Eastern District of New York

A fifth defendant pleaded guilty today in the Eastern District of New York to participating in a fraudulent, multi-million dollar mass-mailing scheme that tricked consumers into paying fees for falsely promised cash prizes.

According to court documents, from November 2013 through November 2018, Carmine Maietta, 75, of Westbury, New York, engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize.  Maietta pleaded guilty to conspiracy to commit mail fraud. 

“Mass mailing fraud schemes often trick elderly victims into sending money based on false promises of large cash prizes,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to pursuing and prosecuting the perpetrators of these schemes.”

“With today’s guilty plea, Maietta admits to deceiving elderly and other vulnerable victims into believing they had won cash prizes when, in reality, he was simply pocketing their hard-earned funds,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office is committed to protecting the vulnerable from the financial harm caused by fraudulent mail solicitation schemes.”

“Sweepstakes and other frauds are extremely damaging to those who fall victim to a scammers’ pitch of trickery and lies,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service. “These fraudulent schemes by design are nothing more than lies written on paper. Postal Inspectors will always vigorously pursue individuals who prey on the public, bringing them to justice for their criminal activity.”

Four other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Charles Kafeiti, 58, of Scottsdale, Arizona, pleaded guilty on Dec. 23, 2020. Steven Diaz, 53, of Mount Sinai, New York, pleaded guilty on Feb. 8, 2021. Anthony Kafeiti, 61, of Port Jefferson, New York, pleaded guilty on July 28, 2021.  Drew Wilson, 63, of British Columbia, Canada, pleaded guilty on Aug. 24, 2021. The defendants were part of a multi-million dollar mail fraud scheme in which they worked together to coordinate the mailings, open and process victims’ responses to the fraudulent solicitations, manage lists of recipients and respondents, and process victim payments.

Maietta will be sentenced at a later date. Each of the five defendants faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Postal Inspection Service investigated the case.

Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.

The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

CENTRAL ISLIP, NY – Earlier today, in federal court in Central Islip, Carmine Maietta pleaded guilty to conspiracy to commit mail fraud in connection with a fraudulent mass-mailing scheme that tricked consumers into paying fees for falsely promised cash prizes.

Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney of the Justice Department’s Civil Division, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the guilty pleas.

“With today’s guilty plea, Maietta admits to deceiving elderly and other vulnerable victims into believing they had won cash prizes when, in reality, he was simply pocketing their hard-earned funds,” stated United States Attorney Peace. “This Office is committed to protecting the vulnerable from the financial harm caused by fraudulent mail solicitation schemes.”

“Mass mailing fraud schemes often trick elderly victims into sending money based on false promises of large cash prizes,” stated Acting Assistant Attorney General Boynton.  “The Department of Justice is committed to pursuing and prosecuting the perpetrators of these schemes.”

“Sweepstakes and other frauds are extremely damaging to those who fall victim to a scammers’ pitch of trickery and lies. These fraudulent schemes by design are nothing more than lies written on paper. Postal Inspectors will always vigorously pursue individuals who prey on the public, bringing them to justice for their criminal activity,” stated USPIS Inspector-in-Charge Brubaker.

According to court documents, from November 2013 through November 2018, Maietta engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize.   

Four other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme.  Charles Kafeiti pleaded guilty on December 23, 2020; Steven Diaz pleaded guilty on February 8, 2021; Anthony Kafeiti pleaded guilty on July 28, 2021; and Drew Wilson pleaded guilty on August 24, 2021. 

When sentenced, the five defendants each face a maximum penalty of 20 years in prison.

Assistant United States Attorney Charles P. Kelly of the Eastern District of New York prosecuted the case with Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division’s Consumer Protection Branch. The case was investigated by the United States Postal Inspection Service.

The Department of Justice has engaged in extensive efforts to combat elder fraud to halt the widespread financial losses senior citizens suffer from fraud schemes. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This hotline, which is managed by the Office for Victims of Crime at the Department of Justice, is staffed by experienced professionals who provide personalized support to victims. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern time. English, Spanish and other languages are available.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

The Defendant:

CARMINE MAIETTA
Age:  74
Westbury, New York

E.D.N.Y. Docket No.: 21-CR-639 (JMA)

The Defendants Who Previously Pleaded Guilty:

STEVEN DIAZ
Age:  53
Mount Sinai, New York

E.D.N.Y. Docket No.: 21-CR-35 (JMA)

ANTHONY KAFEITI
Age:  61
Port Jefferson, New York

E.D.N.Y. Docket No.: 21-CR-253 (JMA)

CHARLES KAFEITI
Age:  58
Scottsdale, Arizona

E.D.N.Y. Docket No.: 20-CR-578 (JMA)

DREW WILSON
Age:  63
British Columbia, Canada

E.D.N.Y. Docket No.: 21-CR-373 (JMA)

A dual Iranian-U.S. citizen was arrested Friday in Chicago, on criminal charges related to his alleged conspiracy to illegally export U.S. goods, technology and services to end users in Iran, including the government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA).

According to court documents, Kambiz Attar Kashani, 44, conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the U.S. government recognizes is an agency of the government of Iran.

“Kashani and his co-conspirators procured U.S.-origin goods and information technology for ultimate use in Iran, including for use by the Government of Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Kashani repeatedly lied to numerous U.S. companies to conceal his intention to ship items to Iran, allowing him to illegally obtain information technology for use by the CBI and other Iranian entities. The Justice Department continues to do everything it can to end the illegal export of items that threaten our national security.”

“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the CBI, which has been designated by the United States government as acting for or on behalf of terrorist organizations,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn. Kashani’s arrest underscores the unrelenting resolve of this office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”

“Technology illegally transferred to Iran from the United States could be used by terrorists, which is why the FBI and its partners devote significant resources to these investigations,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “Those doing the bidding for Iran in the United States should expect the full force of our law enforcement and Intelligence Community partners.”

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC). The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.

Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal. From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to ship the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.

Kashani is charged with one count of conspiracy to unlawfully export goods to Iran, and will make his initial court appearance in the Northern District of Illinois this afternoon. If convicted, he faces a maximum penalty of 20 years’ imprisonment and a $1 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa for the Eastern District of New York; Assistant U.S. Attorney Shawn McCarthy for the Northern District of Illinois; and Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

A criminal complaint has been unsealed in federal court in Brooklyn charging Kambiz Attar Kashani, a dual citizen of the United States and Iran, with conspiring to illegally export U.S. goods, technology, and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA).  Kashani was arrested yesterday in Chicago, Illinois, and had an initial appearance today before United States Magistrate Judge Sheila M. Finnegan at the federal courthouse in Chicago.  The defendant was remanded pending a detention hearing.

Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Joseph R. Bonavolanta, Special Agent-in-Charge, Federal Bureau of Investigation, Boston Field Office (FBI), announced the arrest.

“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the Central Bank of Iran, which has been designated by the United States government as acting for or on behalf of terrorist organizations.  The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn,” stated United States Attorney Peace.  “Kashani’s arrest underscores the unrelenting resolve of this Office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”

“We arrested Kambiz Attar Kashani for conspiring to deceive U.S. companies, including one headquartered in Massachusetts, by illegally exporting their highly sophisticated electronic equipment and technology to the Government of Iran. We believe Mr. Kashani profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism, while circumventing critical U.S. laws designed to protect our national security interests,” stated FBI Special Agent-in-Charge Bonavolonta.  “This case is another example of the FBI’s commitment to work with our law enforcement partners to protect American businesses and stop the illegal export of sensitive information and technology to nations that are hostile to the United States.”

As set forth in the complaint, Kashani conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the United States government recognizes is an agency of the Government of Iran.  The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization.  According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC).  The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.   

Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal.  From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses.  Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.   

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the Justice Department’s Counterintelligence and Export Control Section and Assistant United States Attorney Shawn McCarthy of the Northern District of Illinois.

Defendant:

KAMBIZ ATTAR KASHANI
Age:  44
United Arab Emirates

E.D.N.Y. Docket No.: 21-MJ-31

An indictment was unsealed today in federal court in Brooklyn charging Jordan Nixon, Janessa Torres and Johara Zavala with assaulting an airline security officer in a jetway at John F. Kennedy International Airport (“JFK Airport”) on September 22, 2021.  The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon. 

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

“As alleged, the defendants viciously assaulted an airline security officer by beating him to the floor with his radio and then kicking and punching him in the face and body while he was down,” stated United States Attorney Peace.  “The extreme and aggressive behavior in connection with our air travel is out of control.  This Office has zero tolerance for violent conduct that threatens the safety of airline passengers and employees and will prosecute defendants who allegedly engage in such conduct to the fullest extent of the law.”  Mr. Peace also expressed his appreciation to the Port Authority Police Department for their assistance in the investigation.

“The FBI is the lead federal agency in charge of arresting those who assault, intimidate, or threaten flight crew, or endanger the safety of other passengers,” stated FBI Assistant Director-in-Charge Driscoll.  “Anyone who thinks they can get away with this type of unruly behavior should be reminded that their actions are criminal and can result in time behind bars as a result of federal criminal charges.  We are aggressively addressing this emerging threat and take all cases seriously.”

“The defendants allegedly attacked two airline employees, who were simply doing their jobs,” stated Queens District Attorney Katz.  “The friendly skies must not turn into chaos and turmoil because some passengers refuse to abide by the rules. Our airport personnel must be safe in order to keep the flying public safe.”

As alleged in court filings, the defendants refused to leave a jetway at JFK Airport after they were informed that they would be denied boarding for a Delta Airlines scheduled flight to San Juan, Puerto Rico.  The defendants were belligerent, with one appearing to be visibly disoriented and possibly intoxicated, and another who was refusing to properly wear her mask.  The flight’s Gate Agent (“Employee 1”) notified the flight crew of the defendants’ belligerent conduct, and the captain of the flight and a member of the flight crew determined that the defendants should not be allowed to board the flight.  The defendants refused the request of an airline security officer (“Employee 2”) to leave the jetway and approached him while yelling and cursing.  One defendant struck Employee 2 repeatedly with his own radio, and he fell to the floor.  When Employee 1 tried to assist Employee 2, one defendant punched Employee 1 in the face.  All three defendants then punched and kicked Employee 2 in the face and body while Employee 2 was on the floor.  Employees 1 and 2 were later treated at a hospital for their injuries.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 10 years in prison.

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

The Defendants:

JORDAN NIXON
Age: 21
Bay Shore, New York

JANESSA TORRES
Age: 21
Central Islip, New York

JOHARA ZAVALA
Age: 44
Central Islip, NY

E.D.N.Y. Docket No. 21-CR-633 (RJD)

A six-count indictment was unsealed today in federal court in Brooklyn charging Manuel Moretti with Mann Act crimes stemming from the coercion of a 13-year-old child to engage in sexual activity with him on at least four occasions.  Moretti was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.

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 arrest and charges.

“As alleged, for several months last year, Moretti used different social media platforms to lure a 13-year-old child across state lines for the purpose of repeatedly engaging in sexual activity.  These allegations serve as a reminder of the dangers to our children from online predators and the importance of being aware of whom our children are communicating with online,” stated United States Attorney Peace.  “This Office is deeply committed to protecting vulnerable victims from sexual exploitation and will vigorously prosecute offenders like Moretti, who allegedly prey on children.”   

“Cyber space may not seem real to some children, or even parents, but it poses a real danger as we allege in this investigation,” stated FBI Assistant Director-in-Charge Driscoll.  “Unfortunately, we can’t stop these crimes from happening because the internet allows sexual predators direct access to victims. We’re asking parents to start a conversation with their children about being safe online.  The FBI New York Crimes Against Children and Human Trafficking Task Force believes Mr. Moretti may have victimized others and we’re asking anyone with information to call us at 1-800-CALL-FBI.”

As set forth in the indictment and court filings, Moretti met a 13-year-old child on a social networking site in January of last year.  He then arranged for the child to travel across state lines to Moretti’s residence in Queens on several occasions over a four-month period between January and April 2021 for the purpose of engaging in sexual activity.  Moretti also provided the child a fraudulent identification document to facilitate future sexual encounters with the child.  In December 2021, after Moretti was interviewed by the FBI, he contacted the child, this time via Snapchat, a different social networking site, for the purpose of engaging in sexual activity.

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

If convicted of all counts, Moretti faces a mandatory minimum sentence of 10 years’ imprisonment.

Assistant United States Attorney Margaret Schierberl is in charge of the prosecution.

The Defendant:

MANUEL MORETTI
Age:  39
Forest Hills, New York

E.D.N.Y. Docket No. 22-CR-17 (SJ)

Breon Peace, United States Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG), and Norbert E. Vint, Deputy Inspector General, Office of Personnel Management (OPM), announced today that six surgery centers and medical offices affiliated with Interventional Pain Management Center P.C. (“IPMC”), a company owned by Dr. Amit Poonia, have agreed to pay $7,447,340.75 to resolve liability under the False Claims Act for claims submitted to federal health care programs for acupuncture treatment. 

“This settlement holds the defendants accountable for mischaracterizing acupuncture as a surgical procedure in order to dishonestly obtain millions of dollars from Medicare and the Federal Employees Health Benefit Program,” said United States Attorney Peace.  “Working with our partners at the Department of Health and Human Services Office of the Inspector General and the Office of Personnel Management, we identified the false claims that enabled our Office to negotiate resolutions that resulted in a significant recovery of taxpayer dollars.”

“Medical professionals are expected to bill taxpayer funded health care programs correctly to ensure that they remain solvent and available to those that need their services,” stated HHS-OIG Special Agent-in-Charge Lampert.  “Along with our law enforcement partners, this settlement affirms our commitment to ensuring that individuals and entities that bill federal health care programs do so in an honest manner.”

“Today’s settlement reminds all providers that if they submit false claims, they will be held accountable,” stated OPM Deputy Inspector General Vint.         

The defendants treated patients with electro-acupuncture devices called P-Stim and NeuroStim/NSS (“NSS”).  P-Stim and NSS procedures transmit electrical pulses through needles placed just under the skin on a patient’s ear.  Both treatments are considered acupuncture under Medicare and Federal Employees Health Benefit Program (“FEHBP”) guidelines and are therefore ineligible for reimbursement by the government.  From January 2012 through April 2017, the IPMC surgery centers and medical offices submitted claims to Medicare and FEHBP for P-Stim and NSS treatment and associated administration of anesthesia.  In submitting the claims, the defendants used a billing code that mischaracterized the acupuncture treatment as a surgical implantation of a neurostimulator.

In addition to paying the civil settlement, Dr. Poonia, New Jersey Interventional Pain Management Center, PC; Advanced Interventional Pain Management Center, LLC; Global Anesthesia Group, LLC; Springfield Surgery Center, LLC; Park Avenue Surgery Center, LLC; and Endo Surgi Center of Old Bridge, LLC, have agreed to enter into an Integrity Agreement with the HHS-OIG.  The Integrity Agreement requires that these entities and their owners implement specific measures intended to prevent future health care fraud and address evolving compliance risks.  These measures include training for staff on applicable health care fraud laws and submitting to a claims review conducted by an Independent Review Organization to ensure compliance with Medicare billing requirements. 

The allegations were brought to the government’s attention through the filing of a complaint captioned United States ex rel. Anu Doddapaneni and Christian Reyes v. Amit Poonia, MD., New Jersey Interventional Pain Management Center, P.C. et al., 18-CV-5214 pursuant to the qui tam provisions of the False Claims Act.  Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery.  The claims resolved by the settlement are allegations only; there has been no determination of liability, nor a concession by the United States that its claims are not well founded.

The government’s case was handled by Assistant U.S. Attorney Jolie Apicella of the Office’s Civil Division with assistance from Civil Investigator Joseph Giambalvo.

The Defendants:

Dr. Amit Poonia, M.D.

New Jersey Interventional Pain Management Center P.C.

Advanced Interventional Pain Management Center LLC

Global Anesthesia Group LLC

Park Avenue Surgery Center LLC

Springfield Surgery Center LLC

Endo Surgi Center of Old Bridge LLC

E.D.N.Y. Docket No. 18-CV-5214 (ENV)

Today, United States Attorney Breon Peace announced his selection of Carolyn Pokorny to serve as First Assistant United States Attorney (FAUSA) for the Eastern District of New York.  As FAUSA, Ms. Pokorny oversees the Criminal, Civil, Appeals and Administrative Divisions of the United States Attorney’s Office.  

Ms. Pokorny returns to the United States Attorney’s Office after serving since 2019 as the first female Inspector General for the Metropolitan Transportation Authority (MTA) which is charged with oversight of the transit agency.  As MTA Inspector General, Ms. Pokorny ushered in an unprecedented dedication to transparency and a willingness to take on big societal issues, such as homelessness, policing, and overtime abuse, that impact the MTA, its workers, riders, and taxpayers.  Ms. Pokorny issued hundreds of recommendations for change to the authority, over 100 of which have been implemented.  Under Ms. Pokorny’s watch, the Inspector General’s office recouped millions of dollars for the MTA and New York State, including through high profile criminal cases in collaboration with law enforcement partners across the region.

