Eastern District of New York

Three indictments were unsealed today in federal court in Brooklyn variously charging 20 defendants with racketeering, extortion, loansharking, stalking, attempted sports bribery and related offenses.  Among those charged with racketeering were Joseph Amato, an alleged captain in the Colombo organized crime family of La Cosa Nostra (“the Colombo family”); Daniel Capaldo and Thomas Scorcia, alleged Colombo family members; and Joseph Amato, Jr. and Anthony Silvestro, alleged Colombo family associates.  An additional alleged Colombo family member, Vincent Scura, was also indicted.  The indictments relate to the defendants’ charged criminal activities in Staten Island and elsewhere since January 2014. 

The defendants were arrested this morning, and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.

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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.

As alleged in the indictments and the government’s detention letters, the investigation began in November 2016 when a GPS tracking device was found concealed on an MTA bus.  Amato had earlier obtained the device to surveil his then-girlfriend and boasted about the resources at his disposal to keep her under close surveillance.  In one email, Amato stated, “This is my island. Not yours.  I have eyes all over[.]”  In another email, Amato stated, ‘I’m a MANS MAN!!!”  His then-girlfriend discovered the device on her vehicle and removed it, and it was subsequently attached to and recovered from the MTA bus at a depot n Staten Island.  Thereafter, the government obtained court-authorization to intercept communications over various cellular telephones used by the defendants.

As detailed in the government’s court filings, Amato and members of his crew used violence and threats of violence to earn illegal proceeds and solidify the crew’s reputation and standing.  On one occasion, an individual confronted Amato Jr. for insulting a woman in a bar.  Amato Jr. told the individual to back off, and threatened, “Do you know who my father is?”  The following day, the individual was lured to a location where Amato, Amato Jr. and other members of Amato’s crew brutally beat the victim, leaving him bloodied and in need of staples in his scalp.  On other occasions, court-authorized intercepts captured: (1) Scorcia boasting, “I told the guy sit in the car, and the kid had the tears,” (2) Silvestro advising Scorcia, “[Y]ou send him a smack.  If he raises his hand back to you, we beat the bricks off him, that’s it” and (3) following the commission of one of the charged crimes of violence, Amato Jr. described the crime and the victim’s reaction, “[W]e abused him so bad.  Yo I had, bro, me and Pap (Silvestro), bro, had him shaking bro.  He was in tears, he was crying.” 

The court-authorized wiretaps also captured the defendants’ scheme to fix an NCAA college basketball game.  To further the scheme, defendant Benjamin Bifalco offered members of a college basketball team thousands of dollars to intentionally lose the game.   

Two firearms, two stun guns, a canister of purported tear gas and thousands of dollars in U.S. currency were recovered during court-authorized searches of residences of Amato and Scorcia. 

“The mafia is not the criminal threat it once was, but we remain vigilant and will vigorously investigate and prosecute members and associates who engage in violence and extortion to intimidate victims and enrich themselves and their crime family,” stated United States Attorney Donoghue.  Mr. Donoghue extended his grateful appreciation to the Drug Enforcement Administration’s New York Drug Enforcement Task Force for its assistance during the investigation.

“One of the stunning things revealed in this investigation, it seems members of the mafia families that were once almost romanticized by Hollywood and pop culture, have resorted to acting like playground bullies.  As alleged, they are still up to their old extortion and bribery schemes, and terrorizing their victims, but they are also still getting caught.  The FBI New York Joint Organized Crime Task Force wants to send a clear message to members of the families in our communities who continue to operate, we will do all we can to stop a true resurgence from ever happening,” stated FBI Assistant Director-in-Charge Sweeney.

“The successful outcome of this investigation shows our continued efforts to target and hold responsible organized criminal syndicates,” stated NYPD Commissioner O’Neill.  “I thank our investigators and law enforcement counterparts whose cooperation was vital to bringing these individuals to justice.”

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

The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section.  Assistant United States Attorneys Elizabeth A. Geddes and Megan E. Farrell are in charge of the prosecution.

The Defendants:

E.D.N.Y. Docket No. 19-CR-442 (S-1)(ILG)

JOSEPH AMATO
Age: 60
Colts Neck, New Jersey

JOSEPH AMATO, JR.
Age: 26
Staten Island, New York

JOHN CAHILL
Age: 27
Staten Island, New York

DANIEL CAPALDO (also known as “The Wig” and “Shrek”)
Age: 54
Staten Island, New York

PRIMO CASSARINO
Age: 31
Staten Island, New York

CHRISTOPHER COFFARO
Age: 21
Staten Island, New York

JOHN DUNN
Age: 30
Staten Island, New York

PHILIP LOMBARDO
Age: 61
Staten Island, New York

JOSEPH MARRA (also known as “Joe Fish”)
Age: 58
Brooklyn, New York

ALBERT MASTERJOSEPH
Age: 57
Brooklyn, New York

DOMINICK RICIGLIANO (also known as “The Lion”)
Age: 30
Staten Island, New York

THOMAS SCORCIA
Age: 52
Staten Island, New York

VINCENT SCURA (also known as “Vinny Linen”)
Age: 58
Staten Island, New York

ANTHONY SILVESTRO (also known as “Bugz”)
Age: 28
Staten Island, New York

KRENAR SUKA
Age: 26
Staten Island, New York

JOHN TUCCIARONE
Age: 39
Staten Island, New York

E.D.N.Y. Docket No. 19-CR-443 (CBA)

ANTHONY BOSCO
Age: 26
Staten Island, New York

NICHOLAS BOSCO
Age: 30
Staten Island, New York

JOSEPH BOSCO
Age: 55
Staten Island, New York

E.D.N.Y. Docket No. 19-CR-444 (ARR)

BENJAMIN BIFALCO
Age:  25
Staten Island, New York

 

 

Earlier today, in federal court in Brooklyn, Joseph Calabria pleaded guilty to conspiring to distribute and possess with intent to distribute oxycodone, and to being a felon in possession of a firearm.  Last week, on September 23, 2019, his brother, Michael Calabria, pleaded guilty to conspiring to distribute and possess with intent to distribute heroin.  When sentenced, the defendants each face up to 20 years’ imprisonment for the drug conspiracies, and Joseph Calabria faces up to 10 years’ imprisonment for the firearms offense.  Both guilty pleas were entered before United States Magistrate Judge Steven L. Tiscione.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.

“Using their Staten Island homes as opioid supermarkets, the defendants distributed highly addictive and potentially lethal drugs on a daily basis,” stated United States Attorney Donoghue.  “The Eastern District and our law enforcement partners will continue working tirelessly to hold drug dealers accountable for contributing to the opioid epidemic, which has caused profound human suffering on Staten Island and elsewhere.”  Mr. Donoghue expressed his grateful appreciation to the United States Department of Health and Human Services, Office of Inspector General, for its assistance during the investigation.

Beginning in September 2016, with court authorization, law enforcement agents intercepted narcotics-related telephone communications between the defendants and others.  In his conversations, Michael Calabria conspired with others to distribute heroin, and then distributed it from his residence.  Some of the heroin seized during the investigation contained fentanyl.  During Joseph Calabria’s intercepted conversations, he conspired with others to distribute oxycodone, negotiated the purchase of thousands of oxycodone pills and distributed oxycodone pills from his residence.

The government’s case is being prosecuted by Assistant United States Attorney Alicia N. Washington. 

The Defendants:

JOSEPH CALABRIA
Age:  55
Staten Island, New York

MICHAEL CALABRIA
Age:  51
Staten Island, New York

E.D.N.Y. Docket No. 17-CR-91 (SJ)

A superseding indictment was filed today in federal court in Brooklyn charging Vicente Carrillo Fuentes with running a continuing criminal enterprise, as well as firearms offenses, money laundering and other drug-related crimes through his leadership of the Juarez Cartel, a violent drug trafficking organization.  Carrillo Fuentes was arrested by Mexican authorities in October 2014 and is presently incarcerated in Mexico.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York Field Office, James P. O’Neill, Commissioner, New York City Police Department (NYPD), and Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the charges.

“As alleged, Vicente Carrillo Fuentes was responsible for importing thousands of kilograms of poisonous cocaine into the United States, conspiring to murder his organization’s rivals and reaping tens of millions of dollars in drug trafficking profits,” stated United States Attorney Donoghue.  “This indictment and our determination to bring him to justice demonstrates, once again, that if you are ruthless enough and dumb enough to run a Mexican drug cartel, we have an American jail cell waiting for you.”

 “Like dominoes, another alleged leader of a Mexican drug cartel has fallen for his role in leading a continuing criminal enterprise that fueled drug addiction and drug-related deaths,” stated DEA Special Agent-in-Charge Donovan.  “The American judicial system’s reach goes beyond borders to bring international drug traffickers to justice.  I applaud the Government of Mexico, the United States Attorney’s Office for the Eastern District of New York and our law enforcement partners for their mutual partnership in drug trafficking investigations.”

“Carillo Fuentes, the leader of the Juarez Drug Cartel, allegedly funneled vast amounts of addictive drugs into the United States for more than 20 years, and threatened to kill anyone who challenged his position or organization,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI’s patience and resolve in investigating drug cartels has led to the arrests of narco-traffickers at the highest levels and the systematic dismantlement of their infrastructure, brick by brick.”

“This investigation is yet another example of law enforcement partners working collaboratively to get dangerous individuals and deadly drugs off our streets. I want to thank our federal, state and local partners for their ongoing hard work and collaboration on this case, which has resulted in disruption of a major drug trafficking operation and removal of a dangerous criminal who profited at the expense of our communities,” stated NYSP Superintendent Corlett.

According to the superseding indictment, between January 1990 and October 2014, Carrillo Fuentes was responsible for the importation into the United States, and distribution of, hundreds of tons of cocaine.  To ensure the success of his cartel, he employed individuals to obtain transportation routes and warehouses to import and store narcotics, and “sicarios,” or hit men, to carry out kidnappings and murders in Mexico to retaliate against rivals who threatened the cartel.  Until 2004, Carrillo Fuentes and the Juarez Cartel were closely aligned with the Sinaloa Cartel, led by Joaquin Guzman Loera, also known as, “El Chapo,” and Ismael Zambada Garcia, also known as, “El Mayo.”  Those cartels shared investments in drug shipments, transportation infrastructure and contacts with corrupt government officials to facilitate the transfer of drugs through Mexico.  The millions of dollars generated from the drug sales were then transported back to Mexico.   

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

The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Michael P. Robotti, Patricia Notopoulos and David J. Lizmi are in charge of the prosecution.

The Defendant:

VIcente Carrillo Fuentes (also known as "El Viceroy")
Age:  56
Mexico

E.D.N.Y. Docket No. 09-CR-522 (SJ)

An indictment was unsealed today in federal court in Brooklyn charging Angelina Barini with distributing and possessing with intent to distribute fentanyl that resulted in the fatal overdose of a Queens man on July 11, 2019.  Barini was arrested on a criminal complaint on August 25, 2019, and was arraigned on the indictment this morning before United States Magistrate Judge Steven M. Gold.  Barini was ordered detained pending trial.

Richard P. Donoghue, United States Attorney for the Eastern District of New York; Peter Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.             

“As alleged, without regard for the potentially lethal consequences of her actions and despite the enormous body count attributed to dangerous opioids, the defendant provided fentanyl to the victim, causing his death,” stated United States Attorney Donoghue.  “This Office will continue working tirelessly with our law enforcement partners to hold accountable those like the defendant who contribute to the opioid epidemic.”

“In her course of business as a prostitute, it is alleged that Barini gave her client a fatal dose of fentanyl resulting in his death,” stated HSI Special Agent-in-Charge Fitzhugh.  “It is well known that the opiod epidemic is very real and present in the New York City area, and with the hope of preventing future opioid related deaths, law enforcement at all levels continue to collaborate, investigate and arrest the dealers and traffickers who bring these deadly drugs into our area.”

As alleged in court filings, on July 11, 2019, the victim was found dead in a motel room in Woodside, Queens.  Video surveillance from earlier that day captured a female, who appeared to be Barini, and the victim, entering the motel together.  Subsequent to her arrest,  Barini was interviewed by law enforcement authorities and admitted supplying the drugs to the victim.

The Office of the Chief Medical Examiner determined the victim’s cause of death was fentanyl intoxication.  The investigation is continuing.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, she faces a mandatory minimum of 20 years’ imprisonment, and a maximum of life imprisonment.

Assistant United States Attorneys Soumya Dayananda, Andrew Grubin and Andrew Wang are in charge of the prosecution.

The Defendant:

ANGELINA BARINI
Age:  41
Queens, New York

E.D.N.Y. Docket No. 19-CR-428 (BMC)

A dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced to 20 years’ imprisonment followed by five years of supervised release, following his guilty plea to an international heroin, cocaine, methamphetamine and marijuana manufacture and distribution conspiracy.

Edgar Veytia, 48, was sentenced today by U.S. District Judge Carol Bagley Amon, who also ordered Veytia to forfeit $1 million, following a conspiracy charge relating to a scheme to import illegal drugs from Mexico to the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Richard P. Donoghue of the Eastern District of New York; Special Agent in Charge Ray Donovan of the Drug Enforcement Administration (DEA) New York Division; Special Agent in Charge David J. Downing of DEA Los Angeles Division; Special Agent in Charge Matt DeSarno of the FBI’s Washington D.C. Field Office and Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York Field Office made the announcement.

As established at the defendant’s sentencing, U.S. law enforcement has been investigating a violent Mexican drug trafficking organization, known as the H-2 Cartel that was previously lead by Juan Francisco Patron Sanchez, also known as “H-2,” and was based in Nayarit and Sinaloa, Mexico.  The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The government estimates that, during the relevant time period of the conspiracy, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana and earned millions of dollars in illegal proceeds.  Additionally, the H-2 Cartel was involved in the possession and use of firearms, and substantial violence, including torture and dozens of homicides.

Between January 2013 and February 2017, the defendant conspired with the H-2 Cartel to distribute thousands of kilograms of heroin, cocaine, methamphetamine and marijuana, from Mexico into the United States, and distributed those narcotics in the New York area, including in the Eastern District of New York.  Veytia used his position as the top law enforcement officer in his region to assist and abet drug trafficking organizations in Mexico.  Veytia received bribes on a monthly basis and provided official sanction for the H-2 Cartel to engage in drug trafficking in Nayarit.  Vetyia directed other corrupt Mexican law enforcement officers he oversaw to assist the H-2 Cartel, released members and associates of the H-2 Cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers in Nayarit for wiretaps and arrests and assisted the H-2 Cartel with murders and other acts of violence, all of which helped the H-2 Cartel’s illegal drug enterprise flourish.

The DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) investigated the case.  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.

The Office’s International Narcotics and Money Laundering Section of the United States Attorneys with the Narcotic and Dangerous Drug Section of the Department of Justice are handling the government’s case.  Trial Attorneys Jason Ruiz and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case.

Edgar Veytia, a dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced today to 20 years’ imprisonment and ordered to pay $1 million in forfeiture following his guilty plea to participating in an international heroin, cocaine, methamphetamine and marijuana manufacturing and distribution conspiracy responsible for importing illegal drugs from Mexico to the United States.  The sentencing was held before United States District Judge Carol Bagley Amon in federal court in Brooklyn

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 D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA); Timothy M. Dunham, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), announced the sentence.

“When Joaquin ‘El Chapo’ Guzmán was sentenced to life imprisonment, we warned that there were more days of reckoning to come. The sentence imposed on this corrupt Mexican government official makes this just such a day,” stated United States Attorney Donoghue.  “Neither Mexican cartel leaders nor corrupt officials who assist them should sleep well tonight. We are coming for you.”  Mr. Donoghue thanked the DEA New York Field Office for its assistance on the case.

“Today’s sentencing of Mr. Veytia shows DEA’s strong commitment to the rule of law and collaboration with other Government agencies,” said DEA Special Agent-in-Charge Bodner. “Our agents will continue to be relentless in the worldwide pursuit of drug traffickers and the corrupt government officials who protect them.”

