Eastern District of New York

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Eric S. Dreiband, Assistant Attorney General for Civil Rights, filed a civil complaint and proposed settlement agreement with Bank of America, N.A. (“Bank”) today to resolve claims that the Bank engaged in a pattern or practice of discrimination on the basis of disability, in violation of the Fair Housing Act.  The Settlement Agreement is subject to being so ordered by the assigned district judge.

According to the civil complaint, the United States alleged that, between January 2010 and 2016, the Bank maintained a policy of denying mortgage loans and, between January 2010 and 2017, home equity loans, to adults with disabilities who were under legal guardianships or conservatorships. 

“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” stated Acting United States Attorney DuCharme.  “Our Office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”

“No one in this free country should be denied access to the American dream merely because of a disability.  The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right,” said Assistant Attorney General Dreiband of the Civil Rights Division.  “The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this Department will hold accountable those lenders who engage in such illegal conduct.  Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”

The Bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianships or conservatorships.  The terms of the settlement require the Bank to pay approximately $300,000 to compensate victims of its conduct.  The settlement also requires the Bank to maintain the new, non-discriminatory loan underwriting policy and train its employees on the new policy.  In addition, the Bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act.  The Bank will report to the United States every six months for a two year period regarding its compliance with the terms of the settlement and on any complaints it has received regarding any instance in which a mortgage loan application was denied to an adult applicant represented by a legal guardian or conservator.

Bank of America cooperated with the United States’ investigation and agreed to settle this matter without contested litigation.  By entering this Agreement, Bank of America does not admit, and expressly denies, any liability, wrongdoing, or non-compliance with the provisions of the FHA.

This case is being handled by Eastern District of New York Assistant U.S. Attorney Rachel G. Balaban and Deputy Chief Lucy G. Carlson and Trial Attorney Katherine A. Raimondo of the Civil Rights Division Housing and Civil Enforcement Section.

E.D.N.Y. Civil Docket No.: 20-CV-3306 (AMD)

An indictment was unsealed today in federal court in Brooklyn charging three alleged members of the Real Ryte set of the Bloods street gang with crimes related to their participation in acts of violence, including the attempted murder of a gang rival that left an unintended target with gunshot wounds.  Specifically, Dajahn McBean, Semaj Smith and Mark Waiters are charged with conspiring to commit murder in-aid-of their racketeering enterprise, attempted murder and assault in-aid-of racketeering, and using firearms in furtherance of the attempted murder and assault.  These crimes stemmed from an internecine gang war with the Breadgang set of the Bloods.  Smith was arrested this morning and will be arraigned via videoconference before United States Magistrate Judge James Orenstein this afternoon.  Waiters and McBean are in custody and will be arraigned on a later date.

Seth DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 indictment.

“The Real Rytes allegedly engaged in extreme acts of violence that threatened the safety of our community and, in one instance, resulted in serious injury to a bystander,” stated Acting United States Attorney DuCharme.  “This Office and our law enforcement partners will continue to work hard to address the problem of gun violence in our neighborhoods, and we will prosecute to the fullest extent of the law gang members who endeavor to use our streets as battlefields.”  Mr. DuCharme expressed his grateful appreciation to the New York State Department of Corrections and Community Supervision for its assistance with the investigation.

“The alleged behavior of these individuals has now landed them in federal custody and, if convicted, they’re in for a long stay,” stated FBI Assistant Director-in-Charge Sweeney.  “To others anywhere in this city who are engaging in violent acts and illegally carrying weapons in our neighborhoods, pay attention: the FBI/NYPD Safe Streets Task Force is fully engaged with our partners, and we will utilize any federal law available to protect our community.  The penalties for breaking those federal laws are appropriately severe.”  

According to the indictment and public court documents, the Real Ryte set of the Bloods street gang operated in Brooklyn and elsewhere.  Real Ryte members were active on social media and often appended the name of the gang to their usernames, used the #RealRyte hashtag on their posts and also wore clothing and jewelry with the Real Ryte gang’s double “R” logo on it.  Between 2015 and 2017, Real Ryte was feuding with a rival set of the Bloods known as the Breadgang, whose members also operated in Brooklyn.  The feud led to a series of violent confrontations between the two gangs, and the defendants and their co-conspirators sought to retaliate against the Breadgang for the December 19, 2015 slaying of Real Ryte member Sean Peart by shooting and killing Breadgang members at any opportunity.  On January 3, 2017, the defendants learned that a Breadgang member could be found at a specific location in the vicinity of Essex Street and Hester Street in lower Manhattan.  Smith and Waiters traveled to the location and shot an innocent person sitting in his car whom they mistook for their intended target. The victim was seriously injured, but survived the shooting.  

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of discharging a firearm during and in relation to a crime of violence, each of the defendants faces a mandatory minimum sentence of 10 years’ and up to life imprisonment, which would run consecutively to any other sentence imposed.  The murder conspiracy and attempted murder in-aid-of racketeering charges each carry a sentence of up to 10 years’ imprisonment, and the assault in-aid-of racketeering charge carries a sentence of up to 20 years’ imprisonment.

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

The Defendants:

DAJAHN MCBEAN (also known as “Jeezy Mula”)
Age:  24
Brooklyn, New York

SEMAJ SMITH (also known as “Bam Bam” and “Real Ryte Sport”)
Age:  26
Brooklyn, New York

MARK WAITERS (also known as “Telly”)
Age:  23
Brooklyn, New York

E.D.N.Y. Docket No.: 20-CR-260 (ARR)

A 24-count indictment was unsealed yesterday in federal court in Central Islip charging eight members of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” with multiple racketeering offenses in connection with six murders, two attempted murders, a kidnapping conspiracy and narcotics trafficking conspiracies, as well as related charges including assault in aid of racketeering and firearms offenses.  The defendants Carlos Alfaro, Jose Moises Blanco, Oseas Gonzalez, Jose Jonathan Guevara-Castro, Victor Lopez-Morales, Ever Morales-Lopez, David Sosa-Guevara and Kevin Torres allegedly are members of one of two subgroups or “cliques” of the MS-13 operating on Long Island: the Hollywood Locos Salvatruchas (“Hollywood”) clique and the Sailors Locos Salvatruchas Westside (“Sailors”) clique.  Sosa-Guevara and Torres allegedly were the New York leaders of the Hollywood and Sailors cliques, respectively, and were in direct communication with high-ranking MS-13 leaders in El Salvador.   

Blanco and Gonzalez were arrested yesterday morning in Salisbury and Charlotte, North Carolina, respectively, appeared in the United States District Court for the Western District of North Carolina and were both detained.  Blanco and Gonzalez will be transferred to the Eastern District of New York and arraigned at a later date before United States Circuit Judge Joseph F. Bianco.  Alfaro, Lopez-Morales, Morales-Lopez and Sosa-Guevara, who are in state custody, and Torres, who is in federal custody, will also be arraigned at a later date before Circuit Judge Bianco.  Guevara-Castro remains at large.  

Two additional MS-13 members, both of whom were juveniles at the time they allegedly committed the crimes, have separately been charged with racketeering offenses and several murders.  By statute, those cases remains under seal at this time. 

Attorney General William P. Barr; Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA);  Madeline Singas, District Attorney, Nassau County District Attorney’s Office (NCDAO);  and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the arrests and indictment.

“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”

“As alleged, the defendants committed multiple murders and other violent and wanton crimes on Long Island to further MS-13’s vicious code,” stated Acting United States Attorney DuCharme.  “Victims were hacked with machetes, one shot numerous times and another decapitated.  This Office, working tirelessly with our local and federal law enforcement partners, will not rest until violent gangs are eradicated from the communities they have terrorized.”  Mr. DuCharme expressed his grateful appreciation to all the members of the FBI’s Long Island Gang Task Force, the DEA, the NCPD and the NCDAO, as well as to the members of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Suffolk County Police Department (SCPD), the FBI’s Charlotte Safe Streets Task Force, and the United States Attorneys’ Offices for the Western District of North Carolina, the Middle District of North Carolina, and the Eastern District of Virginia, for their outstanding assistance and partnership in this case. 

"Putting these men in a federal prison for the rest of their lives, or facing possible death sentences, may not mean much to them as members of MS-13 because it fits their macho bravado,” stated FBI Assistant Director-in-Charge Sweeney.  “But it means a tremendous amount of relief to the communities on Long Island they've terrorized by using machetes to murder teenagers. Our work over the last few years on the FBI Long Island Gang Task Force illustrates how vitally important it is to partner with those communities, gain their trust, and doggedly investigate these deplorable crimes. We've seen a vast improvement, but I want the community to know we're not going anywhere, our work is not done. If we can keep the lines of communication open, we can stop the violence before it turns deadly. Reach out and know we're here to help.”

“This investigation outlines the strategy used to kidnap, assault and murder six individuals by alleged members of MS-13.  Each act is distinctive, but all are clear examples of the charged extreme violence and savagery of the defendants.  I commend our law enforcement partners for their diligent and meaningful work,” stated DEA Special Agent-in-Charge Donovan.

“This indictment strikes yet another heavy blow to MS-13 and will further dismantle the brutal gang that terrorized so many communities,” stated District Attorney Singas. “Thanks to the relentless and collaborative efforts of law enforcement at the federal, state, and local levels MS-13 is on the run, gang violence is down, and our communities are safer.  I commend the US Attorney’s Office, the FBI, DEA and NCPD for their outstanding work bringing this case.”

“This indictment is another step forward in eradicating the vicious MS-13 gangs from our communities which ultimately ensures the safety of our neighborhoods and residents.  The six victims of gruesome murders are a stark reminder that we must continue our enforcement of all illegal gangs and never stop pursuing justice.  I congratulate all of the investigators and their respective agencies for their hard work and dedication, who continue to work together to bring an end to this violence,” stated NCPD Commissioner Ryder.

As detailed in the indictment and in the government’s detention letter, in 2016 and 2017 the Sailors and Hollywood cliques of the MS-13 gang, both of whom had a significant presence in the Roosevelt and Freeport areas of Nassau County, collaborated in the criminal activities on behalf of the MS-13, including the murders of suspected rival gang members. 

Murder of Oscar Acosta

Torres is charged in connection with his leadership role in the murder of 19-year- old Oscar Acosta, who was suspected of associating himself with the MS-13’s principal rival on Long Island, the 18th Street gang.  Torres allegedly ordered a “greenlight,” or authorization, to kill Acosta and assigned specific roles for other Sailors to the plan and carry out the murder.  On April 29, 2016, those MS-13 members lured Acosta to a wooded area near an elementary school in Brentwood.  Once there, they brutally beat Acosta with tree limbs, knocking him unconscious.  They then bound Acosta’s hands and feet, and coordinating with the local Sailors clique leader in Brentwood, moved Acosta to a more secluded area near an abandoned psychiatric hospital.  They carried him into the woods behind a warehouse and stabbed and slashed him to death with a machete.  The MS-13 members then buried Acosta’s body in a shallow grave, which was discovered in September 2016.  

Murder of Kerin Pineda

The indictment charges Gonzalez, Guevara-Castro, Lopez-Morales, Morales-Lopez, Sosa-Guevara and Torres with the murder of 20-year-old Kerin Pineda, who was believed to be a member of the rival 18th Street gang.  Torres allegedly ordered the “greenlight” for Pineda, marking him for death.  Members of the Sailors clique coordinated with members of the Hollywood clique and devised the plan.  On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border.  Torres, Lopez-Morales and Sosa-Guevara allegedly acted as lookouts for police and stayed in contact with the MS-13 members in the woods while they waited for Pineda.  When Pineda arrived, he was surrounded and violently attacked by the MS-13 members, including both charged juveniles, who each took turns hacking and slashing him with their machetes.  Pineda’s corpse was buried in a hole that had been dug the day before.  Before leaving the scene, the MS-13 members contacted the lookouts who advised them that they could safely leave.

Murder of Josue Amaya-Leonor

Hollywood clique members Alfaro, Blanco, Gonzalez and Lopez-Morales are charged in connection with their roles in the murder of 19-year-old Josue Amaya-Leonor on September 4, 2016 because of his perceived association with the 18th Street gang.  Amaya-Leonor was lured to a secluded wooded area deep into the Roosevelt Preserve to smoke marijuana.  Once there, he was allegedly surrounded by the machete-wielding MS-13 members – including one of the charged juveniles – struck repeatedly and killed.  The MS-13 members dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018. 

Murder of Javier Castillo

Torres is charged for his role in authorizing the murder of 15-year-old Javier Castillo on October 10, 2016 for his perceived association with the 18th Street gang.  Members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Cow Meadow Park, a secluded area in Freeport, to smoke marijuana.  Once there, the MS-13 members, including one of the charged juveniles, allegedly attacked and killed Castillo, each taking turns hacking him with a machete.  Torres also served as the lookout for police in the area during the murder.  The MS-13 members dug a hole and buried Castillo’s body, which was not discovered until October 2017. 

Murder of Carlos Ventura-Zelaya

Alfaro is charged with the October 14, 2016 murder of 24-year-old Carlos Ventura-Zelaya in Roosevelt.  Ventura-Zelaya had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang.  On the night of the murder, Alfaro and other MS-13 members spotted Ventura-Zelaya on the street in Roosevelt.  Alfaro, armed with a 9mm handgun, got out of the car, approached Ventura-Zelaya, and allegedly fired all nine rounds from the gun, striking and killing Ventura-Zelaya.

Murder of Angel Soler

The racketeering charges against Hollywood clique members Lopez-Morales and Sosa-Guevara include the July 21, 2017 murder of 15-year-old Angel Soler and an August 2017 conspiracy to kidnap a victim identified in the indictment as John Doe #3.  Soler was a suspected 18th Street gang member, and Sosa-Guevara allegedly ordered his murder.  Lopez-Morales and other MS-13 members allegedly carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana.  The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave.  The following day, MS-13 members went back to lay cement over Soler’s body to better conceal it. 

Kidnapping Conspiracy

Just weeks after the Soler murder, Lopez-Morales and Sosa-Guevara allegedly planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang.  Specifically, Sosa-Guevara instructed Lopez-Morales and two other MS-13 members to kidnap John Doe #3 and wait for further guidance from MS-13 leadership to kill or brutally assault him.  On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, and Lopez-Morales was taken into custody.

Attack on Suspected Rivals

The indictment charges Hollywood clique members Alfaro and Gonzalez with attacking a group of males who had gathered in front of a house in Brentwood on July 18, 2016.  That night, the MS-13 members allegedly agreed to drive around the area “hunting” for rival gang members to kill.  Four of the gang members, including Alfaro, were selected to participate, armed with two handguns and a machete.  While driving around Brentwood that night, the MS-13 members spotted a group of males whom they believed were members of the rival Bloods street gang.  Alfaro and two other MS-13 members concealed their faces with bandanas, ran over to the group and attacked them.  One victim, identified in the indictment as John Doe #1, was shot in the leg.  Another victim, identified in the indictment as John Doe #2, was shot and slashed in the head, face and arms.  John Doe #2 sustained disfiguring injuries, but survived the attack.

Cocaine and Marijuana Distribution   

The indictment charges various members of the Sailors clique with conspiring to distribute cocaine and marijuana, and members of the Hollywood clique with conspiring to distribute marijuana, stemming from the MS-13 cliques’ alleged street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.

Additionally, during the execution of court-authorized search and seizure warrants at the North Carolina residences of both Blanco and Gonzalez yesterday, law enforcement agents and officers recovered additional evidence, including machetes, firearms, ammunition, narcotics, and MS-13 related paraphernalia.

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

In August 2019, Attorney General Barr created Joint Task Force Vulcan to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principle purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.

This indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization.  The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America.  With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang 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 55 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the NCPD, the SCPD, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Department, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

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

The Defendants:

CARLOS ALFARO (“Russo”)
Age:  23
Roosevelt, New York

JOSE MOISES BLANCO (“Cuervo”)
Age:  30
Salisbury, North Carolina

OSEAS GONZALEZ (“Manota” and “Cordero”) 
Age:  28
Charlotte, North Carolina

JOSE JONATHAN GUEVARA-CASTRO (“Suspechoso”)
Age:  25
Formerly of Roosevelt, New York, and Annapolis, Maryland

VICTOR LOPEZ-MORALES (“Persa”)
Age:  32
Roosevelt, New York

EVER MORALES-LOPEZ (“Kyen,” “Inke,” and “White Boy”)
Age:  26
Freeport, New York

DAVID SOSA-GUEVARA (“Risky”)
Age:  28
Roosevelt, New York

KEVIN TORRES (“Quieto” and “Inquieto”)
Age:  24
Freeport, New York

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

An indictment was unsealed today in federal court in Brooklyn charging Gregory Altieri, the president of LNA Associates, with one count of wire fraud for allegedly running a two-year, $200 million Ponzi scheme based on nonexistent wholesale jewelry deals and false promises of inflated returns.  Altieri was arrested today and will be arraigned this morning via video conference before United States Magistrate Judge James Orenstein.

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.

According to the indictment, beginning in August 2017, Altieri solicited between $75 million to $85 million from over 80 investors from Queens, Staten Island, Long Island and elsewhere, allegedly to purchase jewelry at “closeout” prices and resell it at a high profit.  Altieri promised returns of between 30 and 70 percent in a matter of months.  While Altieri initially purchased some jewelry with investors’ money, in approximately May 2018 he began to use new investors’ money to pay earlier investors, representing to the latter group that they were receiving returns on their investments.  These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates, by “rolling over” their investments into new investments based on false promises to use this money to purchase additional jewelry.  By January 2020, when Altieri stopped making paybacks to investors, he owed them approximately $200 million based on the falsely inflated promised returns.   

“As alleged, Altieri defrauded investors, including retirees living off their pensions, by representing that he was buying and reselling jewelry for big profits, which was a lie,” stated Acting United States Attorney DuCharme.  “This Office is committed to protecting the investing public from con artists who would prey upon our community.”

“Stealing millions based on false promises made to retirees who rely on their pensions is contemptible. We allege Mr. Altieri knew he was going to have problems paying off his first round of investors, but he kept his con going anyway.  As a result of his actions, the FBI has provided him with stainless steel jewelry for his wrists today, and a guarantee of working to hold him and others who commit similar frauds accountable for their behavior,” stated FBI Assistant Director-in-Charge Sweeney. 

The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Altieri faces a maximum sentence of 20 years’ imprisonment.

The government’s case is being handled by the Office’s Business & Securities Fraud Section.  Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by EDNY Special Agent Martin Sullivan. 

The Defendant

GREGORY ALTIERI
Age:  53
Melville, New York

E.D.N.Y. Docket No. 20-CR-249 (BMC)

An indictment was unsealed today in federal court in Brooklyn charging Marcelo Esquivel with murder in-aid-of racketeering and causing death through the use of a firearm in connection with the fatal shooting of Daniel Licona-Gonzalez on July 2, 2012.  At the time of the murder, Esquivel was the leader of the Centrales Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, in Jamaica, Queens.  Esquivel was arrested yesterday and will be arraigned this afternoon via teleconference before United States Magistrate Judge Roanne L. Mann.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.

“As alleged, Esquivel ordered the murder of another human being in furtherance of the vicious code of the MS-13 gang, and the life of an 18-year-old man was ended by co-conspirators carrying out the defendant’s death wish,” stated United States Attorney Donoghue.  “The Eastern District will continue to do everything possible to crush the MS-13 and Esquivel’s arrest sends a powerful message that the passage of time will not deter this Office and our law enforcement partners from investigating, prosecuting and holding accountable anyone who commits violent crimes on behalf of the gang.”

“A man standing in the street was shot in the head, and later died because two members of MS-13 sought out a twisted type of gravitas in their violent gang,” stated FBI Assistant Director-in-Charge Sweeney. “The men rode a bicycle to carry out their orders allegedly given by Mr. Esquivel, an oddly childlike behavior with deadly consequences. Our FBI New York Metro Safe Streets Task Force is determined to pursue the leaders of this despicable gang, regardless of how much time has passed since their crimes took place.”

“As an MS-13 gang leader, Esquivel allegedly used his authority to order a hit on a rival gang member.  Using the gun allegedly provided by Esquivel, two MS-13 gang members took the life of another human being,” stated HSI Special Agent-in-Charge Fitzhugh.  “A human life is a human life, regardless of gang affiliation, and gang on gang violence will not be tolerated.  HSI will continue to collaborate with the FBI and NYPD to take murderers off the street and try to bring some solace to the victims’ families.”

“Our NYPD investigators, with our state and federal partners, as shown in this case will relentlessly seek justice against gangs no matter when or where their brutal violence is carried out,” stated NYPD Commissioner Shea.

