Eastern District of New York

Earlier today, in federal court in Brooklyn, Daniel Rendon Herrera, also known as “Don Mario,” a citizen of Colombia, was sentenced by United States District Judge Dora L. Irizarry to 35 years’ imprisonment for engaging in a continuing criminal enterprise as a leader of the paramilitary, multibillion dollar drug organization known as the “Clan del Golfo” (CDG), and 15 years’ imprisonment for conspiring to provide material support to a designated foreign terrorist organization, the Autodefensas Unidas de Colombia (AUC).  The sentences will run concurrently.  As part of the sentence, the Court ordered Rendon Herrera to pay $45,750,000 million in forfeiture. The defendant pleaded guilty to the charges in November 2021.

Breon Peace, United States Attorney for the Eastern District of New York; Damian Williams, United States Attorney for the Southern District of New York; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York 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 sentence.

“Once the most feared narco-terrorist in Colombia, today marks the end of the criminal career of Rendon Herrera, responsible for importing tons of cocaine, fueling violence, perpetuating drug abuse leaving a wake of destruction from Colombia to the United States, and stained with the blood of rival drug traffickers and civilians who were tortured and killed by the Autodefensas Unidas de Colombia,” stated United States Attorney Peace.  “Our Office remains committed to cooperating with our international partners to dismantle transnational criminal organizations like the Clan del Golfo.”

“Daniel Rendon Herrera was one of the most prolific drug traffickers to ever operate in Colombia,” stated DEA Special Agent-in-Charge Tarentino.  “As leader of the AUC and Clan del Golfo, Don Mario was responsible for not only importing multi-ton quantities of cocaine into the United States, but also for terrorizing the citizens of Colombia for financial gain.  Today’s sentencing underscores DEA’s commitment to bringing to justice drug traffickers at the highest levels who cause the most harm throughout our communities.” 

“These paramilitary drug cartels may seem to be a world away, but they have a deadly impact on communities here in New York City.  Today’s sentencing demonstrates we and our partners remain committed to pursuing the leadership of these organizations and will hold them accountable for the devastation they cause,” stated FBI Assistant Director-in-Charge Driscoll.

“Starting in the late 1990’s, Rendon Herrera was the leader and mastermind behind a Foreign Terrorist Organization and Specially-Designated Global Terrorism Organization.  Under his leadership, Clan del Golfo (CDG) was responsible for heinous acts of violence, often leaving death and destruction in its wake to further the organization’s global cocaine trafficking network,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Michael Alfonso.  “Today’s sentencing and ordered forfeiture demonstrates the weight of Rendon Herrera’s crimes.  HSI will continue to work ceaselessly alongside our partners to protect Americans by dismantling and disrupting transnational criminal organizations and bring their leaders to justice.”

“Today’s sentencing reinforces the NYPD’s tireless work to rid our city of illegal narcotics and ensures meaningful consequences for one of the world’s most notorious narcotics traffickers,” said NYPD Commissioner Sewell. “The drugs and violence linked to this case knew no borders – but neither did the combined efforts of our NYPD officers and law enforcement partners as we collaborated on the local, state, federal, and international levels to achieve justice. For their sustained dedication, I am proud to thank the U.S. Attorney’s Offices for the Eastern and Southern Districts of New York, the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the New York State Police, and everyone else who contributed to this successful outcome.”

As set forth in the court filings and proceedings, since the late 1990’s, Rendon Herrera was a leader of the designated foreign terrorist organization, the AUC, and founder and leader of the CDG, formerly and also referred to as Los Urabeños and Clan Usuga, effectively the successor organization to the AUC. 

The AUC, founded in 1997, was a Colombian paramilitary and drug-trafficking organization, designated in 2001 by the United States Department of State as a Foreign Terrorist Organization and Specially-Designated Global Terrorism Organization.  The AUC engaged in armed conflict with the Fuerzas Armadas Revolucionarios de Colombia (FARC), Colombia’s main guerilla group, and sought to remove FARC sympathizers from positions of power and influence in Colombia.  To support its political and terrorist objectives, the AUC imposed “taxes” on cocaine trafficked through AUC-controlled areas and engaged in violent attacks including murders and kidnappings.  By 2006, many members of the AUC demobilized as part of the Colombian government’s Justice and Peace process – a process under which paramilitary members surrender to the Colombian government and relinquish their criminally-derived assets in exchange for reduced sentences and amnesty from extradition.  Rather than submit to the peace process, Rendon Herrera re-mobilized the AUC as the CDG.

The CDG, like the AUC, continued to finance their paramilitary and drug trafficking by imposing a “tax” on multi-ton shipments of cocaine that transited through areas in Colombia controlled by the organization, which shipments – more than 80 tons of cocaine – were ultimately destined for importation into the United States.  The CDG also employed “sicarios,” or hitmen, who carried out various acts of violence, including murders, assaults, kidnappings, and assassinations to collect drug debts, maintain discipline, control and expand drug territory and to promote and enhance the prestige, reputation and position of the organization.  By 2009, when Rendon Herrera was captured by the Colombian National Police, he commanded 16 “bloques,” or territories, across Colombia and thousands of armed paramilitary fighters.  Additionally, since 2009, Rendon Herrera has been designated by the United States Department of the Treasury, Office of Foreign Assets Control, as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act.  Rendon Herrera’s successor as leader of the Clan del Golfo, Dairo Antonio Úsuga David, also known as “Otoniel,” was extradited to the Eastern District of New York in May 2022 to face charges of leading a continuing criminal enterprise and participating in an international cocaine manufacturing and distribution conspiracy, and is awaiting trial.

The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Jonathan P. Lax, Francisco J. Navarro, and Andrew D. Grubin are in charge of the prosecution and Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters, with assistance provided by Assistant United States Attorney Alexander Li of the U.S. Attorney’s Office for the Southern District of New York, and Trial Attorney Elisabeth Poteat of the Justice Department’s National Security Division, Counterterrorism Section.  The Justice Department’s Office of International Affairs handled the extradition in this matter and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attaché Office in Bogotá, Colombia was instrumental in supporting the case.

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

The Defendant:

DANIEL RENDON HERRERA (also known as “Don Mario”)
Age: 57
Antioquia, Colombia

E.D.N.Y. Docket Nos. 14-CR-625 (S-3) (DLI) / 20-CR-569 (S-6) (DLI)

S.D.N.Y. Docket Nos. 04-CR-962 (LAP) / 08-CR-659 (SAS)

Earlier today, at the federal courthouse in Central Islip, United States District Judge Gary R. Brown sentenced Manuel Geovanny Torres Rivas to 25 years in prison for sexual exploitation of a child.  As part of his sentence, Torres Rivas must register as a sex offender upon his release from prison and not have unsupervised contact with minors.  The defendant pleaded guilty to the charge in January 2022.

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

“Today’s sentence removes a dangerous predator and is only possible due to the bravery of two young girls, who came forward to the authorities about the defendant’s disturbing behavior online, which then helped protect the community and end the abuse of another girl,” said U.S. Attorney Peace. “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 will always be priorities of our Office.”

“Torres Rivas, a hands-on offender who sexually abused a child entrusted to his care, utilized multiple social media accounts to contact children online, sending them explicit content and distributing child sexual abuse material,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Michael Alfonso.  “Today’s sentence takes a predator off the street and ensures Torres Rivas will no longer be able to victimize the most innocent members of our community.  HSI, along with our partners at the Nassau County Police Department Special Victims Unit, is committed to hunting down child sexual predators and will continue to use our authorities to protect children, physically and virtually.”

Torres Rivas targeted multiple minor females on Snapchat, where he engaged them in sexually explicit conversations and sent them unsolicited videos and images of child pornography.  For example, in September 2019, Torres Rivas used the Snapchat account “Geovanny_z6134” to contact a 13-year-old resident of Connecticut.  Torres Rivas, a stranger to the girl, described his own sexual abuse of a 9-year-old and sent the girl an unsolicited video depicting a child estimated to be between 8 and 10 years old engaged in sexual conduct.  Later, in June 2020, Torres Rivas uploaded to Snapchat more than two dozen videos and images of child pornography, some of which contained graphic depictions of child abuse and involved small children believed to be under the age of 5.  Additionally, the defendant used the Snapchat account “Geovr19” to contact an 11-year-old resident of Nevada, to whom he made statements concerning his molestation of a 9-year-old girl and sent the child sexually explicit photos of himself. 

This information came to light after the 13-year-old girl from Connecticut reported the contact to school officials, who then contacted local law enforcement, and the 11-year-old girl from Nevada reported the conduct to local law enforcement.  Snapchat reported to the National Center for Missing and Exploited Children (NCMEC) that approximately 28 videos and images containing child pornography had been uploaded to the platform using the defendant’s Snapchat account.  After tracing these Snapchat accounts to the defendant’s Hempstead residence, law enforcement officers searched the premises and recovered evidence that he had videotaped several sexual encounters with a 9-year-old girl who had been entrusted to his care.

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 prosecuted by the Office’s Long Island Criminal Division.  Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.

The Defendant:

MANUEL GEOVANNY TORRES RIVAS
Age:   27
Hempstead, New York

E.D.N.Y. Docket No. 20-CR-494 (GRB)

BROOKLYN, NY – U.S. Attorney Breon Peace announced today that the Department of Justice has awarded $484,034 to support the Project Safe Neighborhoods Program in the Eastern District of New York. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.

The Eastern District will utilize a sustained reduction in violent crime strategy that unites federal and local law enforcement authorities in strategic and robust partnerships forged to address violent crime and reduce gun and gang violence in high crime areas of Suffolk and Brooklyn, Queens, and Staten Island.

Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

United States Attorney Peace stated: “My Office, in collaboration with our law enforcement partners, is committed to combating violent crime by identifying and prosecuting the most dangerous offenders, removing guns from our neighborhoods, and supporting programs which benefit at-risk youth.   The PSN funding supports these efforts by providing strategies and tools that help make our communities safer and stronger.”

“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.

“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”

The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.

 The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law.  More information about OJP and its components can be found at  www.ojp.gov.

An indictment was unsealed today in federal court in Central Islip charging Fernando Cooper, also known as “Pablo,” with conspiring to distribute and possess with intent to distribute in Suffolk County more than 40 grams of fentanyl, which was contained in counterfeit opioid pills.  Cooper, who was already in custody on state fentanyl charges, is scheduled to be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay.

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 charges. 

“As alleged, Cooper manipulatively sold and marketed counterfeit opioid pills laced with fentanyl, a dangerous narcotic that is responsible for many deaths in Suffolk County,” stated United States Attorney Peace.  “Opioid addiction and fatal drug overdoses remain a significant threat to our communities and this Office is working closely with our law enforcement partners to protect the public by prosecuting fentanyl traffickers who callously conceal that deadly drug in counterfeit pills that could easily kill unsuspecting users.”

“Drug dealers are pushing products with no care for the dangerous substances in them, placing financial gain over human life,” stated FBI Assistant Director-in-Charge Driscoll.  “We allege Cooper sold pills he knew were laced with fentanyl, which is responsible for the spike in overdose deaths here and across the nation.  These dealers will be held accountable for the carnage they are leaving behind.”

“The illicit sale and distribution of fentanyl has taken countless lives across our region and the unsealing of this indictment should strike fear into the heart of anyone who considers buying opioids in any form on the black market,” stated SCPD Commissioner Harrison.  “I am proud of the men and women of the Suffolk County Police Department and our partner agencies for their tireless work in this case. We will continue to take aggressive action to hold dangerous drug dealers, like this individual who was peddling counterfeit opioid pills, accountable as we work to curb this ongoing scourge in our communities.”

“This defendant allegedly sold deadly counterfeit opioid pills to unsuspecting users,” said Suffolk County District Attorney Tierney.  “Thanks to our partnership with all of our law enforcement agencies, this individual is no longer peddling this poison to our residents. I want to especially thank U.S. Attorney Peace for spearheading the prosecution of these important cases.”

As alleged in the indictment and court filings, between December 2021 and July 2022, Cooper sold and possessed with intent to sell more than 500 counterfeit opioid pills that contained approximately 56 grams of fentanyl, but that were made to resemble Percocet and 30-milligram oxycodone pills, which are in great demand by opioid addicts.  In July 2022, Cooper sold approximately 223 counterfeit opioid pills, containing about 28 grams of oxycodone to another person in Bohemia, New York and, days after that sale Cooper was found in possession of 119 counterfeit opioid pills that contained around 14 grams of fentanyl, which were recovered after he fled from the police following a traffic stop and hid in a Central Islip backyard.  Execution of a search warrant on cellphones that were seized from Cooper revealed that he was a member of the Hit Squad street gang and that he worked with other individuals to sell and possess with intent to sell fentanyl contained in counterfeit or “pressed” opioid pills in Suffolk County. 

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

If you or someone you know is suffering from substance abuse please call the Substance Abuse and Mental Health Services Administration (SAMHSA) Helpline at 1-800-662-HELP (4357) or go to Findtreatment.gov.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Cooper faces a mandatory minimum sentence of 5 years’ imprisonment and up to 40 years in prison.

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. 

The Defendant:

FERNANDO COOPER (also known as “Pablo”)
Age:  21
Ronkonkoma, New York

E.D.N.Y. Docket No. 22-CR-466 (JMA)

An indictment was unsealed today in federal court in Brooklyn charging Jin Hua Zhang, Gregory Armand, Chen Chen, Yanbin Chen, Yanbing Chen, Changgui Huang, Xin Jin, Jiahui Miao, Lingming Zeng, Jin Fu Zhang and Hua Zhou with various offenses, including money laundering conspiracy, wire fraud conspiracy, bank fraud conspiracy, passport fraud conspiracy, aggravated identity theft and conspiring to operate an unlicensed money transmitting business.  The defendants were arrested and arraigned today, in federal court in Brooklyn before United States Magistrate Judge Peggy Kuo. One defendant 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); and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the indictment.

“As alleged, nearly $18 million was swindled from over 200 victims throughout the country and laundered through the defendants’ sophisticated money laundering scheme,” stated United States Attorney Peace.  “These 11 arrests demonstrate the seriousness of financial fraud and the commitment of this Office and our law enforcement partners to rooting out bad actors and protecting victims.”

“For once the name of a scam - pig butchering - reflects the grotesque nature of the harm it causes victims. We allege these fraudsters bled dry each of their victims and then used the money to set up fake cryptocurrency accounts. We know there are many more victims of these types of scams, and we urge those people to report it to the FBI. We will do all we can to bring each and every criminal to justice,” stated FBI Assistant Director-in-Charge Driscoll.  

“Drug trafficking is often linked with other criminal activities like money laundering, fraud and conspiracy,” said DEA Special Agent In Charge Frank Tarentino.  “DEA’s partnership with the FBI and the U.S. Attorney’s Office for the Eastern District of New York has resulted in shutting down a multi-million dollar investment fraud and money laundering scheme operating in our backyard.   I commend the agents, officers, and attorneys for their diligence throughout this investigation.”

“These defendants betrayed the trust of hundreds of people for profit, stealing millions of dollars through their brazenly callous investment scheme,” said NYPD Commissioner Sewell. “The NYPD and our law enforcement partners will continue to aggressively pursue anyone who seeks to defraud and victimize others, holding them fully accountable for their actions. I want to thank and commend the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, the DEA’s New York Division, and our NYPD investigators for their tireless work on this case.”

According to the indictment and a memorandum filed in connection with the defendants’ bail hearings, the defendants engaged in a money laundering conspiracy dating back to May 2021 in which they laundered proceeds from an investment fraud scheme referred to as “Sha Zu Pan” or the “pig butchering” scam.  Through this scam, more than 200 victims were contacted through messaging applications and convinced to invest almost $18 million in trading platforms by sending funds to purported money manager bank accounts that were later stolen.  The defendants also operated an unlicensed money transmitting business in which they converted approximately $52 million in cash into cashier’s checks on behalf of customers.  As payment for their services, the defendants received a fee, which was generally a portion of the fee that the business received.  As part of these criminal schemes, the defendants opened bank and cryptocurrency accounts under false names, using forged passports and identification documents of real people.

This case is part 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 FBI. 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.

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 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 Public Integrity section.  Assistant United States Attorneys Benjamin Weintraub and Miranda Gonzalez 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:

JIN HUA ZHANG
Age: 35
Staten Island, New York

GREGORY ARMAND
Age: 44
Belleville, New Jersey

CHEN CHEN
Age: 33
Queens, New York

YANBIN CHEN
Age: 24
Queens, New York

YANBING CHEN
Age: 28
Brooklyn, New York

CHANGGUI HUANG
Age: 30
Brooklyn, New York

XIN JIN
Age: 33
Brooklyn, New York

JIAHUI MIAO
Age: 24
Cliffside, New Jersey

LINGMING ZENG
Age: 37
Brooklyn, New York

JIN FU ZHANG
Age: 39
Staten Island, New York

HUA ZHOU
Age: 33
Queens, New York

E.D.N.Y. Docket No. 22-CR-458 (LDH)

Earlier today, in federal court in Brooklyn, a 10-count indictment was unsealed charging Dr. Somsri Ratanaprasatporn, her office manager Leticia Smith, Bassam Amin, Omar Elsayed, and Yousef Ennab who are pharmacists, Michael Kent, Anthony Mathis, and Raymond Walker with conspiracy to distribute and possess with intent to distribute oxycodone and related crimes.  Smith and Kent are also charged with money laundering in connection with their alleged efforts to hide the proceeds of their illegal oxycodone distribution operation.  All eight defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.

Breon Peace, United States Attorney for the Eastern District of New York; Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); 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); Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigations, New York (IRS-CI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI); and Joshua Vinciguerra, Director, New York State Department of Health, Bureau of Narcotic Enforcement (BNE), announced the charges.

“Doctors and medical professionals have a professional obligation to do no harm, but, as alleged, the defendants callously supplied more than one million pills to traffickers for distribution, resulting in dangerous opioids flooding the streets of this district,” stated United States Attorney Peace.  “Today’s charges demonstrate this Office’s continued commitment to stemming the availability of illegal drugs and holding to account those who contribute to the epic tragedy that is the opioid epidemic.”

“This structured drug trafficking ring’s operations started in a doctor’s office and ended with $24 million worth of diverted oxycodone on the streets.   DEA and our law enforcement partners will continue to hold DEA Registrants and other medical professionals to the highest possible standards and also hold them accountable when they knowingly endanger members of the community. Together, we are all proud of this righteous work, and for the difference it makes in our communities. I commend the investigators and the prosecution team for their work on this wide-spread investigation,” stated DEA Special Agent-in-Charge Tarentino.

“As alleged, our health care system that serves vulnerable populations has been undermined by these individuals,” stated HHS-OIG Assistant Special Agent-in-Charge Doherty.  “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health care programs for personal gain.”

NYPD Commissioner Sewell stated: “Today’s charges prove again that our fight against the illegal drug trade is unremitting.  The NYPD, together with all of our local, state, and federal law-enforcement partners, will pursue these criminals wherever they operate – and when the perpetrators are trusted members of the medical community, their crimes are especially egregious. I thank and commend the U.S. Attorney’s Office for the Eastern District of New York, the DEA’s New York Division, the Office of the Inspector General of the U.S. Department of Health and Human Services, the Internal Revenue Services’ Criminal Investigations, the NYS Department of Health’s Bureau of Narcotic Enforcement, the New York City Department of Investigation, and everyone else involved in this case for their exceptional work.”

“As charged, these defendant medical professionals and their co-conspirators supplied more than 1.2 million oxycodone pills to the streets of New York City, promoting the illicit trade of dangerously addictive opioids.  DOI will continue to work tirelessly with our federal and law enforcement partners to ensure that pill mills such as this one are exposed and shut down, and that the individuals who run them are held accountable. I thank the United States Attorney’s Office for the Eastern District of New York and all our investigative partners on this investigation,” stated DOI Commissioner Strauber.

“With this multi-million-dollar criminal scheme, it's alleged the defendants made their profits off the vulnerabilities and addictions of their customers throughout New York City.  Law enforcement partnerships like those seen here today have been and continue to be an integral part of stopping the flow of highly addictive narcotics into our communities,” stated IRS-CI Special Agent-in-Charge Fattorusso.

“Today’s charges show how diverted prescription drugs still fuel the opioid epidemic in New York.  The Bureau of Narcotic Enforcement remains resolute in its commitment to work together with our federal and local law enforcement partners to disrupt and dismantle the criminal organizations that abuse the public’s trust in health care practitioners to move these dangerous and addictive pills from pharmacies to our neighborhoods,” stated BNE Director Vinciguerra.

