer, articulated this purpose in instructions he sent to LCS executives about the negotiations with ISIS in July 2014: “We have to maintain the principle that we are ready to share the ‘cake,’ if there is a ‘cake.’  To me, the ‘cake’ is anything that is a ‘profit’, after the amortization and before financial expenses.”

As a condition of entering into this revenue-sharing agreement, Lafarge and LCS executives sought ISIS’s assistance to impose costs on competitors selling Turkish cement imported into northern Syria, which was often sold more cheaply than cement produced at the Jalabiyeh Cement Plant.  LCS executives made clear to the intermediaries negotiating with ISIS that, in exchange for LCS paying ISIS 750 Syrian Pounds per each ton of cement that it sold, they expected ISIS to take action against LCS’s competitors, either by stopping the sale of competing imported Turkish cement in the areas under ISIS’s control, or by imposing taxes on competing cement that would allow LCS to raise the prices at which it sold cement.

From August 2013 through October 2014, Lafarge and LCS paid ISIS and ANF, through intermediaries, the equivalent of approximately $5.92 million, consisting of fixed monthly “donation” payments to ISIS and ANF, payments to ISIS-controlled suppliers to purchase raw materials and variable payments based on the amount of cement LCS sold.  Lafarge and LCS also paid the equivalent of approximately $1.11 million to the third-party intermediaries for negotiating with and making payments to ISIS and ANF on Lafarge’s and LCS’s behalf.  In addition, when LCS eventually evacuated the Jalabiyeh Cement Plant in September 2014, ISIS took possession of cement that LCS had produced in furtherance of the conspiracy, and ISIS sold the cement at prices that would have yielded ISIS approximately $3.21 million.  As a result of the scheme, LCS obtained approximately $70.30 million in total sales revenue from August 2013 through 2014.  The gains to all participants in the conspiracy, including LCS, the intermediaries and the terrorist groups, totaled approximately $80.54 million.

The Defendants Concealed Their Payments, Falsified Records and Backdated Contracts

Lafarge and LCS executives also actively concealed their scheme to provide material support to ISIS and ANF.  For example:

• Lafarge and LCS executives required intermediaries to create business entities with names not obviously linked to the intermediaries and created invoices with false descriptions of services rendered for an intermediary to submit to LCS.
• LCS executives structured the revenue-sharing payments to ISIS so that LCS’s customers would pay ISIS, while LCS reimbursed the customers by discounting the prices it charged them.  To ensure that LCS’s customers did not underpay ISIS, LCS agreed to provide ISIS with periodic sales reports, which ISIS could use to verify that LCS’s customers were paying the amounts owed under the terms of LCS’s agreement with ISIS.
• To further conceal the arrangements, Lafarge and LCS executives attempted to require ISIS not to include the name “Lafarge” on the documents memorializing and implementing their agreements.
• Many of the Lafarge and LCS executives involved in the scheme used personal email addresses, rather than their corporate email addresses, to carry out the conspiracy.
• In October 2014, as a condition of paying an intermediary for having negotiated with ISIS and other armed groups, Lafarge and LCS executives required the intermediary to sign an agreement terminating his agreement to provide services to LCS.  Critically, the Lafarge and LCS executives backdated the termination agreement to August 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with ISIS and ANF, to falsely suggest that the intermediary was not negotiating with ISIS on behalf of LCS after the U.N. resolution.

Lafarge was eventually acquired by a competitor (the “Successor Company”) in a transaction that closed on July 10, 2015.  Lafarge executives did not disclose LCS’s payments to ISIS and ANF to the Successor Company during pre-acquisition diligence meetings, and the Successor Company conducted neither pre- nor post-acquisition due diligence of LCS’s operations in Syria, which had terminated by the time the transaction closed.  Lafarge, LCS, and the Successor Company also did not self-report the conduct or fully cooperate in this Office’s investigation.

The investigation was conducted by the FBI’s New York Joint Terrorism Task Force.  The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson, and Joshua Hafetz led the investigation and prosecution, with assistance provided by Assistant United States Attorneys Artemis Lekakis, J. Matthew Haggans, and Lauren A. Bowman, and Trial Attorneys Bridget Behling and Jennifer Levy of the National Security Division’s Counterterrorism Section. 

The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the French, Moroccan, and Lebanese authorities.