Ms. Pokorny has spent most of her career as a prosecutor and served as an Assistant U.S. Attorney in the Eastern District of New York for more than 14 years.  During her tenure, she spent nine years in the Office’s Narcotics Section, serving as a line assistant and Deputy Chief, before being appointed Chief of Narcotics in 2005.  While serving as Chief of Narcotics, she spearheaded the creation of the Office’s International Narcotics Strike Force devising a national strategy for prosecuting the leaders of Mexico's most powerful cocaine cartels, and led the international investigation that resulted in the conviction of over 30 leaders of Colombia's most powerful cocaine cartel. ​ In recognition of her work, she received the U.S. Attorney General’s Award for Distinguished Service and the Federal Drug Agents Foundation “True American Hero” award.  Ms. Pokorny also served as Senior Litigation Counsel in the Public Integrity Section, as Chief of the General Crimes Section, and as Deputy Chief of the Criminal Division.

In 2015, Ms. Pokorny was tapped by then Attorney General Loretta Lynch to serve as her Deputy Chief of Staff and Counselor.  Prior to her appointment as Inspector General of the MTA in 2019, Ms. Pokorny served as Special Counsel for Public Integrity in the Executive Chamber and oversaw New York State’s Ethics, Risk and Compliance program.  

Ms. Pokorny is a graduate of Brooklyn Law School where she served as the Associate Managing Editor of the Brooklyn Law Review.  She served as an Assistant District Attorney in the Appeals Bureau of the Bronx District Attorney’s Office, which was followed by a two-year judicial clerkship with the late United States District Judge Arthur D. Spatt of the Eastern District of New York.

“I am pleased to welcome Carolyn back to the Eastern District of New York as First Assistant U.S. Attorney.  We have known each other for over 20 years since having worked together as Assistant U.S. Attorneys in this Office.  Carolyn is an outstanding lawyer and proven leader with a distinguished record of public service with the Department of Justice and with the State and City of New York.  She not only brings a wealth of knowledge and experience to the Office, but also impeccable judgment and the utmost integrity,” stated United States Attorney Peace.  “I look forward to our working together in pursuing this Office’s mission and advancing the interests of justice and equality for the people of this district.”

“U.S. Attorney Breon Peace has already proven to be a brilliant leader, and I am humbled to have this opportunity to serve as FAUSA as he executes his vision and fulfills the mission of this Office.  It is also thrilling for me to return to the place that was my professional home for better part of two decades and rejoin the broader EDNY community of judges, defense attorneys, and talented courthouse staff,” stated First Assistant United States Attorney Pokorny.

United States Attorney Breon Peace announced today that the Eastern District of New York collected $249,989,681.40 in criminal and civil actions in Fiscal Year 2021.  Of this amount, $196,932,566.03 was collected in criminal actions and $53,057,115.37 was collected in civil actions, and $4,503,424.87 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and litigating divisions of the Department of Justice.  Additionally, $64,171,429 in assets tainted by crime was forfeited to the government. 

“The Eastern District’s robust recoveries in fiscal year 2021 underscore its commitment to recovering funds for the federal treasury, seeking restitution for the victims of crime and forfeiting assets that are tainted by crime,” stated United States Attorney Peace.  “Our collections and asset recovery programs hold defendants financially accountable for their illegal activities and ensure that their debts, particularly to victims, are paid.”

FY 2021 Collections Highlights

In October 2020, J&F Investimentos SA (J&F), a global conglomerate holding company based in Brazil and primarily involved in the meat and agriculture businesses, pleaded guilty to conspiring to violate the Foreign Corrupt Practices Act and agreed to pay the United States a criminal fine of $128,248,913.  Between approximately 2005 and 2017, J&F, through certain of its employees and agents, paid millions of dollars in bribes to, and for the benefit of, Brazilian government officials to obtain financing from two Brazilian state-owned and state-controlled banks and to obtain approval for a merger from a Brazilian state-owned and state-controlled pension fund.  In furtherance of the scheme, J&F used New York-based bank accounts in the name of shell companies to make hundreds of millions of dollars in corrupt payments for the benefit of Brazilian officials. 

Also in October 2020, the Office collected $2,817,224.31 from Williamsburg Physical Therapy P.C. to resolve allegations of false claims submitted to Medicare, Medicaid and other federal healthcare programs for physical therapy services provided or supervised by someone other than the licensed physical therapist identified on the claim, including unlicensed aides.  The settlement also resolved claims that the defendants wrongfully backdated services after treatment authorizations had expired.

In May 2021, the Office’s largest civil collection of $43,320,000 involved Bank Julius Baer & Co. Ltd., a Swiss bank with international operations, that admitted to conspiring to launder over $36 million in bribes through the United States to soccer officials with the Fédération Internationale de Football Association (FIFA) and other soccer federations.  These bribes were in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches. 

The Eastern District also forfeited $64,171,429 in assets tainted by crime.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for a variety of purposes, including to compensate victims of crime.  For example, over $42 million in forfeited funds will be remitted to victims in the FIFA corruption case, which is part of the government’s long-running investigation and prosecution of corruption in international soccer.

Collections Overview

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Earlier today at the federal courthouse in Brooklyn, Deovaldo Gutierrez Alfaro, also known as “Leoba,” was sentenced by United States District Judge Carol Bagley Amon to 60 months’ imprisonment for his participation in a large-scale international narcotics distribution conspiracy.  The defendant was arrested in Nayarit, Mexico in March 2019 and extradited to the United States in November 2019.  Alfaro pleaded guilty in June 2021. 

Breon Peace, United States Attorney for the Eastern District of New York, and William D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA), announced the sentence. 

“With today’s sentence, the defendant is held accountable for conspiring to smuggle large quantities of heroin and other dangerous drugs into the United States and for transmitting hundreds of thousands of dollars in illegal drug proceeds between the United States and Mexico,” stated United States Attorney Peace.  “This Office and its law enforcement partners are committed to dismantling international drug cartels and their distribution cells that fuel addiction and promote drug-related violence in our cities and local communities.” 

“Drug trafficking organizations continue to flood our communities with drugs and perpetuate the cycle of addiction that is causing unprecedented overdose deaths across the nation,” stated DEA Los Angeles Special Agent-in-Charge Bodner. “This case exemplifies the hard work and collaborative efforts utilizing domestic and international resources to effectively disrupt sophisticated criminal syndicates.”

According to court filings and facts presented during court proceedings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico.  The H-2 Cartel had numerous drug distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds.  In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.

Between June 2013 and December 2016, the defendant conspired with the H-2 Cartel to smuggle large quantities of heroin from Mexico into the United States and distribute the heroin throughout the country, including in the Eastern District of New York.  The defendant also helped the Cartel move hundreds of thousands of dollars in drug proceeds from the United States back to Mexico.  In September 2015 and November 2016, law enforcement seized more than three kilograms of heroin in connection with two drug shipments that the defendant had coordinated.

The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section.  Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris, and Andrew D. Wang are in charge of the prosecution.  The Justice Department’s Office of International Affairs provided substantial assistance in securing Alfaro’s arrest and extradition.

The Defendant:

DEOVALDO GUTIERREZ ALFARO
Age:  43
Residence: Nayarit, Mexico

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

Ashiqul Alam pleaded guilty today to knowingly receiving a firearm with an obliterated serial number in Brooklyn, New York.  The proceeding was held before United States Magistrate Judge Robert M. Levy.  When sentenced, Alam faces 60 months’ imprisonment pursuant to the terms of his plea agreement with the government. As part of his plea agreement, Alam, a citizen of Bangladesh, agreed to the entry of an order of removal so he will be deported after completing his sentence.

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 Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“With today’s guilty plea, Alam has admitted to purchasing a firearm for use in a full-scale, mass-casualty attack in Times Square,” stated United States Attorney Peace.  “Protecting our national security and the residents of this city, state and nation from the threat of terrorist attacks at home or abroad continues to be one of the highest priorities of this Office and its law enforcement partners.”

As set forth in court filings, between August 2018 and the June 2019, Alam repeatedly expressed a desire to purchase firearms for use in a mass-casualty attack.  Alam identified two targets, either Times Square or Washington, D.C., in order to kill a senior government official.  In January 2019, Alam conducted several reconnaissance trips to Times Square, using his cellular telephone to make a video recording of the area as he searched for potential targets. 

Alam conducted research about firearms on the internet and discussed purchasing firearms with an undercover law enforcement officer (“UC-1”).  In March 2019, Alam told UC-1 that he would be interested in buying a Glock 9mm pistol. UC-1 introduced Alam to an “associate,” who offered to help Alam procure two illegal Glock G19 pistols.  In April 2019, Alam underwent Lasik eye surgery, a procedure whose value he explained: “Let’s say we are in an attack, right, say that my glasses fall off. What if I accidentally shoot you? You know what I mean.  Imagine what the news channel would call me the ‘Looney Tunes Terrorist’ or the ‘Blind Terrorist.’”

In May 2019, Alam was told by “UC-1” that the firearms he wanted to buy would have obliterated serial numbers, and he replied “Oh, that’s good man.”  On June 6, 2019, Alam met the individual he believed was going to sell him firearms and was shown two Glock 19 semiautomatic pistols with obliterated serial numbers.  Alam provided $400 towards the purchase of the two pistols and asked whether the Glock 19 pistol he had just purchased was compatible with a silencer.  Alam was arrested shortly thereafter.

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys David K. Kessler and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Stephanie Sweeten of the National Security Division’s Counterterrorism Section.

The Defendant:

ASHIQUL ALAM
Age: 25
Queens, New York

E.D.N.Y. Docket No. 19-CR-0280 (LDH)

Earlier today, Alexis Hernandez, an associate of the Guanacos Li’l Cycos Salvatruchas (“Guanacos”) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty in federal court in Central Islip to racketeering charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos.  The defendant was arrested on July 13, 2017 at his home in Central Islip.  When sentenced, Hernandez faces a maximum sentence of life in prison.  Upon completion of his sentence, he faces deportation from the United States.  Today’s proceeding was held before United States District Judge Gary R. Brown.  

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 Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“With today’s guilty plea, the defendant acknowledges his role in the brutal and senseless murders of four young men he believed had disrespected the MS-13.  I hope our efforts to bring these killers to justice provides some measure of comfort to the families of the victims, although no criminal case will replace their loved ones,” stated United States Attorney Peace.  “This Office and its law enforcement partners remain steadfast in their commitment to seek justice for the victims of this terrible crime and to end the MS-13’s destructive reign of premeditated violence in our communities.”

“This was one of the most gruesome murders in Suffolk County’s history,” stated SCPD Acting Commissioner Cameron said. “I commend the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for ensuring Alexis Hernandez will be held accountable for his role in this brutal crime.”

According to court filings and statements by the defendant at the guilty plea proceeding, on the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip where they were attacked and killed.  The MS-13 members and associates believed the victims to be members of a rival gang who had disrespected the MS-13.  Hernandez and several other MS-13 members and associates met in a wooded area behind the park where weapons were distributed and the plan to kill the victims was discussed.  The female associates arrived at the park, led the victims to a predetermined wooded area and sent the MS-13 members a text message notifying them of their arrival.  Hernandez and the other MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness.  One of the intended victims immediately fled and was able to escape.  Llivicura, Lopez, Tigre and Villalobos were surrounded by Hernandez and others, who prevented their escape.  Hernandez, who was armed with a wooden club, helped to lead the victims deeper into the woods where other MS-13 members brutally murdered them with machetes, knives and wooden clubs.  After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods and then fled.  The victims’ bodies were discovered the following evening. 

More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 murders. 

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:

ALEXIS HERNANDEZ
Age: 25
Central Islip, New York

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

Earlier today, in federal court in Central Islip, Ajay Sharma, a citizen of India, was sentenced by United States District Judge Joan M. Azrack to 78 months’ imprisonment for conspiracy to commit wire fraud as part of a large-scale telemarketing scheme.  The Court also ordered Sharma to pay restitution of $3,266,714, and forfeiture in the amount of $1,005,421. 

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

“Today’s sentence demonstrates that defendants like Ajay Sharma, who perpetrate transnational fraud schemes through lies and by instilling fear in their victims, will be brought to justice and pay for their crimes,” stated United States Attorney Peace.  “This case was the result of a coordinated law enforcement response to disrupt fraudulent call centers based in India and protect the public from financial exploitation.”  Mr. Peace thanked William Kalb, Special Agent-in-Charge, Treasury Inspector General for Tax Administration, Northeast Field Division; IRS-CI; the New York City Police Department and the Garden City Police Department for their invaluable assistance with the case.

“Ajay Sharma received a just sentence this morning for relentlessly stealing millions of dollars from innocent Americans by posing as Federal employees,” stated IRS-CI Special Agent-in-Charge Fattorusso.  “IRS Criminal Investigation is determined to dismantle these criminal enterprises who victimize hard working United States citizens for personal gain.   IRS-CI will continue to protect our financial system from fraudsters both abroad and here at home.”

Sharma, as the director and owner of APS Technology, was the leader and organizer of the fraud scheme.  Between January 2018 and September 2018, operating from call centers in India, Sharma and his co-conspirators targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration.  The victims were informed that they owed a sum of money to the United States government, or one of its agencies, and that they would be arrested if the debts were not promptly paid.  After victims wired payments to bank accounts that the defendants had opened in the names of inactive and shell corporations to receive the fraud proceeds, the funds were withdrawn by Sharma and his co-conspirators.   

Four of Sharma’s co-conspirators, Ankur Sharma, Armughanul Asar, Harpreet Singh and Jamal Zafar previously pleaded guilty and are awaiting sentencing.  Two other co-conspirators, Ricardo Urbino and Kamal Zafar are scheduled for trial in March 2022.  

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

The Defendant:

AJAY SHARMA
Age:  45
Mumbai, India

E.D.N.Y. Docket No. 19-CR-024 (JMA)

Earlier today, in federal court in Brooklyn, Eduard Florea was sentenced by United States District Judge Eric R. Komitee to 33 months in prison for transmitting threats to injure others, including threats against now-United States Senator Raphael Warnock, and possessing ammunition after having been convicted of a felony.  Florea pleaded guilty to the charges in August 2021.

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

“With today’s sentence, the defendant faces serious consequences for threatening the life of United States Senator Raphael Warnock as part of his effort to foment violence at the Capital on January 6, 2021 in connection with attempts to overturn the results of the 2020 election,” stated United States Attorney Peace.  “This Office is deeply committed to protecting our democratic institutions and preserving our democracy, and will vigorously prosecute those who would undermine our founding principles as a nation by threatening the safety of our elected representatives or those who seek elected office.”

Florea posted threatening statements online about killing elected officials, including now-United States Senator Warnock, and committing other acts of violence in Washington, D.C., in connection with the certification of the results of the 2020 Presidential Election.  For example, on January 5, 2021, at approximately 8:40 p.m., Florea posted, “We need to all come to an agreement . . . and go armed . . . and really take back Washington.”  A few minutes later, Florea posted, “Tomorrow may very [well] be the day war kicks off . . .”  At 11:53 p.m. the same day, Florea posted, “Warnock is going to have a hard time casting votes for communist policies when he’s swinging with the f***ing fish.”  In the early morning hours of January 6, 2021, at approximately 12:42 a.m., Florea referenced Senator Warnock and stated, “Dead men can’t pass sh*t laws . . .”

On January 6, 2021, after the assault on the United States Capitol had begun, Florea posted that he intended to travel to Washington, D.C., as part of a group armed with firearms ready to engage in additional violence.  Between approximately 2:00 p.m. and 6:00 p.m.—while the Capitol was under siege—Florea posted the following messages, among others:

• “Mine are ready….I am ready…. we need to regroup outside of DC and attack from all sides… talking to some other guys….I will keep watching for the signal.”

• “I am awaiting my orders…armed and ready to deploy….”

• “Guns cleaned loaded . . . got a bunch of guys all armed and ready to deploy . . . we are just waiting for the word”

• “Me and some guys are gearing up to head in. . . . where are you . . . 3 cars already are enroute . . . .all armed.”

• “It’s time to unleash some violence.”

On January 12, 2021, FBI Special Agents and Task Force Officers with the New York Joint Terrorism Task Force executed a search warrant at Florea’s home in Middle Village, Queens.  The search revealed that Florea, who had been previously convicted of a New York state firearms-related felony, illegally possessed more than 1,000 rounds of ammunition.