As set forth in court filings, on July 2, 2012, Esquivel directed two MS-13 members to murder a member of the rival Latin Kings gang and provided them with a gun.  Coconspirator-1 was a new member of the gang and hoped to earn respect within the gang by carrying out an act of violence.  Coconspirator-1 and Coconspirator-2 then set out on a bicycle to find a Latin King to murder.  Coconspirator-2 rode the bicycle and Coconspirator-1 stood on the bicycle’s back pegs.  They went to a location that they understood was Latin Kings’ territory to find their target.  In the vicinity of Lowe Court and 149th Street in Jamaica, they saw a group of men that they believed were Latin Kings.  One of the Coconspirators yelled, “La Mara,” a reference to his gang, and shot Licona-Gonzalez in the head.  The victim died the following day.

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

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

If convicted, Esquivel faces a mandatory sentence of life imprisonment and is eligible for the death penalty.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Nadia E. Moore is in charge of the prosecution.

The Defendant:

MARCELO ESQUIVEL (also known as “Profugo” and “Baby”)
Age:  31
Jamaica, New York

E.D.N.Y. Docket No.: 20-CR-250 (MJB)

WASHINGTON – Attorney General William P. Barr announced today the designation of Seth D. DuCharme as Acting U.S. Attorney for the Eastern District of New York, pursuant to 5 U.S.C. § 3345(a)(3), effective July 10, 2020.

“Seth has served the Department with distinction during his time at Main Justice,” stated Attorney General Barr.  “He is a talented and experienced prosecutor who manages with a steady hand.  His experience in prosecuting violent crime, terrorism, and public corruption, will serve him well in his return to New York to lead the office.  The Deputy Attorney General and I look forward to working with him in his new role.”

“I am deeply honored to return to my home in the Eastern District of New York to serve as the Acting United States Attorney,” stated Mr. DuCharme.  “Applying all of my experience over the many years living here and working alongside some of the most outstanding people in the Department of Justice, I am firmly committed to serving our community and our country to the highest standards and in the finest tradition of this Office.  I wish my predecessor, Rich Donoghue, great success as he heads to Washington, D.C., to help lead the Department.” 

Mr. DuCharme will serve as chief federal law enforcement officer for a district comprising Brooklyn, Queens and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island.  The district serves over eight million residents.  Its Criminal Division has approximately 115 Assistant U.S. Attorneys, and its Civil Division has approximately 60 Assistant U.S. Attorneys.

Mr. DuCharme most recently served in Main Justice as the Principal Associate Deputy Attorney General.  From March 2019 to December 2019, Mr. DuCharme served as a Counselor to Attorney General Barr.  He worked with the Deputy Attorney General and the Attorney General to supervise and coordinate the work of all of the Department’s components, including all 93 United States Attorney’s Offices.  Additionally, he helped to coordinate national initiatives against fraud, opioid trafficking, transnational organized crime, international terrorism and other national security priorities. 

Prior to his work at Main Justice, Mr. DuCharme served as the Chief of the Criminal Division in the U.S. Attorney’s Office for the Eastern District of New York, where he supervised the investigations and prosecutions by the Office across a wide range of practice areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime. 

Mr. DuCharme first joined the U.S. Attorney’s Office for the Eastern District of New York in March 2008 and has served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections.  He also has served as the Office’s National Security Cyber Specialist and representative on the Anti-Terrorism Advisory Council.

Mr. DuCharme is a 2003 graduate of Fordham University School of Law, where he was selected as a Stein Scholar and as an editor on the Fordham Law Review.  He graduated cum laude, Order of the Coif.  Mr. DuCharme received his B.A. from Hamilton College in 1992, with Honors in English literature. 

Before attending law school, Mr. DuCharme served as a Deputy U.S. Marshal in Brooklyn from 1996 to 2000.

For more information about the U.S. Attorney’s Office for the Eastern District of New York, please visit https://www.justice.gov/usao-edny.

First Assistant United States Attorney Mark J. Lesko will remain in that role.

Today, Attorney General William P. Barr announced the appointment of U.S. Attorney Richard Donoghue as Principal Associate Deputy Attorney General.  Current Principal Associate Deputy Attorney General Seth D. DuCharme has been designated as Acting U.S. Attorney for the Eastern District of New York (E.D.N.Y.), pursuant to 5 U.S.C. § 3345(a)(3).  The U.S. Attorney for the Eastern District of New York is the chief federal law enforcement officer for a district comprising Brooklyn, Queens, and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island, with over six million residents.

“Rich has served with distinction and integrity for many years in the Eastern District of New York, earning a well-deserved reputation throughout New York City and Long Island as an outstanding prosecutor with second-to-none judgment,” said Attorney General William P. Barr.  “Throughout his time as an Assistant U.S. Attorney, Chief of the Criminal Division for E.D.N.Y., and U.S. Attorney, Rich’s intellect, decisiveness, management style, and dedication to the job has led to him successfully prosecuting many high-profile violent-crime cases (including against MS-13 and other violent gangs), drug trafficking offenses, and white-collar crimes.  His experience will be a huge asset to the Office of the Deputy Attorney General, and we look forward to working with him here at Main Justice.”

Since January 2018, Richard has served as U.S. Attorney for the Eastern District of New York.  During his tenure, he oversaw a number of high-profile cases of national significance.  Under his leadership, his office successfully prosecuted MS-13 racketeering cases and secured convictions against Sinaloa Cartel leader Joaquin (El Chapo) Guzman, Keith Raniere, and high-ranking members of NXIVM, an organization that was engaged in sex trafficking and forced labor.  Additionally, Richard has overseen the ongoing prosecutions of Chinese telecommunications company Huawei and several subsidiaries on racketeering charges and Huawei CFO Wanzhou Meng on fraud charges.

Previously, from 2000 to 2011, Richard served as an AUSA in the Eastern District of New York, including serving as Chief of the Criminal Division and Chief of the Long Island Criminal Division.  While at the office, he received the New York City Bar Association’s Henry L. Stimson Medal in 2007 and the Eastern District Association’s 2009 Charles E. Rose Award.  Prior to that, he served on active duty in the U.S. Army JAG Corps, where he held positions including Military Magistrate Judge, Prosecutor, Defense Counsel, and Contract Litigator.  He also served as a paratrooper in the 82nd Airborne Division. 

Richard received his B.A., cum laude, from Hofstra University and his J.D. from St. John’s University School of Law.

Seth DuCharme is a veteran of the U.S. Attorney’s Office for the Eastern District of New York and returns to E.D.N.Y. after serving in senior positions at Main Justice.  In addition to being Principal Associate Deputy Attorney General, from March 2019 to December 2019, Seth served as a Counselor to the Attorney General.  In those positions, he worked with the Attorney General and the Deputy Attorney General to supervise and coordinate the work of all of the Department’s components, including all 93 United States Attorney’s Offices.  Additionally, he helped to coordinate national initiatives against transnational organized crime and violent gang elements and worked closely with the Department’s components on countering international terrorism and other national security threats. 

“Seth has served the Department with distinction during his time at Main Justice,” said Attorney General William P. Barr.  “He is a talented and experienced prosecutor who manages with a steady hand.  His experience in prosecuting violent crime, terrorism, and public corruption, will serve him well in his return to New York to lead the office.  The Deputy Attorney General and I look forward to working with him in his new role.”

Prior to his work at Main Justice, Seth was the Chief of the Criminal Division for E.D.N.Y., where he supervised investigations and prosecutions by the office across a wide range of practice areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime.  He first joined E.D.N.Y. in March 2008 and served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections.  He also served as the Office’s National Security Cyber Specialist and its representative on the Anti-Terrorism Advisory Council.

Seth is a 2003 graduate of Fordham University School of Law, where he was selected as a Stein Scholar and also as an editor on the Fordham Law Review.  He graduated cum laude, Order of the Coif.  Seth received his B.A. from Hamilton College in 1992, with Honors in English literature. 

For more information about the U.S. Attorney’s Office for the Eastern District of New York, please visit https://www.justice.gov/usao-edny.

A criminal complaint was unsealed today in federal court in Brooklyn charging Kevin Jay Lipsitz with violations of the Defense Production Act and wire fraud.  Lipsitz allegedly sold personal protective equipment (PPE) and other health and medical materials, some of which were designated as scarce due to the COVID-19 pandemic, at prices far exceeding prevailing market prices.  Lipsitz also allegedly lied to customers about his inventory of such scarce materials and his ability to timely ship those items to customers.  Lipsitz is the Chief Executive Officer and apparent sole owner of SuperGoodDeals.com Inc. (SGD), a New York corporation located in Staten Island.

Lipsitz was arrested today and is scheduled to make his initial appearance via teleconference this afternoon before United States Magistrate Judge Roanne L. Mann.  In a separate action, the Federal Trade Commission has filed civil charges against Lipsitz. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the arrest and charges. 

According to court filings, between February 2020 and April 2020, Lipsitz and SGD accumulated a large stockpile of PPE and other medical products, including facemasks and N-95 and KN-95 filtering face-piece respirators.  Lipsitz then sold the items at markups ranging from 150 percent to over 500 percent above his purchase price.  To induce customers to purchase his products, Lipsitz misrepresented SGD’s inventory and ability to quickly fill and ship orders.  On the SGD website, Lipsitz promised customers that they could “pay today” and their orders would ship “tomorrow.” Lipsitz would issue same day shipping confirmations which included tracking numbers.  Nevertheless, Lipsitz did not deliver the PPE in the promised timeframe, often shipping the merchandise weeks after orders were placed and after customers lodged complaints or tried to cancel their orders.   

“The defendant allegedly took advantage of the pandemic and the public’s urgent need for life-saving PPE to enrich himself illegally,” stated United States Attorney Donoghue.  “Our Office and the Department’s COVID-19 Hoarding and Price Gouging Task Force will continue working tirelessly to put an end to such conduct.”  Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Office in New Jersey, and the Federal Trade Commission for their assistance in the case.

“We’re continuing to work diligently across the country to find those people who would turn a deadly health crisis into an opportunity to make illicit profits,” stated Carpenito. “As alleged in the complaint, this defendant not only overcharged for desperately needed personal protective equipment, he lied to his customers about how fast he could ship their orders, taking their money up front and leaving them with nothing to show for it. This is precisely the type of conduct the Task Force will continue to aggressively investigate and prosecute.”  

“Long before the citizens of New York City fully anticipated the impact of the COVID pandemic, Lipsitz was busy stockpiling essential PPE that would soon become a scarce commodity.  At a time when these items were needed for a critical health crisis, he then illegally marked up the price—in some cases by a 500% margin—for the benefit of himself and himself alone. When this country faces a crisis, we are supposed to stand together as a community and push through it, not turn our backs, gouge fellow citizens, and try to profit from it. The alleged behavior is a disgrace,” stated FBI Assistant Director-in-Charge Sweeney.

“Price gouging PPE to make a profit during a global pandemic is just part of Lipsitz’ alleged crimes.  He is also alleged to have taken advantage of customers through false promises and fraud,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI New York, working with the FBI and DOJ’s COVID-19 Hoarding and Price Gouging Task Force, will continue to arrest those whose criminal acts hurt a community in need.”

“At a time when life-saving PPE was needed to fight COVID-19, the defendant chose personal greed over the life and safety of first responders and the heroes in the medical community. Price gauging, hoarding, and lying to consumers will always be uncovered by law enforcement; and those participating in such schemes will be brought to justice,” stated USPIS Inspector-in-Charge Bartlett.

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

Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving PPE occurs.  The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices. 

Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: disaster@leo.gov.

The government’s case is being handled by the Office’s Business & Securities Fraud and General Crimes Sections.  Assistant United States Attorneys Julia Nestor and Andrew Wang are in charge of the prosecution.

The Defendant:

KEVIN JAY LIPSITZ
Age:  61
Staten Island, New York

E.D.N.Y. Docket No. 20-MJ-509

Rayvaughn Williams was arrested today on a criminal complaint filed in federal court in Brooklyn charging him with the attempted robbery of the Canarsie Plaza Pharmacy in Brooklyn during which an employee of the pharmacy was repeatedly stabbed.  Vaughn’s initial appearance is scheduled for this afternoon via video conference before United States Magistrate Judge Roanne L. Mann.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.

As detailed in the complaint, on August 12, 2019, Williams entered the pharmacy and claimed he was there to pick up a prescription.  When the employee could not find a record of the prescription, Williams removed a knife from a plastic bag he was carrying and demanded money.  When the employee tried but failed to open the register, Williams vaulted over the counter and stabbed the employee repeatedly.  The employee was seriously wounded but survived the attack, which was recorded on the pharmacy’s security cameras.

“As alleged, Williams brutally stabbed a victim who had offered no resistance to the attempted robbery of the pharmacy,” stated United States Attorney Donoghue.  “Such wanton disregard for life will not be tolerated and will be prosecuted to the full extent of the law.  I commend the ATF Special Agents and the NYPD detectives for their outstanding investigative work that led to the identification and arrest of the defendant.”

“This defendant, as alleged, not only attempted to rob a pharmacy servicing the Brooklyn community, but repeatedly stabbed an employee, causing serious injury.  Thanks to the tireless work of the men and women of the ATF/NYPD Robbery Task Force, he no longer poses a threat to public safety.  I would like to thank the United States Attorney’s Office for their work in prosecuting this case,” stated ATF Special Agent-in-Charge DeVito.

“Our joint work in this case has led to the arrest of a violent robbery suspect. This collaborative law enforcement effort shows our relentless commitment to justice,” stated NYPD Commissioner Shea.

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

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

The Defendant:

RAYVAUGHN WILLIAMS
Age: 24
Brooklyn, New York

E.D.N.Y. Docket No.: 20-MJ-507

A complaint was unsealed yesterday in the Eastern District of New York charging Bryant Espinoza Aguilar, the stepson of Sinaloa Cartel leader and notorious fugitive Rafael Caro Quintero, with conspiring to commit violations of the Kingpin Act, an economic sanctions program against narcotics traffickers that is administered and enforced by the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury.  Specifically, Espinoza is charged with assisting Caro Quintero and his common law wife by putting their assets in his own name, thereby violating OFAC’s prohibition on United States Citizens from conducting financial transactions with specially designated narcotics traffickers.

The complaint was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York; Timothy J. Shea, Acting Administrator, Drug Enforcement Administration (DEA); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Dermot F. Shea, Commissioner, New York City Police Department (NYPD); and Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the charge.

According to court filings, OFAC designated Caro Quintero as a specially designated narcotics trafficker in 2000, and designated Caro Quintero’s wife as a specially designated narcotics trafficker in 2016.  The OFAC designations stem from Caro Quintero’s criminal history as the leader of the Caro Quintero drug trafficking organization, a faction of the Mexican organized crime syndicate known as the Sinaloa Cartel.  Between January 1980 and January 2017, Caro Quintero led a continuing criminal enterprise responsible for importing into the United States and distributing massive amounts of illegal narcotics and conspiring to murder persons who posed a threat to his narcotics enterprise.  The murder conspiracy includes Caro Quintero’s kidnapping and murder of DEA Special Agent Enrique “Kiki” Camarena in Guadalajara, Jalisco, Mexico in February 1985. 

On August 9, 2013, a Mexican tribunal ruled that Caro Quintero could be released from custody because he had been tried improperly in a federal tribunal, rather than a state tribunal.  The Mexican tribunal’s finding was later overturned, but Caro Quintero remains at large as a fugitive from Mexican and U.S. justice. 

The complaint charges Espinoza Aguilar transferred property owned by his mother into his own name and bribed a public official to change the name of the property’s owner on public registry documents to protect the property from being restrained as a result his mother’s OFAC designation. 

“As alleged, the defendant acted as a straw man to protect property purchased with the illicit, blood-stained proceeds of his stepfather’s drug trafficking empire from being seized by the government,” stated United States Attorney Donoghue.  “This Office and our partners at the Drug Enforcement Administration are using every legal measure at our disposal to hold accountable those enablers of Caro Quintero and bring them to justice.”  Mr. Donoghue expressed his grateful appreciation to the DEA’s Raleigh Division Office for its assistance on the case.

“On February 7, 1985, DEA was forever changed when Special Agent Enrique “Kiki” Camarena was kidnapped, tortured, and murdered in Guadalajara, Mexico,” stated DEA Acting Administrator Shea.  “We will never forget his sacrifice and remain steadfast in our pursuit of the man responsible for his death, Rafael Caro Quintero, and those that continue to protect and enable his criminal activities.  Let today’s action be a clear message to Caro Quintero, his family, and his criminal associates — we will stop at nothing in our pursuit for justice for SA Camarena.” 

“While his stepfather, a Sinaloa Cartel leader, was specially designated by OFAC as a narcotics trafficker twenty years ago, Espinoza Aguilar is alleged to have violated the Kingpin Act by transferring his stepfather’s assets into his name, seeking to evade the sanctions program,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI’s partnership with the DEA and its Strike Force is one in which collaboration is key, and will continue to focus on arresting those who pursue ways to circumvent the law and hide their criminal acts.”

“I commend the dedicated teamwork of the New York Strike Force which was instrumental in working to bring this suspect to justice. This defendant attempted to protect and hide the profits of dangerous narcotics that were our communities, profits made at the expense of the safety of our communities. We will continue to be vigilant in working together with our law enforcement partners to keep our neighborhoods safe, to keep harmful narcotics off our streets and those who commit these types of crimes, or protect those who do, are held accountable,” stated NYSP Superintendent Corlett.

“This case is another example of our joint responsibilities to eradicate international drug trafficking. Our NYPD detectives, and state and local partners, stop at nothing to stem the flow of illegal narcotics,” stated NYPD Commissioner Shea.

The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.  The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.

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

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Gina M. Parlovecchio, Michael Robotti and Erin Reid are in charge of the prosecution.

The Defendant:

BRYANT ESPINOZA AGUILAR
Age:  30
United States and Mexico

E.D.N.Y. Docket No. 20-MJ-458

A criminal complaint was unsealed today in federal court in Brooklyn, New York charging Luis Enrique Martinelli Linares (Luis Martinelli Linares) and Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), for their roles in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.  Luis Martinelli Linares and Ricardo Martinelli Linares were arrested today at el Aeropuerto Internacional la Aurora in Guatemala.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate 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.  The defendants are alleged to have participated in the scheme by, among other means, serving as intermediaries for 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.  Luis Martinelli Linares and Ricardo Martinelli Linares were each charged with one count of conspiracy to commit money laundering. 

As alleged in the complaint, between approximately August 2009 and January 2014, the defendants facilitated the payment of bribes from Odebrecht to or for the benefit of the Panama Government Official by taking a number of steps that included opening and managing secret bank accounts held in the names of shell companies in foreign jurisdictions.  These secret bank accounts were used to receive, transfer and deliver the bribe payments.  The defendants served as the signatories on certain of the shell company bank accounts and personally sent and caused to be sent wire transfers through the structure of shell company bank accounts to conceal and spend bribery proceeds.  Many of these financial transactions were in U.S. dollars and were made through U.S. banks, some of which were located in New York.

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

The case is being prosecuted by Assistant United States Attorneys Julia Nestor and Alixandra Smith of the Office’s Business and Securities Fraud Section, Criminal Division Fraud Section Trial Attorney Michael Culhane Harper and Money Laundering and Asset Recovery Section Trial Attorneys Barbara Levy and Michael Redmann.  The FBI’s International Corruption squad in New York investigated this case.

The Criminal Division’s Office of International Affairs provided substantial assistance. 

The Defendants:

LUIS ENRIQUE MARTINELLI LINARES
Age: 38
Panama City, Panama

RICARDO ALBERTO MARTINELLI LINARES
Age: 40
Panama City, Panama

E.D.N.Y. Docket No. 20-M-498 (RML)

A criminal complaint was unsealed today in federal court in Brooklyn, New York, charging Luis Enrique Martinelli Linares (Luis Martinelli Linares) and Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) for their roles in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. 

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 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.  The two individual defendants are alleged to have participated in the scheme by, among other things, serving as intermediaries for 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.  Luis Martinelli Linares and Ricardo Martinelli Linares were each charged with one count of conspiracy to commit money laundering.  

Luis Martinelli Linares and Ricardo Martinelli Linares were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6 pursuant to a provisional arrest request from the United States.  

