Eastern District of New York

A criminal complaint was unsealed today in federal court in Brooklyn charging Maruf Alam with wire fraud in connection with his theft of more than $80,000 in campaign contributions from a New York State Assemblyman’s campaign account.  Alam was arrested this morning, made his initial appearance this afternoon before United States Magistrate Judge Sanket J. Bulsara, and was released on a $100,000 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, New York Field Office (FBI), announced the charges.

“As alleged, Alam was caught red-handed using a New York State Assemblyman’s campaign account as his personal piggy bank,” stated United States Attorney Donoghue.  “Alam betrayed the trust placed in him to act honestly as the treasurer for the account, and then attempted to cover up his crime by filing false disclosure reports for years.  Today’s arrest makes clear that dishonest public employees will face the consequences of their crimes and be prosecuted to the fullest extent of the law.”  Mr. Donoghue extended his grateful appreciation to the enforcement staff at the New York State Board of Elections (NYSBOE) for their assistance during the investigation.

“As alleged, Alam violated the trust of an elected New York State Assemblyman by brazenly diverting more than $80,000 in campaign contributions to his own personal accounts,” stated FBI Assistant Director-in-Charge Sweeney.  “Alam went to great lengths to conceal his fraud, including traveling to China to illicitly withdraw funds from a campaign account and then filing false disclosure reports with the New York State Board of Elections.  Today’s action should serve as a reminder that the FBI will continue to bring to justice those who aim to exploit positions of public trust to satisfy their selfish greed.”

According to the complaint, since 2008 Alam was employed in various capacities, including chief of staff, for a New York State Assemblyman.  Alam also acted on a voluntary basis as the treasurer for the Assemblyman’s campaign account, and was responsible for filing periodic disclosure reports with the NYSBOE to disclose contributions received and expenditures made by the Assemblyman’s campaign committee.  From approximately January 2012 to January 2019, Alam allegedly stole campaign funds that had been contributed to support the candidacy of the Assemblyman, and deposited the cash into his personal account.  For example, campaign account records disclose that on November 9, 2015 and November 13, 2015, two ATM withdrawals from the campaign account were made at two locations in China.  Travel records reflect that Alam traveled to China on November 5, 2015, and returned to the United States on November 19, 2015.  In total, during the relevant time period, the Assemblyman’s campaign account records reflect approximately $80,000 in cash withdrawals by Alam that were not reported to NYSBOE.  

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

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Nathan Reilly and Maria Cruz Melendez are in charge of the prosecution

The Defendant:

MARUF ALAM
Age:  29
Brooklyn, New York

E.D.N.Y. Docket No. 19-MJ-710

A criminal complaint was unsealed today in federal court in Brooklyn charging Vladimir Kuznetsov, a Russian national, with illegally exporting, attempting to export and conspiring to export firearm parts and accessories from the United States to individuals in Russia.  Kuznetsov was arrested this morning in Dingsman Ferry, Pennsylvania, and will make his initial appearance this afternoon in Brooklyn before United States Magistrate Judge Sanket J. Bulsara.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office, (DCIS), announced the charges.

“As alleged in the complaint, Kuznetsov violated laws intended to safeguard our national security” stated United States Attorney Donoghue.  “Today’s arrest demonstrates our resolve to investigate and prosecute those who illegally export restricted items without regard for their end use, placing their own enrichment above our country’s interests.”  Mr. Donoghue extended his grateful appreciation to the U.S. Department of Commerce, Office of Export Enforcement, United States Customs and Border Protection (CBP), and United States Postal Inspection Service, New York Division (USPIS), for their assistance during the investigation.

 “Kuznetsov is alleged to have illegally exported firearm parts to Russia, including parts to assemble rifles, by methodically mislabeling the packages and concealing the parts,” said HSI Special Agent-in-Charge Fitzhugh.  “The safety of our nation is paramount in our counter-proliferation cases, and HSI will continue to investigate those who choose to fill their pockets with illicit proceeds by putting the security of our country at risk.”

“Today’s charges are the direct result of a joint effort by the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations, and the U.S. Attorney’s Office, Eastern District of New York, to protect our national security.  The DCIS will continue to work with its law enforcement partners to identify, investigate and prosecute individuals who attempt to illegally obtain and export restricted defense technology,” stated DCIS Special Agent-in-Charge Barzey.

According to the criminal complaint, from approximately February 2017 to the present, Kuznetsov and others conspired to export and exported from the United States to Russia, firearm parts and other items on the United States Commerce Control List.  These items are restricted and cannot be exported from the United States without licenses from the United States Department of State and United States Department of Commerce.  Kuznetsov purchased U.S.-origin firearm parts online, including parts used to assemble sniper rifles.  He then shipped the firearm parts via the U.S. Postal Service to buyers in Russia.  To avoid detection, Kuznetsov provided false descriptions of the items contained in each package, and hid rifle parts inside the packages.  For example, in one package seized by CBP in July 2017 at John F. Kennedy International Airport (JFK), Kuznetsov had packed an H-S Precision rifle stock for a Remington 700 series bolt action rifle beneath a Bosch benchtop router table.  The only item listed on the package’s shipping label and customs form was benchtop router table.  In April 2018, also at JFK, CBP seized another Kuznetsov outbound package, this one containing a rifle chassis and 5-round ammunition magazines, concealed among a pair of sneakers, jeans, a heating pad and blood pressure monitor.  The accompanying USPS customs form omitted the rifle chassis and ammunition magazines.

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Kuznetsov faces a statutory maximum 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 E. Algor is in charge of the prosecution, assisted by Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.

The Defendant:

VLADIMIR KUZNETSOV
Age:  58
Coney Island, Brooklyn

E.D.N.Y. Docket No. 19-MJ-690

A criminal complaint has been unsealed in the Eastern District of New York charging Kevin Lau, Kenneth Tam and Jack Thai with conspiracy to distribute, and possession with intent to distribute, large quantities of marijuana.  Thai was arrested on July 24, 2019 in Las Vegas, Nevada, and made his initial appearance today in federal court in Brooklyn before United States Magistrate Judge Steven L. Tiscione.  Thai was released on a $50,000 bond.  Tam surrendered to law enforcement yesterday and made his initial appearance yesterday before Magistrate Judge Tiscione.  Tam was released on a $500,000 bond.  Lau is currently a fugitive.  

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), announced the arrests. 

“Today’s arrests end the defendants’ scheme of shipping marijuana by tractor trailer and grounds their use of commercial airline flights to transport illicit drug cash,” stated United States Attorney Donoghue.  “Together with HSI, our Office will continue to identify and prosecute traffickers who distribute narcotics into our communities.” 

“This trio allegedly operated a coast to coast operation, moving more than 50 tons of marijuana to New York and other cities around the U.S.,” stated HSI Special Agent-in-Charge Melendez.  “Over the course of 3 years, trucks were used to move the product east, as far as Queens, while the proceeds were smuggled back to the west coast by plane.  HSI’s Border Enforcement Security Task Force followed the money in this large-scale drug distribution conspiracy, which resulted in the three arrests this morning.  These individuals will now make that same trip, from West Coast to East Coast, to face prosecution.”

As alleged in court documents, between February 2015 and December 2018, the defendants conspired to ship multiple kilogram quantities of marijuana by tractor trailer from California and Washington State to Queens and elsewhere for distribution.  The shipping crates used to transport the marijuana were falsely labeled as containing furniture, clothing and other merchandise.  Lau’s co-conspirators stored the crates in commercial facilities and residences in Queens and other locations in New York City.  The cash proceeds of the marijuana were then smuggled back to the West Coast concealed in luggage on commercial airlines. 

During the investigation, HSI agents seized approximately $500,000 in cash from members of the conspiracy.  Based on records of more than 200 marijuana shipments and the seizures of marijuana by law enforcement, HSI estimates that the defendants  transported more than 100,000 pounds of marijuana, marijuana oil and drug paraphernalia.

If convicted, the defendants face a mandatory minimum of 10 years’ imprisonment, and up to life in prison.

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

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorneys James P. McDonald and Philip Pilmar are in charge of the prosecution. 

The Defendants:

KEVIN LAU
Age: 34
San Francisco, California

KENNETH TAM
Age:  35
San Francisco, California

JACK THAI
Age:  39
Las Vegas, Nevada

E.D.N.Y. Docket No. 19-MJ-626

Marcello Sozio, the former operator of Andi Hyperbarics LLC, a hyperbaric oxygen chamber business based in Great Neck, New York, and Chicago, Illinois, pleaded guilty earlier today to wire fraud in connection with a scheme to defraud banks and a customer of his business.  The proceeding was held before United States Magistrate Judge Steven I. Locke at the federal courthouse in Central Islip.  When sentenced, Sozio faces up to 20 years in prison.  As part of his guilty plea, Sozio agreed to pay approximately $1.1 million in restitution. 

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 Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea. 

“Sozio committed a fraud trifecta by duping lenders, cheating his business partners and stealing from the parent of a child for treatment he never provided,” stated United States Attorney Donoghue.  “The defendant now faces the consequences for pocketing hundreds of thousands of dollars in unauthorized loans and fraudulent credit card charges.”

“Stealing from anyone is criminal, however stealing from a parent seeking treatment for a child is unconscionable,” stated FBI Assistant Director-in-Charge Sweeney.  “It may often seem as though white collar crimes don’t really impact people because it is mostly about money.  However this case proves the devastating real life consequences criminals can have on their victims, and the FBI works diligently every day to bring justice to everyone who is unfortunately impacted by fraudsters like Mr. Sozio.”

 “Liars, cheats and scammers should know that karma is always a handcuff away. Today’s plea represents the hard work and dedication of law enforcement to follow the facts and the money in investigations like these to ensure there is justice for victims,” stated USPIS Inspector-in-Charge Bartlett.

According to court filings and facts presented at the plea proceeding, between March 2014 and December 2016, Sozio applied for and obtained approximately $770,000 in loans for a business offering hyperbaric oxygen services as a form of medical treatment.  In the applications submitted to lenders, Sozio falsely represented that his business partners had authorized him to apply for these loans on their behalf.  Sozio used the loan proceeds for his personal benefit, leaving his former partners liable for the full amount. 

Additionally, between September 2016 and December 2016, Sozio charged the parent of a minor child, who had received some hyperbaric oxygen treatments, approximately $230,000 for services that he falsely claimed had been provided.     

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

 

The Defendant:

MARCELLO SOZIO
Age:  62
Huntington, New York

E.D.N.Y. Docket No. 18-CR-58 (DRH)

Earlier today, Eugenio Perez was sentenced before Judge Kiyo A. Matsumoto in U.S. District Court in Brooklyn, New York to 25 years’ imprisonment following his convictions on six counts of deprivation of civil rights under color of law, four counts of aggravated sexual abuse, five counts of sexual abuse in a federal prison, six counts of sexual abuse of a ward, one count of attempted sexual abuse of a ward, and one count of abusive sexual contact.  As part of his sentence, Perez is also required to register as a sex offender.  At the time of the offenses, Perez was a federal correctional officer with the rank of Lieutenant employed by the United States Bureau of Prisons (BOP) at the Metropolitan Detention Center in Brooklyn, New York (MDC).  In January 2017, he was suspended by the BOP after his arrest.  Perez was convicted after a two-week jury trial in May 2018.   

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Guido Modano, Special Agent-in-Charge, United States Department of Justice Office of the Inspector General, New York Field Office (DOJ OIG), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“While serving as a Lieutenant at the MDC, the defendant used force, fear and intimidation to violate his sworn duty and the civil rights of multiple female inmates in his custody through repeated sexual abuse of his victims,” stated United States Attorney Donoghue.  “Today’s sentence appropriately reflects the gravity and seriousness of the defendant’s crimes, and demonstrates our steadfast commitment to hold accountable correctional officers who abuse their positions of authority.” 

“Perez abused his power and took advantage of female inmates under his control and supervision through manipulation and intimidation,” stated DOJ OIG Special Agent-in-Charge Modano.  “He betrayed his duty as an officer of the Department of Justice and used his position of authority to satisfy his own desires by victimizing inmates.  Today’s sentence shows that this kind of abuse will not be tolerated, and those who violate the civil rights of federal inmates, and disgrace the honorable profession of federal correctional officers will sternly be brought to justice.”

 “We are a society governed by law, and we expect and demand that those convicted of crimes receive humane punishment according to the law,” stated FBI Assistant Director-in-Charge Sweeney.  “Correctional officers have a truly difficult job, and most perform their duties with honor and integrity. Today’s sentencing reflects the accountability we demand of those who hold these positions of power. Sexual abuse in correctional facilities will never be tolerated by the FBI or our law enforcement partners.”

Over a three-year period between January 2013 and September 2016, Perez used his position as an officer at the MDC to engage in sexual acts and contact with five female inmates under his supervisory and disciplinary authority.  The victims, identified in the indictment as “Jane Doe #1” through “Jane Doe #5,” testified that Perez lured them into isolated locations, used physical force and intimidation to compel the victims to engage in  sexual acts with him, including oral sex, and used his authority over them to ensure that they did not report the abuse.

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

The Defendant:

EUGENIO PEREZ
Age: 49
Brooklyn, NY

E.D.N.Y. Docket No. 17-CR-280 (KAM)

 

Earlier today, George Gonzalez, a former officer with the Federal Bureau of Prisons assigned to the Metropolitan Detention Center in Brooklyn (MDC), was sentenced to seven years’ imprisonment by United States District Judge Roslynn R. Mauskopf.  Gonzalez pleaded guilty on March 16, 2018 to one count of solicitation to commit a crime of violence and one count of possession of a firearm while subject to a protective order.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Guido Modano, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General, New York Field Office (DOJ OIG), announced the guilty plea.

“Gonzalez, a former federal correctional officer, will fittingly serve time in a prison cell for soliciting an inmate, and a hit team he believed were gang members, to brutally attack his former wife and her spouse,” stated United States Attorney Donoghue.  “Thanks to the swift response of our law enforcement partners, including the ATF undercover agents, Gonzalez’s plan was thwarted.”  Mr. Donoghue expressed his grateful appreciation to the United States Bureau of Prisons for their assistance during the investigation.

“Mr. Gonzalez hatched a plan that would have resulted in a brutal attack on his estranged wife and her new partner. Today’s sentencing sends a loud and clear message that those planning heinous acts of violence will be met with swift justice and appropriate punishment by our criminal justice system,” stated ATF Special Agent-in-Charge Devito.  “ATF stands firm on protecting the public from violent criminals of all kinds. I would like to thank the Special Agents and Task Force Officers of the NYPD/ ATF Joint Robbery Task Force, the Federal Bureau of Prisons and the Office of the Inspector General for their coordination and diligent efforts on this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”

“In the process of attempting to carry out a brutal attack, Gonzalez put many lives at risk and abused his authority with extremely violent intentions,” stated DOJ OIG Special Agent-in-Charge Modano.  “Federal inmates should never be solicited for crimes, not least by correctional officers.  This case should serve as an example to anyone that dares to threaten the integrity of the law enforcement profession.”

In November 2016, Gonzalez approached an inmate under his supervision and asked him to locate someone willing to carry out a “hit.”  The inmate reported the request to law enforcement.  Thereafter, Gonzalez had multiple recorded meetings and conversations with individuals he believed to be gang members, but who were actually undercover ATF agents.  Gonzalez offered to pay them to have his ex-wife and her new spouse assaulted and tortured, and make it “look like a robbery.”   He added that they should “take a hammer to the spine” so that the victims would be paralyzed and “suffer … for the rest of their lives … that’s how I do business … I have no compassion for anybody.”  Gonzalez then provided the supposed gang members with photographs and pedigree information of the intended victims.

Agents executed a search warrant at the defendant's residence in Staten Island, and seized two loaded, unlicensed handguns.  At the time he solicited the attacks, Gonzalez was subject to an order of protection issued by the Richmond County Family Court, prohibiting him from having any contact with his ex-wife and requiring him to surrender any firearms in his possession.

Assistant U.S. Attorney Artie McConnell is in charge of the prosecution.

The Defendant:

George Gonzalez
Age: 56
Staten Island, New York

E.D.N.Y. Docket No. 17-CR-51 (RRM)

Earlier today, in federal court in Brooklyn, Wendell Alomar-Cabrera, a citizen of the Dominican Republic, was sentenced by United States District Judge Nicholas G. Garaufis to 25 years’ imprisonment for his role in the October 16, 2006, murder of Luis Sifuentes in Durham, North Carolina.  In November 2013, Alomar-Cabrera pleaded guilty to the murder of Sifuentes, which was committed during the course of a kidnapping and robbery.

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

“Through his involvement in violent armed robberies and a murder, Alomar-Cabrera earned today’s sentence,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue to use every available resource to investigate and prosecute violent criminals like this defendant.”  Mr. Donoghue expressed his grateful appreciation to the Bronx County District Attorney’s Office, the United States Drug Enforcement Administration and New York City Police Department for their outstanding role leading the investigation, and thanked the New York State Police, the Durham County District Attorney’s Office and the Durham, North Carolina Police, Special Operations Division, Major Crimes Unit for their assistance.

Between May 2003 and August 2008, the robbery crew was responsible for more than 100 violent, armed robberies of narcotics traffickers along the east coast of the United States.  Crew members posed as police officers to subdue narcotics traffickers and their families, and then kidnapped, tortured and robbed the victims.  Alomar-Cabrera participated in approximately 15 of the robberies that netted approximately 80 kilograms of cocaine, a quantity of marijuana and multiple guns.

In 2006, Alomar-Cabrera and other members of the crew traveled from New York to North Carolina for the purpose of robbing drug traffickers.  On October 16, 2006, crew members drove a vehicle equipped with lights and sirens, and executed a police-style stop of Sifuentes’ pickup truck after he left a nightclub.  The crew kidnapped Sifuentes near Durham and drove him to a rented house where, for several hours, Alomar-Cabrera and other crew members beat Sifuentes with their fists and a wooden stick, pushed his head under water in a bathtub and burned him with a hot knife in an effort to learn the location of the victim’s drugs and drug money.  Several hours later, crew members carried Sifuentes outside, put him in his truck and shot him twice, killing him.  Alomar-Cabrera then poured gasoline throughout the truck and set it on fire.