“Veytia abused his position in the government and protected drug traffickers who brought dangerous drugs through his country to the U.S. on behalf of a violent Mexican drug cartel," stated FBI Special Agent-in-Charge Dunham.  “The FBI stands for fair and honest law enforcement and will continue to investigate any individual who places greed over the rule of law and commits such crimes that bring harmful drugs and corruption to our communities.”

“Working with the cartel, Veytia used Mexican law enforcement to protect drug loads, intimidate and harm rival drug traffickers.  He also used his role as Attorney General to obstruct justice when cartel members were arrested,” stated HSI Special Agent-in-Charge Fitzhugh.  “Law enforcement partnerships in investigating this case is what brought this individual who used his position of power for criminal gains to now face justice for his actions.”

U.S. law enforcement has been investigating the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez.  The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds.  In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.

Veytia used his position as the top law enforcement officer in the State of Nayarit to assist and sanction the cartel’s operations in Mexico, in exchange for bribes on a monthly basis.  Vetyia also directed other corrupt Mexican law enforcement officers under his supervision to assist the H-2 Cartel, released members and associates of the cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers for wiretaps and arrests and assisted the H-2 Cartel in carrying out murders and other acts of violence. In addition, Veytia assisted the H-2 Cartel in covering up the murder of a rival drug trafficker in October 2015.

The case was investigated by the DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF).  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.  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.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and the Narcotics and Dangerous Drug Section of the Department of Justice.  Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case, together with Trial Attorneys Jason Ruiz and Anthony Aminoff of the Narcotics and Dangerous Drug Section.

The Defendant:

Edgar Veytia  
Age: 48
EDNY Docket No. 17-CR-115 (CBA)

 

Four individuals, including two doctors, a pharmacist who had previously lost his license and been excluded from participating in the Medicaid and Medicare programs and a pharmacy owner have been charged for their participation in schemes in which the Medicare and Medicaid programs were fraudulently billed more than $17 million.  A fifth individual, a registered nurse, pleaded guilty to possession of fentanyl that he stole from his employer, a hospital on Long Island.  The charges filed in federal court in Brooklyn and Central Islip are part of a coordinated health care fraud enforcement action across seven federal districts in the northeast United States, led by the Medicare Fraud Strike Force, that resulted in criminal charges against 48 defendants for their alleged participation in health care fraud schemes involving more than $800 million in false and fraudulent claims.

The charges were announced by 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, 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); and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, New York Regional Office (HHS-OIG). 

“As alleged, defendants charged in the Eastern District of New York used fraud and deceit to steal Medicaid and Medicare funds meant to protect our elderly and most vulnerable residents,” stated United States Attorney Donoghue.  “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.” 

“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care.  The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” stated Assistant Attorney General Benczkowski.  “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”

 “As alleged today, the defendants took advantage of programs established for the benefit of those less fortunate, allowing themselves to profit by defrauding the government of public money. May today’s charges remind those who tear holes in the government safety net that they will face the error of their ways,” stated FBI Assistant Director-in-Charge Sweeney.

“There is no difference between the diversion of prescription medication to street drug trafficking,” stated DEA Special Agent-in-Charge Donovan.  “Allegedly, Kevin McMahon abused his position as a registered nurse diverting fentanyl for his personal use.  The DEA and our law enforcement partners’ goal is to keep our citizens safe by guarding against health care fraud and the illegal diversion of prescription medication.”    

 “Healthcare fraud is not a victimless crime—with unscrupulous providers preying on Medicare beneficiaries and taxpayers alike.  Especially insidious is the fraud committed by healthcare professionals who are trusted to provide needed, quality services to patients,” stated HHS-OIG Special Agent-in-Charge Lampert.  “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”

The schemes charged in the Eastern District of New York, detailed in two indictments, one complaint and one criminal information, are as follows:

United States v. Anna Steiner:  The superseding indictment charges Anna Steiner, a licensed anesthesiologist, was charged for her role in an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for prescribing and ordering durable medical equipment, prescription drugs and diagnostic tests that were neither medically necessary nor resulted from an examination by or consultation with a physician.  Steiner was charged with conspiracy to commit health care fraud and health care fraud in a superseding indictment filed on September 19, 2019.  The case is being prosecuted by Department of Justice Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section. 

United States v. Denny Martin:  Denny Martin, a licensed neurologist who was the sole owner of AM PM Medical P.C., was charged with health care fraud for his role in a scheme to falsely bill Medicare for treatments that were never performed.  Between 2015 and 2019, AM PM Medical P.C. submitted more than 3,000 in fraudulent claims for home health and podiatry visits to the Medicare program.  Martin was arrested this morning and arraigned before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn.  The case is being prosecuted by Assistant United States Attorney William P. Campos of the U.S. Attorney’s Office for the Eastern District of New York. 

United States v. Andrew Barrett and Phyllis Pincus:  Andrew Barrett, a pharmacist who had been previously convicted of healthcare fraud in 2016 and excluded from the Medicare and Medicaid programs, and Phyllis Pincus, the sole proprietor of two New York-based pharmacies, were indicted on September 24, 2019 for health care fraud, false claims and conspiracy to defraud the United States by submitting fraudulent claims to Medicare and Medicaid for medications that were not actually dispensed to patients.    The case is being prosecuted by Assistant United States Attorney William P. Campos of the U.S. Attorney’s Office for the Eastern District of New York.

United States v. Kevin McMahon:  Kevin McMahon, a registered nurse, was charged with possession of fentanyl, a Schedule II controlled substance.  The charge stem from McMahon’s theft of a synthetic opioid fentanyl while employed at Nassau University Medical Center.  McMahon was arraigned and pleaded guilty to a criminal information at the federal courthouse in Central Islip on September 25, 2019.  The case is being prosecuted by Assistant United States Attorney Erin E. Argo of the U.S. Attorney’s Office for the Eastern District of New York.

The Eastern District of New York’s Healthcare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section, was created in 2009 and since its inception has charged well over 100 defendants, many of which were medical professionals.

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

The Defendants:

DR. ANNA STEINER
Age:  63
Valatie, New York
E.D.N.Y. Docket No. 19-CR-295 (ILG)

DR. DENNY MARTIN
Age: 46
New York, New York
E.D.N.Y. Docket No. 19-MJ-847

ANDREW BARRETT
Age: 60
New City, New YorkE.D.N.Y. Docket No. 19-CR-436 (RJD)

PHYLLIS PINCUS
Age: 58
New City, New York
E.D.N.Y. Docket No. 19-CR-0436 (RJD)

KEVIN McMAHON
Age: 31
Seaford, New York
E.D.N.Y. Docket No. 19-CR-422 (ARL)

Sergey Ovsyannikov and Yevgeniy Timchenko, citizens of the Republic of Kazakhstan, pleaded guilty yesterday and today, respectively, in federal court in Brooklyn to conspiring to commit wire fraud and related charges, for their involvement in a widespread digital advertising fraud.  Ovsyannikov was arrested in October 2018 in Malaysia and extradited to the United States in March 2019.  Timchenko was arrested in November 2018 in Estonia and extradited to the United States in February 2019.  Both plea proceedings took place before United States Magistrate Judge Steven M. Gold.  When sentenced, Ovsyannikov faces up to 42 years in prison, and Timchenko faces up to 40 years in prison.

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), announced the guilty pleas.

Background on Digital Advertising

The internet is, in large part, freely available to users worldwide because it runs on digital advertising, where website owners display advertisements on their sites and are compensated by intermediaries representing businesses that advertise goods and services to  human customers.  In general, digital advertising revenue is based on how many users click, or view, the advertisements on those websites.  As alleged in court filings, the defendants in this case represented that they ran legitimate companies that delivered advertisements to human internet users, who accessed real internet webpages.  In fact, the defendants faked both the users and the webpages they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, and fraudulently obtained digital advertising revenue. 

The Botnet-Based Criminal Scheme (“3ve.2 Template A”)

Between December 2015 and October 2018, Ovsyannikov and Timchenko were involved in operating a purported advertising network and carried out a digital advertising fraud scheme, referred to in the advertising industry as “3ve.2 Template A.”  In this scheme, the defendants used a global “botnet”¾ a network of malware-infected computers operated without the true owner’s knowledge or consent to perpetrate their fraud.  The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers, and to detect whether a particular infected computer had been flagged by cybersecurity companies as being associated with fraud.  By using this infrastructure, the defendants accessed more than 1.7 million infected computers belonging to individuals and businesses in the United States and elsewhere, and used hidden browsers on those infected computers to download fabricated webpages and load advertisements onto those fabricated webpages.  Meanwhile, the owners of the infected computers were unaware that this process was running in the background on their computers.  As a result of this scheme, the defendants falsified billions of advertisement views and caused businesses to pay more than $29 million for advertisements that were never actually viewed by human internet users.    

The Defendants’ Roles

Ovsyannikov led the development of the 3ve.2 scheme, and was a principal and owner of the advertisement network used to carry out the scheme.  Ovsyannikov set out the infrastructure of the scheme in a spreadsheet titled “[Ad Network] Structure. Hosting and Domains.”  The spreadsheet listed many of the command-and-control servers and other servers involved in the scheme, including several designated as repositories of “spoof” webpages.  Ovsyannikov maintained lists of webpages to fabricate (or “spoof”) in his cloud storage account and on servers that he controlled, including more than 86,000 webpages associated with online publishers, including the webpages of thousands of businesses in the United States.  In communications with co-conspirators, Ovsyannikov explained how different aspects of the infrastructure worked together to perpetrate the fraud, such that a “bot” in the botnet would “set itself” to visit a “spoofed domain” and cause a falsified advertisement view.  Ovsyannikov directed proceeds of the fraud to bank accounts in Switzerland, among other locations.  As part of his guilty plea, Ovsyannikov will forfeit those Swiss bank accounts, which contain more than eight million dollars.         

Timchenko worked for Ovsyannikov and handled logistical and administrative aspects of the 3ve.2 scheme.  Timchenko assisted in creating the infrastructure of command-and-control servers and other servers that were instrumentalities of the scheme.  Timchenko deliberately chose certain U.S. service providers because they had the “coolest processors” and a “larger” cache (for temporary data storage) than competing providers.  Timchenko also researched webpages to fabricate, deliberately targeted webpages for businesses in the United States, and placed those webpages on a running list that both defendants kept that was titled “New companies for spoofing.” 

Separately, Ovsyannikov provided technical assistance to the operators of another digital advertising fraud scheme, referred to in the advertising industry as “Methbot.”  In the Methbot scheme, the perpetrators used computers housed in commercial datacenters, instead of in a botnet, to carry out the digital advertising fraud.  Ovsyannikov helped the Methbot operators program the datacenter computers to mimic human behavior, disguise the computers’ automated browsers, and evade fraud detection software.  The Methbot operators falsified billions of advertisement views and caused businesses to pay more than $7 million for advertisements that were never actually viewed by human internet users.

The Botnet Takedown

Following the arrest of Ovsyannikov by Malaysian authorities in October 2018, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known “Kovter.”  The FBI executed seizure warrants to redirect the internet traffic going to 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet (an action known as “sinkholing”), in order to disrupt and dismantle the botnet.  The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.  

In addition, as part of its investigation, the FBI discovered an additional cybercrime infrastructure committing digital advertising fraud through the use of datacenter servers located in Germany, and a botnet of computers in the United States infected with malicious software known in the cybersecurity community as “Boaxxe.”  The FBI executed seizure warrants to sinkhole eight domains used to further this scheme and thereby disrupt yet another botnet engaged in digital advertising fraud.

Finally, the United States, with the assistance of its foreign partners, executed seizure warrants for multiple international bank accounts in Switzerland and elsewhere that were associated with the schemes. 

For technical details on the malware and botnets referenced in this case, please see US-CERT Alert TA18-331A: https://www.us-cert.gov/ncas/alerts/TA18-331A

The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Saritha Komatireddy, Michael T. Keilty, Alexander F. Mindlin and Karin K. Orenstein are in charge of the prosecution.

The Defendants:

SERGEY OVSYANNIKOV
Age:  30
Republic of Kazakhstan

YEVGENIY TIMCHENKO
Age:  31
Republic of Kazakhstan

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

 

 

Tysheen Cooper, Michael Liburd and Maurice Washington, members of the West End Enterprise, a Coney Island-based street gang, pleaded guilty in federal court in Brooklyn on September 24 and September 25, 2019 to a racketeering conspiracy involving their participation in the murder of Antwon Flowers.  The guilty pleas were entered before United States District Court Judge Pamela K. Chen.   

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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas. 

As detailed in the superseding indictment, other public court filings and statements in court, the defendants were members of the West End Enterprise, a street gang comprising individuals residing in and around the Sea Rise Apartments, the Gravesend Houses and Surfside Gardens, also known as the “Mermaid Houses,” located in Coney Island.  Between approximately 2011 and October 2017, the gang committed various criminal acts, including narcotics distribution, robbery, extortion and murder. 

On January 17, 2016, the defendants agreed to murder Antwon Flowers in retaliation for what they believed was his role in setting up the killing of a West End Enterprise leader the previous day.  As captured on surveillance video, Liburd and Cooper followed Flowers as he walked out of the Mermaid Houses, at which point they pulled out firearms and shot at Flowers, with Liburd’s shot striking Flowers in the head and killing him.  Liburd and Cooper then fled in a getaway car that Washington had parked nearby. 

“Families living in apartment buildings and public housing deserve to feel as safe, and to be as safe, as those living in mansions,” stated United States Attorney Donoghue.  “We and our law enforcement partners will continue to prosecute gang members who inflict mindless violence not only on one another, but on the community.”  Mr.  Donoghue thanked the Drug Enforcement Administration and the New York City Housing Authority, Office of the Inspector General, for their assistance in the case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s 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 Mathew S. Miller, Jennifer M. Sasso and Kayla Bensing are in charge of the prosecution. 

The Defendants:

TYSHEEN COOPER (also known as “Billz”)
Age:  28
Brooklyn, New York

MICHAEL LIBURD (also known as “Mike Mike” and “Mitty”)
Age: 33
Brooklyn, New York

MAURICE WASHINGTON (also known as “Moe” and “Flaco”)
Age: 30
Brooklyn, New York

EDNY Docket No. 17-CR-296 (PKC)

 

 

A jury in Brooklyn returned a verdict yesterday finding Dilkhayot Kasimov, 31, a citizen of Uzbekistan and resident of Brooklyn, New York, guilty of conspiracy and of attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).  The verdict followed a one-week trial before United States District Judge William F. Kuntz, II.  When sentenced, Kasimov faces up to 30 years’ imprisonment.

“Dilkhayot Kasimov worked to support ISIS, including by collecting and giving money to another individual to fund his travel to join the terrorist group.  The jury has held Kasimov accountable for his crimes,” said Assistant Attorney General for National Security John C. Demers.  “The National Security Division is committed to help defend the nation against foreign terrorist groups and those who support them.  I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”

 “As found by the jury, Kasimov was part of a conspiracy in which he willingly and eagerly sought to help fund a foreign fighter’s travel and expenses in Syria to wage violent jihad,” stated United States Attorney Richard P. Donoghue for the Eastern District of New York.  “The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from those who would provide support of any kind to terrorists seeking to harm the United States and its allies.” 

“This verdict should serve as a warning to those who provide support of any kind to foreign terrorist organizations and their sympathizers,” stated FBI Assistant Director-in-Charge Sweeney.  “Kasimov joins a growing list of individuals facing significant jail time for their efforts to fund or carry out acts of terror.  The public should know that the FBI continues to make every effort to protect Americans at home and abroad, and we’ll continue to work with our international partners to mitigate the threat posed by terrorists and would-be terrorists worldwide.”

“This case highlights how vital our work is in intercepting and halting those among us who remain willing to support the terrorism that threatens innocent lives,” stated NYPD Commissioner O’Neill.  “It shows our commitment to remaining vigilant, with our law enforcement partners, against all forms of terrorist threats around the world and here at home.”

The evidence at trial established that Kasimov’s co-conspirators, Abdurasul Juraboev and Akhror Saidakhmetov, planned to travel to Syria to fight on behalf of ISIS, and Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses.  On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at Terminal 7 and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others. 