The Defendants:

Lafarge S.A.
Paris, France

Lafarge Cement Syria S.A.
Damascus, Syria

E.D.N.Y. Docket No. 22-CR-444 (WFK)

A global building materials manufacturer and its subsidiary pleaded guilty today to a one-count criminal information charging them with conspiring to provide material support and resources in Northern Syria from 2013 to 2014 to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF), both U.S.-designated foreign terrorist organizations. Immediately following the defendants’ guilty pleas this morning, U.S. District Judge William F. Kuntz II sentenced the defendants to terms of probation and to pay financial penalties, including criminal fines and forfeiture, totaling $777.78 million.

According to court documents, Lafarge S.A., headquartered in Paris, France, and Lafarge Cement Syria (LCS) S.A., headquartered in Damascus, Syria, schemed to pay ISIS and ANF in exchange for permission to operate a cement plant in Syria from 2013 to 2014, which enabled LCS to obtain approximately $70.3 million in revenue. 

“The terrorism crimes to which Lafarge and its subsidiary have pleaded guilty are a vivid reminder of how corporate crime can intersect with national security,” said Deputy Attorney General Lisa O. Monaco. “The defendants partnered with ISIS, one of the most brutal terrorist organizations the world has ever known, to enhance profits and increase market share — all while ISIS engaged in a notorious campaign of violence during the Syrian civil war. This case sends the clear message to all companies, but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions.”

“The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations – ISIS and al-Nusrah Front in Syria – at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations.”

From approximately May 2010 to September 2014, Lafarge, through LCS, operated a cement plant in the Jalabiyeh region of Northern Syria (the Jalabiyeh Cement Plant) that Lafarge had constructed at a cost of approximately $680 million. After the start of the Syrian Civil War in 2011, Lafarge and LCS negotiated agreements to pay armed factions in the Civil War to protect LCS employees, to ensure continued operation of the Jalabiyeh Cement Plant, and to obtain economic advantage over their competitors in the Syrian cement market. 

As Lafarge executives made clear in contemporaneous emails, their motives were primarily economic. LCS executives purchased raw materials needed to manufacture cement from ISIS-controlled suppliers; paid monthly “donations” to armed groups, including ISIS and ANF, so that employees, customers and suppliers could traverse checkpoints controlled by the armed groups on roads around the Jalabiyeh Cement Plant; and eventually agreed to make payments to ISIS based on the volume of cement that LCS sold to its customers, which Lafarge and LCS executives likened to paying “taxes.”

Lafarge and LCS executives intentionally structured their agreements with ISIS to compensate the terrorist organization based on the amount of cement that LCS was able to sell – effectively, a revenue-sharing agreement – to incentivize the terrorist group to act in LCS’s economic interest. 

As a condition of entering into this revenue-sharing agreement, Lafarge and LCS executives sought ISIS’s assistance to impose costs on competitors selling Turkish cement imported into northern Syria, which was often sold more cheaply than cement produced at the Jalabiyeh Cement Plant. LCS executives made clear to the intermediaries negotiating with ISIS that, in exchange for LCS paying ISIS 750 Syrian Pounds per each ton of cement that it sold, they expected ISIS to take action against its competitors, either by stopping the sale of competing imported Turkish cement in the areas under ISIS’s control, or by imposing taxes on competing cement that would allow LCS to raise the prices at which it sold cement.

“In the midst of a civil war, Lafarge made the unthinkable choice to put money into the hands of ISIS, one of the world’s most barbaric terrorist organizations, so that it could continue selling cement,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Lafarge did this not merely in exchange for permission to operate its cement plant – which would have been bad enough – but also to leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of Lafarge’s sales. Today, Lafarge has admitted and taken responsibility for its staggering crime. Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations. This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take actions in contravention of our national security interests in violation of the law will be held to account.”

“This guilty plea is a result of extraordinary collaboration among the FBI, the Department of Justice, and our international partners,” said FBI Deputy Director Paul Abbate. “The result demonstrates to anyone who would seek to contribute to ISIS’s terrorist activities, that the FBI will relentlessly pursue, and hold them accountable, regardless of where, or how, they attempt to hide.”