Oxycodone is a highly addictive opioid used to treat severe and chronic pain conditions.  Every year, millions of Americans abuse oxycodone, and the misuse of prescription painkillers like oxycodone leads to hundreds of thousands of annual emergency room visits.  More than 16,000 Americans died from prescription opioid overdoses in 2020.   Oxycodone prescriptions have enormous cash value to drug dealers.  For example, one oxycodone 30 mg tablet, which was the dosage prescribed in this case, can be sold by dealers on the street for between $20 and $30 in New York City.                        

As set forth in the indictment and publicly filed documents, between December 2018 and October 2022, the defendants operated a drug distribution ring out of a medical practice on Linden Boulevard in East New York, Brooklyn.  Together, they unlawfully distributed more than 11,000 prescriptions for oxycodone, amounting to more than 1.2 million oxycodone pills, which carry a street value of at least $24 million.  Ratanaprasatporn, a pediatrician and general practitioner, and Smith, issued the prescriptions; Amin, Ennab and Elsayed filled the prescriptions at pharmacies in Brooklyn and Staten Island, and Kent, Mathis, and Walker oversaw “crews” of sham patients who received medically unnecessary prescriptions.  Together, the defendants made millions of dollars from the scheme.  During the execution of a search warrant this morning, members of law enforcement recovered several hundred thousand dollars in U.S. currency from Smith’s residence.  Law enforcement also recovered two handguns that Kent was observed tossing from a rear door of his residence.

If convicted of the drug charges, the defendants face up to 20 years’ imprisonment.  If convicted of the money laundering charges, Smith and Kent face up to 20 years’ imprisonment for each count.

The charges in the indictment are allegations, and the defendants are 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 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 government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Victor Zapana, and Gilbert Rein.  Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

New Yorkers who need help finding substance-use-disorder treatment resources should contact 1-877-8-HOPENY.  The HopeLine provides high quality, responsive information, and referral services via phone and text message to callers throughout New York State experiencing substance abuse issues. HOPELine services are free and confidential.

The Defendants:

LETICIA SMITH
Age:  54
Brooklyn, New York

BASSAM AMIN
Age: 69
Brooklyn, New York

OMAR ELSAYED
Age:  28
Hackensack, New Jersey

YOUSEF ENNAB
Age:  25
Brooklyn, New York

MICHAEL KENT
Age:  49
Brooklyn, New York

ANTHONY MATHIS
Age:  55
New Windsor, New York

Dr. SOMSRI RATANAPRASATPORN
Age:  75
Staten Island, New York

RAYMOND WALKER
Age:  70
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR464 (DLI)

Earlier today, a federal jury in Brooklyn convicted Mustafa Goklu, also known as “Mustangy,” of money laundering and operating an unlicensed money transmitting business as part of a scheme to launder the purported Bitcoin proceeds of drug trafficking.  The verdict followed a four-day trial before United States District Judge Pamela K. Chen.  When sentenced, Goklu faces up to 25 years in prison.

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

“The defendant offered his customers the ability to launder their criminal proceeds, remain anonymous and conceal where their Bitcoin was coming from so they could continue to engage in drug trafficking and other crimes while avoiding law enforcement detection,” stated United States Attorney Peace.  “With today’s verdict, Goklu’s illicit business of converting money from one form to another without a required license has been shut down and the defendant has been convicted for his crimes.”

Mr. Peace thanked the U.S. Drug Enforcement Administration, New York Division, for its outstanding investigative work on the case.

As proven at trial, in July 2018, DEA special agents identified an advertisement posted on localbitcoins.com where an individual with the username “Mustangy” offered to purchase up to $99,999 worth of bitcoins (“BTC”), a digital currency also known as cryptocurrency, and convert them into U.S. currency for a fee. Law enforcement agents later identified Goklu as the individual using the username Mustangy. On July 11, 2018, a DEA Special Agent acting in an undercover capacity (the “UC”) began exchanging encrypted text messages with Goklu to arrange in-person exchanges of BTC to U.S. currency. The UC and the defendant subsequently met and engaged in seven transactions or attempted exchanges of BTC to cash over a nine-month period, culminating in Goklu’s arrest in April 2019. The UC indicated to the defendant on multiple occasions that the source of the BTC the defendant was exchanging was narcotics trafficking and that as part of the UC’s business he sold oxycodone, Adderall, and marijuana.  The transactions occurred in the defendant’s parked Mercedes-Benz, at a coffee shop in Sunnyside, Queens, and locations in Manhattan. The amounts exchanged at each transaction ranged from approximately $5,000 to $50,000 for a total of $133,000. During each transaction, the UC transferred BTC to Goklu’s cryptocurrency wallet, after which the defendant retained a seven or eight percent commission fee and provided the UC with the remaining amount in cash. The evidence introduced at trial also showed that the defendant was engaged in similar illicit Bitcoin exchanges with multiple other individuals.

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 International Narcotics and Money Laundering Section.  Assistant United States Attorneys Gillian Kassner and Marietou E. Diouf are in charge of the prosecution with the assistance of paralegal specialist Bridget Donovan.

The Defendant:

MUSTAFA GOKLU
Age:  50
Sunnyside, Queens

E.D.N.Y. Docket No. 19-CR-386 (PKC)

Breon Peace, the United States Attorney for the Eastern District of New York (EDNY), in partnership with Damian Williams, the United States Attorney for the Southern District of New York (SDNY), and Brian M. Boynton, Principal Deputy Assistant Attorney General, filed a Statement of Interest today in The City of New York v. Arm or Ally, LLC, to express the Justice Department’s views on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s regulations concerning unfinished frame and receiver kits. 

In the lawsuit, the City of New York alleges that multiple firearm businesses have sold tens of thousands of illegal, unfinished frames and receivers to New Yorkers.  These frames and receivers, which are classified as firearms, were then converted into unserialized, untraceable handguns and assault-style weapons, known as “ghost guns.”  Ghost guns contribute to the ongoing plague of gun violence.

The Department of Justice’s Statement of Interest informs the Court that the United States has serious concerns about the proliferation of untraceable firearms easily assembled from firearm parts kits and unfinished frames and receivers.  The Statement of Interest makes clear that ATF has long held that the sale of all components necessary to produce a functional firearm are, and always have been, classified as the sale of a firearm under the Gun Control Act of 1968.  Additionally, the Statement of Interest informs the Court of ATF’s authority to promulgate a rule updating its definition of “frame or receiver” and other statutory and regulatory terms.  

Mr. Peace stated, “Ghost guns are a major contributor to the ongoing plague of gun violence.  The United States will continue to employ every means available, including civil tools, to keep ghost guns and other illegal firearms out of the hands of criminals and reduce the risk of gun violence.  The United States filed a Statement of Interest in this important litigation to ensure that the Court is informed of the federal government’s views of pertinent firearms statutes and regulations.”

Mr. Williams stated, “This Statement of Interest reflects the Department of Justice’s commitment to work with federal, state, and local law enforcement partners to combat the growing problem of ghost guns.  This Office is determined to prevent criminals from accessing untraceable firearms easily assembled from firearms parts kits and unfinished frames and receivers.”

“Ghost guns have for years helped fuel an escalating trend of firearms-related violence,” ATF Special Agent in Charge DeVito said.  “The updated federal regulations are an important step in abating that trend in our local communities.  Today’s filing sends a message that the United States will do its part, using all available means, to support our local partners in their own efforts to curb the flow of these dangerous weapons to the criminal element and violent offenders.”       

For the U.S. Attorney’s Office for the Eastern District of New York, the filing of this Statement of Interest is part of EDNY’s larger Civil Initiative to Reduce Gun Violence.  The EDNY’s Civil Initiative to Reduce Gun Violence was created earlier this year in recognition of the President’s directive to take a whole-of-government approach to combat the epidemic of gun violence and ensure public safety, and complements the EDNY’s Criminal Division’s successful efforts to reduce the scourge of gun-related crimes.  The EDNY’s Civil Initiative to Reduce Gun Violence aims to collaborate with federal, state, and local officials, as well as community stakeholders, to address the root causes of gun-related crime, and supports reform efforts made across the government.  In July 2021, the United States Attorney’s Offices for the Southern and Eastern Districts of New York also joined a cross-jurisdictional strike force to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. 

This matter, as well as the EDNY’s Civil Initiative to Reduce Gun Violence, are being handled by Assistant U.S. Attorneys Michael Blume, Richard Hayes, Joseph Marutollo, and Bonni Perlin of the Eastern District of New York, with assistance from Paralegal Specialist Jill Merenda.  This matter was handled in partnership with Assistant U.S. Attorneys Jeannette Vargas and Lucas Issacharoff of the Southern District of New York; Director Alexander K. Haas, Assistant Director Lesley Farby, Trial Attorneys Daniel Riess, and Martin M. Tomlinson of the Federal Programs Branch; and Director Gustav W. Eyler, Principal Deputy Director Amanda Liskamm, and Trial Attorneys Patrick Runkle and Daniel Crane-Hirsch of the Consumer Protection Branch.  

Earlier today, in federal court in Brooklyn, Anthony Pandrella, an associate of the Gambino organized crime family, was sentenced by United States Chief District Judge Margo K. Brodie to 40 years’ imprisonment for the murder of 77-year-old Vincent Zito, Hobbs Act robbery and unlawful use of a firearm.  Pandrella was convicted of the charges following a one and a half-week trial in June 2022.  Restitution will be determined at a later date.

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 Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.

“All for greed, the defendant ruthlessly executed his longtime friend after being welcomed into his home,” stated United States Attorney Peace.  “Pandrella’s cold-blooded crime has cost him dearly with the loss of his freedom for decades.”

“With today’s sentence, the NYPD and our law enforcement partners reaffirm our commitment to hold every violent criminal in our community accountable,” stated NYPD Commissioner Sewell.  “This defendant showed a callous disregard for human life, and his association with organized crime will not shield him from justice.  I thank and commend the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and everyone who worked on this important case.”

The defendant and Zito were friends for more than 30 years.  Zito was running an illegal loansharking business and had been warned by Pandrella that he was “hot,” meaning that he was under investigation by law enforcement.  Zito had given Pandrella $750,000 from the business to hold for safekeeping, but when he tried to collect the money back from Pandrella, the defendant failed to return it. On the morning of October 26, 2018, Pandrella went to the Sheepshead Bay home of Zito and while there, shot his friend in the back of the head at close range. Pandrella also stole expensive foreign-made wristwatches that the victim was holding as collateral for a customer’s loan. Pandrella was captured on security camera footage entering and leaving Zito’s residence at the time of the murder and robbery. After leaving the victim’s residence, Pandrella went home and additional security video from his neighborhood showed that the defendant changed his shoes and clothing, and removed the driver’s side floor mat of his vehicle so it could be cleaned. Zito’s body was discovered by his 11-year-old grandson when the boy returned home from school. The murder weapon was recovered at the scene and Pandrella’s DNA was found on the trigger and grip of the firearm.

The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys M. Kristin Mace and Matthew R. Galeotti are in charge of the prosecution with the assistance of Paralegal Specialist Teri Carby.

The Defendant:

ANTHONY PANDRELLA
Age:  63
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-122 (MKB)

Earlier today, in federal court in Brooklyn, Jeremy Trapp was sentenced by United States District Judge William F. Kuntz II to 18 months in prison for cutting a brake line of a New York City Police Department (NYPD) van and 18 months in prison for committing wire fraud in connection with the COVID-19 pandemic-related Economic Injury Disaster Loan program.  The sentences will run concurrently.  As part of the sentence, the Court ordered Trapp to pay $9,722.88 in restitution to the United States Small Business Administration.

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 sentences.

“Today’s sentence shows that there are consequences for those who seek to harm our law enforcement officers and steal from our public assistance programs,” stated United States Attorney Peace.  “In cutting a brake line on an NYPD vehicle, Jeremy Trapp showed a blatant disregard for the lives of police officers and residents of New York City who could have been killed or seriously injured by a runaway vehicle without brakes.”

“Jeremy Trapp’s contempt for the law is first demonstrated by his stealing money meant for people adversely impacted by the COVID-19 pandemic, and is then exceeded by his disdain for those who enforce the law,” stated NYPD Commissioner Sewell.  “Cutting the brake lines of an NYPD vehicle would not only threaten the safety of police officers – it would endanger the lives of anyone in that vehicle’s path. Any attempt to rationalize these actions as a protest against the government or law enforcement is the height of hypocrisy. I want to thank the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and the NYPD’s Intelligence Bureau for their outstanding work on this case.”

As set forth in the court filings and today’s proceeding, on July 17, 2020, Trapp crawled under a marked NYPD van parked near Fourth Avenue and 42nd Street in Sunset Park, Brooklyn, and partially severed a line that is part of the NYPD van’s anti-lock braking system, which is similar in appearance to, and in the same location as, the NYPD vehicle’s main brake line.  A malfunctioning anti-lock braking system would adversely impact a driver’s ability to stop and maintain control of the van in an emergency.

Additionally, in June 2020, Trapp submitted a fraudulent Economic Injury Disaster Loan program (EIDL) loan and grant application.  EIDL provides qualifying small businesses with low-interest loans.  The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic. 

In the application, Trapp claimed that he was the sole proprietor of a car wash business located at his home address in Brooklyn, a multi-unit residential building.  Trapp further represented that he employed ten individuals and that his gross revenue for the 12 months prior to the COVID-19 pandemic was $150,000.  Based on Trapp’s false representations, the Small Business Administration approved a $42,500 loan and $10,000 grant to Trapp, and these funds were deposited into Trapp’s bank account.  

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Francisco J. Navarro and Sara K. Winik are in charge of the prosecution. 

The Defendant:

JEREMY TRAPP
Age:  26
Brooklyn, New York

E.D.N.Y. Docket Nos. 20-CR-308 and 20-CR-454 (WFK)

Earlier today, in federal court in Brooklyn, Reynaldo Vasquez, the former president of the El Salvadorean soccer federation (“the Federation”) was sentenced by United States District Judge Pamela K. Chen to 16 months’ imprisonment in connection with over $350,000 in bribes that he and other soccer officials from El Salvador received from an American company in exchange for the sale of broadcast rights to the El Salvador soccer team’s World Cup qualifier and friendly matches.  Vasquez pleaded guilty to racketeering conspiracy in August 2021.  The defendant was indicted in November 2015 and extradited to the United States from El Salvador in 2021.  As part of his plea agreement, Vasquez had previously agreed to forfeit $360,000 to the government.

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

“The defendant and his co-conspirators, motivated by greed, disgraced themselves by lining their pockets with hundreds of thousands of dollars in bribes, at the expense of a beautiful sport, El Salvador’s soccer federation, and the community it served,” stated United States Attorney Peace.  “Vasquez has now been held to account, like the many other corrupt soccer officials who have been exposed by the government’s investigation.” 

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office (FBI), and the Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), for their exceptional investigative work, and the Department of Justice’s Office of International Affairs for its assistance with extradition of the defendant in this matter.

From approximately 2009 through 2011, Vasquez served as the President of the Federación Salvadoreña de Fútbol.  Vasquez and his co-conspirators participated in and corrupted an enterprise comprising soccer organizing bodies and sports marketing companies.  As part of his association with that enterprise, Vasquez and others solicited and received bribes and kickbacks in exchange for awarding lucrative media and marketing contracts.  In 2012, Vasquez, together with other current and former officials of the federation, received approximately $350,000 in bribes in connection with the sale of media and marketing rights to El Salvador World Cup qualifying matches to be played in advance of the 2018 World Cup.  This bribe payment was wired from a sports marketing company’s bank account in the United States.  Vasquez ultimately received a portion of his bribe money through a wire transfer sent through the United States.  In 2014 and 2015, Vasquez and others agreed to receive tens of thousands of dollars in bribes in connection with the participation of the Salvadorean national team in friendly matches to be played in the United States. 

The sentence announced today is part of a long-running investigation into corruption in international soccer led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office.  To date, the prosecution has resulted in 27 individual guilty pleas, 4 corporate guilty pleas, and 2 convictions at trial, among other resolutions.  The prosecutors in Brooklyn have received considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington, and various foreign governments.

Assistant United States Attorneys Kaitlin T. Farrell, Victor Zapana, Eric Silverberg, and Brian D. Morris are in charge of the prosecution. 

The Defendant:

REYNALDO VASQUEZ
Age: 66
El Salvador

E.D.N.Y. Docket No. 15-CR-252 (PKC)

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Juwan Anderson and Say-Quan Pollack for their roles in an armed robbery at a church in Brooklyn (the “Church”) on July 24, 2022.  The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.  A third defendant remains at large.

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 Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.

“As alleged, the defendants brought guns into a place of worship, stealing from two members of the clergy, and terrifying the congregation in the process,” stated United States Attorney Peace.  “I commend the Special Agents and Detectives for their outstanding efforts in identifying the perpetrators who committed a crime that shocks the conscience for its brazenness. This Office will always work with our law enforcement partners to protect our houses of worship, prosecute those who engage in gun violence and and ensure the safety of all members of our community.”

“Armed robbery is an intolerable crime, but to commit such an act during a religious service is incomprehensible,” stated ATF Special Agent-in-Charge DeVito.  “The men and woman of ATF stand side by side with all of our partners to identify, investigate and apprehend those that commit such brazen acts of violence within our communities.  These arrests are due to the excellent investigative work by ATF/NYPD’s Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Group. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”

“The indictment unsealed today affirms the NYPD’s unwavering commitment to working collaboratively, across several law enforcement agencies, to focus on those few individuals charged with wreaking violence in our city,” stated NYPD Commissioner Sewell.  “I commend the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Division of the Bureau of Alcohol, Tobacco, and Firearms, and all of our NYPD officers and detectives who have investigated this important case and removed these defendants from our streets."

As alleged in the indictment and court filings, Anderson, Pollack and a co-conspirator—masked and clad all in black—entered the Church brandishing firearms, while parishioners attended Church services in person and via a live-stream.  The lead pastor (“Individual 1” in the Indictment) dove to the floor, while his wife (“Individual 2” in the Indictment) shielded their infant daughter who was sitting on her lap.  Pollack stood guard at the doorway, pointing a firearm in the direction of the parishioners and the pulpit. The co-conspirator, wielding a gun, approached Individual 2 and pulled jewelry off her person.  Pollack then approached Individual 1 as he lay on the floor and made sure that all of his jewelry had been removed by Anderson and the co-conspirator.    

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, each defendant faces a maximum sentence of life imprisonment.

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorney Rebecca M. Schuman is prosecuting the case.

The Defendants:

JUWAN ANDERSON
Age:  23
Brooklyn, New York

SAY-QUAN POLLACK (also known as “Say-Quan Pollock”)
Age:  23
Brooklyn, New York

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

Earlier today, at the federal courthouse in Central Islip, Patrick Polidore was arraigned by United States Magistrate Judge Steven I. Locke on charges that he and co-defendant Dennis Wolfolk conspired to purchase and illegally transport into New York more than two dozen handguns.  Wolfolk is in federal custody at the Robert A. Deyton Detention Facility located in Lovejoy, Georgia, and will be removed to the Eastern District of New York for arraignment on the charges at a later date.

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 (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Anne T. Donnelly, Nassau District Attorney announced the charges.

“As alleged, these defendants illegally trafficked over two dozen guns across state lines, distributing them to street-level buyers in New York where at least 11 were then used in numerous violent crimes, including multiple shootings across Long Island,” stated United States Attorney Peace.  “This office and our law enforcement partners will continue to vigorously investigate and prosecute those who exploit state and federal gun laws directly leading to deadly gun violence in our communities.”

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

“Straw purchasers undermine federal laws and enable violent criminals to obtain firearms that destroy lives and devastate communities,” said ATF Special Agent in Charge DeVito. “This investigation was initiated by the ATF Long Island Firearms Task Force after a 2020 murder in Hempstead, NY. Evidence recovered by ATF led to Polidore. As alleged, further investigation revealed he conspired to illegally traffic approximately 27 firearms from Georgia to Long Island. ATF is on the frontline in the fight against firearms trafficking alongside our partners. We will use every resource to save lives and stop the flow of illegal guns into our communities. Thank you to our law enforcement partners, including: Nassau County Police Department’s Gang Investigation Squad, Nassau County District Attorney and Hempstead Police Department for all their work and effort.”