Co-conspirators Juraboev, Saidakahmetov and Habibov, as well as co-conspirators Akmal Zakirov and Azizjon Rakhmatov, have previously pleaded guilty.  Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment.  Habibov, Zakirov and Rakhmatov are awaiting sentencing.

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

Earlier today, at the federal courthouse in Brooklyn, Evon Stephens was sentenced by United States District Judge I. Leo Glasser to five years’ imprisonment following his guilty plea to setting fire to a vehicle in the parking garage attached to the Kings Plaza Shopping Center on September 17, 2018.  The amount of restitution will be determined by the Court at a later date.

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

In the early morning hours of September 17, 2018, Stephens was inside the parking garage before it was open to the public, attempting to get inside vehicles stored there by automobile dealerships.  At approximately 8:15 a.m., Stephens entered a Mercedes Benz and set fire to its interior.  The fire soon spread to vehicles throughout the parking garage, ultimately damaging 135 vehicles and injuring more than 25 individuals.  Surveillance cameras captured Stephens setting fire to the Mercedes Benz, and later running from the parking garage, stopping to make an obscene gesture with his hand toward the camera.

“With the prison sentence he received today, the defendant will be punished for setting a fire that spread to engulf over 100 vehicles, injuring innocent people in its path and endangering the first responders who brought it under control at risk to their own lives,” stated United States Attorney Donoghue.  Mr. Donoghue expressed his grateful appreciation to members of the New York City Police Department (NYPD) for their work on the case.

“The actions of the defendant caused massive amounts of damage to property and numerous injuries to first responders,” stated ATF Special Agent-in-Charge DeVito.  “Thanks to the great work of the ATF, NYPD and FDNY Arson and Explosive Task Force, this individual was quickly apprehended and punished for his crime. I would also like to thank the United States Attorney’s Office for their work in prosecuting this case.”

“This crime senselessly endangered the lives of FDNY members and the public, and caused tremendous property damage,” stated FDNY Commissioner Nigro. “I commend our Fire Marshals, and their colleagues at the ATF, for their outstanding investigative work that led to the apprehension and sentencing of this dangerous arsonist.”

Assistant United States Attorney Temidayo Aganga-Williams is in charge of the prosecution.

The Defendant:

EVON STEPHENS
Age: 23
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-539 (ILG)

An indictment was unsealed today in federal court in Brooklyn charging Howard Mora and Alan Buxbaum with conspiring to commit wire fraud in connection with a scheme to use counterfeit United States Department of Agriculture (USDA) stamps to misbrand USDA “Choice” beef products as higher quality USDA “Prime” and sell those products at inflated prices.  The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Bethanne M. Dinkins, Special Agent-in-Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), announced the charge.

Between September 2011 and October 2014, Mora and Buxbaum were co-owners of A. Stein Meat Products, Inc., a wholesale meat processing and distribution business located in Brooklyn.  As alleged in the indictment, the defendants purchased beef that had been graded “Choice” quality by graders employed by the USDA Agricultural Marketing Service and directed their employees to carve off the “Choice” markings and re-stamp them as “Prime,” using counterfeit stamps.  The meat was then sold at inflated prices to customers in the New York City metropolitan area.    

“Customers and consumers are entitled to get what they pay for, especially when the product is food on their tables,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will remain vigilant in enforcing laws that ensure the grade and quality of food products.” 

“The integrity of USDA’s food processing systems and the security of the nation’s food supply is of the utmost importance to the Office of Inspector General, and we will continue to dedicate resources to the investigation of matters where it is called into question.” Stated USDA-OIG Special Agent-in-Charge Dinkins.

The charge in the indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants each face a maximum of 20 years’ imprisonment.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Ryan Harris and Turner Buford are in charge of the prosecution.

The Defendants:

HOWARD MORA
Age: 67
Westbury, New York

ALAN BUXBAUM
Age:  65
Monroe, New Jersey

E.D.N.Y. Docket No. 19-CR-425 (KAM)

Today, a jury in Brooklyn returned a verdict finding Dilkhayot Kasimov, a citizen of Uzbekistan and resident of Brooklyn, guilty of conspiracy and of attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).  The verdict followed a one-week trial before United States District Judge William F. Kuntz, II.  When sentenced, Kasimov faces up to 30 years’ imprisonment.

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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the verdict.

“As found by the jury today, Kasimov was part of a conspiracy in which he  sought to help fund a foreign fighter’s travel and expenses in Syria to wage violent jihad,” stated United States Attorney Donoghue.  “The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from those who would provide support to terrorists seeking to harm the United States and its allies.”  Mr. Donoghue expressed his grateful appreciation to Homeland Security Investigations, New York Field Office, for its assistance during the investigation.

“Dilkhayot Kasimov worked to support ISIS, including by collecting and giving money to another individual to fund his travel to join the terrorist group,” stated Assistant Attorney General Demers.  “The jury has held Kasimov accountable for his crimes.  The National Security Division is committed to help defend the nation against foreign terrorist groups and those who support them.  I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”

“This verdict should serve as a warning to those who provide support of any kind to foreign terrorist organizations and their sympathizers,” stated FBI Assistant Director-in-Charge Sweeney.  “Today, Kasimov joins a growing list of individuals facing significant jail time for their efforts to fund or carry out acts of terror.  The public should know that the FBI continues to make every effort to protect Americans at home and abroad, and we’ll continue to work with our international partners to mitigate the threat posed by terrorists and would-be terrorists worldwide.”

“This case highlights how vital our work is in intercepting and halting those among us who remain willing to support the terrorism that threatens innocent lives,” stated NYPD Commissioner O’Neill.  “It shows our commitment to remaining vigilant, with our law enforcement partners, against all forms of terrorist threats around the world and here at home.”

The evidence at trial established that Kasimov’s co-conspirators, Abdurasul Juraboev and Akhror Saidakhmetov, planned to travel to Syria to fight on behalf of ISIS, and Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses.  On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at Terminal 7 and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others. 

Co-conspirators Juraboev, Saidakahmetov and Habibov, as well as co-conspirators Akmal Zakirov and Azizjon Rakhmatov, have previously pleaded guilty to the conspiracy to provide material support to ISIS.  Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment.  Habibov, Zakirov and Rakhmatov are awaiting sentencing.

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

The Defendant:

DILKHAYOT KASIMOV
Age:  31
Brooklyn, New York

E.D.N.Y. Docket No. 15-CR-95 (S-3)(WFK)

John Scarpa, Jr., a criminal defense attorney, was sentenced today in federal court in Brooklyn to 30 months’ imprisonment and fined $10,000 by United States District Judge Carol Bagley Amon for bribing a witness to commit perjury in a double homicide trial in Suffolk County Supreme Court.  Scarpa was convicted following a four-day trial in May 2019.  Scarpa, who will be disbarred, had been practicing law in New York since 1982, and was a prosecutor at three district attorneys’ offices in the metropolitan area before entering private practice in 2003.

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), announced the sentence.

 “As a defense attorney and former prosecutor, Scarpa was sworn to uphold the law he so egregiously subverted,” stated United States Attorney Donoghue.  “Scarpa went from practicing law to breaking the law and will now pay a price for his crime.”  Mr. Donoghue thanked the Queens County District Attorney’s Office for its assistance during the investigation.

As proven at trial, Scarpa plotted with co-conspirator Charles Gallman to bribe a convicted murderer, Luis Cherry, to testify in support of Scarpa’s client, who was charged with the execution-style murders of two men.  Cherry then falsely testified at trial that he alone committed the second of the two murders, and that Scarpa’s client was innocent.  In exchange for his testimony, Scarpa and Gallman promised to help Cherry with the appeal of his own murder conviction, and to spread word in the prison system that Cherry was not a government informant.   Despite the false testimony, the trial judge found Scarpa’s client guilty of both murders.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Keith D. Edelman are in charge of the prosecution.

The Defendant:

JOHN SCARPA, JR.
Age:  66
Hauppauge, New York

E.D.N.Y. Docket No. 18-CR-123(S-1) (CBA)

Earlier today, in federal court in Central Islip, an indictment was unsealed charging Benjamin Conde, Chief Executive Officer of Essex Global Investments and President of Facultas Capital Management, and Lawrence Isen, the owner of Marketbyte, LLC, a purported stock promotion firm, with conducting a “pump and dump” scheme to defraud investors in Renewable Energy and Power, Inc. (RBNW).  ​The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering and substantive securities fraud.  The defendants were arrested this morning and Conde will be arraigned this afternoon before United States District Judge Joanna Seybert at the United States Courthouse in Central Islip.  Isen’s appearance for removal to the Eastern District of New York is scheduled for this afternoon at the federal courthouse in San Diego, California.       

​​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), announced the charges.

“As alleged, Conde and Isen joined forces with a ‘boiler room’ crew to defraud investors, many of them elderly, and enrich themselves at the expense of their victims,” stated United States Attorney Donoghue.  “The Department of Justice has made it a priority to hold accountable those who use our financial markets as a venue to lie, cheat and steal.”  Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation. 

​​As alleged in the indictment, between March 2017 and July 2017, Conde and Isen hired a purported financial services business in Melville, New York, known by a number of names including My Street Research, that operated as a high pressure “boiler room.”  The boiler room engaged in a pump and dump scheme to defraud investors in RBNW.  As part of the scheme, the defendants and their co-conspirators artificially controlled the price and volume of traded shares and made misrepresentations to victim investors, many of whom were senior citizens, relating to the advisability of purchasing RBNW stock and its profitability.  The scheme generated over $3.1 million in trading profits for the defendants and their co-conspirators and losses for the victim investors when the stock price plummeted.

The defendants attempted to conceal the scheme by laundering approximately $2.8 million in fraudulently obtained proceeds.

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

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

The Defendants:

BENJAMIN CONDE
Age: 56
Fairfield, New Jersey

LAWRENCE ISEN
Age: 66
San Diego, California

E.D.N.Y. Docket No. 19-CR-432 (JS)

Scott Allan Smith was arraigned today before United States District Judge Raymond J. Dearie on an indictment charging him with threatening to murder the former state prosecutor who handled his criminal case.  Smith was arrested on a complaint on August 6, 2019, and was remanded pending trial.  If convicted, Smith faces up to five years’ imprisonment.

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), announced the charges. 

“As alleged, six months after he was released from prison, the defendant began threatening to kill the former state prosecutor who had handled a criminal case against him,” stated United States Attorney Donoghue.  “Threats against members of the criminal justice system who work to protect our communities will never be tolerated and those who commit such crimes will face the consequences.”

“A threat against anyone's life is unacceptable.  However, when you threaten the life of an official who was representing the public and enforcing the law on behalf of law abiding citizens, as we allege Mr. Smith did here, you are attacking all of society,” stated FBI Assistant Director-in-Charge Sweeney.  “The consequence is prison, something Mr. Smith knows all too well.”

As alleged in court filings and proceedings, Smith was sentenced in Missouri to seven years in prison in October 2015 after pleading guilty to assault and felony restraint.  Smith was released from the custody of the Missouri Department of Corrections on February 22, 2019.

On or about August 3, 2019, Smith called the former Callaway County, Missouri prosecutor in his criminal case and stated, in sum and substance, “You remember me, don’t you?  I just want to tell you, you are about to die.” 

Later that day, Smith sent the victim a series of threatening text messages, stating, in part, “5 years I’ve been waiting for what’s about to happen.  I’ve fantasized about it every single night for years…  My life for your life” and “I am a martyr for this.”

The defendant then concluded with a voicemail left on the victim’s telephone, stating he would “get the needle,” make “national news” and “every prosecutor in the United States would think twice about telling a lie in this country.”

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

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

The Defendant:

SCOTT ALLAN SMITH
Age:  38
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-421 (RJD)

Santos Roman Narvaez Ansazoy will be arraigned this afternoon before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn on charges of leading a continuing criminal enterprise.  The defendant was arrested in Colombia on a provisional arrest warrant and was extradited yesterday from Colombia to the United States.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Raymond P. Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, James P. O’Neill, Commissioner, New York City Police Department (NYPD), and  Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the extradition.

“The defendant will now face charges in an American courtroom for leading a major Colombian drug trafficking organization that imported huge quantities of cocaine into the United States,” stated United States Attorney Donoghue.  “We will cooperate with law enforcement here and abroad to dismantle drug rings that flood our streets and neighborhoods with lethal drugs.”  Mr. Donoghue extended his grateful appreciation to the assistance provided by DEA’s offices in Bogota, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Colombian National Police and the Government of Colombia.

“For years, Roman Narvaez Ansazoy allegedly participated in a conspiracy to facilitate the distribution of multi-ton quantities of cocaine throughout the United States,” stated DEA Special Agent-in-Charge Donovan.  “Ansazoy’s arrest and extradition demonstrate the commitment of the United States and our partners in Colombia to bring to justice drug traffickers who fuel narco-terrorism and seek to flood our streets with addictive and deadly poisons.”

“I commend the members of the Task Force for their outstanding work on this case. All of the agencies involved are committed to taking down any criminal enterprise that imports these dangerous drugs into our county, and we will continue to collaborate on that mission. We simply will not tolerate this type of activity,” stated NYSP Superintendent Corlett.

According to the indictment, Narvaez was a founder and principal leader of a drug trafficking organization in Colombia responsible for producing multi-ton quantities of cocaine, on a monthly basis, in jungle laboratories in the Cauca region of Colombia.  The cocaine was then transported to Colombian ports on the Pacific coastline under the protection of paramilitary groups paid by Narvaez, including the Revolutionary Armed Forces of Colombia (FARC), a designated Foreign Terrorist Organization.  The cocaine was then shipped by sea, primarily to the United States.

The extradition of Narvaez is the result of an ongoing investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the United States Attorney’s Office for the Eastern District of New York and the DEA.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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

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

The Defendant:

SANTOS ROMAN NARVAEZ ANSAZOY (also known as “Roman Narvaez Ansazoy”)
Age:  45
Cauca, Colombia

E.D.N.Y. Docket No. 14-CR-048 (S-1) (BMC)

A complaint was unsealed earlier today in federal court in Brooklyn charging Steven Nerayoff and Michael Hlady with extortion.  Nerayoff, an attorney, and Hlady threatened to destroy a startup cryptocurrency company if they were not paid millions of dollars in the cryptocurrency Ether (ETH).  Nerayoff was arrested this morning, and will make his initial appearance this afternoon before United States Magistrate Judge Steven L. Tiscione.  Hlady was arrested this morning in Rhode Island, and will make his initial appearance this afternoon in federal court in Providence. 

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 (FBI), New York Field Office, announced the charges.

“As alleged, Nerayoff and Hlady carried out an old-fashioned shakedown, to be paid off with 21st century cryptocurrency,” stated United States Attorney Donoghue.  “This Office and our partners at the FBI are committed to protecting businesses from extortion, whether the demands are for U.S. dollars or cryptocurrency.” 

“When you peel back the layers of this case, an age-old extortion scheme is revealed with a modern day twist,” stated FBI Assistant Director-in-Charge Sweeney.  “Imposing forceful demands on a company for personal gain is risky business, whether one's preference is to be paid off with cryptocurrency or cold hard cash. The FBI will continue to seek justice for victims who businesses have been targeted by these types of scams.”

The victim company, headquartered in Seattle, Washington, is a startup mobile-based business that specializes in generating user traffic to clients’ products by issuing its own cryptocurrency tokens as loyalty rewards.  In November 2017, the company planned an Initial Coin Offering (ICO) to raise capital, and signed an agreement with an entity operated by Nerayoff.  Under the agreement, Nerayoff agreed to help the company complete a successful ICO in return for 22.5% of all funds raised, and 22.5% of the issued cryptocurrency tokens.  Just days before the ICO was to occur, Nerayoff told executives of the company that his compensation would have to be increased by approximately 17,000 ETH to 30,000 ETH (worth approximately $8.75 million at the time), or he would sabotage the ICO and destroy the company.  The company paid Nerayoff as demanded, despite not receiving any additional services. 