Alomar-Cabrera’s sentence is the most recent of more than 50 convictions and sentencings in a group of interlocking cases brought in the Eastern District of New York against members of violent drug robbery crews who impersonated police officers and frequently committed robberies with real police officers.  Four other defendants have previously been sentenced for their roles in the murder of Sifuentes.

The government’s case is being prosecuted by Assistant United States Attorney Douglas M. Pravda.

The Defendant:

WENDELL ALOMAR-CABRERA (also known as “Gregorio”)
Age:  40
Dominican Republic

E.D.N.Y. Docket No. 08-CR-115 (NGG)

 

Earlier today, in federal court in Brooklyn, a criminal defense attorney, Scott Brettschneider, was sentenced by United States District Judge Carol B. Amon to 60 days of confinement in a community center, 4 years of probation, 80 hours of community service, and fined $2,000 for conspiring to make, and making, a false statement to the U.S. Bureau of Prisons (BOP).  Brettschneider was convicted following a five-day jury trial in April 2019 for his role in writing a false letter to the BOP to assist an inmate to gain entry to a substance abuse program and thereby obtain an early release from 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 sentence.

“Brettschneider has now been held accountable for breaking the law he had been sworn to uphold,” stated United States Attorney Donoghue.  “This Office is committed to prosecuting those who defraud federal programs.”  Mr. Donoghue extended his grateful appreciation to the FBI, which led the investigation, and thanked the Queens District Attorney’s Office for their assistance in the case.
Brettschneider and two co-defendants agreed to prepare and submit a fraudulent letter to the BOP about the drug treatment history of inmate Richard Marshall - Brettschneider’s client and a source of client referrals.  If successful, their scheme would have resulted in Marshall’s gaining entry to the Residential Drug Abuse Program in prison, and potential early release from custody.  Brettschneider tasked his part-time paralegal, Reginald Shabazz-Muhammad, with the job of writing the fraudulent letter, and co-defendant Charles Gallman acted as the middleman between Marshall and Brettschneider.                      

Marshall pleaded guilty to conspiracy to make false statements, and was sentenced on October 6, 2018 to three years’ probation and a fine of $1,500.  Shabazz-Muhammad pleaded guilty to making false statements, and was sentenced on January 30, 2019 to two years’ probation and a fine of $1,000.  Gallman pleaded guilty to conspiracy to make false statements and to violating the Travel Act for bribing a witness, and was sentenced on March 20, 2019 to three years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section.  Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Margaret Gandy are in charge of the prosecution.

The Defendant: SCOTT BRETTSCHNEIDER (also known as “Mighty Whitey”)
Age:  62
Mint Hill, North Carolina

Defendants Who Previously Pleaded Guilty and Were Sentenced: CHARLES GALLMAN (also known as “T.A.”)
Age:  57
Queens, New York

RICHARD MARSHALL (also known as “Love”)
Age:  57
Charlotte, North Carolina

REGINALD SHABAZZ-MUHAMMAD
Age:  63
Queens, New York

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

A criminal complaint was unsealed yesterday in federal court in Central Islip charging Lawrence Ross with conspiring to distribute, and distributing, more than 10 kilograms of ecstasy and more than 45 grams of methamphetamine.  The defendant’s initial appearance was yesterday afternoon before United States Magistrate Judge Arlene R. Lindsay, who ordered him detained.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and Angel M. Melendez, Special Agent-in-Charge, United States Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI) announced the charges.  

 “As alleged, Ross sold ecstasy and crystal methamphetamine via the dark web and Wickr in exchange for Bitcoin, and then shipped the drugs to his customers through the U.S. mail,” stated United States Attorney Donoghue.  “Drug traffickers who believe they will escape detection by using the dark web, encrypted messaging applications and cryptocurrency should understand that they are not anonymous, their activities will be uncovered, and they will be prosecuted.”  Mr. Donoghue expressed his grateful appreciation to the Suffolk County District Attorney's Office Heroin Task Force for their assistance in the investigation.

“This arrest highlights the benefits of cooperation and collaboration between law enforcement agencies.  Through these partnerships, we are keeping our communities safe from the spread of illegal narcotics purchased through the dark web,” stated USPIS Inspector-in- Charge Bartlett.

“Ross allegedly imported and manufactured his own drugs and used the veil of the dark-net to distribute his illicit products,” said HSI Special Agent-in-Charge Melendez. “More and more criminals are seeking ways to use the dark web to further their illegal enterprise, but law enforcement continues to evolve in its investigations to locate these vendors and bring them out of the shadows to face justice.”

Between November 2018 and the present, Ross allegedly sold controlled substances on the dark web, communicated with customers using the Wickr encrypted messaging application, distributed the drugs through the U.S. mail, and accepted the Bitcoin cryptocurrency as payment.  The investigation began when a parcel containing ecstasy was seized by the Postal Inspection Service and was traced to Ross.  An undercover postal inspector began purchasing controlled substances from Ross at screenname “Gladyman” through various dark web marketplaces.  Ross advertised on his “Gladyman” dark web profile that customers could contact him via the Wickr at screenname “Sweettooth80,” and the undercover postal inspector began communicating with Ross using Wickr.    

On May 31, 2019, using Wickr, the postal inspector ordered 100 ecstasy pills from Ross at screenname “Sweettooth80” and transferred $1,000 worth of Bitcoin to Ross’s digital wallet.  Several hours later, at the Islip Post Office, Ross mailed 33 packages, including one addressed to the postal inspector’s undercover name.  That package was seized and contained 100 pills that tested positive for Ecstasy. 

On June 5, 2019, again using Wickr, the postal inspector ordered five grams of crystal methamphetamine from Ross at screenname “Sweettooth80.”  The postal inspector then transferred $228.17 worth of Bitcoin to Ross’s digital wallet.  Ross mailed 61 packages at the Bay Shore Post Office, including a package addressed to the postal inspector’s undercover name.  The package was seized by postal inspectors and contained approximately five grams of a substance that tested positive for crystal methamphetamine.

A search warrant was executed at Ross’s residence yesterday, and postal inspectors recovered over 10 kilograms of ecstasy with a street value of approximately $1.5 million, a pill press for the manufacturing of controlled substances, approximately $250,000 of Bitcoin cryptocurrency and approximately $50,000 of U.S. currency. 

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

If convicted, the defendant faces a sentence of up to 20 years’ imprisonment.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant U.S. Attorneys Lara Treinis Gatz and Artie McConnell are in charge of the prosecution.

The Defendant:

Lawrence Ross
Age: 39
Brentwood, New York

E.D.N.Y. Docket No. 19-MJ-665

Earlier today, at the federal courthouse in Central Islip, Carlos Argueta, also known as “Violento,” “Desorden” and “Dylan,” the former leader of the Freeport Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering and firearms charges for his participation in the January 15, 2016 attempted murder of a suspected rival gang member outside the Brentwood public library, and the June 3, 2016 murder in Brentwood of Jose Pena, an MS-13 member who was suspected of violating the gang’s rules.  The guilty plea was entered before United States Circuit Judge Joseph F. Bianco.

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 guilty plea.

“With today’s guilty plea, Argueta admitted that while free on bail for shooting a gang rival in broad daylight outside a public library less than six months earlier, he planned and carried out the vicious murder of a fellow gang member on behalf of the MS-13,” stated United States Attorney Donoghue.  “This Office, together with the FBI’s Long Island Gang Task Force, will continue working tirelessly to eradicate MS-13 and hold its members accountable for their senseless violence.” 

“The twisted code the members and leadership of the MS-13 adhere to doesn't make sense to anyone outside of the gang,” stated FBI Assistant Director-in-Charge Sweeney.  “They brutally take the lives of people because they didn’t follow the rules.  There is no world where those thought processes and behaviors are okay.  Our FBI Long Island Gang Task Force is doing all it can to root out all the violence this gang has created and bring those responsible to justice.”

“This guilty plea ensures that another member of MS-13 will face up to life in prison for killing a member of his own gang and attempting to murder a suspected rival gang member—two cases that are a reminder of the heinous nature of this transnational gang,” stated SCPD Commissioner Hart.  “We applaud the effort of prosecutors to ensure Argueta would be tried as an adult to face the stiffest penalties possible.  I would like to thank the Eastern District of New York and our partners on the FBI Long Island Gang Task Force for their continued partnership and commitment in bringing gang members to justice.”

“The guilty plea of defendant and MS-13 member Carlos Argueta should serve as an example of how multi-jurisdictional law enforcement agencies collaborate to bring violent defendants like these to justice,” stated NCPD Commissioner Ryder.  “The tireless work of the dedicated men and women of these agencies have made our communities and streets safer, and I would like to congratulate all for a job well done.  As we continue our zero tolerance approach toward illegal gangs, this defendant’s blatant disregard for society and life will be met with incarceration.”   

As set forth in prior court filings and the defendant’s statements during his guilty plea, Argueta and several other MS-13 members confronted three suspected rival gang members outside a public library in Brentwood on January 15, 2016.  Argueta removed a .45 caliber semi-automatic handgun from his waistband and shot one of the men, identified as John Doe in the superseding indictment, in the torso.  Argueta and the other MS-13 members then fled.  The wounded victim received medical treatment and survived. 

Argueta, Pena and a third MS-13 member were subsequently arrested by Suffolk County Police Officers in connection with the attempted murder of John Doe, and were released on bail.  Argueta subsequently demanded to see the other two MS-13 members’ arrest paperwork in connection with the shooting.  Argueta then informed other members of the Freeport clique that he suspected that Pena, a member of the Normandie clique of the MS-13, had cooperated with the SCPD.  Additionally, members of the MS-13 suspected that Pena was homosexual, which is unacceptable under the rules of the MS-13.

After consulting with MS-13 leaders in El Salvador, Argueta and other MS-13 members agreed to kill Pena and Argueta assigned tasks to other MS-13 gang members, including procuring weapons and a vehicle to be used in the murder.  On June 3, 2016, Argueta and other MS-13 members lured Pena into a car, and drove to a secluded wooded area in Brentwood.  After walking into the woods, the group attacked Pena, taking turns stabbing and slashing him with knives, and killing him.  More than four months thereafter, Pena’s body was found. 

On September 20, 2016, Argueta, who was 16 years old at the time of the crimes, was arrested by the FBI’s Long Island Gang Task Force, and charged in juvenile informations filed under seal.  The government subsequently filed a motion to transfer Argueta to adult status for prosecution, and an evidentiary hearing was held on the transfer motion.  On September 7, 2017, Judge Bianco issued a Memorandum and Order granting the government’s motion, and ordered that Argueta be prosecuted as an adult.  Argueta appealed, and on December 20, 2018, the Second Circuit Court of Appeals affirmed Judge Bianco’s decision.

When sentenced, Argueta faces a maximum of life in prison.  Upon completion of his sentence, Argueta, an illegal alien from El Salvador, faces deportation from the United States.

Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent 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:

Carlos Argueta (“Violento,” “Desorden” and “Dylan”)
Age: 20
Brentwood, New York

E.D.N.Y. Docket No. 16-CR-510 (S-2) (JFB)

Earlier today, in federal court in Central Islip, Hal Abrahamson, a podiatrist with offices in Plainview, Long Island, and Rego Park, Queens, was sentenced by United States District Judge Denis R. Hurley to one year and a day in prison for his role in a health care fraud scheme.  The Court also ordered Abrahamson to pay restitution of $869,651, a $50,000 fine and forfeit $177,000.  On June 26, 2018, Abrahamson pleaded guilty to health care fraud in connection with the operation of his podiatry practice.   

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, United States Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), announced the sentence.

“Greed dictated this doctor’s billing practices,” stated United States Attorney Donoghue.  “The defendant stole a million dollars from Medicare and private insurance companies but has been brought to justice.”  Mr. Donoghue thanked the FBI and HHS-OIG for their outstanding work on the case. 

According to court documents and as established at the plea proceeding, Abrahamson’s health care fraud scheme was ongoing from January 2013 until January 2017.  Abrahamson used several fraudulent billing techniques over the years, including: (i) billing for skin grafts and wound packing services never performed, (ii) billing for work purportedly done by another podiatrist whose reimbursement rate was higher, but which was in fact done by Abrahamson, or not at all, and (iii) billing for more expensive procedures than those actually performed.  Regarding the fraudulent billing for skin grafts, Abrahamson billed for this procedure 1,092 times over a four year period in which a podiatrist with a comparable practice in Plainview billed only once and another podiatrist in the defendant’s office billed only five times. 

Regarding the fraudulent billing for wound packing, Abrahamson billed for this procedure 757 times over a four-year period, and would routinely add this to his false billing under another podiatrist’s name. 

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:

HAL ABRAHAMSON
Age:  57
Melville, New York

E.D.N.Y. Docket No. 18-CR-314 (DRH)

 

A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Ruslan Maratovich Asainov, a naturalized U.S. citizen born in Kazakhstan with providing and attempting to provide material support, including training, services and personnel, to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of 18 U.S.C. § 2339B.  Asainov was detained overseas by the Syrian Democratic Forces (SDF) and recently transferred into FBI custody.  Asainov’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Steven M. Gold at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director Mike McGarrity for the FBI’s Counterterrorism Division, Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office FBI and Commissioner James P. O’Neill of the New York City Police Department (NYPD).

As alleged in the complaint and other court filings, the defendant resided in Brooklyn, New York.  In December 2013, the defendant traveled to Istanbul, Turkey, which is 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, the defendant 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. 

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 depicting the defendant holding an assault rifle fitted with a scope. He messaged one associate exclaiming, in reference to ISIS, “we are the worst terrorist organization in the world that has ever existed” and stating that he wished to die on the battlefield.

“The United States is committed to holding accountable those who have left this country in order to fight for ISIS,” said Assistant Attorney General Demers.  “As alleged in the court filings, Asainov traveled overseas, joined ISIS, and became a fighter and a sniper for the terrorist organization.  He was ultimately detained overseas, turned over to the FBI, and will now face justice in an American courtroom.  We hope countries around the world, including our European allies and partners, will likewise repatriate and prosecute their own citizens for traveling to support ISIS.”

“The defendant, a naturalized U.S. citizen residing in Brooklyn, turned his back on the country that took him in and joined ISIS, serving its violent ends in Syria and attempting to recruit others to its cause,” stated U.S. Attorney Donoghue.  “Our counterterrorism prosecutors and law enforcement partners will continue working relentlessly to hold accountable those like the defendant who have supported ISIS’s violent agenda.” 

“As this case shows, the FBI remains committed to doing our part to ensure that justice is served to those who travel, or attempt to travel, to join and fight with ISIS” said Assistant Director Mike McGarrity.  “Combatting terrorism remains the FBI’s top priority and we will continue working with our U.S. government partners and foreign law enforcement entities around the world to do so.”

“Some go to great lengths to join groups, such as ISIS, to fight on behalf of terrorist ideologies, and to recruit others to travel in support of their misguided principles,” said Assistant Director in Charge Sweeney.  “As we allege today, Asainov left this country to do just that. He turned his back on the ideals we value, and he’ll now be made to face our justice system head-on.”

“This arrest serves as a warning to anyone anywhere in the world who intends to support or conduct attacks on behalf of terrorist groups against the United States – you will be brought to justice,” said NYPD Commissioner O’Neill.  “I would like to thank our investigators and law enforcement partners for their outstanding work in taking Mr. Asainov off the battlefield and placing him into American custody.”

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

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

A criminal complaint was unsealed today in federal court in Brooklyn charging Ruslan Maratovich Asainov, a naturalized U.S. citizen born in Kazakhstan, with providing and attempting to provide material support, including training, services and personnel, to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.  Asainov was detained overseas by the Syrian Democratic Forces (SDF), and transferred into the custody of the Federal Bureau of Investigation (FBI) on Wednesday.  Asainov’s initial appearance is scheduled for today before United States Magistrate Judge Steven M. Gold.

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, 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 alleged in the complaint and other court filings, the defendant is a naturalized U.S. citizen who resided in Brooklyn.  In December 2013, Asainov traveled 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. 

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 depicting the defendant holding an assault rifle fitted with a scope.  He messaged one associate exclaiming, in reference to ISIS, “we are the worst terrorist organization in the world that has ever existed,” and stating that he wished to die on the battlefield.

“The defendant, a naturalized U.S. citizen residing in Brooklyn, turned his back on the country that took him in and joined ISIS, serving its violent ends in Syria and attempting to recruit others to its cause,” stated United States Attorney Donoghue.  “Our counterterrorism prosecutors and law enforcement partners will continue working relentlessly to hold accountable those like the defendant who have supported ISIS’s violent agenda.” 

“The United States is committed to holding accountable those who have left this country in order to fight for ISIS,” stated Assistant Attorney General Demers.  “As alleged in the court filings, Asainov traveled overseas, joined ISIS, and became a fighter and a sniper for the terrorist organization.  He was ultimately detained overseas, turned over to the FBI, and will now face justice in an American courtroom.  We hope countries around the world, including our European allies and partners, will likewise repatriate and prosecute their own citizens for traveling to support ISIS.”

 “As this case shows, the FBI remains committed to doing our part to ensure that justice is served to those who travel, or attempt to travel, to join and fight with ISIS” stated FBI Assistant Director McGarrity.  “Combatting terrorism remains the FBI’s top priority and we will continue working with our U.S. government partners and foreign law enforcement entities around the world to do so.”

“Some go to great lengths to join groups, such as ISIS, to fight on behalf of terrorist ideologies, and to recruit others to travel in support of their misguided principles. As we allege today, Asainov left this country to do just that. He turned his back on the ideals we value, and he’ll now be made to face our justice system head-on,” stated FBI Assistant Director-in-Charge Sweeney.