“The arraignment of defendant Patrick Polidore and continued investigation into defendant Dennis Wolfolk is a clear example how law enforcement working together continues to arrest and prosecute these criminals to ensure the safety of our neighborhoods.  The defendants illegally transported dozens of handguns to Long Island and surrounding areas.  Some of these weapons were used in the commission of multiple shootings and other violent crimes.  We will continue to investigate all who break the law in order to reduce gun violence in all communities.  Lastly, I would like to thank all of the investigators who assisted with this investigation for their commitment and dedication to suppressing crime,” stated NCPD Commissioner Ryder.

Nassau District Attorney Donnelly said: “Illegal firearms are flooding into Long Island every day and causing untold destruction. To date, our county law enforcement partners have seized 272 weapons in 2022. As of this date last year, that number was 193. Patrick Polidore and Dennis Wolfolk are part of that problem. These defendants allegedly conspired to purchase firearms in Georgia and trafficked those weapons to Long Island, where at least 11 of them have already been recovered at crime scenes. Stemming the flow of illegal weapons into Long Island requires great partners and I thank U.S. Attorney Breon Peace; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Nassau County Police Department for their work in bringing these alleged gun runners to justice.”

As alleged in an 11-count Indictment and detailed at Polidore’s arraignment, between October 2020 and January 2021, Polidore visited numerous federally licensed retailers and acted as the straw purchaser for approximately 27 handguns, many of which were purchased in rapid succession on the same date.  For example, as alleged, on November 4, 2020, Polidore purchased six handguns at multiple locations in Georgia; on November 18, 2020, and November 23, 2020, he purchased a total of ten handguns.  On federal records that document firearms transactions, Polidore falsely affirmed that he was the actual purchaser of the weapons when, in actuality, he had conspired with Wolfolk, who, as a convicted felon, was legally prohibited from possessing a firearm, to traffic the handguns to New York, where they were distributed to street-level buyers. 

At least 11 of the handguns Wolfolk transported to New York have been recovered by law enforcement at crime scenes in and around Long Island.  For example, shortly after Polidore’s November 4, 2020 purchase of six handguns from different retailers in Georgia, Wolfolk traveled to Long Island with the weapons. Within months, three of the firearms purchased by Polidore were recovered by police on Long Island:

• On January 13, 2021, during a traffic stop in Hempstead, New York—where Wolfolk had previously resided—three individuals, including a juvenile, were found in possession of a 9mm Ruger handgun purchased by Polidore. This gun was linked to an earlier shooting in Uniondale on November 25, 2020, in which unknown individuals fired shots at a vehicle.  The shell casings from that shooting incident matched the firearm purchased by Polidore just two days earlier.
• On May 28, 2021, during a traffic stop in Patchogue, New York, police arrested an individual in possession of a .22-caliber Walther handgun purchased by Polidore. 
• On October 3, 2021, police arrested an individual fleeing the scene of an armed robbery in Bethpage, New York, who was in possession of a .40-caliber Smith & Wessen handgun purchased by Polidore. This same firearm was subsequently linked to a shooting incident in Hempstead on December 16, 2020

Additionally, on December 22, 2020, police investigating the scene of a homicide in Hempstead, New York, located a gun box that had been purchased along with a .40-caliber Glock handgun by Polidore.

To date, the whereabouts of at least 16 firearms purchased by Polidore are still unknown.

The government’s case is being prosecuted by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Anthony Bagnuola and Mark E. Misorek are in charge of the prosecution.

The Defendants:

PATRICK POLIDORE
Age: 32
Powder Springs, Georgia

DENNIS WOLFOLK
Age: 29
Lovejoy, Georgia

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

Earlier today, in federal court in Central Islip, Andrew Frey pleaded guilty before United States Magistrate Judge Arlene R. Lindsay to being a felon in possession of a firearm and obstruction of justice.  Today’s guilty plea follows the defendant’s conviction by a federal jury of the attempted sex trafficking and attempted kidnapping of two victims.  The verdict in that case was returned on September 20, 2022 after two weeks of trial before United States District Judge Joan M. Azrack.  When sentenced, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life in prison. 

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 guilty plea and verdict.  

“Frey targeted and used violence against vulnerable members of our society seeking to exploit them for his own sexual gratification,” stated United States Attorney Peace.  “Fortunately, the young women whom the defendant sought to victimize were able to escape.  Today’s guilty plea, and the jury’s verdict, make clear there was no escape from justice for this dangerous defendant.” 

Mr. Peace also expressed his appreciation to the Suffolk County Sheriff’s Office, the Suffolk County District Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.

“The victims in this case jumped from a moving vehicle rather than risk the fate Frey had waiting for them. Based on the weapons investigators discovered, Frey's intent was dangerous, if not deadly. These women should be commended for their bravery, which we hope will serve as motivation for any other women being victimized by sexual predators to call us,” stated FBI Assistant Director-in-Charge Driscoll.

“The defendant has proven to be a dangerous individual with a propensity for preying upon and attacking vulnerable women who refuse to bend to the will of a sexual predator,” stated SCPD Commissioner Harrison.  “I commend the victims for taking action and coming forward to work with law enforcement to bring a violent and dangerous man to justice.”

As proven at trial, the defendant attempted to traffic and kidnap two women in Suffolk County.  In October 2018, the defendant lured a sex worker who was addicted to heroin into his car in Mastic, New York.  When the victim refused to accompany him to a secluded location on the beach, the defendant became enraged and threatened her life.  He tried to trap her inside his car by speeding, locking the doors and grabbing her neck.  The victim managed to escape by jumping from his moving vehicle, suffering injuries to her back when she struck the pavement.  The defendant later tracked down his victim sleeping inside of a friend’s parked car at a Long Island Railroad station.  Armed with a knife, the defendant tried to remove the victim from the car, but her friend sped away.  The defendant chased after them in his car, but the victim once again managed to escape. 

In July 2019, the defendant attempted to take a second sex worker to a secluded wooded area in Coram, New York.  When she refused, the defendant became enraged, screamed that he “owned” her and tried to prevent her from leaving by grabbing her as he was driving.  The defendant’s second victim also escaped by jumping out of his moving car, suffering injuries to her knee.   

At the time of the defendant’s arrest in November 2019, law enforcement officers searched the defendant’s car and found multiple sets of handcuffs, as well as knives, rope and other items that he could use for restraint.  The defendant had installed a device in his car which allowed him to conceal his license plate with the push of a button.  Additionally, law enforcement officers recovered a Glock 23 handgun and ammunition located in a safe inside of the defendant’s home.  Because the defendant was a convicted felon and was not legally permitted to possess a firearm, he pressured his son to obtain a pistol permit to conceal that he was the true owner of the firearm. 

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Oren Gleich, Ivory L. Bishop, Jr., Justina Geraci and Christopher Caffarone are in charge of the prosecution with the assistance of paralegal Dejah Turla. 

The Defendant:

ANDREW FREY
Age:  57
Coram, New York

E.D.N.Y. Docket No. 19-CR-537 (S-2) (JMA)

Earlier today, in federal court in Brooklyn, Craig Josephberg, a former registered broker who worked at multiple brokerage firms in New York, New York, was sentenced by United States District Judge Eric N. Vitaliano to 36 months imprisonment, to be followed by three years’ supervised release, for orchestrating a multi-million-dollar market manipulation scheme.  Josephberg was also ordered to pay more than $16 million in restitution and $706,052 in forfeiture.  Josephberg pleaded guilty to the charges set forth in a superseding indictment in March 2018, including two counts of securities and wire fraud conspiracy, two counts of securities fraud, and one count of wire fraud relating to his manipulation of stocks of multiple microcap or “penny” stocks, including the stock of CodeSmart Holding, Inc. (CodeSmart), Cubed, Inc. (Cubed), and others, (collectively the “Manipulated Public Companies”).

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

“Josephberg abused his position as a registered broker to victimize both his customers and the investing public through an expansive fraud scheme to manipulate the stock price of multiple companies for his own financial benefit,” stated United States Attorney Peace. “This prosecution and sentence shows that licensed professionals will be held to account when they deceive their customers and harm investors.” 

Mr. Peace expressed his thanks to the Federal Bureau of Investigation, New York Field Office (FBI), and the United States Securities and Exchange Commission, New York Regional Office, for their invaluable efforts in the case. 

The evidence at the trial of his co-conspirator Abraxas Discala established that Josephberg and his co-defendants participated in two schemes to manipulate the stock price of CodeSmart and Cubed as part of an overarching conspiracy to commit securities, mail and wire fraud with respect to the Manipulated Public Companies.

Josephberg’s co-defendant Abraxas Discala purported to raise capital for private start-up companies and offered to take them public through reverse mergers with public shell companies in exchange for obtaining control of a large portion of the free trading or unrestricted stock.  Josephberg, Discala and their co-conspirators, including co-defendants Ira Shapiro, Marc Wexler, Matthew Bell, Victor Azrak, Darren Goodrich, Darren Ofsink and Michael Morris, then artificially inflated that stock through manipulative trading and promotional campaigns, generating large profits for themselves at the expense of unwitting investors.  Josephberg, a registered investment advisor, sold inflated shares in the Manipulated Public Companies to his clients, ultimately leaving them with worthless shares while he made approximately $700,000 in trading profits, as well as additional commission income.

1. The CodeSmart Scheme

In early May 2013, Discala and his co-conspirators engineered a reverse merger of CodeSmart, a private company, with a shell public company.  After gaining control of CodeSmart’s unrestricted shares, Discala and his co-conspirators on two occasions, fraudulently inflated CodeSmart’s share price and trading volume and then sold the unrestricted CodeSmart stock at a profit when the share price reached desirable levels.  Shapiro, the Chief Executive Officer of CodeSmart, issued numerous press releases, including press releases with false information to facilitate inflating CodeSmart’s stock price.  The defendants fraudulently manipulated CodeSmart’s stock price from $1.77 to a high of $6.94 on July 12, 2013, leading to an inflated market capitalization of over $85 million. 

The co-conspirators, including Josephberg, profited by selling CodeSmart stock, issued to them at pennies, to their clients and customers.  On some occasions, Josephberg had his customers buy CodeSmart shares without his customers’ knowledge and consent.  Additionally, Josephberg sold CodeSmart shares in his personal trading accounts at the same time that he purchased CodeSmart stock in his customers’ accounts.

Josephberg, Discala, Wexler, Bell, Ofsink and Morris made more than $6 million in illicit trading profits from the CodeSmart scheme, and the co-conspirators caused more than $12.5 million in losses to approximately 900 CodeSmart investors who purchased the publicly traded stock.

1. The Cubed Scheme

In March 2014, Discala and his co-conspirators took Cubed public through an asset purchase agreement by a shell public company.  After gaining control of all of Cubed’s unrestricted shares, between April 22, 2014 and April 30, 2014, Discala and his co-defendants, including Josephberg, Wexler, Bell, Goodrich and Azrak, fraudulently created trading volume in Cubed stock by purchasing more than 50% of the total number of Cubed shares purchased during this period.   The defendants also were able to successfully control the price and volume of Cubed’s stock.  Josephberg both purchased and placed bids on Cubed stock at specific prices to help manipulate the stock price and create the appearance of false demand.  On June 23, 2014, Cubed reached its highest closing price of $6.75 per share, resulting in a market capitalization of approximately $200 million.  Investors who bought publicly traded Cubed stock lost over $400,000.  In addition, Cubed was able to raise over $2 million in a private offering of stock to investors who were deceived by how Cubed stock was performing in the market.  Discala and Wexler also made over $1 million worth of illegal private sales of Cubed stock to over three dozen investors.  Discala and his co-conspirators caused more than $4 million in total losses to approximately 100 Cubed investors.

***

Discala, who was convicted after a trial, was previously sentenced to 138 months imprisonment and ordered to pay $16,346,023 in restitution.  The remaining convicted defendants entered guilty pleas.  Shapiro was previously sentenced to 21 months imprisonment and ordered to pay $12,557,553 in restitution, Goodrich was previously sentenced to 41-months imprisonment and ordered to pay $479,007.05 in restitution, and Morris was sentenced 6 months imprisonment and ordered to pay $112,575. 35 in resitution.  Wexler, Bell, Azrak, and Ofsink are awaiting sentencing.

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 Business and Securities Fraud Section.  Assistant United States Attorney Shannon C. Jones is in charge of the prosecution.  Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

CRAIG JOSEPHBERG  
Age:  49
New York, NY

E.D.N.Y. Docket No. 14-CR-399 (S-1)(ENV)

Earlier today, in federal court in Brooklyn, Dzenan Camovic was sentenced by United States District Judge Rachel P. Kovner to 30 years in prison for the robbery of a New York City Police Department (NYPD) officer’s firearm and discharging that firearm at several NYPD officers during the course of the robbery.  Camovic, who was inspired by terrorism, is a Bosnian citizen illegally in the United States.  He will be deported after completing his sentence.  He is also scheduled to be sentenced in state court in Brooklyn today to state charges arising out of the same conduct. 

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 Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Today’s 30-year sentence, along with Camovic’s removal from the United States, guarantees the community will be protected from his hate-filled ideology and actions,” stated United States Attorney Peace.  “We will never stop working to protect the safety of our brave law enforcement officers and community from those who would do them harm.”

Mr. Peace expressed his appreciation to the FBI’s New York Joint Terrorism Task Force for its outstanding work on the case and the Kings County District Attorney’s Office for their assistance.

“As today's sentence demonstrates, those who direct hate-fueled violence at anyone - including the brave men and women of law enforcement - will face stiff consequences in our criminal justice system.   Along with our partners on the Joint Terrorism Task Force, we remain steadfast in our determination to protect our city and our Nation from terrorists and their violent extremist ideology,” stated FBI Assistant Director-in-Charge Driscoll. 

“An attack against New York City police officers is an attack against our city and way of life – and today’s sentencing of Dzenan Camovic sends a clear message that such violence will never be tolerated,” said Police Commissioner Sewell. “Our NYPD family is thankful our brave officers survived this premeditated ambush. I commend our NYPD investigators, our partners in the FBI’s New York Joint Terrorism Task Force, and the prosecutors in the United States Attorney’s Office in the Eastern District of New York, for their work in this case. Together, we will never stop working to protect our city.”

As set forth in court filings and during the plea and sentencing proceedings, on the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, Camovic attacked several uniformed NYPD officers assigned to post near the intersection of Flatbush and Church Avenues in Brooklyn, New York.    At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (Officer 1) in the neck with a knife.  After stabbing Officer 1, Camovic chased the second officer (Officer 2), lunging at him and attempting to stab him.  Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who responded to the scene.  Responding officers ultimately shot Camovic and took him into custody.  Several officers suffered injuries during Camovic’s attack and robbery, including Officer 1, who was stabbed in the neck, and Officer 2, who was shot in the hand and lost a finger as a result.  A third officer also sustained a gunshot wound to the hand.

During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of jihadist terror attacks during the commission of violent attacks.  Prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.

During the sentencing proceeding, and as stipulated in Camovic’s plea agreement, Judge Kovner found that the terrorism enhancement to the United States Sentencing Guidelines—an enhanced sentence for certain criminal conduct that was calculated to influence or affect the conduct of government by intimidation or coercion—is applicable to his offense.    

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.

The Defendant:

DZENAN CAMOVIC
Age:  22
Brooklyn, New York

E.D.N.Y. Docket No.  20-CR-326 (RPK)

Earlier today, in federal court in Brooklyn, New York City correction officer Krystle Burrell pleaded guilty to bribery, admitting that she accepted nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island.  On August 16, 2022, New York City correction officer Katrina Patterson pleaded guilty to bribery, admitting that she accepted more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island.  Burrell and Patterson are employed by the New York City Department of Corrections (DOC).  Burrell’s proceeding was held before United States District Judge Kiyo A. Matsumoto, and Patterson’s proceeding was held before United States District Judge Carol Bagley Amon.

Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.

“The defendants threw in their lot with Bloods gang members and betrayed their sworn duty to maintain the safety of incarcerated individuals and other correction officers at Rikers Island by smuggling cell phones and drugs into the jail,” stated United States Attorney Peace.  “This Office and our law enforcement partners are committed to rooting out corruption at Rikers Island.” 

DOI Commissioner Jocelyn E. Strauber said, "These two Correction Officers took bribes in return for smuggling contraband to inmates, crimes that risked the safety and security of the jails and willfully circumvented Correction Department regulations.  These violations of their duty carry serious consequences, including termination from their City employment.  DOI and our law enforcement partners will continue to target contraband smuggling and other misconduct that destabilizes the City’s jails.”

“When correction officers betray their oath to serve and protect, the public is put at risk and the entire law enforcement community is tarnished,” stated NYPD Commissioner Sewell. “We have zero tolerance for such misconduct. With today’s guilty plea, Ms. Burrell joins Ms. Patterson in publicly acknowledging that their actions were immoral, unethical, and without integrity – diametrically opposed to the core requirements of our profession. I commend all of our partners for their dedication to uncovering and eradicating corruption in all of its forms.”

“These officers were tempted by greed to betray their duty.  By taking bribes to smuggle prohibited contraband to incarcerated known gang members, they violated the oath they swore and became criminals themselves,” said HSI New York Acting Special Agent in Charge Patel.  “HSI is committed to making our communities safer by disrupting gang activity wherever it occurs, whether on the streets or in prisons.”

According to court documents and facts presented at the guilty plea proceedings, Patterson accepted at least $34,090 in bribes from co-conspirators on behalf of co-defendant Michael Ross in exchange for Patterson smuggling contraband into the Robert N. Davoren Center on Rikers Island for Ross.  Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson.  DOC personnel subsequently located narcotics and cell phones in Ross’s cell.  Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.” 

Burrell accepted bribes in exchange for smuggling contraband into the Anna M. Kross Center on Rikers Island for co-defendant Terrae Hinds, facilitating Hinds’ contraband smuggling business and permitting Hinds and others to violate DOC regulations.  Hinds, who was incarcerated on unrelated offenses, arranged for approximately $9,780 in bribe payments to be sent to Burrell.  In exchange, Burrell smuggled at least two unauthorized cell phones to Hinds, and also facilitated Hinds’ sale of narcotics and other contraband items at the Anna M. Kross Center.

When sentenced, Burrell faces up to 10 years’ imprisonment and Patterson faces up to five years’ imprisonment.  Ross, who is a Bloods gang member, has also pleaded guilty to a bribery offense and is awaiting sentencing. Charges against Hinds remain pending.

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 Attorney Philip Pilmar.

The Defendants:

KATRINA PATTERSON
Age:  31
Jamaica, New York

E.D.N.Y. Docket No. 22-CR-196 (CBA)

KRYSTLE BURRELL
Age:  35
Lawrence, New York

E.D.N.Y. Docket No. 22-CR-195 (KAM)

A superseding indictment was unsealed today in federal court in Brooklyn charging 26 defendants, including nine members and associates of the violent New York City-based street gang known as the “Bully Gang” with various offenses, including racketeering, murder, drug trafficking, money laundering, and firearms offenses.  The superseding indictment includes new charges against the following members and associates of the Bully Gang for three murders and one attempted murder in Brooklyn, New York and Queens, New York committed in 2018 and 2020:

• Derrick Ayers, also known as “Dee” is charged with the March 3, 2018 murder of Jonathan Jackson in Brooklyn.

• Franklin Gillespie, also known as “Spazz” and “Frankie Gino,” is charged with the April 11, 2020 murder of Paul Hoilett in Brooklyn.

• Gillespie and Anthony Kennedy, also known as “Biggie,” are charged with the April 15, 2020 murder of Mike Hawley in Queens.

• Demetrius Johnson, also known as “Q,” is charged with the July 18, 2020 attempted murder of a victim in Brooklyn.

The superseding indictment also charged four new defendants, Tiri Brown, also known as “Tyhoe,” Courtney Foster, also known as “Biga,” Avery Goodluck, also known as “Ave,” and Johnson, with narcotics trafficking charges for their role in a scheme to traffic narcotics between New York and Maine. 

Ayers, Gillespie, and Kennedy were previously in custody on the underlying indictment.  Defendants Brown, Foster, Goodluck, and Johnson were arrested today and will be arraigned this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak. 

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), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the new charges.

“As demonstrated by the superseding indictment, the dismantling of the Bully Gang is continuing with its members being held accountable for the cold-blooded murders, mayhem, and narcotics trafficking they unleashed upon the district,” stated United States Attorney Peace.  “Reducing gun violence is a high priority for this Office and I commend our prosecutors and law enforcement partners for their relentless efforts to do justice to make our communities safer.”