Subsequently, Nerayoff introduced the executives to Hlady, who used the alias “Michael Peters” and who Nerayoff described as his “operations guy.”  Hlady told the executives that he had been part of the Irish Republican Army, the National Security Agency, the Central Intelligence Agency and the FBI, and that he had “taken down” a head of state.  In March 2018, Nerayoff and Hlady threatened one of the executives with destruction of the company if not paid additional funds and company tokens.  Later that month, Nerayoff demanded a purported loan of 10,000 ETH (worth approximately $4.45 million at the time), and Hlady followed up with a text message to the executive stating, “I promise I will destroy your community” if Nerayoff’s demands are not met.  The company then transferred 10,000 ETH to Nerayoff.  The  “loan” was never repaid.   

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

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Mark E. Bini and Andrey Spektor are in charge of the prosecution. 

The Defendants:

Steven Nerayoff
Age:  48
Great Neck, New York

Michael Hlady (also known as “Michael Peters”)
Age:  47
East Greenwich, Rhode Island

E.D.N.Y. Docket No. 19-MJ-830

Timothy Gregg, the former Provisional Supervisor of Facilities for the Hempstead School District, pleaded guilty today at the federal courthouse in Central Islip to access device fraud in connection with his misuse of a school district credit card.  The plea was entered before United States District Judge Joanna Seybert.  When sentenced, Gregg faces up to 15 years in prison, as well as forfeiture and a fine of up to $250,000.

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), Thomas P. DiNapoli, Comptroller, Office of the New York State Comptroller, and Madeline Singas, District Attorney, Nassau County District Attorney’s Office, announced the guilty plea.

As described in court filings and the plea proceeding, Gregg was the Chief of Facilities at the Hempstead School District from 2016 to 2018.  In that capacity, Gregg was authorized to use a school district credit card for purchases for the school district.  Instead, Gregg allowed a local contractor to use the credit card for his own personal purchases at Home Depot, in exchange for kickbacks to Gregg of cash and materials exceeding $50,000 in value.

“Today’s guilty plea of former Hempstead School District official Timothy Gregg drives home an important lesson: corrupt officials who abuse their position to enrich themselves will be prosecuted to the fullest extent of the law,” stated United States Attorney Donoghue.  Mr. Donoghue expressed his grateful appreciation to the United States Department of Education Office of Inspector General for their assistance during the investigation.

“Mr. Gregg abused the public's trust by using taxpayer dollars to fund his personal home improvement projects. Such corruption must not be tolerated and my office assisted in exposing this abuse,” stated Comptroller DiNapoli. “Thanks to our partnership with U.S. Attorney for the Eastern District of New York Donoghue, Nassau County District Attorney Singas, Assistant Director-in-Charge Sweeney, Jr., of the FBI's New York Field Office and the U.S. Department of Education Office of Inspector General, Mr. Gregg will now have to account for his crimes.”

"The defendant used a school board-issued credit card for home improvement projects and allowed a contractor to freely utilize that credit card for kickbacks,” stated Nassau County District Attorney Singas. “This plea sends a strong message that corrupt local officials will be held accountable for stealing taxpayer money.”

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

The Defendant:

TIMOTHY GREGG
Age:  49
Uniondale, New York

E.D.N.Y. Docket No. 19-368 (JS)

 

 

Taheem Smith, a member of the Bloods street gang, was arraigned this afternoon before United States Magistrate Judge Gary R. Brown in federal court in Central Islip on an 11-count indictment charging him with racketeering, murders in aid of racketeering of David Arzu and Janelle Curella, robbery, firearms charges and narcotics possession and distribution.  Smith was arrested yesterday and was ordered remanded pending trial by Magistrate Judge Brown.

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 Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges. 

“As alleged, the defendant murdered an innocent man and woman to increase and maintain his own standing in the ruthless Bloods street gang,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue working unrelentingly to end the violent careers of gang members like Smith and decimate gangs like the Bloods to which they belong.”  Mr. Donoghue expressed his appreciation to the FBI’s Long Island Gang Task Force for their work on the case.

"Violent gangs believe they can act with impunity, as if their actions don't impact innocent people,” stated FBI Assistant Director-in-Charge Sweeney.  “Mr. Smith allegedly killed two people just to rob them.  No amount of money is worth a human life.  Our FBI Long Island Gang Task Force and law enforcement partners continue our determination to stop all illegal gang activity from destroying the peace in communities, and bring the members and leadership to justice.”

“It is alleged that just over three years ago, Smith murdered two during a robbery on a Bay Shore street.  As a member of the Bloods gang, Smith’s proclivity for weapons, violence and drugs regularly spilled out into our Long Island neighborhoods,” stated HSI Special Agent-in-Charge Fitzhugh.  “Partnerships among law enforcement continues to be paramount in gang investigations because our communities can no longer tolerate the volatility associated with criminal gangs.”

“These charges levied upon Mr. Smith today exemplify our commitment to apprehending those who act on such violence and prey on those who are vulnerable,” stated SCPD Commissioner Hart.  “We will continue to work with the Eastern District of New York and our law enforcement partners on all levels to dismantle gang activity and rid our communities of illicit drugs and unlawful behavior.” 

As alleged in the indictment and court filings and proceedings, on the evening of September 2, 2016, David Arzu, Janelle Curella and two friends were walking toward the Long Island Railroad Station in Bay Shore.  Smith and his co-conspirator approached the group, brandished firearms, and demanded the victims’ money and valuables.  During a struggle, Arzu and Curella were shot.  They died of their wounds a short time later.

The charges in the indictment are allegations, and the defendant is presumed to be innocent unless and until proven guilty.  If convicted, Smith faces up to a maximum sentence of life 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.  The Department of Justice reinvigorated PSN in 2017 as part of the 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 Long Island Criminal Division.  Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek are in charge of the prosecution.    

The Defendant:

TAHEEM SMITH (also known as “Ta”)
Age: 25
Farmingville, New York

E.D.N.Y. Docket No. 19-CR-417 (ADS)

Geoffrey Girnun, an Associate Professor in the Department of Pathology and Director of Cancer Metabolomics at the Renaissance School of Medicine at Stony Brook University (“SBU”) was charged in a seven-count indictment unsealed today with theft of state and federal government funds, wire fraud and money laundering.  Girnun allegedly submitted fraudulent invoices for research equipment to SBU from sham companies he created to conceal his theft of funds from cancer-related research grants issued by the National Institutes of Health (“NIH”) and SBU. Girnun was arrested this morning and is scheduled to be arraigned this afternoon in federal court in Central Islip before United States Magistrate Judge Arlene R. Lindsay.

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 Scott J. Lampert, Special-Agent-in-Charge, Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the charges.

According to the indictment, in or about 2013 and 2017, Girnun formed shell companies Atlas Metabolomics, LLC (“Atlas”) and Empyrean Biosciences, LLC (“Empyrean”), which purportedly provided research items and equipment for the defendant’s cancer-related research projects.  Girnun then submitted fraudulent electronic invoices to SBU for payment to the companies for equipment, goods and services that were never received or provided.  SBU used NIH and SBU grant funds to pay the shell companies over $200,000.  Girnun transferred the NIH and SBU grant funds into his personal bank accounts and used the funds for personal expenses, including payments toward the mortgage on his home.

“Professor Girnun’s alleged theft of federal and state grant funds earmarked for cancer research can be explained in two words: pure greed,” stated United States Attorney Donoghue.  “He will now be held to account in a federal courtroom.”

“As millions of Americans place their faith in programs established to fund cancer-related research, Geoffrey Girnun, a professor, allegedly siphoned money from grant funds established for this very purpose,” stated FBI Assistant Director-in-Charge Sweeney.  “While people continued to suffer from their illnesses, Girnun made payments toward his personal mortgage with the money he stole. His conduct is despicable, and it won’t be tolerated.”

“Taxpayers fund medical research with the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients.  Because the money for medical research is limited and the need for scientific advances is great, it’s incredibly important to clamp down on those who would steal such grant money for personal gain,” stated HHS-OIG Special Agent-in-Charge Lampert.  “Professor Girnun will face the consequences of his actions.”     

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

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

The Defendant:

GEOFFREY GIRNUN
Age: 48
Woodmere, New York

E.D.N.Y. Docket No. 19-CR-416 (DJH)

Earlier today, in federal court in Central Islip, Ronald Hardy, a manager at Power Traders Press, My Street Research and predecessor companies located in Melville, New York (the “boiler room”), and Dennis Verderosa, a cold-caller and account executive at the boiler room, were sentenced by United States District Judge Joanna Seybert to 10 and six years’ imprisonment, respectively, for their participation in a $147 million scheme that defrauded investors in publicly traded companies.  Hardy was also ordered to forfeit the contents of a bank account and two properties he owned in Sarasota, Florida, and Verderosa was ordered to pay $341,883 in forfeiture.  The amount of restitution to be paid by the defendants will be determined by the court at a later date.  Hardy pleaded guilty in August 2018 to conspiracy to commit securities fraud, conspiracy to commit wire fraud, substantive securities fraud and money laundering, and Verderosa pleaded guilty in April 2018 to conspiracy to commit wire fraud. 

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), announced the sentences.

“Hardy and Verderosa have been punished for luring vulnerable victims, many of them in their 70s, 80s and 90s, into a web of lies in order to steal their life savings,” stated United States Attorney Donoghue.  “This Office will continue working tirelessly with our law enforcement partners to protect investors from calculating con-men.”

Between January 2014 and July 2017, Hardy, Verderosa and 14 co-defendants participated in a scheme that defrauded investors in publicly traded companies by artificially inflating the price and trading volume of stock of the companies, and making misrepresentations in their communications with victim investors concerning the advisability of purchasing the stock and its potential profitability. The defendants, some of whom controlled stock in the manipulated companies, profited while the victim investors lost millions of dollars when the stock prices plummeted.  Taped to the wall of the boiler room where the cold callers made these misrepresentations was a sign that read, “WE’LL POUND THE PHONE AND WITH A LITTLE BIT OF LUCK, WE’LL MAKE A TON OF MONEY AND WON’T GIVE A F---.” 

Ten co-defendants have pleaded guilty and are awaiting sentencing.  Four others are scheduled for trial.

Previously, co-defendant Emin Cohen was sentenced to two years’ imprisonment and McArthur Jean to four years’ imprisonment for their roles in the scheme.  

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 Civil Division is handling the forfeiture aspect of the case. 

Defendants Sentenced Today:

RONALD HARDY
Age:  42
Port Jefferson, New York

DENNIS VERDEROSA
Age:  67
Coram, New York

Defendants Previously Sentenced:

EMIN L. COHEN (also known as “Ian Grant”)
Age:  33
Coram, New York

MCARTHUR JEAN (also known as “John McArthur”)
Age:  34
Dix Hills, New York

E.D.N.Y. Docket No. 17-CR-372-10 (JS)

 

An 18-count third superseding indictment was filed today in federal court in Brooklyn, charging three members of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, variously with racketeering, murder, attempted murder, murder conspiracy, robberies and related firearms charges.  Among the offenses added in the third superseding indictment are murder charges against Melvi Amador-Rios, Josue Leiva and new defendant Luis Rivas for the May 16, 2017 fatal stabbing of 16-year-old-Julio Vasquez in Queens.  The defendants 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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.

“The superseding indictment alleges multiple murder conspiracies, including a kill-or-be-killed plot culminating in the brutal murder of a teen victim who was stabbed to death for not carrying out a lethal order himself,” stated United States Attorney Donoghue.  “The mindless violence embodied by MS-13 presents extreme danger to our communities and underscores the resolve of this Office, together with our law enforcement partners, to eradicate the gang.”

“MS-13 traffics in violence for no other reason than to use mortal fear as a way to control people and territory,” stated FBI Assistant Director-in-Charge Sweeney.  “They have no regard for life, and anyone who shows any kind of normal human empathy pays the ultimate price.  The FBI New York Safe Streets Task Forces in Queens and Long Island have not let up on our determination to eradicate this gang from our communities.”

“This case provides an illustration of the extreme violence of gangs and their members,” stated NYPD Commissioner O’Neill. “And it’s why the NYPD and its law enforcement partners aggressively pursue those who commit violent crimes and put safe communities at risk. I want to thank the FBI and the Eastern District for their work to bring today’s federal indictments against three violent gang members.”

According to court filings, Amador-Rios, Leiva and Rivas are members of the Centrales Locos Salvatruchas (“CLS”) clique of MS-13.  In early 2017, Amador-Rios, the leader of the CLS clique, authorized the murder of an individual referred to in the indictment as John Doe 2, a chequeo, or low-level MS-13 member, who was suspected of associating with a rival gang.  Subsequently, Amador-Rios suspected that another chequeo, John Doe 3, had warned John Doe 2 that the clique intended to kill him.  Amador-Rios then ordered the murder of John Doe 3, and Vasquez, also a CLS chequeo, was tasked with the killing.  After Vasquez failed to kill John Doe 3, and because he was also suspected of cooperating with law enforcement, Amador-Rios ordered the killing of Vasquez.  On May 16, 2017, Vasquez was lured to a wooded area of Alley Pond Park where Leiva and Rivas stabbed him multiple times, killing him.  Vasquez’s body was discovererd on May 21, 2017.

The superseding indictment also adds a robbery charge and associated firearms offense against Amador-Rios and Rivas.  On January 8, 2017, they allegedly robbed a money transfer business in Jamaica at gunpoint, and pistol-whipped an employee.

The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants face life in prison.

Today’s superseding indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members 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 including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.

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

The Defendants:

MELVI AMADOR-RIOS (“Letal” and “Pinky”)
Age: 28
Briarwood, New York

JOSUE LEIVA (“Colocho”)
Age: 22
Jamaica, New York

LUIS RIVAS (“Inquieto” and “Kiko”)
Age: 24
Jamaica, New York

E.D.N.Y. Docket No. 18-CR-398 (S-3) (RRM)

Earlier today, a complaint was unsealed in federal court in Brooklyn charging eight defendants, Ezhil Sezhian Kamaldoss, Harpreet Singh, Parthiban Narayanasamy, Baljeet Singh, Deepak Manchanda, Gulab Gulab, Mukul Chugh and Vikas M. Verma with conspiring to possess with intent to distribute a controlled substance containing Tramadol, a synthetic opioid.  The defendants were arrested this morning, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Lois Bloom. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York; Mark McCormack, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office (FDA-OCI); Todd A. Wickerham, Special Agent-in-Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI);  Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS); John Eisert, Special Agent-in-Charge, Homeland Security Investigations (HSI), Baltimore Field Office; Peter C. Fitzhugh, Special Agent-in-Charge, HSI, New York Field Office; Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP); and Brian D. Boyle, Special Agent-in-Charge, Drug Enforcement Administration, New England Field Office (DEA), announced the charges.   

Since approximately January 2018, law enforcement agents with FDA-OCI,  USPIS, HSI, CBP, DEA, FBI and other agencies have been investigating the large-scale importation of misbranded controlled substances, including Tramadol, into the United States from India.  As part of the defendants’ scheme, distributors in India shipped misbranded Tramadol and other drugs to individuals and entities in the United States through the U.S. mail and other commercial couriers.  The defendants primarily operated out of a warehouse in Queens where they repackaged the pills and mailed them to customers throughout the United States.  The defendants maintained daily ledgers detailing the names, addresses, pill size and pill amounts ordered by customers.  During the course of the investigation, the defendants distributed millions of Tramadol pills.   

Ezhil Sezhian Kamaldoss is also charged with money laundering.    

“As alleged, the defendants participated in a black market for prescription medications by distributing millions of opioid pills in tens of thousands of transactions in one year alone,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue to vigorously investigate and prosecute those who profit from the suffering wrought by opioid distribution in the United States.”  Mr. Donoghue expressed his appreciation to the United States Attorneys’ Offices for the District of Maryland, the District of Massachusetts and the Southern District of Ohio for their assistance in the case.

“The illegal manufacture and distribution of opioids can result in overdoses and deaths, further fueling the national crisis,” stated FDA Special Agent-in-Charge McCormack.  “The FDA is committed to disrupting and dismantling illegal prescription drug distribution networks, including those that import unapproved drugs from overseas, and distribute those drugs with reckless disregard of the risk to public health.”

“The importation of mislabeled drugs is both dangerous and illegal,” stated FBI Special Agent-in-Charge Wickerham. “It contributes to the ongoing opioid crisis in our nation and causes harm to our communities.”