“This arrest serves as a warning to anyone anywhere in the world who intends to support or conduct attacks on behalf of terrorist groups against the United States – you will be brought to justice.  I would like to thank our investigators and law enforcement partners for their outstanding work in taking Mr. Asainov off the battlefield and placing him into American custody,” stated NYPD Commissioner O’Neill.

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

The government’s case is being handled by the Office’s 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: 42
Syria and Bay Ridge, Brooklyn

E.D.N.Y. Docket No. 18-MJ-606

A criminal complaint was unsealed today in federal court in Brooklyn charging Garrett O’Rourke, also known as “Jonathan Banks,” with engaging in a fraudulent scheme to artificially control the price and volume of AVI Group Inc., a publicly-traded company listed under the OTC ticker symbol “AVOP,” by making false and misleading statements to investors.  AVOP purported to be a holding company focusing on acquisitions and joint ventures, including the development of dental equipment, a “vape superstore” and lighting technology.  O’Rourke was arrested yesterday at John F. Kennedy International Airport, made his initial appearance this afternoon before United States Magistrate Judge Steven M. Gold and was released on a $1 million 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, New York Field Office (FBI), announced the charges.

According to court filings, between April 2016 and June 2017, O’Rourke engaged in a securities fraud conspiracy to mislead investors into purchasing shares of AVOP by claiming, among other things, that he and his co-conspirators worked for Marketwise Report, a purported investment advising firm located in Florida that offered stock advice to clients.  In reality, O’Rourke and his co-conspirators did not work for this fictitious entity and instead worked in call rooms based in Florida and Medellin, Colombia.  O’Rourke and his co-conspirators made misrepresentations and false statements to induce investors to purchase and retain AVOP stock in order to profit for themselves.  By persuading numerous investors to purchase AVOP stock, O’Rourke and his co-conspirators were able to “pump” AVOP’s stock price.  Then, once the stock price had artificially increased, a co-conspirator “dumped” over $2 million in shares at the artificially inflated prices and shared the profits from the sale with O’Rourke and other co-conspirators. 

“As alleged in the complaint, O’Rourke supervised a call room in Florida where he and his co-conspirator fraudsters fleeced investors by spinning false claims about a publicly traded stock in a classic pump and dump scheme designed to line their own pockets,” stated United States Attorney Donoghue.  “The defendant’s arrest demonstrates this Office’s commitment to protecting the investing public and vigorously prosecuting those who undermine the integrity of the financial markets.”  Mr. Donoghue expressed his grateful appreciation to the Securities and Exchange Commission, both the New York and Boston Regional Offices, for their assistance with the investigation.

“It’s important for investors to know these pump-and-dump schemes still exist,” stated FBI Assistant Director-in-Charge Sweeney. “While O’Rourke faces charges for the crimes he allegedly committed, there are others out there who seek to take advantage of people who unwittingly invest more than their hard-earned money on lies they’re sold. We urge the general public to exercise due diligence with any investment they plan to make, and to look out for friends and family who might be easily swindled by crooks who are up to no good.”

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

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

The Defendant:

GARRETT O’ROURKE (also known as “Jonathan Banks”)
Age:  31
Miami Beach, Florida

E.D.N.Y. Docket No. 19-MJ-644

A three-count indictment was unsealed today in federal court in Brooklyn charging Devone Jefferys, also known as “Moneybags,” with Hobbs Act robbery conspiracy, attempted Hobbs Act robbery, and possessing and brandishing a firearm during an attempted home invasion robbery.  Jefferys was arrested this morning, and is scheduled to be arraigned tomorrow before United States Magistrate Judge Steven M. Gold.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.

As alleged in the indictment and other court filings, in the early morning hours of July 31, 2015, Jefferys and his co-conspirators entered an apartment building in Williamsburg, Brooklyn, to steal heroin and money from a drug dealer who resided there with family members.  Posing as NYPD officers, Jefferys and his co-conspirators entered the victims’ apartment, drew their firearms and bound several victims with duct tape.  When the robbers discovered that one of the victims had thrown a bag of heroin out a window, Jefferys forcibly removed one of the women from the apartment, and took her to a back alley to search for the drugs.  When he was unable to find the bag of heroin, Jefferys forced the woman to perform oral sex on him at gunpoint, and then raped her before fleeing.

 “Posing as NYPD officers and brandishing firearms, Jefferys and his co-conspirators terrorized victims of an attempted home invasion robbery, with Jefferys escalating the violence still further by raping a female victim,” stated United States Attorney Donoghue.  “Together with our law enforcement partners, we will work unceasingly to protect residents of our communities from this type of senseless violence.”

Jeffery’s and his co- conspirators are alleged to have committed horrific crimes that may also leave deep mental and emotional scars on their victims,” stated ATF Special Agent-in-Charge Devito.  “The ATF/NYPD Joint Robbery Task Force will work in lockstep with our partners in the United States Attorney’s Office to identify, pursue and successfully prosecute individuals like this to ensure that justice is brought to the unjust. We will continue to send the message to both the perpetrators and their victims that the law enforcement community will not allow lawless behavior and will use every resource at its disposal to protect the public from violence.  I would like to thank all of our partners that put effort into this case and will continue to work until justice is served.

 “This case is a reminder of the heinous acts that are too often associated with drugs and drug money,” said NYPD Commissioner O’Neill. “But those who would commit crimes like these – rape, armed robbery – should know that law enforcement professionals like those at the NYPD, the ATF and the US Attorney are driven by a desire to apprehend them and build strong cases against them. I want to thank the investigators who worked on this case. It is our hope that there will now be a successful prosecution and that this process helps the victims as they continue to heal.”

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

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

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorney Ryan Harris is in charge of the prosecution.

The Defendant:

DEVONE JEFFERYS (also known as “Moneybags”)
Age:  27
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-359

BROOKLYN, NY – Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was sentenced today by United States District Judge Brian M. Cogan to life imprisonment plus 30 years to run consecutive to the life sentence for being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy.  The Court also ordered Guzman Loera to pay $12.6 billion in forfeiture. 

Guzman Loera was convicted by a federal jury on February 12, 2019, following a three-month trial, of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. 

The sentence was 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; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Uttam Dhillon, Acting Administrator, U.S. Drug Enforcement Administration (DEA); Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); Kevin McAleenan, Acting Secretary, United States Department of Homeland Security; Derek Benner, Executive Associate Director, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Bryan T. Mullee, Acting U.S. Marshal, Eastern District of New York; James P. O’Neill, Commissioner, New York City Police Department (NYPD); and Keith M. Corlett, Superintendent, New York State Police (NYSP).

The evidence at trial established that Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing more than a million kilograms of cocaine, marijuana, methamphetamine and heroin in the United States.  The evidence included testimony from 14 cooperating witnesses, including Sinaloa Cartel members Rey and Vicente Zambada, Miguel Martinez, Tirso Martinez, Damaso Lopez and Alex Cifuentes; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings that detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.    

From the mid-1980s until his arrest in Mexico in 1993, Guzman Loera was a mid-level operative of the Sinaloa Cartel, earning a name for himself and the nickname “El Rapido” for how quickly he transported drugs from Mexico to the United States for the Colombian cartels.  After he escaped from a Mexican prison in 2001 by hiding in a laundry cart, Guzman Loera formed an alliance with fugitive co-defendant Ismael Zambada Garcia and, together, they became the preeminent leaders of the Sinaloa Cartel. Guzman Loera enforced his will and maintained control of his drug empire through an army of lethal “sicarios” or hitmen and a sophisticated communications network.

The trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels.  Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere.  Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.

Guzman Loera and his organization relied upon violence to maintain its power throughout the region and beyond.  Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and slaughter members of rival drug organizations, at times carrying out acts of violence himself.  As part of its arsenal, the Sinaloa Cartel had access to weapons, including grenades and a rocket-propelled grenade launcher.  Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.” 

Guzman Loera and his organization also relied on a vast network of corrupt government officials and employees to protect and further the interests of the Sinaloa Cartel.  They included local law enforcement officers, prison guards, high-ranking members of the armed forces, and elected office holders.  In exchange, the Cartel paid these individuals millions of dollars in bribes.  

“Guzman Loera’s day of reckoning has finally come.  Never again will he pour poison into our country, or make millions as innocent lives are lost.  We cannot undo the violence, misery and devastation inflicted on countless individuals and communities as result of his organization’s sale of tons of illegal drugs for more than two decades, but we can ensure that he spends every minute of every day in prison,” stated United States Attorney Donoghue.  “The same fate awaits those who would take his place.  I thank the brave members of law enforcement, here and abroad, for their tireless efforts that have finally secured justice in this case.”

“The long road that brought ‘El Chapo’ Guzman Loera to a United States courtroom is lined with drugs, death, and destruction, but ends today with justice,” said Assistant Attorney General Benczkowski.  “Thanks to the unflagging efforts of the Department of Justice and the law enforcement community over the past 25 years, this notorious leader of one of the largest drug trafficking organizations in the Western hemisphere, the Sinaloa Cartel, will spend the rest of his life behind bars.”

“The life sentence imposed today is the only just result for someone who spent a lifetime spreading his poison throughout our country.   The impact of keeping former Sinaloa Cartel leader Joaquin Guzman Loera behind bars, for the rest of his life, cannot be overstated: the world will now be shielded from his brutality,” said U.S. Attorney Fajardo Orshan.  “Thanks to the unyielding efforts of this team, the public was finally able to see how Guzman Loera used any means necessary to control his ruthless empire, including kidnapping, corruption, torture, and murder.  Our U.S. Attorney’s Offices continue to stand shoulder to shoulder with our domestic and foreign law enforcement partners to protect our citizens from the scourge of illicit drugs.”

“This sentencing shows the world that no matter how protected or powerful you are, DEA will ensure that you face justice,” stated DEA Acting Administrator Uttam Dhillon. “This result would not have been possible without the dedication and determination of so many brave men and women of the Drug Enforcement Administration, who worked tirelessly to see the world’s most dangerous, prolific drug trafficker behind bars in the United States. This is a huge victory for the rule of law, for thousands of current and retired DEA agents and analysts worldwide, and for all of our law enforcement partners here, in Mexico, and across the globe.”

“Today’s sentencing is the culmination of years of effort from numerous local, state, federal, and international partners,” stated FBI Director Wray.  “It highlights the dedication and determination of men and women in law enforcement to bring one of the world's most notorious drug traffickers to justice. The FBI has no tolerance for those who endanger our communities and destroy lives through drugs and violence.  We’ll continue to work day and night to find and stop those who distribute illegal substances and commit unimaginable violence.” 

“On behalf of the Department of Homeland Security, I want to express my gratitude to our HSI agents and diligent law enforcement partners for their work in this monumental conviction,” said Acting Secretary of Homeland Security McAleenan. “This sentence will send a resounding message that transnational criminal organizations all over the world are being continuously investigated and their leaders will be brought to justice.”

“After a decade long investigation, Joaquin Archivaldo Guzman Loera’s reign over the Sinaloa Cartel is over,” said Derek N. Benner, Executive Associate Director for HSI. “Because of the initiative and expertise of HSI Special Agents in New York and Phoenix working together with our law enforcement partners,  ‘El Chapo’ will no longer be able to inflict violence or traffic vast amounts of illegal drugs into our communities.”

“The United States Marshals Service was tasked with ensuring the integrity of the judicial process in this case,” stated Acting U.S. Marshal Mullee of the Eastern District of New York.  “It was paramount that all participants in the case could operate without undue influence or fear in a secure environment, and we accomplished that. On behalf of the United States Marshals Service in the Eastern District of New York, I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission, most notably, the incredibly talented men and women of the New York City Police Department (NYPD), The Federal Protective Service (FPS), The 24th Civil Support Team of the New York National Guard and the Federal Bureau of Prisons (BOP).”

“Let today’s sentencing show the world that Joaquin “El Chapo” Guzman has not escaped the American justice system and, now, will finally be held accountable for his many years of criminal behavior,” said NYPD Commissioner James P. O’Neill. “I want to thank the members of the DEA, the FBI, the U.S. Marshals Service, Homeland Security Investigations, the New York State Police and the NYPD detectives on the Drug Enforcement Task Force for their hard work on this investigation and trial.”

“With this sentencing, justice has been served. For two decades, this individual used extreme violence, bribes, and any means necessary to bring dangerous and deadly drugs into our country and state,” stated NYSP Superintendent Corlett.  “This sentence should serve as a reminder that no one is above the law. I applaud our partners in law enforcement for their tireless work on this case, bringing an end to the destruction this man, and this enterprise caused for decades.”

The government’s case is being prosecuted by Assistant U.S. Attorneys Gina Parlovecchio, Michael Robotti, Patricia Notopoulos, Hiral Mehta, Soumya Dayananda and Brendan King from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg and Lynn Kirkpatrick from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Brett Reynolds and Michael Lang of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.

The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities.  Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, Western District of Texas, Southern District of New York, Southern District of California, District of New Hampshire, District of Arizona and Eastern District of Virginia.  The Department of Justice Office of International Affairs played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his prosecution would not have been possible.  The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office, ICE HSI New York, ICE HSI Nogales, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Internal Revenue Service - Criminal Investigation, U.S. Bureau of Prisons, NYPD and New York State Police.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies.  The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

A federal jury in Brooklyn returned a guilty verdict today against Ronell Watson for attempted murder of a federal officer, assault of a federal officer and possessing and discharging a firearm during a crime of violence in connection with the shooting of Christopher Harper, a Special Agent of the Federal Bureau of Investigation (FBI).  On December 8, 2018, Harper was on duty and performing his official duties when he was shot and wounded by the defendant.  The verdict followed a two-week trial before United States District Judge William F. Kuntz II.  When sentenced, Watson faces up to life in prison.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, announced the verdict.

“As found by the jury, FBI Special Agent Harper was performing his official duties last December when the defendant attempted to execute him without any warning,” stated United States Attorney Donoghue.  “Despite sustaining life threatening injuries, Special Agent Harper performed courageously, returning fire and wounding the defendant, actions that led to Watson’s capture soon thereafter.  I would like to thank the jury for carefully weighing the evidence.  With today’s verdict, Watson has been held responsible for his nearly taking the life of a brave agent.” Mr. Donoghue also expressed his grateful appreciation to the New York City Police Department for its assistance during the investigation and the medical staff at Kings County Hospital for saving Special Agent Harper’s life.

“Special Agent Harper was doing his job, conducting surveillance for an FBI investigation, when he was randomly attacked and shot by a man who wasn’t even the target of the surveillance,” stated FBI Assistant Director-in-Charge Sweeney.  “As law enforcement, we face dangerous situations every day, but we continue to do all we can to keep the community safe and stop criminals.  Today, a jury of the citizens we protect saw the evidence and judged Ronell Watson attempted to murder an FBI agent.”

The evidence at trial established that on December 8, 2018, Special Agent Harper was on-duty, sitting in an unmarked Nissan Maxima on Canarsie Road, a one-way street, conducting a surveillance in an unrelated case.  At approximately 3:20 p.m., Watson, driving a BMW sedan in the wrong direction, approached the agent’s vehicle.  Watson partially blocked the agent’s vehicle, exited the BMW and approached the agent’s driver’s side door with his hand inside the pocket of his sweatshirt.  Harper testified at trial that he was speaking to his wife on FaceTime at the time and told her “somebody shady is walking up to my car.” Harper placed the phone on the center console, but did not hang up.  As Harper tried to maneuver his vehicle around the BMW to escape, Watson pulled a handgun out of his pocket and fired multiple shots at Harper, wounding him in the back.  Agent Harper then drove to the corner and stopped, exited his vehicle and returned fire at Watson, wounding him in the hand.  Harper testified: “I immediately got back in the -- back into my car, the Maxima and I had to tell my wife, you know, that I was shot. So I just yelled it out, ‘Jess, I’m shot, I’m shot.’ I told her to call 911. I didn't tell her where I was exactly but I said call 911.”  The entire incident was recorded on three separate surveillance cameras located on Canarsie Road. 

Watson drove the BMW to a nearby auto body shop, then had a friend drive him in another vehicle to the hospital where he was ultimately arrested.  During the trial, the jury viewed Harper’s Nissan Maxima in the courthouse garage in order to better understand an FBI forensic examiner’s testimony about the path of the bullets fired into the vehicle by the defendant and assess the damage to the metal surfaces.

Special Agent Harper underwent multiple surgeries to have the bullet removed from his lung and continued his service as a Special Agent of the FBI.   

United States Attorney Richard P. Donoghue and Assistant United States Attorney Francisco J. Navarro are in charge of the prosecution.

The Defendant:

RONELL WATSON
Age:  31
Canarsie, New York

E.D.N.Y. Docket No. 19-CR-4 (WFK)

Earlier today, in federal court in Central Islip, Hema Patel, a Texas-based bail bondswoman, was sentenced by United States District Judge Denis R. Hurley to three years’ imprisonment for her role in smuggling hundreds of illegal aliens into the United States.  The Court also ordered Patel to forfeit her Texas residence, two hotels, $7.2 million in bail bonds, $400,000 in cash and 11 gold bars, among other assets.  On June 7, 2018, Patel pleaded guilty to alien smuggling for financial gain by fraudulently bonding illegal aliens from immigration custody and causing their release into the United States.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, announced the sentence.

 “For her personal financial gain, defendant Hema Patel arranged to have hundreds of aliens smuggled into the United States, completely by-passing the visa application and eligibility requirements,” stated United States Attorney Donoghue.  “She will now pay the price for placing the safety and security of the residents of our communities at risk.  Border security is a top priority of the Department of Justice.”     

“In a classic example of how criminal networks exploit loopholes in our nation’s immigration system to make a profit while threatening the national security of the United States, Hema Patel and her human smuggling co-conspirators manufactured fraudulent bond documents to secure the release of undocumented aliens that were smuggled through the southwest border by an international criminal network,” stated HSI Special Agent-in-Charge Melendez.   “HSI remains steadfast in its commitment to secure our nation’s legitimate travel, trade and finance by going after transnational criminal networks, their facilitators and their ill-gained assets.”