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

The Defendant:

EDUARD FLOREA
Age: 41
Middle Village, Queens

E.D.N.Y. Docket No. 21-CR-037 (EK)

Earlier today, in federal court in Central Islip, Michael Belfiore, a former medical doctor, was sentenced by United States Circuit Judge Joseph F. Bianco to 23 years in prison for the illegal distribution of oxycodone causing the deaths of two patients and the illegal distribution of oxycodone to those patients and to an undercover detective.  In addition, Belfiore was ordered to forfeit $7,270 in illegal fees that he took from the two deceased patients and the undercover detective and to pay $17,000 in restitution based upon costs associated with the overdose deaths that he caused.  Belfiore was convicted of the charges by a federal jury in May 2018 following a five-week trial.  Belfiore’s medical license has lapsed and he is no longer practicing medicine.

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

“In violation of his oath to do no harm, Belfiore intentionally distributed highly addictive and potentially lethal opioids in dosages and quantities that resulted in the overdose deaths of two of his patients,” stated United States Attorney Peace.  “Today’s sentence sends a strong message that this Office and its law enforcement partners will fight the opioid epidemic and seek serious punishment for medical professionals like Belfiore who betray their profession and use their prescription pads to further addiction, rather than as a tool to heal.  I want to extend my sincere thanks to DEA’s Long Island Tactical Diversion Squad, who tenaciously investigated this case.”   

“During the midst of an opioid epidemic, the defendant chose to use his education and medical training to do harm, and at the expense of two of his patients’ lives,” stated DEA Acting Special Agent-in-Charge Kruskall.  “DEA and its law enforcement partners will continue to seek justice for the victims who have been betrayed and have suffered greatly at that hands of those who were trusted with their health and wellbeing.”  

Belfiore, a former doctor of osteopathic medicine who primarily operated out of an office in Merrick, New York, illegally distributed oxycodone outside the usual course of professional practice and not for a legitimate medical purpose.   Oxycodone is a powerful and highly addictive drug that is increasingly abused because of its potency when crushed into a powder and ingested.  It is a controlled substance that may be dispensed by medical professionals only to patients suffering from significant pain that is documented through medical exams, diagnostic testing—such as x-rays and MRIs—and other objective proof.  Although oxycodone is commonly prescribed in five milligram tablets, the trial evidence showed that Belfiore wrote thousands of 30 milligram prescriptions for oxycodone in quantities of up to 180 pills per month. 

At trial, the evidence established that on February 28, 2013, Belfiore gave an illegal prescription for 120 30 mg oxycodone pills to 42-year-old Edward Martin.   On March 5, Mr. Martin overdosed and died in his bed after snorting the oxycodone obtained from Belfiore’s prescription.  On April 12, 2013, Belfiore gave an illegal prescription for 150 30 mg oxycodone pills to 32-year-old John Ubaghs.  On April 13, 2013, Mr. Ubaghs was found unresponsive after overdosing on oxycodone prescribed by Belfiore, and was pronounced dead at the hospital. 

Between March 2013 and August 2013, Belfiore intentionally dispensed six prescriptions of oxycodone without a legitimate medical purpose to an undercover detective with the NCPD’s Narcotics Vice Squad.  Belfiore created fake medical charts to justify those prescriptions and during office meetings with the undercover detective, Belfiore’s “treatment” consisted of a discussion of the defendant’s trip to San Diego and his interest in helicopters, yachts and cigarette boats.   

The case was investigated by the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, NCPD, Suffolk County Police Department, Port Washington Police Department and the U.S. Department of Health and Human Services, Office of Inspector General.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Charles N. Rose and Bradley T. King are in charge of the prosecution. 

The Defendant:

MICHAEL BELFIORE
Age:  58
Westbury, New York

E.D.N.Y. Docket No. 15-CR-242 (JFB)

Earlier today, in federal court in Central Islip, Dylan Cruz and Richard Michel, members of the Red Lane Gorillas set of the Bloods street gang, pleaded guilty before United States District Judge Joanna Seybert to racketeering charges.  Cruz admitted his roles in two murders committed on Long Island, an attempted murder and conspiring to murder rival gang members in Brooklyn.  Michel admitted his role in a murder committed with Cruz, a kidnapping and an attempted murder of a disloyal Bloods member.  When sentenced, Cruz and Michel each face a maximum sentence 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), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty pleas. 

“With today’s guilty pleas, the defendants have admitted their involvement in a slew of senseless violent crimes, including murders, committed in furtherance of a criminal enterprise, the Bloods gang,” stated United States Attorney Peace.  “This Office, along with its federal and state law enforcement partners, will continue its unrelenting efforts to eradicate gang violence in the district and hold accountable all those who threaten the safety and well-being of our communities.”

According to court filings and statements made by the defendants at the guilty plea proceedings, Cruz and 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.  Additionally, Cruz and Michel engaged in extreme violence against anyone suspected of disloyalty or disrespecting their gang.

Cruz and Michel admitted their roles in the July 15, 2012 murder of Anthony Richard, an individual that they 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 to locate the victim, obtained a firearm, and followed the victim’s vehicle to Baldwin Harbor, New York.  When Richard victim parked his vehicle, Cruz exited the vehicle he was travelling in, walked up to the victim’s car and fired approximately 15 shots into the victim’s vehicle at close range.  Richard was killed and a passenger in the vehicle was wounded.  In addition, Cruz admitted to November 17, 2010 shooting of a rival gang member in Roosevelt, New York, as well as conspiring to kill members of the 5-9 Brims, including the February 20, 2016 shooting of a rival gang member in Queens, New York.  Michel also admitted to the October 13, 2011 kidnapping and assault of a gang member in Hempstead, New York and the September 9, 2016 attempted murder of a disloyal fellow Bloods member in Uniondale, New York.

Cruz also admitted to committing the October 15, 2014 murder of Ehrik Williams in Hempstead, New York.  Cruz wrongly believed that Williams was the individual who had robbed an associate of the defendant.  Cruz walked up behind Williams in broad daylight and fired multiple shots at him, killing him.

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 Defendants:

DYLAN CRUZ (also known as “L Banga” and “Red Lane Banga”)
Age:  30
Brooklyn, New York

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) and (S-3) (JS)

A 14-count indictment was unsealed today in federal court in Brooklyn charging Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Cristian Noe Godinez, Blanca Hernandez Morales, Jose Facundo Zarate Morales and Wayne Peiffer, a Village of Brewster police officer, with conspiracy to transport minors and the transportation of minors, sex trafficking, conspiracy to commit Hobbs Act extortion, promotion of prostitution, use of interstate facilities to commit bribery and related conspiracy counts. 

Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales were arrested earlier today in Queens, New York.  Peiffer was arrested earlier today in Highland, New York.  Godinez is currently a fugitive.  The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.

Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.

“As alleged, the defendants conspired to lure young women and minor girls to travel to the United States based on false promises of a better life and forced them into prostitution once they arrived.  The defendants allegedly received assistance in carrying out this conspiracy from a corrupt police officer who traded the honor of his badge and sworn oath for free sexual services,” stated United States Attorney Peace.  “This Office is committed to bringing sex traffickers to justice and dismantling organizations that victimize women.”  Mr. Peace thanked the Putnam County Sheriff’s Department, Putnam County District Attorney’s Office and Westchester Putnam County Real Time Crime Center for their invaluable assistance with the case.

“As alleged, the individuals named in the indictment were part of an elaborate network of conspirators that used deception and coercion to sell dreams of a better life in the United States to young and impressionable women, who arrived only to be forced into a miserable life of torment, sexual abuse and prostitution at the hands of their captors,” stated HSI Acting Special Agent-in-Charge Patel.  “The criminal organization also allegedly retained the services of a corrupt cop, who betrayed the badge and the people that he swore to protect by being complicit in these deplorable acts and accepting payments in sexual favors. This case involved true collaboration between federal, state and local law enforcement partners to bring the hierarchy of this trafficking organization to justice.”

“Our arrest of a police officer isn't the most egregious facet of this investigation. We allege Mr. Peiffer had sex with the girls being trafficked as payment for his protection of the traffickers. The oath law enforcement officers take affirms they will serve and protect law abiding citizens and vulnerable members of the community, not aid and abet criminals who are abusing young girls and forcing them to have sex against their will. The FBI New York Child Exploitation and Human Trafficking Task Force and our law enforcement partners have done outstanding work searching out the leaders of these criminal organizations and holding them accountable. However, that's only half of the story of their incredible work. Now they're helping the victims through the trauma they experienced, and getting them the help they need to heal,” stated FBI Assistant Director-in-Charge Driscoll.

“The allegations in today’s indictment – that these two illicit organizations were aided for years by a sworn officer who betrayed his solemn oath to protect the public – represent among the most heinous crimes we confront. The NYPD and our law enforcement partners share an unwavering commitment to protect survivors of human trafficking and to ensure that anyone seeking to profit through the abuse and exploitation of others is brought to justice. I commend our NYPD officers, government partners, and the United States Attorney’s Office in the Eastern District of New York for their tireless work in dismantling these entities and for successfully pursuing this important case,” stated NYPD Commissioner Shea.

As set forth in court filings, the charges relate to the operation of two sex trafficking and prostitution organizations – the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business – and the years-long bribery of Peiffer, who allegedly accepted free sexual services by the two organizations in exchange for protecting the organizations from law enforcement detection and arrest. 

Since approximately May 2002, members of the Queens-based Cid-Hernandez Sex Trafficking Organization allegedly engaged in the sex trafficking of young women and minor girls and the promotion of prostitution.  Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales used force, threats of force, fraud and coercion to cause young women and minor girls from Mexico to engage in prostitution in the United States.  Members of the organization pressured the victims to travel to the United States with false promises of employment and a better life.  Once smuggled into the United States, the victims were forced to engage in prostitution.  The young women and minor girls were transported to prostitution clients throughout the State of New York.

The Godinez Prostitution Business also regularly caused women to be transported from a location in Queens to various locations, including Brewster, New York, for the purpose of engaging in prostitution.  Noe Godinez worked as a driver for the Godinez Prostitution Business and transported women along preassigned routes to prostitution clients. 

Both the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business operated in Brewster, where they received protection from Peiffer.  Since at least 2006, Peiffer has been a police officer with the Village of Brewster Police Department (“BPD”).  For more than eight years, Peiffer allegedly directed members of the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business to deliver women to him, including at the BPD police station, so that he could engage in sexual activity with the women at no cost to Peiffer.  In exchange, Peiffer provided the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business protection from arrest, including by advanced warning of law enforcement operations and intervening to prevent arrest.

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 Civil Rights Section.  Assistant United States Attorneys Margaret Lee, Nicholas Moscow and Rachel A. Bennek are in charge of the prosecution.

The Defendants:

LUZ ELVIRA CARDONA
Age:  33
Queens, New York

ROBERTO CESAR CID DOMINGUEZ
Age:  54
Queens, New York

CRISTIAN NOE GODINEZ
Age:  42
Queens, New York

BLANCA HERNANDEZ MORALES
Age:  51
Queens, New York

JOSE FACUNDO ZARATE MORALS
Age:  32
Queens, New York

WAYNE PEIFFER
Age:  48
Highland, New York

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

BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) pleaded guilty to conspiracy to commit money laundering for his role in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. On December 2, 2021, Luis Martinelli Linares, the defendant’s brother, pleaded guilty to engaging in the same scheme.   Today’s proceeding was held before United States District Judge Raymond J. Dearie. 

Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Jay Greenberg, Acting Assistant Director of the Federal Bureau of Investigation’s Criminal Investigative Division (FBI), announced the guilty plea.

“The Martinelli Linares brothers have admitted to establishing secret bank accounts in the names of shell companies in foreign countries and the United States in order to disguise close to $30 million in Odebrecht’s bribe payments to one of their close relatives, a high-ranking public official in Panama,” stated United States Attorney Peace.  “Through the tenacious efforts of the Department of Justice, this Office and our law enforcement partners, the defendants have now been held to account for their corrupt schemes.”

“Ricardo and Luis Martinelli Linares played integral roles in the corrupt scheme to funnel Odebrecht bribes to a high-ranking Panamanian government official,” stated Assistant Attorney General Polite. “They used the U.S. financial system to further their scheme, took steps to create shell company accounts at offshore banks to try to evade responsibility, and used some of the bribe proceeds for their personal benefit. The guilty pleas of Ricardo Martinelli Linares and Luis Martinelli Linares demonstrate that the Department of Justice remains committed to combating corruption at home and abroad. The Criminal Division will work with its law enforcement partners around the globe to hold individuals who use our financial system to promote corruption and launder illicit funds accountable.”

“Today’s guilty plea demonstrates the FBI’s commitment to working with our law enforcement partners around the world to bring justice to those engaged in international corruption,” stated FBI Acting Assistant Director Greenberg. “The Martinelli Linares brothers’ actions not only violated the law, but they also damaged public trust. The FBI will continue to aggressively pursue public officials and their co-conspirators who engage in this type of corrupt scheme.”

The Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company.  On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme. 

At the plea hearing, Ricardo Martinelli Linares admitted that he agreed with his brother, Luis Alberto Martinelli Linares (Luis Martinelli Linares), and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama.  To advance the scheme, Ricardo Martinelli Linares admitted that he agreed with others to cause the wiring of the Odebrecht bribe funds into and out of the United States.

Ricardo Martinelli Linares and Luis Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme.  Luis Martinelli Linares was extradited from Guatemala to the United States on November 15, 2021, and pleaded guilty to conspiracy to commit money laundering for his role in the scheme on December 2, 2021.  Ricardo Martinelli Linares was extradited from Guatemala to the United States on December 10, 2021.

The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares to the United States.  The Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares.  The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, the Federal Office of Justice in Switzerland, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.

The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section.  Assistant United States Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters.  The FBI’s International Corruption Unit in New York is investigating this case.

The Defendants:

LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, Panama

RICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, Panama

E.D.N.Y. Docket No. 21-CR-65 (RJD)

Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, a citizen of Panama and Italy, pleaded guilty today in the Eastern District of New York before U.S. District Judge Raymond J. Dearie for laundering $28 million in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. 

Ricardo Martinelli Linares was extradited to the United States from Guatemala on Dec. 10. On Dec. 2, his co-defendant and brother, Luis Enrique Martinelli Linares (Luis Martinelli Linares), who also was extradited to the United States, pleaded guilty in connection with the same scheme.

“Ricardo and Luis Martinelli Linares played integral roles in the corrupt scheme to funnel Odebrecht bribes to a high-ranking Panamanian government official,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “They used the U.S. financial system to further their scheme, took steps to create shell company accounts at offshore banks to try to evade responsibility, and used some of the bribe proceeds for their personal benefit. The guilty pleas of Ricardo Martinelli Linares and Luis Martinelli Linares demonstrate that the Department of Justice remains committed to combating corruption at home and abroad. The Criminal Division will work with its law enforcement partners around the globe to hold individuals who use our financial system to promote corruption and launder illicit funds accountable.”

According to court documents,  Ricardo Martinelli Linares admitted that he conspired with his brother, Luis Martinelli Linares, and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. These funds were wired into, and out of, the United States.

“The Martinelli Linares brothers have admitted to establishing secret bank accounts in the names of shell companies in foreign countries and the United States in order to disguise close to $30 million in Odebrecht’s bribe payments to one of their close relatives, a high-ranking public official in Panama,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Through the tenacious efforts of the Department of Justice, this Office and our law enforcement partners, the defendants have now been held to account for their corrupt schemes.”

According to court documents, Odebrecht paid more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.

“Today’s guilty plea demonstrates the FBI’s commitment to working with our law enforcement partners around the world to bring justice to those engaged in international corruption,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “The Martinelli Linares brothers’ actions not only violated the law, but they also damaged public trust. The FBI will continue to aggressively pursue public officials and their co-conspirators who engage in this type of corrupt scheme.”

Ricardo Martinelli Linares pleaded guilty to one count of conspiracy to commit money laundering, and agreed to a forfeiture amount of approximately $18.9 million. He is scheduled to be sentenced on May 13, 2022, and faces a maximum penalty of 20 years in prison. U.S. District Judge Dearie will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares to the United States. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, the Federal Office of Justice in Switzerland, law enforcement authorities in Guatemala including the Public Ministry of Guatemala, Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.

The FBI’s International Corruption Unit in New York is investigating this case, and the U.S. Drug Enforcement Administration (DEA) conducted the transport of Ricardo Martinelli Linares from Guatemala to the United States.

Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters. 

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. 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.   

A New York man pleaded guilty today in the Eastern District of New York to sexually assaulting a five-year-old child abroad.

According to court documents, during a trip to Grenada in October 2019, Treverson Roberts, 27, of Brooklyn, a dual United States and Grenadian citizen, forced a five-year-old boy to perform oral sex on him while the boy was temporarily left in Roberts’ care.

Roberts previously pleaded guilty to Grenadian charges related to the abuse but did not receive a sentence of imprisonment. Rather, the Grenadian court fined him $1,500 and required him to pay $600 compensation to the victim.

Roberts pleaded guilty to engaging in illicit sexual conduct with a minor in a foreign place and faces a maximum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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 Rick J. Patel for Homeland Security Investigations (HSI) New York made the announcement.