“Postal Inspectors are always at the forefront in protecting communities from the scourge of illegal drugs, no matter how they enter this country, and today’s arrests are a shining example of our commitment to keep the public safe,” stated USPIS Inspector-in-Charge Bartlett.

“These individuals chose greed and profit at the cost of human lives. HSI is committed to investigating and ending these kinds of drug trafficking schemes to keep opioids off our streets,” stated HSI Special Agent-in-Charge Eisert.

“American communities continue to be plagued by synthetic opioids, often at the hands of dealers like those accused in this investigation,” stated HSI Special Agent-in-Charge Fitzhugh.  “HSI is committed to aggressively targeting every level of the opioid supply chain, from the overseas vendors to the street-level dealers, in an effort to end this crisis.”

“This case serves as a great example of collaborative law enforcement efforts to combat international opioid trafficking conspirators.  U.S. Customs and Border Protection thanks our partners at FBI, FDA, USPIS, HSI and DEA for their continued cooperation,” stated CBP Director of Field Operations Miller.

“DEA is addressing the threat of opioids, both internationally and domestically.  We prioritize our resources by identifying and targeting the world’s biggest and most powerful drug traffickers and their organizations,” stated DEA Special Agent-in-Charge Boyle.  “The diversion of prescription pain killers contribute to the widespread abuse of opioids which is a gateway to addiction and is devastating our communities.  DEA will continue to collaborate with our federal, state and local law enforcement partners to hold accountable those who are fueling this epidemic.”

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, Ezhil Sezhian Kamaldoss faces up to 25 years’ imprisonment.  The remaining defendants each face up to five years’ imprisonment.

First Assistant United States Attorney Mark Lesko and Assistant United States Attorneys Nicholas J. Moscow, Temidayo Aganga-Williams and Andrew D. Grubin are in charge of the prosecution.  Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.

The Defendants:

MUKUL CHUGH
Age:  24
Long Island City, New York

GULAB GULAB
Age:  45
Richmond Hill, New York

EZHIL SEZHIAN KAMALDOSS (also known as Kamaldoss Sezhian,” “Kamal Doss” and “Ezhil Cezhian”)
Age:  46
Richmond Hill, New York

DEEPAK MANCHANDA
Age:  43
Deer Park, New York

PARTHIBAN NARAYANASAMY (also known as “Pat”)
Age:  58
Jamaica, New York

BALJEET SINGH (also known as “Sunny”)
Age:  29
Richmond Hill, New York

HARPREET SINGH (also known as “Vicky Singh”)
Age:  28
Plainview, New York

VIKAS M. VERMA
Age:  45
Dix Hills, New York

E.D.N.Y. Docket No. 19-MJ-793 (RLM)

Earlier today, at the federal courthouse in Central Islip, Kwesi Bovell, the former chief financial officer (CFO) of The Mulholland Group, a real estate company in Manhasset (Mulholland), pleaded guilty to one count of wire fraud in connection with his embezzlement of millions of dollars from his employer over the course of three years.  The plea was entered before United States Magistrate Judge Gary R. Brown.  When sentenced, Bovell faces up to 20 years in prison, as well as restitution and a fine.

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), announced the guilty plea.

As described in court filings and as admitted during his guilty plea, Bovell was hired in 2015 as CFO of Mulholland, and was given signature authority over numerous bank accounts of the company and its subsidiaries.  Over the next three years, Bovell fraudulently transferred over $3.5 million from Mulholland to his own company, Southgate Holding, LLC.  Bovell used the stolen funds to support two laundromats and a fitness center that he owned and to purchase luxury goods.

“With today’s guilty plea, Bovell has been held responsible for betraying his employer’s trust by stealing millions of dollars to benefit himself, from the time he was hired until the discovery of his fraud,” stated United States Attorney Donoghue. 

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

The Defendant:

KWESI BOVELL
Age:  36
Valley Stream, New York

E.D.N.Y. Docket No. 18-571 (JMA)

An indictment was unsealed today in federal court in Brooklyn charging Iskyo Aronov, Michael Konstantinovskiy, Tomer Dafna, Avraham Tarshish and Michael Herskowitz with conspiracy to commit wire fraud and bank fraud, and related wire fraud counts, in connection with a scheme to defraud mortgage lenders, including the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and borrowers.  Konstantinovskiy, Dafna, Tarshish and Herskowitz were arrested this morning in New York, and will be arraigned this afternoon before United States Magistrate Judge Lois Bloom.  Aronov was arrested in Florida, and will appear this afternoon for a removal hearing at the federal courthouse in Miami. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Robert Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region (FHFA-OIG), and Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), announced the charges.

According to the indictment, between December 2012 and January 2019, the defendants conspired to defraud mortgage lenders, misleading them into approving short sale transactions at fraudulently depressed prices.  In a short sale, with the approval of the mortgage lender or servicer, a mortgage loan borrower sells his or her property for less than the outstanding balance of the mortgage loan.  The proceeds from the short sale, less approved closing costs, are applied to the outstanding mortgage loan balance owed to the lender, who typically agrees to forgive the borrower’s remaining mortgage loan balance.  Here, the defendants fraudulently manipulated the short sale process by transferring properties for prices well above the short sale prices, and failing to disclose this to the mortgage lenders and servicers.  The defendants also took steps to preclude other prospective purchasers from making higher offers for properties by failing to market properties as required by the lenders, and by filing fraudulent liens on properties.  

As a further part of the scheme, the defendants provided the mortgage lenders and servicers with false and misleading information in transaction documents and failed to disclose either payments made to the borrower and others related to short sale or contemporaneous agreements to transfer the properties at inflated prices.  Many of the affected mortgage loans were insured by the Federal Housing Administration, or owned or guaranteed by Fannie Mae or Freddie Mac. 

“As alleged, the defendants defrauded mortgage loan holders out of millions of dollars, with taxpayers saddled with much of the loss,” stated United States Attorney Donoghue.  “This Office will continue working with our law enforcement partners to vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of the financial institutions and government programs that insure or guarantee the loans.”  Mr. Donoghue thanked the United States Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), the HSI El Dorado Financial Crimes Task Force and the Internal Revenue Service, Criminal Investigation, New York, for their assistance in the ongoing investigation.

“Together with our partners in law enforcement, we have disrupted a scheme to defraud Fannie Mae and Freddie Mac. As demonstrated by this indictment, FHFA-OIG will investigate and hold accountable those who seek to victimize the government-sponsored entities supervised and regulated by FHFA,” stated FHFA-OIG Special Agent-in-Charge Manchak.    

“These five individuals allegedly engaged in a scheme of wholesale deception when they provided false, misleading, and incomplete information to lending institutions, borrowers, and the Federal Housing Administration (FHA) causing millions of dollars in damages to the FHA, which typically results in higher premiums being charged to future first-time homeowners,” stated HUD-OIG Special Agent-in-Charge Scaringi.  “What makes their alleged crimes even more egregious was their artificial devaluation of properties that, when resold or ‘flipped,’ resulted in large profits.  Many of these homes were located in economically challenged areas of New York where affordable housing is at a premium.”

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants each face a maximum of 30 years’ imprisonment and a $1 million fine.

The case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Shannon C. Jones is in charge of the prosecution.  Assistant United States Attorney Tanisha Payne of the Office’s Civil Division is handling forfeiture matters.

The Defendants:

ISKYO ARONOV (also known as “Isaac Aronov”)
Age:  32
Miami, Florida

Michael Konstantinovskiy (also known as “Michael Kay”)
Age:  33
Rego Park, Queens

Tomer Dafna
Age:  48
Great Neck, New York

Avraham Tarshish (also known as “Avi Tarshish”)
Age:  40
Queens Village, New York

Michael Herskowitz
Age:  40
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-408 (SJ)

Richard Luthmann, an attorney licensed by the State of New York, was sentenced today by United States District Judge Jack B. Weinstein to four years’ imprisonment for his convictions on one count of wire fraud conspiracy and one count of extortion conspiracy. Luthmann was also ordered to pay $500,000 in restitution and $130,000 in forfeiture.  Luthmann pleaded guilty to the charges on March 18, 2019. 

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 Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, announced the sentence. 

“With today’s sentence, Luthmann has been held accountable for using his law practice as a launching pad for his schemes to defraud businesses in the United States and abroad, and to extort a former client, all for the purpose of lining his pockets,” stated United States Attorney Donoghue.  Mr. Donoghue extended his appreciation to the Department of Homeland Security, Homeland Security Investigations, the New York City Police Department and the Social Security Administration for their assistance in the investigation. 

“Our legal system works because everyone believes attorneys are going to be honest brokers of justice.  Mr. Luthmann’s actions, defrauding and extorting his victims, chip away at the foundations of that system and cannot be tolerated,” stated FBI Assistant Director-in-
Charge Sweeney.  “The FBI New York Joint Organized Crime Task Force did an outstanding job in this investigation stopping a criminal who thought he could use his knowledge of the law to skirt it.”

“This successful prosecution is the result of outstanding collaborative efforts by the Office of Export Enforcement, the FBI, the Justice Department and our other law enforcement partners,” stated Department of Commerce Special Agent-in-Charge Carson.  “Engaging in export fraud scams and falsifying export records are matters we take seriously.  We will continue to pursue violators who jeopardize fair and secure trade.”

In the summer of 2015, Luthmann and his co-conspirators formed multiple shell companies, ostensibly to sell scrap metal and recycled products to U.S. and foreign customers.  Rather than conducting legitimate scrap metal businesses, the conspirators deceived customers by contracting to sell them scrap metal, receiving payment on their orders and then intentionally failing to make delivery of the material.  After an aggrieved customer threatened to report Luthmann and his co-conspirators to the police, the conspirators changed tactics and began shipping worthless filler materials, including concrete and road barriers to customers who had contracted to buy valuable copper and other scrap metal.  In the course of a few months in 2015, Luthmann and his co-conspirators made more than $500,000 in fraudulent sales. 

In an effort to conceal the fraudulent scheme, Luthmann registered the shell companies with the New York Department of State, recruited a client of his law practice, who was blind and living on public assistance, to be the nominal president of one of the shell companies and directed payments from the fraudulent sales through his law firm’s accounts.  Luthmann and his co-conspirators then split the fraud proceeds at Luthmann’s law office. 

In December 2016, Luthmann and his co-conspirators began an extortion scheme directed at one of his former clients, who had participated in the scrap metal fraud.  Luthmann invited the former client to meet at his law office in Staten Island, ostensibly to sign legal paperwork.  Luthmann was not present when the former client arrived, but two of his co-conspirators were.  One of them threatened the former client with what appeared to be a handgun and demanded the $10,000 owed.

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

The Defendant:

Richard Luthmann
Age: 39
Staten Island, New York

E.D.N.Y. Docket No. 17-CR-664 (JBW)

Earlier today, at the federal courthouse in Central Islip, Freiry Martinez, also known as “Discreto” and “Sovietico,” a member of the Herndon City Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, was sentenced by United States Circuit Judge Joseph F. Bianco to 50 years’ imprisonment, following his guilty plea to racketeering charges for his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos.  Upon completion of his sentence, Martinez, an illegal alien from El Salvador, faces deportation from the United States.

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), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.

“It is my hope that today’s sentence brings some measure of closure and a sense of justice for the family members of the four victims, whose young lives were senselessly cut short by Martinez and his fellow MS-13 members,” stated United States Attorney Donoghue.  “This Office, along with our fellow law enforcement partners, will relentlessly pursue gang members who commit depraved acts of violence on behalf of the MS-13 gang, and who foolishly think that fleeing the jurisdiction will place them out of our reach.  Today’s sentence clearly proves otherwise.”

“This sentence illustrates our determination to bring these cold blooded killers to justice, and show the local communities we're on their side,” stated FBI Assistant Director-in-Charge Sweeney.  “The FBI Long Island Gang Task Force continues to use its global reach to find those who try to escape justice, and stop more violence from happening.”

“After committing four brutal murders, Martinez fled the jurisdiction in an attempt to evade justice,” stated SCPD Commissioner Hart. “Thanks to the strong partnership between both law enforcement and the United States Attorney’s Office his freedom was short lived.  We hope that this sentence sends a clear message, to both gang members and their associates that we will not rest until justice is served.  This sentencing is another example of our unwavering commitment to dismantle MS-13 in Suffolk County.”

“Today’s sentence of defendant Freiry Martinez is a clear example of law enforcement interagency cooperation and how there are no boundaries in criminal activity.  Our partnerships continue to combat crime as we maintain our zero tolerance approach toward gangs and their illegal activities to ensure safety for our residents and communities. I would like to congratulate all of the investigators and their agencies for their hard work and dedication in bringing defendant Martinez to justice,” stated NCPD Commissioner Ryder.   

On the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip so that Martinez and other MS-13 members could attack and kill them.  The victims were believed to be members of a rival gang who had offended the MS-13.  Martinez and numerous other MS-13 members and associates met in the park where they distributed weapons and discussed the plan to kill the victims.  Once the female MS-13 associates led the men to a wooded area, Martinez and the other MS-13 members and associates surrounded, attacked and killed Llivicura, Lopez, Tigre and Villalobos, using machetes, knives, wooden clubs and an axe.  The fifth intended victim escaped.  The victims’ bodies were discovered the following evening.

Several days after committing the April 11, 2017 murders, Martinez fled New York with the assistance of other MS-13 members from New Jersey, Virginia and Maryland.  After relocating to Virginia and later Maryland, Martinez continued his MS-13 involvement by associating with MS-13 members from those areas, engaging in street-level drug sales, assaulting rival gang members, and participating in the armed robberies of check-cashing establishments.  Martinez was a fugitive for more than seven months after the murders until he was located and arrested in Maryland on November 21, 2017.  Thereafter, Martinez was removed from the District of Maryland to the Eastern District of New York to face the instant charges. 

Martinez was under 16 years of age at the time of the murders and he was initially charged by a juvenile information.  Thereafter, the government filed a motion to transfer him to adult status for prosecution and Martinez waived a transfer hearing, waived indictment and pleaded guilty to racketeering, including predicate racketeering acts relating to the murders of Llivicura, Lopez, Tigre and Villalobos.

Today’s sentencing 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 international 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 of federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 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, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, Rockville Centre Police Department, New York State Police, and Bureau of Alcohol, Tobacco, Firearms and Explosives.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Michael T. Keilty are in charge of the prosecution.

The Defendant:

FREIRY MARTINEZ (also known as “Discreto” and “Sovietico”)
Age:  18
Brentwood, New York; Fairfax/Arlington Counties, Virginia; Montgomery County, Maryland

E.D.N.Y. Docket No. 17-CR-364 (S-1)(JFB)

Two New York ambulette company owners pleaded guilty today for their roles in a more than $8.6 million health care kickback scheme.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations and Acting Special Agent in Charge Jonathan Larsen of IRS Criminal Investigation (IRS-CI) New York made the announcement.

Igor Radinovskiy, 60, and Aleksandr Radinovskiy, 37, father and son, both of Brooklyn, New York, each pleaded guilty to one count of conspiracy to offer and pay health care kickbacks and one count of conspiracy to defraud the lawful functions of the IRS before U.S. Magistrate Judge Steven M. Gold of the Eastern District of New York.  Sentencing has not yet been scheduled.

The defendants were the co-owners and officers of the ambulette company Sabe Ambulette Services Inc., which did business as Mobility Transportation.  According to court filings and admissions, Igor Radinovskiy and Aleksandr Radinovskiy participated in a conspiracy in which they paid more than $8.6 million in kickbacks to co-conspirator companies not enrolled in the Medicaid program, for the referral of beneficiaries recruited by those co-conspirators, so that Sabe Ambulette could falsely bill Medicaid as if Sabe had transported those beneficiaries to various clinics in Brooklyn and Queens.  The defendants then falsely reported to the IRS that the illegal kickback payments were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions.

The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.  Trial Attorney Andrew Estes of the Fraud Section is prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Earlier today in federal court in Brooklyn, Igor Radinovskiy and Aleksandr Radinovskiy, co-owners of Sabe Ambulette Services Inc., d/b/a Mobility Transportation, located in Brooklyn and North Bellmore, New York, pleaded guilty to one count of conspiracy to offer and pay health care kickbacks and one count of conspiracy to defraud the lawful functions of the Internal Revenue Service. 