As alleged in the complaint, between approximately August 2009 and January 2014, the defendants facilitated the payment of bribes from Odebrecht to or for the benefit of the Panama Government Official by taking a number of steps that included opening and managing secret bank accounts held in the names of shell companies in foreign jurisdictions.  These secret bank accounts were used to receive, transfer, and deliver the bribe payments.  The defendants served as the signatories on certain of the shell company bank accounts, and personally sent and caused to be sent wire transfers through the structure of shell company bank accounts to conceal and spend bribery proceeds.  Many of these financial transactions were in U.S. dollars and were made through U.S. banks, some of which were located in New York.

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

The FBI’s International Corruption squad in New York investigated this case.  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, and Assistant U.S. Attorneys Alixandra Smith and Julia Nestor of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.

The Criminal Division’s Office of International Affairs provided substantial assistance.  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 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 year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

An indictment has been returned in federal court in Central Islip, New York charging Ashraf Omar Eldarir, a U.S. citizen, with smuggling Egyptian cultural property into the United States.  Eldarir was previously arrested on a complaint in February 2020 after arriving at John F. Kennedy International Airport (JFK) with three suitcases filled with undeclared Egyptian antiquities.  Eldarir will be arraigned at a later date.   

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), and Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the indictment.

As set forth in court filings, on January 22, 2020, Eldarir arrived at JFK from Egypt with three checked suitcases.  Eldarir falsely declared to U.S. Customs and Border Protection (CBP) that he was carrying goods valued at only 300 U.S. dollars.  However, when CBP officers opened Eldarir’s suitcases they found 590 bubble and foam-wrapped Egyptian antiquities.  When the protective wrapping was opened, loose sand and dirt spilled out, and some of the items smelled of wet earth, indicators that the artifacts had been recently excavated.  Among the items recovered by law enforcement officers are gold amulets from a funerary set; a relief with the cartouche of a Ptolemaic king that was originally part of a royal building or temple; wooden tomb model figures with linen garments dating to approximately 1900 BCE; and two complete Roman period funerary stelae of the type found at Kom abu Bellou in Egypt.  Eldarir did not produce any of the required documentation from Egypt authorizing the export of the artifacts.  Eldarir was charged with one count of smuggling arising from this incident, and one count of smuggling involving an earlier trip in which he smuggled an ancient Egyptian polychrome relief.  

“These cultural treasures traveled across centuries and millennia, only to end up unceremoniously stuffed in a dirt-caked suitcase at JFK,” stated United States Attorney Donoghue.  “We commend our CBP and HSI partners for their excellent work and, with them, we stand ready to investigate and prosecute those who attempt to profit from the illegal smuggling of irreplaceable ancient artifacts.”

 Eldarir’s alleged smuggling of 590 artifacts pillaged from Egypt is yet another example of an individual seeking to profit by stealing history from another nation,” stated HSI Special Agent-in-Charge Fitzhugh.   “HSI New York continues to collaborate with our partners at CBP to stop the smuggling of illicit goods through the JFK airport and onto American soil.”

“U.S. Customs and Border Protection is extremely proud to have played an important role in the seizing of these Egyptian antiquities as this would be smuggler attempted to enter the country with his illegally obtained artifacts," stated CBP Director of Field Operations Miller.  “CBP’s cooperation with HSI and the Eastern District of New York demonstrates the continuing resolve of law enforcement in the United States to address illegal trafficking in stolen artifacts.”

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

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorney Marietou Diouf is in charge of the prosecution.  Cultural Property Coordinator Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.

The Defendant:

ASHRAF OMAR ELDARIR (also known as “Omar Eldarir”)
Age:  47
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-243 (LDH)

UPDATE

The defendant’s conviction for the conduct described in the press release below was vacated by the United States Court of Appeals for the Second Circuit on January 23, 2026.  See 20-CR-219 (DLI) ECF No. 169.

Earlier today, Paul Belloisi, an American Airlines mechanic at John F. Kennedy International Airport (JFK Airport), was arraigned via teleconference before United States Chief Magistrate Judge Cheryl L. Pollak on an indictment charging him with conspiracy to possess cocaine with intent to distribute, conspiracy to import cocaine and importation of cocaine.  Belloisi was arrested on February 5, 2020, released on a $300,000 bond and indicted by a grand jury in Central Islip, New York on June 18, 2020. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the charges.

According to court filings, on February 4, 2020, shortly after American Airlines flight 1349 arrived at JFK Terminal 8 from Montego Bay, Jamaica, a routine search by CBP officers who are members of the JFK Anti-Terrorism Contraband Enforcement Team revealed approximately 11.594 kilograms (25.56 pounds) of cocaine bricks concealed behind an insulation blanket in an external mechanical compartment beneath the aircraft.  CBP officers and HSI special agents then began visual surveillance of the aircraft from a distance.  Shortly before the aircraft was scheduled to depart, Belloisi was observed approaching the aircraft and entering the compartment where the cocaine had been hidden.  The officers confronted Belloisi after he exited the compartment and observed evidence that Belloisi had handled the area where the cocaine bricks were discovered.  Belloisi also had carried an empty tool bag to the aircraft and had cutouts in the lining of his jacket, which together were sufficiently large to hold the bricks of cocaine that had been in the compartment.

 "As alleged, this airline mechanic abused his position as a trusted employee and his access to sensitive areas of JFK Airport to participate in the clandestine importation of cocaine,” stated United States Attorney Donoghue.  “These charges will serve as a warning that federal law enforcement authorities remain vigilant in protecting the security of our borders and fighting the scourge of international narcotics trafficking.  Those who attempt to poison our communities by smuggling drugs through our ports of entry will be held accountable.” 

“As alleged, Belloisi was the ‘inside man’, moving more than 25 pounds of cocaine from Jamaica to New York,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI and CBP’s joint efforts continue to stem these threats to our aviation industry by which perpetuate the international movement of contraband through our airports.  HSI will continue to persistently investigate and dismantle these criminal enterprises working with our law enforcement and airline partners.”

“This internal conspiracy case serves as a great example of collaborative law enforcement efforts to combat those that would compromise their access to restricted space and equipment, while aiding international narcotics trafficking conspirators. U.S. Customs and Border Protection thanks our partners at HSI and the U.S. Attorney’s Office, Eastern District of New York, for their continued cooperation,” stated CBP Director of Field Operations Miller.

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

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

The Defendant:

PAUL BELLOISI
Age:  52
Hicksville, New York

E.D.N.Y. Docket No. 20-CR-219 (DLI)

Defendants Include Two New York City Department of Education Employees

Two criminal complaints were unsealed today in federal court in Brooklyn charging 11 members and associates of the New York City-based Bully street gang with crimes related to conspiracies to distribute drugs throughout Maine and in New York, smuggling drugs into Rikers Island, illegal weapons possession and money laundering.  The initial appearances of six defendants arrested today in Brooklyn and New Jersey—alleged Bully gang member Derrick Ayers and gang associates Bermon Clarke, Amy Sonnenblick, Nia Govan, Paul Harris and Anthony Kennedy—are scheduled for this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.  Defendant Amanda Walton was arrested in Maine.  Defendant Amanda Huard is currently not in custody.  The remaining defendants were previously incarcerated.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the charges.

“As alleged, these defendants trafficked narcotics between Maine and New York, including smuggling dangerous contraband drugs into Rikers Island,” stated United States Attorney Donoghue.  “Drug dealers, and those who launder their drug proceeds, destroy lives and communities and, in this case, jeopardized the safety and security of a prison.”

Mr. Donoghue expressed his grateful appreciation to the Maine Drug Enforcement Agency, the United States Attorney’s Office for the District of Maine, New Hampshire State Police, Maine State Police, Brewer Maine Police Department, Waterville Maine Police Department and Augusta Maine Police Department for their assistance in the case.

“These arrests will undoubtedly have a significant impact on public safety. As alleged, these gang members and their associates plagued communities from New York City to Maine, but today, thanks to the diligent work of the ATF/NYPD Joint Firearms Task Force, their criminal exploits have been brought to an end,” stated ATF Special Agent-in-Charge DeVito.  “I would like to thank the United States Attorney’s Office for their work in prosecuting this case and acknowledge the contributions of the New Hampshire State Police, Maine State Police, Maine Drug Enforcement Agency, Waterville Maine Police Department and the Augusta Maine Police Department.” 

“The NYPD’s responsibility to prevent crime and keep people safe knows no boundaries. In this case, our hardworking detectives and law enforcement partners dismantled an alleged drug gang with a complex distribution network that crossed state lines and penetrated Rikers Island,” stated NYPD Commissioner Shea.

“Contraband smuggling at Rikers Island continues to be a threat to the security of our City’s jails and an active area of investigation for DOI.  These defendants allegedly worked in concert using various methods to smuggle illicit drugs into Rikers Island, including mailing packages of paper soaked with K2 disguised as mail to inmates in an attempt to bypass Department of Correction screening procedures.  DOI is proud to partner with the U.S. Attorney for the Eastern District of New York, the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, and the New York City Police Department to investigate and prosecute these alleged crimes,” stated DOI Commissioner Garnett.

According to the complaints, Ayers, Clarke, Govan, Huard, Jessica Pelkey, Walton and Demetrius Wright are members of a drug ring operating in New York, Maine and elsewhere.  The organization trafficked cocaine base (or “crack”), heroin and other controlled substances using vehicles with hidden compartments and “trap” houses in Maine to store and sell narcotics.   

As alleged, the drug trafficking proceeds were deposited into various bank accounts, including an account controlled by Sonnenblick, who is employed as a paraprofessional by the New York City Department of Education, as is Clarke.  Sonnenblick then transferred the drug money to her co-conspirators.  In addition to laundering proceeds through bank deposits and wire transfers, drug proceeds were also laundered through the acquisition of vehicles, including a Range Rover purchased by Sonnenblick and used by Ayers.

As charged in the related complaint, Moeleek Harrell, the founder of the Bully gang and currently an inmate at Rikers Island, coordinated with associates Kennedy and Harris to smuggle 5-Fluoro MDMB-Pica, a Schedule I controlled substance commonly referred to as “K2,” into the jail.  Law enforcement officers recovered multiple pages of a court transcript that had been soaked in K2 and earmarked for delivery to Harrell.  A subsequent search of Harrell’s cell revealed additional pages of paper from comic books that field tested positive for synthetic cannabinoid and for fentanyl and/or heroin. 

Ayers, Clarke, Govan, Huard, Pelkey, Walton and Wright are charged with conspiracy to possess with intent to distribute heroin and at least 280 grams of crack cocaine; Ayers and Clarke are charged with possessing one or more firearms in relation to the drug conspiracy; Ayers, Clarke, Govan, Sonnenblick and Walton are charged with money laundering conspiracy; and Harrell, Harris and Kennedy are charged with conspiracy to distribute and possess with intent to distribute K2.

During searches of premises today in Maine, Massachusetts, New Jersey and New York, law enforcement officials found multiple firearms; a substantial amount of U.S. currency; drug manufacturing and packaging supplies; law enforcement paperwork pertaining to criminal investigations and narcotics believed to include marijuana, crack cocaine, heroin and fentanyl. 

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

The government’s case is being handled by the Office’s Organized Crime and Gangs Section and Public Integrity Section.  Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow and Special Assistant United States Attorney Virginia T. Nguyen are in charge of the prosecution.

The Defendants:

E.D.N.Y. Docket No. 20-MJ-453 (RER)

DERRICK AYERS (also known as “Mel”)
Age:  33
Rahway, New Jersey

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

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

Amanda Huard
Age:  38
Maine

JESSICA PELKEY
Age:  26
Presque Isle, Maine

AMY SONNENBLICK
Age:  48
Brooklyn, New York

AMANDA WALTON
Age:  31
Portland, Maine

DEMETTRIUS WRIGHT (also known as “Clean” and “Meexhi Brim”)
Age:  22
Brooklyn, New York

E.D.N.Y. Docket No. 20-MJ-472 (CLP)

MOELEEK HARRELL (also known as “Moe Money”)
Age:  30
Brooklyn, New York

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

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

Defendants Used GPS Tracking Device to Stalk and Target a Shooting Victim

An indictment was unsealed today in federal court in Brooklyn variously charging seven members and associates of the Elite Assassin Millas (“EAM”), a subset of the Bloods street gang, with racketeering conspiracy, murder in-aid-of racketeering, attempted murder in-aid-of racketeering, conspiracy to commit murder in-aid-of racketeering, assault in-aid-of racketeering, interstate stalking, accessory after-the-fact to attempted murder and assault and related firearms offenses.  Five defendants were arrested last night and will make their initial appearance via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.  The two remaining defendants, who are in federal custody, will be arraigned at a later date.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 charges and arrests.

“Gang-related violence begets more violence, and we will not tolerate the violent crimes allegedly committed by these defendants in our communities,” stated United States Attorney Donoghue.  “Thanks to the hard work of federal and local law enforcement officers, the defendants will now face prosecution for the charged crimes.  The Eastern District will continue working tirelessly to dismantle and eradicate violent street gangs like EAM that have turned streets into lethal shooting galleries in the neighborhoods of East New York.”

“Members of the FBI New York Metro Safe Streets Task Force work long, hard hours diligently investigating gang members who hold no regard for life, and who let a twisted turf war over drugs dictate who dies and who lives. We are out every day, doing our best to protect communities being terrorized by violent gangs, and the FBI agents and NYPD detectives should be commended for their commitment,” stated FBI Assistant Director-in-Charge Sweeney.

“Everything the NYPD does is geared toward preventing crime and keeping people safe. This indictment represents the coordinated work our detectives and federal partners do together to arrest those accused of inflicting violence in our neighborhoods,” stated NYPD Commissioner Shea.

As detailed in the government’s detention letter filed earlier today, the EAM set of the Bloods street gang follows many of the rules and the hierarchical structure of other Bloods sets, earning money through drug-trafficking and fraud, and protecting their reputation through violent crimes and firearms offenses.     

In recent years, Quandel Smothers has held EAM’s highest-ranking position of “Godfather.”  On April 30, 2011, Smothers allegedly shot a fellow EAM member whom he believed intended to harm another member of the gang over a drug-related dispute.  As a result of the shooting, the victim’s leg was amputated.

On March 25, 2015, another member of EAM was shot and killed in East New York, Brooklyn.  Almost immediately, EAM members and associates sought to retaliate by locating and killing those they believed to be responsible.  On April 21, 2015, Tyshawn Corbett allegedly shot and killed Michael Tenorio on McKinley Avenue in East New York.  Surveillance video of the murder shows that Corbett chased Tenorio down the residential block while firing at him, then continued shooting the victim after he fell to the ground.

On March 7, 2016, Corbett shot an individual (identified as “John Doe #1” in the indictment) on Shepard Avenue in East New York.  Surveillance video shows Corbett — who appears to have been lying in wait near a parked vehicle — run down the sidewalk and shoot John Doe #1 from close range.  John Doe #1 survived that attempt on his life, but on June 28, 2018, Corbett again shot John Doe #1 as he sat in a car parked in Jamaica, Queens, paralyzing him.  Corbett fled in a car driven by defendant Desmon Beckett.  This shooting was the result of extensive efforts by Corbett and brothers Marlon and Devon Bristol to stalk and kill their victim, including the use of a GPS tracking device that law enforcement officers subsequently recovered from John Doe #1’s car. 

In the spring of 2018, a feud developed between members of EAM and another individual (identified as “John Doe #2” in the indictment).  Surveillance video from June 10, 2018, shows defendant Corbett and John Doe #2 in a fistfight.  A short time later, the two shot at each other, but no one was hit.  Law enforcement officers later recovered one of the firearms used in the shooting incident from a storage unit maintained by Corbett under a false name.  The feud continued, and EAM members Qawon Allen and Andrew Campbell conspired with others to kill John Doe #2.  On July 28, 2018, a member of EAM repeatedly shot John Doe #2 on Glenmore Avenue in East New York using a firearm provided by Allen.  John Doe #2 was left paralyzed by the shooting. 

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

If convicted of murdering Tenorio, Corbett faces a mandatory sentence of life in prison, and is eligible for the death penalty.  If convicted of the firearms offenses, Allen faces a mandatory minimum sentence of 15 years in prison and a maximum of life in prison, and Smothers, Marlon Bristol and Devon Bristol each face a mandatory minimum sentence of five years in prison and a maximum of life in prison.  If convicted of the conspiracy to commit murder in-aid-of racketeering, Campbell faces up to 10 years in prison, and Beckett faces up to 10 years in prison if convicted as an accessory after-the-fact to the assault in-aid-of racketeering.  

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Margaret E. Gandy and Jonathan Siegel are in charge of the prosecution.

The Defendants:

TYSHAWN CORBETT (also known as “Reck”)
Age:  30
Brooklyn, New York

QAWON ALLEN (also known as “40” and “Phorty Wap”)
Age:  26
Brooklyn, New York

DESMONN BECKETT (also known as “Des”)
Age:  27
Brooklyn, New York

DEVON BRISTOL (also known as “D”)
Age:  29
Brooklyn, New York

MARLON BRISTOL (also known as “Marlo”)
Age:  32
Brooklyn, New York

ANDREW CAMPBELL (also known as “Phaze”)
Age:  24
Brooklyn, New York

QUANDEL SMOTHERS (also known as “Chucky”)
Age:  29
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-213 (KAM)

Richard P. Donoghue, the United States Attorney for the Eastern District of New York, and Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that special telephone numbers have been set up to receive complaints of possible violations of federal election laws relating to tomorrow’s primary election in New York City and other counties in their districts. 

The United States Attorneys said that their Offices will be available to receive complaints at the following numbers on Tuesday, June 23, 2020:

(646) 369-4739                       (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and

(718) 254-6790                       (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)

In addition, complaints of possible violations of federal election laws may be made directly to the Federal Bureau of Investigation at (212) 384-1000.

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. 

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

IN NEW YORK CITY

City Board of Elections

Main Office                         (866) 868-3692

TTY #:                                (212)-487-5496

IN COUNTIES OUTSIDE NEW YORK CITY

County Boards of Elections

Dutchess                                 (845) 486-2473

Nassau                                    (516) 571-8683

Orange                                    (845) 360-6500

Orange (Spanish language)    (855) 331-2444

Putnam                                  (845) 808-1300

Rockland                               (845) 638-5172

Suffolk                                   (631) 852-4500

Sullivan                                  (845) 807-0400

Westchester                           (914) 995-5700

Assistant United States Attorneys David J. Kennedy and Nicolas Roos are responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Southern District of New York.

Assistant United States Attorney Erik Paulsen is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Eastern District of New York.

An indictment was filed today in federal court in Central Islip charging Thomas Blaha with traveling to the Philippines with intent to engage in illicit sexual conduct, sexual exploitation of a child, distribution of child pornography and possession of child pornography.  Blaha was arrested on a complaint in February 2020 and released on a $1 million bond.  He will be arraigned at a later date.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.

“The defendant allegedly traveled halfway across the globe to sexually exploit a minor that he had enticed through Facebook and create child pornography,” stated United States Attorney Donoghue.  “The Department of Justice is committed to protecting children from online predators by identifying such offenders and prosecuting them to the full extent of the law.”  

“It is alleged Blaha made trips to the Philippines to sexually abuse a 13-year old female who was being exploited for money,” stated HSI Special Agent-in-Charge Fitzhugh.  “Crimes involving the sexual exploitation of unwitting children are the most heinous and will not be tolerated, regardless of where the sexual acts occur.  HSI is a global investigative agency, and with our resources and partnerships with the United States Attorney’s Office, we will stop at nothing to put an end to child victimization worldwide.”

According to court filings, in September and October 2019 Blaha traveled from New York to the Philippines to engage in sexual activity with a 13-year-old female and persuade her to take sexually explicit images of herself and send them to him in exchange for money.  As a part of the government’s investigation, in December 2019, search warrants were obtained for Blaha’s Facebook account, as well as his residence in Garden City and his electronic devices.  The searches revealed hundreds of images of children engaged in sexually explicit conduct.        

The charges in the indictment are allegations only, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Blaha faces a mandatory minimum sentence of 15 years’ imprisonment.

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

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

The Defendant:

THOMAS BLAHA
Age:  64
Garden City, New York

E.D.N.Y. Docket No. 20-CR-220 (JMA)

Two criminal complaints were unsealed today in federal court in Brooklyn charging Lamel Miller and Lafayette Morrison with Hobbs Act robbery in connection with the March 7, 2020 armed robbery of over $280,000 in cash from Aqueduct Racetrack in South Ozone Park, Queens.  Miller and Morrison were arrested earlier today and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.