From April 2015 through October 2016, Patel and her co-conspirators executed a scheme to bring undocumented aliens, primarily from India, into the United States in exchange for “fees” ranging from approximately $28,000 to $60,000 per person.  Patel and her co-conspirators paid middlemen, or “coyotes,” to arrange the logistics of the aliens’ travel, either a northern route through Canada, or a southern route through Mexico.  When the aliens were stopped and taken into custody by law enforcement officers at the U.S. border, they called Patel.  Patel then prepared fraudulent bond documents on their behalf, including documents listing fictitious names and addresses indicating where and with whom the aliens would reside while their cases were pending.  These documents and the bail bonds were then filed in United States Immigration Courts, and the aliens were released into the community.  Patel used two of her hotels in Texas to temporarily harbor some of the aliens.

On November 17, 2016, law enforcement agents executed a search warrant at Patel’s Texas residence, seizing thousands of fraudulent alien bonding records.      

On November 30, 2017, Patel’s co-defendant Chandresh Kumar Patel (not related to Hema Patel) pleaded guilty to smuggling aliens for financial gain for his role in the scheme as an alien trafficker and financial broker.  At the time of his arrest, law enforcement agents recovered $80,000 from his Queens residence.  On October 5, 2018, Chandresh Kumar Patel was sentenced to three years’ imprisonment.            

The government’s case is being handled by the Office’s Long Island Criminal and Civil Divisions.  Assistant United States Attorneys Mark E. Misorek and Robert W. Schumacher are in charge of the prosecution.

Defendant Sentenced Today:

HEMA PATEL

Age:  51

McAllen, Texas

Defendant Previously Sentenced:

CHANDRESH KUMAR PATEL

Age: 30

Flushing, New York

E.D.N.Y. Docket No. 16-CR-584 (DRH)

Introduction: Thank you for coming today.  My name is Richard Donoghue and I am the United States Attorney for the Eastern District of New York.  I am joined here today by the Special Agent-In-Charge of the FBI New York’s Criminal Division, Michael Driscoll.   

We are here to announce that, after an exhaustive investigation, the Department of Justice has reached the conclusion that insufficient evidence exists to prove beyond a reasonable doubt that the police officers who arrested Eric Garner in Staten Island on July 17, 2014 acted in violation of the federal criminal civil rights statute.  Consequently, the investigation into this incident has been closed. 

We met with Mr. Garner’s family earlier this morning and shared our findings and decision with them.  I offered my sincere condolences and those of Attorney General Barr and the entire Justice Department to the family for their tragic loss.

This morning I want to discuss the reasons for our decision and how we reached it.  While the Department does not normally publicly discuss a decision not to bring charges, we felt that this matter is an exception because it means so much to our community and beyond.

Before I continue, let me say as clearly and unequivocally as I can that Mr. Garner’s death was a tragedy.  For anyone to die under circumstances like these is a tremendous loss.  For the family to suffer as this family has only compounds that loss. 

But these unassailable facts are separate and distinct from whether a federal crime has been committed.  And the evidence here does not support charging Police Officer Daniel Pantaleo or any other officer with a federal criminal civil rights violation. 

Admittedly, many may disagree with the decision, and that is their right.  However, we hope that by announcing and explaining our decision today, we can bring some measure of closure to one of this City’s more upsetting incidents involving the police and a member of the community.

Law:

To fully understand how we made this decision, I want to briefly discuss the applicable law.

In order for a federal criminal civil rights charge to be brought, the government must prove, beyond a reasonable doubt, four elements: (1) that the officer acted under color of law; (2) that the officer used objectively unreasonable force under the circumstances; (3) that the officer violated the law willfully; and (4) that the wrongful conduct caused bodily injury to the victim. 

In simpler terms, this means that the government must prove beyond a reasonable doubt that an officer willfully used more force than he reasonably could have believed was necessary under the circumstances.

During the Department’s investigation, we focused primarily on two of these elements: 1) whether the force used was objectively unreasonable and 2) whether the officer acted willfully in violation of the law. 

The “reasonableness” of a particular use of force must be judged from the perspective of a reasonable officer on the scene, rather than with the 20/20 vision of hindsight.  And the law recognizes that the police are often forced to make split-second judgments in circumstances that are tense, uncertain and rapidly evolving. 

However, even if the government can prove beyond a reasonable doubt that the force used was objectively unreasonable, the government must also prove beyond a reasonable doubt that the officer acted willfully.  This is the highest standard of intent imposed by law, and is different and higher than the intent standard under the relevant state statutes.  While willfulness may be inferred from blatantly wrongful conduct, such as a gratuitous kick to the head, an officer’s mistake, fear, misperception, or even poor judgment does not constitute willful conduct under federal criminal civil rights law. 

What all of this means is that, even if we could prove that Officer Pantaleo’s hold of Mr. Garner constituted unreasonable force, we would still have to prove beyond a reasonable doubt that Officer Pantaleo acted willfully.

The Video:

Eric Garner’s arrest was largely captured on video and the video has been replayed in the media on countless occasions.  Like many of you, I have watched the video many times and, each time I’ve watched it, I am left with the same reaction – that the death of Eric Garner was a tragedy.  And I know that every one of my colleagues who reviewed the video shares that sentiment.

The job of a federal prosecutor, however, is not to let our emotions dictate our decisions. 

Our job is to review the evidence gathered during the investigation – like the video - to assess whether we can prove that a federal crime was committed. 

When viewed in its entirety, the video documents a tense and escalating encounter between Mr. Garner and the officers, and shows that the officers had to make split-second decisions under stressful circumstances.  The video shows that the officers’ initial actions were in accordance with established police tactics and procedures, but that the situation deteriorated as it progressed.  At the end of the day, however, the video and the other evidence gathered in the investigation does not establish beyond a reasonable doubt that Officer Pantaleo acted in willful violation of federal law.

The Evidence:

Now let me address the video and some of the other evidence.

On July 17, 2014, Officers Justin D’Amico and Daniel Pantaleo attempted to place Eric Garner under arrest.  The officers were acting that day under direct orders to address complaints about the sale of untaxed cigarettes in the vicinity of Tompkinsville Park in Staten Island.  Mr. Garner resisted arrest, both verbally and physically, and consequently the officers were permitted to use force to effect the arrest.  That force, of course, had to be reasonable. 

After Mr. Garner resisted arrest, Officer Pantaleo appeared to attempt two approved NYPD tactics, both of which involved force.  First, he appeared to attempt an “arm bar,” which involves pulling the hand of a person down, while the officer goes behind the person to gain control of him to put handcuffs on him.  As the video makes clear, Mr. Garner twisted his body and freed his arms, evaded Pantaleo’s grasp, and avoided being placed in handcuffs.

Officer Pantaleo next appeared to attempt a second approved tactic, this one called the “rear takedown” or “seat belt.”  In this tactic, an officer places one arm under a person’s armpit and the other hand across the shoulder and chest of the person in order to unbalance the person and bring him to the ground.  Here, Officer Pantaleo placed his right arm under Mr. Garner’s right armpit and his left arm on Mr. Garner’s shoulder and upper chest, with his left palm facing out and away from Mr. Garner’s neck.  At this point, there is nothing in the video to suggest that Officer Pantaleo intended or attempted to place Mr. Garner in a chokehold. 

I would also note that there was a significant difference in size and weight between Mr. Garner, who stood 6’2” and weighed close to 400 lbs., and Officer Pantaleo, who was considerably smaller.  And it is clear that this disparity in size and weight contributed to Officer Pantaleo being unable to bring Mr. Garner under arrest quickly and without further incident.

Officer Pantaleo then attempted to complete the rear takedown to put Mr. Garner off balance.  This is where the situation rapidly deteriorated.  As Mr. Garner and Officer Pantaleo struggled, Officer Pantaleo held onto Mr. Garner and both men fell backward.  In the process, Officer Pantaleo’s body slammed against a store window, causing the window to buckle.  It appears that, in response to that collision, and to maintain a hold on Mr. Garner, Officer Pantaleo wrapped his left arm around Mr. Garner’s neck, resulting in what was, in effect, a chokehold.  Officer Pantaleo maintained that hold on Mr. Garner for a total of approximately seven seconds.  During the first few seconds of that hold, the two men were falling to the sidewalk.

As has been widely reported, Mr. Garner stated, “I can’t breathe,” but I would point out that he made this statement only after he fell to the sidewalk and after Officer Pantaleo released his grip from Mr. Garner’s neck.  Significantly, Officer Pantaleo was not engaged in a chokehold on Mr. Garner when he said he could not breathe, and neither Officer Pantaleo nor any other officer applied a chokehold to Mr. Garner after he first said he could not breathe.

It is also important to understand that there is a disagreement among medical experts regarding the cause of Mr. Garner’s death.  While the medical examiner who conducted Mr. Garner’s autopsy ruled it a homicide – meaning that the death resulted, rightly or wrongly, from the actions of another – another medical examiner who reviewed the autopsy report could not conclusively determine whether the chokehold itself caused Mr. Garner’s death.  

At least two different medical experts have explained that the sudden cardiac arrest suffered by Mr. Garner could have resulted from a number of causes in addition to the chokehold, including being restrained in a prone position, damage to his neck area that was not attributable to the chokehold and Mr. Garner’s serious underlying medical conditions.  This is significant because it casts doubt upon whether the chokehold itself caused Mr. Garner’s death. 

The Decision:    

When we evaluated Officer Pantaleo’s actions in light of (1) his training and experience, (2) Mr. Garner’s size, weight and actions to resist arrest, and (3) the duration and escalating nature of their interaction, we determined that there was insufficient evidence to prove beyond a reasonable doubt that Pantaleo acted in willful violation of the law. 

As a result, we conclude that there is insufficient evidence to bring a federal criminal charge against Officer Pantaleo for his role in the untimely death of Mr. Garner.

Conclusion:

Before I conclude, I also would like to address the timing of today’s announcement.  As I mentioned earlier, this investigation was extremely thorough and time consuming and the recent administrative hearing conducted by the NYPD provided, at least potentially, one last opportunity to develop evidence that might have put us in a position to bring charges. 

But regardless, today’s announcement is long overdue.  We, the Department, owed it to Mr. Garner’s family and to the community to complete the investigation and announce our decision earlier.

I should emphasize that this was a very difficult decision, and it was one that was contemplated and considered at the very highest levels of the Department of Justice for several years.

For the family, for the community, and for the cause of justice, please know that experienced, highly trained federal agents and career prosecutors worked hard to investigate and examine the facts to determine if a federal criminal case could be brought here.  The Department remains committed to aggressively investigating allegations of excessive force by police officers and others, and will continue to dedicate all necessary resources to doing so.  We are committed to aggressively prosecuting excessive force cases whenever there is sufficient evidence to bring them.

Mr. Garner’s death was a terrible tragedy.  But having thoroughly investigated the surrounding circumstances, the Department has concluded that the available evidence would not support federal civil rights charges against any officer.

We know and understand that some will be disappointed by this decision, but it is the conclusion that is compelled by the evidence and the law.

Earlier today, in federal court in Central Islip, Alice Belmonte, a disbarred attorney formerly with offices in Long Island and Manhattan, was sentenced by United States District Judge Denis R. Hurley to 24 months’ imprisonment for engaging in a wire fraud scheme and stealing $2 million from victims who believed they were giving her money to invest in real estate.  Belmonte was also ordered to pay $2 million in restitution to those victims.  In September 2017, Belmonte pleaded guilty to 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 sentence.

“Alice Belmonte, falsely holding herself out as an experienced practicing attorney, prevailed upon investors to trust her with their money and then stole it from them,” stated United States Attorney Donoghue.  “With today’s sentence, she has been held responsible for her crime.  Together with our law enforcement partners, this Office will continue to hold accountable those who violate the trust of others to enrich themselves.”

Shortly after being disbarred for misconduct in February 2013, Belmonte held herself out as an attorney who could assist clients in acquiring real estate investments.  Belmonte communicated with her victim investors with emails sent from her “alice@belmontelaw.com” address.  Relying on Belmonte’s purported expertise, the investors deposited $2 million into an escrow account she opened.  The funds were supposed to be held in escrow until a suitable portfolio of real estate properties could be purchased.  Between March and June 2013, Belmonte contacted the escrow agent, using falsified email addresses in the names of her victims, and sent fraudulent instructions purporting to authorize the transfer of the $2 million to a second bank account she controlled in the name, “Alice Phillips Belmonte Attorney Escrow Account.”  Belmonte then diverted the funds to yet additional accounts she controlled by forging fraudulent disbursement instructions, ostensibly from one of the victims.  The victims’ money was never invested in real estate for them, nor did they receive their money back.

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

The Defendant:

ALICE BELMONTE (also known as “Alice Marie Phillips” and “Alice Marie Ward”)
Age:  53
Wading River, New York

E.D.N.Y. Docket No. 16-CR-260 (DRH)

Earlier today, in federal court in Brooklyn, Joseph P. Willner, a self-described day trader, pleaded guilty to conspiring to commit securities fraud and illegally profiting from a series of coordinated trades involving more than 50 hacked online brokerage accounts.  The plea took place before United States District Judge Margo K. Brodie.  When sentenced, Willner faces up to five years in prison, as well as forfeiture and a fine of up to twice the gross loss caused by the conspiracy.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea.  Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission and the United States Commodity Futures Trading Commission for their significant assistance in the investigation.

“Willner and his co-conspirators used computer hacking to take the pump out of pump and dump, eliminating the need to trick investors into buying artificially inflated stock by simply hacking into brokerage firm accounts and having them buy the stock unbeknownst to the brokerage firms,” stated United States Attorney Donoghue.  “While the approach was novel, the end result was all the same, with the defendant being held accountable for his criminal acts.  No matter what cyber techniques fraudsters use, this Office and our law enforcement partners will bring them to justice.”

As alleged in the indictment and other court filings, between September 2014 and May 2017, Willner used his brokerage accounts to place “short sale” offers for publicly traded companies’ stock at artificially high market prices.  Simultaneously, Willner’s co-conspirators hacked into victims’ online brokerage accounts and placed buy orders for the stock at the artificially high prices, matching Willner’s short sale offers.  Willner and his co-conspirators then re-purchased the stock from the victims’ accounts at market or below-market prices.  This sequence of fraudulent trades usually took place within minutes, and Willner immediately profited based on the difference between his artificially high short sale price and the lower price at which he re-purchased the stock. 

As a result of Willner’s and his co-conspirators’ actions, the affected brokerage firms lost more than $2 million.

The government’s case is being prosecuted by the U.S. Attorney’s Office Business and Securities Fraud and National Security and Cybercrime Sections, and the Securities and Financial Fraud Unit of the Department of Justice Fraud Section.  Assistant United States Attorneys Mark E. Bini and Craig R. Heeren and Department of Justice Trial Attorney Cory E. Jacobs are in charge of the prosecution. 

The Defendant:

JOSEPH P. WILLNER
Age: 44
Ambler, Pennsylvania

E.D.N.Y. Docket No. 17-CR-620 (MKB)

 

A superseding indictment was unsealed today in federal court in Brooklyn charging 17 members and associates of the Makk Balla Brims set of the Bloods street gang with crimes related to their participation in a robbery crew that used guns and violence to steal property over a nine-month period in 2017 in Queens and on Long Island.  The 16 newly charged defendants were arrested today, and all but three will be arraigned this afternoon before United States Magistrate Judge Steven M. Gold.  The remaining defendants, who are incarcerated in state and federal facilities, will be arraigned on 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 indictment.

“As alleged, members and their associates of the Makk Balla Brims set of the Bloods committed numerous, violent armed robberies, victimizing families in their homes and employees and patrons of local businesses, including a barber shop,” stated United States Attorney Donoghue.  “We are working tirelessly with our law enforcement partners to ensure that our community is protected from the threat posed by violent street gangs such as this one.”  Mr. Donoghue expressed his grateful appreciation to the Port Washington Police Department, Nassau County Police Department and New York State Department of Corrections for their assistance during the investigation.

“Members of this gang allegedly attacked innocent people in their own homes, believing they could act without consequences,” stated FBI Assistant Director-in-Charge Sweeney.  “Our goal when we open an investigation into violent gangs is to take out the leadership.  This case is a perfect example of how we don’t stop simply by making a few arrests, we will continue to investigate and track down all those involved in their criminal activity and stop them from literally terrorizing a community in their lust for violence.”

“Targeting and dismantling criminal groups, and preventing violence that is often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner O’Neill.  “I commend and thank the attorneys from the U.S. Attorney’s Office, Eastern District of New York for bringing this case forward, and the NYPD investigators for their hard work to keep our communities safe and further reduce crime and disorder.”

The Makk Balla Brims set of the Bloods is comprised primarily of members residing in and around the South Jamaica Houses and the American Towers in Queens.  As alleged in the indictment and other court filings, between May 2017 and December 2017, the defendants participated in 11 robberies or attempted robberies, brandishing or using guns during most of the crimes.  The defendants targeted individuals they believed would be in possession of large amounts of cash, electronics, jewelry or narcotics.  Upon receiving a tip about a promising victim, the Makk Balla Brims would assemble a crew to carry out the robbery, and the participants adopted various roles for the crime, including lookout, getaway driver and gunman.  Several of the charged robberies are described below:

The Barber Shop Robbery

On September 23, 2017, Michael Miles, Shamel Simpkins, Reshawn Smith, Kimberly Thompson and other co-conspirators robbed the Jevo Barber Shop in Jamaica, Queens.  Simpkins chose the crew members, Miles was armed with a TEC-9 semiautomatic pistol and Thompson drove the getaway car.  Miles and Smith entered the shop and removed gold chains, cell phones and cash from the victims, as well as cash proceeds from the business.

Home Invasion and Torture

On September 29, 2017, Andre Barnaby, Brandon Darby and Pierre Raymond broke into a home in Elmont, Long Island that they believed to be a marijuana stash house, while Simpkins and Shawn Silvera remained in the getaway car.  Darby and Raymond wore masks and brandished guns.  They tied up one victim with an extension cord and demanded marijuana and cash.  When the victim stated that he did not have marijuana, Raymond and Darby heated up a knife and repeatedly burned the victim’s legs.