From August 2013 through October 2014, Lafarge and LCS paid ISIS and ANF, through intermediaries, the equivalent of approximately $5.92 million, consisting of fixed monthly “donation” payments to ISIS and ANF, payments to ISIS-controlled suppliers to purchase raw materials, and variable payments based on the amount of cement LCS sold. Lafarge and LCS also paid the equivalent of approximately $1.11 million to the third-party intermediaries for negotiating with and making payments to ISIS and ANF on Lafarge’s and LCS’s behalf. In addition, when LCS eventually evacuated the Jalabiyeh Cement Plant in September 2014, ISIS took possession of cement that LCS had produced in furtherance of the conspiracy, and ISIS sold the cement at prices that would have yielded ISIS approximately $3.21 million. As a result of the scheme, LCS obtained approximately $70.30 million in total sales revenue from August 2013 through 2014. The gains to all participants in the conspiracy, including LCS, the intermediaries and the terrorist groups, totaled approximately $80.54 million.

Lafarge and LCS executives actively concealed their scheme to provide material support to ISIS and ANF. For example:

• Lafarge and LCS executives required intermediaries to create business entities with names not obviously linked to the intermediaries and created invoices with false descriptions of services rendered for an intermediary to submit to LCS.
• LCS executives structured the revenue-sharing payments to ISIS so that LCS’s customers would pay ISIS the amounts owed under LCS’s agreement with ISIS, while LCS discounted the prices it charged to the customers to reimburse them. To ensure that LCS’s customers did not underpay ISIS, LCS agreed to provide ISIS with periodic sales reports, which ISIS could use to verify that LCS’s customers were paying the amounts owed under the terms of LCS’s agreement with ISIS.
• To further conceal the arrangements, Lafarge and LCS executives attempted to require ISIS not to include the name “Lafarge” on the documents memorializing and implementing their agreements.
• Many of the Lafarge and LCS executives involved in the scheme used personal email addresses, rather than their corporate email addresses, to carry out of the conspiracy.
• In October 2014, as a condition of paying an intermediary for having negotiated with ISIS and other armed groups, Lafarge and LCS executives required the intermediary to sign an agreement terminating his agreement to provide services to LCS. Critically, the Lafarge and LCS executives backdated the termination agreement to Aug. 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with ISIS and ANF, to falsely suggest that he had not been negotiating with ISIS on behalf of LCS after the U.N. resolution.

Lafarge was eventually acquired by a competitor (the Successor Company) in a transaction that closed on July 10, 2015. Lafarge executives did not disclose LCS’s payments to ISIS and ANF to the Successor Company during pre-acquisition diligence meetings, and the Successor Company conducted neither pre- nor post-acquisition due diligence of LCS’s operations in Syria, which had terminated by the time the transaction closed. Lafarge, LCS and the Successor Company also did not self-report the conduct or fully cooperate in the investigation.

Lafarge and its subsidiary pleaded guilty to conspiring to provide material support to designated foreign terrorist organizations and admitted to negotiating with and paying armed groups and terrorists, negotiating revenue-sharing agreements with ISIS to seek economic advantage, and concealing their payments, falsified records, and backdated contracts.

The FBI’s New York Joint Terrorism Task Force is investigating the case. The Justice Department’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the French, Moroccan and Lebanese authorities.

Assistant U.S. Attorneys Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson, and Joshua Hafetz for the U.S. Attorney’s Office’s National Security and Cybercrime Section are prosecuting the case, with valuable assistance provided by Assistant U.S. Attorneys Artemis Lekakis, J. Matthew Haggans, and Lauren A. Bowman and Trial Attorneys Bridget Behling and Jennifer Levy of the National Security Division’s Counterterrorism Section.

BROOKLYN, NY – Plus tôt aujourd’hui, dans la cour fédérale de Brooklyn, New York, Lafarge S.A. (Lafarge), un fabricant mondial de matériaux de construction dont le siège est situé en France, et Lafarge Cement Syria, S.A. (LCS), une filiale de Lafarge dont le siège est situé en Syrie, ont plaidé coupables concernant l’unique chef d’informations criminelles les accusant d’avoir conspiré pour fournir une aide et des ressources importantes à l’État islamique d’Irak et du Shâm (ISIS) et au Front al-Nosra (ANF), tous deux désignés comme des organisations terroristes étrangères par les États-Unis.  Immédiatement après les plaidoyers de culpabilité des défendeurs ce matin, le Juge de District des États-Unis William F. Kuntz, II a condamné les défendeurs à une probation et à payer les sanctions financières, comprenant des amendes criminelles à hauteur de 90,78 millions de dollars et une confiscation de 687 millions de dollars, totalisant 777,78 millions de dollars.