According to court documents, at approximately 9:45 p.m. following the Gotham Day races at Aqueduct, Miller and a co-conspirator held up at gunpoint several racetrack employees – including Morrison who was employed as a racetrack security guard – as they were transporting more than $280,000 in cash earnings to a vault.  Miller and the co-conspirator, wearing surgical masks, emerged from their hiding spot in a stairwell and confronted the employees at gunpoint.  Miller and the co-conspirator took the employees’ cell phones and the cash, and forced the victims into a closet.  Morrison was actually an “inside man,” providing information in advance about where and when the money would be transported to the vault. Aqueduct surveillance video shows Miller and the co-conspirator, still wearing surgical masks, carrying a garbage bag and a duffel bag when they exited the racetrack office and walked toward a parking lot at approximately 10:05 p.m.

“The defendants allegedly gambled that they could pull off a high-stakes robbery with the benefit of inside information, but thanks to the outstanding efforts of ATF Special Agents and NYPD detectives, they ended up on the losing end of that bet,” stated United States Attorney Donoghue. 

“Preventing violent crime and the illegal use of firearms remain the core of ATF’s mission. As alleged, Miller and Morrison conspired in a brazen armed robbery, however today, thanks to the efforts of the ATF/NYPD Joint Robbery Task Force, they were taken off the streets of this city and no longer pose a threat to public safety,” stated ATF Special Agent-in-Charge DeVito.  “I would like to thank our law enforcement partners and the United States Attorney’s Office for their work in prosecuting this case.”

“This alleged crew may have seen their inside job as a day at the races, but our arrests and federal complaints prove otherwise. Our partnerships, precision policing and vigilance in fighting for victims remains strong,” stated NYPD Commissioner Shea.

The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face up to 20 years’ imprisonment.

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

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

The Defendants:

LAMEL MILLER
Age: 37
Queens, New York

LAFAYETTE MORRISON
Age: 37
Jamaica, Queens

E.D.N.Y. Docket Nos. 20-MJ-400; 20-MJ-438

Two indictments were returned yesterday in federal court in Central Islip, New York, charging Samantha Shader, and co-defendants Colinford Mattis and Urooj Rahman in connection with their alleged attempts to use improvised incendiary devices, commonly known as “Molotov Cocktails,” to damage and destroy New York City Police Department vehicles during protests this past month. 

The seven-count indictments each charge the defendants with the use of explosives, arson, use of explosives to commit a felony, arson conspiracy, use of a destructive device, civil disorder, and making or possessing a destructive device.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 charges.

“Amid largely peaceful demonstrations taking place on the night of May 29, 2020, these defendants allegedly hurled Molotov Cocktails at NYPD vehicles without regard for the potentially deadly consequences,” stated United States Attorney Donoghue.  “Such criminal acts should never be confused with legitimate protest.  Those who carry out attacks on NYPD Officers or vehicles are not protesters, they are criminals, and they will be treated as such.”    

“A little more than a week after their arrests, Shader, Mattis, and Rahman have been charged with seven-count indictments in response to their potentially deadly attacks. Their criminal behavior risked lives, destroyed equipment that exists to serve the community, siphoned response resources, and created a threat to those who had every right to safely assemble and express their opinion,” stated FBI Assistant Director-in-Charge Sweeney.  

“Violence, like that alleged here, not only endangers our NYPD officers but threatens the constitutional right of people to peacefully protest. These indictments by our federal partners reflect our joint condemnation of the kind of isolated acts a just society can never tolerate,” stated NYPD Commissioner Shea.

As detailed in court filings in the case against Mattis and Rahman, an NYPD surveillance camera recorded Rahman tossing a Molotov cocktail at an NYPD vehicle parked near the 88th Precinct in the Fort Greene section of Brooklyn, then fleeing in a tan minivan.  Police Officers pursued the minivan and arrested Rahman and Mattis, who was the vehicle’s driver.  In the vehicle, the NYPD found several component items for Molotov Cocktails, including a lighter, a bottle filled with liquid suspected to be gasoline and toilet paper, additional bottles and toilet paper, and a gasoline canister.

As detailed in court filings in the case against Shader, a video recorded by a witness captured her igniting a Molotov cocktail and throwing it at an NYPD vehicle occupied by four police officers, shattering two of its windows.  Police officers pursued Shader as she attempted to flee and apprehended her at the scene. 

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

If convicted on all counts, the defendants face sentences of up to life imprisonment.

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

The Defendants:

COLINFORD MATTIS
Age:  32
Brooklyn, New York

UROOJ RAHMAN
Age:  31
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-203 (BMC)

SAMANTHA SHADER
Age:  27
Catskill, New York

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

PRESS RELEASE

INDIVIDUAL CHARGED WITH SETTING NYPD VEHICLE ON FIRE IN BROOKLYN

A criminal complaint was filed Thursday in federal court in Brooklyn charging Michael Rodriguez with setting an unoccupied New York City Police Department vehicle on fire on June 2, 2020 in Williamsburg.  Rodriguez was arrested Thursday morning and was ordered detained pending trial this afternoon by United States Magistrate Judge Roanne L. Mann. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Daniel Nigro, Commissioner, Fire Department of New York (FDNY), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges. 

“Under the cover of pre-dawn darkness, Rodriguez allegedly set fire to a vehicle bearing an NYPD placard on a residential block in Brooklyn, endangering innocent residents of the area and first responders to the blaze and damaging a second vehicle,” stated United States Attorney Donoghue.  “The defendant’s actions have no place in civil society, and this Office will vigorously prosecute him and others who commit such acts of violence in our community.” 

“As charged, Rodriguez’s deliberate actions put not only the lives of New York City Police officers at risk, but also those of the FDNY first responders and civilians. Thanks to the dedicated work of the ATF/FDNY/NYPD Arson and Explosives Task Force, this suspect was quickly apprehended.  I would like to thank to the United States Attorney’s Office for their work in prosecuting this case,” stated ATF Special Agent-in-Charge DeVito.

“Beyond the dangerous torching of an NYPD vehicle, these allegations represent an attack on the peace and good order that all New Yorkers deserve. I commend our detectives, and law enforcement partners, for their swift and diligent work in this case,” stated NYPD Commissioner Shea.

“Using fire as a weapon to hurt others or destroy property puts innocent lives in danger and will never be tolerated in our city,” stated FDNY Commissioner Nigro. “I’m grateful for the outstanding collaboration of our Fire Marshals with the NYPD and ATF to apprehend this dangerous individual.”

As alleged in the complaint, at approximately 4:30 a.m., Rodriguez approached a vehicle parked on Devoe Street bearing an NYPD placard on the dashboard.  The vehicle, assigned to an NYPD captain, was parked at the location for the night.  Rodriguez was captured on video surveillance footage pouring liquid on the vehicle’s windshield, placing cardboard on the windshield, and then setting the cardboard on fire.  With the vehicle ablaze, Rodriguez pointed a cellular phone toward the vehicle and appeared to either record or take photographs of the fire.  The defendant then fled the scene on foot.  Another vehicle parked near the NYPD vehicle was also damaged by fire.

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

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

The Defendant:

MICHAEL RODRIGUEZ
Age:  32
Undomiciled

E.D.N.Y. Docket No. 20-MJ-431

Two criminal Complaints were filed Saturday evening in federal court in Brooklyn charging two women and a man with using and attempting to use improvised incendiary devices commonly known as “Molotov Cocktails” to damage and destroy New York City Police Department (NYPD) vehicles.  Defendants Colinford Mattis and Urooj Rahman, both residents of Brooklyn, were arrested in a van early Saturday morning while allegedly in possession of explosive device components shortly after Rahman hurled a Molotov cocktail at an NYPD vehicle before fleeing with Mattis.  A separate complaint charges Samantha Shader, a resident of Catskill, New York, who was arrested after allegedly throwing a Molotov cocktail at an NYPD vehicle occupied by four police officers.  The defendants charged in each of the complaints will make their initial appearances via teleconference on Monday, June 1, 2020, before United States Magistrate Judge Steven M. Gold. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, NYPD, announced the arrests and charges.

“These defendants are charged with attacking the New York City Police Department while its Police Officers are risking their lives to protect the Constitutional rights of protesters and the safety of us all,” stated United States Attorney Donoghue.  “No rational human being can ever believe that hurling firebombs at Police Officers and vehicles is justified.  The Eastern District of New York will do everything in its power to protect those who protect us all, and we will ensure that criminals who use the camouflage of lawful protest to launch violent attacks against Police Officers face justice.” 

“When you conduct a violent attack that breaks federal law, the FBI New York office, along with our NYPD and Department of Justice partners, will move with speed to hold you accountable.  Behavior like the attacks charged here puts our entire community - protestors and first responders alike - in danger, and we will simply not allow it to go unaddressed.  The consequences for conducting this alleged attack, and any similar activity planned for the future, will be severe,” stated FBI Assistant Director-in-Charge Sweeney. 

“Molotov Cocktails are violent tools of individuals looking to inflict harm and damage our city.  Crimes like these are devastating to their targets and also to the protestors and their right to free speech that police are working hard to protect.  It is reassuring that the U.S. Attorney in Brooklyn has taken this case.  I’m confident that the severest penalties under the law will be sought,” stated NYPD Commissioner Shea.

 As detailed in the complaint charging Mattis and Rahman, an NYPD surveillance camera recorded Rahman tossing a Molotov Cocktail at an unoccupied NYPD vehicle parked near the 88th Precinct in Brooklyn, New York and then fleeing in a tan minivan.  Officers pursued the minivan and arrested Rahman and Mattis, who was the vehicle’s driver.  The NYPD recovered several precursor items used to build Molotov Cocktails, including a lighter, a bottle filled with toilet paper and a liquid suspected to be gasoline in the vicinity of the passenger seat and a gasoline tank in the rear of the vehicle.

As detailed in the complaint charging Shader, a video recorded by a witness captured her igniting a Molotov Cocktail and throwing it at an NYPD vehicle occupied by four police officers, shattering two of its windows.  Police officers pursued Shader as she attempted to flee and apprehended her.  In a post-arrest statement, Shader later admitted to police that she had thrown the Molotov Cocktail at the NYPD vehicle.

The charges in the Complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, each defendant faces a mandatory-minimum sentence of 5 years and up to 20 years’ imprisonment.

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

The Defendants:

COLINFORD MATTIS
Age:  32
Brooklyn, New York

UROOJ RAHMAN
Age:  31
Brooklyn, New York

E.D.N.Y. Docket No. 20-MJ-403

SAMANTHA SHADER
Age:  27
Catskill, New York

E.D.N.Y. Docket No. 20-MJ-402

Earlier today, the United States filed a civil complaint to forfeit a rare cuneiform tablet bearing a portion of the epic of Gilgamesh, a Sumerian epic poem considered one the world’s oldest works of literature.  Known as the Gilgamesh Dream Tablet, it originated in the area of modern-day Iraq and entered the United States contrary to federal law.  The tablet was later sold by an international auction house (the “Auction House”) to Hobby Lobby Stores, Inc. (“Hobby Lobby”), a prominent arts-and-crafts retailer based in Oklahoma City, Oklahoma for display at the Museum of the Bible (the “Museum”).  Despite inquiries from the Museum and Hobby Lobby, the Auction House withheld information about the tablet’s provenance.  The tablet was seized from the Museum by law enforcement agents in September 2019. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the civil action and stipulation.

“Whenever looted cultural property is found in this country, the United States government will do all it can to preserve heritage by returning such artifacts where they belong,” stated United States Attorney Donoghue.  “In this case, a major auction house failed to meet its obligations by minimizing its concerns that the provenance of an important Iraqi artifact was fabricated, and withheld from the buyer information that undermined the provenance’s reliability.”  Mr. Donoghue thanked the U.S. Attorney’s Office for the District of Columbia and the Justice Department’s Money Laundering and Asset Forfeiture Section (MLARS) for their assistance.

“We are proud of our investigation that led to this reclaiming of a piece of Iraq’s cultural history.  This rare tablet was pillaged from Iraq and years later sold at a major auction house, with a questionable and unsupported provenance,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI New York’s Cultural Property, Arts and Antiquity Investigations program will continue to work with prosecutors to combat the looting of antiquities and ensure those who would attempt to profit from this crime are held accountable.”

The government’s investigation revealed that in 2003, a U.S. antiquities dealer (the “Antiquities Dealer”) purchased an encrusted cuneiform tablet from a Middle Eastern antiquities dealer in London.  After the tablet was imported and cleaned, experts in cuneiform recognized it as a portion of the Gilgamesh epic in which the protagonist describes his dreams to his mother (hence, the “Gilgamesh Dream Tablet”).  The protagonist’s mother interprets the dreams as foretelling the arrival of a new friend.  She tells her son, “You will see him and your heart will laugh.” 

As alleged in the complaint, in 2007, the Antiquities Dealer sold the Gilgamesh Dream Tablet with a false provenance letter that stated the tablet had been inside a box of miscellaneous bronze fragments purchased in a 1981 auction.  This false provenance letter traveled with the tablet and was provided to the Auction House by a later owner.  As part of its due diligence, the Auction House’s antiquities director spoke with the Antiquities Dealer.  The Antiquities Dealer advised the Auction House that the provenance would not withstand scrutiny and should not be used in connection with a public sale.  The Auction House nevertheless represented to Hobby Lobby that the tablet was purchased in the 1981 auction.  Hobby Lobby purchased the tablet in a private sale in 2014.  In response to Hobby Lobby’s request for more details in connection with the purchase and the Museum’s expression of discomfort with the provenance in 2017, the Auction House advised both that the Antiquities Dealer had confirmed the details of the provenance.  However, the Auction House withheld the false provenance letter and the Antiquities Dealer’s name from Hobby Lobby and the Museum. 

The Museum cooperated with the government’s investigation.

The government’s case is being prosecuted by Assistant United States Attorney and Cultural Property Coordinator Karin Orenstein of the Office’s Civil Division, with assistance from Trial Attorney Ann Brickley of MLARS and Assistant U.S. Attorney Zia Faruqui of the U.S. Attorney’s Office for the District of Columbia.

E.D.N.Y. Docket No. 20-CV-2222 (AMD)

Richard P. Donoghue, United States Attorney for the Eastern District of New York, today emphasized his Office’s commitment to fighting sexual harassment in housing during the current pandemic.  In a letter sent to housing advocacy groups and other community organizations, Mr. Donoghue invited their assistance in identifying anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker or anyone with control over housing. 

Mr. Donoghue makes this announcement in response to reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.  Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familiar status, national origin and disability.  Sexual harassment is a form of sex discrimination prohibited by the Fair Housing Act.

“Tenants who find themselves unemployed and in dire financial straits due to the COVID-19 crisis are protected from discrimination under the Fair Housing Act.  No tenant should ever be expected to provide sexual favors in order to keep a roof over their head,” stated United States Attorney Donoghue.  “We will use all available enforcement tools to protect tenants from such unscrupulous and predatory conduct.”

In coordination with the Attorney General, U.S. Attorneys’ Offices across the country are investigating reports of housing-related sexual harassment resulting from the current COVID-19 pandemic.  The Attorney General has reaffirmed the commitment that the Department of Justice made when it launched its Sexual Harassment in Housing Initiative in October 2017.  The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.

Anyone who is aware of sexual harassment in housing on Long Island, Brooklyn, Queens or Staten Island is requested to contact this office, by email to USANYE-CivilRights@usa.doj.gov or by calling this office at 718-254-7000. 

Four complaints were unsealed today in federal court in Brooklyn variously charging 10 members and associates of the Indios Locos Salvatruchas clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization, with murder in-aid-of racketeering, attempted murder, murder conspiracy, related firearms offenses and marijuana distribution conspiracy. One defendant was arrested on Wednesday, May 13, 2020, in Maryland.  Five defendants were arrested today in New York and California.  On May 15, 2020, four defendants will be arrested and transferred to federal custody from detention facilities where they are currently held.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.

“The murders and crimes of violence allegedly committed by these defendants are trademark MS-13 offenses – cold-blooded, senseless and brutally violent – and pose a grave danger to the residents of our communities,” stated United States Attorney Donoghue.  “Thanks to the hard work of federal and local law enforcement officers, the defendants will now face prosecution for the charged crimes.  No matter what obstacles may arise, this Office will not rest until our mission to eradicate the MS-13 threat is accomplished.”  Mr. Donoghue expressed his grateful appreciation to the Queens County District Attorney’s Office, the NYPD's Queens North Homicide Squad and 109th Precinct Detective Squad  and the New York City Department of Investigation for their assistance in the investigation.

“MS-13 members do all they can to propagate a violent, deadly image as a gang. Their calculation that shouting the gang's name out in front of people on a subway platform will prevent anyone from interfering with a man being brutally beaten and murdered boggles the mind. Thanks to the work of the FBI Metro Safe Streets Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF), their violent reputation won't protect them from going to federal prison,” stated FBI Assistant Director-in-Charge Sweeney.

“Public executions are just another sobering example of the savagery that MS-13 engages in with the alleged criminal mayhem caused by those charged today,” stated HSI Special Agent-in-Charge Fitzhugh.  “This multi-agency investigation by the OCDETF is an excellent example of how law enforcement at all levels will continue to use all available resources, aggressively exploit all available intelligence, and work as a unified team with a simple and singular goal - ridding the scourge of MS-13 from our communities.”

“It is only through our joint efforts to relentlessly disrupt and dismantle this kind of senseless criminality that we can continue to keep New Yorkers safe.  I applaud our NYPD detectives and our federal and local law enforcement partners for investigating and prosecuting this case,” stated NYPD Commissioner Shea.

Murder of Andy Peralta

As detailed in the complaints and the government’s detention letter filed earlier today, alleged MS-13 associate Juan Amaya-Ramirez is charged with the murder of 17-year-old Andy Peralta.  On the night of April 23, 2018, Amaya-Ramirez and two others lured Peralta to Kissena Park in Flushing, Queens where they confronted him.  Peralta had a tattoo of a crown on his chest which Amaya-Ramirez and the others mistakenly believed to be a symbol of the rival Latin Kings gang.  The assailants fatally beat, stabbed and strangled Peralta.  The victim’s tattoo was also slashed.  Peralta’s assailants used Amaya-Ramirez’s iPhone to photograph Peralta’s corpse, while they displayed MS-13 gang signs with their hands.  The photograph was found in Amaya-Ramirez’s iCloud account during a court-authorized search of the account.

Murder of Victor Alvarenga

Alleged MS-13 associates Douglas Melgar-Suriano and Jairo Martinez-Garcia are charged with the murder of Victor Alvarenga, who was shot and killed near his home in Flushing, Queens.  In the early morning of November 4, 2018, the two defendants and a third individual laid in wait for Alvarenga.  The men approached Alvarenga, who was walking down the street.  After walking with him briefly, Melgar-Suriano allegedly shot Alvarenga multiple times in the head and body.  As Alvarenga writhed on the pavement, Martinez-Garcia also shot him. 

Murder of Abel Mosso

Alleged MS-13 member Ramiro Gutierrez and alleged gang associates Tito Martinez-Alvarenga and Victor Lopez are charged with the murder of Abel Mosso on a subway platform in Queens.  In the early afternoon of February 3, 2019, Lopez and Martinez-Alvarenga followed Mosso, who they believed to be a member of the rival 18th Street gang, onto the No. 7-train at the Main Street station in Flushing, trailed by Gutierrez.  Lopez and Martinez-Alvarenga assaulted Mosso inside the subway car and then dragged him out onto the platform at the 90th Street station in Jackson Heights.  The defendants produced a gun, but Mosso wrestled it away.  Gutierrez shouted in Spanish, “Nobody get involved, we’re MS-13, we’re going to kill him.”  Gutierrez then grabbed the gun from Mosso and shot him multiple times, killing him.  Law enforcement recovered a video posted on Facebook depicting the murder.

Conspiracy to Murder and Attempted Murder

Alleged MS-13 members Marlon Saracay-Lopez and Ismael Santos-Novoa, and alleged gang associate Emerson Martinez-Lara, are charged with conspiring between May 2019 and July 2019 to murder an MS-13 associate who failed to kill a rival gang member as ordered by Saracay-Lopez and Santos-Novoa.  Saracay-Lopez, Santos-Novoa and alleged gang associate Victor Ramirez are also charged with attempting to murder an 18th Street gang member.  During the resulting shooting on August 25, 2019 in Jackson Heights, Queens, a co-conspirator wounded an innocent bystander in the leg.

Martinez-Garcia, Melgar-Suriano, Ramirez and Santos-Novoa are scheduled to make their initial appearances this afternoon via teleconference before United States Magistrate Judge Robert M. Levy.  Saracay-Lopez’s initial appearance will take place in United States District Court for the Central District of California.  Martinez-Lara’s initial appearance will take place in the United States District Court in Maryland. 