HSI New York’s Child Exploitation Investigations Unit investigated the case with valuable assistance provided by the HSI Caribbean Attaché Office and the Royal Grenada Police Force.

Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Laura Zuckerwise for Eastern District of New York are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.justice.gov/psc.

Earlier today, in federal court in Brooklyn, Christian O. Dalmau was sentenced by United States District Judge Pamela K. Chen to 28 years in prison for murder in furtherance of a drug trafficking conspiracy and possessing a firearm in connection with that drug trafficking conspiracy.  Dalmau pleaded guilty to those charges in September 2020. 

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

“Dalmau callously murdered the victim over an unpaid drug debt, but today, Dalmau begins to answer for a different debt – the one he owes to society for decades to come for committing these crimes,” stated United States Attorney Peace.  “Today’s sentence underscores the commitment of this Office to protecting our communities from violence and dangerous drugs.”  

Mr. Peace thanked the Buffalo Police Department for its assistance in this case.

From at least 2011 until Dalmau’s arrest in 2015, the defendant was the leader of a large-scale cocaine distribution network operating throughout the northeast, but primarily in New York City, Buffalo, New York, Pennsylvania, Massachusetts and Puerto Rico.  One of the individuals Dalmau supplied with quantities of cocaine was Dustin Ortiz-Maldonado.  According to public filings and statements made during his guilty plea, on January 5, 2014, Dalmau fatally shot Ortiz-Maldonado four times in Buffalo over a dispute involving an unpaid drug debt.  

Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.

The Defendant:

CHRISTIAN O. DALMAU
Age:  35
Bronx, New York

E.D.N.Y. Docket No. 18-CR-250 (PKC)

The Department of Justice announced that it has awarded over $480,000 to the Suffolk County Police Department as part of more than $17 million in grant funding to support the Project Safe Neighborhoods (PSN) Program.  The funding will support a collaborative effort between Suffolk and Nassau Counties to identify and reduce violent crime and strengthen community partnerships and outreach.  The funding will go to the Suffolk County Police Department, the Nassau County Police Department and the Nassau County District Attorney’s Office.  Suffolk County has been receiving PSN grants since 2017 and has split the funding with Nassau County since 2018.

The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.

“The Project Safe Neighborhoods grant will support our efforts to collaborate with the Suffolk and Nassau County Police Departments in developing strategies to reduce gang and gun violence on Long Island.  The grant will also help to strengthen our partnerships with community organizations and expand our community outreach programs.  Together, we will work hard to make our communities safer,” stated United States Attorney Breon Peace.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” stated Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, 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.

This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

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.

Earlier today, in federal court in Central Islip, Amber Schatz was sentenced by United States District Judge Denis R. Hurley to 10 years in prison for conspiring to distribute controlled substances and the possession of a firearm in furtherance of drug trafficking.  Schatz pleaded guilty to these charges in May 2021.

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

“Today’s sentence demonstrates that defendants like Schatz who contribute to the opioid epidemic and put communities at risk by openly selling large quantities of dangerous drugs will face serious consequences,” stated United States Attorney Breon Peace.  “I commend our law enforcement partners at the Federal Bureau of Investigation, the Suffolk County East End Drug Task Force and the Riverhead Police Department who are working tirelessly to remove drug dealers and their guns from the streets of Long Island.”  

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, Suffolk County East End Drug Task Force and the Riverhead Police Department for their work on the case.

According to public filings and statements made by Schatz during her guilty plea, in January 2020, Schatz and her boyfriend, Curtis Prussick, conspired to distribute large quantities of narcotics, including fentanyl.  Following an investigation into community complaints of individuals distributing drugs at public places in Suffolk County, law enforcement determined that Schatz and Prussick regularly sold drugs from parking lots around Rocky Point, New York.  Members of the Suffolk County East End Drug Task Force executed a search warrant at Schatz and Prussick’s residence in Wading River and discovered a large-scale drug distribution operation.  Law enforcement seized over 170 grams of fentanyl, over 125 grams of cocaine and 40 grams of crack cocaine as well as quantities of oxycodone and heroin.  Additionally, materials for packaging drugs, a pill press that the defendants used to press fentanyl into pill form and an assault rifle that they used to protect their drug operation were seized.  Schatz and Prussick were arrested in February 2020 and the charges against Prussick are pending.

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

The Defendant:

AMBER L. SCHATZ
Age:  33
Wading River, New York

E.D.N.Y. Docket No. 20-CR-48 (DRH)

Earlier today, in federal court in Brooklyn, Abraxas J. Discala, also known as “AJ Discala,” the former Chief Executive Officer of OmniView Capital Advisors LLC (“OmniView”), was sentenced by United States District Judge Eric N. Vitaliano to 138 months’ imprisonment for orchestrating a multi-million dollar market manipulation scheme.  The Court also ordered Discala to pay $2,484,873 in forfeiture.  The amount of restitution will be determined by the Court at a later date.  Discala was convicted by a federal jury in May 2018 following a five-week trial of two counts of securities and wire fraud conspiracy, two counts of securities fraud, and four counts 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, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence. 

“Discala conspired to manipulate trading activity in penny stocks in furtherance of a scheme to defraud the securities market and investing public of millions of dollars,” stated United States Attorney Peace. “With today’s sentence, Discala has been held accountable for his crimes and the harm he caused to investors.”  Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their invaluable efforts in the case. 

Discala purported to raise capital for start-up private 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.  Discala and his co-conspirators, including co-defendants Ira Shapiro, Marc Wexler, Matthew Bell, Craig Josephberg, Victor Azrak, Darren Goodrich, Darren Ofsink and Michael Morris, then artificially inflated the stock through manipulative trading and promotional campaigns, generating large profits for themselves at the expense of unwitting investors. 

As part of the fraud, Discala orchestrated a scheme to manipulate the stock price of CodeSmart and Cubed, two of the Manipulated Public Companies.

The CodeSmart Scheme

In early May 2013, Discala and his co-conspirators, including attorney Ofsink, 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 fraudulently inflated CodeSmart’s share price and trading volume on two occasions 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 with false information to facilitate inflating CodeSmart’s stock price.

Discala and his co-conspirators, including Wexler, profited by selling CodeSmart stock, issued to them for pennies, to clients and customers of  Bell, an investment advisor, and  Josephberg, a registered broker.  On some occasions, the CodeSmart shares were sold to Bell’s clients and Josephberg’s customers without their clients’ and customers’ knowledge and consent. Additionally, Bell and Josephberg sold CodeSmart shares in their personal trading accounts at the same time that they purchased CodeSmart stock in their clients’ and customers’ accounts.

Discala, Wexler, Bell, Josephberg, Ofsink and Morris made more than $6 million in illicit trading profits from the CodeSmart scheme, and the co-conspirators caused more than $12 million in losses to approximately 800 CodeSmart investors who purchased the publicly traded stock.

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 Wexler, Bell, Josephberg, Goodrich and Azrak, concocted trading volume in the stock and were able to successfully control the price and volume of Cubed’s stock.  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.

Goodrich, a broker who participated in the scheme to manipulate the stock of Cubed, was previously sentenced to 41-months after pleading guilty to securities fraud conspiracy.  Shapiro, Wexler, Bell, Josephberg, Azrak, Ofsink and Morris also pleaded guilty and are awaiting sentencing.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Shannon C. Jones and Patrick T. Hein are in charge of the prosecution.  Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

ABRAXAS J. DISCALA (also known as “AJ Discala”)
Age:  50
Darien, Connecticut

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

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Bruce Snipas, the owner and pharmacist-in-charge of B&E Pharmaceuticals, Inc. (“B&E”) in Rego Park, New York, with conspiracy to make false statements in health care matters, making false statements in health care matters and conspiracy to violate the Anti-Kickback Statute.  Snipas was arrested this morning and arraigned this afternoon before United States Magistrate Judge Robert M. Levy.  The defendant was released on a $150,000 bond.

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 arrest and charges.

“As alleged, the defendant, a pharmacist and health care professional, engaged in a fraudulent scheme to take advantage of the Medicaid program and profit by accepting hundreds of thousands of dollars in kickbacks,” stated United States Attorney Peace.  “This Office is committed to protecting the integrity of government programs, including health insurance programs like Medicaid that benefit the district’s most vulnerable residents.”  United States Attorney Peace also thanked the United States Department of Health and Human Services, Office of Inspector General and the Department of Defense, Office of Inspector General.

“Snipas, as alleged, received hundreds of thousands of dollars in kickbacks while helping a health care company cover up their processing of fraudulent claims totaling more than $30 million. The FBI will continue our efforts to protect government-sponsored programs that exist to serve the interests of those within our community who need them most and private insurance programs that are adversely affected by this type of fraud,” stated FBI Assistant Director-in-Charge Driscoll.

As alleged in the indictment, from approximately April 2015 to February 2018, Snipas conspired with a Florida-based health care company (the “Health Care Company”) to conceal the Health Care Company’s involvement in processing over $30 million in fraudulently obtained prescription claims by B&E from various health care programs, including New York Medicaid.  Snipas repeatedly made false claims to Federal and State regulators and pharmacy boards concealing the Health Care Company’s involvement in the operations of B&E.   In exchange for assisting the Health Care Company in processing the prescriptions through B&E, Snipas received approximately $650,000 in kickbacks from the Health Care Company.

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

The case is being handled by the Office’s Health Care Fraud Task Force.  Assistant United States Attorneys Erin E. Argo and Brian Morris are in charge of the prosecution.

The Defendant:

BRUCE SNIPAS
Age:  68
West Islip, New York

E.D.N.Y. Docket No. 21-CR-605 (MKB)

Earlier today, in federal court in Central Islip, Richard “Rob” Walker, the former Chief Deputy County Executive under former Nassau County Executive Edward Mangano, was sentenced by United States District Judge Joan M. Azrack to 18 months in prison for obstruction of justice.  The Court also ordered Walker to pay $5,000 in forfeiture, imposed a $5,500 fine and perform 2,000 hours of community service as part of his sentence.  Walker pleaded guilty to the charge in May 2019.

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

“While occupying an important position of public trust, Walker accepted illicit payments from a contractor, encouraged the contractor to commit perjury before a federal grand jury, and lied to the FBI to cover up his crimes,” stated United States Attorney Peace.  “This Office will prosecute corrupt officials like Walker who seek to obstruct justice and abuse the public trust.”  Mr. Peace also expressed his thanks to Internal Revenue Service-Criminal Investigation for its help during the investigation.

“Public officials have a great responsibility to uphold the public’s trust and make legal and ethical decisions that serve to benefit their communities. Rob Walker did just the opposite when he accepted illicit payments from a contractor working for Nassau County and later attempted to cover his tracks and change his story once he realized the FBI was onto him. As we’ve said in the past, there’s no way to undo what’s already been done—a lesson that’s surely been reinforced today,” stated FBI Assistant Director-in-Charge Driscoll.

In 2014, Walker, who was then the Chief Deputy Nassau County Executive, accepted a $5,000 cash payment from a contractor who was performing work pursuant to a contract for Nassau County.  In 2017, Walker learned that the United States Attorney’s Office for the Eastern District of New York and the FBI had opened a grand jury investigation of potential corruption in Nassau County government, including the circumstances surrounding the $5,000 payment made by the contractor to the defendant. Walker spoke to the contractor on several occasions and attempted to persuade him to conceal the existence of the $5,000 payment from the grand jury, or to provide a false explanation to the grand jury concerning the transaction, for example, saying it was repayment of a loan. Walker arranged to meet the contractor in a park in Hicksville, New York, and at that meeting, gave the contractor an envelope containing $5,000 in an effort to make it appear as if the payment Walker accepted “never happened.”  Later, when he was interviewed by the FBI concerning the payment, Walker denied ever having received any cash payments from the contractor.

As recounted in consensually recorded conversations, Walker repeatedly claimed that the payment did not have to be disclosed to the grand jury if he returned it to the contractor.  On one occasion, Walker said, “you [the contractor] only borrowed it and I gave it back to you…there was never a quid pro quo,” and if he returned the money, “it doesn’t exist…wouldn’t you rather it not existing?” 

In another recorded conversation, Walker untruthfully stated, “[j]ust be honest.  I borrowed the money from you.  I gave it back to you…My mother-in-law was sick…it’s over.”  During the exchange, which was recorded by law enforcement, Walker stated, “it [the money] doesn’t exist. That’s it.”  When the contractor asked if he is “not saying a word [to the grand jury]?” Walker confirmed, “[n]ope, doesn’t exist.” 

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Artie McConnell and Catherine M. Mirabile are in charge of the prosecution.

The Defendant:

RICHARD WALKER (also known as “Rob Walker”)
Age: 43
Hicksville, New York

E.D.N.Y. Docket No. 18-CR-087 (JMA)

A criminal complaint was unsealed today in federal court in Central Islip charging Robert Fehring with mailing letters threatening to assault, shoot, and bomb LGBTQ+ affiliated individuals, organizations, and businesses. Fehring was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Steven I. Locke.

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 arrest.

“As alleged, the defendant's hate-filled invective and threats of violence directed at members of the LGBTQ+ community have no place in our society and will be prosecuted to the fullest extent of the law," stated United States Attorney Peace.  “This Office is firmly committed to protecting the civil rights of all members of every community in this district, including the LGBTQ+ community and other minority communities.”  Mr. Peace thanked the Suffolk County Police Department for their invaluable assistance with the investigation.

“Fehring’s alleged threats to members of the LGBTQ+ community were not only appalling, but dangerous, despite the fact he hadn’t yet acted on his purported intentions,” stated FBI Assistant Director-in-Charge Driscoll.  “As the primary federal agency responsible for investigating civil rights violations, the FBI takes all threats of this nature seriously. If you or someone you know has received a similar threat, report it to us by calling 1-800-CALLFBI. In an emergency, always call your local police department.”  

As set forth in the complaint, since at least 2013, Fehring has been sending individuals associated with the LGBTQ+ community letters in which he threatened violence, including threatening the use of firearms and explosives. One letter threatened that there would “be radio-cont[r]olled devices placed at numerous strategic places” at the 2021 New York City Pride March with “firepower” that would “make the 2016 Orlando Pulse Nightclub shooting look like a cakewalk,” referencing the 2016 attack in which 49 persons were killed and dozens wounded at Pulse, a gay nightclub in Orlando, Florida. 

Fehring is also alleged to have a sent a letter threatening the organizer of a June 2021 Pride event in East Meadow, New York, which stated:

“[W]e were right there you…FREAK!!!  They couldn’t get a shot off at you, slithering around the back stage area like a snake.  Too many cops.  Very disappointed.  But your time has come. . .. They are out to KILL you….and your boyfriend.  You are being watched.  No matter how long it takes, you will be taken out…. high-powered bullet…. bomb….knife…. whatever it takes.”

On November 18, 2021, members of the FBI’s Civil Rights Squad and the New York Joint Terrorism Task Force executed a search warrant at Fehring’s home in Bayport, New York, and recovered photographs from a June 2021 Pride event in East Meadow, New York, two loaded shotguns, hundreds of rounds of ammunition, two stun guns, and a stamped envelope addressed to an LGBTQ+ affiliated attorney containing the remains of a dead bird. 

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section, Long Island Criminal Division and Civil Rights Section. Assistant United States Attorneys Francisco J. Navarro, Rachel A. Bennek, and Andrew P. Wenzel are in charge of the prosecution.

The Defendant:

ROBERT FEHRING
Age:  74
Bayport, New York

E.D.N.Y. Docket No. 21-MJ-1363

An indictment was unsealed today in federal court in Central Islip charging Jeffrey Slothower, a former registered investment adviser and founder of the New York investment advisory firm Battery Private, Inc. (“Battery Private”), with wire fraud, investment adviser fraud, and money laundering in connection with a scheme to misappropriate more than $1 million from current and prospective clients.  Slothower was arrested earlier today in Southampton, New York, and will make his initial appearance via videoconference this afternoon before United States Magistrate Judge Steven L. Tiscione.

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 arrest and charges. 

“As alleged, Slothower executed a calculated scheme in which he repeatedly lied to his current and prospective clients about putting their money into legitimate investments, when in reality he stole their money to fund his lavish lifestyle,” stated United States Attorney Peace.  “This Office will vigorously investigate and prosecute corrupt financial advisers like the defendant who abuse their clients’ trust and violate the law to enrich themselves.”  Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.

“Slothower joins the long-running list of those who exploit their position as investment advisors to siphon funds from their investors directly into their own pockets. This type of behavior is not only damaging to investors, but to the overall economy as well. The FBI continues with our dedicated efforts to investigate those who commit this type of fraud wherever and whenever we can,” stated FBI Assistant Director-in-Charge Driscoll.