“This superseding indictment shows the relentless efforts of federal, state, and local partners to hold violent criminals accountable,” ATF Special Agent in Charge DeVito said.  “I commend the hard work of the ATF Joint Firearms Task Force, NYPD, NYC Department of Investigation and the U.S. Attorney’s Office for leaving no stone unturned to charge those who commit senseless acts of violence in the name of loyalty to their gang. ATF’s commitment to protecting the public from violent offenders in collaboration with our partners is unwavering.” 

“Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, are among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner Sewell. “By focusing on the relatively small number of people responsible for much of the crime and disorder in New York City and beyond, we remain relentless in our efforts to identify and arrest anyone who involves themselves in such senseless acts.”

DOI Commissioner Jocelyn E. Strauber said, "Gang violence and drug trafficking jeopardize communities within and beyond New York City.  DOI and our law enforcement partners are committed to hold accountable those who engage in this very serious criminal conduct.  DOI was pleased to assist the United States Attorney's Office for the Eastern District of New York and our other law enforcement partners on this important investigation."

As set forth in the superseding indictment and other court filings, members and associates of the Bully Gang used force and violence to promote its power, terrorize communities in multiple states and enrich themselves and their members.  Their members engaged acts of violence including murder, attempted murder, armed robbery, and arson.  The superseding indictment adds charges stemming from the gang’s years-long use of violence and brutality to target its enemies.  As alleged, on August 21, 2017, Bermon Clarke, a leader in one of the charged narcotics conspiracies, set fire to a house in Blaine, Maine with at least two occupants inside.  The March 3, 2018 murder of Jonathan Jackson alleged in the indictment was the culmination of an exchange of gunfire that followed a “gender reveal” party in Brooklyn, New York.  As alleged, during a foot chase along Kings Highway, Ayers repeatedly fired on Jackson at close range.  The murders of Hoilett and Hawley occurred just days apart in April 2020.  As alleged, Gillespie targeted Hoilett, approaching him from behind and firing at the back of Hoilett’s head at point-blank range.  Four days later, Gillespie and Kennedy allegedly lured Hawley to a meeting place in Far Rockaway where Hawley was shot and killed.

As alleged, the Enterprise and its co-conspirators also operated a years-long, sophisticated drug trafficking network responsible for trafficking large quantities of dangerous drugs like cocaine base (“crack”), heroin and fentanyl through New York to Maine, and elsewhere.  The enterprise’s drug proceeds were collected on a regular basis and laundered through financial transactions and the purchase of high-value assets, including jewelry and cars.  During the investigation, law enforcement seized more than $380,000 in cash, more than 15 firearms, six kilograms of cocaine, 600 grams of fentanyl, multiple luxury watches, and four vehicles with concealed “trap” compartments installed.

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

To date, 53 defendants have been charged as part of the prosecution with 27 pleading guilty.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow, Lindsey R. Oken, and Joy Lurinsky are in charge of the prosecution.   

New Defendants:

TIRI BROWN
Age: 37
Brooklyn, New York

COURTNEY FOSTER
Age: 28
Brooklyn, New York

AVERY GOODLUCK
Age: 32
Brooklyn, New York

DEMETRIUS JOHNSON
Age: 26
Brooklyn, New York

Defendants Previously Indicted:

JESSICA ALMEIDA
Age: 33
Detroit, Maine

KASSIN APPLING (also known as “Killa” and “Kassim”)
Age: 34
Brooklyn, New York

DERRICK AYERS (also known as “Dee” and “Mel”)
Age: 34
Rahway, New Jersey

TYRONE BANKS (also known as “Ty Hitta”)
Age: 23
Brooklyn, New York

JANET BLOOD
Age: 47
Troy, Maine

DAYVON BOSTICK-SAMUELS (also known as “Daytoe”)
Age:  22
Brooklyn, New York

JOHNNY CHILES
Age: 36
Brooklyn, New York

BERMON CLARKE (also known as “G” and “Blue”)
Age: 28
Rahway, New Jersey

MIKE GUSTAVO CONNOR (also known as “Gus”)
Age:  21
Brooklyn, New York

RASHAAD CRAIG (also known as “Skeeno”)
Age:  25
Brooklyn, New York

RONALD DAVIS (also known as “Ronno”)
Age: 29
Brooklyn, New York

QUINTEN DELVALLE (also known as “Q”)
Age:  24
Brooklyn, New York

ELIZABETH DUECASTER
Age: 35
Searsport, Maine

BRITTANY DUNCAN
Age: 26
Bayonne, New Jersey

NEHEMIE ERIL (also known as “Poca”)
Age: 24
Orange, New Jersey

CHRISTINA ESTEVEZ
Age: 31
Queens, New York

LARON ESTRADA (also known as “Yetta”)
Age: 27
Brooklyn, New York

ERICA FAGGIOLE
Age: 44
Maine

ANTONIO FULTON (also known as “Tone”)
Age: 23
Brooklyn, New York

FRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 30
Newark, New Jersey

ROMEO GONZALES
Age:  22
Brooklyn, New York

NIA GOVAN (also known as “Cam” and “V”)
Age: 29
Boston, Massachusetts

KEON GRANT (also known as “Keys”)
Age: 34
Brooklyn, New York

MOELEEK HARRELL (also known as “Moe Money”)
Age: 31
Brooklyn, New York

PAUL HARRIS (also known as “Baldhead”)
Age: 31
Brooklyn, New York

NADINE HEATH
Age:  54
Troy, Maine

ROBERT HOLT (also known as “Ricky” and “Ghost”)
Age: 33
Brooklyn, New York

AMANDA HUARD
Age: 38
Raymond, Maine

LATRELL JOHNSON (also known as “Barlie Buckz”)
Age: 27
Brooklyn, New York

ANTHONY KENNEDY (also known as “Biggie”)
Age: 34
Queens, New York

TYQUAWN LANE (also known as “Bicks” and “Tah Tah”)
Age: 27
Brooklyn, New York

JOANNE LYDEM
Age:  49
Garland, Maine

DARIUS MURPHY
Age:  24
Brooklyn, New York

JESSICA PELKEY
Age: 26
Presque Isle, Maine

CHRISHAWN PENN (also known as “Prince”)
Age: 26
Brooklyn, New York

MICHAEL PEREZ (also known as “White Mike”)
Age: 29
Brooklyn, New York

JOELLE POCHE (also known as “Rico”)
Age: 21
Brooklyn, New York

TERRELL RATLIFF (also known as “Rello”)
Age: 29
Brooklyn, New York

MICHAEL REID (also known as “Half”)
Age:  39
Brooklyn, New York

ISAIAH TERRY SANDIFORD
Age: 21
Brooklyn, New York

JAMEL SMITH
Age: 23
Bronx, New York

CHINASA STRACHAN
Age:  33
Brooklyn, New York

NICOLETTE TOMPKINS
Age: 22
Westfield, Maine

AMANDA WALTON (also known as “A”)
Age: 32
Portland, Maine

DANIELLE WHITE
Age:  47
Swanville, Maine

E.D.N.Y. Docket No. 20-CR-239 (S-8) (BMC)

Earlier today, in federal court in Brooklyn, Rogelio Vega pleaded guilty to three counts of enticing a child to engage in sexual conduct.  Today’s proceeding was held before United States Magistrate Judge Sanket J. Bulsara.  When sentenced, Vega faces a statutory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment. 

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 guilty plea. 

“The defendant’s use of the internet, including apps targeted to children, to sexually exploit minors is reprehensible,” stated United States Attorney Peace.  “Protecting children from online predators will always be a priority of this office.”

“These were not just poor decisions on Mr. Vega’s part, they were calculated, despicable wrongs,” stated NYPD Commissioner Sewell.  “Today’s guilty plea holds him responsible for his actions and prevents him from causing any additional harm. And he will forever be branded as a predator who used the internet to prey on underage victims for his own sexual gratification.”

As set forth in court filings, between approximately 2015 and January 2021, the defendant used the Kik Internet messaging application, which is marketed to teens, and the Grindr application, which is marketed to the LGBTQ population, to express his interest in “young guys” and coerce and entice three male victims between the ages of 14 and 16 to meet him for sexual acts.  A review of messages found on the defendant’s cell phones revealed a series of messages in which the victims identified themselves as underage and the defendant arranged to meet them for sexual encounters in his car or at motels. 

Department of Justice Trial Attorney Patrick J. Campbell is in charge of the prosecution.   

The Defendant:

ROGELIO VEGA
Age: 52
Maspeth, New York

E.D.N.Y. Docket No. 21-CR-563 (EK)

오늘 아침 브루클린 연방 법원 판결에서 존 원(John Won)은 2021년 11월의 증권 사기, 텔레뱅킹 사기 및 자금 세탁 등의 공모뿐만 아니라 실질적인 증권 사기를 포함한 모든 범죄 행위에 대한 유죄 선고 판정을 받은 후, 지역 담당 판사인 레이먼드 J. 디어리에 의해 1년 1일 징역형을 받았다. 피고 원씨는 자기 범죄의 희생자에 대해서 $842,000 이상의 금액을 반환하라는 판결도 받았다. 피고 원씨의 공동 피고인인 태형(Tae Hung, 케빈) 강씨는 증권 사기에 공모한 죄를 인정하여, 2021년 12월에 2년의 징역형을 받았다.   

뉴욕 동부 지역 담당 연방 변호사인 브리언 피스와 미국 연방 수사국(FBI) 뉴욕 지사 부국장인 마이클 J. 드리스콜이 판결문을 발표했다. 

“존 원과 케빈 강은 파렴치하게도 우리 한인 사회 일원을 상대로 사기 행각을 해서 그들이 저축한 돈과 노후 자금을 갈취하였습니다.”라고 변호사 피어스는 말했다. “이 형벌은 사기꾼과 협잡꾼이 자기의 무고한 희생자들에게 사기를 치면 받게 될 대가를 보여주고 있습니다. 그들은 반드시 체포되어, 형을 받고, 자신이 획득한 부당한 이익을 반환하도록 명령받을 것입니다.”라고 언급했다.

Mr. 피스는 이 사건 해결을 위해 적극적으로 협조한 미국 상품 및 선물 거래 위원회(CFTC)와 미국 선물 협회(NFA)에 대해 감사의 표시를 하였다.

2010년 10월과 2013년 12월 사이에 피고 원씨는 자기의 공동 피고인 태형 강씨 등과 공모하여 희생자의 대부분인 뉴욕 한인사회 일원을 상대로 외환 거래 계정 및 자기들이 차린 회사인 ForexNPower에 투자하도록 사기 행각을 벌였다. 사기 활동이 진행되면서 이들 공모자는 한국어 신문과 라디오 방송에 ForexNPower에서 손실 위험이 전혀 없이 월 10%의 수익을 보장하는 외환 거래에 사용되는 비법 알고리즘을 개발하였다고 선전하였다. 하지만, 실제로는 ForexNPower는 성공적인 거래 방법이 있지 않았기 때문에 그들의 고객은 막대한 금전적 손실을 보게 되었다.

공모자들은 또한 투자금이 자신들의 회사가 뉴저지의 새로운 장소로 확장하거나 외환 거래에 투자 및 사용될 예정이라고 거짓으로 주장하면서 ForexNPower 주식을 구매하도록 유인하기도 하였다. 하지만, 실제는 피고와 그 공모자들이 자금 대부분을 전용하였으며, 일부 나머지 금액은 위에 언급된 한국어 사기 광고에 사용하였다.

2022년 7월, Mr. 피스는 법무부 장관 자문위원회(AGAC)의 화이트칼라 사기 범죄 담당 분과 위원회 의장으로 선출되었다. 분과 위원회 의장으로서 Mr. 피스는 우편 사기 및 금융 사기, 은행 사기, 의료보험 사기, 세금 사기, 증권 및 물품 사기, 그리고 신원 정보 도용, 등을 포함한 다양한 금전 갈취 목적의 비폭력적 범죄의 예방, 조사 및 기소 활동을 AGAC에 추천하는 데 있어 중추적인 역할을 할 것이다.   

정부의 케이스는 비즈니스 및 증권 사기 부서에서 담당하고 있다. 법무부 사기 전담 부서의 연방 부 변호사인 사라 M. 에번스, 니콜라스 J. 모스코 및 부국장인 제럴드 M. 무디 Jr.가 기소 담당자들이다.

피고 명단:

존 원(JOHN WON)
나이: 53세
뉴욕 화이트스톤 거주

태형 강(TAE HUNG KANG) (일명, 케빈 강)
나이: 57
뉴욕 베이사이드 거주

E.D.N.Y. 적요서 번호 18-CR-184 (RJD)

Earlier today, in federal court in Brooklyn, John Won was sentenced by United States District Judge Raymond J. Dearie to a year and a day in prison following his November 2021 conviction at trial on all counts, including securities fraud, wire fraud and money laundering conspiracy, as well as substantive securities fraud.  Won was also ordered to pay $842,076.81 in restitution to the victims of his crimes.  Won’s do-defendant Tae Hung (Kevin) Kang pleaded guilty to securities fraud conspiracy and was sentenced to two years’ imprisonment in December 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 verdict. 

“John Won and Kevin Kang shamelessly defrauded members of the Korean-American community in our district out of their nest eggs and life savings,” said United States Attorney Peace.  “This sentence shows what fraudsters and con men should expect when they target innocent victims—they will be caught, punished and ordered to return their ill-gotten gains.” 

Mr. Peace thanked the United States Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.

Between October 2010 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower.  In furtherance of this scheme, the conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10% monthly returns at no risk of loss.  In reality, ForexNPower had no successful trading method and their customer accounts suffered substantial losses.

The conspirators also induced investors to purchase stock issued by ForexNPower, by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies.  In truth, the defendant and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements described above. 

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 Business and Securities Fraud Section.  Assistant United States Attorneys Sarah M. Evans, Nicholas J. Moscow and Assistant Chief Gerald M. Moody, Jr. of the Department of Justice’s Fraud Section are in charge of the prosecution.  

The Defendants:

JOHN WON
Age: 53
Whitestone, New York

TAE HUNG KANG (also known as Kevin Kang)
Age: 57
Bayside, New York

E.D.N.Y. Docket No. 18-CR-184 (RJD)

Earlier today, in federal court in Central Islip, Reynaldo Lopez-Alvarado, also known as “Mente,” a member of the Brentwood Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the November 19, 2015 murder of Cesar Rivera-Vasquez, an attempted murder that occurred on April 9, 2013 in Bay Shore, and conspiracy to commit obstruction of justice.  The proceeding was held before United States Magistrate Judge Steven I. Locke.  When sentenced, Lopez-Alvarado faces up to life in prison.

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 guilty plea.

“In a twisted desire to enhance his status within the MS-13 gang and without any regard for human life, the defendant admittedly participated in extremely violent crimes, including murder and a shooting,” stated United States Attorney Peace. “Lopez-Alvarado faces very serious consequences for his senseless actions which I hope will be of some relief to the community, including the family and friends of his victims.  This Office, together with the Long Island Gang Task Force, is working tirelessly to bring MS-13 gang members to justice for the havoc they have wrought on Long Island.”

“This case is a grim reminder of the inhumane acts individuals are willing to commit just to elevate their status within a gang,” stated SCPD Commissioner Harrison. “Let this guilty plea be a testament of our commitment to hold gang members accountable for their heinous crimes. We will continue to work with our law enforcement partners to ensure public safety on our streets.”

According to court filings and statements by the defendant at the guilty plea proceeding, Lopez-Alvarado participated in the April 9, 2013 attempted murder of a man on Benton Place in Bay Shore.  Lopez-Alvarado, who was a new member of the MS-13 at the time, and another MS-13 member went out looking to kill a rival gang member in order for Lopez-Alvarado to gain full status in the gang.  When they observed a group of men who they assumed were members of the rival Bloods street gang, Lopez-Alvarado and his co-conspirator retrieved a .25 caliber handgun and 20-gauge shotgun, drove back to Benton Place, approached the group of men and opened fire.  One victim was struck and was subsequently transported to a local hospital, where he was treated and survived the shooting. 

Approximately one month after that, Lopez-Alvarado conspired to obstruct justice by assisting fellow gang members after they had committed two murders.  Specifically, on May 28, 2013, Lopez-Alvarado came to the aid of fellow gang members, who had just shot and killed Kennan Russell at a house party in Central Islip, when the minivan they had stolen and subsequently used in not only the Russell murder but also the May 26, 2013 murder of Derrick Mayes, ran out of gas and broke down.  In addition to helping his fellow gang members get gas and hide the firearms used in the Russell murder, Lopez-Alvarado and other MS-13 members, who had learned that the minivan had been linked to the murders, agreed to destroy it.  Lopez-Alvarado and his fellow MS-13 gang members then cleaned the minivan to remove any fingerprints, drove it to a wooded area in Ronkonkoma, doused it with gas, and set it on fire. 

In addition, Lopez-Alvarado admitted during his guilty plea to participating in the murder of Rivera-Vasquez on November 19, 2015, in Babylon.  Rivera-Vasquez was murdered by Lopez-Alvarado and other MS-13 members because the gang suspected him of belonging to a rival Mexican gang, Raza Loca.  On the night of the murder, Lopez-Alvarado and his co-conspirators saw Rivera-Vasquez at a deli located near the Babylon Long Island Railroad train station.  Lopez-Alvarado and the other MS-13 members convinced the victim to leave with them to smoke marijuana and brought him to an isolated area behind a nearby baseball field.  The gang members, who were armed with knives and a baseball bat, told the victim to take off his shirt so they could observe a tattoo they believed signified the victim’s membership in the rival gang.   After observing the tattoo, Lopez-Alvarado and the other MS-13 members attacked Rivera-Vasquez, beating him with the bat and stabbing him repeatedly with knives before one of the co-conspirators cut the victim’s throat.  The MS-13 members buried Rivera-Vasquez’s body near a large mound of dirt.  The body was discovered in April 2018. 

Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization 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’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision. 

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

The Defendant:

REYNALDO LOPEZ-ALVARADO
Age:  30
Brentwood, New York

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

Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Queens Hospital. The settlement agreement, which requires a payment of over $2.5 million, addresses allegations that a former physician at New York-Presbyterian/Queens performed services that were not medically necessary and then billed federal health care programs for those services. The services involved the replacement of implantable cardioverter defibrillator (ICD) pulse generator batteries.

“This more than $2.5 million settlement rectifies that New York-Presbyterian/Queens was paid by the federal government for unnecessary procedures,” stated United States Attorney Peace. “This Office is committed to combatting fraud and abuse of our federal health care programs, especially when such conduct potentially puts patients at risk.”

Procedure Overview

An ICD is akin to a pacemaker. It is placed under a patient’s skin and is designed to ensure that the patient’s heart beats on a regular rhythm. ICDs run on batteries. Like all batteries, ICD batteries will eventually fail, which could lead to disastrous consequences, even death. But replacing an ICD battery involves a surgical procedure, which carries risk. Physicians closely monitor the functioning of ICD batteries so that they replace the batteries when they are nearing the end of their lives, but no earlier. That way, physicians can balance the risks associated with a failing ICD battery against the risk of the procedure needed to replace that battery. Put in more technical terms, the standard of care is to replace an ICD battery only when it reaches what is called the elective replacement interval (ERI) as determined by device interrogation conducted by specially equipped computerized monitors.

Settlement

A physician who was formerly affiliated with New York-Presbyterian/Queens repeatedly replaced ICD batteries earlier than was necessary. That is, he repeatedly replaced ICD batteries before they reached the ERI. Such batteries were functioning normally. He therefore subjected his patients to unneeded and risky surgical procedures. New York-Presbyterian/Queens then submitted claims for payments to federal health care programs for these procedures.

As a result of an internal investigation, New York-Presbyterian/Queens learned of the physician’s conduct. It voluntarily self-disclosed that conduct to the United States Department of Health and Human Services, Office of Inspector General. The settlement here, which requires New York-Presbyterian/Queens to pay $2,588,882.50 to the United States, resolves claims that the conduct violated the federal False Claims Act.

The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging six defendants for their roles overseeing and operating a large-scale illegal, online gambling business under the protection of the Luchese organized crime family.  In operation for more than 15 years, the gambling business known as “Rhino Sports,” utilized an offshore website and dozens of bookmakers in the New York area to take millions in illegal sports bets. 