Les accusations ont fait suite au plan des défendeurs de payer l’ISIS et l’ANF en échange de la permission d’exploiter une usine de ciment en Syrie d’août 2013 à octobre 2014, ayant permis à LCS d’obtenir environ 70,30 millions de dollars de recettes.

Breon Peace, Procureur des États-Unis pour le District Est de New York ; Lisa O. Monaco, Procureure générale adjointe des États-Unis ; Matthew G. Olsen, Procureur général adjoint de la Division de Sécurité Nationale du Département de la Justice des États-Unis ; et Michael J. Driscoll, directeur en charge adjoint au Bureau de terrain de New York du Federal Bureau of Investigation (FBI), Michael Alfonso, agent en charge spécial par intérim, Homeland Security Investigations, New York (HSI) ; et Keechant L. Sewell, Commissaire, New York City Police Department (NYPD) ont annoncé les plaidoyers de culpabilité.

« En pleine guerre civile, Lafarge a fait le choix impensable de mettre de l’argent entre les mains de l’ISIS, l’une des organisations terroristes les plus barbares de la planète, afin de pouvoir continuer à vendre du ciment », a déclaré Me Peace, Procureur des États-Unis. « Lafarge n’a pas fait cela simplement en échange de la permission d’exploiter son usine de ciment, ce qui aurait déjà été suffisamment préjudiciable, elle l’a aussi fait pour tirer parti de sa relation avec l’ISIS à des fins économiques, demandant l’aide de cette organisation pour porter un coup à sa concurrence en échange d’une part de ses ventes. Aujourd’hui, Lafarge a admis et assumé la responsabilité de son crime ahurissant. Jamais auparavant une entreprise n’avait été accusée de fournir une aide et des ressources importantes à des organisations terroristes étrangères. Cette accusation et cette résolution sans précédent reflètent les crimes extraordinaires commis et démontrent que les entreprises qui agissent en infraction de nos intérêts de sécurité nationale et violent ainsi la loi devront rendre des comptes. » 

« Comme le démontre le plaidoyer de culpabilité d’aujourd’hui, Lafarge a été motivée par l’avidité et son intérêt personnel lorsqu’elle a fermé les yeux sur les horreurs du terrorisme et a sciemment conspiré pour financer ces organisations terroristes. Les entreprises ne sont pas différentes des individus ; si vous financez le terrorisme, vous ferez face aux conséquences. Le résultat d’aujourd’hui devrait servir d’exemple aux autres ; si vous souhaitez financer le mal, peu importe que vous soyez un individu ou une entité plus vaste, la Joint Terrorism Task Force (Équipe conjointe d’intervention contre le terrorisme) du FBI et nos partenaires chargés de l’application de la loi continueront de démontrer un engagement implacable pour protéger notre nation et vous traduire en justice », a déclaré Me Driscoll, directeur en charge adjoint du FBI.

« Homeland Security Investigations (HSI) est fière de se tenir aux côtés de la Joint Terrorism Task Force (Équipe conjointe d’intervention contre le terrorisme) dans cette affaire sans précédent alors que nous demandons des comptes à des sociétés privées pour connaître leur complicité dans la mort et la destruction causées par l’ISIS et l’ANF. La guerre requiert de l’argent, et Lafarge a payé des terroristes, alimentant le feu pour protéger ses propres profits », a déclaré Me Alfonso, agent en charge spécial par intérim de HSI New York. « Travailler sciemment avec une organisation terroriste étrangère responsable de la mort d’innombrables soldats américains à des fins monétaires constitue un acte méprisable qui mérite la plus forte peine en vertu de la loi. Le plaidoyer de culpabilité historique d’aujourd’hui envoie un message fort aux entreprises du monde entier : nous ne vous laisserons pas tirer profit des méfaits commis par l’ISIS. Nous ne vous laisserons pas déshonorer la mémoire des personnes tuées par ce groupe barbare. »