As set forth in the indictment, Slothower was the founder and operator of Battery Private, a New York investment advisory firm.  While operating Battery Private, Slothower solicited business from Victim-1 and Victim-2, a couple from California whose money Slothower had managed at another financial services firm.  Slothower promised the victims he could beat any rate of return they were receiving and do so without market risk.  Victim-2 thereafter signed an investment advisory contract with Battery Private.  Slothower continued soliciting Victim-1’s business, and, in 2017, he offered to invest Victim-1’s money into what Slothower described as bonds backed by homeowner’s association fees (the “HOA Bonds”), which would pay Victim-1 an eight percent return.   Based on these representations, Victim-1 agreed to invest money with Slothower through Battery Private. 

Slothower sent Victim-1 wiring instructions for his investment and attached a document that made additional representations about Victim-1’s purported investment, claiming that Victim-1’s money would be held in the “capital reserves” of Battery Private.  Thereafter, between January 25, 2017 and January 27, 2017, Victim-1 sent more than $500,000 to Slothower at Battery Private to be invested in the purported HOA Bonds.  However, that money was not invested in HOA Bonds or held in “capital reserves” as represented by Slothower; instead, Slothower used that money to, among other things, wire money to himself, purchase a luxury automobile and pay fees for a private golf club on Long Island.  To further the fraudulent scheme, Slothower thereafter made payments to Victim-1 that were falsely represented as quarterly distributions from Victim-1’s investment. 

Later, Slothower sought out additional funds and asked Victim-1 to find money to invest including money from Victim-2 who was then a Battery Private client.  Victim-2 learned about the HOA Bond investment from Victim-1, including the fact that Victim-1 had been receiving purported quarterly returns from the investment.  Thereafter, Victim-2 agreed to invest in the same purported HOA Bonds, and in or about December 2017, Victim-2 sent more than $500,000 to Slothower at Battery Private that was for investment in the HOA Bonds.  However, like Victim-1, Victim-2’s money was not invested in HOA Bonds or held in “capital reserves” as represented by Slothower.  Instead, Slothower used that money to, among other things, pay personal credit card bills.  To further the fraudulent scheme, Slothower made payments to Victim-2 that were falsely represented as quarterly distributions from Victim-2’s investment

In June 2018, Victim-1 made an additional investment of approximately $84,000 into the purported HOA Bonds.  Again, Slothower did not invest that money in HOA Bonds or hold it as “capital reserves,” as he previously represented.  Instead, Slothower used Victim-1’s money to, among other things, make purported quarterly payments to Victim-1 and Victim-2 that were falsely represented as their investment returns and to pay the private golf club on Long Island.

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

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Drew G. Rolle and Michael Bushwack are in charge of the prosecution.

The Defendant:

JEFFREY SLOTHOWER
Age:  43
Southampton, New York

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

Anderson Sanchez, an associate of the Leeward Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty yesterday in federal court in Central Islip to racketeering charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos.  The proceeding was held before United States Magistrate Judge Steven I. Locke.  

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 Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“With today’s guilty plea, Sanchez admits to being a willing participant in the stabbing and beating deaths of four young men for their alleged ‘disrespect’ of the MS-13 and is held accountable for his horrific crime,” stated United States Attorney Peace. “This Office and the Long Island Gang Task Force will not rest until the brutality of the MS-13 gang is eliminated for good from our communities.”  

According to court filings and statements by the defendant at the guilty plea proceeding, on the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip where they were attacked and killed.  The MS-13 members and associates believed the victims to be members of a rival gang who had disrespected the MS-13.  Sanchez and several other MS-13 members and associates met in a wooded area behind the park where weapons were distributed and the plan to kill the victims was discussed.  The female associates arrived at the park, led the victims to a predetermined wooded area and sent the MS-13 members a text message notifying them of their arrival.  Sanchez and the other MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness.  One of the intended victims immediately fled and was able to escape.  Llivicura, Lopez, Tigre and Villalobos were surrounded by Sanchez and others, who prevented their escape, while other MS-13 members, armed with machetes, knives, and wooden clubs, led the victims deeper into the woods where they were brutally murdered.  After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods and then fled.  The victims’ bodies were discovered the following evening. 

More than a dozen MS-13 members and associates have been charged in connection with the April 11 murders. 

When sentenced, Sanchez faces a maximum sentence of life in prison.  Upon completion of his sentence, he faces deportation from the United States.

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:

ANDERSON SANCHEZ
Age: 22
Central Islip, New York

E.D.N.Y. Docket No. 21-CR-101 (JFB)

Luis Enrique Martinelli Linares (Luis Martinelli Linares), 39, a citizen of Panama and Italy, pleaded guilty today in the Eastern District of New York before U.S. District Judge Raymond J. Dearie for laundering $28 million in connection with a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.

According to court documents, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.

Luis Martinelli Linares admitted that he agreed with his brother, Ricardo Alberto Martinelli Linares, and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. To advance the scheme, Luis Martinelli Linares agreed with others to cause the wiring of the Odebrecht bribe funds into and out of the United States, and used some of the proceeds of the scheme to purchase a yacht and a condominium in the United States.

Luis Martinelli Linares pleaded guilty to one count of conspiracy to commit money laundering. He also agreed to a forfeiture amount of approximately $18.9 million. He is scheduled to be sentenced on May 20, 2022, and faces a maximum penalty of 20 years in prison. Judge Dearie will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Ricardo Alberto Martinelli Linares was arrested, along with his brother Luis Martinelli Linares, at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on Feb. 4, 2021, in a five-count indictment in connection with this bribery and money laundering scheme. The United States continues its efforts to have Ricardo Martinelli Linares returned to the United States to face justice.

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 Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.

The FBI’s International Corruption Unit in New York is investigating this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Luis Martinelli Linares.

Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters. 

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. 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.   

An indictment is merely an allegation, and Ricardo Alberto Martinelli Linares is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Luis Enrique Martinelli Linares (Luis Martinelli Linares) pleaded guilty to conspiracy to commit money laundering for his role in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.  The proceeding was held before United States District Judge Raymond J. Dearie.

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

The Odebrecht scheme involved a conspiracy to pay more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world, to obtain and retain business for the company.  On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. 

At today’s plea hearing, Luis Martinelli Linares admitted that he entered into a conspiracy with his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), and others, to establish offshore bank accounts in the names of shell companies in order to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama.  To advance the scheme, Luis Martinelli Linares admitted that he and others caused Odebrecht bribe funds to be wired into and out of the United States and used certain wire transfers involving the proceeds of the scheme to purchase a yacht and a condominium in the United States.

Luis Martinelli Linares and Ricardo Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme.  The United States has also requested to extradite Ricardo Martinelli Linares, and those proceedings are ongoing.

The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section.  Assistant United States Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters.  The FBI’s International Corruption Unit in New York is investigating this case.

The Defendants:

LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, Panama

RICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, Panama

E.D.N.Y. Docket No. 21-CR-65 (RJD)

Earlier today, in federal court in Central Islip, Vincent J. Trimarco, Jr., an attorney admitted to practice law in New York State since 1997, was sentenced by United States District Judge Joan M. Azrack to 57 months in prison for conspiracy to commit mail and wire fraud in a scheme to defraud a minor of her inheritance from a federal wrongful death lawsuit.  The Court also ordered Trimarco to pay restitution in the amount of $1.5 million, and forfeiture in the amount of $1.5 million.  Trimarco pleaded guilty to the charges in October 2020.

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

“Trimarco’s theft of a seven-figure inheritance from a child so that he could purchase luxury vehicles and invest in real estate is a disgraceful breach of trust and betrayal of his time-honored duties as an attorney.  His conduct is an affront to the courts, the bar and the community at large,” stated United States Attorney Peace.  “Today’s sentence should serve as a warning that this Office will prosecute corrupt attorneys who abuse their positions and break the law for personal gain.” 

From April 2012 through August 2017, Trimarco and a co-conspirator executed a scheme to defraud a minor, who was the co-conspirator’s grandchild, of settlement proceeds stemming from a wrongful death action.  Using the settlement proceeds, Trimarco and the co-conspirator purchased luxury vehicles, including a Ferrari F430 Spider for $200,000 and a Jaguar XKR convertible for $57,000, as well as multiple properties in Suffolk County for over $600,000, and invested approximately $800,000 in the Emporium, a now-defunct nightclub and music venue in Patchogue, New York, in which Trimarco was, at times, a part owner.  Despite orders from the Suffolk County Surrogate’s Court in April 2012, June 2012 and August 2012 restraining the disbursement of the settlement proceeds and ultimately directing that they be returned, Trimarco and his co-conspirator sold the assets that they purchased with the settlement proceeds, but did not return the proceeds to the rightful heir.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Catherine M. Mirabile and Michael J. Bushwack are in charge of the prosecution, with the assistance of Assistant United States Attorney Madeline O’Connor, who is handling forfeiture matters.

The Defendant:

VINCENT J. TRIMARCO, Jr.Age:  52
Smithtown, New York

E.D.N.Y. Docket No. 17-CR-583 (S-1) (JMA)

Earlier today, in federal court in Brooklyn, Elgin Brack was sentenced by United States District Judge Eric N. Vitaliano to 43 years’ imprisonment for his role in the armed robberies of four convenience stores in Queens.  Elgin Brack was convicted following a two-week trial in March 2020 of three counts of robbery, one count of attempted robbery, one count of conspiracy to commit robbery, one count of discharging a firearm during a crime of violence and three counts of brandishing a firearm during a crime of violence.  As part of his sentence, the Court also ordered Elgin Brack to pay $1,264,536.86 in restitution.  Elgin Brack’s co-defendant, Scott Brack, pleaded guilty in November 2019 for his participation in the robbery conspiracy and is awaiting sentencing.

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 Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.

“With today’s sentence, the defendant is deservedly punished for brutally shooting an innocent employee in the head and hand, and for committing violent armed robberies of convenience stores that jeopardized the safety of innocent people,” stated United States Attorney Peace.  “This Office will continue to vigorously prosecute defendants like Brack who engage in gun violence that threatens the safety of the community and endangers customers and hardworking store employees.”

“Our NYPD officers work tirelessly to prevent and fight the kind of violent crime that threatens the fabric of life for everyone in our city. This sentence today strengthens our commitment to the public and highlights the joint work of our NYPD officers, law enforcement partners and prosecutors from the United States Attorney’s Office in the Eastern District of New York in achieving a measure of justice in this case,” stated NYPD Commissioner Shea.

During the early morning hours of November 26, 2018, Elgin Brack robbed at gunpoint a Duane Reade store, a 7-Eleven, and two Rite-Aid stores.  During each robbery, Elgin Brack pretended to make a purchase.  When the store employee opened the cash register drawer to complete the sale, the defendant brandished a .357 Magnum revolver, pointed it at the cashier and demanded money.  During the first robbery, the defendant shot the Duane Reade store clerk in the hand and the head and then fled emptyhanded.  The victim survived the shooting.  After each robbery, Elgin Brack was picked up by a getaway car driven by his uncle and co-defendant Scott Brack.   

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

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Jonathan Siegel and Jonathan P. Lax are in charge of the prosecution.  Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Recovery Section is handling the forfeiture matters.

The Defendant:

ELGIN BRACK
Age: 24
Brooklyn, New York

Co-Defendant Who Previously Pleaded Guilty:

SCOTT BRACK
Age: 51
Bronx, New York

E.D.N.Y. Docket No. 18-CR-684 (ENV)

Earlier today, in federal court in Brooklyn, Michael Liburd, a member of the Coney Island-based street gang known as the West End Enterprise, was sentenced by United States District Court Judge Edward R. Korman to 32 years’ imprisonment following his conviction for racketeering conspiracy, including his participation in the 2016 murder of Antwon Flowers and the extortion of public works employees in Coney Island. The defendant pleaded guilty to the charges on November 18, 2021.

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), Keith Kruskall, Acting Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Today’s sentence not only holds the defendant accountable for his numerous acts of violence, but also sends a powerful message that this Office and its law enforcement partners are committed to aggressively prosecuting members of violent street gangs.  We will do all we can to make our communities safe,” stated United States Attorney Peace.  Mr. Peace thanked the New York City Housing Authority Office of the Inspector General for their assistance in the investigation and prosecution.

“This case is yet another example of the deadly relationship between drugs and violence,” stated DEA Acting Special Agent-in-Charge Kruskall.  “The sentence imposed sends a message to other criminal organizations that law enforcement will not tolerate these brazen acts of violence in our communities.  I commend the tireless efforts of all our law enforcement partners in bringing this dangerous perpetrator to justice.”

Liburd was a member of the West End Enterprise, a street gang composed of individuals residing in and around the Sea Rise Apartments, the Gravesend Houses and Surfside Gardens, also known as the “Mermaid Houses,” located in Coney Island.  Liburd and his co-conspirators committed multiple crimes, including the extortion of public works employees at a Brooklyn construction site, violent robberies, witness intimidation and retaliatory shootings against members of a rival gang known as “Sex Money Murder,” and the January 17, 2016 murder of Antwon Flowers. 

Liburd murdered Flowers in retaliation for the victim’s purported role in the killing of a West End Enterprise leader the previous day.  As captured on surveillance video, Liburd and his co-conspirators followed Flowers as he exited the Mermaid Houses, at which point, the defendant pulled out a gun and shot Flowers in the back of the head, killing him instantly.  Liburd’s co-defendant Maurice Washington was previously sentenced to 25 years’ imprisonment for his role in the racketeering conspiracy and murder.

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

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Jennifer M. Sasso, Kayla C. Bensing and Lindsey R. Oken are in charge of the prosecution. 

The Defendant:

MICHAEL LIBURD (also known as “Mike Mike” and “Mitty”)
Age:  35
Brooklyn, New York

E.D.N.Y. Docket No. 17-CR-296 (ERK)

Earlier today, at the federal courthouse in Brooklyn, Gonzalo Ortiz pleaded guilty to investment adviser fraud in connection with a scheme to defraud an investor of nearly $600,000 by making false representations about his trading expertise and the profitability of various investments.  The proceeding was held before United States District Judge William F. Kuntz, II. 

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 guilty plea.

“Ortiz masqueraded as an experienced stock trader who could substantially increase the victim’s savings, but instead he stole close to a quarter million dollars of the victim’s money to use for his own personal benefit,” stated United States Attorney Peace.  “This Office will continue to prosecute and hold accountable those who engage in fraud and steal the hard-earned money of investors.”  Mr. Peace expressed his appreciation to the United States Securities and Exchange Commission, New York Regional Office, for its assistance in this case.

“Ortiz misrepresented to his victim his ability to invest funds in a profitable way, not only causing a significant loss in value, but also reserving a good deal of the money for his own personal benefit,” stated FBI Assistant Director-in-Charge Driscoll.  “Investment fraud schemes are all too common, often causing emotional trauma to those affected. Our office is committed to investigating this type of criminal activity and holding the perpetrators accountable.”

Between approximately April 2015 and May 2017, Ortiz falsely represented himself to an investor (the “Victim”) as a successful investment adviser who had made profits for other individuals by trading stocks on their behalf.  Ortiz convinced the Victim to allow him to invest the Victim’s money, promising significant returns.  Based on those misrepresentations, the Victim made successive investments with Ortiz over a period of years.  During this time, Ortiz falsely told the Victim that the investments were profitable and sent the Victim a false account statement to support these claims.  In reality, Ortiz made poor trading decisions that resulted in the loss of a portion of the Victim’s money, and also stole some of the Victim’s money for himself, siphoning off portions of the investments to pay for personal expenses including clothing, food and car payments.  Ortiz controlled nearly $600,000 of the Victim’s money, stole approximately $224,500 for himself and lost a significant amount of the Victim’s money to unprofitable trades. 

The case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.

The Defendant:

GONZALO ORTIZ
Age: 48
Hackensack, New Jersey

E.D.N.Y. Docket No. 19-CR-161 (WFK)

Earlier today, at the federal courthouse in Brooklyn, Brendan Hunt was sentenced by United States District Judge Pamela K. Chen to 19 months’ imprisonment for threatening to assault and murder members of the United States Congress to impede, interfere with and intimidate those members and to retaliate against them on account of their performance of their official duties.  Hunt was convicted of that charge after a jury trial in April 2021, which was the first trial to address the consequences of the January 6, 2021 assault on the Capitol. 

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

 “We will not tolerate threats to members of the United States Congress or calls to overthrow our democratically elected government,” stated United States Attorney Peace.  “Not only will we investigate and vigorously prosecute these crimes, but today’s sentence sends a clear message that those who seek to harm our representatives and bring chaos to our democracy will be punished.”