Four of the defendants, Luchese crime family solider Anthony Villani and associates Louis Tucci, Jr., Dennis Filizzola and James Coumoutsos, were arrested at their residences in the New York area, and are scheduled to be arraigned this afternoon by United States Magistrate Judge Roanne L. Mann.  A fifth defendant, bookmaker Michael Praino, was arrested in West Palm Beach, Florida and will make his initial appearance tomorrow morning in federal court in West Palm Beach, Florida.

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 charges. 

“As alleged, this conduct demonstrates how members of La Cosa Nostra continue to engage in illegal gambling operations and money laundering money-marking schemes that lead to threats of violence against anyone who stands in their way and has resulted in millions of dollars in profits to the Luchese crime family,” stated United States Attorney Peace. “These charges illustrate this Office’s continued commitment to rooting La Cosa Nostra out of New York.” 

Mr. Peace thanked the New York City Police Department, New York State Police, and the Westchester County Police for their assistance in the investigation.

"Members of the mafia are not giving up the tried and true methods of criminal behavior, even in the face of the burgeoning world of legal gambling. As we allege, a Luchese soldier and other family members ran an illegal gambling operation and offered their clientele the same twisted customer service: do what they say or face terrifying consequences. One thing these criminals can bet on - the FBI will continue our pursuit," stated Assistant Director-in-Charge Driscoll.

 As alleged in the indictment and court filings, defendant Anthony Villani, an alleged Luchese solider, oversaw a large-scale illegal gambling business called Rhino Sports (the “Gambling Business”).  The Gambling Business was in continuous operation from at least 2004 through December 2020.  During that period, the Gambling Business was hosted online using offshore servers in Costa Rica and employed local bookmakers to pay and collect winnings in cash.  Records obtained from the Gambling Business’s website indicated that Villani’s illegal gambling operation regularly took bets from between 400 and 1,300 bettors each week, most of whom were based in New York City and the metropolitan area.  As alleged, Villani’s bookmakers regularly included members and associates of the Luchese crime family and other La Cosa Nostra families.  As part of the scheme, Villani employed co-conspirators Louis Tucci, Jr. and Dennis Filizzola, as runners to assist in operating the business. Villani is alleged to have received more than $1 million annually from the business.  During law enforcement searches related to this matter in December 2020, agents recovered over $407,000 in cash from one of Villani’s residences, as well as brass knuckles and gambling ledgers.

The unsealed indictment charges Villani with racketeering in connection with participation in various criminal schemes, including illegal gambling, money laundering and attempted extortion.  As one part of the money laundering, Villani and co-defendant Filizzola used gambling proceeds to purchase U.S. Postal Service money orders disguised as rent payments to a property owned by Villani.  Further, between April 2020 and October 2020, Villani is alleged to have attempted to extort an individual identified as John Doe in the indictment, including by telling John Doe: “I’m telling you right now, you don’t get this money – [expletive] run away.” 

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys James P. McDonald and Antoinette N. Rangel are in charge of the prosecution.  Assistant United States Attorney Claire S. Kedeshian is handling forfeiture in this case.

The Defendants:

ANTHONY VILLANI
Age:  57
Elmsford, NY

JAMES COUMOUTSOS (also known as “Quick”)
Age:  59
Bronx, NY

DENNIS FILIZZOLA
Age:  58
Cortlandt Manor, NY

MICHAEL PRAINO (also known as “Platinum”)
Age:  44
Bronx, NY

LOUIS TUCCI, JR. (also known as “Tooch”)
Age:  59
Tuckahoe, NY

Earlier today, at the federal courthouse in Central Islip, United States District Judge Gary R. Brown sentenced Donta Riddick to 198 months in prison for possessing and distributing heroin and fentanyl.  As part of his guilty plea, Riddick also admitted to the distribution of heroin and fentanyl on September 13, 2020 that caused the death of a 21-year old woman from Massapequa, New York.  Riddick pleaded guilty on January 28, 2022.

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

“Today’s sentencing is justice served for the trauma that the defendant directly caused to our district, including the death of his young neighbor,” stated United States Attorney Peace. “This Office, together with our federal and local partners, works tirelessly to hold accountable those who deal deadly drugs and contribute to the opioid epidemic’s devastating impact on our communities.”

DEA Special Agent in Charge Frank Tarentino said, “Drug investigations like this underscore the devastating impact that every drug overdose and poisoning has on a family. Fentanyl is the deadliest drug to ever hit our streets and responsible for nearly 70% of nationwide drug-related deaths.  DEA and our law enforcement partners are doubling down on defeating drug trafficking networks and bringing to justice those responsible for taking lives.” 

“The sentencing of defendant Donta Riddick to 16.5 years in prison will hopefully bring some closure for the victim’s family, as this drug dealer will not be back on the streets of Nassau County.  The defendant was found guilty of dealing drugs laced with fentanyl to our residents and caused the death of a 21-year-old female victim from Massapequa.  Defendant Riddick infected our neighborhoods with these illegal drugs until his arrest, conviction and sentencing and I would like extend my appreciation to the investigators and their agencies for a job well done.  The Nassau County Police Department is committed to enforcing all drug related crimes and will continue to offer assistance to those addicted to drugs,” stated Nassau County Police Department Commissioner Ryder.

According to court filings and statements made by the defendant at the guilty plea proceeding, on the night of September 13, 2020, Riddick sold fentanyl-laced heroin to the victim, who suffered a fatal overdose at a motel in Massapequa the following morning. A review of the victim’s cell phone by law enforcement revealed text messages she exchanged with Riddick in which she appeared to be ordering heroin from the defendant. On September 15, 2020, during the subsequent investigation by the DEA and NCPD, Riddick was arrested in possession of street-level quantities of the same fentanyl-laced heroin that had caused the death of the victim the day before.

At Riddick’s sentencing, the victim’s aunt spoke and described the traumatic impact of losing her niece to an overdose.

The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Samantha Alessi are in charge of the prosecution, with assistance from Paralegal Dejah Turla.

The Defendant:

DONTA RIDDICK
Age: 35
West Babylon, New York

E.D.N.Y. Docket Nos. 20-CR-517 (S-1) (GRB)

Earlier today, in federal court in Brooklyn, Hanan Ofer pleaded guilty to failing to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act, as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union. Today’s proceeding took place before United States Magistrate Judge Ramon E. Reyes, Jr.  When sentenced, Ofer faces up to 10 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Kenneth Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Rick J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.

“Ofer willfully disregarded provisions of the Bank Secrecy Act that are designed to prevent money laundering and the use of our financial system for criminal ends.  This Office will vigorously enforce those laws to ensure the integrity of the U.S. financial system,” stated United States Attorney Peace.  “With his admissions today, the defendant will be held responsible for exposing financial institutions to the risk of illicit activity.”

“Ofer’s failure to implement anti-money laundering practices as required by the Bank Secrecy Act (BSA) exposed Financial Institutions to the likelihood of high-risk transactions which ultimately led to the processing of billions in bulk cash from Mexican-based banks without proper oversight,” stated HSI Acting Special Agent-in- Charge Patel.  “Money laundering is a vital component of transnational criminal organizations wishing to legitimize their ill-gotten gains and ensuring the compliance of BSA regulations is the first step to fighting these organizations.  HSI is a leader in financial crimes investigations and will continue to seek the prosecution of those who attempt to circumvent the law for quick financial gains.”

According to court filings, from 2014 to 2016, Ofer operated the New York State Employees Federal Credit Union Services Organization (NYSEFCU-CUSO), a money services business that was required to have an effective anti-money laundering program.  Through the NYSEFCU-CUSO and other entities, Ofer participated in a scheme that brought over $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a Mexican bank, to the New York State Employees Federal Credit Union (NYSEFCU). 

Ofer was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and the NYSEFCU-CUSO would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.  Instead, Ofer failed to implement an effective anti-money laundering program at the NYSEFCU-CUSO.  This failure caused the NYSEFCU to process high-risk transactions, including from Mexican banks, without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.

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 International Narcotics and Money Laundering Section, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act.  Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section.  The investigation is being conducted by HSI’s El Dorado Task Force in New York.

The Defendant:

HANAN OFER
Age:  69
New York, New York

E.D.N.Y. Docket No. 21-CR-174 (DG)

A New York man pleaded guilty today in the Eastern District of New York to failure to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union.

According to court documents, from 2014 to 2016, Hanan Ofer, 69, of New York City, operated the New York State Employees Federal Credit Union Service Organization (NYSEFCU-CUSO), a money services business that was required to have an effective anti-money laundering program. Through the NYSEFCU-CUSO and other entities, Ofer participated in a scheme that brought more than $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a Mexican bank, to the New York State Employees Federal Credit Union (NYSEFCU). 

Ofer was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and his businesses would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act. Instead, Ofer willfully failed to implement an effective anti-money laundering program at the NYSEFCU-CUSO. This failure caused the NYSEFCU to process the high-risk transactions without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.

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, and Acting Special Agent in Charge Ricky J. Patel of Homeland Security Investigations (HSI) New York made the announcement.

HSI New York investigated the case.

Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Ryan C. Harris and Francisco J. Navarro for the Eastern District of New York are prosecuting the case.

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

Viktor Zelinger, also known as “Vitya” and “Vityok,” the alleged leader of an Eastern European organized crime syndicate that operated in the Brighton Beach, Sheepshead Bay and Coney Island neighborhoods of Brooklyn and was linked to high-level Russian mafia members known as “Thieves in Law” or “Thieves,” was extradited today from Switzerland to the United States on a nine-count superseding indictment.  Zelinger is charged with racketeering, racketeering conspiracy, arson, arson conspiracy, illegal gambling, illegal gambling conspiracy, extortionate collection of credit and two counts of extortionate collection of credit conspiracy.  Zelinger, who is a naturalized U.S. citizen with dual Ukrainian citizenship, is scheduled to be arraigned tomorrow in federal court in Brooklyn before United States Magistrate Judge Peggy Kuo. 

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the extradition.   

“As alleged, Zelinger was a ruthless leader of a violent criminal syndicate that wreaked havoc throughout Brooklyn with seeming impunity, including an arson in the middle of the night that endangered civilians and firefighters.  Zelinger’s underlings were arrested by our law enforcement partners and prosecuted by this Office, and now he will learn the serious consequences for his crimes,” stated United States Attorney Peace. 

Mr. Peace thanked the Swiss government for its assistance with Zelinger’s arrest and extradition, the Justice Department’s Office of International Affairs (OIA), and the New York City Fire Department (FDNY) for its investigation of the charged arson and heroic efforts in rescuing residents trapped in an apartment building as a result of that blaze.

“When Viktor Zelinger stepped onto American soil, all the alleged crimes he is charged with became a reality after years on the run.  As a prominent leader in the ‘Thieves in Law,’ Zelinger held the decision-making power in New York further enabling organized crime around the world.  This extradition demonstrates DEA’s global reach and perseverance, as well as our commitment to the rule of law.  I applaud the DEA Strike Force and all of our law enforcement partners on their diligence throughout this investigation,” stated DEA Special Agent-in-Charge Tarentino.

“Today points to just the beginning for Viktor Zelinger as he was returned to the United States to face justice for years of alleged criminal activity.  Extortion, narcotics trafficking, assault, and arson—setting fire to an apartment building for vengeance—are just a sample of the charges against Zelinger, the alleged leader of an organized crime mob in Brooklyn.  This extradition is true testament to the global reach of IRS Criminal Investigation and our incredible investigative partnerships in the DEA Strikeforce,” stated IRS-CI Special Agent-in-Charge Fattorusso.

As alleged in a superseding indictment, the defendant was the leader of a sophisticated criminal organization that engaged in a wide range of activities traditionally associated with organized crime, including extortion, arson, assault, drug trafficking, illegal gambling, loansharking and wire fraud.  The organization also reported to and associated with high-ranking members of Eastern European mafia, known as “воры в зако́ не” (pronounced “vory v zakone”), which literally translates to “Thieves in Law” or “Thieves.”

From approximately 2011 to May 2017, members of Zelinger’s syndicate carried out numerous crimes, including arson and extortion, operated high stakes gambling establishments, trafficked in narcotics, assaulted victims, and facilitated loansharking.  Zelinger ordered the arson of an apartment building at 2220 Voorhies Avenue in Sheepshead Bay because it housed a rival high-stakes poker game on the ground floor that competed with the defendant’s illegal gambling spot at 2663 Coney Island Avenue.  Specifically, Zelinger directed members of the syndicate to break into the Voorhies Avenue building in the early morning hours of May 2, 2016 and set a fire.  The second and third floors of the building contained occupied apartments.  As a result of the fire, two building residents and five firefighters were injured, with one firefighter suffering career-ending burns, and the building was destroyed.

The defendant’s Coney Island Avenue gambling spot provided poker players with complimentary food and alcohol and “massage girls,” who gave players back and shoulder rubs during the games.  Poker players used narcotics, including cocaine and marijuana supplied by members and associates of the syndicate during the games.  Hundreds of thousands of dollars were wagered, with individual players sometimes winning or losing tens of thousands of dollars in a single night.

OIA worked with Swiss law enforcement partners to secure Zelinger’s apprehension and extradition, the latter of which was carried out by the United States Marshals Service.  Zelinger was apprehended in Switzerland on an extradition request based on charges pending in the Eastern District of New York.  The Federal Department of Justice and Police for the Swiss Confederation approved the extradition on August 31, 2022.

If convicted, Zelinger faces a mandatory minimum sentence of seven years’ imprisonment and a maximum of 40 years’ imprisonment for each of the arson counts; a maximum of 20 years’ imprisonment for each of the racketeering and extortion counts; and a maximum of five years’ imprisonment for each of the gambling counts.

Ten other defendants previously charged in the government’s case either were convicted at trial of or pleaded guilty to racketeering and related crimes.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

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:

VIKTOR ZELINGER (also known as “Vitya” and “Vityok”)
Age:  43
St. Gallen, Switzerland

E.D.N.Y. Docket No. 16-CR-553 (S-4) (BMC)

Earlier today in federal court in Brooklyn, George Djurasevic pled guilty to bribery, in violation of the Travel Act, admitting that he accepted more than half-a-million dollars in bribe payments in his role as a manager of a company (the “Company”) contracted by the New York City Water Board (NYCWB) to provide sewer and water pipe repair services to New York City homeowners.  Djurasevic also pled guilty to tax evasion.  Today’s proceeding was held before United States Magistrate Judge Peggy Kuo.  When sentenced, Djurasevic faces a total of 10 years in prison.

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

“Motivated by greed, Djurasevic flushed away his integrity, accepting bribes and leaving New Yorkers to pay the bill, including when home repairs were not even completed,” stated United States Attorney Breon Peace.  “That the process of overseeing city contracts on warranties for costly repairs was corrupted is a betrayal to New York homeowners.” 

“As he admitted with today’s plea, Mr. Djurasevic abused his position for personal gain and passed the tab on to New York City taxpayers.  Those responsible for helping their fellow citizens obtain basic utility services have a duty to do so in an honest manner, not one motivated by greedy self-interest. The FBI and our partners remain dedicated to bringing those who take bribes at the expense of the public to justice,” stated FBI Assistant Director-in-Charge Driscoll.  

DOI Commissioner Jocelyn E. Strauber said, "As today’s guilty plea establishes, instead of providing responsible oversight of City repair projects, the defendant used his status as a City contractor to line his own pockets with hundreds of thousands of dollars in bribe payments.  DOI and its federal partners will continue to thwart those who corrupt City processes and victimize New Yorkers."

“Djurasevic lined his pockets with ill-gotten gains and left the people of New York City to pay the tab.  He then underpaid his taxes by more than a hundred thousand dollars, revenue used to fund programs for Americans who need it.  It is clear that Djurasevic had little regard for the collateral damage of his schemes, and with this guilty plea he is one step closer to justice,” said Thomas M. Fattorusso, Special Agent in Charge for IRS:CI in New York.

According to court documents and facts presented at the guilty plea proceeding, the Company was awarded a multi-million-dollar contract by the NYCWB to sell warranties to New York City homeowners covering repairs to sewer and water pipes.  Djurasevic was responsible for overseeing the Company’s sewer and water line repair work carried out by the Company’s plumbing sub-contractors in Staten Island, Queens and Brooklyn.

Djurasevic accepted approximately $500,000 in bribes over five years from a sub-contractor in exchange for, among other things, allowing the sub-contractor to overbill for work performed or to not perform certain repairs to the homeowners’ sewer and water pipes, as well as for his review of the sub-contractor’s determination as to whether repairs were covered by the Company’s warranty.  Djurasevic also failed to report his true income to the Internal Revenue Service, which resulted in his failure to pay more than $114,000 in taxes.  When sentenced, Djurasevic faces a total of 10 years in prison.

The government’s case is being prosecuted by the office’s Public Integrity Section.  Assistant United States Attorneys Philip Pilmar, Robert Polemeni and Dana Rehnquist are in charge of the prosecution.

The Defendant:

GEORGE DJURASEVIC
Age:  54
Armonk, New York

E.D.N.Y. Docket No. 21-CR-551 (LDH)

Today, in federal court in Central Islip, a 29-count superseding indictment was unsealed charging eight members and associates of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” with multiple racketeering offenses, including predicate racketeering acts involving murder, attempted murder, conspiracy to commit murder, and related narcotics and firearms offenses.  The defendants will be arraigned on a later date before United States District Judge Joan M. Azrack.

Two of the defendants, Kevin Torres, also known as “Inquieto” and “Quieto” (Torres), and Oseas Gonzalez, also known as “Manota” and “Cordero” (Gonzalez), have now been charged with the September 5, 2016 murder of Marcus Bohannon, in Central Islip.  Racketeering charges and related offenses were also added against Gonzalez and Victor Lopez-Morales, also known as “Persa” (Lopez-Morales), in connection with the October 14, 2016 murder of Carlos Ventura-Zelaya; and against David Sosa-Guevara, also known as “Risky” (Sosa-Guevara), in connection with a May 23, 2020 assault against a rival gang member at the Nassau County Correctional Facility.  Finally, the superseding indictment charges an additional defendant, Kevin Cuevas Del Cid, also known as “Creeper,” “Malcriado,” “Sombra,” “Vinky” and “Dabura” (Del Cid), in connection with his participation in the May 21, 2016 murder of Kerin Pineda, and the October 10, 2016 murder of Javier Castillo. 

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 Patrick Ryder, Commissioner, Nassau County Police Department (NCPD), announced the superseding indictment.

“The superseding indictment demonstrates the resolve of this Office and the Long Island Gang Task Force to bring to justice the MS-13 gang members responsible for each and every one of the appalling and senseless murders they have committed in our communities on Long Island and elsewhere,” stated United States Attorney Peace.  “It is my hope that these latest charges bring some consolation to the families of the victims.”

“We are making a positive impact in the communities once terrorized by these MS-13 members, but we are seeing signs the gang is attempting to rebuild. Along with our law enforcement partners on our Long Island Gang Task Force, we remain determined to prevent that from happening, but we cannot do it alone. We need the public to remain vigilant and contact us with any information they have to prevent another rash of MS-13 murders,” stated FBI Assistant Director-in-Charge Driscoll.

“These MS-13 members are calculated, manipulative and have no regard for human life,” stated SCPD Commissioner Harrison.  “I commend the US Attorney’s Office for the Eastern District of New York and the Long Island Gang Task Force for their relentless pursuit to hold these individuals accountable. The unsealing of this indictment sends a clear message to gang members who think they are enhancing their gang’s reputation by committing heinous crimes—you will be held accountable.”

“These eight new indictments for murder of individuals connected to MS-13 is another clear example of how the Long Island Gang Task Force continues to bring these criminals to justice. The dedicated investigators that comprise the task force from multiple law enforcement agencies are the most experienced and professional in their departments.  I would like to thank them for their continued diligence by keeping all of our communities safe,” stated NCPD Commissioner Ryder.