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

If convicted of the murders, Amaya-Ramirez, Melgar-Suriano, Martinez-Garcia, Gutierrez, Martinez-Alvarenga and Lopez face mandatory sentences of life in prison and are eligible for the death penalty.  If convicted of the firearms and attempted murder charges, Saracay-Lopez, Santos-Novoa and Ramirez face a mandatory minimum sentence of 10 years in prison and a maximum of life in prison.  If convicted, Martinez-Lara faces up to 15 years in prison for marijuana distribution conspiracy and murder conspiracy.

This case was investigated as part of the ongoing efforts by the OCDETF, a partnership that brings together the combined expertise of federal, state and local law enforcement agencies.  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.

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

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Nadia E. Moore, Nadia Shihata and Phil Selden are in charge of the prosecution.

The Defendants:

MARLON SARACAY-LOPEZ (also known as “Plocky”)
Age:  33
Compton, California

JUAN AMAYA-RAMIREZ (also known as “Cadaver”)
Age:  22
Fresh Meadows, New York

RAMIRO GUTIERREZ (also known as “Cara de Malo”)
Age:  27
Flushing, New York

VICTOR LOPEZ (also known as “Curioso”)
Age:  21
Flushing, New York

TITO MARTINEZ-ALVARENGA (also known as “Imprudente”)
Age:  20
Flushing, New York

JAIRO MARTINEZ-GARCIA (also known as “Colmillo”)
Age:  21
Flushing, New York

EMERSON MARTINEZ-LARA (also known as “Fugitivo”)
Age:  21
College Point, New York

DOUGLAS MELGAR-SURIANO (also known as “Clemencia”)
Age:  24
Flushing, New York

VICTOR RAMIREZ (also known as “Curioso”)
Age:  20
Elmhurst, New York

ISMAEL SANTOS-NOVOA (also known as “Profe” and “Travieso”)
Age:  31
Flushing, New York

E.D.N.Y. Docket Nos. 20-MJ-347, 20-MJ-348, 20-MJ-349 and 20-MJ-350

A criminal complaint was filed today in federal court in Brooklyn charging Daniel Jou and Joseph Miner with receiving and possessing multiple firearms with obliterated serial numbers.  The defendants were arrested Tuesday night and made their initial appearances via teleconference this afternoon before United States Magistrate Judge Robert M. Levy.  The defendants were ordered detained pending trial.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., 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, after Joseph Miner praised extremist violence and expressed racist and anti-Semitic hatred on the internet, he and his co-defendant bought a collection of illegal firearms capable of inflicting mass bloodshed,” stated United States Attorney Donoghue.  “What the defendants did not know was that they were buying the guns from an undercover federal agent who had been investigating their plan to buy weapons that would be impossible to trace.  This Office, together with our law enforcement partners, will continue to exercise extreme vigilance to protect our communities by preventing individuals from purchasing illegal weapons.” 

“As alleged, Joseph Miner and Daniel Jou sought to acquire illegal firearms with serial numbers that were known to have been removed.  The social media posts from one of the defendants expressing support of a racial civil or holy war make the behavior alleged here even more alarming.  The actions of the subjects presented a clear danger to the community.  The FBI is focused on preventing violent acts before they occur, and I would like to thank the dedicated members of the New York Joint Terrorism Task Force who moved swiftly in addressing the threat posed by these individuals,” stated FBI Assistant Director-in-Charge Sweeney. 

“Seeking to buy illegal weapons after one defendant has at times advocated for racially motivated violence constitutes a very real threat to the citizens of New York,” stated NYPD Commissioner Shea. “I commend the work of the agents and detectives of the Joint Terrorism Task Force on this investigation. The case demonstrates again that we will seek out those advocating violent extremism no matter what the brand or twisted ideology.”   

As alleged in public filings, law enforcement authorities began investigating Miner in late 2019 when he posted on social media accounts his interest in obtaining assault weapons and other firearms for a racial civil war or racial holy war.  For example, Miner posted on his Instagram account the following content in December 2019 and January 2020:

•           A photograph of himself giving a Nazi salute and writing, “God I hate women jews and n-----rs.”  In another post, Miner is depicted giving a Nazi salute as he displays a large knife and adds, “overthrowing [Jews] is our Christian duty;”

•           In response to a bloody crime scene photograph from the December 2019 machete attack at a synagogue in Monsey, New York, Miner commented, “ngl [not gonna lie] this is pretty f-----g exciting;”

•           A photograph of a Planned Parenthood location being blown up by the comic book character The Joker.

•           On or about January 22, 2020, Miner posted a photograph of the entrance to a Jewish community center in Queens. 

Although Miner at times disavowed interest in conducting an attack himself, he also posted Instagram messages displaying suicidal ideations and fantasizes about “martyring” himself and “go[ing] out in a blaze of glory” in a mass shooting.

In April 2020, Miner initiated contact with an undercover law enforcement agent posing as a firearms dealer and reviewed with the agent a list of handguns and a shotgun that he wanted to purchase for himself and Jou.  Thereafter, Miner and Jou purchased numerous firearms from the undercover agent knowing that the serial numbers that would allow the weapons to be traced had been removed.  On April 26, 2020, the defendants met the undercover agent at a hotel in Queens and indicated they were willing to spend thousands of dollars to purchase firearms and ammunition, including AR-15 assault rifles

In the days following the April 26, 2020 meeting, the defendants used an encrypted messaging service to request additional firearms from the undercover agent.  For example, Jou offered to spend up to $5,000 to purchase eight firearms, including a Colt M4 assault style rifle and multiple handguns.  Similarly, Minor offered $2,000 to purchase two handguns, a shotgun and a “Ghost AR” – an assault-style firearm made from different gun parts and without serial numbers or other identifying markings – and a “suppressor,” or silencer.

On the evening of May 12, 2020, Jou and Miner met the undercover agent at a hotel in Queens.  During the meeting, the undercover agent showed Jou and Miner several firearms, many with the serial numbers obliterated.  Jou purchased a Glock 19 handgun with an obliterated serial number and a fully automatic assault rifle with a silencer attachment and high capacity magazine.  Jou also expressed his interest in buying additional firearms from the undercover agent at a later date.  Miner purchased a handgun and shotgun, both with obliterated serial numbers, and an AR-15 style assault rifle “ghost” gun with a silencer attachment and high capacity magazine.  Miner also bought more than 200 rounds of ammunition, which he planned to share with Jou.

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

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

The Defendants:

DANIEL JOU
Age:  40
Bayside, Queens

JOSEPH MINER
Age:  29
Bayside, Queens

E.D.N.Y. Docket No. 20-MJ-368

BROOKLYN, NY— In honor of National Police Week, U.S. Attorney Richard P. Donoghue salutes the service and sacrifice of federal, state and local law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.

“There is no more noble profession than serving as a police officer,” stated Attorney General William P. Barr.  “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety.  And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic.  This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local and tribal law enforcement officers.  Their devotion and sacrifice to our peace and security will not be taken for granted.”

“During National Police Week, I join the staff of the United States Attorney’s Office for the Eastern District of New York in extending our thanks and deepest appreciation to the members of law enforcement who perform extraordinary and selfless service by protecting our communities from every threat imaginable, including an invisible virus,” stated United States Attorney Donoghue.  “We will never forget those brave men and women who made the ultimate sacrifice, and we remember, too, their families who have suffered the profound loss of a parent, child or sibling who chose a vocation to serve their fellow New Yorkers.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.  This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.

• Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including New York City Police Department Detective Brian Simonsen in the Eastern District of New York.  At least 41 members of the New York City Police Department, one member of the Sands Point Police Department and one volunteer with the Suffolk County Auxiliary Police have died from the Coronavirus.
   

Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.

The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil.  Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 pm (EDT).  The candlelight vigil can be viewed here: https://www.youtube.com/user/TheNLEOMF.

To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

Melvin Martinez was arraigned earlier today at the federal courthouse in Brooklyn on an international cocaine distribution conspiracy charge.  Martinez was arrested in the Dominican Republic in January 2020 and extradited to the United States yesterday.  He was arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon and remanded pending trial.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the extradition.

“As alleged, the defendant operated the levers of a cocaine pipeline from abroad, but not beyond the reach of U.S. law enforcement committed to bringing international drug traffickers to justice for the harm they have caused in our communities,” stated United States Attorney Donoghue.  Mr. Donoghue thanked the Office of International Affairs of the Justice Department’s Criminal Division for its assistance with the extradition of the defendant.

“When Martinez was arrested in the Dominican Republic in January 2020, HSI and its law enforcement partners dealt a blow to his cocaine trafficking enterprise.  His extradition is a major step forward after the detrimental impact Martinez’ organization had on the people of the United States and the greater New York City region,” stated HSI Special Agent-in-Charge Fitzhugh.  “Through this multi-year, complex investigation, HSI New York and our partners at the United States Attorney’s Office, Eastern District of New York, have proceeded in bringing the full force of the American Justice system to combat Martinez and his organization.”

According to court filings, between January 2015 and April 2015, Martinez and members of an international cocaine trafficking conspiracy organized shipments of cocaine in Venezuela, Mexico, Jamaica and the Dominican Republic for importation into the United States for distribution.  In one instance, Martinez coordinated a 188 kilogram shipment of cocaine on a commercial airline flight from Venezuela to the Dominican Republic that was intended to be unlawfully distributed in the United States.  In February 2015, law enforcement authorities in the Dominican Republic seized the cocaine at the airport in Santo Domingo.

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

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

The Defendant:

MELVIN MARTINEZ (also known as “La Fuerza” and “Yo Mismo”)
Age:  38
Santo Domingo, Dominican Republic

E.D.N.Y. Docket No. 16-CR-48 (AMD)

BROOKLYN, NY – Bank Hapoalim B.M. (“BHBM”), an Israeli bank with international operations, and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (“BHS”), have agreed to forfeit $20,733,322 and pay a fine of $9,329,995 to resolve an investigation into their involvement in a money laundering conspiracy that fueled an international soccer bribery scheme.  Specifically, BHBM and BHS have admitted that they, through certain of their employees, conspired to launder over $20 million in bribes and kickbacks to soccer officials with Fédération Internationale de Football Association (“FIFA”) and other soccer federations. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), made the announcement. 

“Today’s resolution marks another successful chapter in this District’s effort to hold accountable those corporations and individuals who participated in a bribery scheme that corrupted international soccer,” stated United States Attorney Donoghue.  “This Office, along with our law enforcement partners, will continue to identify wrongdoers who manipulate international soccer in order to reap illicit profits and bring them to justice.” 

“For nearly five years, Bank Hapoalim employees used the U.S. financial system to launder tens of millions of dollars in bribe payments to corrupt soccer officials in multiple countries,” stated AAG Benczkowski.  “Today’s announcement demonstrates the Department’s commitment to holding financial institutions to account when they knowingly facilitate corruption and other criminal conduct.”

“This announcement illustrates another aspect in the spider web of bribery, corruption and backroom deals going on behind the scenes as soccer games were played on the field. Bank Hapoalim admits executives looked the other way, and allowed illicit activity to continue even when employees discovered the scheme and reported it. The New York FBI Eurasian Organized Crime Task Force and our law enforcement partners have doggedly pursued every strand uncovered in this criminal investigation, and will keep at it until they root out all of the bad actors,” stated FBI Assistant Director-in-Charge Sweeney.

“This forfeiture sends a clear message that no matter how complex or far reaching the conspiracy, justice will prevail.  Bank Hapoalim B.M. and its subsidiary, Hapoalim Ltd., participated in a conspiracy that corrupted international soccer, its confederations, and member associations,” stated IRS-CI Special Agent-in-Charge Korner.  “IRS-CI is proud to work alongside our international law enforcement partners, the FBI, and the United States Attorney’s Office to bring closure to this egregious international scandal that corrupted the sport of soccer.”

According to admissions in the statement of facts stipulated to by BHBM and BHS as part of the agreement, from approximately December 10, 2010 to February 20, 2015, BHBM and BHS personnel conspired with sports marketing executives, including executives associated with Full Play Group S.A. (“Full Play”), a sports media and marketing business based in Argentina, and others, to launder at least $20,733,322 in bribes and kickbacks to soccer officials.  In exchange for those bribes and kickbacks, the soccer officials awarded or steered broadcasting rights for soccer matches and tournaments to the sports marketing executives and their companies.  Full Play allegedly executed the illegal payments from accounts held at BHS and BHBM’s branch in Miami, Florida, which were held in the names of Full Play subsidiaries and affiliates.

BHBM and BHS admitted they, through BHS and BHBM’s Miami branch, conspired to launder money for Luis Bedoya, who at various times served as the president of the Federación Colombiana de Futbol, a vice president of the Confederación Sudamericana de Fútbol (CONMEBOL), and a member of FIFA’s executive committee.  BHBM and BHS allowed accounts controlled by Bedoya to be used to receive illicit bribe and kickback payments.  In November 2015, Bedoya pleaded guilty to racketeering conspiracy and wire fraud conspiracy in the Eastern District of New York.  He is awaiting sentencing.

Despite BHS compliance personnel repeatedly raising concerns about certain payments made to soccer officials from the accounts associated with Full Play, BHBM and BHS failed to take action.  Instead, the banks’ relationship managers continued executing illicit bribe and kickback payments on behalf of Full Play. 

As outlined in the agreement, the government’s decision to enter into a three-year, non-prosecution agreement with BHBM and BHS was premised upon the banks’ thorough and complete cooperation, BHBM’s pledge to review and improve its anti-money laundering program, and the banks’ other substantial remedial efforts, which include closing Bank Hapoalim (Latin America) S.A. and BHBM’s branch in Miami.  BHS is also in the process of closing its operations.

The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the Bank Integrity Unit in the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division in Washington, D.C., the FBI New York Field Office, and the IRS-CI Los Angeles Field Office.  Assistant U.S. Attorneys Sam Nitze, Lauren Howard Elbert and Brian Morris of the U.S. Attorney’s Office and Trial Attorney Michael P. Grady of the Bank Integrity Unit are responsible for the matter on behalf of the U.S. Department of Justice.  The government of Switzerland provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs. 

The Defendants:

BANK HAPOALIM B.M.

BANK HAPOALIM (SWITZERLAND) LTD.

Bank Hapoalim B.M. (BHBM), an Israeli bank with international operations, and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (BHS), have agreed to forfeit $20,733,322 and pay a fine of $9,329,995 to resolve an investigation into their involvement in a money laundering conspiracy that fueled an international soccer bribery scheme. 

Specifically, BHBM and BHS have admitted that they, through certain of their employees, conspired to launder over $20 million in bribes and kickbacks to soccer officials with Fédération Internationale de Football Association (FIFA) and other soccer federations. 

“For nearly five years, Bank Hapoalim employees used the U.S. financial system to launder tens of millions of dollars in bribe payments to corrupt soccer officials in multiple countries,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “Today’s announcement demonstrates the department’s commitment to holding financial institutions to account when they knowingly facilitate corruption and other criminal conduct.”

“Today’s resolution marks another successful chapter in this district’s effort to hold accountable those corporations and individuals who participated in a bribery scheme that corrupted international soccer,” stated U.S. Attorney Richard P. Donoghue of the Eastern District of New York.  “This office, along with our law enforcement partners, will continue to identify wrongdoers who manipulate international soccer in order to reap illicit profits and bring them to justice.” 

“This announcement illustrates another aspect in the spider web of bribery, corruption and backroom deals going on behind the scenes as soccer games were played on the field,” said Assistant Director in Charge William F. Sweeney of the FBI’s New York Field Office.  “Bank Hapoalim admits executives looked the other way, and allowed illicit activity to continue even when employees discovered the scheme and reported it.  The New York FBI Eurasian Organized Crime Task Force and our law enforcement partners have doggedly pursued every strand uncovered in this criminal investigation, and will keep at it until they root out all of the bad actors.”

“This forfeiture sends a clear message that no matter how complex or far reaching the conspiracy, justice will prevail.  Bank Hapoalim B.M. and its subsidiary, Hapoalim Ltd., participated in a conspiracy that corrupted international soccer, its confederations, and member associations,” said Special Agent in Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office.  “IRS-CI is proud to work alongside our international law enforcement partners, the FBI, and the United States Attorney’s Office to bring closure to this egregious international scandal that corrupted the sport of soccer.”

According to admissions in the statement of facts stipulated to by BHBM and BHS as part of the agreement, from approximately Dec. 10, 2010, to Feb. 20, 2015, BHBM and BHS personnel conspired with sports marketing executives, including executives associated with Full Play Group S.A. (Full Play), a sports media and marketing business based in Argentina, and others, to launder at least $20,733,322 in bribes and kickbacks to soccer officials.  In exchange for those bribes and kickbacks, the soccer officials awarded or steered broadcasting rights for soccer matches and tournaments to the sports marketing executives and their companies.  Full Play allegedly executed the illegal payments from accounts at BHS and BHBM’s branch in Miami, Florida, which were held in the names of Full Play subsidiaries and affiliates.  On March 18, 2020, Full Play was charged along with others in a superseding indictment in the Eastern District of New York with racketeering conspiracy, wire fraud, wire fraud conspiracy, and money laundering conspiracy.

BHBM and BHS also admitted they conspired to launder money for Luis Bedoya, who at various times served as the president of the Federación Colombiana de Futbol, a vice president of the Confederación Sudamericana de Fútbol (CONMEBOL), and a member of FIFA’s executive committee.  BHBM’s Miami branch and BHS allowed accounts controlled by Bedoya to be used to receive illicit bribe and kickback payments.  Bedoya pleaded guilty to racketeering conspiracy and wire fraud conspiracy on Nov. 12, 2015, in the Eastern District of New York. 

Notwithstanding the repeated concerns raised by BHS compliance personnel about certain payments made to soccer officials from the accounts associated with Full Play, BHS failed to take action.  Instead, the banks’ relationship managers continued executing illicit bribe and kickback payments on behalf of Full Play. 

Under the agreement, BHBM and BHS will jointly pay a criminal penalty of $9,329,995.  The banks will additionally forfeit funds totaling $20,733,322.

As outlined in the agreement, the government’s decision to enter into a non-prosecution agreement with BHBM and BHS was premised upon the banks’ thorough and complete cooperation and the banks’ other substantial remedial efforts, which have included closing Bank Hapoalim (Latin America) S.A. and BHBM’s branch in Miami.  BHS is also in the process of closing its operations. 

The agreement announced today is part of an investigation led by the FBI’s New York Field Office and the IRS-CI’s Los Angeles Field Office.  Trial Attorney Michael P. Grady of the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Lauren Howard, Brian D. Morris, and Samuel P. Nitze of the U.S. Attorney’s Office for the Eastern District of New York prosecuted the case.  Former MLARS attorneys Kendrack D. Lewis of the Justice Department’s Civil Division and Maria K. Vento of the U.S. Attorney’s Office for the Western District of North Carolina, the Criminal Division’s Office of International Affairs, and the government of Switzerland provided significant assistance in this matter.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Earlier today, in federal court in Central Islip, Yong Min Choe pleaded guilty before United States District Judge Joanna Seybert to conspiracy to conceal and harbor illegal aliens by employing undocumented immigrants at his 7-Eleven franchise in Brentwood, New York.  When sentenced, Choe faces up to 10 years’ imprisonment as well as a fine of up to twice the value of the gross gain.  Additionally, Choe agreed to forfeit more than $1.3 million in assets that represent proceeds of the offense.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and John Grasso, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG) announced the guilty plea.

In March 2004, Choe began operating the 7-Eleven store and, as part of the franchise agreement, agreed to abide by state and local labor laws.  Between 2004 and November 2019, Choe hired individuals who did not have authorization to work in the United States and allowed those employees to use false social security numbers and other personal identifying information.  As a result, Choe was able to pay his employees sub-standard wages and enrich himself.

“The defendant conveniently used his convenience store to harbor and exploit alien employees and steal wages,” stated United States Attorney Donoghue.  “This Office, together with our law enforcement partners, is committed to vigorously enforcing immigration and labor laws that protect our borders as well as the workplace.”

 “Over the course of 15 years, Choe knowingly hired individuals who had no legal authorization to work in the U.S., then took advantage of their illegal status by paying them inadequate wages with long hours,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI and its law enforcement partners are committed to protecting our communities from the abuses of corrupt business owners seeking to gain an illegal advantage and make a steep profit off the backs of others.”

“Today’s guilty plea illustrates our commitment to pursuing those who intentionally misuse Social Security numbers to circumvent immigration and employment law,” stated SSA-OIG Special Agent-in-Charge Grasso.  “I want to thank the other participating agencies for their efforts in investigating and prosecuting this case, and their partnership in our work to protect the integrity of the Social Security system.”