On January 8, 2021, two days after the violent attack on the U.S. Capitol in Washington, D.C., Hunt posted a video titled “KILL YOUR SENATORS” that included the summary “Slaughter them all,” to BitChute, an Internet-based video sharing site.  In the video, Hunt made dangerous additional threats, exhorting his viewers to violence and telling them that “[w]e need to go back to the U.S. Capitol when all of the Senators and a lot of the Representatives are back there, and this time we have to show up with our guns.  And we need to slaughter these m-----f-----s.”  Hunt also advocated for the violent overthrow of the federal government, claiming that “our government at this point is basically a handful of traitors . . . so what you need to do is take up arms, get to D.C., probably the inauguration . . . so called inauguration of this m-----f-----g communist Joe Biden . . . [T]hat’s probably the best time to do this, get your guns, show up to D.C., and literally just spray these m-----f-----s . . . put some bullets in their f------g heads.”  Hunt stated, “If anybody has a gun, give me it, I’ll go there myself and shoot them and kill them . . . [W]e have to take out these Senators and then replace them with actual patriots.  This is a [Zionist Occupied Government].” 

On January 9, 2021, the defendant posted another video in which he stated “[t]hose 100 Senators should really be afraid about going into public now” and that “We have the first amendment, that’s still around, remember?  And we have the second as well.  There are really only a hundred of these weakling Senators.  They are mass murdering psychopaths who are intent on our destruction, and they form an illegitimate government.  Every single one of them just needs to go.”

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys David K. Kessler, Ian C. Richardson and Francisco J. Navarro are in charge of the prosecution.

The Defendant:

BRENDAN HUNT
Age: 37
Ridgewood, Queens

E.D.N.Y. Docket No. 21-CR-086 (PKC)

A New York man was sentenced today to 200 months, more than 16 years, in prison for attempting to provide material support and resources to the designated foreign terrorist organizations the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front.

Elvis Redzepagic, 30, of Commack, pleaded guilty in April 2021. According to court documents, in early 2015, Redzepagic began communicating with an individual he believed to be both the commander of a battalion in Syria and a member of ISIS or the al-Nusrah Front, and made attempts to join that individual’s battalion to engage in violent jihad. In July 2015, Redzepagic traveled to Turkey and made multiple unsuccessful attempts to cross the border into Syria. Unable to enter Syria from Turkey, Redzepagic traveled to Jordan in August 2016, but was stopped and deported by Jordanian authorities.

In Facebook messages from October 2015, Redzepagic explained that “jihad” is when “you fight for the sake of God” and “die for the sake of Allah.” Redzepagic stated that he traveled to Turkey to “perform Jihad and join Jabhat Al-Nusra.” He predicted, “there will come a time where people will only know to say Allahu Akbar.” In subsequent interviews with law enforcement, Redzepagic admitted that at the time he attempted to enter Syria, he was prepared to strap a bomb to himself.

A search of the defendant’s laptop yielded a variety of ISIS-specific extremist propaganda, including ISIS nasheeds, or Islamist hymns, including the “ISIS Anthem” in English. Redzepagic also repeatedly accessed the website “Put hilafeta,” or “Way to the Caliphate,” a Bosnian-language website for prospective foreign fighters from the Balkans who primarily sought to join ISIS and wage jihad in Syria.

The FBI investigated the case. Valuable assistance was provided by the Justice Department’s Office of International Affairs, the FBI Legal Attaché Office for Serbia, and the Government of Montenegro Ministry of Justice, Prosecutor’s Office and Special Police Unit.

Assistant U.S. Attorneys Saritha Komatireddy and Artie McConnell for the Eastern District of New York and Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section prosecuted the case.

CENTRAL ISLIP, NY — Earlier today, at the federal courthouse in Central Islip, Elvis Redzepagic was sentenced by United States District Judge Denis R. Hurley to 200 months’ imprisonment for attempting to provide material support and resources to the designated foreign terrorist organizations the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front. Redzepagic, a U.S. citizen, pleaded guilty to the charge in April 2021.

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

“With the imposition of today’s lengthy sentence, Redzepagic pays a steep price for his misguided embrace of terrorism and his attempts to join ISIS and the al-Nusrah Front in order to wage violent jihad,” stated United States Attorney Peace.  “This Office, together with our law enforcement partners, will remain vigilant in protecting the public from terrorist threats and in thwarting their violent attacks here and abroad.”

Mr. Peace thanked the Justice Department’s Office of International Affairs, the FBI Legal Attaché Office for Serbia, and the Government of Montenegro Ministry of Justice, Prosecutor’s Office, and Special Police Unit for their assistance in this case.     

In early 2015, Redzepagic began communicating with an individual he believed to be both the commander of a battalion in Syria and a member of ISIS or the al-Nusrah Front, and made attempts to join that individual’s battalion to engage in violent jihad.  In July 2015, Redzepagic traveled to Turkey and made multiple unsuccessful attempts to cross the border into Syria.  Unable to enter Syria from Turkey, Redzepagic traveled to Jordan in August 2016, but was stopped and deported by Jordanian authorities. 

In Facebook messages from October 2015, Redzepagic explained that “jihad” is when “you fight for the sake of God” and “die for the sake of Allah.”  Redzepagic stated that he traveled to Turkey to “perform Jihad and join Jabhat Al-Nusra.”  He predicted, “there will come a time where people will only know to say Allahu Akbar.”   

A search of the defendant’s laptop yielded a variety of ISIS-specific extremist propaganda, including ISIS nasheeds, or Islamist hymns, including the “ISIS Anthem” in English.  Redzepagic also repeatedly accessed the website “Put hilafeta,” or “Way to the Caliphate,” a Bosnian-language website for prospective foreign fighters from the Balkans who primarily sought to join ISIS and wage jihad in Syria.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Saritha Komatireddy and Artie McConnell are in charge of the prosecution, with assistance provided by Trial Attorney Stephanie Sweeten of the National Security Division’s Counterterrorism Section.

The Defendant:

ELVIS REDZEPAGIC
Age: 30
Commack, New York

E.D.N.Y. Docket No. 17-CR-228 (DRH)

Earlier today, at the federal courthouse in Brooklyn, Ali Saleh, a U.S. citizen from Queens, New York, was sentenced by United States District Judge William F. Kuntz, II, to 30 years’ imprisonment for attempting to provide material support and resources to the designated foreign terrorist organization the Islamic State of Iraq and al-Sham (ISIS).  Saleh pleaded guilty to the charge in July 2018. 

Saleh was also sentenced to 100 months’ imprisonment for assaulting a federal correctional officer and possessing contraband at the Metropolitan Detention Center in Brooklyn, New York (the “MDC”) to run consecutive to the terrorism sentence.  Saleh pleaded guilty to the charge in June 2019. 

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

“Today’s sentence demonstrates the strong commitment of this Office and its law enforcement partners to rooting out and prosecuting dangerous jihadists like Saleh and stopping their efforts to support terrorist attacks at home or abroad,” stated United States Attorney Peace.  “Saleh is also held accountable for his vicious and premeditated attack on a federal correctional officer while in pre-trial detention.”  

“Saleh made numerous attempts to travel overseas to join ISIS, and when those efforts failed, attempted to assist others in joining the terrorist organization,” stated AAG Olsen. “Once arrested and detained, he attacked a correctional officer with an improvised weapon. With the sentences handed down today, he is being held accountable for these crimes. The National Security Division is committed to identifying and holding accountable those who seek to provide material support to foreign terrorist organizations and we will be unyielding in our efforts to bring to justice those who commit violence against the men and women in law enforcement and corrections. I want to thank the agents, analysts and prosecutors who are responsible for this case.”

“Ali Saleh’s attempts to support ISIS, and his subsequent attack on a federal correctional officer, resulted in the penalties enforced upon him today. The FBI’s JTTF here in New York, along with our partners, continues to lead the way in preventing and intercepting threats posed by those like Saleh, who seek to harm our citizens at home and overseas,” stated FBI Assistant Director-in-Charge Driscoll.

Attempting to Provide Material Support to ISIS

Starting in 2013 and thereafter, Saleh swore an oath of allegiance to ISIS and embraced ISIS’s directive to either travel to the Middle East to fight for ISIS or take action at home in support of ISIS.  On August 25, 2014, Saleh stated online, “I’m ready to die for the Caliphate, prison is nothing.”  On August 28, 2014, Saleh stated online, “Lets be clear the Muslims in the khilafah [caliphate] need help, the one who is capable to go over and help the Muslims must go and help.”  That same day, Saleh made an airline reservation to travel from New York to Turkey, a country bordering Syria.  Saleh was ultimately prevented from traveling because his parents took away his passport.

Saleh then redirected his efforts to facilitating others’ support of ISIS.  In October 2014, Saleh communicated with an ISIS supporter in Mali through an online messaging platform and sent a wire transfer in the amount of $500 to fund that person’s travel to Syria.  Around the same time period, Saleh communicated with several other individuals in an effort to facilitate their support of ISIS, including known ISIS supporters in the United Kingdom and Australia. 

In July 2015, Saleh purchased 48 pyrotechnic mortars (large, tube-fired fireworks described as “artillery shells” on the packaging and containing explosive powder), stored them in a hidden area in the trunk of his car, and drove towards New York City.  Law enforcement agents discovered on the cell phone that Saleh used at this time detailed instructions regarding how to create a bomb, including a hand thrown improvised explosive device, a pipe bomb, and a pressure cooker bomb, using explosive powder from fireworks.  Saleh’s fireworks were sufficient to create multiple hand thrown IEDs or a pressure cooker bomb.  As Saleh drove toward New York City with the explosive materials in his trunk, his car broke down, and he was forced to have it towed.  Saleh later abandoned the car.

Saleh then made five separate attempts, over 10 days, to travel to the Middle East to fight for ISIS.  On July 24, 2015, Saleh contacted an ISIS travel facilitator in Libya and made a same-day one-way booking to travel from New York to Cairo, Egypt.  Notably, Egypt and Libya are bordering countries and it was relatively easy and common at that time for individuals to travel from Egypt to Libya to join ISIS.  Saleh went to JFK and attempted to pay for the flight at the airline ticket counter, but he was informed by airline personnel that a message had come up on the screen and he left the ticket line.  Saleh subsequently visited international airports in Newark, Philadelphia and Indianapolis, but continued to encounter travel restrictions.  Saleh attempted to circumvent air travel restrictions by taking a train from Cleveland to Toronto, Canada, to fly to the Middle East from Canada.  After law enforcement intervention, however, Saleh did not board the train and instead returned to New York. 

After his encounters with law enforcement, Saleh changed his online social media moniker and expressed his support for ISIS under new usernames.  On August 24, 2015, Saleh stated online, “I am a terrorist.”  On September 1, 2015, Saleh stated online, “If they aren’t implementing shariah [Islamic law] grab ur gun and implement shariah and see how fast the world turns against u.”

In September 2015, Saleh was arrested at his home on charges of attempting to provide material support to ISIS.  During a search of the home, agents recovered paper copies of an itinerary and Turkish visa issued in Saleh’s name for his September 2014 attempt to travel, and a duffel bag containing flashlights, headlamps, and other survival gear.  Agents also recovered a black trunk containing 29 machetes.  Saleh was subsequently detained at the MDC.

Assault on a Federal Correctional Officer

During his detention at the MDC, Saleh has assaulted numerous federal correctional officers and staff members, crafted weapons from materials in prison, broken cell windows and light fixtures, damaged property, initiated false emergency alarms, and set fires.  In total, he has been cited on more than 90 separate occasions for disciplinary infractions at the MDC.

On July 13, 2018, at approximately 12:35 p.m., while a senior correctional officer was retrieving trash through an access slot of Saleh’s cell, Saleh reached through the slot and slashed the officer with an improvised knife, lacerating the officer’s right forearm and damaging the officer’s radial nerve.  Saleh smiled at the officer and said, “I hope you die.”  The correctional officer subsequently underwent surgery for his wound.

The government’s cases are being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Saritha Komatireddy, Margaret E. Lee and Alexander F. Mindlin are in charge of the terrorism prosecution, with assistance provided by Trial Attorney Stephanie Sweeten of the National Security Division’s Counterterrorism Section.  Assistant United States Attorney Douglas M. Pravda is in charge of the assault and contraband prosecution.

The Defendant:

ALI SALEH
Age: 28
Queens, New York

E.D.N.Y. Docket Nos. 15-CR-517, 18-CR-468 (WFK)

A New York man was sentenced today to 30 years in prison for attempting to provide material support and resources to the Islamic State of Iraq and al-Sham, aka ISIS. The defendant was also sentenced to 100 months, or more than eight years’, imprisonment for assaulting a federal correctional officer and possessing contraband at the Metropolitan Detention Center (MDC) in Brooklyn, New York, to run consecutive to the terrorism sentence.

Ali Saleh, 28, of Queens, pleaded guilty to attempting to provide material support to ISIS in July 2018. According to court documents, starting in 2013, Saleh swore an oath of allegiance to ISIS and embraced ISIS’s directive to either travel to the Middle East or take action at home in support of ISIS. On Aug. 25, 2014, Saleh stated online, “I’m ready to die for the Caliphate, prison is nothing.” On Aug. 28, 2014, Saleh stated online, “Lets be clear the Muslims in the khilafah [caliphate] need help, the one who is capable to go over and help the Muslims must go and help.” That same day, Saleh made an airline reservation to travel from New York to Turkey, but was ultimately prevented from traveling because his parents took away his passport.

“Saleh made numerous attempts to travel overseas to join ISIS, and when those efforts failed, attempted to assist others in joining the terrorist organization,” said Assistant Attorney General Matthew G. Olsen for the Justice Department’s National Security Division. “Once arrested and detained, he attacked a correctional officer with an improvised weapon. With the sentences handed down today, he is being held accountable for these crimes. The National Security Division is committed to identifying and holding accountable those who seek to provide material support to foreign terrorist organizations and we will be unyielding in our efforts to bring to justice those who commit violence against the men and women in law enforcement and corrections. I want to thank the agents, analysts and prosecutors who are responsible for this case.”

“Today’s sentence demonstrates the strong commitment of this office and its law enforcement partners to rooting out and stopping their efforts to support terrorist attacks at home or abroad,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Saleh is also held accountable for his vicious and premeditated attack on a federal correctional officer while in pre-trial detention.” 

“Ali Saleh’s attempts to support ISIS, and his subsequent attack on a federal correctional officer, resulted in the penalties enforced upon him today,” said Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office. “The FBI’s JTTF in New York, along with our partners, continues to lead the way in preventing and intercepting threats posed by those like Saleh, who seek to harm our citizens at home and overseas.”

Saleh then redirected his efforts to facilitating others’ support of ISIS. In October 2014, Saleh communicated with an ISIS supporter in Mali through an online messaging platform and sent a $500 wire transfer to fund that person’s travel to Syria. Around the same time, Saleh communicated with several others to facilitate their support of ISIS, including known ISIS supporters in the United Kingdom and Australia.

In July 2015, the defendant purchased fireworks containing explosive powder, hid them in a concealed compartment in the trunk of his car, and drove from Indiana towards New York City. The fireworks contained approximately 1,196 grams of low explosive powder, consisting of both pyrotechnic material and black powder. Law enforcement agents located a cellphone belonging to Saleh during the time frame when he acquired the explosive powder and discovered on the phone an electronic pamphlet titled, “Muslim Gangs: The Future of Muslims in the West (Ebook 1:  How to Survive in the West).” The pamphlet provided detailed instructions on how to create a bomb using explosive powder from fireworks. The pamphlet provided an example of a soda can grenade, and the instructions specifically stated that the soda can should be filled with “[e]xplosive powder (i.e. from Fireworks).” Saleh posted online the pamphlet’s image of a soda can hand grenade with instructions on how to build an improvised explosive device. Saleh’s car broke down on the way to New York City and was abandoned by the defendant.

Subsequently, on July 24, 2015, the defendant made a reservation to travel from New York to Egypt, a country bordering Libya, and went to JFK International Airport. The defendant was ultimately denied boarding. The defendant subsequently visited three additional international airports in Newark, Philadelphia and Indianapolis, but continued to encounter travel restrictions. The defendant attempted to circumvent the apparent restrictions on his air travel by planning to take a train from Cleveland to Canada, where he intended to fly out to the Middle East. After law enforcement intervention, however, the defendant did not board the train and instead returned to New York.

After his encounters with law enforcement, Saleh changed his online social media moniker and expressed his support for ISIS under new usernames. On Aug. 24, 2015, Saleh stated online, “I am a terrorist.” On Sept. 1, 2015, Saleh stated online, “If they aren’t implementing shariah [Islamic law] grab ur gun and implement shariah and see how fast the world turns against u.”

In September 2015, Saleh was arrested at his home on charges of attempting to provide material support to ISIS. During a search of the home, agents recovered paper copies of an itinerary and Turkish visa issued in Saleh’s name for his September 2014 attempt to travel, and a duffel bag containing flashlights, headlamps and other survival gear. Agents also recovered a black trunk containing 29 machetes. Saleh was subsequently detained at the MDC.

During his detention at the MDC, Saleh assaulted numerous federal correctional officers and staff members, crafted weapons from materials in prison, broke cell windows and light fixtures, damaged property, initiated false emergency alarms, and set fires. In total, he was cited on more than 90 separate occasions for disciplinary infractions at the MDC.