Bohannon murder

As detailed in the superseding indictment, as well as in court filings, Torres and Gonzalez have been charged in connection with the murder of Bohannon, who was shot and killed shortly after midnight on September 5, 2016.  Prior to the murder, on the evening of September 4, 2016, members of the Sailors Locos Salvatruchas Westside (Sailors) clique and Hollywood Locos Salvatruchas (Hollywood) clique of the MS-13 met at a house in Central Islip.  Torres, who was the leader of the Sailors clique for all of New York, told the other gang members who were gathered at the house, including Gonzalez, a member of the Hollywood clique, that they would be going out that night hunting for rival gang members to kill.  The MS-13 members separated into several cars and drove around Central Islip and Brentwood looking for people they could target as rivals.  While Gonzalez and his fellow MS-13 members were driving through Central Islip, they observed Bohannon walking along Lowell Avenue.  Suspecting that the victim was a member of the rival Bloods gang, Gonzalez and another MS-13 member, both armed with handguns, got out of the vehicle, approached the victim and started shooting.  After shooting the victim numerous times, Gonzalez handed his gun to the other MS-13 member who fired several more shots into the victim after his own gun had jammed.  Bohannon died from his wounds.

Ventura-Zelaya murder

The superseding indictment also adds charges against Gonzalez and Lopez-Morales in connection with the October 14, 2016 murder of Carlos Ventura-Zelaya, in Roosevelt.  Ventura-Zelaya had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang.  On the day of the murder, Gonzalez observed the victim at a deli in Roosevelt and alerted other members of the Hollywood clique.  Gonzalez then picked up several fellow gang members, including Carlos Alfaro, also known as “Russo” (Alfaro), to assist in the murder.  The group next drove to the home of Lopez-Morales, who gave them a handgun.  After obtaining the weapon, Gonzalez drove the group back in the direction of the deli to look for and kill the victim.  Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, Alfaro, who was armed with the gun, and another MS-13 member got out of the car, approached him and Alfaro fired multiple times, striking and killing the victim.    

Pineda and Castillo murders

Del Cid is charged in this superseding indictment with the May 21, 2016 murder of Kerin Pineda, the October 10, 2016 murder of Javier Castillo, and conspiring to distribute cocaine and marijuana.  Del Cid, who was 16-years’ old at the time of these murders, was initially charged as a juvenile in a sealed proceeding before being transferred to adult status by order of the Court following a juvenile transfer hearing before the United States Circuit Judge Joseph F. Bianco sitting by designation. 

Members of the Sailors and Hollywood cliques murdered Pineda after suspecting him to be a member of the 18th Street gang.  On the day of the murder, Del Cid, who was a member of the Sailors clique and seeking promotion in the gang, helped to lure Pineda to a secluded wooded area near the Merrick-Freeport border where he and other MS-13 members were lying in wait armed with machetes.  When the victim arrived, Del Cid, and other MS-13 members, including Ever Morales-Lopez, also known as “Kyen,” “Lenky” and “Inke,” Jose Jonathan Guevara-Castro, also known as “Suspechoso,” and Gonzalez surrounded and attacked Pineda, stabbing, slashing and hacking him to death with machetes.  While this was taking place, Torres and Sosa-Guevara, the leaders of the Sailors and Hollywood cliques, respectively, were driving around the area in two separate cars looking out for any police presence.  Lopez-Morales was in the car with Sosa-Guevara.  After Pineda was killed the MS-13 members buried him in a hole that had been dug the day before.  Pineda’s remains were recovered more than a year later. 

Castillo was also killed based on his suspected membership in the 18th Street gang.  Del Cid, Torres and more than a half dozen other members of the Sailors clique participated in the Castillo murder.  On the night of October 10, 2016, the MS-13 members lured Castillo to Cow Meadow Park in Freeport.  They brought him to an isolated marsh area along the water where he was viciously attacked with machetes.  After killing Castillo, the MS-13 members dug a hole and buried the body, which was not recovered until one year later.  Many of the participants in the Castillo murder were previously charged in a separate case, two of whom have pleaded guilty. 

Additional Charged Crimes

Finally, the superseding indictment charges Sosa-Guevara with assaulting a rival gang member while in prison.  On May 23, 2020, Sosa-Guevara and several other MS-13 members got into an altercation with an inmate who was a member of the Bloods street gang.  Sosa-Guevara and the other MS-13 members armed themselves with sharpened metal objects and attacked the victim beating and stabbing him repeatedly until corrections officers intervened and stopped the assault.  The victim sustained multiple lacerations and stab wounds, and later recovered from his injuries. 

In the underlying indictment, Torres was charged with the 2016 murder of 19-year-old Oscar Acosta in Brentwood; Lopez-Morales and Gonzalez were charged with the 2016 murder of 19-year-old Josue Amaya-Leonor in the Roosevelt Preserve; and Lopez-Morales and Sosa-Guevara were charged with the 2017 murder of 15-year-old Angel Soler in Roosevelt.

* * * * *

This superseding 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 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 Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office.

New Defendant:

KEVIN CUEVAS DEL CID (also known as “Creeper,” “Malcriado,” “Sombra,” “Vinky” and “Dabura”)
Age: 22
Freeport, New York

Previously Indicted Defendants Facing Additional Charges:

OSEAS GONZALEZ (also known as “Manota” and “Cordero”)
Age: 30
Charlotte, North Carolina

VICTOR LOPEZ-MORALES (also known as “Persa”)
Age: 34
Roosevelt, New York

DAVID SOSA-GUEVARA (also known as “Risky”)
Age: 31
Roosevelt, New York

KEVIN TORRES (also known as “Inquieto” and “Quieto”)
Age: 26
Freeport, New York

E.D.N.Y. Docket No.: 20-CR-251 (JMA)

Earlier today, in federal court in Central Islip, David Butler, a United States citizen, pleaded guilty to wire fraud conspiracy in connection with a scheme to defraud investors in a form of investment known as “binary options.”  Butler was arrested in April 2022 in Costa Rica and extradited to the United States on July 14, 2022.  The guilty plea was held before United States District Judge Joanna Seybert.  When sentenced, Butler faces up to 20 years in prison.

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 M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.

“Butler’s guilty plea demonstrates that even when crimes are committed from thousands of miles beyond our country’s borders using the latest computer software, neither the foreign nature nor the sophistication of the scheme will shield fraudsters from being brought to justice in a U.S. courtroom,” stated United States Attorney Peace.  “This Office is committed to protecting the investing public from financial scams wherever they occur.”  

Mr. Peace thanked the Costa Rican government for its assistance with the arrest and extradition of the defendant.

“David Butler and his accomplices employed a complex, multi-million dollar con to deceive investors by using a manipulated ‘binary option’ system.  While investors waited for a surefire return on their investment, Butler pocketed the money to guarantee his own future—until he was caught.  Butler now understands that his only genuine guarantee is that he will now face the consequences of his criminal schemes,” said Thomas M. Fattorusso, Special Agent in Charge of IRS:CI in New York.

"As he admitted today, Mr. Butler defrauded his victims for his own personal gain.  This case should serve as a reminder to all those who attempt to game our financial systems from afar that the FBI, along with our global law enforcement partners, will bring you back to the United States to face justice in our federal courts," stated Assistant Director-in-Charge Driscoll.

As set forth in court filings, between approximately January 2011 and October 2016, Butler and his co-conspirators operated binary options companies, including SpotFN, Binary FN and Janus Options (Binary Options Companies) from Glen Cove, New York, Costa Rica and Kosovo.  The Binary Options Companies promised to pay investors, who were located throughout the United States, a predetermined profit based upon particular outcomes in the markets for securities, currencies and other investments.  For example, the Binary Options Companies would offer to pay customers a predetermined profit if a particular security or currency was valued at a particular price on a particular day at a particular time. 

To induce investments, Butler and his co-conspirators told investors, in telephone calls and emails, that the predetermined profits that the Binary Options Companies had promised them would be based upon the actual prices of securities, currencies and other investments at particular points in time.  Unbeknownst to the investors, however, Butler and his co-conspirators used computer software that allowed the Binary Options Companies to manipulate data associated with the investors’ binary options so that the probability of investors earning a profit would favor the Binary Options Companies.  At no time did Butler or any other employee of the Binary Options Companies inform the investors that the binary options that they had purchased from the Binary Options Companies could be manipulated to the investors’ disadvantage.  As a result of their deception, Butler and his co-conspirators stole more than $2.9 million from investors. 

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 wire fraud, such as the fraud that the defendant committed.

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.  The Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure the arrest and extradition of Butler to the United States.

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.  The Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure the arrest and extradition of Butler to the United States.

The Defendant:

DAVID BUTLER
Age: 52
San Jose, Costa Rica
Pittsburgh, Kansas

E.D.N.Y. Docket No. 18-CR-680 (JS)

BROOKLYN, NY - The U.S. Department of Justice is sharing with the Republic of Peru approximately $686,000 in forfeited criminal proceeds linked to the corruption and bribery of former Peruvian President Alejandro Celestino Toledo Manrique (Toledo) by Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.

Breon Peace, United States Attorney for the Eastern District of New York, and Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, made the announcement.

“Civil forfeiture serves a critical role in depriving criminals of their ill-gotten gains, regardless of their status, and despite their efforts to conceal the proceeds of their offenses committed abroad,” stated United States Attorney Peace.  “This Office and the department will continue to work with their law enforcement partners around the world to recover and return illicit payments that corrupt overseas officials attempt to hide in the United States.”

“This case is an important example of the international cooperation necessary to address corruption abroad where illicit proceeds are brought to the United States,” stated Assistant Attorney General Polite.  “The department is committed to doing its part to recover and repatriate such corruption proceeds where appropriate.”    

In a civil forfeiture action filed in the U.S. District Court for the Eastern District of New York, United States v. $639,583.07, More Or Less, Formerly On Deposit In Bank Of America Account Number XXXXXXXX1655, With A Beneficiary Identified As The Havenell Trust, And All Funds Traceable Thereto, No. CV 19-5652, the United States alleged that Toledo, while holding public office as President of Peru, solicited millions in bribe payments from Odebrecht in connection with government contracts awarded for construction of the Peru-Brazil Southern Interoceanic Highway (“Southern Interoceanic Highway”), a Peruvian government infrastructure project.  Odebrecht subsequently made bribery payments to Toledo through accounts maintained by Toledo’s co-conspirators. Ultimately, approximately $1.2 million of the bribery payments were used by Toledo and his family to purchase real estate in Maryland in 2007 through a scheme designed to hide Toledo’s ownership of the funds and their connection to Odebrecht.  The forfeited assets represent the proceeds from the sale of the Maryland real estate, which were further laundered through a trust and bank account controlled by Toledo. 

The Federal Bureau of Investigation’s tireless work in this case led to the assets forfeited in the United States being returned to the Republic of Peru.  Assistant U.S. Attorney Laura D. Mantell of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Barbara Levy of the Criminal Division’s Money Laundering and Asset Recovery Section handled the civil forfeiture cases.  The Justice Department’s Office of International Affairs also provided assistance with the cases.

In support of the U.S. forfeiture actions, the Peruvian government provided extensive and wide-ranging assistance.  Most notably, the documentary evidence provided by the Peruvian government included evidence necessary to seize assets located in the United States and substantially contributed to the timely success of the U.S. forfeiture actions. 

View the Spanish translation of the press release here.

The Department of Justice is sharing approximately $686,000 in forfeited criminal proceeds to the Republic of Peru linked to the corruption and bribery of former Peruvian President Alejandro Celestino Toledo Manrique (Toledo) by Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.

“This case is an important example of the international cooperation necessary to address corruption abroad where illicit proceeds are brought to the United States,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department is committed to doing its part to recover and repatriate such corruption proceeds where appropriate.”    

In the civil forfeiture matter filed in the U.S. District Court for the Eastern District of New York, United States v. $639,583.07, More Or Less, Formerly On Deposit In Bank Of America Account Number XXXXXXXX1655, With A Beneficiary Identified As The Havenell Trust, And All Funds Traceable Thereto, No. CV 19-5652, and a related case, the United States alleged that Toledo, who was the president of Peru from approximately 2001 to 2006, solicited millions in bribery payments from Odebrecht while he was in public office in connection with government contracts awarded for construction of the Peru-Brazil Southern Interoceanic Highway (Southern Interoceanic Highway), a Peruvian government infrastructure project.  Odebrecht subsequently made bribery payments to Toledo through accounts maintained by Toledo’s co-conspirators. Ultimately, approximately $1.2 million of the bribery payments were used by Toledo and his family to purchase real estate in Maryland in 2007 through a scheme designed to hide Toledo’s ownership of the funds and their connection to Odebrecht. The forfeited assets represent the proceeds from the sale of the Maryland real estate, which were further laundered through a trust and bank account controlled by Toledo. 

The FBI investigated the cases leading to the U.S. forfeiture of the assets being returned to the Republic of Peru and served as the seizing agency. Trial Attorney Barbara Levy of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Laura Mantell for the Eastern District of New York’s Civil Division handled the civil forfeiture cases. The Justice Department’s Office of International Affairs also provided assistance with the cases.

In support of the U.S. forfeiture actions, the Peruvian government provided extensive and wide-ranging assistance. Most notably, the documentary evidence provided by the Peruvian government provided the evidence necessary to seize assets located in the United States and substantially contributed to the timely success of the U.S. forfeiture actions. 

“Civil forfeiture serves a critical role in depriving criminals of their ill-gotten gains, regardless of their status, and despite their efforts to conceal the proceeds of their offenses committed abroad,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office and the department will continue to work with their law enforcement partners around the world to recover and return illicit payments that corrupt overseas officials attempt to hide in the United States.”

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption through criminal and civil forfeiture and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov (link sends email) or https://tips.fbi.gov/.

El Departamento de Justicia de EE.UU. compartirá con la República de Perú aproximadamente $686,000 de las ganancias delictivas decomisadas, vinculadas con la corrupción y el soborno del ex presidente peruano Alejandro Celestino Toledo Manrique (Toledo) por parte de Odebrecht S.A. (Odebrecht), un conglomerado de construcción global con sede en Brasil.

“Este caso es un ejemplo importante de la cooperación internacional necesaria para abordar la     corrupción en el extranjero donde las ganancias ilícitas son traídas a los Estados Unidos,” dijo el Fiscal General Auxiliar Kenneth A. Polite, Jr. de la División de lo Penal del Departamento de Justicia.  “El departamento está comprometido a hacer su parte para recuperar y repatriar dichas ganancias de la corrupción donde sea apropiado.”

En la causa de decomiso civil presentada en el Tribunal de Distrito de EE.UU. para el Distrito Este de Nueva York, los Estados Unidos c. $639,583.07, más o menos, anteriormente depositados en el número de cuenta XXXXXXXX1655 en el Bank of America, con un beneficiario identificado como El Fideicomiso Havenell, y todos los fondos que pueden ser rastreados al mismo, No. CV 19-5652, y una causa relacionada, los Estados Unidos alegaban que Toledo, quien fue el presidente de Perú aproximadamente desde 2001 hasta 2006, le solicitó a Odebrecht millones en pagos de sobornos, mientras él estaba ejerciendo su cargo, en conexión con los contratos gubernamentales otorgados para la construcción de la Carretera Interoceánica del Sur de Perú-Brasil (Carretera Interoceánica del Sur), un proyecto de infraestructura del gobierno peruano.  Posteriormente, Odebrecht le pagó sobornos a Toledo a través de cuentas mantenidas por los coconspiradores de Toledo.  Finalmente, aproximadamente $1.2 millones de pagos de sobornos fueron usados por Toledo y su familia para comprar bienes raíces en Maryland en el año 2007, por medio de una estratagema diseñada para esconder que Toledo era el propietario de los fondos y su conexión con Odebrecht. Los bienes decomisados representan las ganancias de la venta de los inmuebles en Maryland, las cuales fueron además lavadas a través de un fideicomiso y una cuenta bancaria controlados por Toledo.

La FBI investigó los casos que llevaron al decomiso de los bienes hecho por los EE.UU. y que están siendo devueltos a la República de Perú y fungió como la agencia de incautación.  La Abogada Litigante Barbara Levy de la Sección de Lavado de Dinero y Recuperación de Bienes de la División de lo Penal, y la Fiscal Auxiliar de EE.UU. Laura Mantell de la División Civil de la Oficina del Fiscal de EE.UU. para el Distrito Este de Nueva York, se encargaron de las causas de decomiso civil.  La Oficina de Asuntos Internacionales del Departamento de Justicia también dio asistencia con los casos.

En apoyo a las acciones de decomiso de EE.UU., la asistencia proporcionada por el gobierno peruano fue vasta y de gran envergadura. Principalmente, las pruebas documentarias dadas por el gobierno peruano proporcionaron las pruebas necesarias para decomisar los bienes ubicados en los Estados Unidos y contribuyeron considerablemente al éxito oportuno de las acciones de decomiso de EE.UU.

“El decomiso civil cumple un papel fundamental al privar a los delincuentes de sus ganancias ilícitas, sin importar sus estatus, y a pesar de sus esfuerzos para ocultar las ganancias de sus delitos cometidos en el extranjero,” dijo el Fiscal de EE.UU. para el Distrito Este de Nueva York, Breon Peace.  “Esta oficina y el departamento continuarán trabajando con sus socios de las fuerzas del orden público alrededor del mundo para recuperar y devolver los pagos ilícitos que funcionarios extranjeros corruptos intentan esconder en los Estados Unidos.”

La Iniciativa de Recuperación de Bienes de la Cleptocracia está liderada por un equipo de fiscales de la Sección de Lavado de Dinero y Recuperación de Bienes de la División de lo Penal, en colaboración con las agencias de control de la ley federal, y a menudo, las fiscalías de EE.UU., dedicados a decomisar las ganancias de la corrupción de los funcionarios extranjeros por medio de decomisos penales y civiles y, donde sea apropiado, usar aquellos bienes recuperados para beneficiar a las personas que fueron perjudicadas por estos actos de corrupción y abuso de poder.  En el año 2015, la FBI conformó equipos de corrupción internacional a lo largo del país para abordar las implicaciones nacionales e internacionales de la corrupción extranjera.  Los individuos con información acerca de las posibles ganancias de la corrupción extranjera ubicadas en los Estados Unidos, o lavadas en el país, deben contactar a los agentes de control de la ley federal o enviar un correo electrónico a kleptocracy@usdoj.gov (el enlace envía el correo electrónico) o ir a https://tips.fbi.gov/.

Earlier today, at the federal courthouse in Central Islip, Edward E. Bohm, formerly the President of Sales and part-owner of mortgage lender Vanguard Funding, LLC (Vanguard), based in Garden City, New York was sentenced by United States District Judge Joanna Seybert to 24 months’ imprisonment in connection with the diversion of more than $8.9 million of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.  Bohm was also ordered to pay $3,488,615.42 in restitution and $1,500,000 in criminal forfeiture.  In February 2019, Bohm pleaded guilty to conspiring to commit wire and bank fraud.  

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 Adrienne A. Harris, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.

“With today’s sentence, Edward Bohm has been deservedly punished for his role in a fraudulent scheme that deceived banks that trusted and relied upon him as a business partner.  Bohm diverted the loan proceeds to, among other things, pay tens of thousands of dollars in monthly personal credit card expenses and finance the luxury house in which he lived,” stated United States Attorney Peace.  “This Office, together with our law enforcement partners, will vigorously investigate and prosecute those who commit fraud to advance their own financial interests at the expense of businesses and residents of our district.”

“Edward Bohm and his associates at Vanguard Funding defrauded the financial institutions that provide critical residential mortgage funding, helping themselves to the short-term loans they falsely claimed were on behalf of consumers,” stated DFS Superintendent Harris.  “As New York's financial services regulator, I am proud of DFS’s mortgage banking examiners and criminal investigators who assisted in the investigation that brought Bohm to justice, and who will continue to root out fraud on behalf of all New Yorkers."

Between August 2015 and March 2017, Bohm and his co-conspirators at Vanguard engaged in a scheme in which they obtained more than $8.9 million in short-term loans, referred to as warehouse loans, by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients.  Instead, Bohm and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through false loan applications.  Bohm is the third defendant to be sentenced in connection with this scheme.  On February 6, 2019, Vanguard Senior Vice President and Chief Financial Officer Edward J. Sypher, Jr., was sentenced to 18 months’ imprisonment and restitution in the amount of $3,488,615.42 following his conviction on conspiracy to commit wire and bank fraud charges.  On February 26, 2019, Vanguard Chief Operating Officer Matthew T. Voss was sentenced to 24 months’ imprisonment and $3,488,615.42 restitution following his conviction on conspiracy to commit wire and bank fraud charges.