Home Invasion and Shooting

On October 11, 2017, James Roberson, Simpkins, Thompson and other co-conspirators robbed a house in North Valley Stream, Long Island, where they believed a jewelry store owner kept jewelry and cash.  Roberson and several co-conspirators forced their way into the house brandishing guns, and restrained the victim’s family members using zip ties.  Roberson shot the victim in the stomach before fleeing with jewelry and electronics.  The victim received medical treatment and survived.

Targeting Homes with Outdoor Indian Flags

In at least two robberies, the defendants looked for homes where Indian flags were flying because they believed the residents kept gold and cash inside.  Avery Mitchell posed as a deliveryman wearing a United Parcel Service (UPS) jacket to enter a house, where he and other co-conspirators restrained two young girls at gunpoint.  Mitchell and the crew fled with electronics and jewelry.  On November 19, 2017, Davis, Nahjuan Perry, Mitchell and other co-conspirators robbed a second house where Indian flags were flying outside.  Mitchell again donned a UPS jacket as a ruse to gain entry, and shot one resident before fleeing empty-handed.

Eleven defendants -- Andre Barnaby, Brandon Darby, Antonio Davis, Michael Miles, Avery Mitchell, Nahjuan Perry, James Roberson, Shawn Silvera, Shamel Simpkins, Rashawn Smith, and Kimberly Thompson -- are charged with racketeering, including predicate acts of Hobbs Act robberies, robbery under New York State law and related firearms offenses.  Five additional defendants -- Matthew Elias, Tyquan Henderson, Pierre Raymond, Latiff Thompson, and Lawrence Woods -- are newly charged with Hobbs Act robbery and related firearms offenses.  Constantin Cheese was previously charged with Hobbs Act robbery and related firearms offenses in an underlying indictment.

If convicted, each defendant faces a mandatory minimum sentence of at least seven years’ imprisonment and a maximum of life imprisonment.

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

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

The Defendants:

ANDRE BARNABY (also known as “Goonie Dre”)
Age:  27
Queens, New York

CONSTANTIN CHEESE (also known as “Cheese”)
Age:  31
Queens, New York

BRANDON DARBY (also known as “Barrack”)
Age:  28
Queens, New York

ANTONIO DAVIS (also known as “Big Blood”)
Age:  38
Queens, New York

MATTHEW ELIAS (also known as “Heddis”)
Age:  36
Queens, New York

TYQUAN HENDERSON (also known as “Gun Play”)
Age:  22
Queens, New York

MICHAEL MILES (also known as “Michael Davis” and “Menace”)
Age:  35
Queens, New York

AVERY MITCHELL (also known as “Slay”)
Age:  24
Queens, New York

NAHJUAN PERRY (also known as “Nas”)
Age:  24
Queens, New York

PIERRE RAYMOND (also known as “Leeky”)
Age:  21
Queens, New York

JAMES ROBERSON (also known as “Littles”)
Age:  24
Queens, New York

SHAMEL SIMPKINS (also known as “Sha Bang”)
Age:  32
Queens, New York

SHAWN SILVERA (also known as “Dum Out”)
Age:  26
Queens, New York

RASHAWN SMITH (also known as “Shawn”)
Age:  22
Queens, New York

KIMBERLY THOMPSON (also known as “Kimmy”)
Age:  23
Queens, New York

LATIFF THOMPSON (also known as “La Banga”)
Age:  30
Queens, New York

LAWRENCE WOODS (also known as “Lazo”)
Age:  33
Queens, New York

 

A five-count superseding indictment was unsealed today in federal court in Brooklyn charging R&B singer Robert Sylvester Kelly, also known as “R. Kelly,” with  racketeering predicated on criminal conduct including sexual exploitation of children, kidnapping, forced labor and Mann Act violations involving the coercion and transportation of women and girls in interstate commerce to engage in illegal sexual activity.  Kelly is also charged with four counts of violating the Mann Act related to his interstate transportation of a victim to New York to engage in illegal sexual activity, and his exposure of her to an infectious venereal disease without her knowledge.  Also today, Kelly was charged in a separate federal indictment unsealed in the Northern District of Illinois with federal child pornography and obstruction charges. 

Kelly will appear this afternoon for a removal hearing at the federal courthouse in Chicago, Illinois.  On a later date, Kelly will be arraigned on this superseding indictment in Brooklyn.  This case is assigned to the United States District Judge Ann M. Donnelly.       

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, United States Department of Homeland Security, 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, R. Kelly, together with employees and members of his entourage, engaged in a racketeering enterprise that preyed upon women and girls who attended his concerts so that the victims could be available to engage in illegal sexual activity with him at a moment’s notice,” stated United States Attorney Donoghue.  “Today that comes to an end.  This indictment makes clear that fame and power will not shield anyone from prosecution, particularly predators who victimize vulnerable members of our communities for their own sexual gratification.”

“R. Kelly’s Enterprise was not only engaged in music; as alleged, for two decades the enterprise at the direction of R. Kelly preyed upon young women and teenagers whose dreams of meeting a superstar, soon turned into a nightmare of rape, child pornography and forced labor. The musician turned predator allegedly used his stardom to coax some victims into nefarious sex acts while certain members of his enterprise calculatingly facilitated the aberrant conduct.  Today’s indictment charging racketeering is a clear indication of the extent of his criminal activity, which involves coercion and kidnapping. This investigation was built with the foresight of special agents and detectives assigned to the joint HSI and NYPD Public Safety Task Force, along with prosecutors of the Eastern District of New York.  R. Kelly believed he could fly, but it will be justice to see his oppressive wings clipped,” stated HSI Special Agent-in-Charge Melendez.

“The NYPD is committed to ensuring that child predators are taken off our streets and prosecuted to the fullest extent of the law. I thank our skilled NYPD detectives and our law enforcement partners for their unified work to provide justice for the victims of these despicable crimes.  Those who engage in these reprehensible offenses against our most vulnerable will be pursued relentlessly, and held accountable for the pain and suffering they cause,” stated NYPD Commissioner O’Neill.

According to the superseding indictment and other court filings, Kelly and individuals who served as his managers, bodyguards, drivers, personal assistants and runners, as well as members of his entourage, comprised a racketeering enterprise (the Enterprise) that operated for over two decades in New York, Illinois, Connecticut, California and elsewhere.  Kelly, as leader of the Enterprise, used his fame to recruit women and girls to engage in illegal sexual activity with him and others.  The superseding indictment alleges that Kelly identified these girls and women and then directed members of the Enterprise to escort them backstage or to events following his musical performances.  Kelly also exchanged contact information with girls and women so that he and other members of the Enterprise could arrange travel and lodging for them to visit Kelly and engage in the charged illegal sexual conduct.   

Kelly issued rules that many of his sexual partners were required to follow, including that the women and girls were to call him “Daddy”; they were not permitted to leave their rooms to eat or visit the bathroom without receiving his permission; they were required to wear baggy clothing when not accompanying Kelly to an event; and they were directed to keep their heads down and not look at other men.  Kelly also isolated the women and girls from their friends and family, and made them dependent on him for their financial well-being.
Earlier today, federal agents executed a search warrant at Kelly’s residence.

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

If convicted, Kelly faces a sentence of up to 20 years’ imprisonment for the Racketeering and two Mann Act Coercion and Enticement counts respectively, and up to 10 years’ imprisonment for each of the Mann Act Transportation counts.  

If you believe you are a victim of criminal activity perpetrated by Robert Kelly, please contact HSI at 1-866-DHS-2-ICE (1-866-347-2423) or by logging on to https://www.ice.gov/webform/hsi-tip-form.  This service is available 24 hours a day, seven days a week.  All information will be kept strictly confidential.

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

The Defendant:

Robert Sylvester Kelly (also known as “R. Kelly”)
Age: 52
Residence: Chicago, Illinois

E.D.N.Y. Docket No. 19-CR-286 (AMD)

Mark Nordlicht, the founder and Chief Investment Officer of Platinum Partners L.P. (Platinum), and David Levy, the co-Chief Investment Officer of Platinum, were convicted today by a federal jury in the Eastern District of New York of securities fraud, securities fraud conspiracy and wire fraud conspiracy for their roles in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote.  The verdict followed a two-month trial before United States District Judge Brian M. Cogan. 

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

“With today’s verdict, Nordlicht and Levy have been held accountable for deceiving bondholders to gain control of the remaining assets of a failing oil company to line their own pockets and those of close family and friends,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners remain unwavering in our commitment to unraveling complex fraud schemes and bringing perpetrators, like the defendants, to justice.”  Mr. Donoghue thanked the Securities and Exchange Commission, New York Regional Office (SEC), for their significant cooperation and assistance during the investigation.

“The victims of this scheme paid the price for the crimes committed by Nordlicht and Levy,” stated FBI Assistant Director-in-Charge Sweeney.  “Today, the tables have turned.  The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, and that investors can continue to place their faith in our financial markets.”

“In this case the defendants devised a scheme to defraud bondholders and cheat them out of millions of dollars.  Today’s verdict should be a warning for all the fraudsters out there: No matter how slick you think you are, liars, frauds and cheats never win,” stated USPIS Inspector-in-Charge Bartlett.

Platinum was a New York City-based hedge fund founded in 2003.  The evidence at trial established that between approximately November 2011 and December 2016, Nordlicht and Levy, together with their co-conspirators, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests.  To execute this scheme, in early 2014, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds.  The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum.  Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders.  Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one bondholder explained that to do so would constitute “giv[ing] up my rights and not get[ting] anything back for it,” which he characterized as “kind of stupid.” 

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

Nordlicht, Levy and Joseph SanFilippo were acquitted of counts related to a separately charged scheme involving investors in the Platinum funds.  

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Alicyn Cooley, David Pitluck, Lauren Elbert and Patrick Hein are in charge of the prosecution.

The Defendants:

MARK NORDLICHT
Age: 51
New Rochelle, New York

DAVID LEVY
Age: 34
New York, New York

A New York anesthesiologist was arraigned today on an indictment charging her for her role in an alleged telemedicine conspiracy to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans.  

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 and 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 made the announcement.

Anna Steiner, also known as “Hanna Wasielewska,” 63, of Valatie, New York, was charged in an indictment filed in the Eastern District of New York with one count of conspiracy to commit health care fraud.  Steiner was previously arrested on a complaint in April 2019.

According to the indictment, starting in approximately January 2015, Steiner participated in a health care fraud scheme in which she and others ordered and prescribed durable medical equipment (DME) and prescription drugs in connection with purported telemedicine services.  As alleged in the indictment, however, Steiner and other providers signed prescriptions and order forms for DME and drugs that were not medically necessary and that were induced by kickbacks, and provided for beneficiaries whom Steiner and others had not examined and evaluated.  Steiner, together with others, allegedly submitted or caused the submission of more than $7 million in claims to Medicare for DME on behalf of more than 3,000 beneficiaries; Medicare paid more than $3 million on those claims.

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

This case was investigated by the FBI and HHS-OIG.  Trial Attorney Andrew Estes of the Criminal Division’s 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.

Wafa Abboud, the former Executive Director of Human First, a not-for-profit organization based in Nassau County, New York, that provides services to developmentally disabled individuals, was convicted today by a federal jury in Brooklyn of all counts of a superseding indictment charging her with embezzling funds, bank fraud and money laundering.  The verdict followed a two-week trial before United States District Judge Edward R. Korman.  When sentenced, Abboud faces up to 30 years’ imprisonment.

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

“With today’s verdict, Abboud has been held accountable for abusing her position of trust as the Executive Director of a charity and funding her elaborate lifestyle with money  intended to serve the needs of vulnerable individuals in the community,” stated United States Attorney Donoghue.  Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the New York State Office of the Attorney General and the New York State Office of the Inspector General for their work on the case.

From January 2011 until she was terminated on May 27, 2016, Abboud was Human First’s Executive Director and authorized the disbursement of all of the charity’s funds.  Between May 2011 and February 2016, Abboud caused Human First to issue approximately $16,000 a month in purported consultant fees to MPB Management Services LLC (MPB), a company controlled by co-conspirator Marcelle Bailey.  Every month, Abboud wrote two checks payable to MPB, each for $8,000, and deposited one of the checks into bank accounts in MPB’s name that Abboud controlled.  In total, Abboud diverted $420,000 of Human First funds into the accounts and used the embezzled funds to pay for her personal expenses, including a trip to Disneyland in California, tickets to the Broadway show “Newsies,” visits to luxury spas and high-end beauty salons, cosmetic surgeries and international wire transfers.  Abboud also withdrew nearly $120,000 in cash from the accounts. 

Abboud also embezzled more than $440,000 from Human First with her co-conspirator Rami Taha, another consultant who Abboud hired to work at Human First.  In furtherance of this scheme, the defendant approved inflated construction invoices that were submitted to Human First by Taha.  Abboud issued Human First checks to companies controlled by Taha, who in turn diverted the embezzled funds back to Abboud.  Abboud used the funds toward the down payment for her residence and to pay for extensive renovations to the residence.  When Abboud’s mortgage lender asked her about the source of the funds, Abboud, to conceal the embezzlement, falsely represented to the lender that the funds were part of a settlement payment that she had received for damage to her prior residence.  The evidence at trial also established that the defendant awarded herself an annual salary increase to $479,000, without obtaining the required approval from Human First’s Board of Directors, in order to obtain the mortgage loan.

Bailey pleaded guilty in December 2017 to embezzling funds and bank fraud, and Taha pleaded guilty in May 2019 to embezzling funds.  A fourth defendant, Arkadiusz Swiechowicz, pleaded guilty to obstruction of justice in September 2018.  They are awaiting sentencing.

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

The Defendant:

WAFA ABBOUD
Age:  51
Merrick, New York

E.D.N.Y. Docket No. 16-CR-396 (ERK)

 

Earlier today, in federal court in Brooklyn, Lashawn Williams, also known as “Ron Johnson,” was sentenced to 147 months’ imprisonment for his role in the May 25, 2017 armed robbery of a jewelry store on Court Street in Brooklyn.  The Court also ordered Williams to pay $95,000 in restitution.  Williams pleaded guilty in September 2018 to Hobbs Act robbery and brandishing a firearm during the commission of a crime of violence.  The sentencing proceeding was held before United States District Court Judge Brian M. Cogan.  Previously, Williams’s co-defendants Darryl Odom, Kenneth Davis and Shaka Davis were sentenced to 171, 165 and 54 months’ imprisonment, respectively, following their guilty pleas.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.

On May 25, 2017, at 5:15 p.m., Williams, armed with a firearm, entered the Court Street jewelry store with Odom and a co-conspirator, while Kenneth Davis stood lookout outside and Shaka Davis waited in a getaway car a few blocks away.  To shield their identities and avoid notice by passersby, the defendants disguised themselves in construction-workers gear, including neon vests, hardhats, gloves and dust masks.  Inside the store, the defendants beat the store owner, pistol-whipping, punching and kicking him.  They then stole hundreds of thousands of dollars in cash and jewelry, and fled the scene.  When subsequently tracked down and arrested, law enforcement agents and officers seized several pieces of the stolen jewelry.

“Defendant Lashawn Williams and his co-defendants have now been held accountable for the brutal armed robbery of a jewelry store in busy downtown Brooklyn that not only severely injured the store owner but also endangered the customers and passersby,” stated United States Attorney Donoghue.  Mr. Donoghue expressed his grateful appreciation to the law enforcement agents and officers for their work in this case.

“Lashawn Williams and his codefendants committed a brazen armed robbery that endangered innocent lives and left a store owner severely injured and traumatized,” stated ATF Special Agent-in-Charge DeVito.  “Williams is yet another example of the type of violent individuals that presents a clear and present danger to the law abiding citizens in the community. ATF and our NYPD partners in the Joint Robbery Task Force stand committed to protecting the public from individuals like Williams;  that spread fear and perpetuate violence within the community.  I would like to thank the United States Attorney’s Office for their leadership and proactive support in furtherance of this investigation.”

Assistant United States Attorney Josh Hafetz is in charge of the prosecution. 

The Defendant Sentenced Today:

LASHAWN WILLIAMS (aka “Ron Johnson”)
Age: 50
Bronx, New York

Defendants Previously Sentenced:

DARRYL ODOM
Age:  55
New York,  New York

KENNETH DAVIS
Age: 54
Brooklyn, New York

SHAKA DAVIS
Age: 30
Brooklyn, NY, New York

E.D.N.Y. Docket No. 17-CR-432 (S-1) (BMC)

Earlier today, at the federal courthouse in Brooklyn, Paul Ragusa, an associate of the Bonanno and Gambino organized crime families, was sentenced by United States District Judge Pamela K. Chen to 72 months’ imprisonment for possessing nine firearms, including three automatic assault rifles and a silencer.  Ragusa possessed the firearms while serving a custodial sentence at a residential re-entry facility in connection with three prior felony convictions.  Ragusa pleaded guilty to the firearms charge in October 2018.

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

“While serving a prior sentence for violent crimes involving machineguns, Ragusa was ready and willing to transport more guns, including assault rifles,” stated United States Attorney Donoghue.  “Today’s sentence incapacitates the defendant, who clearly continues to pose a danger to the community.”  Mr. Donoghue thanked the Federal Bureau of Investigation (FBI) and New York City Police Department, as well as law enforcement partners in Canada, including the Royal Canadian Mounted Police and the GTA Combined Forces Special Enforcement Unit Public Prosecution Service of Canada, Ontario Regional Office.

Between July and October 2017, Ragusa met with a cooperating witness (CW) whom he knew through their prior affiliation with the Giannini Crew, a criminal enterprise responsible for numerous violent crimes.  During recorded conversations with the CW, Ragusa agreed to commit a murder-for-hire.  Ragusa stated that he did not need a gun, because he would stick an “ice pick” through the victim’s head. 