« Les plaidoyers de culpabilité monumentaux d’aujourd’hui démontrent l’importance de notre travail continu pour lutter contre le genre de terrorisme transnational qui représente une menace importante à l’échelle nationale et dans le monde entier », a déclaré M. Sewell, Commissaire du NYPD. « Une fois encore, nos puissantes relations chargées de l’application de la loi ont collaboré dans cette enquête pour aller aussi loin que nécessaire afin d’assurer la justice et de nous protéger du danger. Je suis extrêmement fier, aujourd’hui, de nos enquêteurs du NYPD, du Procureur des États-Unis pour le District Est, de la Joint Terrorism Task Force du FBI à New York, de Homeland Security Investigations, et de tous ceux, ici et à l’étranger, qui se sont entraidés au fil du temps pour suivre cette affaire importante. »

Les Défendeurs ont négocié avec des groupes armés et des terroristes rémunérés

D’environ mai 2010 à septembre 2014, Lafarge, via LCS, a exploité une usine de ciment dans la région de Jalabiyeh en Syrie du Nord (l’« Usine de ciment de Jalabiyeh ») que Lafarge avait construite pour un coût d’environ 680 millions de dollars.  Après le début de la guerre civile syrienne en 2011, Lafarge et LCS ont négocié des accords pour payer des factions armées de la guerre civile afin de protéger les employés de LCS, pour assurer un fonctionnement continu de l’Usine de ciment de Jalabiyeh et obtenir un avantage économique par rapport à leurs concurrents sur le marché syrien du ciment. 

Comme les cadres de Lafarge l’ont clairement indiqué dans des e-mails récents, leurs motifs étaient principalement économiques. Les cadres de LCS ont acheté les matières premières nécessaires pour fabriquer du ciment auprès de fournisseurs contrôlés par l’ISIS ; versé des « dons » mensuels à des groupes armés, y compris l’ISIS et l’ANF, afin que les employés, clients et fournisseurs puissent traverser les postes de contrôle des groupes armés sur les routes autour de l’Usine de ciment de Jalabiyeh ; et finalement accepté de verser des paiements à l’ISIS sur la base du volume de ciment que LCS vendait à ses clients, que les cadres de Lafarge et LCS ont assimilé au paiement de « taxes ».

Les Défendeurs ont négocié des accords de partage de recettes avec l’ISIS et cherché un avantage économique

Les cadres de Lafarge et LCS ont intentionnellement structuré leurs accords avec l’ISIS pour rémunérer l’organisation terroriste sur la base de la quantité de ciment que LCS avait réussi à vendre – dans les faits, un accord de partage de recettes – pour inciter le groupe terroriste à agir dans l’intérêt économique de LCS. 

À titre de condition pour conclure cet accord de partage de recettes, les cadres de Lafarge et LCS ont demandé de l’aide à l’ISIS pour imposer des coûts aux concurrents vendant du ciment turc importé en Syrie du Nord, qui était souvent vendu moins cher que le ciment produit à l’Usine de ciment de Jalabiyeh. Les cadres de LCS ont indiqué clairement aux intermédiaires négociant avec l’ISIS que, en échange du paiement par LCS de 750 livres syriennes à l’ISIS pour chaque tonne de ciment vendu, ils s’attendaient à ce que l’ISIS prenne des mesures à l’encontre des concurrents de LCS, soit en arrêtant la vente de ciment turc importé concurrent dans les zones sous le contrôle de l’ISIS, soit en imposant des taxes sur le ciment concurrent de manière à permettre à LCS d’augmenter les prix auxquels elle vendait le ciment.

D’août 2013 à octobre 2014, Lafarge et LCS ont payé à l’ISIS et l’ANF, via des intermédiaires, l’équivalent d’environ 5,92 millions de dollars, consistant en des versements de « dons » mensuels fixes à l’ISIS et l’ANF, des paiements aux fournisseurs contrôlés par l’ISIS pour acheter des matières premières et des paiements variables basés sur la quantité de ciment vendu par LCS. Lafarge et LCS ont aussi payé l’équivalent d’environ 1,11 million de dollars à des intermédiaires tiers pour négocier avec l’ISIS et l’ANF et effectuent des paiements à ces derniers au nom de Lafarge et LCS. Par ailleurs, lorsque LCS a fini par évacuer l’Usine de ciment de Jalabiyeh en septembre 2014, l’ISIS a pris possession du ciment que LCS avait produit dans l’intérêt de la conspiration et l’a vendu à des prix qui lui auraient rapporté environ 3,21 millions de dollars. En conséquence du plan, LCS a obtenu environ 70,30 millions de dollars en recettes de ventes totales d’août 2013 à 2014. Les gains pour tous les participants à la conspiration, y compris LCS, les intermédiaires et les groupes terroristes, ont totalisé environ 80,54 millions de dollars.