On July 13, 2018, at approximately 12:35 p.m., while a senior correctional officer was retrieving trash through an access slot of Saleh’s cell, Saleh reached through the slot and slashed the officer with an improvised knife, seriously lacerating the officer’s right forearm. Saleh smiled at the officer and said, “I hope you die.” The correctional officer subsequently underwent surgery for his wound. Saleh pleaded guilty to assaulting a federal correctional officer and possessing contraband in June 2019.

Assistant U.S. Attorneys Saritha Komatireddy, Margaret E. Lee and Alexander F. Mindlin for the Eastern District of New York and Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section are prosecuting the terrorism case. Assistant U.S. Attorney Douglas M. Pravda is prosecuting Saleh’s assault and contraband case.

The FBI’s New York Field Office investigated the case.

Earlier today, at the federal courthouse in Brooklyn, Michael Williams was sentenced by United States District Judge Ann M. Donnelly to 96 months’ imprisonment for setting fire to a vehicle at the home of a victim-witness who was expected to testify at trial in United States v. Robert Sylvester Kelly, also known as “R. Kelly,” a case pending in the Eastern District of New York (“the Kelly case”).  Williams set the car on fire in order to intimidate the victim-witness and prevent her from cooperating with the government’s investigation in the case.  The amount of restitution will be determined by the Court at a later date.

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), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.

“In a violent act designed to instill fear and stop a witness from testifying at trial, Williams set fire to the victim’s vehicle in the middle of the night while it was parked outside of a residence occupied by four adults and two children. Intimidating witnesses and threatening the safety of crime victims undermine the very fabric of our judicial system and will never be tolerated,” stated United States Attorney Peace.  “This Office will bring all of its resources to bear against those who commit dangerous acts of violence to silence victims and interfere with the administration of justice.”  Mr. Peace expressed his appreciation to the HSI Field Offices in Fort Lauderdale and Tampa, Florida; the Bureau of Alcohol, Tobacco, Firearms and Explosives Field Offices in Savannah, Georgia, and Tampa, Florida; the Florida Bureau of Fire, Arson & Explosives Investigations; the Broward County Sheriff’s Office, Florida; the Lowndes County Sheriff’s Office, Florida; the Polk County Sheriff’s Office, Florida and the Valdosta Police Department, Georgia, for their assistance in this case.

“Williams attempted to use violence and intimidation to divert the course of justice and prevent a victim’s voice from being heard. HSI continues to stand alongside our partners to maintain the integrity of the judicial process and support the brave individuals who come forward to testify in criminal proceedings,” stated HSI Acting Special Agent-in-Charge Patel.

On June 11, 2020, Williams poured gasoline around an SUV parked outside of a residence in Florida where a victim-witness in the Kelly case was staying and set fire to the vehicle.  At the time the arson was committed, there were four adults, including the victim-witness in the Kelly case, and two children inside the home.  Williams committed the arson to prevent the victim-witness from continuing to cooperate in the Kelly case.  The victim-witness’s mother called 911 and told the 911 operator that her grandchildren, whose cries can be heard in the background of the call, were in the home and they were unsure if it was safe to remain in the house given the fire risk outside. The vehicle, leased by the victim’s father, was heavily damaged.  Fire investigators also detected an accelerant along the outside perimeter of the residence.  Williams had previously made internet searches about the detonation properties of fertilizer and diesel fuel, witness intimidation and witness tampering, and countries that do not have extradition agreements with the United States. 

The government’s case is being handled by the Office’s Civil Rights Section.  Assistant United States Attorneys Maria Cruz Melendez, Elizabeth Geddes and Nadia Shihata are in charge of the prosecution. 

The Defendant:

MICHAEL WILLIAMS
Age: 38
Valdosta, Georgia

E.D.N.Y. Docket No. 20-CR-395 (AMD)

Luis Enrique Martinelli Linares (Luis Martinelli Linares), 39, a citizen of Panama and Italy, was extradited from Guatemala to the United States today to face an indictment filed in federal court in Brooklyn charging him and his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, a citizen of Panama and Italy, with money laundering offenses in connection with a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. He is scheduled to make his initial appearance tomorrow before U.S. Magistrate Judge Marcia M. Henry of the U.S. District Court for the Eastern District of New York.

According to court filings, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.

“The successful extradition of Luis Martinelli Linares demonstrates the department’s commitment to work with our international partners to pursue, capture and extradite those who use the U.S. financial system to further their corrupt schemes and launder illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Thanks to the efforts of our law enforcement partners in Guatemala, Luis Martinelli Linares will be held accountable in the United States for his alleged crimes.”

“The extradition of Luis Martinelli Linares to the Eastern District of New York is a significant first step in holding him accountable for allegedly laundering millions of dollars in bribe payments through bank accounts in New York and elsewhere,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “Combatting bribery and money laundering by extraditing and prosecuting corrupt foreign actors like Martinelli is a priority of the Department of Justice.”

“Anyone who facilitates bribe payments to government officials contributes to national security risks, whether overtly or inadvertently, and interrupts the free market system of international trade,” said FBI Assistant Director in Charge Michael J. Driscoll. “The FBI will use all available resources to put an end to this type of corrupt behavior.”

Luis Martinelli Linares and Ricardo Martinelli Linares are alleged in the indictment and other court filings to have conspired with others to launder approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants. The defendants were initially charged by criminal complaint on June 27, 2020. The defendants were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. On Feb. 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged in a five-count indictment. The indictment charged both defendants with one count of conspiracy to commit money laundering and two counts of concealment money laundering; Luis Martinelli Linares was also charged with two counts of engaging in transactions in criminally derived property.

On May 17, 2021, after several preliminary appeals were dismissed, the Guatemalan Fifth Criminal Sentencing Court granted the request by the United States to extradite Luis Martinelli Linares. On June 21, the Guatemalan Court of Appeals, Criminal Branch affirmed the ruling of the Guatemalan criminal court granting extradition. On Oct. 15, the Guatemalan Ministry of Foreign Affairs notified the United States, via diplomatic note, that the extradition was final and Luis Martinelli Linares was ready for surrender to the United States, resulting in his arrival in the United States on Nov. 15. The United States continues its efforts to have Ricardo Martinelli Linares returned to the United States to face justice.

The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of Luis Martinelli Linares to the United States. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.

The FBI’s International Corruption Unit in New York is investigating this case, and the NY-ICS, New York SWAT and FBI’s International Operations Division conducted the transport of Luis Martinelli Linares from Guatemala to the United States.

Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. 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.   

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

BROOKLYN, NY – Luis Enrique Martinelli Linares (Luis Martinelli Linares) was extradited from Guatemala to the United States today on an indictment filed in federal court in Brooklyn charging him and his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), with money laundering offenses for their roles in a bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.  Luis Martinelli Linares is scheduled to be arraigned tomorrow before United States Magistrate Judge Marcia M. Henry.

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

“The extradition of Luis Martinelli Linares to the Eastern District of New York is a significant first step in holding him accountable for allegedly laundering millions of dollars in bribe payments through bank accounts in New York and elsewhere,” stated United States Attorney Peace.  “Combatting bribery and money laundering by extraditing and prosecuting corrupt foreign actors like Martinelli is a priority of the Department of Justice.”

“The successful extradition of Luis Martinelli Linares demonstrates the department’s commitment to work with our international partners to pursue, capture and extradite those who use the U.S. financial system to further their corrupt schemes and launder illicit funds,” stated AAG Polite. “Thanks to the efforts of our law enforcement partners in Guatemala, Luis Martinelli Linares will be held accountable in the United States for his alleged crimes.”

“Anyone who facilitates bribe payments to government officials contributes to national security risks, whether overtly or inadvertently, and interrupts the free market system of international trade," stated FBI Assistant Director-in-Charge Driscoll. “The FBI will use all available resources to put an end to this type of corrupt behavior.”

On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme. 

The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company.  Luis Martinelli Linares and Ricardo Martinelli Linares allegedly conspired with others to launder approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants. 

The defendants were initially charged by criminal complaint on June 27, 2020.  Pursuant to a provisional arrest request from the United States, they were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, as they were attempting to depart Guatemala on a private plane.  On February 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged in a five-count indictment, which charged both defendants with one count of conspiracy to commit money laundering and two counts of concealment money laundering; Luis Martinelli Linares was also charged with two counts of engaging in transactions in criminally derived property. 

On May 17, 2021, after several preliminary appeals were dismissed, the Guatemalan Fifth Criminal Sentencing Court granted the request by the United States to extradite Luis Martinelli Linares.  On June 21, 2021, the Guatemalan Court of Appeals, Criminal Branch affirmed the ruling of the Guatemalan criminal court granting extradition.  On October 15, 2021, the Guatemalan Ministry of Foreign Affairs notified the United States, via diplomatic note, that the extradition was final and Luis Martinelli Linares was ready for surrender to the United States, resulting in his arrival in the United States earlier today.  The United States has also requested to extradite Ricardo Martinelli Linares, and those proceedings are ongoing.

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

United States Attorney Peace and Assistant Attorney General Polite thanked the Government of Guatemala for its assistance in the extradition of Luis Martinelli Linares to the United States.  The Department of Justice’s Office of International Affairs provided substantial assistance in securing the arrest of Luis Martinelli Linares.  The FBI’s International Corruption Squad in New York (ICS-NY) is investigating this case, and the NY-ICS, New York SWAT and FBI’s International Operations Division conducted the transport of Luis Martinelli Linares from Guatemala to the United States."

The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section.

The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador provided significant cooperation.

The Defendants:

LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, Panama

RICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, Panama

E.D.N.Y. Docket No. 21-CR-65 (RJD)

Fabian Emilio Zapata Taborda, also known as “Milo” and “Milito,” was arraigned today before United States District Judge Kiyo A. Matsumoto at the federal courthouse in Brooklyn on an indictment charging him with leading an international cocaine distribution conspiracy.  The defendant, a Colombian citizen, was arrested in Colombia on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Colombia to the United States on November 12, 2021.  Zapata Taborda was ordered detained pending trial.  The defendant has been designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world. 

Breon Peace, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the extradition and arraignment.

“As alleged in the indictment, the defendant was the leader of one of Colombia’s largest drug trafficking enterprises that supplied massive, metric ton quantities of cocaine to some of the most violent drug trafficking organizations in the United States, the Caribbean, Central America, and Europe,” stated United States Attorney Peace.  “The Department of Justice is committed to working with our international partners to dismantle destructive networks of drug trafficking organizations that seek to spread dangerous and addictive narcotics throughout the world.”  Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Colombian National Police, and the Government of Colombia.

“After years of supplying multi-ton quantities of cocaine to American criminal organizations, Zapata Taborda is finally facing justice at the hands of the U.S. government,” stated DEA Special Agent-in-Charge Donovan.  “This significant arrest and extradition shows DEA's commitment to save lives and bring criminals to justice in collaboration with our law enforcement partners.”

“The waves of internationally trafficked narcotics alleged in this case, which to our hardworking NYPD officers represent countless lives harmed and threatened across our city, are ended with this extradition and indictment. I commend our investigators, our law enforcement partners and the prosecutors in the United States Attorney’s Office for the Eastern District of New York, for their work in this case and for their continuing promise to fight this illegal scourge with every tool at our disposal,” stated NYPD Commissioner Shea.

“I commend the dedicated teamwork of our federal, state and local partners, which was instrumental in this case and bringing a dangerous drug trafficker to justice. By working together, we are preventing these dangerous narcotics from coming into our communities and removing the violent criminals who profit at the expense of the people we serve. We will continue to be vigilant to keep these harmful narcotics off our streets and our neighborhoods safe,” stated NYSP Superintendent Bruen.

According to the indictment, court filings, and statements made in Court, the defendant supplied metric tons of cocaine to numerous drug trafficking organizations in Colombia, for distribution to locations in the Caribbean, Central America, Europe, and the United States.  As part of the investigation, law enforcement authorities seized over 1.9 metric tons of cocaine attributable to Zapata Taborda’s drug trafficking enterprise.  The seizures included multi-hundred-kilogram shipments of cocaine sent by the Zapata Taborda drug trafficking organization from Colombia to Jamaica and Costa Rica for ultimate importation to the United States.  Among the drug trafficking organizations supplied by the defendant was Clan del Golfo which is one of the most prolific and violent in the world.  Colombian law enforcement authorities also seized and destroyed a large-scale cocaine laboratory operated by the Zapata Taborda drug trafficking organization in Antioquia, Colombia.

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

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

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Francisco J. Navarro and Margaret Schierberl are in charge of the prosecution.  The Justice Department’s Office of International Affairs handled the extradition in this matter.

The Defendant:

FABIAN EMILIO ZAPATA TABORDA
Age:  52
Antioquia, Colombia

E.D.N.Y. Docket No. 19-CR-212 (KAM)

WASHINGTON – Luis Enrique Martinelli Linares (Luis Martinelli Linares), de 39 años, ciudadano de Panamá e Italia, fue extraditado hoy desde Guatemala hacia los Estados Unidos para enfrentar una acusación presentada ante un tribunal federal en Brooklyn acusándolo a él y a su hermano, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, ciudadano de Panamá e Italia, con delitos de lavado de dinero en relación con un plan masivo de soborno y lavado de dinero en el que involucra a Odebrecht S.A. (Odebrecht), un conglomerado mundial de construcción con sede en Brasil.  Él está programado para comparecer por primera vez mañana ante la Magistrada de los Estados Unidos, Marcia M. Henry, del Tribunal de Distrito de los Estados Unidos para el Distrito Este de Nueva York.

Según los expedientes judiciales, el plan implicaba el pago de más de $700 millones en sobornos a funcionarios de gobierno, funcionarios públicos, partidos políticos y otros en Panamá y otros países alrededor del mundo para obtener y retener negocios para la compañía.  El 21 de diciembre de 2016, Odebrecht se declaró culpable en el Distrito Este de Nueva York de una acusación criminal de conspiración para violar las disposiciones contra el soborno de la Ley de Prácticas Corruptas Extranjeras (FCPA), por su participación en el plan de soborno y lavado de dinero.

“La exitosa extradición de Luis Martinelli Linares demuestra el compromiso del departamento de trabajar con nuestros socios internacionales para perseguir, capturar y extraditar a quienes usan el sistema financiero de Estados Unidos para promover sus esquemas de corrupción y lavar fondos ilícitos,” dijo el fiscal general adjunto Kenneth A. Polite Jr. de la División Criminal del Departamento de Justicia.  “Gracias a los esfuerzos nuestros socios en la aplicación de la ley en Guatemala, Luis Martinelli Linares deberá rendir cuentas en los Estados Unidos por sus presuntos delitos.”  

“La extradición de Luis Martinelli Linares al Distrito Este de Nueva York es un primer paso significativo para que rinda cuentas por supuestamente haber lavado millones de dólares en pagos de sobornos a través de cuentas bancarias en Nueva York y otros lugares,” declaró el fiscal para el Distrito Este de Nueva York, Breon Peace.  “Combatir el soborno y el lavado de dinero extraditando y enjuiciando a actores extranjeros corruptos como Martinelli es una prioridad del Departamento de Justicia.”

“Cualquier persona que facilite los pagos de sobornos a funcionarios gubernamentales contribuye a los riesgos de seguridad nacional, ya sea de manera abierta o involuntariamente, e interrumpe el sistema de libre mercado del comercio internacional,” dijo Michael J. Driscoll, director adjunto a cargo del FBI.  “El FBI utilizará todos los recursos disponibles para poner fin a este tipo de comportamiento corrupto.”

Luis Martinelli Linares y Ricardo Martinelli Linares se presume en la acusación y otras presentaciones judiciales que conspiraron con otros para lavar aproximadamente $28 millones en pagos de sobornos hechos por y bajo la dirección de Odebrecht a un funcionario de alto rango en ese entonces del gobierno de Panamá, que era un pariente cercano de los acusados.  Los sindicados fueron inicialmente acusados el 27 de junio de 2020 por medio de una denuncia penal.  Los acusados fueron detenidos en el Aeropuerto Internacional la Aurora en Guatemala el 6 de julio de 2020, en cumplimiento de una solicitud de arresto provisional de los Estados Unidos cuando intentaban salir de Guatemala en un avión privado.  El 4 de febrero de 2021, Luis Martinelli Linares y Ricardo Martinelli Linares fueron acusados formalmente con cinco cargos.  La denuncia acusó a ambos sindicados de un cargo de conspiración para cometer lavado de dinero y dos cargos de encubrimiento de lavado de dinero; Luis Martinelli Linares también fue acusado de dos cargos de participación en transacciones de propiedad obtenida ilícitamente.