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, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, IRS Criminal Investigation (IRS-CI), announced the guilty pleas.

“The Radinovskiys used their ambulette company as a vehicle to falsely bill Medicaid for transportation services performed by drivers who were not enrolled in the Medicaid program, in exchange for kickbacks from the defendants,” stated United States Attorney Donoghue.  “With today’s guilty pleas, the defendants have been held accountable for this scheme that they carried out at the expense of the taxpayer-funded program.”

According to court filings and admissions by the defendants, Igor Radinovskiy and Aleksandr Radinovskiy, father and son respectively, paid kickbacks to co-conspirator drivers for recruiting Medicaid beneficiaries for transportation to clinics in Brooklyn and Queens, and referring those beneficiaries to the defendants’ company.  Those drivers were not enrolled in the Medicaid program, and were not authorized to bill Medicaid for the transportation.  The defendants, whose ambulette company was enrolled in Medicaid, billed the government program for the drivers’ services, kept 15 to 20 percent of the Medicaid reimbursements and kicked back 80 to 85 percent to the unauthorized drivers.  In total, between January 2008 and April 2018, the defendants and their co-conspirators paid more than $8.6 million in kickbacks.

For the calendar years 2008 through 2013, the defendants filed false tax returns, reporting the kickback payments as legitimate business expenses, under-reporting business income and claiming false business deductions.

The FBI, HHS-OIG and IRS-CI investigated the case, which was prosecuted by the Medicare Fraud Strike Force, under the supervision by the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.  Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.

The Defendants:

IGOR RADINOVSKIY
Age: 60
Brooklyn, New York

ALEKSANDR RADINOVSKIY
Age: 37
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-373 (FB)

 

 

Arkwin Industries, Inc., a Westbury, New York-based corporation, has agreed to pay a $2.6 million settlement to the United States, after self-disclosing its overbilling of the government and its prime contractors. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS), and Jason T. Hein, Special Agent-in-Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigations (AFOSI), announced the settlement.  

“This resolution demonstrates how government contractors and suppliers should act when they discover overbilling – Arkwin notified the authorities, investigated the error, reported its findings to the United States and ultimately took responsibility for its mistakes,” stated United States Attorney Donoghue.  “When a government contractor self-discloses billing errors and cooperates in the government’s investigation, our Office will work with them to arrive at a fair and just resolution.” 

“Today's settlement is the result of a joint effort to ensure that the U.S. Department of Defense (DoD) expends only the necessary amount for the goods and services needed to supply our military," stated DCIS Special Agent-in-Charge Barzey.  “Arkwin's cooperation in this matter was an important part of the successful and equitable resolution of this matter.  The DCIS is committed to working with its law enforcement partners and the U.S. Attorney's Office, Eastern District of New York, to protect the integrity of the DoD's procurement system.”

“The Air Force Office of Special Investigations is committed to protecting the USAF and the American taxpayer from contractors and subcontractors who overcharge the government for products or services,” stated AFOSI Special Agent-in-Charge Hein.

Arkwin Industries designs, tests and manufactures precision hydraulic and fuel system components for civil and military fixed-wing aircraft, helicopters, spacecraft, turbine engines and other special applications.  Arkwin acts both as a prime contractor and as a subcontractor to the Department of Defense, the Department of the Air Force and the Department of the Navy.

Arkwin detected an error in its accounting systems that had double-counted worker hours spent performing inspections of its products.  Arkwin then self-disclosed the discovery to the United States, and undertook an internal investigation by outside counsel and a forensic accounting team.  After concluding its investigation, Arkwin reported its findings to the United States.

After receiving Arkwin’s findings, the United States Attorney’s Office, with the support of DCIS and AFOSI, independently investigated the nature and extent of the overbilling, including whether the overbilling had been intentional or accidental.  Arkwin cooperated fully throughout the investigation, providing documents, making witnesses available for interviews and responding to government inquiries.  Following a thorough investigation, the Office found that the overbilling was accidental and negotiated the resolution.  The $2.6 million settlement represents the total of potential overbilling, with interest.

The government’s case was handled by Assistant United States Attorney John Vagelatos.

A five-count indictment was filed yesterday in federal court in Brooklyn charging Ruslan Maratovich Asainov, 43, also known as “Suleiman Al-Amriki” and “Suleiman Al-Kazakhi,” with conspiracy to provide material support to ISIS; providing material support to ISIS in the form of personnel, training, expert advice and assistance and weapons; receipt of military-type training from ISIS; and obstruction of justice.  If convicted, Asainov faces a maximum sentence of life in prison.  Asainov will be arraigned at a later date.

John C. Demers, Assistant Attorney General for National Security; Richard P. Donoghue, United States Attorney for the Eastern District of New York; Michael McGarrity, Assistant Director of the Counterterrorism Division, FBI; William F. Sweeney Jr., Assistant Director-in-Charge, FBI, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.

As detailed in court filings, Asainov is a naturalized U.S. citizen born in Kazakhstan, who resided in Brooklyn.  As alleged, in December 2013, Asainov traveled on a one-way ticket to Istanbul, Turkey, a common transit point to obtain entry into Syria.  He subsequently entered Syria, joined ISIS and became a sniper for the terrorist organization.  Over time, Asainov rose through the ranks to become an ISIS “emir” in charge of training other ISIS members in the use of weapons.  He also attempted to recruit another individual to travel from the United States to Syria to fight for ISIS. 

As further alleged, in March 2015, Asainov asked a confidential informant to send him approximately $2,800 so that he could purchase a scope for his rifle.  Asainov subsequently sent the confidential informant two photographs of himself holding an assault rifle fitted with a scope.  Asainov messaged one individual, exclaiming in reference to ISIS, “we are the worst terrorist organization in the world that has ever existed,” and added that he wished to die on the battlefield.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Douglas M. Pravda, Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Jacqueline L. Barkett of the Counterterrorism Section of the National Security Division of the Department of Justice.

Earlier today, at the federal courthouse in Central Islip, Bloods gang member Trendell Walker, also known as “Live Wire” and “Debo,” pleaded guilty to the firearm-related murder of 15-year-old Alvin Brothers on August 7, 2007.  The guilty plea was entered before United States Magistrate Judge Steven I. Locke.  When sentenced, Walker faces a maximum of life in prison.

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 Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea. 

“Today’s plea demonstrates the Department’s unwavering commitment to holding accountable gang members like defendant Walker who show complete disregard for human life,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue working tirelessly to eliminate violent gangs from our communities.” 

According to court filings and facts presented at the plea proceeding, on August 6, 2007, several individuals assaulted Walker and attempted to rob him.  The next day, Walker met with fellow Bloods gang members and devised a plan to retaliate against his assailants.  Walker and other Bloods gang members drove to Bellport, armed with firearms, where they observed Brothers and several young people standing on the corner of Post Avenue and Patchogue Avenue.  Walker and other gang members opened fire on the group.  Brothers was shot and died from his wounds. 

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

The Defendant:

TRENDELL WALKER
Age:  31
Riverhead, New York

E.D.N.Y. Docket No. 16-CR-369 (S-2)(SJF)

A five-count indictment was filed today in federal court in Brooklyn charging Ruslan Maratovich Asainov, also known as “Suleiman Al-Amriki” and “Suleiman Al-Kazakhi,” with conspiracy to provide material support to ISIS; providing material support to ISIS in the form of personnel, training, expert advice and assistance and weapons; receipt of military-type training from ISIS; and obstruction of justice.  If convicted, Asainov faces a maximum sentence of life in prison.  Asainov will be arraigned at a later date.

Richard P. Donoghue, United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; Michael McGarrity, Assistant Director of the Counterterrorism Division, Federal Bureau of Investigation; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department, announced the charges.

As detailed in court filings, Asainov is a naturalized U.S. citizen born in Kazakhstan, who resided in Brooklyn.  As alleged, in December 2013, Asainov traveled on a one-way ticket to Istanbul, Turkey, a common transit point to obtain entry into Syria.  He subsequently entered Syria, joined ISIS and became a sniper for the terrorist organization.  Over time, Asainov rose through the ranks to become an ISIS “emir” in charge of training other ISIS members in the use of weapons.  He also attempted to recruit another individual to travel from the United States to Syria to fight for ISIS. 

As further alleged, in March 2015, Asainov asked a confidential informant to send him approximately $2,800 so that he could purchase a scope for his rifle.  Asainov subsequently sent the confidential informant two photographs of himself holding an assault rifle fitted with a scope.  Asainov messaged one individual, exclaiming in reference to ISIS, “we are the worst terrorist organization in the world that has ever existed,” and added that he wished to die on the battlefield.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Douglas M. Pravda, Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Jacqueline L. Barkett of the Counterterrorism Section of the National Security Division of the Department of Justice.

The Defendant:

RUSLAN MARATOVICH ASAINOV
Age: 43
Syria and Bay Ridge, Brooklyn

E.D.N.Y. Docket No. 19-CR-402

A criminal complaint filed today in federal court in Brooklyn charged Awais Chudhary, a naturalized U.S. citizen born in Pakistan, with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.  Chudhary was arrested yesterday, and made his initial appearance this afternoon before United States Magistrate Judge James Orenstein.  Chudhary was ordered held without bail.

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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrest.

 “As alleged, Awais Chudhary planned to kill innocent civilians on behalf of ISIS and record the bloodshed in the hope of inspiring others to commit attacks,” stated United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all members of the FBI Joint Terrorism Task Force will continue working tirelessly to identify ISIS sympathizers like the defendant and prevent them from carrying out their murderous intentions.”

“The defendant allegedly planned to conduct a deadly attack in New York on behalf of ISIS,” stated Assistant Attorney General Demers.  “The National Security Division, working with our partners, will remain vigilant in our efforts to identify, disrupt and hold accountable those who would conduct a terrorist attack on our soil.  I want to thank the agents, analysts and prosecutors who are responsible for this case and prevented this defendant from carrying out his deadly plans.”

“There’s no doubt Chudhary allegedly wanted to make headlines by attacking innocent people going about their daily lives.  Thanks to the diligent work of the agents, analysts, and detectives on the FBI New York JTTF, the only thing to report today is his arrest, and the only photos Chudhary will be featured in are the ones taken in our prisoner processing room prior to his arrival in federal prison,” stated FBI Assistant Director-in-Charge Sweeney. 

“Awais Chudhary had accepted the call from ISIS to kill fellow New Yorkers in the city he called home,” stated NYPD Commissioner O’Neill.  “He had carefully planned, conducted reconnaissance, picked a target, and was in the process of obtaining the weapon. All he has left to do was to strike.  The FBI agents and NYPD detectives of the JTTF should be commended for the disruption of this plot. Their work almost certainly saved lives.”

 As alleged in the complaint, in August 2019, Chudhary communicated to undercover law enforcement officers through text messaging that he planned to conduct a stabbing or bombing attack on behalf of ISIS.  Chudhary also wanted to record his attack to inspire others to commit similar acts of violence.  Chudhary identified the pedestrian bridges over the Grand Central Parkway to the Flushing Bay Promenade (the Promenade) and the area of the World’s Fair Marina (the Marina) as locations for the attack.  On August 23, 2019, Chudhary told an undercover agent that he intended to use a knife “because that’s what he knows,” but if the undercover agent could instruct him on how to build a bomb, he would consider using an explosive device at a “mini-bridge over a busy road with many cars.”    On the same day, Chudhary texted another undercover agent a screenshot of a document entitled “Islamic State,” with the subheadings: “Places to Strike,” “The Ideal Knife” and “Knives to Avoid.”  The instructions included a diagram of the human body with directions where to stab a victim.  Chudhary also sent the undercover agent videos of pedestrian bridges over the Grand Central Parkway, and stated that he was considering throwing explosives over the fencing at vehicles passing below.

Chudhary conducted multiple reconnaissance trips to the targeted locations.  On August 24, 2019, FBI agents surveilled Chudhary enter the Promenade in the vicinity of 27th Avenue and Ditmars Boulevard and take videos and photos with his cellphone of various locations, as well as the Marina, a nearby gas station, a donut shop and a security camera near the donut shop.

Between August 25 and August 26, 2019, Chudhary ordered online a tactical knife, a mask, gloves and a cellphone chest and head strap to facilitate his recording of the attack.  Chudhary was arrested yesterday as he attempted to retrieve the items from an online vendor’s retail location in Queens.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Jonathan Algor and Special Assistant United States Attorney Elizabeth A. Hanft are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.

The Defendant:

AWAIS CHUDHARY
Age: 19
Queens, New York

E.D.N.Y. Docket No. 19-MJ-778

 A criminal complaint filed today in federal court in Brooklyn charged Awais Chudhary, 19, a naturalized U.S. citizen born in Pakistan, with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.  Chudhary was arrested yesterday, and made his initial appearance this afternoon before United States Magistrate Judge James Orenstein.  Chudhary was ordered held without bail.

“The defendant allegedly planned to conduct a deadly attack in New York on behalf of ISIS,” stated Assistant Attorney General for National Security John C. Demers. “The National Security Division, working with our partners, will remain vigilant in our efforts to identify, disrupt, and hold accountable those who would conduct a terrorist attack on our soil.  I want to thank the agents, analysts, and prosecutors who are responsible for this case and prevented this defendant from carrying out his deadly plans.”

“As alleged, Awais Chudhary planned to kill innocent civilians on behalf of ISIS and record the bloodshed in the hope of inspiring others to commit attacks,” stated United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all members of the FBI Joint Terrorism Task Force will continue working tirelessly to identify ISIS sympathizers like the defendant and prevent them from carrying out their murderous intentions.”

“There’s no doubt Chudhary allegedly wanted to make headlines by attacking innocent people going about their daily lives.  Thanks to the diligent work of the agents, analysts, and detectives on the FBI New York JTTF, the only thing to report today is his arrest, and the only photos Chudhary will be featured in are the ones taken in our prisoner processing room prior to his arrival in federal prison,” stated FBI Assistant Director-in-Charge Sweeney. 

“Awais Chudhary had accepted the call from ISIS to kill fellow New Yorkers in the city he called home,” stated NYPD Commissioner O’Neill.  “He had carefully planned, conducted reconnaissance, picked a target, and was in the process of obtaining the weapon. All he has left to do was to strike.  The FBI agents and NYPD detectives of the JTTF should be commended for the disruption of this plot. Their work almost certainly saved lives.”

As alleged in the complaint, in August 2019, Chudhary communicated to undercover law enforcement officers through text messaging that he planned to conduct a stabbing or bombing attack on behalf of ISIS.  Chudhary also wanted to record his attack to inspire others to commit similar acts of violence.  Chudhary identified the pedestrian bridges over the Grand Central Parkway to the Flushing Bay Promenade (the Promenade) and the World’s Fair Marina (the Marina) as locations for the attack.  On Aug. 23, 2019, Chudhary told an undercover agent that he intended to use a knife “because that’s what he knows,” but if the undercover agent could instruct him on how to build a bomb, he would consider using an explosive device at a “mini-bridge over a busy road with many cars.”    On the same day, Chudhary texted another undercover agent a screenshot of a document entitled, “Islamic State” with the subheadings: “Places to Strike,” “The Ideal Knife” and “Knives to Avoid.”  The instructions included a diagram of the human body with directions where to stab a victim.  Chudhary also sent the undercover agent videos of pedestrian bridges over the Grand Central Parkway and stated that he was considering throwing explosives over the fencing at vehicles passing below.

Chudhary conducted several reconnaissance trips to the targeted locations.  On Aug. 24, 2019, FBI agents surveilled Chudhary enter the Promenade in the vicinity of 27th Avenue and Ditmars Boulevard and take videos and photos with his cellphone of various locations, as well as the Marina, a nearby gas station, a donut shop and a security camera near the donut shop.

Between Aug. 25 and Aug. 26, 2019, Chudhary ordered online a tactical knife, a mask, gloves, and a cellphone chest and head strap to facilitate his recording of the attack.  Chudhary was arrested yesterday as he attempted to retrieve the items from an online vendor’s retail location in Queens.