On October 25, 2017, the CW asked Ragusa if he knew anyone who could transport firearms.  Ragusa responded, “Yeah, me! I’ll do it!”   On November 2, 2017, Ragusa met an undercover FBI agent who drove him to a warehouse in Nassau County, where Ragusa packed nine firearms, including two AK-47 assault rifles and one M16 rifle, into a large bag.  Ragusa and the agent drove to a parking lot in Queens, where Ragusa loaded the firearms into a waiting undercover FBI vehicle.  Ragusa was paid $2,000 in cash. Unbeknownst to Ragusa, the firearms were the property of the FBI and had been rendered inoperable.

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

The Defendant:

PAUL RAGUSA
Age: 48
Brooklyn, New York

E.D.N.Y. Docket No. 17-CR-613 (PKC)

Earlier today, in federal court in Brooklyn, Anna Steiner, an anesthesiologist, was arraigned on an indictment charging her with conspiracy to commit health care fraud for her alleged role in a telemedicine scheme to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans.  Steiner was previously arrested on a complaint in April 2019, and was arraigned this morning before United States District Judge I. Leo Glasser.

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

“As alleged, Steiner claimed to provide telemedicine services to patients, but in reality, her telecare was a fiction and the claims submitted to Medicare unnecessary and fraudulent,” said United States Attorney Donoghue. “This Office and our law enforcement partners will continue vigorously investigating and prosecuting health care professionals who seek personal enrichment by stealing from a taxpayer-funded program.”

“Fraud against both public and private health care plans is not a victimless crime—the cost of doing business is ultimately transferred to members and taxpayers alike,” said FBI Assistant Director-in-Charge Sweeney.  “More importantly, prescribing medication and medical equipment to patients for the sole purpose of turning a profit is not only unethical, it’s dangerous business. Today’s indictment is a victory for the FBI and our partners, the public at large, and those in the medical community who operate within the confines of the law.”    

“When physicians boost their profits by billing federal healthcare programs for medically unnecessary services, the Office of Inspector General, along with our law enforcement partners, will thoroughly investigate such deceptive schemes,” said HHS-OIG Special Agent-in-Charge Lampert.

As alleged in the indictment, telemedicine is a service connecting medical providers with individuals who receive healthcare benefits through real-time, interactive audio and video telecommunications.  Beginning in approximately January 2015, Steiner and other medical providers purported to practice telemedicine pursuant to agreements with an entity identified in the indictment as “Company-1” and others, in exchange for kickbacks paid for each purported telemedicine encounter with a beneficiary.  In fact, Steiner and other medical providers signed numerous prescriptions and order forms for durable medical equipment (DME) and drugs for beneficiaries, when the DME and drugs were not medically necessary and not the result of an actual doctor-patient relationship or examination.  Suppliers of DME and pharmacies then submitted to Medicare more than $7 million in claims, on behalf of more than 3,000 beneficiaries, including residents of the Eastern District of New York.  Medicare paid more than $3 million on these claims.

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

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. 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 Defendant:

ANNA STEINER (also known as “Hanna Wasielewska”)
Age:  63
Valatie, New York

E.D.N.Y. Docket No. 19-CR-295 (ILG)

 

A federal jury in Central Islip returned a guilty verdict today against Spencer Jean for Hobbs Act robbery of a marijuana trafficker, discharging a firearm during a crime of violence, possession with intent to distribute marijuana, conspiracy to obstruct justice and obstruction of justice.  The verdict followed a two-week trial before United States District Judge Joanna Seybert.  When sentenced, Jean faces a mandatory minimum sentence of 25 years’ imprisonment on the firearms discharge count, and up to a total of 45 years on the other four counts.

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

The evidence at trial established that on March 20, 2018 in Middle Island, Jean robbed $1,500 worth of marijuana from a drug dealer he had met at a halfway house following a 2016 firearms conviction.  During the robbery, Jean brandished a 9mm Glock handgun loaded with hollow-point ammunition, and shot the victim in the leg at close-range.  Shortly thereafter, Jean directed a former girlfriend to provide an alibi for him by lying to law enforcement and falsely testifying at trial that he was at a nursing home in Medford at the time of the shooting. 

“Spencer Jean is a dangerous felon who used a handgun to commit a violent crime, and in doing so put others in the community at grave risk,” stated United States Attorney Donoghue.  “Stopping gun violence in the district is a continuing priority of this Office and our federal and local law enforcement partners, and we will be unrelenting in our efforts to hold violent offenders like Jean accountable.”  Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office, for its outstanding work on 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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

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

The Defendant:

SPENCER JEAN (also known as “Cash”)
Age:  33
Westbury, New York

E.D.N.Y. Docket No. 19-CR-123 (JS)

 

 

Earlier today, in federal court in Central Islip, Blake Kantor, who formerly operated a binary options company known as Blue Bit Banc and Blue Bit Analytics (“BBB”), was sentenced by United States District Judge Sandra J. Feuerstein to 86 months’ imprisonment for operating a scheme to defraud BBB investors, and BBB investors who also invested in a cryptocurrency known as “ATM Coin,” to be followed by three years’ supervised release.  Kantor was also ordered to pay restitution of $806,405 to the victims of his crime, forfeiture of $1.5 million, and forfeiture of approximately $153,000 of stolen proceeds.  In November 2018, Kantor pleaded guilty to conspiracy to commit wire fraud, and as part of his plea agreement, he admitted to obstructing the government’s investigation.

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), Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the sentence. 

“Kantor has been held accountable for defrauding investors through his lies and deceit,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue to vigorously prosecute those who perpetrate financial frauds and obstruct investigations of their crimes.”

 “Mr. Kantor has rightfully been punished for making promises he knew would not be kept.  IRS-Criminal Investigation is committed to apprehending those who create elaborate schemes that have no purpose other than to mislead investors by defrauding them for personal gain,” stated IRS-CI Special Agent-in-Charge Larsen.

“The CFTC is committed to working vigorously to root out fraud in all of our markets, including those involving virtual currencies,” stated CFTC Director McDonald.  “As this parallel action shows, we will continue to work with our law enforcement partners to ensure that those who engage in this sort of misconduct are identified and held accountable.  I am grateful to the U.S. Attorney and his team for their work on this important case.”

In March 2014, Kantor established BBB, and from approximately 2014 to 2017, he and others solicited and received approximately $1.5 million from more than 700 investors in BBB’s binary options.  Kantor told investors that they could place binary option trades, or a BBB representative could do so for them, and that the predetermined profits promised them would be based on the actual prices of securities, currencies and other investments at particular points in time.  However, Kantor did not inform the investors that a BBB computer software program fraudulently altered data associated with binary options investments, so that the probability of investors earning a profit favored BBB and disadvantaged investors.  Kantor also fraudulently persuaded several BBB investors’ to convert their BBB investments into “ATM Coin,” a worthless cryptocurrency that he told investors was worth as much as $600,000. 

In October 2017, after FBI agents informed Kantor that they were investigating his involvement in binary options, Kantor directed a co-conspirator to alter BBB customer lists.  Around the same time, Kantor deleted emails related to his scheme.  When interviewed by the FBI, Kantor falsely stated that he had not been involved in binary options since August 2013.

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

The Defendant:

BLAKE KANTOR (also known as “Bill Gordon”)
Age:  44
Fort Lee, New Jersey

E.D.N.Y. Docket No. 18-CR-177 (SJF)

 

 

Three indictments were unsealed yesterday in federal court in Brooklyn charging seven defendants with narcotics trafficking in the Bushwick neighborhood of Brooklyn.  Jessie Smith, Kendall Johnson, also known as “Duke,” Tyrell Spellman, also known as “Rude Boy,” Saquan Warlick, also known as “SB,” Ruben Pabon, Byron Elder, also known as “Bezo,” and Adrian Mattei, also known as “Spanish D,” were arrested yesterday and arraigned before United States Magistrate Judge Lois Bloom.

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 indictments.

“As alleged, Mattei sold heroin near a public elementary school in Bushwick, and the other defendants sold heroin laced with fentanyl and crack cocaine, inside the Bushwick Houses,” stated United States Attorney Donoghue.  “Drug dealers destroy lives and communities and threaten our young people in countless ways.  We are working tirelessly with our partners to hold accountable the criminals who contribute to the opioid epidemic and to ensure that the residents of our communities are free from the plague of drug trafficking.” 

“The subjects arrested in this case are allegedly pushing the drugs that are killing hundreds of people daily in this country,” stated FBI Assistant Director-in Charge Sweeney.  “They also exposed children going to and from school to a scary and violent world of criminal activity that would be difficult for an impressionable child to forget.  The FBI Metro Safe Streets Task Force is doing all it can every day to remove these dealers from the communities most impacted by their illicit actions.”

“Crack cocaine, heroin and fentanyl have a well-known history of destroying lives and devastating communities,” stated NYPD Commissioner O’Neill.  “That’s why the NYPD and its law enforcement partners work tirelessly to rid our city of these deadly drugs and prosecute those who sell them.  I want to thank the investigators who worked on this case.  It is their dedication and hard work that keeps our most vulnerable communities – in this case schools and public housing – safe.”

According to the indictments and court documents, between July 2018 and June 2019, Smith and his co-conspirators distributed heroin, fentanyl and crack, and between November 2018 and June 2019, Pabon and Elder distributed more than 28 grams of crack, in and around the Bushwick Houses.  In August 2018, Adrian Mattei allegedly distributed heroin within 1,000 feet of Public School 257, an elementary school on Cook Street in Brooklyn.  Smith is charged with distributing and possessing over 1,000 grams of heroin. 

If convicted, the maximum sentences range from 40 years’ to life imprisonment.

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

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

The Defendants:

E.D.N.Y. Docket No. 19-CR-283 (WFK)

ADRIAN MATTEI (also known as “Spanish D”)
Age:  32
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-284 (RJD)

JESSIE SMITH
Age:  29
Brooklyn, New York

KENDALL JOHNSON (also known as “Duke”)
Age:  32
Brooklyn, New York

TYRELL SPELLMAN (also known as “Rude Boy”)
Age:  31
Brooklyn, New York

SAQUAN WARLICK (also known as “SB”)
Age:  21
Brooklyn, New York
 

E.D.N.Y. Docket No. 19-CR-285 (PKC)

RUBEN PABON
Age:  28
Brooklyn, New York

BYRON ELDER (also known as “Bezo”)
Age:  43
Brooklyn, New York

Five complaints were unsealed yesterday in federal court in Brooklyn charging 11 defendants in a scheme to defraud banks by using fake, or “synthetic,” identities to obtain credit cards, and making approximately $3 million in charges that were never repaid to the issuing financial institutions.  Three of the defendants were also charged with money laundering conspiracy, designed to conceal the source of the proceeds of their scheme.  Nine defendants were arrested yesterday.  Eight defendants made their initial appearances before United States Magistrate Judge Lois Bloom and were released on bond.  One defendant will appear today before Magistrate Judge Bloom.  Two defendants are not in custody.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Linda A. Lacewell, Superintendent, New York State Department of Financial Services (DFS), announced the charges.

“As alleged, the defendants operated a ‘bust out’ scheme using fraudulently obtained credit cards to finance expenses, ranging from furniture to real estate and totaling $3 million. Now they will be held accountable,” stated United States Attorney Donoghue.  “Together, with our law enforcement partners, we stand committed to protecting financial institutions from fraud.”

“Those arrested today allegedly engaged in fraudulent activities aided by shell companies and collusive merchants to carry out their ‘bust out’ schemes and the laundering of its proceeds, defrauding financial institutions of millions of dollars” stated HSI Special Agent-in-Charge Melendez.  “As revealed in this investigation, synthetic identity fraud is ever evolving in sophistication and frequency, creating more challenges for law enforcement and anti-money laundering professionals.  HSI New York’s El Dorado Task Force and its partners remain vigilant for emerging criminal trends in its efforts to secure our country’s financial system.”

“While this alleged scheme may seem like a victimless crime, fraud hurts the entire financial system, including banks and credit card companies, with the costs passed down to consumers.  DFS is pleased to have partnered with the U.S. Attorney’s Office to bring these defendants to justice, and we will continue to use all of the resources at our disposal to combat fraud,” stated DFS Superintendent Lacewell.

As alleged in court filings, between January 2013 and December 2017, the defendants  used synthetic identities created by using various types of personal identification information (names, dates of birth and Social Security numbers) from different individuals to create a fake identity and obtain credit cards from financial institutions.  They then used those cards for expenditures that they had no intention to repay, including mortgages on three residential properties in Queens, New York.  The defendants also used shell companies, that did little or no legitimate business, to record hundreds of thousands of dollars on the fraudulently obtained credit cards, and then received payment for the sham transactions from financial institutions and credit card processors.

Defendants Bahader Thiara, Hafeez Ali, Mohammad Akhtar, Nadezhda Epshteyn, Cyrus Shroff, Anis Khan, Daljeet Singh, Zainoelbaks Karimbux and Gursimardeep Singh Rai are  charged with access device fraud.  Bahader Thiara, Perminder Thiara and Shaila Khondkar are also charged with money laundering conspiracy. 

If convicted, the defendants charged with access device fraud face up to 10 years’ imprisonment, and up to 20 years for money laundering conspiracy.

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

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorneys Temidayo Aganga-Williams and David Lizmi are in charge of the prosecution.  Assistant United States Attorney Tanisha Payne of the Office’s Civil Division is handling forfeiture matters.

The Defendants:

E.D.N.Y. Docket No. 19-MJ-583

MOHAMMED AKHTAR
Age:  43
Flushing, New York

HAFEEZ ALI
Age:  54
Fort Hamilton, Brooklyn

E.D.N.Y. Docket No. 19-MJ-566

SHAILA KHONDKAR
Age:  48
Jamaica, New York

BAHADER THIARA
Age:  42
Queens Village, New York

PERMINDER THIARA
Age:  40
Queens Village, New York

E.D.N.Y. Docket No. 19-MJ-570

NADEZHDA EPSHTEYN
Age:  44
Rockaway Park, New York

CYRUS SHROFF
Age:  45
Rockaway Park, New York

E.D.N.Y. Docket No. 19-MJ-1029

ZAINOELBAKS KARIMBUX
Age:  50
Bellerose, New York

GURSIMARDEEP SINGH
Age:  34
Bronx, New York

E.D.N.Y. Docket No. 19-MJ-571

ANIS KHAN
Age:  32
Sheepshead Bay, New York

DALJEET SINGH (also known as “Akhtar Iqbal”)
Age: 46
College Point, New York

 

TechnipFMC plc (TFMC), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly-owned U.S. subsidiary, Technip USA, Inc. (Technip USA), have agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges brought by law enforcement authorities in the United States and Brazil.  TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. (Technip) and FMC Technologies, Inc. (FMC).  The charges arose from two independent bribery schemes:  a scheme by Technip to pay bribes to Brazilian officials, and a scheme by FMC to pay bribes to Iraqi officials.  In addition, Technip’s former consultant, Zwi Skornicki, pleaded guilty today in connection with the resolution.  In 2010, Technip entered into a $240 million resolution with the Department of Justice over bribes paid in Nigeria.  Today’s proceedings took place in federal court in Brooklyn before United States District Judge Kiyo A. Matsumoto. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York (EDNY), Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Robert Johnson, Assistant Director, Federal Bureau of Investigation, Criminal Investigative Division (FBI) and Charles A. Dayoub, Acting Special Agent-in-Charge, FBI, Washington Field Office Criminal Division, made the announcement.

 “Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes,” said U.S. Attorney Donoghue.  “We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”

“The conduct admitted to in today’s resolutions was egregious, lasting for years and putting millions into the hands of corrupt officials,” said Assistant Attorney General Benczkowski.  “The message sent by this prosecution is that the United States, working with its law enforcement partners abroad, will not hesitate to hold responsible those corporations and individuals who seek to enrich themselves through corruption.”

“Today’s charges demonstrate not only the capabilities of the FBI personnel who investigate international corruption, but the successful results of strong partnerships in the international community,” said Assistant Director Johnson.  “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”

“This case shows the FBI will continue to work tirelessly to hold those accountable who treat corruption and bribery as a common business practice,” said FBI Acting Special Agent-in-Charge Dayoub.  “Today’s agreement is the culmination of the hard work of the FBI and Department of Justice and our international partners.”

TFMC entered into a deferred prosecution agreement with the DOJ in connection with a criminal information filed today in the EDNY charging the company with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).  In addition, Technip USA pleaded guilty and was sentenced on a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA.  Pursuant to its agreement with the DOJ, TFMC will pay a total criminal fine of over $296 million.  As part of the deferred prosecution agreement, TFMC committed to implementing rigorous internal controls and to cooperating fully with the DOJ’s ongoing investigation.

In connection with his role in the scheme to bribe Brazilian officials, Skornicki pleaded guilty in the EDNY to a one-count criminal information charging him with conspiracy to violate the FCPA.  He is awaiting sentencing.

In related proceedings, TFMC settled with the Advogado-Geral da União (AGU), the Controladoria-Geral da União (CGU) and the Ministério Público Federal (MPF) in Brazil over bribes paid there.  The United States will credit the amount the company pays to the Brazilian authorities under their respective agreements, with TFMC paying Brazil approximately $214 million in penalties.  

According to admissions and court documents, beginning as early as 2003 and continuing until at least 2013, Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM), an attorney for KOM, and Skornicki, who served as a consultant to both Technip and KOM, to violate the FCPA by making more than $69 million in corrupt payments to companies associated with Skornicki.  Skornicki passed along portions of these payments as bribes to officials at the Brazilian state-owned oil company, Petrobras, to win lucrative contracts.  In addition, Technip made more than $5 million in corrupt payments directly to the Workers’ Party in Brazil and Workers’ Party officials in furtherance of the bribery scheme.

The admissions and court documents also establish that beginning as early as 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company, to win valuable projects in Iraq.

In the resolutions, TFMC received credit for its substantial cooperation with the DOJ’s investigation and for taking extensive remedial measures.  For example, the company separated from, or took disciplinary action against, former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer retain commercial consultants; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program.  Accordingly, the criminal fine reflects a 25 percent reduction from the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation.