El 17 de mayo de 2021, después de la desestimación de varios recursos preliminares, el Tribunal Quinto de Sentencia Penal de Guatemala otorgó la solicitud de Estados Unidos de extraditar a Luis Martinelli Linares.  El 21 de junio, la Sala de la Corte de Apelaciones Ramo Penal de Guatemala, confirmó el fallo del tribunal penal guatemalteco que concedía la extradición.  El 15 de octubre, el Ministerio de Relaciones Exteriores de Guatemala notificó a los Estados Unidos, mediante una nota diplomática, que la extradición era definitiva y Luis Martinelli Linares estaba listo para ser entregado a los Estados Unidos, dando lugar a su llegada a los Estados Unidos el 15 de noviembre.  Los Estados Unidos continúa sus esfuerzos para que Ricardo Martinelli Linares regrese a los Estados Unidos para enfrentar la justicia.

El Departamento de Justicia elogió y agradeció al Gobierno de Guatemala su asistencia en la extradición de Luis Martinelli Linares a los Estados Unidos.  La Oficina de Asuntos Internacionales del Departamento de Justicia prestó asistencia considerable para asegurar la detención y extradición de Luis Martinelli Linares.  El Ministerio Público Federal de Brasil, el Departamento de Policía Federal, las autoridades encargadas de aplicación de la ley en Guatemala, incluyendo al Ministerio Público de Guatemala y la Unidad Especializada de Asuntos Internacionales, y las autoridades del orden público en El Salvador también proporcionaron una importante cooperación.

La Unidad Contra la Corrupción Internacional del FBI en Nueva York está investigando este caso y la División de Operaciones Internacionales del FBI, el NY-ICS, y el SWAT de Nueva York transportaron a Luis Martinelli Linares desde Guatemala a los Estados Unidos.

El abogado litigante Michael Culhane Harper de la Sección de Fraude de la División Criminal, los abogados litigantes Barbara Levy y Michael Redmann de la Sección de Lavado de Dinero y Recuperación de Activos de la División Criminal (MLARS), y la Fiscal Federal Auxiliar Alixandra E. Smith, de la Fiscalía Federal para el Distrito Este de Nueva York están procesando el caso.

La Sección de Fraude es responsable de investigar y procesar todos los asuntos de la Ley de Prácticas Corruptas en el Extranjero (FCPA).  Puede encontrar información adicional sobre los esfuerzos del Departamento de Justicia para hacer cumplir la FCPA en www.justice.gov/criminal/fraud/fcpa.

La Iniciativa de Recuperación de Activos de la Cleptocracia en MLARS fue creada para procesar a las personas que lavan dinero y confiscar el producto de la corrupción de funcionarios extranjeros y, cuando es apropiado, utilizar esos activos recuperados para beneficiar a las personas perjudicadas por la corrupción y el abuso de poder.  Las personas que tienen información sobre posibles ingresos de corrupción extranjera ubicadas en o lavadas a través de los Estados Unidos deben contactar a la policía federal o enviar un correo electrónico a kleptocracy@usdoj.gov.

Una imputación es simplemente una acusación, y todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad más allá de una duda razonable en un tribunal de justicia.

Earlier today, at the federal courthouse in Central Islip, Konstantino Zarkadas, a Glen Cove-based medical doctor, pleaded guilty to disaster relief fraud and wire fraud in connection with his receipt of millions of dollars in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States District Judge Gary R. Brown.  When sentenced, Zarkadas faces up to 30 years in prison, as well as forfeiture of $3,796,849.50 and a fine of up to $250,000.

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

“The defendant, a medical professional, admits to diverting millions of dollars in COVID-19 disaster relief funds to finance an extravagant lifestyle, including the purchase of luxury watches and vehicles, and the down payment on a yacht,” stated United States Attorney Peace. “This Office will vigorously prosecute those who steal from government programs that are designed to help struggling small businesses and families stay afloat during the pandemic.”

“It’s always a shame to see the rampant abuse of programs designed to help ordinary people struggling through the pandemic.  Dr. Zarkadas chose greed over honesty by financing a luxury lifestyle on the backs of America’s taxpayers.  This case, along with many others, demonstrate IRS-CI is constantly working to weed out financial fraud wherever it may be found.  IRS-CI would like to thank the FBI and the U.S. Attorney’s Office for the Eastern District of New York for their partnership and investigative efforts on this case,” stated IRS-CI Special Agent-in-Charge Fattorusso.

As set forth in court filings, between March 2020 and July 2020, amid the COVID-19 pandemic, Dr. Zarkadas fraudulently applied for, and received, at least 11 PPP and EIDLP loans totaling approximately $3.7 million, on behalf of corporate entities he controlled.  Zarkadas laundered the loan proceeds through various bank accounts he controlled, ultimately using the funds for extravagant personal purchases and other impermissible purposes.  For example, in July 2020, Zarkadas used approximately $194,915.42 in PPP funds intended for distressed small businesses affected by the pandemic to finance the down payment on a $1.75 million yacht.  To conceal the fraudulent nature of the purchase, Zarkadas made the check payable to a family member who was not the ultimate beneficiary of the funds and, in the check’s memo line, falsely indicated that the funds were “repayment for payroll.”  Zarkadas also withdrew tens of thousands of dollars’ worth of loan proceeds in cash and used some of the proceeds to satisfy more than $1 million in judgments against him, to lease luxury vehicles, and to make personal purchases, including several Rolex and Cartier wristwatches which he has agreed to forfeit in today’s proceeding.   

Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.   Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic.  One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP.  The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities.  The PPP provided for forgiveness of the loan if the recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.

Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.  Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance).  The amount of an EIDL Advance was determined based on the number of employees working for the applicant.  The EIDL Advance did not have to be repaid.

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

The Defendant:

KONSTANTINO ZARKADAS
Age:  48
Glen Cove, New York

E.D.N.Y. Docket No. 21-CR-363 (GRB)

Earlier today, at the federal courthouse in Brooklyn, Aleksandr Zhukov was sentenced by United States District Judge Eric R. Komitee to 10 years’ imprisonment for perpetrating a digital advertising fraud scheme through which the defendant and his co-conspirators stole more than $7 million from U.S. advertisers, publishers, platforms, and others in the U.S. digital advertising industry.  The Court also ordered Zhukov to pay $3,827,493 in forfeiture. Zhukov, a Russian national who was arrested in Bulgaria in 2018, was extradited to the United States in 2019, and was convicted following a jury trial in May 2021 of wire fraud conspiracy, wire fraud, money laundering conspiracy, and money laundering. 

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 Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Sitting at his computer keyboard in Bulgaria and Russia, Zhukov boldly devised and carried out an elaborate multi-million-dollar fraud against the digital advertising industry, and victimized thousands of companies across the United States,” stated United States Attorney Peace.  “Today’s sentence holds the defendant accountable for his deception and outright theft of more than $7 million, and sends a powerful message to cyber criminals around the world that there is no escape from the international reach of law enforcement.”  

Between September 2014 and December 2016, Zhukov operated a purported advertising network—Media Methane—and carried out a digital advertising fraud scheme that came to be known as “Methbot.”  Media Methane had business arrangements with other advertising networks whereby it received payment in return for placing advertisements—primarily video advertisements—on websites.  Rather than place advertisements on real publishers’ webpages where human internet users would see them, Zhukov rented more than 2,000 computer servers housed in commercial datacenters in Dallas, Texas, Amsterdam and the Netherlands, and programmed the datacenter computer servers (the “bots”) to simulate humans viewing ads on webpages.  Zhukov and his co-conspirators programmed the bots to load real ads on blank webpages while falsely representing that the ads were loading on real webpages, “spoofing” the domains of more than 6,000 publishers, including The New York Times, the New York Post, the New York Daily News, Newsday, and the Staten Island Advance. 

To create the illusion that human internet users were viewing the advertisements loaded onto these spoofed webpages, Zhukov and his co-conspirators programmed the bots to appear and behave like human internet users: falsely representing that they had screens and mouses, that they were running operating systems used for personal computers, and that they were running commercially available internet browsers (like Chrome, Internet Explorer, and Firefox), when they were not.  Zhukov and his co-conspirators also programmed the bots to click around a screen a randomly determined number of times, simulate a mouse moving around and scrolling down a webpage, start and stop a video player midway, bypass captchas, accept cookies, and falsely appear to be signed into popular social media services such as Facebook, Twitter, and Google. 

In addition, the defendant leased more than 765,000 Internet Protocol (“IP”) addresses, assigned multiple IP addresses to each datacenter server, and then fraudulently registered IP addresses in the names of major U.S. internet providers.  Zhukov entered the false usage and location information into IP databases that are widely relied upon in the industry to make it appear that the computers in question belonged to human internet users located in homes and businesses around the United States.

Zhukov recruited computer programmers and other employees to help him perpetrate the scheme and build the technical infrastructure required to create fraudulent ad traffic.  He referred to these individuals as “my developers,” and referred to himself as the “king of fraud!”

The victim companies collectively paid more than $7 million for ads that were never actually viewed by human internet users and never actually displayed on real webpages. 

Zhukov directed and transferred proceeds from the scheme to and through multiple personal and corporate bank accounts in Bulgaria, Russia, the United Kingdom, the Czech Republic, Latvia, and Cyprus.  He kept 75% of the scheme’s proceeds for himself and pocketed more than $4.8 million from the fraud. 

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Saritha Komatireddy, Artie McConnell, and Alexander F. Mindlin are in charge of the prosecution.  The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case. 

The Defendant:

ALEKSANDR ZHUKOV
Age:  41
Russian Federation

E.D.N.Y. Docket No. 18-CR-633 (EK)

John Won was convicted by a federal jury in Brooklyn yesterday of all five counts of an indictment charging him with securities fraud, wire fraud and money laundering conspiracies, as well as substantive securities fraud.  The verdict followed a week-long trial before United States District Judge Raymond J. Dearie. When sentenced, Won faces a maximum of 20 years in prison.

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 his co-conspirators targeted the Korean-American community in our district and cheated them out of hundreds of thousands of their hard-earned dollars through a web of false promises, lies and deceit,” stated United States Attorney Peace.  “Today’s verdict demonstrates the resolve of this Office and our law enforcement partners to prosecuting those who engage in fraud and betray the trust of their investors.”  Mr. Peace thanked the Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.

As proven at trial, between February 2012 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 City’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower.  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 percent monthly returns at no risk of loss.  In reality, ForexNPower had no successful trading method and all of 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, Won and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements. 

In March 2021, co-defendant Tae Hung Kang, also known as “Kevin Kang,” pleaded guilty to conspiracy to commit securities fraud.  Kang is awaiting sentencing. 

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Sarah M. Evans and 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, following four weeks of trial, a federal jury in Central Islip, New York, returned a guilty verdict against Bloods gang member Lawrence Lewis, also known as “L Boogs,” for the July 29, 2017 murder of John Birt, the forcible rape and sex trafficking of a Suffolk County woman, racketeering, multiple firearms offenses, narcotics possession and distribution and witness tampering.  The trial was held before United States District Judge Joanna Seybert.  When sentenced, Lewis faces a mandatory penalty of life in prison for the murder. 

Breon Peace, United States Attorney for the Eastern District of New York, Timothy D. Sini, District Attorney, Suffolk County District Attorney’s Office, Ricky J. Patel, 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),  and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the verdict.

“Lewis’s conviction today ensures that he will never  again be able to terrorize our community with his senseless acts of gang-related violence,” stated United States Attorney Peace.  “I commend the prosecutors in this Office, the Suffolk County District Attorney’s Office and the special agents and detectives whose hard work and persistence led to Lewis being held accountable for his long record of reprehensible crimes.”

“With extreme violence and indifference to human life, Lawrence Lewis with the Bloods street gang reigned terror over neighborhoods in Suffolk County, Long Island for over a decade.  With today’s verdict finding Lewis guilty of heinous crimes to include murder, rape, and sex trafficking, a clear message has been sent to these violent gang members that they will be held accountable for their actions,” stated HSI Acting Special Agent-in-Charge Patel.  “HSI New York’s Long Island Transnational Violent Gangs Task Force, working with our law enforcement and prosecutorial partners, will continue to tirelessly pursue the most dangerous offenders and bring them to justice.”

“Today’s verdict shows Mr. Lewis has very little regard for human life and demonstrates how truly  detrimental his presence has been to society. He will now face the consequences of his actions. The outstanding work being done by our Long Island Gang Task Force continues to take these violent criminals of our streets and out of our communities so they can longer terrorize our neighbors,” stated FBI Assistant Director-in-Charge Driscoll.

“As a member of a violent street gang, Lewis’ involvement in illegal activity ran the gamut,” stated SCPD Acting Commissioner Cameron. “He was willing to do whatever it took to further his criminal activities and attempt to evade authorities. I applaud the hard work of all the agencies involved to hold Lewis accountable for his heinous actions.”

As proven at trial, between April 2004 and June 2019, Lewis, as a member of the Bloods street gang, distributed large quantities of cocaine base and heroin in Suffolk County.  In order to protect his supply of narcotics, and secure his ability to distribute his narcotics, Lewis possessed a number of firearms, including an AR-15 assault rifle, a pistol-grip 12-gauge shotgun, a Mossberg .22 caliber rifle and a Ruger .45 caliber semi-automatic pistol. 

Lewis also engaged in acts of extreme violence on behalf of the Bloods gang.  For example, in 2014, as retaliation for a theft of guns, Lewis forced a woman into engaging in prostitution until she repaid her debt to him.  During the same period of time, Lewis forcibly raped the woman.  On July 29, 2017, Lewis shot and killed John Birt, a member of the Crips gang, at the Illusions Gentlemen’s Club in Deer Park, New York.  While Birt and several friends posed for pictures inside the club, Lewis and a fellow Bloods gang member approached the group.  Lewis’ associate attempted to display a Bloods hand signal and Birt began arguing with Lewis, who then shot and killed him.  Later, Lewis texted a number of close acquaintances about the murder, stating that he was “sleeping good” and would “do it again.” 

Prior to the trial, Lewis and others acting on his behalf made efforts to prevent witnesses from testifying against him, through the use of veiled and implicit threats of violence.

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

The Defendant

LAWRENCE LEWIS (also known as “L Boogs”)
Age: 38
Calverton, New York  

E.D.N.Y. Docket No. 18-CR-187 (S-1) (JS)

Earlier today, in federal court in Central Islip, New York, Tyrone L. Robinson was sentenced by United States District Judge Joan M. Azrack to life imprisonment plus 84 years to run consecutive to the life sentence for murder, seven counts of robbery and attempted robbery of drugs and drug proceeds, seven counts of unlawful use, brandishing and discharge of firearms, and four counts of being a felon in possession of firearms and ammunition.  Robinson was convicted by a jury in February 2020 following a four-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), announced the sentence.

“Robinson’s violent crime spree extended not only to possessing illegal drugs and weapons, and committing home invasions, robberies and murder, but also to threatening to take the life of an innocent 8-year-old child,” stated United States Attorney Peace.  “Today’s lengthy sentence serves to protect our communities, including our children, while sending a strong message to violent offenders like the defendant that they will be held accountable to the fullest extent of the law.”

Mr. Peace expressed his appreciation to the Nassau and Suffolk County Police Departments and the New York State Department of Corrections and Community Supervision for their assistance with the investigation and prosecution.

“Today’s sentence ensures that a serial predator will never be set free to inflict violence within our communities. The reign of terror of Tyrone Robinson is over. Convicted of murder with a firearm, armed robbery, armed assaults, Robinson preyed upon his victims and showed no mercy. We commend the work of the ATF’s Long Island Firearms Task Force and our partners from the Nassau and Suffolk County Police Departments and United States Attorney’s Office for their steadfast commitment to investigating these crimes and to ensuring justice was served,” stated ATF Special Agent-in-Charge DeVito.

Between August 2015 and May 2016, Robinson and his co-conspirators committed multiple armed home invasion robberies of drug dealers in Nassau and Suffolk counties. The victims were pistol-whipped, often times zip-tied, threatened with death and shot. On March 25, 2016, Robinson committed an armed home invasion in Lake Grove and threatened to kill an eight-year-old girl if she did not find money for him. The following night, when Robinson returned to the scene of the Lake Grove home invasion, he dropped his cellphone and it was recovered by police responding to a call from neighbors. The cellphone was logged into Robinson’s online account which he had used to Google search for directions to his targeted locations and for news reports about the crimes he had committed. For example, after a violent robbery attack in Hempstead, Robinson Google searched “man beaten in Hempstead.” During a home invasion robbery by Robinson on May 3, 2016 in Freeport, the victim, Johnathan Isaac, was fatally shot in the back. Shortly after Isaac’s murder and the shooting of another victim in Freeport, Robinson Google searched “two shot Freeport” and watched news reports about the crimes.

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 Allen Bode and Anthony Bagnuola are in charge of the prosecution.

The Defendant:

TYRONE L. ROBINSON
Age: 35
Bay Shore, New York

E.D.N.Y. Criminal Docket No. 16-545 (S-4)(JMA)