The government’s case is being handled by the Office’s Public Integrity Section.  Special Assistant United States Attorney Virginia Nguyen is in charge of the prosecution together with Assistant United States Attorney Elliot M. Schachner of the Office’s Asset Forfeiture Unit.

The Defendant:

YONG MIN CHOE (also known as “Jason Choe”)
Age:  55
Northport, New York

E.D.N.Y. Docket No. 20-CR-153 (JS)

A criminal complaint was filed today in federal court in Brooklyn charging Feng Chen with theft of mail, including credit cards, multiple checks and nine Economic Impact Payments (“EIP”) from the United States Treasury Department, otherwise known as “stimulus payments.”  Chen was arrested yesterday and will make his initial appearance via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), J. Russell George, Treasury Office of Inspector General for Tax Administration (TIGTA), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest.

"For many families, these stimulus checks are a lifeline in these difficult times and anyone who tries to cut that lifeline will face the full weight of the law,” stated United States Attorney Donoghue.  “This Office will vigorously prosecute all those who seek to take advantage of the public health crisis.  I commend the NYPD police officers for their truly outstanding work and service under difficult conditions.”

Mr. Donoghue urged the public to report suspected fraud related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov.  For information on how to identify or report fraud involving Economic Impact Payments, visit tips.tigta.gov.

“The COVID-19 crisis has placed tremendous stress on underserved communities across this country. The Economic Impact Payments are, in many cases, the lifeline needed by these individuals to stay afloat during this crisis. When Mr. Chen stole these checks, he robbed recipients of these much needed funds.  Postal Inspectors and their law enforcement partners have no tolerance for the theft of mail, especially during these unprecedented times”, stated USPIS Inspector-in-Charge Bartlett.

“The Treasury Inspector General for Tax Administration (TIGTA) is the agency responsible for protecting the integrity of the Internal Revenue Service, including the theft of Economic Impact Payments.  We are committed to working with our law enforcement partners to investigate any individual that engages in criminal activity to victimize taxpayers and exploit this national crisis for their own benefit,” stated TIGTA George.

“The NYPD recognizes how the COVID-19 pandemic presents an opportunity for a variety of malicious, criminal scams. In this case, I applaud our alert detectives and federal partners for interrupting an alleged scheme to victimize New Yorkers by stealing important mail and stimulus money meant to aid them during this unprecedented crises,” stated NYPD Commissioner Shea.

According to the complaint and statements made in court, in the early morning hours of April 28, 2020 in Sunset Park, New York, NYPD police officers observed Chen look inside the medical collection bin at a closed medical office and then walk to a nearby residential building and examine mail left at the door.  Chen then walked into the gated area of a second residential building and left carrying what appeared to be mail.  Chen saw the police officers and tossed mail on the sidewalk.  The officers exited their vehicle and observed a bulge in Chen’s jacket pocket.  The officers searched Chen and recovered checks, EIPs totaling more than $12,000, credit cards, opened envelopes and letters bearing the names of various individuals and mail addresses.

The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Chen faces a maximum of five years’ imprisonment.

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

The Defendant:

FENG CHEN
Age:  31
Brooklyn, New York

E.D.N.Y. Docket No. 20-MJ-337

A criminal complaint was unsealed today in federal court in Brooklyn charging Kent Bulloch and William Young, Sr., with conspiracy to violate the Defense Production Act by seeking to resell one million KN95 protective masks in New York City at a 50 percent mark-up.  Bulloch, an attorney, was arrested Monday night in California and will make his initial appearance via teleconference in federal court in San Francisco and Young will appear via teleconference in federal court in Phoenix. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the charges. 

On March 18, 2020, in response to the COVID-19 pandemic, President Donald Trump issued Executive Order 13909 invoking the Defense Production Act making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services (HHS) as scarce in order to hoard them or sell them for excessive prices.

According to court filings, between March 2020 and April 2020, Bulloch and Young sought out potential investors to sell one million KN95 respirator masks for double or triple the purchase price.  To conceal their exorbitant markup on the masks, Bulloch created and signed an escrow agreement for a purported investor that falsely stated that the profits on the re-sale of the masks would not exceed 10 percent.  Unbeknownst to the defendants, the purported investor was a federal law enforcement agent.     

 “As alleged, the defendants conspired to turn a huge profit from the urgent need for surgical masks in New York during the pandemic,” stated United States Attorney Donoghue.  “When the Attorney General said that those engaged in price gouging should expect a knock on the door, he meant it and when we knock with one hand, we usually have a warrant in the other.”  Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices in New Jersey, the Northern District of California and the District of Arizona, and the San Francisco and Phoenix Field Offices of the FBI and IRS-CI for their invaluable assistance in this case. 

“This is precisely the type of price gouging for which Attorney General Barr created our nationwide task force,” stated Carpenito.  “The Department of Justice will not allow greedy profiteers to take advantage of the public during this health crisis.”

“While the need for an influx of medical equipment and supplies continued to mount as a result of the COVID-19 crisis, Young and Bulloch allegedly claimed they could acquire approximately one million highly sought after KN95 masks.  As detailed in the complaint, the next phase of their plan was pretty straightforward--find investors who would sell these masks for far more than their purchase price, in turn earning the defendants a 50 percent mark-up on the sale. It's hard to believe anyone could take advantage of a situation like this, but this case clearly proves that theory wrong. The FBI is proud to work with all of our partners as we confront the threats posed by those who are looking to game the system in this current environment,” stated FBI Assistant Director-in-Charge Sweeney.

“The invocation of the Defense Production Act was implemented to protect our healthcare workers, the heroes of 2020,” stated IRS-CI Special Agent-in-Charge Larsen.  “As alleged, Bulloch and Kent attempted to personally enrich themselves by preying on potential investors during this pandemic.”   

The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face up to one year in prison.

Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.  The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices. 

Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: disaster@leo.gov.

The government’s case is being handled by the Office’s Public Integrity and Business & Securities Fraud Sections.  Assistant United States Attorneys Nathan Reilly and Hiral Mehta are in charge of the prosecution.

The Defendants:

KENT BULLOCH
Age:  56
Santa Rosa, California

WILLIAM YOUNG, SR. (also known as “Bill”)
Age:  64
Phoenix, Arizona

E.D.N.Y. Docket No. 20-MJ-327

A criminal complaint was unsealed today in federal court in Brooklyn charging Donald Allen and Manuel Revolorio with conspiracy to commit wire fraud by seeking more than $4 million from a purported purchaser of personal protective equipment (“PPE”) that the defendants did not own nor otherwise have authorization to sell.  The defendants were arrested today in California, and their initial appearance is scheduled for this afternoon before United States Magistrate Judge Pedro V. Castillo in federal court in Los Angeles. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the charges. 

According to court filings, as part of their fraudulent scheme, Allen and Revolorio misrepresented the nature of their business experience, their inventory of PPE and their right to resell PPE to purported purchasers of PPE.  For example, the defendants created a website for their company, International Commerce and Investment Group (ICIG), falsely representing that since 2014 ICIG had worked closely with global traders, medical institutions and other companies to supply PPE.  The defendants also falsely claimed that ICIG had contracts and agreements in place to resell millions of masks, and attempted to pressure a potential purchaser to wire more than $4 million to secure those masks.  To reinforce their claim to have large supplies of PPE available for sale, the defendants displayed sealed and shrink-wrapped empty boxes at their office, which they represented were filled with masks.  The defendants also displayed to an individual, posing as a representative of an investor, more than one million masks that were owned by an unrelated third party – unbeknownst to the defendants, the “representative” was actually a federal law enforcement agent.     

“As alleged in the complaint, the defendants sought to take advantage of the urgent national need for life-saving personal protective equipment through a fraudulent scheme designed to line their own pockets,” stated United States Attorney Donoghue.  “This Office, together with the Department’s COVID-19 Hoarding and Price Gouging Task Force, is working tirelessly to ensure that scam artists who seek to capitalize on the worldwide pandemic will be brought to justice.”  Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices in New Jersey and the Central District of California, and the Los Angeles Field Offices of the FBI and IRS-CI for their invaluable assistance in this case. 

“The defendants in this case allegedly created an elaborate scam to defraud their victim, going as far as to wrap and label empty boxes and try to pass them off as containing actual personal protective equipment,” stated COVID-19 Hoarding and Price Gouging Task Force head Carpenito. “The public should be on guard against these types of schemes, and the perpetrators of them should know that the Department of Justice and its partners are working all the time to disrupt their attempts to prey on the public.”

"The alleged behavior here is nothing short of a betrayal of fellow citizens – both those serving on the front lines, and the communities who need those essential workers able to safely serve,” stated FBI Assistant Director-in-Charge Sweeney.  “At this critical time, Allen and Revolorio allegedly deceived potential investors and purchasers into thinking they were running a legitimate business with resell rights to more than three million of these highly sought-after items.  The FBI will continuously work to identify and hold accountable any company, individual, or entity whose intention it is to unlawfully take advantage of the current pandemic.”

“At a time when we should be coming together to help one another and support our healthcare professionals who are working heroically to save lives, Donald Allen and Manuel Revolorio allegedly decided to take advantage of the Covid-19 pandemic for their own personal benefit,” stated IRS-CI Special Agent-in-Charge Larsen.  “IRS-CI is committed to not only protecting the tax system, but also protecting all taxpayers from unscrupulous individuals who attempt to take advantage of them.”

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

Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.  The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices. 

Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: disaster@leo.gov.

The government’s case is being handled by the Office’s Public Integrity and Business & Securities Fraud Sections.  Assistant United States Attorneys Nathan Reilly and Hiral Mehta are in charge of the prosecution.

The Defendants:

DONALD LEE ALLEN
Age:  62
Riverside, California

MANUEL REVOLORIO
Age:  37
Rancho Cucamonga, California

E.D.N.Y. Docket No. 20-MJ-318

A criminal complaint was filed today in federal court in Central Islip charging Amardeep Singh with violating the Defense Production Act of 1950 by hoarding personal protective equipment (“PPE”) at a warehouse in Brentwood, New York, amid the COVID-19 pandemic, and price-gouging customers of his retail store in Plainview, New York.  If convicted, Singh faces up to one year in prison.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the filing of the complaint

“As charged in the complaint, Singh’s amassing of critical personal protective equipment during a public health crisis and reselling at huge markups places him squarely in the cross-hairs of law enforcement armed with the Defense Production Act,” stated United States Attorney Donoghue.  “This Office is working tirelessly in coordination with the COVID-19 Hoarding and Price Gouging Task Force to prevent a pandemic of greed by profiteers.”

“The criminal complaint describes a defendant who allegedly saw the devastating COVID-19 pandemic as an opportunity to make illegal profits on needed personal protective equipment,” stated Carpenito. “The Department of Justice and its partners will intervene whenever profiteers and scammers break the law by capitalizing on the public’s fear to enrich themselves.”

“The Coronavirus has created challenging times for all Americans, especially those living in the New York metropolitan area,” stated USPIS Inspector-in-Charge Bartlett.  “During a crisis of this magnitude, we must come together as a country to fight this common enemy.  Unfortunately, Mr. Singh allegedly chose to use this opportunity to make money by hoarding and price gouging PPE.  The conduct charged in the complaint is reprehensible and against our most fundamental American values.”

On March 18, 2020, in response to the COVID-19 pandemic, President Donald Trump issued Executive Order 13909 invoking the Defense Production Act making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services (HHS) as scarce in order to hoard them or sell them for excessive prices.

According to the complaint, beginning in mid-March 2020, Singh — who operates a retail store selling sneakers and apparel — began accumulating that merchandise at his store and a nearby warehouse.  At the same time, he set aside a section of his store for so-called “COVID-19 Essentials,” which he then sold to the public at inflated prices, including but not limited to N-95 filtering face piece respirators, PPE face masks, PPE surgical masks, PPE face shields, PPE gloves, PPE coveralls, medical gowns and clinical-grade sanitizing and disinfecting products. 

Between March 25, 2020 and April 8, 2020, Singh allegedly received deliveries at his retail store and warehouse of 40 shipments of disposable face masks weighing more than 1.6 tons, 14 shipments of disposable surgical gowns weighing more than 2.2 tons, six shipments of hand sanitizer weighing more than 1.8 tons and seven shipments of digital thermometers weighing approximately 253 pounds.  These and other items — some of which had been officially designated as scarce — were advertised and sold at Singh’s retail store at prices far in excess of prevailing market prices.  For example, records obtained during a judicially-authorized search of the store indicate that three-ply disposable face masks that Singh purchased for a per-unit price of $0.07 were resold by Singh for a per-unit price of $1.00 — a markup of approximately 1,328 percent.  The seized records also reveal that Singh completed bulk sales at inflated prices to organizations serving vulnerable senior citizens and children battling the virus.     

On April 14, 2020, Postal Inspectors executed a search warrant at Singh’s retail store and a consensual search of the warehouse and seized 23 pallets containing more than 100,000 face masks, 10,000 surgical gowns, nearly 2,500 full-body isolation suits and more than 500,000 pairs of disposable gloves.   

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

Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.  The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices. 

Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: disaster@leo.gov.

The government’s case is being handled by the Office’s Long Island Criminal Division, with assistance from the Department of Justice’s Hoarding and Price-Gouging Task Force.  Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.

The Defendant:

AMARDEEP SINGH (also known as “Bobby Singh” and “Bobby Sidana”)
Age: 45
Woodbury, New York

E.D.N.Y. Docket No.: 20-MJ-326

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency, Region 2 (EPA), announced today that the United States has filed a civil lawsuit against Precision Consulting Inc., in New Hyde Park, New York and its principal, Wayne Gladney, of Queens Village, New York, for violating the Toxic Substances Control Act.  The suit seeks preliminary and permanent injunctive relief preventing the defendants from performing lead-based paint abatements and renovations in the New York City area in violation of federal law. 

Congress enacted the Toxic Substances Control Act (“TSCA”) in 1976 in response to a finding that people and the environment are exposed each year to a large number of potentially harmful chemical substances, including lead.  Lead is commonly found in paints used in residences built prior to 1977.  Its ingestion, even in small quantities, can cause serious health problems, including hypertension, kidney failure and infertility.  Children six years and younger are the most vulnerable to the harmful effects of lead.  Lead poisoning in that age group can lead to intelligence quotient deficiencies, reading and learning disabilities, impaired hearing, reduced attention span, hyperactivity and behavior problems.  In adults, lead exposure can cause a decrease in renal function, spontaneous abortions and preterm birth.  Lead dust may also be a trigger for asthma.

Property owners and managing agents typically hired the defendants to perform lead-based paint abatements or renovations following notification from the New York Department of Health and Mental Hygiene (“Department of Health”) when a child residing at the property had an elevated blood lead level. 

As alleged in the complaint, since 2012, Precision and Gladney have repeatedly performed lead-based paint abatements and renovations in the New York City metropolitan area in violation of TSCA and its implementing regulations. 

The complaint further alleges that the defendants have performed more than two dozen unlawful abatements at residences in New York City since 2012.  Between March 2017 and March 2020, defendants repeatedly violated TSCA and its implementing regulations, the Abatement Rule and Renovation, Repair and Painting Rule, by failing to assign a certified supervisor to oversee the abatements; failing to follow post-abatement clearance procedures; failing to ensure that a certified abatement worker perform the abatements; and failing to obtain EPA certification prior to performing at least one renovation. Defendants continue to perform abatements and host websites promoting their abatement business in which they represent that they have expertise in compliance with laws and regulations related to abatement.

In performing unlawful abatements and renovations, defendants have placed the public, and particularly children, at risk of lead exposure. 

“The United States filed this action to protect children and their families from defendants’ improper and unsafe lead-based paint abatements and renovations,” stated United States Attorney Donoghue.  “This Office seeks an injunction to end these practices, demonstrating its commitment to protecting the public’s health from those who act outside the law.”

“Holding businesses and individuals accountable for flouting lead paint laws can serve as an effective deterrent to those who may otherwise seek to cut corners,” stated EPA Regional Administrator Lopez. “By not complying with EPA rules designed to ensure that lead paint activities are conducted by properly trained workers, the defendants put the public, including young children with documented elevated blood lead levels, at risk in their own homes.”

The case is being handled by Assistant U.S. Attorney Shana Priore of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Assistant Regional Counsel Stuart Keith of EPA’s Regional Office, and Demian Ellis, Acting Chief of Toxics Compliance Section in the Pesticides and Toxic Substances Compliance Branch of EPA's Enforcement and Compliance Assurance Division.

The Defendants:

PRECISION CONSULTING INC.
New Hyde Park, New York

WAYNE GLADNEY
Queens Village, New York

E.D.N.Y. Docket No:  20-CV-1794

ALBANY, NEW YORK – Retail drugstore chain Rite Aid, which operates more than 2,000 pharmacies in 18 states, will pay the United States a $4.75 million penalty to resolve allegations that its employees, in violation of the Controlled Substances Act, recorded false or incomplete information about customers who purchased tens of thousands of products containing pseudoephedrine.  Pseudoephedrine, an ingredient found in many cough and cold medicines, is used by some to illegally manufacture the drug methamphetamine.

Grant C. Jaquith, United States Attorney for the Northern District of New York, Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, U.S. Drug Enforcement Administration (DEA), New York Division, and Todd Scott, Special Agent-in-Charge, DEA, Louisville Division, made the announcement.

In order to prevent the illicit use of pseudoephedrine, the Controlled Substances Act requires Rite Aid and other retail sellers to create and maintain a logbook that contains, among other things, the name and address of each customer who makes a purchase of a pseudoephedrine product.  In the settlement agreement, Rite Aid admitted that, between August 2009 and January 2014, certain Rite Aid employees entered into Rite Aid’s logbook inaccurate or incomplete name and address information for customers. The United States alleged that this misconduct occurred in connection with tens of thousands of sales during that time period.  Shortly after the United States brought these violations to Rite Aid’s attention, the company voluntarily devised and implemented a number of enhancements to its process for sales of pseudoephedrine products to better ensure Rite Aid’s compliance with federal law.

“Rite Aid had a moral and a legal obligation to keep track of its pseudoephedrine sales to help ensure that the regulated drug was purchased for legitimate reasons, and not for the illegal manufacture of methamphetamine,” stated United States Attorney Jaquith.  “We are committed to enforcing that obligation with aggressive action and appropriate penalties that also reflect acceptance of responsibility, implementation of compliance measures, and ability to pay.”

“Pseudoephedrine products are regulated under federal law because they have been used in the production of a highly addictive and highly dangerous drug, methamphetamine,” stated United States Attorney Donoghue.  “The settlement with Rite Aid sends a clear message to all those engaged in the manufacture, distribution and sale of those products: you must comply with federal laws enacted to prevent the illegal use of your products.”

“Companies that do not comply with the Controlled Substances Act are violating the law,” stated DEA Special Agent-in-Charge Donovan.  “Regulatory laws are put in place for a reason – to ensure public health and safety.  Companies that turn a blind eye to regulations concerning the purchase of products containing pseudoephedrine enable illicit methamphetamine production.  Rite Aid’s disregard to compliance made it personal to us – whose job it is to save lives.”

“What Rite Aid learned today is that no one is above the law, not even large companies,” stated DEA Special Agent-in-Charge Scott. “It is vitally important that pharmacies meet their record-keeping obligations to account for the safe flow of medications, to include pseudoephedrine, which carries the potential for methamphetamine abuse.”

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the U.S. Attorney’s Office for the Eastern District of New York, and DEA.  The United States was represented by Assistant U.S. Attorneys Adam J. Katz of the Northern District of New York and Elliot M. Schachner of the Eastern District of New York.

Retail drugstore chain Rite Aid, which operates more than 2,000 pharmacies in 18 states, will pay the United States a $4.75 million penalty to resolve allegations that its employees, in violation of the Controlled Substances Act, recorded false or incomplete information about customers who purchased tens of thousands of products containing pseudoephedrine.  Pseudoephedrine, an ingredient found in many cough and cold medicines, is used by some to illegally manufacture the drug methamphetamine.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Grant C. Jaquith, United States Attorney for the Northern District of New York, Ray Donovan, Special Agent-in-Charge, U.S. Drug Enforcement Administration, New York Division (DEA), and Todd Scott, Special Agent-in-Charge, DEA, Louisville Division, made the announcement.