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

The government’s case is being handled by the United States Attorney’s Office for the Eastern District of New York’s National Security and Cybercrime Section.  Assistant United States Attorney Jonathan Algor and Special Assistant United States Attorney Elizabeth A. Hanft are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.

Earlier today, Michael Conway was arrested on a complaint charging him with wire fraud.  Between August 2009 and September 2018, Conway allegedly stole more than $130,000 from the Social Security Administration (“SSA”) that was intended for his two minor children.  Conway will make his initial appearance this afternoon in federal court in Brooklyn before United States Magistrate Judge James Orenstein.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Gail S. Ennis, Inspector General, SSA, announced the charges.

“As alleged in the complaint, for nearly a decade, the defendant committed a fraud on his family and SSA by unlawfully collecting and keeping funds that had been provided for the care of his children based on false statements he made to the government,” stated United States Attorney Donoghue.  “This Office will remain vigilant in identifying and prosecuting those like the defendant who collect benefits to which they are not entitled.”

“This arrest should serve as a warning to those who choose to defraud Social Security’s disability programs,” stated SSA Inspector General Ennis.  “We vigorously pursue fraud allegations, and work closely with United States Attorney’s Offices across the country to bring offenders to justice.  I encourage the public to report suspected Social Security fraud to our fraud hotline at 1-800-269-0271 or http://oig.ssa.gov/report.”

According to the complaint, Conway, a former member of the New York City Police Department (NYPD), began receiving Retirement, Survivors and Disability Insurance (RSDI) benefits from the SSA in May 2009 for a work-related injury he suffered while employed by the NYPD.  Eligible family members may also receive RSDI benefits, or auxiliary benefits.  In August 2009, Conway applied for auxiliary benefits on behalf of his twin children, who were 8-years-old at the time.  Conway falsely claimed that his children resided with him in Queens and that no other relatives provided financial support for the children.  Based on the false information provided by the defendant, the SSA approved the application and granted Conway’s request to receive and manage the SSA funds to which his children were entitled.  Conway’s fraud was uncovered when his son, upon applying to the SSA for benefits, learned that SSA had been paying benefits to Conway on his children’s behalf since 2009 and that Conway had received a total of $138,016.60.  The twins’ mother informed the SSA that she was awarded custody of the children in December 2002 and they had never lived with the defendant.

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Conway faces a statutory maximum of 20 years’ imprisonment and restitution.

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.

The Defendant:

MICHAEL CONWAY
Age: 60
Queens, New York

E.D.N.Y. Docket No. 19-MJ-753

 

 

The defendant Eric Paulino was arrested today on a complaint charging him with possession of child pornography.  Paulino made his initial appearance this afternoon before United States Magistrate Judge James Orenstein in federal court in Brooklyn, and was released on a $250,000 bond.

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 (FBI), New York Field Office, announced the arrest.

“Paulino, while employed in a position of trust as a New York City school teacher, purchased child pornography on the Internet, contributing to the abuse and victimization of children,” stated United States Attorney Donoghue.  “Prosecuting those who feed the market for child pornography, whether producers or consumers, will always be a priority of this Office and our law enforcement partners.”

“Teachers are trusted by parents to protect and educate their children, which makes the thought of a teacher allegedly downloading illegal child pornography all that more disturbing,” stated FBI Assistant Director-in-Charge Sweeney.  “The FBI New York Child Exploitation and Human Trafficking Task Force works every day to stop predators from exploiting children, and further victimizing those exposed to hands on offenders who create images shared on the internet.”

According to the complaint and statements made in court, Paulino, a teacher at a Queens middle school, purchased child pornography using a mobile payment service.  Today, during a court-authorized search of Paulino’s residence, the defendant admitted to downloading and trading child pornography on his mobile phone.  Paulino provided FBI special agents with his iPhone and the password for the device.  A search of Paulino’s phone revealed numerous images and videos of children engaged in sexually explicit conduct.  

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

This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, 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 Anthony Bagnuola is in charge of the prosecution.

The Defendant:

ERIC PAULINO
Age: 30
Ridgewood, Queens

E.D.N.Y. Docket No. 19-MJ-767

An indictment was unsealed today in federal court in Central Islip charging Kamal Zafar, Jamal Zafar and Armughanul Asar with conspiracy to commit wire fraud and conspiracy to launder money in furtherance of their fraudulent scheme directed at thousands of individuals in the United States.  The defendants were arrested this morning in the Eastern District of New York, and are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven I. Locke. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and Kenneth Jackson, Commissioner, Garden City Police Department (GCPD), announced the charges.                        

As alleged in the indictment, between January 2018 and September 2018, the defendants, together with co-conspirators operating from call centers in India, targeted victims in the United States, and falsely claimed to be employees of the IRS, the Social Security Administration or the Drug Enforcement Administration.  The victims were informed that they owed a sum of money to the United States government or one of its agencies and that they would be arrested if the debts were not promptly paid.  After victims wired payments to bank accounts that the defendants had opened in the names of inactive and shell corporations to receive the fraud proceeds, the funds were withdrawn and laundered through additional bank accounts.  The scheme is estimated to have netted over $2 million from victims across the United States.

“The defendants’ transnational fraud scheme utilized callers falsely claiming to be federal employees and threatening arrest to extract payment from their victims,” stated United States Attorney Donoghue.  “This Office, together with our federal and local law enforcement partners, will continue working tirelessly to hold accountable scam artists who perpetrate telephone frauds.”  

“These defendants remotely used ruthless scare tactics and threatened innocent citizens including the elderly, widows, and professionals under the guise of having to pay off unfounded financial obligations to the U.S. government for their own personal gain,” stated IRS-CI Special Agent-in-Charge Larsen.  “IRS-CI will continue to apprehend those who victimize the public while posing as government officials both abroad and here at home.”

“The victimization of American taxpayers by individuals impersonating Internal Revenue Service employees is a serious crime,” stated TIGTA Inspector General George.  “I would like to thank the U.S. Attorney’s Office, Internal Revenue Service Criminal Investigation, the New York City Police Department and the Garden City Police Department on their outstanding efforts resulting in this indictment.”

“These indictments reflect the lengths that criminals will go in order to fraudulently separate honest people from their hard earned money,” stated NYPD Commissioner O’Neill.  “I congratulate the NYPD detectives, our law enforcement partners, and the U.S. Attorney for the Eastern District of New York for their hard work in dismantling this illegal operation.”  

“This case is an excellent example of collaboration and cooperation between multiple law enforcement agencies, which included federal, city and local authorities in the arrest of the participants of a major scheme to defraud numerous victims throughout the United States,” stated GCPD Commissioner Jackson.

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

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

The Defendants:

KAMAL ZAFAR
Age:  51
South Huntington, New York

JAMAL ZAFAR
Age:  48
Huntington, New York

ARMUGHANUL ASAR
Age:  68
College Point, New York

E.D.N.Y. Docket No. 19-CR-385 (SJF)

 

 

Earlier today, at the federal courthouse in Brooklyn, Asia Siddiqui and Noelle Velentzas, both citizens of the United States and residents of Queens, pleaded guilty to teaching and distributing information pertaining to the making and use of an explosive, destructive device, and weapon of mass destruction, intending that it be used to commit a federal crime of violence.  The guilty pleas were entered before United States District Court Judge Sterling Johnson Jr.  When sentenced, the defendants face up to 20 years in prison.

“Inspired by radical Islam, Velentzas and Siddiqui researched and taught each other how to construct bombs to be used on American soil against law enforcement and military targets,” said Assistant Attorney General John C. Demers. “They were thwarted by the excellent work of the agents, analysts and prosecutors who are responsible for this investigation and prosecution.  For this, we are grateful.”

“In an effort to implement their violent, radical ideology, the defendants studied some of the most deadly terrorist attacks in U.S. history, and used them as a blueprint for their own plans to kill American law enforcement and military personnel,” stated United States Attorney Richard P. Donoghue.  “Thanks to the tireless work of law enforcement, they were stopped before they could bring their murderous plans to fruition.” 

“Velentzas and Siddiqui were intent on waging violent jihad here in the United States, researching at length historical terrorist attacks on U.S. soil, educating themselves on how to turn propane tanks into explosive devices, and dreaming up plans to kill Americans on our own turf,” stated FBI Assistant Director-in-Charge William F. Sweeney Jr.  “Today’s plea is not only a welcome end to this years-long investigation, but a credit to the FBI’s JTTF in New York and our many law enforcement partners who saw this through to the end.”

“This investigation and the subsequent guilty pleas are yet another example of how each day the NYPD and members of the Joint Terrorism Task Force remain vigilant and relentless in their efforts to protect New York City and keep America safe,” stated NYPD Commissioner James P. O’Neill.  “I want to commend our law enforcement partners and the U.S. Attorney’s Office for the Eastern District for helping to bring these individuals to justice.”

Between approximately 2013 and 2015, Velentzas and Siddiqui planned to build a bomb for use in a terrorist attack in the United States.  In furtherance of their plan, the defendants taught each other chemistry and electrical skills related to creating explosives and building detonating devices; conducted research on how to make plastic explosives and how to build a car bomb; and shopped for and acquired materials to be used in an explosive device.  They discussed similar devices used in past terrorist incidents, including the Boston Marathon bombing, Oklahoma City bombing and 1993 World Trade Center attack, and they researched potential targets of attack, focusing on law enforcement and military-related targets. 

Siddiqui’s interest in violent terrorist-related activities was reflected in her written submissions to a radical jihadist magazine edited by Samir Khan, a now-deceased prominent figure and member of the designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (AQAP).  Velentzas similarly espoused violent rhetoric, praising the attacks of Sept. 11, 2001, and stating that being a martyr through a suicide attack guaranteed entrance into heaven.  Velentzas specifically singled out government targets stating, “you go for the head” when you commit a terrorist attack. 

When the defendants were arrested, law enforcement officers seized propane gas tanks, soldering tools, car bomb instructions, jihadist literature, machetes and several knives from their residences. 

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Craig R. Heeren, Jennifer M. Sasso, Michael T. Keilty, Josh Hafetz and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section.

Earlier today, at the federal courthouse in Brooklyn, Asia Siddiqui and Noelle Velentzas, both citizens of the United States and residents of Queens, pleaded guilty to teaching and distributing information pertaining to the making and use of an explosive, destructive device, and weapon of mass destruction, intending that it be used to commit a federal crime of violence.  The guilty pleas were entered before United States District Court Judge Sterling Johnson, Jr.  When sentenced, the defendants face up to 20 years in prison.

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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.

“In an effort to implement their violent, radical ideology, the defendants studied some of the most deadly terrorist attacks in U.S. history, and used them as a blueprint for their own plans to kill American law enforcement and military personnel,” stated United States Attorney Donoghue.  “Thanks to the tireless work of law enforcement, they were stopped before they could bring their murderous plans to fruition.”  Mr. Donoghue expressed his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region, for its outstanding work during the investigation.

“Inspired by radical Islam, Velentzas and Siddiqui researched and taught each other how to construct bombs to be used on American soil against law enforcement and military targets,” stated Assistant Attorney General Demers.  “They were thwarted by the excellent work of the agents, analysts and prosecutors who are responsible for this investigation and prosecution.  For this, we are grateful.”

“Velentzas and Siddiqui were intent on waging violent jihad here in the United States, researching at length historical terrorist attacks on U.S. soil, educating themselves on how to turn propane tanks into explosive devices, and dreaming up plans to kill Americans on our own turf,” stated FBI Assistant Director-in-Charge Sweeney.  “Today’s plea is not only a welcome end to this years-long investigation, but a credit to the FBI’s JTTF in New York and our many law enforcement partners who saw this through to the end.”

“This investigation and the subsequent guilty pleas are yet another example of how each day the NYPD and members of the Joint Terrorism Task Force remain vigilant and relentless in their efforts to protect New York City and keep America safe,” stated NYPD Commissioner O’Neill.  “I want to commend our law enforcement partners and the U.S. Attorney’s Office for the Eastern District for helping to bring these individuals to justice.”

Between approximately 2013 and 2015, Velentzas and Siddiqui planned to build a bomb for use in a terrorist attack in the United States.  In furtherance of their plan, the defendants taught each other chemistry and electrical skills related to creating explosives and building detonating devices; conducted research on how to make plastic explosives and how to build a car bomb; and shopped for and acquired materials to be used in an explosive device.  They discussed similar devices used in past terrorist incidents, including the Boston Marathon bombing, Oklahoma City bombing and 1993 World Trade Center attack, and they researched potential targets of attack, focusing on law enforcement and military-related targets. 

Siddiqui’s interest in violent terrorist-related activities was reflected in her written submissions to a radical jihadist magazine edited by Samir Khan, a now-deceased prominent figure and member of the designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (“AQAP”).  Velentzas similarly espoused violent rhetoric, praising the attacks of September 11, 2001, and stating that being a martyr through a suicide attack guaranteed entrance into heaven.  Velentzas specifically singled out government targets stating, “you go for the head” when you commit a terrorist attack. 

When the defendants were arrested, law enforcement officers seized propane gas tanks, soldering tools, car bomb instructions, jihadist literature, machetes and several knives from their residences. 

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Craig R. Heeren, Jennifer M. Sasso, Michael T. Keilty, Josh Hafetz and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section.

The Defendant:

NOELLE VELENTZAS
Age:  31
Queens, New York

ASIA SIDDIQUI (also known as “Najma Samaa” and “Murdiyyah”)
Age:  35
Queens, New York

E.D.N.Y. Docket No. 15-CR-213 (SJ)

An 11-count superseding indictment was unsealed in federal court in Central Islip charging Rashaan Corbin, Miles Lamarca, Sharied Legette, Alex Murphy, Taieek Smith and Andre Turner – members or associates of the Bloods street gang – with multiple crimes for their participation in drug distribution in Babylon, New York, and surrounding neighborhoods.  Lamarca was arrested on August 15, 2019 and will be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson.  Legette and Turner were arrested last month and ordered detained.  Smith is in state custody and will be arraigned at a future date on the superseding indictment with Corbin and Murphy, who were charged in the original indictment in March 2019. 

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), Raymond Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Timothy Sini, District Attorney, Suffolk County District Attorney’s Office (SCDA), and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges.

As alleged in court filings, between approximately March 2013 and April 2019, the defendants distributed heroin, fentanyl, fentanyl analogues, cocaine or crack cocaine in and around Babylon.  They often used firearms to protect their turf and narcotics from members of other street gangs.  During the course of the investigation, members of law enforcement seized more than $120,000 in cash, five semi-automatic handguns, drug paraphernalia and materials used to package narcotics for distribution.           

“Drugs, gangs and guns are a dangerous combination, putting our communities at grave risk,” stated United States Attorney Donoghue.  “This Office and our federal and state law enforcement partners will continue to work tirelessly to remove drug-dealing gang members from our streets.” 

“Members and associates of street gangs go to great lengths to defend their respective territories, at times engaging in acts of violence to prevent others from invading the areas they control. When narcotics are involved, the stakes are even higher. The people of our communities deserve to live in a society that is free from violence. The FBI will continue to aggressively investigate these cases and work together with our partners in disrupting and dismantling this type of illegal activity,” stated FBI Assistant Director-in-Charge Sweeney.

“Today’s arrest marks the end of a criminal organization alleged to have spread drugs, violence, and mayhem throughout Long Island communities,” stated DEA Special Agent- in-Charge Donovan.  “This investigation is one example of collaborative law enforcement efforts to make our cities safer by focusing on gang-related crime and violence.”

“Gang activity often goes hand-in-hand with illicit drug sales and the illegal possession of weapons, which are used as protection for narcotics operations like this one,” stated Suffolk County District Attorney Sini.  “Make no mistake: these defendants, who are members and associates of the violent Bloods street gang, were driving crime in a variety of ways in our communities, and these indictments put an end to that enterprise. We will continue to work collaboratively with our federal partners, including the cross-designation of prosecutors, so that we can effectively target and arrest impact players.”

“The success of our coordinated efforts with our law enforcement partners is evident in the takedown of these Bloods gang members and associates who ran a narcotics operation for six years,” stated SCPD Commissioner Hart. “We remain committed to arresting those who make a living off of selling illicit drugs and poisoning our communities. Interagency collaboration plays a significant role in creating the safest environment for our residents, and I would like to thank the Eastern District of New York for their unwavering commitment to ridding neighborhoods of narcotics.”