Les Défendeurs ont dissimulé leurs paiements, falsifié leurs registres et antidaté les contrats

Les cadres de Lafarge et LCS ont aussi activement dissimulé leur plan consistant à fournir une aide importante à l’ISIS et à l’ANF. Par exemple :

• Les cadres de Lafarge et LCS ont exigé d’intermédiaires qu’ils créent des entités commerciales avec des noms sans rapport évident avec eux-mêmes et ont créé des factures avec des descriptions fausses des services rendus qu’un intermédiaire devait soumettre à LCS.
• Les cadres de LCS ont structuré les paiements de partage de recettes à l’ISIS afin que les clients de LCS paient l’ISIS, tandis que LCS remboursait les clients en appliquant des ristournes sur les prix pratiqués avec eux. Pour assurer que les clients de LCS ne sous-payent pas l’ISIS, LCS acceptait de fournir à l’ISIS des rapports de ventes périodiques, que l’ISIS pouvait utiliser pour vérifier que les clients de LCS payaient les montants dus en vertu des termes de l’accord de LCS avec l’ISIS.
• Pour dissimuler davantage leurs arrangements, les cadres de Lafarge et LCS ont tenté d’exiger de l’ISIS qu’elle n’inclue pas le nom « Lafarge » sur les documents commémorant et exécutant leurs accords.
• Bon nombre des cadres de Lafarge et LCS impliqués dans le plan utilisaient des adresses e-mail personnelles, plutôt que leurs adresses e-mail d’entreprise, pour mener à bien la conspiration.
• En octobre 2014, en guise de condition pour payer un intermédiaire afin de négocier avec l’ISIS et d’autres groupes armés, les cadres de Lafarge et LCS ont exigé de celui-ci qu’il signe un accord résiliant son acceptation de fournir des services à LCS. Point crucial, les cadres de Lafarge et LCS ont antidaté l’accord de résiliation au 18 août 2014, soit juste après l’émission par le Conseil de sécurité des Nations Unies d’une résolution appelant les États membres à interdire la réalisation d’affaires avec l’ISIS et l’ANF, afin de faussement suggérer que l’intermédiaire ne négociait pas avec l’ISIS au nom de LCS après la résolution de l’ONU.

Lafarge a fini par être acquise par un concurrent (la « Société successeur ») dans une transaction conclue le 10 juillet 2015. Les cadres de Lafarge n’ont pas divulgué les paiements de LCS à l’ISIS et à l’ANF à la Société successeur pendant les réunions de diligence d’acquisition, et la Société successeur n’a mené un processus de diligence raisonnable ni avant l’acquisition, ni après, concernant les opérations de LCS en Syrie, qui s’étaient arrêtées au moment de la conclusion de la transaction. Lafarge, LCS et la Société successeur n’ont pas non plus déclaré d’elles-mêmes leur conduite ou pleinement coopéré dans le cadre de l’enquête du Bureau.

L’enquête a été menée par la Joint Terrorism Task Force du FBI à New York. La position du gouvernement est gérée par la Section Sécurité Nationale et Cybercrime du Bureau. Les Procureurs adjoints des États-Unis Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson et Joshua Hafetz ont mené l’enquête et la procédure, avec l’aide fournie par les Procureurs adjoints des États-Unis Artemis Lekakis, J. Matthew Haggans et Lauren A. Bowman, et les Avocates plaidantes Bridget Behling et Jennifer Levy de la Section Antiterrorisme de la Division de Sécurité Nationale. 

L’Office of International Affairs de la Division Criminelle du Département de la Justice a fourni une assistance cruciale dans cette affaire. Le Département apprécie également la coopération et l’aide considérables apportées par les autorités françaises, marocaines et libanaises.

Les Défendeurs :

Lafarge S.A.
Paris, France

Lafarge Cement Syria S.A.
Damas, Syrie

Dossier de l’E.D.N.Y. n° 22-CR-444 (WFK)