The government’s case is being prosecuted by Assistant United States Attorney Whitman G.S. Knapp, with assistance from Special Agent Martin Sullivan of the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

EDWARD E. BOHM
Age: 44
Smithtown, New York

E.D.N.Y. Docket No. 18-CR-36 (JS)

Awais Chudhary, 22, a naturalized U.S. citizen born in Pakistan and residing in Queens, pleaded guilty today in federal court in Brooklyn to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

According to court filings, in August 2019, after watching violent terrorist propaganda videos, Chudhary pledged his allegiance to ISIS’s then-leader Abu Bakr al-Baghdadi and began planning for a knife or bomb attack as a lone wolf ISIS supporter. Chudhary identified targets, including the pedestrian bridges over the Grand Central Parkway and the Flushing Bay Promenade, where he intended to carry out the attacks. Chudhary sought guidance from individuals whom he believed to be ISIS supporters, including what type of knife to use and how to prevent detection from law enforcement by not leaving “traces of finger prints [or] DNA.” Chudhary also sent a screenshot of a document from an ISIS propaganda magazine that included a diagram of the human body depicting where to stab victims with a knife. Chudhary conducted several reconnaissance trips to these locations and made video recordings of the areas he intended to attack.

Chudhary ordered items online that he intended to use to commit a terrorist attack, including a tactical knife, a mask, gloves, and a cellphone chest and head strap – to facilitate his recording of the attack, which he hoped would serve as inspiration to other ISIS supporters. Chudhary was arrested as he attempted to retrieve the items from an online retailer’s locker in Queens.

When sentenced, Chudhary faces up to 20 years in prison.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Breon S. Peace for the Eastern District of New York; and Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.

Assistant U.S. Attorneys Jonathan Algor and Ellen Sise are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Department of Justice’s Counterterrorism Section.

Awais Chudhary, a naturalized U.S. citizen born in Pakistan, pleaded guilty today in federal court in Brooklyn to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.  Today’s proceeding was held before United States Magistrate Judge Robert M. Levy.  When sentenced, Chudhary faces up to 20 years in prison.

Breon S. Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Acting 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 guilty plea.

“Awais Chudhary has admitted to planning to carry out a lone wolf terrorist attack in Queens against innocent civilians in an embrace of ISIS’s murderous cause,” stated United States Attorney Peace.  “Thanks to the Joint Terrorism Task Force, Chudhary’s efforts to commit deadly violence on behalf of ISIS were thwarted, lives were saved, and he now awaits sentencing for his heinous crime.”

“As he admitted today, Mr. Chudhary planned to bring terror to the people of New York City on behalf of ISIS.  The Joint Terrorism Task Force (JTTF), with its tireless vigilance, was able to successfully disrupt his plot, keeping our city safe from this potential lone wolf terrorist.  The FBI, along with our partners on the JTTF, remain committed to our highest priority of defending the United States from terrorism,” stated FBI Assistant Director-in-Charge Driscoll.

“Mr. Chudhary has admitted to providing material support, from American soil, to terrorists based overseas,” stated NYPD Commissioner Sewell.  “He is a naturalized U.S. citizen who abandoned the country that took him in, and instead pledged allegiance to ISIS and repeatedly and diligently promoted its violent objectives. Clearly, the threat of ISIS-inspired terrorism remains very real, and the members of our FBI-NYPD Joint Terrorism Task Force will never stop working to identify anyone aiding groups that consider our country their sworn enemy.”

According to court filings, in August 2019, after watching violent terrorist propaganda videos, Chudhary pledged his allegiance to ISIS’s then-leader Abu Bakr al-Baghdadi and began planning for a knife or bomb attack as a lone wolf ISIS supporter.  Chudhary identified targets, including the pedestrian bridges over the Grand Central Parkway and the Flushing Bay Promenade, where he intended to carry out the attacks.  Chudhary sought guidance from individuals whom he believed to be ISIS supporters, including what type of knife to use and how to prevent detection from law enforcement by not leaving “traces of finger prints [or] DNA.”  Chudhary also sent a screenshot of a document from an ISIS propaganda magazine that included a diagram of the human body depicting where to stab victims with a knife.  Chudhary conducted several reconnaissance trips to these locations and made video recordings of the areas he intended to attack. 

Chudhary ordered items online that he intended to use to commit a terrorist attack, including a tactical knife, a mask, gloves, and a cellphone chest and head strap to facilitate his recording of the attack, which he hoped would serve as inspiration to other ISIS supporters.  Chudhary was arrested as he attempted to retrieve the items from an online retailer’s locker in Queens.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Jonathan Algor and Ellen Sise are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Department of Justice’s Counterterrorism Section. 

The Defendant:

AWAIS CHUDHARY
Age:  22
Queens, New York

E.D.N.Y. Docket No. 20-CR-135 (CBA)

Earlier today, Ivars Auzins, a citizen of Latvia, was extradited to the United States on a six-count indictment charging him with wire fraud, securities fraud, and conspiracies to commit wire fraud and securities fraud in connection with the operation of eight companies that purported to offer, invest in or mine digital assets.  Auzins will be arraigned on the indictment tomorrow in federal court in Brooklyn before the Honorable Roanne L. Mann.

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 charges. 

“Auzins perpetrated a brazen scheme in which he fleeced investors who funneled millions of dollars into fraudulent cryptocurrency,” stated United States Attorney Peace.  “This Office will continue to vigorously investigate and prosecute those who lie and steal from investors, including those like the defendant who operate from abroad.”  Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.

As alleged in the indictment, Auzins, using aliases to conceal his identity, operated a series of entities the “Auzins Entities” that advertised through email campaigns, social media and websites dedicated to cryptocurrencies.  The Auzins Entities purported to offer valuable investment opportunities, solicited investments and then effectively disappeared.  Some of the Auzins Entities – Denaro and Bitroad Limited – purported to raise funds from investors through initial coin offerings (ICOs).  Other Auzins Entities – Impressio Estate Ltd., Broi Investments Ltd., also known as Bankroi, ChangePro Pty Ltd., Gemneon Investments Limited and Lycovest Ltd. – purported to be cryptocurrency investment platforms that provided investors with different investment plans and profit rates.  Another Auzins Entity – Innovamine – purported to offer investments in mining a number of cryptocurrencies, including Bitcoin and Ether.

As alleged, Auzins and co-conspirators induced investors to invest in the Auzins Entities through a series of material misrepresentations and omissions about the products and services that the Auzins Entities claimed to provide, the profits that investors would earn by investing in the Auzins Entities and the individuals who operated the Auzins Entities.  For example, in its marketing materials, Denaro stated that its Chief Executive Officer, “Ron Ramsey,” previously was an executive at a technology company based in Ohio, its Chief Financial Officer, “Jeremy Boker,” obtained a degree from a university in Kentucky, and that it issued debit cards associated with a credit card company based in New York.  These representations were false.  After soliciting investors in its ICO, Denaro stopped its public advertising campaign, its website became publicly inaccessible, and its investors lost their investments.

Between approximately November 2017 and July 2019, individuals in the United States and elsewhere transferred at least $7 million in digital assets to the Auzins Entities.  Shortly after receiving these investments, the Auzins Entities disappeared without providing their promised services. 

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 Business and Securities Fraud Section. Assistant United States Attorney John O. Enright is in charge of the prosecution with assistance from Paralegal Jordi Martinez. The Justice Department’s Office of International Affairs worked with law enforcement partners in Latvia to secure the arrest and extradition of Auzins to the United States, and the U.S. Marshals Service carried out the extradition.

The Defendant:

IVARS AUZINS (also known as “Aivars Grauzdins”)
Age:  29
Riga, Latvia

E.D.N.Y. Docket No. 21-CR-357 (ERK)

Earlier today, in federal court in Brooklyn, Keily Nunez, a former JetBlue Airways employee, pleaded guilty to conspiracy to commit wire fraud in connection with false statements Nunez made to obtain loans for himself and his coconspirators pursuant to the Economic Injury Disaster Loan (EIDL) program.  Nunez and four coconspirators were charged in June 2021.  Today’s proceeding was held before United States District Judge Raymond J. Dearie. 

In connection with the scheme, five other defendants previously pleaded guilty to conspiracy to commit wire fraud: Orlando Sanay, Michael Pimentel Veloz, Fanny Plasencia, Ramon Osvaldo Pena, and Angel K. Colon.  In addition, codefendant Keimi Nunez previously pleaded guilty to wire fraud.  When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.

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

“Each of the defendants admitted to their part in stealing nearly $1.5 million from a government program designed to help struggling small businesses and families survive the pandemic,” stated United States Attorney Peace.  “This Office will continue to aggressively prosecute those who seek to enrich themselves by abusing government programs.”

“Nunez and his co-conspirators fleeced the government to the tune of over $1.5 million, taking advantage of programs designed to keep small businesses afloat during a time of unprecedented economic volatility,” said HSI New York Acting Special Agent in Charge Ricky J. Patel. “Since the early days of the COVID-19 global pandemic, HSI has been committed to uncovering pandemic fraud and holding accountable those who take advantage of tragedy to turn a profit.”

The EIDL program provides qualifying small businesses with low-interest loans.  The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.  As set forth in court filings, between April 2020 and November 2020, the defendants applied for EIDL loans for eleven separate entities.  In those applications, the defendants falsely represented the number of employees associated with the entities and misstated the gross revenues for the entities for the 12 months prior to the COVID-19 pandemic. 

For example, Nunez submitted a loan application to the Small Business Association (SBA) in April 2020 claiming that Plasencia was the Chief Operating Officer and Nunez was the manager of FI USA Consulting LLC (FI USA).  In the application, Nunez falsely claimed that FI USA had 42 employees and gross revenues of $672,137 for the relevant period.  The SBA approved FI USA’s application and on July 13, 2020 wired $149,900 to FI USA’s bank account.  In contrast to the claims made in the application, New York Department of Labor records showed that FI USA never reported having any employees.  Internal Revenue Service records further revealed that FI USA never filed a tax return since its formation in 2017.  There is no evidence that the EIDL funds provided to FI USA were used for business purposes. 

Based on the defendants’ false representations, the Small Business Administration approved approximately $1.5 million in loans that were deposited into the defendants’ bank accounts. 

In addition to making false statements to obtain the loans, the defendants did not use the relief funding for ongoing business expenses as the EIDL program requires.  Instead, they withdrew hundreds of thousands of dollars in cash from bank accounts that had received EIDL loan funds. 

When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.

The case is being handled by the Office’s Business and Securities Fraud Section.  Department of Justice Trial Attorney Patrick J. Campbell and Assistant United States Attorney Garen S. Marshall are in charge of the prosecution, Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.   

The Defendants:

KEILY NUNEZ
Age: 42
Jamaica, New York

ORLANDO SANAY
Age: 41
Elizabeth, New Jersey

KEIMI NUNEZ
Age: 42
Woodhaven, New York

MICHAEL PIMENTEL VELOZ
Age: 41
Garfield, New Jersey

FANNY PLASENCIA
Age: 31
Jamaica, New York

E.D.N.Y. Docket No. 21-CR-496 (RJD)

RAMON OSVALDO PENA
Age: 39
Maywood, New Jersey

E.D.N.Y. Docket No. 21-CR-560 (RJD)

ANGEL K. COLON
Age: 39
Garfield, New Jersey

E.D.N.Y. Docket No. 22-CR-202 (RJD)

“Our Office mourns the passing of Andrew J. Maloney, who nobly served as the 33rd United States Attorney for the Eastern District of New York with a passion for doing justice, a toughness honed as a boxer at West Point and Army Ranger, and supreme confidence in his prosecutors that resulted in amazing work during his tenure.  Andy was an extraordinary trial lawyer, mentor, role model, and leader by example. The Office excelled under Andy’s leadership, with landmark organized crime cases that rocked the underpinnings of New York’s Mafia families, corruption prosecutions of a Brooklyn political boss and a state Assembly leader, the indictment of Colombian drug kingpin Pablo Escobar and his top hitman for conspiring to bomb an Avianca jetliner that exploded over Colombia killing 110 people, and the conviction of a prominent corporate lawyer who swindled clients out of millions of dollars.  Those are just a few of the monumental cases that are Andy’s legacy.  The generation of attorneys who became great prosecutors under Andy’s influence and leaders in the legal community are too numerous to name, but they, too are his legacy.  We thank him for his service and immense contribution to making the Eastern District of New York the gold standard for prosecution offices in the United States.” 

Earlier today, in federal court in Brooklyn, two indictments were unsealed charging nine defendants with racketeering, illegal gambling, money laundering conspiracy, obstruction of justice, and related offenses.  As alleged, charged with racketeering are: Anthony Pipitone, a captain and soldier in the Bonanno organized crime family of La Cosa Nostra; Vito Pipitone, Bonanno soldier; Agostino Gabriele, Bonanno associate; Carmelo Polito, acting captain in the Genovese organized crime family of La Cosa Nostra; Joseph Macario, Genovese soldier; and Genovese associates Salvatore Rubino and Joseph Rutigliano. 

Eight defendants were arrested this morning.  Seven are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.  Vito Pipitone was arrested in Wellington, Florida and will make his initial appearance this afternoon in federal court in Miami.  Joseph Rutigliano 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), and Anne T. Donnelly, District Attorney, Nassau County District Attorney’s Office, announced the charges.

“Today’s arrests of members from two La Cosa Nostra crime families demonstrate that the Mafia continues to pollute our communities with illegal gambling, extortion, and violence while using our financial system in service to their criminal schemes,” stated United States Attorney Peace.   “The defendants tried to hide their criminal activity by operating from behind the cover of a coffee bar, a soccer club, and a shoe repair shop, but our Office and our law enforcement partners exposed their illegal operations.  Even more disturbing is the shameful conduct of a detective who betrayed his oath of office and the honest men and women of the Nassau County Police Department when he allegedly aligned himself with criminals.”

Mr. Peace thanked the New York City Police Department, the Waterfront Commission of New York Harbor, and the United States Department of Labor, Office of the Inspector General for their assistance in the investigation.

“Current members of the five families demonstrate every day they are not averse to working together to further their illicit schemes, using the same tired methods to squeeze money from their victims. Enlisting alleged assistance from a member of law enforcement also proves they are willing to do all they can to hide their illegal behavior. Our active investigations show the mafia refuses to learn from history, and accept that at some point they will face justice for their crimes,” stated Assistant Director-in-Charge Driscoll.

“This case is further proof that organized crime is alive and well in our communities,” stated District Attorney Donnelly.  “These violent criminal organizations operated secret underground gambling parlors in local commercial establishments, generating substantial amounts of money in back rooms while families unknowingly shopped and ate mere feet away. These Mafia figures were assisted by a sworn member of law enforcement, who helped these gambling dens to thrive by offering police raids on competing clubs.  The Mafia has brought untold violence and extortion into our neighborhoods for decades, even threatening the life of an individual as part of this case. This indictment sends a strong message that we are committed to rooting out corruption and organized crime. We thank the EDNY, the FBI and the Nassau County Police Department DA Squad for their partnership in helping to keep our communities safe.”

As detailed in the indictments and court filings, members of the Genovese and Bonanno organized crime families operated several illegal gambling operations in the Eastern District of New York.  Beginning in at least May 2012, the Genovese and Bonanno families jointly operated a lucrative illegal gambling operation in Lynbrook, New York called the Gran Caffe.  The profits earned through this and other gambling locations generated substantial revenue, which was then laundered through cash transfers to the defendants and through “kicking up” to the crime families’ leaders.  Rutigliano and Rubino collected the proceeds for the Genovese crime family and distributed them up to higher- ranking members, including Polito and Macario.  At times, Gabriele collected the proceeds for the Bonanno crime family and distributed them up to higher-ranking members of that family, including Anthony Pipitone and Vito Pipitone. 

In addition to the Gran Caffe, the Genovese crime family—through Polito, Macario, Rutigliano, Rubino and others—operated illegal gambling parlors at establishments called Sal’s Shoe Repair and the Centro Calcio Italiano Club.  The Bonanno crime family—through Anthony Pipitone, Vito Pipitone, Gabriele and others—operated illegal gambling parlors at establishments called the Soccer Club, La Nazionale Soccer Club and Glendale Sports Club. 

Carmelo Polito, an alleged acting captain in the Genovese crime family, is also charged with operating an illegal online gambling scheme in which bets were placed on sporting events through a website called “PGWLines.”  In connection with his operation of PGWLines, Polito is charged with attempting to extort an individual who lost several thousand dollars in bets he placed through the website.  For example, in an October 2019 call concerning a delinquent debtor whose “face” Polito had previously threatened to “break,” Polito instructed another individual to relay a new message to the debtor: “Tell him I’m going to put him under the f------g bridge.”

As also detailed in the indictments and other court filings, Hector Rosario, a detective with the Nassau County Police Department, accepted money from the Bonanno crime family in exchange for offering to arrange police raids of competing gambling locations.  Rosario is charged with obstructing a grand jury investigation by the United States Attorney’s Office for the Eastern District of New York and lying to the FBI. 

The illegal gambling locations include:

• La Nazionale Soccer Club, 80-13 Myrtle Avenue, Queens
• Glendale Sports Club, 74-03 Myrtle Avenue, Queens
• Gran Caffe, 31 Hempstead Avenue, Lynbrook
• Soccer Club, 129 Rockaway Avenue, Valley Stream
• Sal’s Shoe Repair, 41 Merrick Avenue, Merrick
• Centro Calcio Italiano Club, 1007 Little East Neck Road, West Babylon

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

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Tanya Hajjar, Drew Rolle, Anna Karamigios and Special Assistant United States Attorney Abigail Margulies are in charge of the prosecution. 

The Defendants:

JOSEPH MACARIO (also known as “Joe Fish”)
Age:  68
West Islip, New York

CARMELO POLITO (also known as “Carmine Polito”)
Age:  63
Whitestone, New York

SALVATORE RUBINO (also known as “Sal the Shoemaker”)
Age:  58
Bethpage, New York

JOSEPH RUTIGLIANO (also known as “Joe Box”)
Age:  63
Commack, New York

MARK FEUER
Age:  59
Oceanside, New York

AGOSTINO GABRIELE
Age:  35
Glendale, New York

ANTHONY PIPITONE (also known as “Little Anthony”)
Age:  49
Deer Park, New York

VITO PIPITONE
Age:  40
Wellington, Florida

HECTOR ROSARIO
Age:  49
Mineola, New York

E.D.N.Y. Docket Nos. 22-CR-355 (ENV); 22-CR-356 (ENV)

Earlier today, in federal court in Central Islip, Peter Adamczak, a licensed chiropractor operating in East Meadow, Long Island, pleaded guilty to health care fraud in connection with billing a private insurance company over $1 million for acupuncture services that were never performed.  The proceeding was held before United States Magistrate Judge Arlene R. Lindsay.

Breon Peace, United States Attorney for the Eastern District of New York and Michael Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Lucy Lang, Inspector General of New York State, announced the guilty plea.

“Adamczak bilked an insurance company for acupuncture services that he never performed, brazenly lying in order to line his own pockets with money that he did not earn,” stated United States Attorney Peace.  “As a health care professional, Adamczak was required to uphold the highest standards of honesty and integrity, and failed both miserably.  This Office will continue to hold healthcare providers accountable for fraud and abuse.” 

“False medical claims jeopardize the wellbeing of sick and injured New Yorkers and drive-up costs for all of us,” said New York State Inspector General Lucy Lang. “Thank you to our colleagues at the U.S. Attorney’s Office for the Eastern District of New York for their partnership in protecting the integrity of our healthcare system.” The IG thanked Deputy Inspector General, Long Island Office Jean Carsey, Director of Audit for the Downstate Office Giovaani Liotine, Investigative Auditor Angelus Okeke, and Investigator Mario Rubino for their work on the investigation.

According to court filings and facts presented during the plea proceeding, from 2016 to 2020, Adamczak submitted over $1 million in fraudulent claims for reimbursement to a private insurance company.  Adamczak was not licensed to perform acupuncture, but claimed that the services were rendered by an unaffiliated acupuncturist who leased office space from the defendant.  Neither the unaffiliated acupuncturist nor Adamczak performed the billed acupuncture services.  Based on Adamczak’s fraudulent claims, the private insurance company paid approximately $994,838.16 in reimbursements to its beneficiaries who, in turn, delivered the payments to Adamczak.  In one case, a beneficiary who was a relative of Adamczak deposited the reimbursement checks to their personal bank account and kept the funds.