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

If convicted, Corbin, Legette, Murphy and Smith face a maximum of life imprisonment; Lamarca and Turner face up to 40 years in prison.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the 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 Long Island Criminal Division.  Assistant United States Attorneys Christopher C. Caffarone, Mark E. Misorek and Special Assistant United States Attorney Melissa J. Turk are in charge of the prosecution. 

New Defendants:

MILES LAMARCA (also known as “Shaq”)
Age: 21
Babylon, New York

SHARIED LEGETTE (also known as “Chalk” and “Rico”)
Age: 22
Wyandanch, New York

TAIEEK SMITH  
Age: 23
Wyandanch, New York

ANDRE TURNER (also known as “X”)
Age: 29
Wyandanch, New York

Previously Indicted Defendants:

RASHAAN CORBIN (also known as “Ra” and “Ra Money”)
Age: 23
Mastic, New York

ALEX MURPHY (also known as “Buddha” and “Tall Guy”)
Age: 33
West Babylon, New York

E.D.N.Y. Docket No. 19-CR-124 (DRH)

 

Daniel Mullan will be arraigned this afternoon in federal court in Central Islip before United States Magistrate Judge A. Kathleen Tomlinson on an indictment charging him with sexual exploitation of a child, transportation of a minor with intent to engage in sexual activity and possession of child pornography.  Mullan was extradited to the United States from Ireland on August 15, 2019.    

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 Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the extradition and charges.

“As alleged, Daniel Mullan victimized children here and abroad for decades by sexually abusing them and recording these acts,” stated United States Attorney Donoghue.  “The protection of children is a priority of this Office and the Department of Justice.  Those who exploit and victimize children will be identified and brought to justice.”  Mr. Donoghue extended his grateful appreciation to the FBI’s Long Island Child Exploitation and Human Trafficking Task Force, comprising the FBI and local law enforcement agencies, for its investigative work and assistance in the case.

“As alleged in the indictment, Mr. Mullan has sexually abused children for decades, robbing them of the innocence all children deserve,” stated FBI Assistant Director-in-Charge Sweeney.  “The Long Island Child Exploitation and Human Trafficking Task Force along with the FBI's Victim Specialists are committed to identifying and providing assistance to all of Mr. Mullan’s victims.  We are asking anyone who may have been a victim of Mr. Mullan to call us at 1-800-CALL-FBI.  We believe there are other children who were victimized and we would like to hear from them.”

“For years, Daniel Mullan preyed on children robbing them of their innocence and he will now have to answer for his horrifying crimes,” stated SCPD Commissioner Hart.  “I applaud the tireless work of the Eastern District of New York and the FBI’s Long Island Child Exploitation and Human Trafficking Task Force, who are dedicated to protecting our children and bringing those who target them to justice.” 

According to court filings, in the summer of 2017, the FBI executed search warrants at Mullan’s residence in Elmont, New York, and his rental storage unit in Melville, and seized hundreds of images and videos of child pornography.  Several videos depicted Mullan engaged in sexual acts with teenage boys dating back to the early 1980s.  Numerous victims were then identified, including a male juvenile with whom Mullan traveled in the United States and abroad between 1999 and 2006 for the purpose of engaging in sex and recording it for himself and to sell to others. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Mullan faces a mandatory minimum of 10 years’ and a maximum of 20 years’ imprisonment.

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

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

The Defendant:

DANIEL MULLAN
Age: 80
Elmont, New York

E.D.N.Y. Docket No. 17-CR-495 (ADS)

Earlier today, following a two-week trial, a federal jury in Brooklyn returned a guilty verdict against Rafael Antonio Fabian for conspiring to distribute and possess with intent to distribute narcotics, specifically crack cocaine.  When sentenced by United States Chief District Court Judge Dora L. Irizarry, the defendant faces a mandatory minimum sentence of 10 years in prison and a maximum of life imprisonment.  Chief Judge Irizarry ordered the defendant remanded.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the verdict.  

“With today’s verdict and the previous guilty pleas of his co-conspirators, Fabian’s poison-pushing drug trafficking operation has been dismantled,” stated United States Attorney Donoghue.  “Together with our law enforcement partners, this Office will be unrelenting in pursuing networks like Fabian’s that imperil our communities.”  Mr. Donoghue expressed his grateful appreciation to the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department for their assistance during the investigation.

 “This conviction sends a message that law enforcement is committed to putting traffickers in jail and taking drugs off the streets,” stated DEA Special Agent-in-Charge Donovan. "I commend the New York Drug Enforcement Task Force and the Eastern District of New York on their diligent work."

As proven at trial, between January 2014 and March 2016, Fabian conspired with others to supply drug dealers in the Sunset Park and Bay Ridge neighborhoods of Brooklyn, and elsewhere.  Fabian, who referred to himself using the aliases “Calvo,” “Rafaelito” and “Alofoke Music,” supplied co-conspirators with Blackberry phones that he believed to be secure because the messages were encrypted. The evidence at trial included testimony from co-conspirators, narcotics seizures, ledgers containing the names of drug customers and transactions, and more than 50 pages of messages from Blackberry phones seized from co-conspirators detailing their drug trafficking activity. 

Fabian and his co-conspirators maintained a stash apartment in Sunset Park and employed a crew of runners to deliver the narcotics.  When making deliveries himself, Fabian drove several vehicles including an Audi sedan equipped with a secret trap compartment in the glove box to hide the drugs inside.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Drew G. Rolle and James P. McDonald are in charge of the prosecution.

The Defendant:

RAFAEL ANTONIO FABIAN (also known as “Rafaelito” and “Calvo”)
Age:  43
Baldwin, New York

E.D.N.Y. Docket No. 16-CR-131 (S-1) (DLI)

Azizjon Rakhmatov, a citizen of Uzbekistan and resident of New Haven, Connecticut, pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).  Today’s plea took place before United States District Court Judge William F. Kuntz, II.  When sentenced, Rakhmatov faces up to 15 years’ imprisonment.

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, (FBI), New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

According to court filings, Rakhmatov’s co-defendants Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS.  Rakhmatov and co-defendant Abror Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria.  Rakhmatov also agreed to collect money from others to fund Saidakhmetov’s travel.  On the day before Saidakhmetov’s scheduled departure, Rakhmatov transferred $400 into co-defendant Akmal Zakirov’s personal bank account to facilitate Saidakhmetov’s travel to and expenses in Syria. 

Juraboev, Saidakahmetov, Habibov and Zakirov have previously pleaded guilty.  Juraboev and Saidakahmetov each were sentenced to 15 years’ imprisonment.  Habibov and Zakirov are awaiting sentencing.

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

The Defendant:

AZIZJON RAKHMATOV
Age:  32
New Haven, Connecticut

E.D.N.Y. Docket No. 15-CR-95 (S-3)

Azizjon Rakhmatov, 32, a citizen of Uzbekistan and resident of New Haven, Connecticut, pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).  Today’s plea took place before U.S. District Court Judge William F. Kuntz II. 

John C. Demers, Assistant Attorney General for National Security; Richard P. Donoghue, U.S. Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), made the announcement.

According to court filings, Rakhmatov’s co-defendants Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS.  Rakhmatov and co-defendant Abror Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria.  Rakhmatov also agreed to collect money from others to fund Saidakhmetov’s travel.  On the day before Saidakhmetov’s scheduled departure, Rakhmatov transferred $400 into co-defendant Akmal Zakirov’s personal bank account to facilitate Saidakhmetov’s travel to and expenses in Syria. 

Juraboev, Saidakahmetov, Habibov and Zakirov have previously pleaded guilty.  Juraboev and Saidakahmetov each were sentenced to 15 years’ imprisonment.  Habibov and Zakirov are awaiting sentencing.  When sentenced, Rakhmatov faces up to 15 years’ imprisonment.

Assistant United States Attorneys Douglas M. Pravda, David K. Kessler, and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.

Jose Miguel Melendez-Rojas was extradited to the United States yesterday, and is scheduled to be arraigned today before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn on an 18-count indictment charging him with sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and money laundering conspiracy.  Melendez-Rojas was arrested in February 2019 in Mexico following a joint investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Mexico City and New York Offices, and the Mexican Federal Police.  Melendez-Rojas is charged with five co-defendants: two were extradited from Mexico to the United States in October 2018, and three were previously arrested in the United States. 

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

“With this extradition, the defendant Jose Miguel Melendez-Rojas will be held accountable in a United States court for sex trafficking women and girls and related crimes,” stated United States Attorney Donoghue.  “The Department of Justice is committed to prosecuting to the fullest extent of the law those who profit from forcing vulnerable victims into sexual servitude.”

 “Melendez-Rojas was flown thousands of miles to face charges for his role in trafficking and victimizing young women purely for profit.  It’s alleged that he, with others in this ‘family business,’ used intimidation and abuse to force their victims to participate in sexual acts against their will,” stated HSI Special Agent-in-Charge Fitzhugh.  “The safety and well-being of the victim comes first and we will continue to work with our law enforcement partners in ensuring these criminal organizations cease to victimize for revenue.”

As alleged in the second superseding indictment and other court filings, between 2006 and July 2017, Melendez-Rojas, and his co-defendant relatives, smuggled young women and girls from Mexico into the United States, where they were forced to work as prostitutes in New York City and elsewhere.  The defendants conspired to launder the proceeds of their sex-trafficking and prostitution activities to conceal the illicit nature of the proceeds.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of the sex-trafficking-related charges, each defendant faces a mandatory minimum sentence of 15 years’ and a maximum of life imprisonment.

Mr. Donoghue commended HSI New York’s Trafficking in Persons Unit for leading the investigation, and thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol and the New York City Police Department for their assistance.  He also extended his grateful appreciation to the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts, and acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.

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 Mexican federal and state prosecutions of associated sex traffickers.  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 handled by the Office’s Civil Rights Section.  Assistant United States Attorneys Erin E. Argo and Monica K. Castro are in charge of the prosecution.

The New Defendant:

JOSE MIGUEL MELENDEZ-ROJAS
Age:  45
Mexico

Defendants Previously Arrested:

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

FABIAN REYES-ROJAS
Age:  39
Queens, New York

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

JOSE OSVALDO MELENDEZ-ROJAS
Age:  45
Mexico

ROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age:  37
Mexico

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

Earlier today, in federal court in Central Islip, Olena Kalichenko, a citizen of Ukraine, was sentenced by United States Circuit Judge Joseph F. Bianco to 20 years’ imprisonment, following her April 2016 guilty plea to conspiracy to sexually exploit a child, sexual exploitation of a child, production of child pornography for importation into the United States, and transportation of child pornography.  Upon completion of her prison sentence, Kalichenko will be required to register as a sex offender, and faces deportation to Ukraine.  Kalichenko was arrested in July 2014, when she traveled to the United States.

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

 “The defendant’s lengthy prison sentence should serve as a warning to anyone who victimizes children by producing and trafficking child pornography, on the internet or otherwise: You will be identified, apprehended, prosecuted and punished,” stated United States Attorney Donoghue.  Mr. Donoghue thanked the Federal Bureau of Investigation (FBI) and the Suffolk County Police Department (SCPD) for their assistance in this case.

Between April 2012 and November 2012, Kalichenko produced 46 custom-made videos of child pornography, scripted by co-defendant Joseph Valerio, depicting a two-year-old girl in Ukraine.  In exchange for thousands of dollars, Kalichenko emailed the videos to Valerio, who resided in Smithtown, Long Island.  In January 2014, FBI agents and SCPD officers executed a search warrant at Valerio’s residence and found hidden cameras, costumes, a wooden stage, computers and other electronic devices.  A forensic examination of the computers and electronic devices revealed that Valerio had produced child pornography in the basement of his house involving a six-year-old girl. 

Valerio was convicted by a federal jury in November 2014 of conspiracy to sexually exploit a child, sexually exploiting a child, and transporting, receiving and possessing child pornography.  He was subsequently sentenced to 60 years’ imprisonment. 

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

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Ameet B. Kabrawala and Allen L. Bode are in charge of the prosecution. 

The Defendants:

Olena Kalichenko
Age: 32
Ukraine

Joseph Valerio
Age:  52
Smithtown, New York

E.D.N.Y. Docket No. 14 CR 94 (JFB)

E.D.N.Y. Docket No. 14 CR 95 (JFB)

 

Earlier today, at the federal courthouse in Brooklyn, Simon Gordon, a former correction officer employed by the New York City Department of Correction (“DOC”), pleaded guilty to conspiring to accept bribes in exchange for smuggling contraband into a jail on Rikers Island.  The plea proceeding took place before United States District Judge Carol Bagley Amon.  When sentenced, Gordon faces up to five years in prison and a fine of up to $250,000.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.

From approximately January 2018 through July 2018, Gordon agreed to accept bribes in exchange for smuggling contraband, including marijuana, into one of the jails on Rikers Island.  On July 29, 2018, DOI investigators monitoring a telephone call between Gordon’s co-conspirators overheard a discussion about a cash payment made to Gordon in exchange for smuggling contraband into the jail.  Specifically, co-conspirator 2 told co-conspirator 1 that Gordon was given two “bands,” coded language referring to $2,000, and that co-conspirator 2 had “six balls,” code for six packages of narcotics, for Gordon.

On July 30, 2018, when Gordon arrived for work, he was searched and found to have a package containing marijuana concealed in the crotch of his pants.  The package was coated with clear nail polish, to mask the smell of marijuana.

“Gordon betrayed the trust placed in him as a correction officer when he accepted bribes to smuggle contraband into Rikers Island, jeopardizing the safety and security of the correctional facility,” stated United States Attorney Donoghue.  “This Office is committed to working with its law enforcement partners to identify and hold accountable those like Gordon who corrupt our correctional institutions.”  Mr. Donohue extended his grateful appreciation to DOI for its outstanding investigation.  

“City correction officers who accept bribes to transport contraband into correctional facilities undermine the safety and security of the jails, as well as of their fellow officers,” stated DOI Commissioner Garnett.  “In this case, a correction officer who pocketed cash in return for bringing in marijuana to Rikers Island is now convicted and no longer a city employee – sending a strong message that New York City has no tolerance for this illegal conduct.  I want to thank the Office of the United States Attorney for the Eastern District of New York for its partnership in this investigation and the successful prosecution of the matter.”

The government’s case is being prosecuted by Assistant United States Attorney F. Turner Buford. 

The Defendant:

SIMON GORDON
Age:  24
Bronx, New York

E.D.N.Y. Docket No. 19-CR-352 (CBA)

Earlier today in federal court in Brooklyn, John Cucinella, the former investment manager of Mackrow Asset Management Group (Mackrow), a purported asset management firm located in Brooklyn, pleaded guilty to securities fraud.  As part of his plea, Cucinella agreed to forfeit $948,530 that he misappropriated from investors.  The guilty plea was before United States Magistrate Judge Steven L. Tiscione.

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), announced the guilty plea.

“John Cucinella represented himself to investors as a ‘financial concierge’, but rather than service the needs of elderly investors, he swindled them out of thousands of dollars and then spent the money on himself,” stated United States Attorney Donoghue.  “The Department of Justice and this Office are committed to prosecuting to the fullest extent of the law those who prey on vulnerable victims for their own selfish benefit.”

According to court filings and facts presented at the plea proceeding, between approximately March 2015 and April 2018, Cucinella falsely represented to Mackrow investors, many of whom were elderly, that their funds would be used to invest in pre-initial public offering (pre-IPO) shares of private companies, including a company purportedly that manufactured bug spray.  In a brochure that Cucinella provided to clients, Mackrow was described as “providing you all the resources of a true financial concierge.”  During the same time period, Cucinella transferred more than $400,000 from the Mackrow account to bank accounts he controlled, and spent approximately $108,000 for credit card payments and $40,000 at a Mercedes-Benz dealership in Brooklyn.  More than 80 individuals invested approximately $778,000 with Mackrow, and received only $80,818 in return.

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

The Defendant:

JOHN CUCINELLA
Age: 41
Residence: Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-347 (RRM)