In order to prevent the illicit use of pseudoephedrine, the Controlled Substances Act requires Rite Aid and other retail sellers to create and maintain a logbook that contains, among other things, the name and address of each the customer who makes a purchase of a pseudoephedrine product.  In the settlement agreement, Rite Aid admitted that, between August 2009 and January 2014, certain Rite Aid employees entered into Rite Aid’s logbook inaccurate or incomplete name and address information for customers.  The United States alleged that this misconduct occurred in connection with tens of thousands of sales during that time period.  Shortly after the United States brought these violations to Rite Aid’s attention, the company voluntarily devised and implemented a number of enhancements to its process for sales of pseudoephedrine products to better ensure Rite Aid’s compliance with federal law.

“Pseudoephedrine products are regulated under federal law because they have been used in the production of a highly addictive and highly dangerous drug, methamphetamine,” stated United States Attorney Donoghue.  “The settlement with Rite Aid sends a clear message to all those engaged in the manufacture, distribution and sale of those products: you must comply with federal laws enacted to prevent the illegal use of your products.”

“Rite Aid had a moral and a legal obligation to keep track of its pseudoephedrine sales to help ensure that the regulated drug was purchased for legitimate reasons, and not for the illegal manufacture of methamphetamine,” said United States Attorney Jaquith.  “We are committed to enforcing that obligation with aggressive action and appropriate penalties that also reflect acceptance of responsibility, implementation of compliance measures, and ability to pay.”

“Companies that do not comply with the Controlled Substances Act are violating the law,” stated DEA Special Agent-in-Charge Donovan.  “Regulatory laws are put in place for a reason – to ensure public health and safety.  Companies that turn a blind eye to regulations concerning the purchase of products containing pseudoephedrine enable illicit methamphetamine production.  Rite Aid’s disregard to compliance made it personal to us – whose job it is to save lives.”

“What Rite Aid learned today is that no one is above the law, not even large companies,” stated DEA Special Agent-in-Charge Scott.  “It is vitally important that pharmacies meet their record-keeping obligations to account for the safe flow of medications, to include pseudoephedrine, which carries the potential for methamphetamine abuse.”

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Northern District of New York, and DEA.  The United States was represented by Assistant U.S. Attorneys Elliot M. Schachner of the Eastern District of New York and Adam J. Katz of the Northern District of New York.

A 53-count third-superseding indictment (the “Indictment”) was unsealed today in federal court in Brooklyn charging sports marketing executives Hernan Lopez and Carlos Martinez, formerly of 21st Century Fox, Inc. (“Fox”); Gerard Romy, former co-CEO of Spanish media company Imagina Media Audiovisual SL (“Imagina”); and Uruguayan sports marketing company Full Play Group S.A. (“Full Play”) (collectively, the “New Defendants”) with wire fraud, money laundering and related offenses – including, as to Romy and Full Play, racketeering conspiracy – in connection with the government’s long-running investigation and prosecution of corruption in organized soccer.  The Indictment, returned under seal by a federal grand jury on March 18, 2020, includes additional charges against certain defendants located overseas who were previously indicted and have yet to be extradited to the United States.

Defendants Lopez, Martinez and Full Play are scheduled to be arraigned on April 9, 2020, before United States District Judge Pamela K. Chen in Brooklyn.  

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the charges.

“The charges unsealed today reflect this Office’s ongoing commitment to rooting out corruption at the highest levels of international soccer and at the businesses engaged in promoting and broadcasting the sport,” stated United States Attorney Donoghue.  “Companies and individuals alike should understand that, regardless of their wealth or power, they will be brought to justice if they use the U.S. financial system to further corrupt ends.”  Mr. Donoghue extended his thanks to the agents and other investigative personnel at the FBI New York Eurasian Joint Organized Crime Squad, the FBI’s Integrity in Sport and Gaming Initiative and the IRS-CI Los Angeles Field Office, as well as their colleagues in the United States and abroad, for their continuing effort in this case. 

“The profiteering and bribery in international soccer have been deep-seated and commonly known practices for decades.  These men, along with the general public, have known the FBI New York and our many law enforcement partners are investigating the illicit handshakes and backroom deals hidden in the infrastructure of soccer events, venues and marketing contracts.  The first public charges date back to 2015. This should illustrate to everyone still hoping to score millions corruptly, we're going to find you,” stated FBI Assistant Director-in-Charge Sweeney.

“As charged in the Indictment, over a period of many years, the defendants and their co-conspirators corrupted the governance and business of international soccer with bribes and kickbacks, and engaged in criminal fraudulent schemes that caused significant harm to the sport of soccer.  Their schemes included the use of shell companies, sham consulting contracts and other concealment methods to disguise the bribes and kickback payments and make them appear legitimate.  IRS-CI is proud to have worked alongside our partners at the FBI to unravel this trail of deception,” stated IRS-CI Special Agent-in-Charge Korner. 

As alleged in the Indictment, FIFA and its six continental confederations – including the Confederation of North, Central American and Caribbean Association Football (“CONCACAF”), headquartered in the United States, and the Confederación Sudamericana de Fútbol (“CONMEBOL”), the confederation governing soccer in South America – together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws.  The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.  Consistent with previous indictments returned in the case, the Indictment alleges that over a period of more than two decades, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. 

As set forth in the Indictment, the New Defendants used their positions in the world of international soccer to engage in schemes involving the solicitation, offer, acceptance, payment and receipt of bribes and kickbacks, principally to obtain lucrative broadcast rights to various international soccer tournaments and events.   For example, as alleged:

• Lopez and Martinez, formerly high-ranking executives of Fox subsidiaries responsible for developing and carrying out Fox’s sports broadcasting businesses in Latin America, joined Full Play and other co-conspirators in a scheme involving the annual payment of millions of dollars in bribes to officials of CONMEBOL in exchange for the lucrative broadcasting rights to the Copa Libertadores, the region’s most popular club tournament, among other events.  Lopez and Martinez also relied on loyalty secured through the payment of bribes to certain CONMEBOL officials to advance the business interests of Fox, including to obtain confidential bidding information for the rights to broadcast the 2018 and 2022 World Cup tournaments in the United States, rights that Fox successfully obtained. 
   
• Romy was a high-ranking executive and shareholder of Imagina, a privately held, multinational media conglomerate based in Barcelona, Spain, that owned various subsidiaries around the world, including in the United States.  Romy participated in schemes to pay millions of dollars to high-ranking officials of the Caribbean Football Union (“CFU”) and of federations within the Central American Football Union (“UNCAF”), both regional soccer unions operating under the CONCACAF umbrella, to secure the media and marketing rights to FIFA World Cup qualifier matches organized by federations within the CFU and UNCAF.  In connection with the CFU scheme, Romy and his co-conspirators agreed to pay Jeffrey Webb, a senior official of the CFU and the president of CONCACAF, a $3 million bribe in exchange for a share of a contract awarding the media and marketing rights to CFU members’ home World Cup qualifier matches for the 2018 and 2022 qualification cycles.
   
• Full Play, a sports marketing company incorporated in Uruguay, based in Buenos Aires, Argentina, and owned by father-and-son defendants Hugo Jinkis and Mariano Jinkis, participated in numerous schemes to pay bribes to officials of CONMEBOL and CONCACAF in exchange for media and marketing rights to various soccer events, including World Cup qualifier and friendly matches, the Copa Libertadores, and multiple editions of the Copa América, a national team tournament administered by CONMEBOL.  Hugo and Mariano Jinkis, charged in the first indictment in the case unsealed on May 27, 2015, are among the defendants charged in the Indictment and remain fugitives.
   

In connection with the above schemes, the Indictment charges Romy and Full Play with RICO conspiracy and all four New Defendants with wire fraud and money laundering offenses.  Each of the offenses carries a maximum of 20 years’ imprisonment, and, if convicted, each defendant faces mandatory restitution, forfeiture and a fine.

Other schemes alleged in the Indictment relate to the payment and receipt of bribes and kickbacks in connection with, among other things, contracts for the media and marketing rights to additional soccer events and FIFA’s selection of the countries to host various editions of the World Cup, including the World Cup hosted by Russia in 2018 and the World Cup scheduled to be hosted by Qatar in 2022.

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

The government’s case is being prosecuted by Assistant United States Attorneys Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, Patrick T. Hein, Kaitlin T. Farrell, David C. Pitluck and Brian D. Morris, with assistance provided by the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.

The New Defendants:

HERNAN LOPEZ
Age: 49
Los Angeles, California

CARLOS MARTINEZ
Age: 51
Doral, Florida

GERARD ROMY
Age: 65
Barcelona, Spain

FULL PLAY GROUP S.A.
Buenos Aires, Argentina

E.D.N.Y. Docket No. 15-CR-252 (S-3) (PKC)

The U.S. District Court for the Eastern District of New York entered orders in two separate civil actions, barring eight individuals and entities from continuing to facilitate the transmission of massive volumes of fraudulent robocalls to consumers in the United States, the Department of Justice announced today. 

In one of the matters, United States v. Nicholas Palumbo, et al., the District Court entered a preliminary injunction that bars two individuals and two entities from operating as intermediate voice-over-internet-protocol (VoIP) carriers during the pendency of the civil action.  In the other matter, United States v. John Kahen, et al., the District Court entered consent decrees that permanently bar an individual and three entities from operating as intermediate VoIP carriers conveying any telephone calls into the U.S. telephone system.

“These massive robocall fraud schemes target telephones of residents across our country, many of whom are elderly or are otherwise potentially vulnerable to such schemes,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “The department is committed to stopping this unlawful conduct and pursuing those who knowingly facilitate these schemes for their own financial gain.”

“This office will take all appropriate measures to stop fraudulent robocalling schemes responsible for causing catastrophic losses to victims, including seeking to permanently shut down the U.S.-based enablers of such schemes,” said United States Attorney Richad P. Donoghue for the Eastern District of New York.  “Protecting elderly and vulnerable individuals from being conned by foreign call center scammers remains a priority of this office and the Department of Justice.”

As alleged in the complaints, the defendants in both cases operated as VoIP carriers, receiving internet-based calls from other entities, often located abroad, and transmitting those calls first to other carriers within the United States and, ultimately, to the phones of individuals.  Numerous foreign-based call centers are alleged to have used the defendants’ VoIP carrier services to pass fraudulent government- and business-imposter robocalls to victims in the United States.  The defendants also sold U.S. phone numbers to foreign entities, which were used as victim call-back numbers as part of massive robocalling fraud schemes.

As also alleged, the defendants were warned numerous times that they were carrying fraudulent robocalls — including calls impersonating government agencies, such as the Social Security Administration, the IRS, and legitimate businesses, such as Microsoft — and yet continued to carry those calls and facilitate fraud schemes targeting individuals in the United States.  Many of the robocalls were made by foreign fraudsters impersonating government investigators and conveying alarming messages, such as: the recipient’s social security number or other personal information has been compromised or otherwise connected to criminal activity; the recipient faces imminent arrest; the recipient’s assets are being frozen; the recipient’s bank and credit accounts have suspect activity; the recipient’s benefits are being stopped; the recipient faces imminent deportation; or combinations of these threats.  Each of these claims was a lie, designed to scare the call recipient into paying large sums of money.  These calls led to massive financial losses to elderly and other vulnerable victims throughout the United States.

“The court’s decision sends a clear message to gateway carriers who knowingly do business with scammers targeting Americans from overseas,” said Gail S. Ennis, Inspector General for the Social Security Administration.  “We will continue to pursue those who facilitate these scam calls by allowing them into the U.S. telephone network.  I want to thank the Department of Justice for its support throughout this investigation and its commitment to protecting Americans from this insidious form of fraud and theft.”

United States v. Nicholas Palumbo, et al.

In the first case, the District Court issued a preliminary injunction against spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and the Arizona companies they own and operate, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com.  The District Court held, in a written opinion, that the evidence presented by the United States demonstrated probable cause to conclude that the defendants were engaged in “widespread patterns of telecommunications fraud, intended to deprive call recipients in the Eastern District of New York and elsewhere of money and property.”

The preliminary injunction issued by the court bars those defendants from carrying any VoIP calls destined for phones in the United States and providing any U.S. telephone numbers (often used as call-back numbers in the fraudulent robocalling schemes) to any individuals or entities during the pendency of this litigation.  The court noted that though defendants had been warned more than 100 times of specific instances of fraudulent calls being transmitted through their network, they never severed their business relationship with any entity they learned was associated with fraudulent call traffic, prior to the United States’ filing of its lawsuit.  The court further noted that “the telecommunications ‘intermediary’ industry is set up perfectly to allow fraudulent operators to rotate telephone numbers endlessly and blame other parties for the fraudulent call traffic they carry,” that the United States “demonstrat[ed] probable cause to conclude that defendants’ business is permeated with fraud,” that “multiple individual victims in the United States suffered significant fraud losses,” and that “[e]very day that the defendants’ actions in this vein continue, the public is at risk of harm in the form of additional high-dollar fraud losses.”

The claims in the United States v. Nicholas Palumbo, et al. matter are allegations only, and there has not been any final determination of liability or wrongdoing.

United States v. John Kahen, et al.

In the second case, the District Court entered consent decrees permanently resolving the matter against five individuals and entities who were also operating intermediary VoIP carriers.  The court entered a consent decree on March 2, 2020 against Jon Kahen, a/k/a Jon Kaen of New York, and New York corporations Global Voicecom Inc. and Global Telecommunication Services Inc., permanently barring those defendants from, among other things, using the U.S. telephone system to: deliver prerecorded messages through automatic means, carry calls to the United States from foreign locations, and provide calling and toll-free services for calls originating in the United States.  In addition, the defendants are permanently barred from serving as employees, agents, or consultants to any person or entity engaged in these activities.  In a second consent decree, entered on March 24, 2020, the District Court barred KAT Telecom Inc., a New York corporation, from conveying or causing any other person or entity from conveying fraudulent telephone calls, fraudulent recordings, and unauthorized “spoofed” telephone calls.  In the event that KAT Telecom, Inc. resumes operations, it must also implement strong anti-fraud measures, including anti-fraud monitoring, mitigation, and know-your-customer measures.

The claims resolved by the settlement in the United States v. Jon Kahen, et al. matter are allegations only, and there has not been any final determination of liability or wrongdoing. 

These cases are being handled by Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Bonni Perlin, Dara Olds, and Evan Lestelle of the U.S. Attorney’s Office for the Eastern District of New York, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service.  Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service.  The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.  

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.   

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

WASHINGTON – The Department of Justice announced that the U.S. District Court for the Eastern District of New York entered orders in two separate civil actions barring eight individuals and entities from continuing to facilitate the transmission of massive volumes of fraudulent robocalls to consumers in the United States.  In one of the matters, United States v. Nicholas Palumbo, et al., the court entered a preliminary injunction that bars defendants Nicholas and Natasha Palumbo and two entities from operating as intermediate voice-over-internet-protocol (VoIP) carriers during the pendency of the civil action.  In the other matter, United States v. Jon Kahen, et al., the court entered consent decrees that permanently bar defendants Jon Kahen and three entities from operating as intermediate VoIP carriers conveying fraudulent robocalls into the U.S. telephone system.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Jody H. Hunt, Assistant Attorney General of the Justice Department’s Civil Division, and Gail S. Ennis, Inspector General, Social Security Administration (SSA), made the announcement.

“This Office will take all appropriate measures to stop fraudulent robocalling schemes responsible for causing catastrophic losses to victims, including seeking to permanently shut down the U.S.-based enablers of such schemes,” stated United States Attorney Donoghue.  “Protecting elderly and vulnerable individuals from being conned by foreign call center scammers remains a priority of this office and the Department of Justice.”

“These massive robocall fraud schemes target telephones of residents across our country, many of whom are elderly or are otherwise potentially vulnerable to such schemes,” stated Assistant Attorney General Hunt.  “The Department is committed to stopping this unlawful conduct and pursuing those who knowingly facilitate these schemes for their own financial gain.”

“The Court’s decisions send a clear message to gateway carriers who knowingly do business with scammers targeting Americans from overseas,” stated SSA Inspector General Ennis.  “We will continue to pursue those who facilitate these scam calls by allowing them into the U.S. telephone network.  I want to thank the Department of Justice for its support throughout this investigation and its commitment to protecting Americans from this insidious form of fraud and theft.”

As alleged in the complaints, the defendants in both cases operated as intermediate VoIP carriers, receiving internet based calls from other entities, often located abroad, and transmitting those calls first to other carriers within the United States, and ultimately to the phones of individuals.  Numerous foreign-based call centers are alleged to have used the defendants’ VoIP carrier services to pass fraudulent government and business imposter robocalls to victims in the United States.  The defendants also sold U.S. phone numbers to foreign entities, which were used as victim call-back numbers as part of massive robocalling fraud schemes.

As also alleged, despite numerous warnings that they were carrying fraudulent robocalls—including calls impersonating government agencies such as the Social Security Administration, the Internal Revenue Service and businesses such as Microsoft—the defendants continued carrying those calls and facilitating fraud schemes targeting individuals in the United States.  Many of the robocalls were made from foreign-based call centers by individuals impersonating government investigators and conveying alarming messages, such as: the recipient’s social security number or other personal information has been compromised or otherwise connected to criminal activity; the recipient faces imminent arrest; the recipient’s assets are being frozen; the recipient’s bank and credit accounts have suspect activity; the recipient’s benefits are being stopped; the recipient faces imminent deportation; or combinations of these threats.  Each of these claims was false and designed to scare the call recipient into paying large sums of money.  Many times the numbers that appeared as the originating or caller-ID numbers for these calls were “spoofed” to make it appear that they originated from legitimate government or business offices in the United States, when in reality the calls were made by overseas scammers, often located in India.  The defendants also sold toll-free and other U.S. numbers to foreign call centers that were left in fraudulent robocall messages on victims’ phones to further deceive them into believing that the calls were legitimate and originated in the United States.  These calls led to massive financial losses to elderly and other vulnerable victims throughout the United States.

United States v. Nicholas Palumbo, et al.

In the first case, the court issued a preliminary injunction against spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and the Arizona companies they own and operate, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com.  The court held, in a written opinion, that the evidence presented by the United States demonstrated probable cause to conclude that the defendants were engaged in “widespread patterns of telecommunications fraud, intended to deprive call recipients in the Eastern District of New York and elsewhere of money and property.”

The preliminary injunction bars the defendants from carrying any VoIP calls destined for phones in the United States and providing any U.S. telephone numbers (often used as call-back numbers in the fraudulent robocalling schemes) to any individuals or entities during the pendency of this litigation.  The court noted that, although the defendants had been warned more than 100 times of specific instances of fraudulent calls being transmitted through their network, they never severed their business relationship with any entity they learned was associated with fraudulent call traffic prior to the United States filing of its lawsuit.  The court further noted that “the telecommunications ‘intermediary’ industry is set up perfectly to allow fraudulent operators to rotate telephone numbers endlessly and blame other parties for the fraudulent call traffic they carry,” that the United States “demonstrat[ed] probable cause to conclude that Defendants’ business is permeated with fraud,” that “multiple individual victims in the United States suffered significant fraud losses” and that “[e]very day that the Defendants’ actions in this vein continue, the public is at risk of harm in the form of additional high-dollar fraud losses.”

 United States v. Jon Kahen, et al.

In the second case, the court entered consent decrees permanently resolving the matter against five individuals and entities who were also operating intermediary VoIP carriers.  The consent decree entered on March 2, 2020 against Jon Kahen, a/k/a Jon Kaen of New York, and New York corporations Global Voicecom, Inc. and Global Telecommunication Services Inc., permanently barred those defendants from, among other things, using the U.S. telephone system to: deliver prerecorded messages through automatic means, carry calls to the United States from foreign locations, and provide calling and toll-free services for calls originating in the United States.  In addition, the defendants are permanently barred from serving as employees, agents, or consultants to any person or entity engaged in these activities.  In a second consent decree entered on March 24, 2020, the court barred KAT Telecom, Inc., a New York corporation, from conveying or causing any other person or entity from conveying fraudulent telephone calls, fraudulent recordings and unauthorized “spoofed” telephone calls.  In the event that KAT Telecom, Inc. resumes operations, it must also implement strong anti-fraud measures, including anti-fraud monitoring, mitigation and know-your-customer measures.

The claims resolved by the settlement in United States v. Jon Kahen, et al. are allegations only, and there has not been any final determination of liability or wrongdoing.  The claims in United States v. Nicholas Palumbo, et al. are allegations only, and there has not been any final determination of liability or wrongdoing.

The government is represented by Assistant U.S. Attorneys Bonni Perlin, Evan Lestelle and Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York, and Trial Attorneys Ann Entwistle and Bart Dunn of the Civil Division’s Consumer Protection Branch.  The SSA’s Office of Inspector General, the USPIS, the Office of Inspector General for Tax Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force provided investigative support.  The Federal Trade Commission and the Federal Communications Commission provided pertinent data. 