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

The Defendant:

Peter Adamczak
Age:  65
Huntington, New York

E.D.N.Y. Docket No. 22-CR-287 (JS)

Daniel Small, a former portfolio manager for Platinum Partners L.P. (Platinum), was convicted today by a federal jury in Brooklyn on charges of securities fraud and securities fraud conspiracy for his role in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote.  The verdict followed a two-week trial before United States District Court Judge Brian M. Cogan. 

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 Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.

"Small and his co-conspirators engaged in a scheme to deceive the bondholders of Black Elk by rigging the vote to enrich themselves,” stated United States Attorney Breon Peace.  “Today’s verdict demonstrates this Office’s dedication to prosecuting those who refuse to play by the rules and defraud others.  This Office will pursue justice without fear or favor no matter the obstacles.”

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

"Mr. Small and his co-conspirators, fueled by their own self-interest and avarice, purposely cheated their investors.  Today the jury held Mr. Small accountable for his actions, another step in the process of getting justice for his victims. The FBI and our partners remain committed to holding actors who defraud and manipulate investors responsible for their crimes so the public maintains its confidence in the integrity of our financial markets,” stated FBI Assistant Director-in-Charge Driscoll.

USPIS Inspector in Charge Daniel B. Brubaker said: “Daniel Small,  former Managing Director of Platinum Partners, conspired in an elaborate scheme to fraudulently divert millions in proceeds from bond investors to Platinum Partners.  This scheme was artfully concealed through what appeared to be a series of legitimate events. Nonetheless, it was an outright multi-million dollar theft from innocent victims. The United States Postal Inspection Service has a long and proven history of investigating egregious Wall Street Security Frauds such as these.  Small’s conviction represents our dedication to help maintain an honest and fair trading environment across all publicly traded companies."

Platinum was a New York City-based hedge fund founded in 2003.  The evidence at trial established that between approximately November 2011 and December 2016, Small, along with co-conspirators including Mark Nordlicht, the founder and Chief Investment Officer of Platinum, and David Levy, the co-Chief Investment Officer of Platinum, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests.

To execute this scheme, in early 2014, Small, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds.  The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum.  Small, Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders.  Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one testified that bondholders would never knowingly give up being “as senior as possible in the capital structure” for “nothing” in return, which he characterized as an “irrational choice.”

After the rigged vote was complete, Small, Nordlicht, Levy and their co-conspirators took millions of dollars from the asset sale for themselves, family members and friends, including approximately $7 million to Nordlicht’s father, approximately $250,000 to Levy, approximately $100,000 to Small and approximately $2 million to the brother of another co-conspirator.

In July 2019, Nordlicht and Levy were convicted on the same charges by a federal jury following a two-month trial.  Both defendants are awaiting sentencing.   

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 Business and Securities Fraud Section.  Assistant United States Attorneys David Pitluck, Lauren Elbert and Nicholas Axelrod are in charge of the prosecution.

The Defendants:

DANIEL SMALL
Age: 53
New York, New York

MARK NORDLICHT
Age: 54
New Rochelle, New York

DAVID LEVY
Age: 37
New York, New York

E.D.N.Y. Docket No. 16-CR-640 (BMC)

José Jonathan Guevara-Castro, also known as “Suspechoso” (Guevara-Castro), an alleged member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” and a fugitive from justice, was extradited yesterday from El Salvador to the United States.  Guevara-Castro, who was arrested in Acajutla, Sonsonate, El Salvador on August 13, 2020, has been detained pending his extradition to the United States, which was formally authorized by the Supreme Court of Justice of El Salvador on July 12, 2022.  Guevara-Castro was originally charged with the murder of 20-year-old Kerin Pineda in an indictment returned by a federal grand jury in Central Islip on July 9, 2020.  Guevara-Castro is scheduled to be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay.

Breon Peace, United States Attorney for the Eastern District of New York, John J. Durham, Director, Joint Task Force Vulcan (JTFV), and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and extradition.

“The extradition of Guevara-Castro demonstrates the resolve of this Office and law enforcement to bring to justice all gang members who commit violent crimes in our district no matter where in the world they may run and try to hide,” stated United States Attorney Peace. “I hope the return of the defendant to a federal courtroom on Long Island where he will be held accountable for a vicious murder will bring some measure of closure to the family of the young victim.”

Mr. Peace expressed his appreciation to the investigators and analysts of El Salvador’s Policía Nacional Civil (PNC) Centro Antipandillas Transnacional (CAT) unit, who are assigned to the Transnational Anti-Gang (TAG) Unit, for their outstanding collaboration in locating and apprehending this fugitive.  Additionally, Mr. Peace thanked the members of the FBI’s Long Island Gang Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), as well as the International Criminal Police Organization (INTERPOL), and the Department of Justice’s Office of International Affairs (OIA), for their partnership in this case.

Guevara-Castro is presently charged in a 24-count indictment, along with seven other MS-13 members and associates, with racketeering offenses, murder and narcotics trafficking.  Guevara-Castro specifically has been charged with participating in the murder of Pineda, who was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals.  Pineda’s murder was committed as a joint venture between two different subgroups, or “cliques,” of the MS-13 operating on Long Island: the Hollywood Locos Salvatruchas (Hollywood) clique, of which Guevara-Castro was an alleged member; and the Sailors Locos Salvatruchas Westside (Sailors) clique.  On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border, where he was surrounded and violently attacked.  Pineda’s machete-mutilated corpse was then buried in a hole that had been dug the day before.  Pineda’s corpse was recovered more than one year later.

The charges in the indictment are allegations, and the defendant and his co-defendants are presumed innocent unless and until proven guilty.  If convicted, Guevara-Castro faces up to life in prison. 

This extradition 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. 

This investigation was carried out in partnership with Joint Task Force Vulcan (JTFV).  The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.

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, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office. 

The Defendant:

JOSE JONATHAN GUEVARA-CASTRO (also known as “Suspechoso”)
Age: 27
Acajutla, Sonsonate, El Salvador; formerly of Roosevelt, New York, and Annapolis, Maryland

E.D.N.Y. Docket No. 20-CR-251 (JMA)

Earlier today, in federal court in Brooklyn, Dilshod Khusanov, a citizen of Uzbekistan and a resident of Chicago, Illinois, was sentenced by United States District Judge William F. Kuntz II to 11 years’ imprisonment for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS) and Al-Nusra Front (ANF).   Khusanov pleaded guilty to the charge in October 2021.  When Khusanov completes his sentence, he will be deported to his native Uzbekistan.

Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Acting 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 Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.

“With today’s sentence, Khusanov has been punished for providing blood money to support violent jihad in Syria and Iraq,” stated United States Attorney Peace.  “The significant punishment will deter those who are considering aiding foreign fighters determined to join terrorist organizations like ISIS and Al-Nusra Front.  Prosecuting those who assist terrorist organizations, here and abroad, will always be a priority of this Office.”

“Today’s sentencing further exemplifies the need to remain vigilant in our ongoing fight against international terrorism,” said NYPD Commissioner Sewell. “Our nation’s security begins with the dedicated local, state, and federal law-enforcement officers who are committed to keeping us safe, and we will hold anyone who funds violence against the American people fully accountable. 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 involved in this critical case for their outstanding work.”

According to court filings, in 2014 and 2015, Khusanov was a member of a financial support network that raised money for financing travel to Syria by individuals wishing to join and fight on behalf of ISIS and ANF. That network’s participants referred to it as “chayxona,” an Uzbek word which translates to the “tea house” or “tea party.”

Khusanov encouraged individuals to travel to Syria to wage violent jihad, or holy war.  For example, on September 28, 2014, he urged co-conspirator Akmal Zakirov to engage in jihad: “I hope that the only [reason] that is preventing you from jihad is some mistakes and flaws that are occurring among the mujahedeen [freedom fighters] you witness or hear about.”  Khusanov explained that it would be better to help those fighters, rather than criticize them.

Later in 2014, two Brooklyn residents, Abdurasul Juraboev and Akhror Saidakhmetov, began planning to travel to Syria to fight for ISIS.  A group of individuals in a domestic network based in New York and elsewhere, including Khusanov, worked together to raise and contribute money to help fund that trip to Syria.  In February 2015, Abror Habibov, Zakirov, Azizjon Rakhmatov, and Dilkhayot Kasimov discussed providing money to support Saidakhmetov’s travel and expenses in Syria.  Rakhmatov and Zakirov also agreed to solicit money from others to fund Saidakhmetov’s travel.  Zakirov contacted the defendant, then-based in Illinois, and asked him to contribute money for Saidakhmetov’s travel and to ask another individual to contribute money as well.  Khusanov agreed and arranged for money to be deposited in Zakirov’s bank account before Saidakhmetov’s scheduled departure.  Saidakhmetov was arrested in February 2015 at John F. Kennedy International Airport, as he boarded a plane bound for Istanbul, Turkey, a common transit point for foreign fighters bound for Syria.

Khusanov is the sixth of seven defendants convicted and sentenced in two prosecutions related to the plot.  Juraboev, Saidakhmetov, and Kasimov each were sentenced to 15 years’ imprisonment; Rakhmatov was sentenced to 12 1/2 years’ imprisonment; and Zakirov was sentenced to time served after approximately seven-and-a-half years’ imprisonment.  Habibov is awaiting sentencing.

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Douglas M. Pravda, Alexander A. Solomon, J. Matthew Haggans, and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.

The Defendant:

DILSHOD KHUSANOV
Age:  36
Chicago, Illinois

E.D.N.Y. Docket No. 17-CR-475 (WFK)

Related Cases

U.S. v. ABDURASUL JURABOEV, et al.
E.D.N.Y. Docket No. 15-CR-95 (WFK)

A Springfield Gardens man was sentenced to five years in prison yesterday for conspiring to commit aggravated identity theft and aiding in the preparation of false tax returns for his transportation business.

According to court documents and evidence presented at trial, Afolabi Ajelero worked at Kaybamz, a tax preparation business, during tax season from approximately 2012 through 2016. Ajelero conspired with Hakeem Bamgbala, the owner of the business, and others to prepare and file tax returns seeking fraudulent refunds in the names of individuals whose identities had been acquired unlawfully. Bamgbala then forged the names of the taxpayers on the refund checks and provided the checks to Michael Campbell and other co-conspirators to be cashed at banks. Among other roles, Ajelero was responsible for supplying his Electronic Filing Identification Number (EFIN) for use on each fraudulent return and helping fabricate tax paperwork to satisfy a third party that audited some of the returns filed by Kaybamz.

In addition to participating in the identity theft conspiracy, Ajelero also owned Mo-Betta Ventures, a transportation business that provided airport shuttle services in the New York City metropolitan area. From 2011 through 2016, Ajelero aided the filing of false corporate tax returns for Mo-Betta Ventures. Each of these returns included false items, including exaggerated fuel tax credits or deductions intended only for off-highway vehicles such as farm equipment.

In addition to the term of imprisonment, U.S. District Judge William F. Kuntz II ordered Ajelero to serve two years of supervised release and to pay approximately $45,000 in restitution to the United States.

Bamgbala previously pleaded guilty to 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return. Bamgbala died before he could be sentenced. Campbell pleaded guilty to one count of conspiracy to commit aggravated identity theft. He is scheduled to be sentenced on August 19.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon S. Peace for the Eastern District of New York made the announcement.

Trial Attorneys Mark McDonald and Eric B. Powers of the Tax Division prosecuted the case.

Earlier today, in federal court in Brooklyn, Jasminder Singh was sentenced by United States District Judge Carol Bagley Amon to 48 months’ imprisonment for bank fraud and money laundering related to Singh’s scheme to defraud American Express of more than $4.7 million.  Singh was also ordered to pay restitution to American Express in the amount of $4,651,845.08 and to forfeit $3,018,602.22.  Singh was convicted of the charges on April 27, 2022 by a federal jury following a one-week trial.

Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Jasminder Singh fraudulently used American Express credit cards to purchase millions of dollars’ worth of Apple products, which he sold to enrich himself, and then tried to leave American Express holding the bag,” stated United States Attorney Breon Peace.  “Today’s sentence sends a message to those, like the defendant, who defraud financial institutions, that there are serious consequences when their lies and deceit catch up to them and the bill comes due.” 

According to court filings and the evidence presented at trial, Singh used four business entities that he created and controlled, and 10 American Express credit cards in those entities’ names, to purchase thousands of Apple iPhones and other Apple products that he then sold overseas for millions of dollars.  Between November 2017 and December 2019, Singh misrepresented to American Express his inability to repay more than $4.7 million in charges incurred from his purchase of Apple products in order to secure additional credit, and used a series of financial transactions to conceal the money he obtained from selling the purchased iPhones. Singh used the proceeds from his fraudulent scheme to pay for personal expenses and purchase luxury items, including a $1.3 million home in Fremont, California paid for in cash.

Assistant United States Attorney Michael W. Gibaldi and Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section are in charge of the prosecution.  Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

JASMINDER SINGH
Age:  45
Fremont, California

E.D.N.Y. Docket No. 21-CR-397 (CBA)

Earlier today, in federal court in Central Islip, Richard Michel, also known as “G-Light” and “Gangsta Light,” the leader of the Red Lane Gorillas “set” of the Bloods street gang, was sentenced by United States District Judge Joanna Seybert to 30 years’ imprisonment for racketeering and predicate acts including the October 2011 kidnapping and assault of a rival gang member and another man in Hempstead, the July 15, 2012 murder of Anthony Richard in Baldwin Harbor, and the September 2016 attempted murder of a disloyal Bloods gang member in Uniondale.  Michel pleaded guilty to the charges in December 2021 along with co-defendant Dylan Cruz.

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

“For the murder, kidnapping, and assaults of Michel’s victims, the pain to their loved ones, and the violence Michel brought to our communities, today’s sentence is justice served,” stated United States Attorney Peace.  “As a result of the hard work of our prosecutors and law enforcement partners, Michel’s gang has been dismantled. And, we will not rest until all violent criminal enterprises on Long Island are eliminated.”

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

Michel, along with other members of the Red Lane Gorillas, engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn.  To maintain his leadership position in the gang and to keep rival gangs in fear, Michel engaged in extreme violence against anyone suspected of disloyalty or being disrespectful of his gang.

According to court filings and statements made by the defendant at his guilty plea, Michel, among other crimes, admitted his role in the murder of Richard, an individual that he wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang.  Cruz and Michel, together with fellow gang members and associates located the victim, obtained a firearm, and followed the victim’s vehicle to Baldwin Harbor.  Cruz, who was Michel’s top lieutenant, exited the vehicle he was travelling in, walked up to the victim’s car and fired approximately 15 shots into the vehicle at close range, killing Richard and wounding his passenger. Michel also admitted to the October 13, 2011 gunpoint kidnapping and assault of someone he perceived as a disloyal gang member and another man in Hempstead, New York.  Further, Michel admitted pulling the trigger in the September 9, 2016 attempted murder of a fellow Bloods gang member whom he suspected of disloyalty, in which the victim was lured from Brooklyn to Uniondale under the guise of a marijuana deal. Once at an isolated location in Uniondale, Michel shot the man in the back of the neck and left him in the street to die.  The man survived his wounds.  In June 2022, Cruz was sentenced to 25 years in prison.

This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.

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

The Defendant:

RiCHARD MICHEL (also known as “G-Light” and “Gangsta Light”)
Age:  41
Brooklyn, New York

E.D.N.Y. Docket Nos. 18-CR-664 (S-1) (JS)

Earlier today, in federal court in Brooklyn, Tyreik Jackson, also known as “Marlo,” a member of the Makk Balla Brims Bloods street gang, the King of Queens street gang and a narcotics-trafficking crew that controlled the vicinity of 8th Street and Astoria Boulevard in Queens, was sentenced by United States District Judge Eric Komitee to 10 years’ imprisonment for being a convicted felon in possession of ammunition.  Jackson possessed the ammunition in connection with shooting an individual over a perceived drug-dealing dispute.  Jackson pleaded guilty to the charge in February 2022.

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

“The defendant, who has previously been convicted of a violent felony crime, has demonstrated that he shows no respect for the law or human life.  With today’s sentence, he is deservedly removed from the community,” stated United States Attorney Peace.   “Fortunately, in this case, the victim survived.  I commend the prosecutors in our Office and our law enforcement partners who are working tirelessly to deter gun violence bringing cases with serious federal consequences against violent individuals like the defendant.”

Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, the New York City Police Department (NYPD), and the Queens County District Attorney’s Office for their outstanding work and assistance in this investigation and prosecution.

As set forth in court filings, prior to the shooting, members of Jackson’s narcotics-trafficking crew had threatened the victim multiple times, claiming that he had sold marijuana in their territory.  Shortly before midnight on September 26, 2020, Jackson was standing outside a nightclub in Long Island City when he saw the victim ride past him on a scooter.  Jackson was picked up by two associates and driven to the Queensbridge Houses, where both Jackson and the victim had lived as youths.  Jackson walked up to the victim and fired three shots, wounding him in the elbow, hip, and buttocks.  Jackson’s street name was “Marlo,” adopted from the fictional drug kingpin Marlo Stanfield in the HBO show “The Wire.”  Shell casings from the bullets fired by Jackson were recovered by NYPD detectives at the scene of the shooting. 

Jackson was previously convicted in 2008 of felony assault arising from separate attacks in which he struck one victim in the head with a baseball bat and restrained a second victim who was stabbed by another individual.  

This case was brought in conjunction with the FBI’s Safe Streets Task Force, 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, and the NYPD’s 114th Precinct.  As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.  

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Emily Dean and Benjamin Weintraub are in charge of the prosecution.

The Defendant:

TYREIK JACKSON (also known as “Marlo”)
Age:  36
Queens, New York

E.D.N.Y. Docket No. 20-CR-476 (EK)

A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Caleb Apolinaris, also known as “Kappa,” with distributing fentanyl in Brooklyn, New York, including to a 25-year-old individual who died of a drug-related overdose hours later at his residence. Apolinaris was arrested earlier today in Brooklyn, New York, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Marcia M. Henry.

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 arrest and charges. 

“As alleged, Apolinaris sold the fatal fentanyl that directly led to another individual joining the rapidly growing list of victims of overdose deaths,” stated United States Attorney Peace.  “This Office will continue to prosecute traffickers dealing lethal drugs to protect our community and bring justice for the victims and families devastated by the opioid scourge.”

“Fentanyl is a federally controlled substance, administered by professionals in medical fields, because of its potency and mortal consequences if abused. It is not a recreational drug to be passed around at parties.  Thousands of people are dying because drug dealers are unapologetically pushing fentanyl laced products.  We will arrest these criminals, one by one if need be, and do all we can to end the cycle of dependence and death,” stated FBI Assistant Director-in-Charge Driscoll.

“Illegal drugs, especially ones as potently deadly as fentanyl, have no place in our city,” said NYPD Commissioner Sewell.  “And any person who displays the recklessness to deal these drugs, and the negligent depravity to put lives at risk for profit, must be held fully accountable.  I want to thank the U.S. Attorney for the Eastern District, the FBI’s New York Field Office, and all of our investigators for their outstanding work on this case.”

As alleged in the complaint, on April 12, 2022, Apolinaris sold at least 11 glassine envelopes of fentanyl and a fentanyl/para-fluorofentanyl mixture to a 25-year-old individual (Victim-1), who died of a drug-related overdose hours later at his residence in Bay Ridge, Brooklyn.  Ten glassine envelopes containing fentanyl and a fentanyl/para-fluorofentanyl mixture were found near Victim-1’s body in his wallet.  Law enforcement officers obtained video from surveillance cameras outside Apolinaris’s residence and surrounding neighborhood from the night of April 11, 2022 and early morning of April 12, 2022.  The video showed Victim-1 meeting with Apolinaris to purchase the narcotics.  A search of Victim-1’s phone revealed text messages between Apolinaris and Victim-1.  In the hours preceding the transaction, Victim-1 texted Apolinaris, “Aight be up for me bro please I’m getting a taxi straight to urs should be like a hour at most.”  Apolinaris responded, “I got you 100%.” 

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

If you or someone you know is suffering from substance abuse please call the Substance Abuse and Mental Health Services Administration (SAMHSA) Helpline at 1-800-662-HELP (4357) or go to Findtreatment.gov.

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Apolinaris faces a mandatory minimum sentence of 20 years’ imprisonment and up to life in prison.

This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.

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

The Defendant:

CALEB APOLINARIS (also known as “Kappa” and “CalebKappaNewDogfood”)
Age:  25
Brooklyn, New York

E.D.N.Y. Docket No. 22-MJ-811