In a related enforcement action, in December of 2017, KOM and its U.S. subsidiary, Keppel Offshore & Marine USA, Inc., agreed to pay a combined total criminal fine of more than $422 million to resolve charges with law enforcement authorities in the United States, Brazil and Singapore on related conduct.  A former senior member of KOM’s legal department also pleaded guilty in the EDNYand is awaiting sentencing.

The case is being investigated by the FBI’s International Corruption Squad in Washington, D.C.  Assistant United States Attorneys Alixandra Smith and Patrick Hein of the Business and Securities Fraud Section of the Eastern District of New York, and Trial Attorneys Dennis R. Kihm, Derek J. Ettinger and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section, are prosecuting the case.

The governments of Brazil, the United Kingdom, Monaco, Italy, Australia, France and Switzerland provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.

The Defendants:

TechnipFMC PLC

TECHNIP USA, INC

ZWI SKORNICKI
Age: 69
Country of Origin: Brazil

 

TechnipFMC plc (TFMC), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly-owned U.S. subsidiary, Technip USA, Inc. (Technip USA), have agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges with authorities in the United States and Brazil.  TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. (Technip) and FMC Technologies, Inc. (FMC).  The charges arose out of two independent bribery schemes:  a scheme by Technip to pay bribes to Brazilian officials and a scheme by FMC to pay bribes to officials in Iraq.  Technip USA and Technip’s former consultant pleaded guilty today in connection with the resolution.  In 2010, Technip entered into a $240 million resolution with the Department over bribes paid in Nigeria.

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 Robert Johnson of the FBI’s Criminal Investigative Division and Acting Special Agent in Charge Charles A. Dayoub of the FBI’s Washington Field Office Criminal Division made the announcement.

“Today’s resolution takes aim at the scourge of bribery, but does so in a fair and evenhanded way,” said Assistant Attorney General Benczkowski.  “It is a testament to the strength and effectiveness of international coordination in the fight against corruption, but also an acknowledgement that the Department is fully committed to reaching fair and just resolutions with companies that fully cooperate and remediate.”

 “Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes,” said U.S. Attorney Donoghue.  “We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”

“Today’s charges demonstrate not only the capabilities of the FBI personnel who investigate international corruption, but the successful results of strong partnerships in the international community,” said Assistant Director Johnson.  “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”

“This case shows the FBI will continue to work tirelessly to hold those accountable who treat corruption and bribery as a common business practice,” said Acting Special Agent in Charge Dayoub.  “Today's agreement is the culmination of the hard work of the FBI and Department of Justice and our international partners.”

 TFMC entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of New York charging the company with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).  In addition, Technip USA pleaded guilty and was sentenced on a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA.  Pursuant to its agreement with the Department, TechnipFMC will pay a total criminal fine of over $296 million, including a $500,000 criminal fine paid by Technip USA.  As part of the deferred prosecution agreement, TechnipFMC committed to implementing rigorous internal controls and to cooperate fully with the Department’s ongoing investigation.

In connection with the scheme to bribe Brazilian officials, Technip’s former consultant also pleaded guilty in the Eastern District of New York to a one-count criminal information charging him with conspiracy to violate the FCPA.  He is awaiting sentencing.

All three cases are assigned to U.S. District Judge Kiyo A. Matsumoto of the Eastern District of New York. 

In related proceedings, the company settled with the Advogado-Geral da União (AGU), the Controladoria-Geral da União (CGU) and the Ministério Público Federal (MPF) in Brazil over bribes paid in Brazil.  The United States will credit the amount the company pays to the Brazilian authorities under their respective agreements, with TechnipFMC paying Brazil approximately $214 million in penalties.  

According to admissions and court documents, beginning in at least 2003 and continuing until at least 2013, Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM) and their former consultant, to violate the FCPA by making more than $69 million in corrupt payments and “commission payments” to the consultant, companies associated with the consultant and others, who passed along portions of these payments as bribes to Brazialin government officials who were employees at the Brazilian state-owned oil company, Petrobras, in order to secure improper business advantages and obtaining and retaining business with Petrobas for Technip, Technip USA and Joint Venture.  In addition, Technip made more than $6 million in corrupt payments to the Workers’ Party in Brazil and Workers’ party officials in furtherance of the bribery scheme.

The admissions and court documents also establish that beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.

In the resolutions with the Department, TFMC received credit for its substantial cooperation with the Department’s investigation and for taking extensive remedial measures.  For example, the company separated from or took disciplinary action against former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer participate in the type of work where the misconduct at issue arose; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program.  Accordingly, the criminal fine reflects a 25 percent reduction off the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation.

In a related enforcement action, in December of 2017, KOM and its U.S. subsidiary, Keppel Offshore & Marine USA, Inc., agreed to pay a combined total criminal fine of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore on related conduct.  A former senior member of KOM’s legal department also pleaded guilty and is awaiting sentencing.

The case is being investigated by the FBI’s Washington Field Office International Corruption Squad.  Trial Attorneys Dennis R. Kihm, Derek J. Ettinger and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Eastern District of New York, are prosecuting the case.

The governments of Australia, Brazil, France, Guernsey, Italy, Monaco and the United Kingdom provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.

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

Earlier today, in federal court in Brooklyn, Emerson Gamory pleaded guilty to two counts of aiding in the preparation of false income tax returns for clients, and one count of filing a false income tax return for himself.  When sentenced, Gamory faces a statutory maximum of nine years in prison, as well as forfeiture and a fine.  The plea took place before United States Magistrate Judge Robert M. Levy.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced the guilty plea.  Mr. Donoghue and Mr. Zuckerman expressed their grateful appreciation to the Internal Revenue Service-Criminal Investigation for their investigative work on the case.

 Gamory owned and operated Emerson Gamory Income Tax Services Inc. (“Gamory Tax”), located in Brooklyn.  For the tax years 2012 to 2016, Gamory prepared tax returns for clients that included inflated or fictitious itemized deductions, such as gifts to charity and unreimbursed employee expenses, as well as tax credits for fabricated education expenses, fraudulently reducing clients’ tax liabilities and increasing their refunds. Gamory also prepared false tax returns for Gamory Tax that did not report all gross receipts and tax returns for himself that underreported net profits. 

As part of his plea agreement with the government, Gamory admitted causing a tax loss to the United States of greater than $550,000.

The case is being prosecuted by Assistant United States John Vagelatos, Tax Division Assistant Chief Jorge Almonte and Tax Division Trial Attorney Christopher P. O’Donnell. 

The Defendant:

EMERSON GAMORY
Age:  53
Canarsie, Brooklyn

E.D.N.Y. Docket No. 19-CR-268 (CBA)

Earlier today, in federal court in Brooklyn, Emerson Gamory, 53, pleaded guilty to two counts of aiding in the preparation of false income tax returns for clients, and one count of filing a false income tax return for himself. When sentenced, Gamory faces a statutory maximum of nine years in prison, as well as forfeiture and a fine. The plea took place before United States Magistrate Judge Robert M. Levy.

Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division and Richard P. Donoghue, U.S.  Attorney for the Eastern District of New York made the announcement. Mr. Donoghue and Mr. Zuckerman expressed their grateful appreciation to the Internal Revenue Service-Criminal Investigation for their investigative work on the case.

Gamory owned and operated Emerson Gamory Income Tax Services Inc. (Gamory Tax), located in Brooklyn. For the tax years 2012 to 2016, Gamory prepared tax returns for clients that included inflated or fictitious itemized deductions, such as gifts to charity and unreimbursed employee expenses, as well as tax credits for fabricated education expenses, fraudulently reducing clients’ tax liabilities and increasing their refunds. Gamory also prepared false tax returns for Gamory Tax that did not report all gross receipts and tax returns for himself that underreported net profits. 

As part of his plea agreement with the government, Gamory admitted causing a tax loss to the United States of greater than $550,000. Sentencing is scheduled for Oct. 18, 2019.

The case is being prosecuted by Assistant United States John Vagelatos, Tax Division Assistant Chief Jorge Almonte and Tax Division Trial Attorney Christopher P. O’Donnell. 

Earlier today, at the federal courthouse in Brooklyn, Yehuda Belsky, the owner of Brooklyn-based Y Trading, LLC, pleaded guilty to one count of securities fraud, one count of failure to register as a commodities trading advisor and one count of misappropriation of customer funds.  The plea was entered before United States District Court Judge Allyne R. Ross.   When sentenced, Belsky faces up to 40 years in prison, restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million. 

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 McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the guilty plea.

“With his guilty plea today, Belsky is held responsible for deceiving and defrauding investors, and hiding behind an alias to conceal his permanent ban from trading by the CFTC,” stated United States Attorney Donoghue.  “This Office, together with our law enforcement partners, will continue to protect the integrity of the financial marketplace from dishonest operators like the defendant.”

In 2008, Belsky was permanently barred by the CFTC from trading in commodity futures transactions and options.  Nevertheless, from March 2014 to October 2018, Belsky presented himself to potential investors – using an alias – as an experienced securities and commodities trader.  Belsky promised his victims that he would invest their money by trading securities or binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the price of securities, commodities or other investments at particular points in time.  Instead of doing as promised, Belsky misappropriated his victims’ investments for his personal use and to reimburse investors who had demanded repayment.

 The government’s case is being prosecuted by Trial Attorney Sarah Wilson Rocha of the Criminal Division’s Fraud Section under the supervision of the United States Attorney’s Office, Business and Securities Fraud Section.  The Office’s Civil Division is handling forfeiture matters.

The Defendant:

YEHUDA BELSKY (also known as “Jay Bell”)
Age:  47
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-504 (ARR)

Earlier today, Patrick McDonnell, also known as “Jason Flack,” pleaded guilty at the federal courthouse in Brooklyn to wire fraud in connection with a scheme to defraud investors in virtual currency.  When sentenced, McDonnell faces up to 20 years in prison as well as forfeiture and restitution to his victims.  The plea took place before United States District Judge Nicholas G. Garaufis.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.

 “McDonnell has admitted that he used old-fashioned deception to defraud investors seeking to trade 21st century currencies,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue to prosecute those who swindle the investing public to the full extent of the law.”  Mr. Donoghue expressed his grateful appreciation to the United States Commodity Futures Trading Commission (CFTC) for its significant cooperation and assistance in this case. 

Between approximately November 2014 and January 2018, McDonnell portrayed himself as an experienced trader in virtual currency, promising investors he would provide trading advice and purchase and trade virtual currency on their behalf.  Beginning in approximately May 2016, McDonnell made similar representations through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets.  However, neither McDonnell nor CabbageTech provided investment services.  Instead, McDonnell sent investors false balance statements purportedly showing that their investments had been profitable, and stole their money for his personal use.  McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic and 1,342,634 Verge.

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

The Defendant:

PATRICK MCDONNELL (also known as “Jason Flack”)
Age:  46
Staten Island, New York

E.D.N.Y. Docket No. 19-CR-148 (NGG)

WASHINGTON – Four Assistant United States Attorneys (AUSAs) from the Eastern District of New York (EDNY), one paralegal, and three law enforcement partners were among those recognized by Deputy Attorney General Jeffrey Rosen and Director James Crowell, IV, of the Executive Office for U.S. Attorneys (EOUSA), at the 35th Director’s Awards Ceremony today in Washington D.C.  The EDNY was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

Deputy Attorney General Rosen told the awardees, “Today’s honorees have earned the esteem of their colleagues.  But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
        
EOUSA Director Crowell said, “The Department of Justice is in truth a deployed force.  Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy.  As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”

Immigration Litigation

AUSA Joseph A. Marutollo was recognized for his exemplary performance in leading the district’s demanding civil immigration practice.  Since his appointment as Chief of Immigration Litigation in May 2017, AUSA Marutollo has exhibited exceptional dedication in overseeing more than 800 affirmative and defensive immigration cases and in managing a host of putative class-actions in cases of national significance.  He has demonstrated remarkable initiative in taking on key roles in defending challenges to national immigration policies, including high-profile actions seeking to enjoin the rescission of the Deferred Action for Childhood Arrivals, the termination of Temporary Protected Status designations and the use of immigration detainers.  Additionally, AUSA Marutollo has creatively and successfully defended the government in a variety of cases at trial and on appeal, and Second Circuit and District Court judges have recognized his advocacy skills.  AUSA Marutollo serves as a model of excellence in the handling of the district’s important immigration litigation.

U.S. v. al­Farekh

AUSAs Richard Tucker, Douglas Pravda and Saritha Komatireddy, Counterterrorism Section Trial Attorney Alicia Cook, Paralegal Specialist Wayne Colon, Federal Bureau of Investigation Acting Supervisory Special Agent Shawn Dolinar and New York City Police Department Detective John Darino were recognized for their outstanding performance in the prosecution and conviction of Muhanad al­Farekh.  al-Farekh, a U.S. citizen who left college and traveled to the Federally Administered Tribal Areas of Pakistan, participated in a vehicle-borne improvised explosive device attack against a U.S. military base in Khost, Afghanistan, in 2009, and eventually ascended to a leadership role in al­Qaeda’s external operations group.  The investigation took the team around the globe to locales such as Afghanistan and Morocco.  They deposed an al-Qaeda facilitator in a Middle Eastern country under grueling conditions to secure critical testimony.  They introduced battlefield forensic evidence and computer media acquired in Afghanistan under highly sensitive circumstances.  The team also successfully litigated a variety of unprecedented and classified issues.  Their victory after a three-week trial in September 2017 resulted in a 45-year prison sentence imposed in March 2018.

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country.  For more information on EOUSA and its mission, visit http://www.justice.gov/usao.  For more information about the United States Attorney’s Office for the Eastern District of New York, visit www.justice.gov/usao/nye.

 

Leon Campbell, a citizen of Jamaica, pled guilty yesterday at the federal courthouse in Brooklyn to murder-for-hire conspiracy and conspiracy to distribute marijuana.  When sentenced, Campbell faces up to 30 years in prison, as well as forfeiture and a fine of up to $1 million.  The plea took place before United States Magistrate Judge Robert M. Levy.   

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

“Leon Campbell showed total disregard for human life, seeking to have a hired gun kill someone he suspected of being a federal informant,” stated United States Attorney Donoghue.  “The commendable work by our law enforcement partners prevented a murder from taking place.”  Mr. Donoghue extended his grateful appreciation to the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement, the United States Marshal Service, and the New York City Police Department for their assistance during the investigation.

According to court filings and facts presented at Campbell’s guilty plea and co-defendant Ronald Williams’ trial last year, on April 26, 2013, DEA agents followed Campbell as he was making a delivery of marijuana to a customer in Brooklyn.  Campbell spotted the agents and fled, suspecting his customer was an informant who had provided information to federal law enforcement.  On April 30, 2013, Campbell called Williams and offered to pay him $5,000 to kill the suspected informant.  Williams agreed to commit the murder and chose a gang member to carry out the contract.  Subsequently, when Campbell told Williams that he would personally kill the suspected informant but needed an alibi, Williams responded that it would be better to pay someone else to do the job and “get it right.”  The murder was not carried out. 

Williams was convicted in January 2018 of all counts, including murder-for-hire conspiracy, following a two-week trial before United States District Judge LaShann DeArcy Hall. 

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Hiral D. Mehta are in charge of the prosecution.

The Defendant:

LEON CAMPBELL (also known as “Country”)
Age: 41
Brooklyn, New York

E.D.N.Y. Docket No. 13-CR-419 (LDH)

Keith Raniere, the founder and leader of Nxivm, was convicted today by a federal jury in Brooklyn of all seven counts of a superseding indictment charging him with racketeering and racketeering conspiracy; sex trafficking, attempted sex trafficking and sex trafficking conspiracy; forced labor conspiracy and wire fraud conspiracy.  The racketeering offense included predicate acts of extortion, identity theft, and production and possession of child pornography.  The verdict followed more than six weeks of trial before United States District Judge Nicholas G. Garaufis.  When sentenced, Raniere faces a mandatory minimum of 15 years’ imprisonment, and up to 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), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.

 “As found by the jury, Keith Raniere masqueraded as a self-help guru to gain the trust of his followers, and then exploited them for his own financial gain and sexual gratification,” stated United States Attorney Donoghue.  “Raniere and his co-conspirators will now face the consequences for the serious crimes they committed and the profound harm they have caused their victims.”  Mr. Donoghue extended his grateful appreciation to Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.

“Nxivm’s so called self-help programs did anything but help the women they professed to empower,” stated FBI Assistant Director-in-Charge Sweeney.  “What’s been proven today is that Keith Raniere preyed on the vulnerabilities of his many female victims, sold them lies and other falsehoods, and committed horrifying acts of coercion.  This guilty verdict is a welcome end to a case that highlighted the many avenues of criminal activity pursued by a man whose intentions were deplorable beyond belief.”   

“IRS Criminal Investigation plays a pivotal role in tracing the illicit funds from such horrendous criminal behavior,” stated IRS-CI Special Agent-in-Charge Larsen.  “We proudly stand with our law enforcement partners in uncovering such crimes, and justice has been served.”
As proven at trial, in 2003, Raniere founded Nxivm, a purported self-help organization headquartered in Albany, New York, with centers operating elsewhere in the United States, Mexico and Canada.  Raniere established Executive Success Programs (“ESP”), a series of purported self-help workshops in which participants paid thousands of dollars to attend classes based on Raniere’s teachings.  In 2015, Raniere added a secret society within Nxivm called DOS or “The Vow,” with levels of women “slaves” headed by “masters.”  The goal of the criminal enterprise was to promote Raniere, for example, by exalting his teachings and ideology, and to recruit new members, including as sexual partners for Raniere.   