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.   

The Defendants:

NICHOLAS PALUMBO et al.
Scottsdale, Arizona

E.D.N.Y. Docket No. 20-CV-473 (EK)

JON KAHEN et al.
Great Neck, New York

E.D.N.Y. Docket No. 20-CV-474 (BMC)

BROOKLYN, NY – Richard P. Donoghue, United States Attorney for the Eastern District of New York, today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov.

In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes. The NCDF Hotline can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.

“Any individual or company despicably seeking to enrich themselves by taking advantage of the Coronavirus emergency facing our country will face the full force of the U.S. Justice Department, and I expect they will not be happy with the outcome,” stated United States Attorney Donoghue.

Some examples of these schemes include:

• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.      

In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to lead each office’s efforts to investigate and prosecute Coronavirus-related crimes, and to conduct outreach and awareness activities.  

The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.

Following a six-week trial, a federal jury in Central Islip, New York returned a guilty verdict today on all counts against former registered stock brokers Jeffrey Chartier and Lawrence Isen for their roles in a conspiracy to manipulate and fraudulently promote shares of publicly traded companies Hydrocarb Energy Corp. (HECC), CES Synergies, Inc. (CESX), National Waste Management Holdings, Inc. (NWMH) and Intelligent Content Enterprises, Inc. (ICEIF).  Specifically, the defendants were convicted of money laundering conspiracy, wire fraud conspiracy, securities fraud conspiracy, securities fraud and money laundering.  Chartier was additionally convicted of attempted obstruction of an official proceeding based upon lies he told to the Federal Bureau of Investigation (FBI) after his arrest in this case.  

When sentenced by United States District Judge Joanna Seybert, the defendants each face a maximum sentence of more than 20 years’ imprisonment.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.

“Chartier, Isen and their co-conspirators lied to investors, including elderly victims, but the jurors here saw the truth – that these defendants were brazenly stealing money through fraudulent investment schemes,” stated United States Attorney Donoghue.  Mr. Donoghue thanked the FBI for leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.

From 2013 to 2017, Chartier, Isen and two boiler rooms located in Plainview and Melville, New York – known as, among other names, Elite Stock Research and Power Traders Press – artificially inflated the price and trading volume of the four stocks.  They did so through a cold-calling campaign that used lies and high-pressure sales tactics to lure victims, many of whom were elderly, into purchasing stock.  The conspiracy’s market manipulation fraudulently inflated the stock price of the four stocks by more than $147 million.   

Chartier, who became a major shareholder in CESX and NWMH after persuading those companies to retain him to help take them public, used the boiler rooms to dump nearly $2 million worth of those companies’ shares on unsuspecting victims.  He also sold stock to individuals in private transactions without telling them that the stock had been manipulated to trade at an artificially high price and volume.  Using some of the proceeds from his fraudulent scheme, he purchased a $350,000 luxury RV equipped with a flat screen television and a fireplace, which he used as a traveling office.

After Chartier was arrested in July 2017, and after waiving his Miranda rights, he lied to FBI Special Agents about his and others’ involvement in the scheme, including that he sold NWMH shares only via purchase agreements.

Isen, who was barred from acting as a broker by FINRA in 1996 and convicted of wire fraud conspiracy in the Southern District of New York in 2000, orchestrated the manipulation of stock belonging to, among others, major HECC shareholder Michael Watts and major ICEIF shareholders located in India.  Watts was previously convicted in October 2019 for his role in the stock manipulation scheme following a month-long jury trial and is awaiting sentencing.

Chartier and Isen are the 15th and 16th defendants convicted in this case.  Four defendants have been sentenced for their roles in the scheme:  Ronald Hardy was sentenced to 10 years’ imprisonment; Dennis Verderosa was sentenced to six years’ imprisonment; McArthur Jean was sentenced to four years’ imprisonment; and Emin Cohen was sentenced to two years’ imprisonment.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution.  Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Forfeiture Section is handling the forfeiture matters.

The Defendants:

JEFFREY CHARTIER
Age: 56
Los Angeles, California

LAWRENCE ISEN
Age: 66
San Diego, California

Defendants Who Were Previously Convicted:

RONALD HARDY
Age:  44
Port Jefferson, New York

MCARTHUR JEAN (also known as “John McArthur”)
Age:  37
Dix Hills, New York

STEPHANIE LEE
Age: 48
St. Petersburg, Florida

ERIK MATZ
Age:  46
Mt. Sinai, New York

BRIAN HEEPKE (also known as “Brian Targis”)
Age:  39
Farmingdale, New York

DENNIS VERDEROSA
Age:  79
Coram, New York

EMIN L. COHEN (also known as “Ian Grant”)
Age:  36
Coram, New York

PAUL EWER
Age:  39
Massapequa, New York

ASHLEY ANTOS
Age:  28
Central Islip, New York

SERGIO RAMIREZ
Age:  46
East Meadow, New York

ROBERT GILBERT
Age:  53
Cold Spring Harbor, New York

ANTHONY VASSALLO
Age:  56
Farmingdale, New York

MICHAEL WATTS
Age:  63
Sugarland, Texas

Docket No. 17-CR-372 (S-3) (JS)

Following two weeks of trial, a federal jury in Brooklyn last night returned guilty verdicts convicting Jose Miguel Melendez-Rojas, Francisco Melendez-Perez, Abel Romero-Melendez, Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas, all members of the Melendez-Rojas Organization, of sex trafficking, sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and money laundering conspiracy.  When sentenced by United States District Judge Allyne R. Ross, the defendants each face a maximum sentence of life imprisonment on the most serious charge.  A sixth co-defendant, Fabian Reyes-Rojas, pleaded guilty to sex trafficking conspiracy and sex trafficking on December 27, 2019.  Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas were extradited to the United States from Mexico in October 2018.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the verdicts.

Between 2006 and July 2017, the defendants transported women and girls, including minors, to the United States and coerced them to work in prostitution.  The defendants used false promises of love, marriage and a better life to lure their victims into romantic and sexual relationships, and then isolated them from their families by bringing them to live with the defendants in Tenancingo, Mexico.  Upon arrival in the United States, the defendants resorted to brutal beatings, threats of violence, forced abortions and psychological manipulation to compel their victims to work in prostitution in New York City, Long Island, New Jersey, Connecticut and Delaware.  The defendants took the proceeds generated from the victims’ prostitution, and laundered it to conceal its source.

At the trial, a victim identified as “Delia” testified that she was forced into prostitution by Melendez-Perez and his uncle Rosalio Melendez-Rojas when she was only 14 years old.  When she refused to work, Melendez-Perez beat her, and when he thought she might be pregnant, he tried to force her to have a miscarriage.  During their six to seven-hour working shifts, the victims were typically forced to have sex with 15 to 20 men.  The defendants confirmed the number of customers by counting the number of unused condoms returned at the end of the victims’ shifts.

“The crimes committed by the members of the Melendez-Rojas Trafficking Organization were horrific,” stated United States Attorney Donoghue.  “It is my hope that today’s verdicts bring some measure of closure to the young women who bravely testified during the trial and who suffered greatly while under the control of the defendants.  We will not tolerate the sexual exploitation of women and girls by brutal criminals like these defendants.”

“The atrocities this organization committed against young women, robbing them of their youth and forcing them to work as prostitutes, are disgraceful,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI and our partners work tirelessly to gain the trust of those who are forced into this reprehensible crime, ensuring these victims and their families are given an opportunity once they are rescued from sex traffickers. This conviction does not just point to the outstanding work of the investigative team, it serves as a testament to the will and courage of those victims to tell their stories.”

The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative.  Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the bilateral initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children.  These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous federal and state prosecutions of associated sex traffickers in Mexico.  The extraditions in this case are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants for sex trafficking; assisted more than 150 victims, including over 40 minors; reunited 19 victims’ children with their mothers; and secured restitution orders of over $4 million on behalf of trafficking victims.

The government’s case is being prosecuted by Assistant United States Attorneys Tanya Hajjar, Erin Argo and Gillian Kassner. 

The Defendants:

JOSE MIGUEL MELENDEZ-ROJAS
Age:  43
Mexico

FRANCISCO MELENDEZ-PEREZ (also known as “Paco” and “El Mojarra”)
Age:  25
Queens, New York   

ABEL ROMERO-MELENDEZ (also known as “La Borrega” and “Borrego”)
Age:  33
Queens, New York

JOSE OSVALDO MELENDEZ-ROJAS
Age:  43
Mexico

ROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age:  38
Mexico

Co-Defendant Who Previously Pleaded Guilty:

FABIAN REYES-ROJAS
Age:  40
Mexico

E.D.N.Y. Docket No. 17-CR-434 (ARR)

Earlier today, in federal court in Central Islip, Zoobia Shahnaz was sentenced to 13 years’ imprisonment by United States District Judge Joanna Seybert for providing material support to a foreign terrorist organization, specifically more than $150,000 to the Islamic State of Iraq and al-Sham (ISIS), and attempting to travel to Syria to join ISIS.  Shahnaz pleaded guilty in November 2018.   

John C. Demers, Assistant Attorney General for National Security, Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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.

As set forth in court filings and facts presented at the sentencing hearing, between March 2017 and July 2017, Shahnaz defrauded numerous financial institutions to obtain money for ISIS, including a loan for approximately $22,500.  Shahnaz also fraudulently obtained more than a dozen credit cards and used them to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online.  Shahnaz then made multiple wire transfers totaling more than $150,000 to individuals and entities in Pakistan, China and Turkey that were fronts for ISIS.

Shahnaz accessed ISIS violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers.  She also performed numerous internet searches for information that would facilitate her entry into Syria.  Court-authorized search warrants executed at Shahnaz’s residence on Long Island resulted in the seizure of terrorist and jihad-related propaganda, including a photograph of a suicide belt of explosives and a night vision scope. 

On July 31, 2017, Shahnaz was arrested at John F. Kennedy International Airport in Queens, New York, while attempting to board a flight with a layover in Istanbul, Turkey – a common point of entry for individuals travelling from western countries to join ISIS in Syria.      

The government’s case is being handled by the Office’s National Security and Cybercrime Section and Long Island Criminal Division.  Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance provided by Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.    

Earlier today, in federal court in Central Islip, Zoobia Shahnaz was sentenced to 13 years’ imprisonment by United States District Judge Joanna Seybert for providing material support to a foreign terrorist organization, specifically more than $150,000 to the Islamic State of Iraq and al-Sham (ISIS), and attempting to travel to Syria to join ISIS.  Shahnaz pleaded guilty in November 2018. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., 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.

“Today, the defendant learned the consequences of seeking to join ISIS and funneling thousands of dollars into the terrorist organization’s coffers,” stated United States Attorney Donoghue.  “There is no higher priority of the Department of Justice and this Office than protecting our country from those who support violent, hate-filled terrorist organizations.”  Mr. Donoghue praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force which consists of investigators and analysts from the FBI, the NYPD and over 50 other federal, state and local agencies.

“Financing terrorist organizations shouldn’t be viewed as any less dangerous of a crime than actually carrying out an act of terror itself. Make no mistake about it, Shahnaz funneled a significant amount of money into the hands of those who intended to use it in furtherance of ISIS objectives, and she set out to travel overseas with similar goals in mind. Today’s sentencing is a welcome end to this case as the FBI, along with our partners on the JTTF, continues to pursue other like-minded individuals,” stated FBI Assistant Director-in-Charge Sweeney.

As set forth in court filings and facts presented at the sentencing hearing, between March 2017 and July 2017, Shahnaz defrauded numerous financial institutions to obtain money for ISIS, including a loan of approximately $22,500.  Shahnaz also fraudulently obtained more than a dozen credit cards and used them to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online.  Shahnaz then made multiple wire transfers totaling more than $150,000 to individuals and entities in Pakistan, China and Turkey that were fronts for ISIS.

Shahnaz accessed ISIS violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers.  She also performed numerous internet searches for information that would facilitate her entry into Syria.  Court-authorized search warrants executed at Shahnaz’s residence on Long Island resulted in the seizure of terrorist and jihad-related propaganda, including a photograph of a suicide belt of explosives and a night vision scope. 

 On July 31, 2017, Shahnaz was stopped at John F. Kennedy International Airport in Queens, New York, while attempting to board a flight with a layover in Istanbul, Turkey – a common point of entry for individuals travelling from western countries to join ISIS in Syria.      

The government’s case is being handled by the Office’s National Security and Cybercrime Section and Long Island Criminal Division.  Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance provided by Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.    

The Defendant:

ZOOBIA SHAHNAZ
Age: 30
Brentwood, New York

E.D.N.Y. Docket No. 17-CR-522 (JS)

Following two weeks of trial, a federal jury in Brooklyn today convicted Elgin Brack of Hobbs Act robbery conspiracy and related crimes for his participation in the gunpoint robberies and attempted robbery of four convenience stores in Queens in November 2018.  During the attempted robbery of a Duane Reade store, Brack shot the store’s clerk in the head and hand.  When sentenced by United States District Judge Eric N. Vitaliano, Brack faces a mandatory minimum of 31 years’ imprisonment.

Brack’s uncle and co-defendant, Scott Brack, pleaded guilty to Hobbs Act robbery conspiracy in November 2019 and is awaiting sentencing.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the verdict.

“The defendant has been held responsible by the jury for his crime spree that left bloodshed and terrorized victims in its wake,” stated United States Attorney Donoghue.  “Today’s verdict ensures that Elgin Brack will face substantial punishment.  I commend the NYPD detectives and ATF Special Agents for quickly apprehending the defendants and preventing further mayhem.”

“Today’s verdict ensures that Elgin Brack will pay a price for the violence and terror that he perpetrated on the streets of New York,” stated ATF Special Agent-in-Charge DeVito.  “The reckless violence the defendant left in his wake will be met with years in prison contemplating his crimes and harm done to his fellow citizens. The robust partnership between the ATF Special Agents and NYPD detectives of the ATF/ NYPD Joint Robbery Task Force that worked this case led to quick arrests preventing additional violence and harm to the community. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”

“Today’s conviction assures a measure of justice for the victims of these violent robberies. I commend our detectives, working with our federal partners, for vigorously investigating this case from the moment these crimes occurred,” stated NYPD Commissioner Shea.

On November 26, 2018, between approximately 3:35 a.m. and 5:45 a.m., defendant Elgin Brack attempted to rob a Duane Reade store in Woodside, and completed three robberies of a 7-Eleven store in Long Island City, a Rite Aid store in Astoria and a second Rite Aid store in Jamaica, together with Scott Brack, who served as the getaway driver. 

As proven at trial, at approximately 3:30 a.m., Elgin Brack entered the Duane Reade store, pretended to make a purchase, then pointed a gun at the store clerk.  When the clerk did not respond quickly, Brack shot him in the hand and the head as he resisted.  Brack fled the store empty handed and, together with Scott Brack, drove to the 7-Eleven store, where he robbed the store of $300 at gunpoint from a store employee.  The defendants then drove to the first Rite Aid store, where Elgin Brack approached a store clerk and asked to purchase chewing gum.  When the store clerk opened the cash register, Brack pointed a gun at the clerk and demanded money.  The store clerk handed Elgin Brack $802.  Finally, at approximately 5:45 a.m., Elgin Brack entered the second Rite Aid store, pointed a gun at the store clerk and robbed the store of $200.

Later that day, at approximately 9:00 p.m., detectives and Special Agents from the ATF-NYPD Joint Robbery Task Force, Strategic Pattern Armed Robbery Technical Apprehension team, located the getaway vehicle in the Bronx and arrested the defendants.  The law enforcement officers recovered clothing from the back seat of the car that matched the clothes Elgin Brack wore during the robberies and attempted robbery, and a backpack containing a .357 revolver that was later determined to have Elgin Brack’s DNA on it.  Elgin Brack’s cell phone contained Internet searches for 24-hour stores made shortly before the defendants’ crimes occurred.

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.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

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

The Defendant Convicted Today:

ELGIN BRACK
Age:  24
Brooklyn, New York

The Co-Defendant Who Previously Pleaded Guilty:        

SCOTT BRACK
Age:  51
Bronx, New York

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

A Brooklyn, New York, tax return preparer was sentenced to 15 months in prison today for preparing false returns for his clients and himself, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.

According to court documents and statements made in court, Emerson Gamory owned and operated Emerson Gamory Income Tax Services Inc. (Gamory Tax), a tax preparation business in Brooklyn. From 2013 through 2017, Gamory falsified client returns by fraudulent claiming deductions for gifts to charity, unreimbursed employee expenses, and education expenses in order to inflate his clients’ refunds. Gamory also prepared false returns for Gamory Tax that underreported its gross receipts and returns for himself that underreported net profits. In total, Gamory caused a tax loss of more than $550,000 to the United States. 

On June 25, 2019, Gamory pleaded guilty to aiding and assisting in the preparation of false tax returns and filing a false return for himself.

In addition to the term of imprisonment, U.S. District Judge Carol Bagley Amon ordered Gamory to serve one year of supervised release and to pay $574,565 in restitution to the United States.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of IRS-CI, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorney Christopher P. O’Donnell of the Tax Division, and Assistant U.S. Attorney John Vagelatos, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

Earlier today, before United States District Court Judge Dora L. Irizarry in Brooklyn, Andrew Tepfer pleaded guilty to participating in a money laundering conspiracy designed to avoid paying a multi-million dollar court-ordered restitution judgment compensating victims of a securities fraud scheme.  When sentenced, Tepfer faces up to 20 years in prison and a fine in an amount to be determined by the court.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.

 “With today’s guilty plea, Tepfer has been held responsible for his participation in a money laundering scheme to hide funds derived from a brazen shakedown,” stated United States Attorney Donoghue.  “This Office will vigorously prosecute those who flout court orders and exploit victims.”  Mr. Donoghue thanked the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation for their assistance with the investigation.

 According to court filings, in 2011 and 2012, Tepfer and another individual (“John Doe”) pleaded guilty in federal court in Brooklyn to securities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.  At their sentencing proceedings in 2014, they were ordered to pay approximately $12.7 million in restitution to the victims of the scheme.  Thereafter, in February 2017, Tepfer’s co-conspirator Mark Weissman told John Doe that incriminating information about him would be provided to law enforcement unless he paid $6 million to Tepfer.  Weissman and his co-conspirators then planned how to have John Doe make the payment in a manner that would prevent it from being seized by law enforcement authorities seeking to enforce the court’s restitution order.  In June 2019, Weissman pleaded guilty to conspiring to obstruct an official proceeding and was sentenced in January 2020 to four years’ probation, 300 hours of community service and a $45,000 fine.

At his guilty plea proceeding today, Tepfer admitted that he conspired with others to conduct international financial transactions designed both to funnel funds that he believed were the proceeds of the earlier securities fraud back to himself, and to conceal the source of those funds.

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

The Defendant:

ANDREW TEPFER (also known as "Avi Tepfer")
Age:  56
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-524 (DLI)

BROOKLYN, NY – A federal jury in Brooklyn returned a guilty verdict last night against pharmacy owner Yuriy Barayev on one count of health care fraud and seven counts of money laundering for his role in a scheme to defraud Medicare by billing for prescription medications that were not provided to patients.  The verdict followed a four-day trial before United States District Judge Edward R. Korman.  When sentenced, Barayev faces up to 10 years in prison for health care fraud and up to 20 years in prison on each of the money laundering counts.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the verdict.

As proven at trial, from November 2013 to December 2015, Barayev engaged in a scheme to defraud Medicare by submitting claims for hundreds of medications that were never dispensed through his pharmacy, Woodhaven Rx.  The evidence further showed that Barayev laundered the proceeds of his health care fraud scheme through a shell company owned by his wife, and then spent the money on himself, his family and friends.

This case was investigated by HHS-OIG and IRS-CI.  Trial Attorneys Sarah Wilson Rocha and Debra Jaroslawicz, and Assistant Chief A. Brendan Stewart of the Criminal Division’s Fraud Section are prosecuting the case. 

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception, Strike Force prosecutors filed more than 1,750 cases charging more than 3,800 defendants who collectively billed the Medicare program approximately $15 billion; 2,643 defendants pleaded guilty and 338 others were convicted in jury trials; and 2,424 defendants were sentenced to imprisonment for an average term of approximately 50 months. Medicare payment trends demonstrate the positive impact of Strike Force enforcement and prevention efforts.

The Defendant:

YURIY BARAYEV
Age:  45
Queens, New York

E.D.N.Y. Docket No.  18-CR-318 (ERK)