In the course of their racketeering enterprise, Raniere and his co-conspirators committed multiple crimes, including sex trafficking, forced labor, computer hacking, fraud and identity theft.  Raniere maintained command and control over his DOS members by collecting “collateral” from them, such as sexually explicit photos and letters making accusations against their loved ones that would be embarrassing if disclosed.  For example, “Nicole,” a victim witness, testified that she was coerced into providing labor and services for Nxivm, which included taking photographs of naked women members and engaging in sex acts with Raniere, under threat of release of her collateral.  DOS slaves were also branded with Raniere’s initials in their pelvic area using a cauterizing pen.  The members of the “inner circle” were rewarded with financial opportunities and increased power and status within the enterprise.

Raniere and his co-conspirators also worked to support Raniere and protect Nxivm from perceived enemies.  Raniere conspired with two of his closest associates in Nxivm to have “Daniela,” a member of his inner circle at the time, cross the Canadian border into the U.S. with a fake identification card bearing the name of a dead woman.  Daniela testified that she assisted Raniere hack into the email accounts of persons he believed were enemies of Nxivm.

Among Raniere’s crimes was sexual exploitation of a child and possession of child pornography.  Specifically, Raniere began having sex with a victim member identified as “Camila” when she was 15-years-old and he was 45.  Raniere also took naked photographs of Camila when she was a minor.

Each of Raniere’s co-defendants previously pleaded guilty.  On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy.  On March 25, 2019, Lauren Salzman, a first-line master over slaves in DOS, pleaded guilty to racketeering and racketeering conspiracy.  On April 8, 2019, Allison Mack, a first-line master, pleaded guilty to racketeering and racketeering conspiracy.  On April 19, 2019, Clare Bronfman, a high-ranking member of Nxivm’s Executive Board, pleaded guilty to conspiracy to conceal and harbor illegal aliens for financial gain, and fraudulent use of identification documents, and Kathy Russell, Nxivm’s bookkeeper, pleaded guilty to visa fraud.  They are awaiting sentencing.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Moira Kim Penza, Tanya Hajjar, Mark J. Lesko and Kevin M. Trowel are in charge of the prosecution.  Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.

The Defendant:

KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age:  58
Waterford, New York

The Defendants Who Previously Pleaded Guilty:

CLARE BRONFMAN
Age:  40
Clifton Park, New York

ALLISON MACK
Age:  36
Brooklyn, New York

KATHY RUSSELL
Age:  61
Clifton Park, New York

LAUREN SALZMAN
Age:  43
Clifton Park, New York

NANCY SALZMAN (also known as “Prefect”)
Age:  65
Clifton Park, New York

E.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)

A second superseding indictment was unsealed today in federal court in Brooklyn charging Anthony Zottola, Sr., Jason Cummings, Alfred Lopez, Julian Snipe and five previously charged defendants with murder-for-hire conspiracy and related charges in connection with the fatal shooting of Zottola, Sr.’s father, Sylvester Zottola, on October 4, 2018, and the near-fatal shooting of his brother, Salvatore Zottola, on July 11, 2018.  The four new defendants were arrested last night and this morning, and will be arraigned this afternoon before United States Chief Magistrate Judge Roanne L. Mann.  A fifth new defendant, Branden Peterson, is a fugitive.

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 superseding indictment.

“As alleged, Zottola Sr. set in motion a deadly plot to kill his father and brother, with Bloods gang members carrying out extreme acts of violence to collect a payoff for the hits,” stated United States Attorney Donoghue.  “Zottola. Sr. and Shelton referred to the planned murders as ‘filming’ a movie, but thanks to the outstanding work of law enforcement, the ending of their plot will take place in a federal courthouse.”

“There is apparently no love lost between Mr. Zottola and his family members, so much so he allegedly hired members of the Bloods gang to kill his brother and father,” stated FBI Assistant Director-in-Charge Sweeney.  “After several botched attempts on both mens’ lives, sadly his father did not survive the last attack.  The FBI and our law enforcement partners have evidence of astounding violence in this case, and now Zottola and all his alleged hitmen will face justice.”

“The co-conspirators in this case committed acts of extreme violence, with murder as their ultimate goal,” stated NYPD Commissioner O’Neill.  “I want to thank the investigators who worked on this case to bring these violent criminals to justice.”

According to court filings, Anthony Zottola, Sr. allegedly hired co-defendant Bushawn Shelton, a member of the Bloods street gang, to carry out the murders of his father and his brother.  Shelton, in turn, recruited others to commit the murders.  In text messages with Shelton, Zotolla, Sr. referred to the planned murder as “the filming” and the “final scene” – with his father as “the actor” and the hit man as “the director.”

In furtherance of the plot, between September 2017 and October 11, 2018, multiple violent attacks were committed against Sylvester Zottola and Salvatore Zottola.  On November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual.  On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck Zottola on the head with a gun, stabbed him multiple times and slashed his throat.  Zottola survived the attack.  

On July 11, 2018, a gunman shot Salvatore Zottola multiple times in the head, chest and hand in front of his residence.  Zottola survived the shooting.  On October 4, 2018, Sylvester Zottola was shot to death in his vehicle as he waited to pick up his order at a McDonalds restaurant drive-through in the Bronx.  Shortly thereafter, a co-conspirator texted Shelton, “Done.”  Minutes later, Shelton texted Zottola, Sr., “Can we party today or tomorrow?”  After agreeing to meet the following day, Zottola, Sr. assured Shelton that he would have his payment ready soon:  “I have the cases of water in a day or so.”  A photograph recovered from one of Shelton’s cellular telephones depicts a cardboard box of bottled water, as well as over $200,000 in banded currency.  On October 7, 2019, Zottola, Sr. texted Shelton, “All good.  Did you drink the water.  Was it the right one,” to which Shelton responded, “Definitely was the right one thanks I was able to water the plants and get some of them squared away.”

Earlier this morning, law enforcement executed search warrants at three of the defendants’ residences.  A handgun was recovered at Snipes’ apartment, and approximately $100,000 in U.S. currency was seized at Zottola, Sr.’s home.      

Previously charged for their roles in the murder-for-hire plot and awaiting trial are Shelton, Herman Blanco, Arthur Codner, Kalik McFarlane and Himen Ross. 

If convicted of conspiring to commit a murder-for-hire, the defendants face a mandatory penalty of life imprisonment, or possibly the death penalty.

The charges in the superseding indictment 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 and Gangs Section.  Assistant United States Attorneys Lindsay K. Gerdes and Kayla C. Bensing are in charge of the prosecution.

Defendants Arrested Today:

ANTHONY ZOTTOLA, SR.
Age:  41 
Larchmont, New York

JASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age:  31 
Brooklyn, New York

ALFRED LOPEZ (also known as “Aloe”)
Age:  36
New York, New York

JULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age:  32  
Bronx, New York

Defendants Previously Indicted:

HERMAN BLANCO (also known as “Taliban” and “L”)
Age:  34
Bronx, New York

ARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age:  31
New Hampton, New York

KALIK MCFARLANE (also known as “Dottkom” and “Dot”)
Age:  37
Brooklyn, New York

HIMEN ROSS (also known as “Ace” and “A Boggie”)
Age:  33
Bronx, New York

BUSHAWN SHELTON (also known as “Shelz”)
Age:  35
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-609 (S-2) (RJD)

 

Earlier today, in federal court in Brooklyn, Faruq Khalil Muhammad ‘Isa was sentenced to 26 years imprisonment to be followed by a lifetime of supervised release by United States District Judge Roslynn R. Mauskopf for his role in conspiring to murder U.S. soldiers in Iraq.  ‘Isa pleaded guilty to the charge of conspiring to kill Americans abroad in March 2018.  The Court entered a judicial order of removal to Canada.

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

“Today’s sentence brings some measure of earthly justice to an individual involved in the deaths of five service members, but it cannot begin to compensate for the evil he contributed to or alleviate the pain of those families whose lives he changed forever,” said Assistant Attorney General Demers.  “We in the National Security Division are inspired in our work by those who put their lives on the line to keep us safe.”

“With today’s sentence, ‘Isa has been held accountable for his role in a deadly conspiracy that resulted in the tragic loss of five U.S. soldiers in Iraq,” stated United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force, will take every step necessary to apprehend and prosecute terrorists, wherever they are located, in furtherance of our fundamental mission of protecting the American people.”

“Muhammad ‘Isa’s efforts to facilitate a suicide attack, one that ultimately resulted in the death of five young American soldiers in Iraq, has landed him a sentence of more than two decades behind bars,” said FBI Assistant Director-in-Charge Sweeney.  “While this sentence is significant, it doesn’t come close to mitigating the pain and suffering these soldiers’ families will face for the rest of their lives.  As this case comes to a close, let us remember the names of those who were murdered that day, and vow to never forget the daily sacrifices made by the brave men and women of the U.S. armed forces and their families.”

“The NYPD will do everything in its power to combat terror, and to support the brave men and women serving our country overseas,” said NYPD Commissioner O’Neill.  “This includes defeating deadly terrorist conspiracies that target U.S. troops.  I want to commend our partners in the U.S. Attorney’s Office and the FBI for helping to bring Mr. ‘Isa’s to justice for his role in this tragic and cowardly act.”

According to court documents, the defendant was a member of a multinational terrorist network that conducted multiple suicide bombings in Iraq.  The network orchestrated an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009.  A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base.  The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground.  Five American soldiers were killed in the blast.  They are:  Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California. 

While residing in Canada, the defendant was in communication with Syria- and Iraq-based members of the facilitation network, as well as certain individuals who conducted the April 10, 2009 attack, as well as a group of individuals whose efforts to travel to Iraq to conduct suicide attacks were ultimately unsuccessful.  The defendant knowingly undertook efforts to assist the prospective suicide bombers achieve their desired result by suggesting a contact to facilitate travel for the would-be attackers from Syria into Iraq, as well as by offering words of encouragement and religious guidance.

‘Isa has been incarcerated since his extradition from Canada in January 2015.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution with the assistance of the National Security Division’s Counterterrorism Section.

Earlier today, in federal court in Brooklyn, Faruq Khalil Muhammad ‘Isa was sentenced to 26 years’ imprisonment to be followed by a lifetime of supervised release by United States District Judge Roslynn R. Mauskopf for his role in conspiring to murder U.S. soldiers in Iraq.  ‘Isa pleaded guilty to the charge in March 2018.  The Court entered a judicial order of removal to Canada.

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 sentence.

“With today’s sentence, ‘Isa has been held accountable for his role in a deadly conspiracy that ultimately contributed to the tragic loss of five U.S. soldiers in Iraq,” stated United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force, will take every step necessary to apprehend and prosecute terrorists, wherever they are located, in furtherance of our fundamental mission of protecting the American people.”

“Today’s sentence brings some measure of earthly justice to an individual involved in the deaths of five service members, but it cannot begin to compensate for the evil he contributed to or alleviate the pain of those families whose lives he changed forever,” said Assistant Attorney General Demers.  “We in the National Security Division are inspired in our work by those who put their lives on the line to keep us safe.”

“Muhammad ‘Isa’s efforts to facilitate a suicide attack, one that ultimately resulted in the death of five young American soldiers in Iraq, has landed him a sentence of more than two decades behind bars,” stated FBI Assistant Director-in-Charge Sweeney.  “While this sentence is significant, it doesn’t come close to mitigating the pain and suffering these soldiers’ families will face for the rest of their lives. As this case comes to a close, let us remember the names of those who were murdered that day, and vow to never forget the daily sacrifices made by the brave men and women of the U.S. armed forces and their families.”

“The NYPD will do everything in its power to combat terror, and to support the brave men and women serving our country overseas,” stated NYPD Commissioner O’Neill.  “This includes defeating deadly terrorist conspiracies that target U.S. troops.  I want to commend our partners in the U.S. Attorney’s Office and the FBI for helping to bring Mr. ‘Isa to justice for his role in this tragic and cowardly act.” 

The defendant was a member of a multinational terrorist network that helped those who wished to carry out suicide bombings travel to Iraq.  On April 10, 2009, terrorists associated with the network carried out an attack on the United States Military’s Forward Operating Base Marez (“FOB Marez”) in Mosul, Iraq.  Terrorists drove a truck laden with explosives drove to the gate of FOB Marez, and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base.  The truck detonated alongside the last vehicle in the convoy, leaving a 60-foot crater in the ground.  Five American soldiers were killed in the blast:  Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, of Cyprus, California. 

While residing in Canada, the defendant communicated with Syria- and Iraq-based members of the terrorist network, including certain individuals who conducted the April 10, 2009 attack.  In those communications, the defendant suggested a contact to facilitate travel for the attackers from Syria into Iraq, in addition to offering words of encouragement and religious guidance.  He also communicated with a group of prospective suicide bombers whose efforts to travel to Iraq were ultimately unsuccessful. 

‘Isa has been incarcerated since his extradition from Canada in January 2015.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution with the assistance of the National Security Division’s Counterterrorism Section.

The Defendant:

FARUQ KHALIL MUHAMMAD ‘ISA
Age: 51
Toronto, Canada

E.D.N.Y. Docket No.  11-CR-819 (RRM)

 

 

Earlier today in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years imprisonment to be followed by five years supervised release by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.  Naji pleaded guilty to the charge in February 2018.

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

“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers.  “This is just what Naji did.  Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”

“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” said United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people.  I commend the Task Force for its outstanding work in this case.”          

“Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney.  “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison.  Mr. Naji will remember today as sentencing day, nothing more.  Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans.  Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”

“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill.  “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”

By late 2014, Naji had become a committed supporter of ISIS’s murderous cause as he repeatedly promoted and distributed ISIS propaganda with violent themes and messages on social media.  In March 2015, Naji traveled from New York to Yemen in an effort to join ISIS.  Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the CS).  In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.”

Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad.  In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, that killed scores of innocent civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want[s] an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.”  Naji further explained, “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.” 

Naji has been incarcerated since his arrest in Brooklyn in November 2016.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.

Earlier today, in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years’ imprisonment by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.  Naji pleaded guilty to the charge in February 2018.  

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

“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” stated United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people.  I commend the Task Force for its outstanding work in this case.”

“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers.  “This is just what Naji did.  Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”

 “Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney.  “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison.  Mr. Naji will remember today as sentencing day, nothing more.  Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans.  Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”

“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill.  “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”

By late 2014, Naji had become a committed supporter of ISIS as he repeatedly promoted its mission and distributed the terrorist group’s propaganda with violent themes and messages on social media.  In March 2015, Naji traveled from New York City to Yemen in an effort to join ISIS.  Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the “CS”).  In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.” 

Following his return to the United States in September 2015, Naji continued to express support for ISIS and violent jihad.  In July 2016, following an ISIS-inspired terrorist truck attack in Nice, France that killed scores of civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square: “[ISIS] want an operation in Times Square” and “[an ISIS] reconnaissance group . . . put up scenes of Times Square.”  Naji added: “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.” 

Naji has been incarcerated since his arrest in Brooklyn in November 2016.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.

The Defendant:

MOHAMED RAFIK NAJI
Age: 40
Brooklyn, New York

E.D.N.Y. Docket No.  16-CR-653 (FB)

 

Earlier today, a federal jury in Brooklyn returned a guilty verdict against Shakeem Boykins charging him with being a felon in possession of a firearm and ammunition.  The verdict followed a five-day trial before United States District Judge Edward R. Korman.  When sentenced, Boykins faces up to 10 years’ imprisonment. 

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

 “The danger posed by a felon possessing a firearm was brought into sharp focus in this case, where the defendant shot a woman simply for being in a certain part of the Pink Houses against his wishes,” stated United States Attorney Donoghue.  This Office and its law enforcement partners will do everything in our collective power to stop gun violence, including prosecuting those who illegally possess guns to the fullest extent of the law.”  Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation (FBI), New York Field Office, Safe Streets Task Force, which is comprised of FBI special agents and New York City Police Department (NYPD) detectives.

The evidence at trial established that on the afternoon of October 5, 2017, outside the Louis H. Pink Houses on Linden Boulevard in East New York, Boykins approached a woman with whom he and his friends had been in a dispute, and told her to leave the area.  When she refused, Boykins rode away on a bicycle and returned with a handgun.  Boykins then shot the woman twice at close range, striking her in the left leg.  A .40 caliber cartridge casing was recovered at the scene.  Subsequently, the NYPD recovered from his associates the .40 Glock semiautomatic handgun that Boykins had used in the shooting. 

As presented at trial, Boykins was convicted in 2013 of a felony offense in Queens County Supreme Court.  In addition, he was convicted in federal court in 2015 of being a member of a heroin and crack cocaine drug-trafficking conspiracy based in the Pink Houses.

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

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

The Defendant:

SHAKEEM BOYKINS
Age:  24
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-338 (ERK)

 

Earlier today, at the federal courthouse in Brooklyn, John Servider was sentenced by United States District Judge Eric N. Vitaliano to 18 months’ imprisonment and fined $1,000 for obstructing a grand jury investigation in the Eastern District of New York.  Specifically, Servider conspired to alter, and did alter, records responsive to a grand jury subpoena by removing the name of his client, Vincent Vertuccio.  From 1988 until his conviction at trial in May 2018, Servider had been licensed by the State of New York to practice law. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI),  Michael C. Mikulka, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL OIG), and Michael Nestor, Inspector General, Port Authority of New York and New Jersey, Office of Inspector General (PA-OIG), announced the sentence.

“With today’s sentence, Servider pays the price for violating the law and his oath as an attorney by impeding a federal grand jury investigation of his client,” stated United States Attorney Donoghue.  “Crimes like those committed by the defendant undermine the integrity of our criminal justice system.  Attorneys who commit such crimes are on notice that this Office will prosecute them to the fullest extent of the law.”

“It’s unconscionable that a licensed attorney would corruptly assist a client with evidence tampering in order to evade income taxes,” stated IRS-CI Special Agent-in-Charge Larsen.  “When IRS special agents begin their career, they take an oath to uphold the constitution, a similar oath Mr. Servider swore to when he became a practicing attorney.”

“John Servider violated the law and his oath as an officer of the court when he obstructed a grand jury investigation by deliberately providing the grand jury with false documents,” said DOL OIG Special Agent-in-Charge Mikulka.  “Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold those who obstruct criminal investigations accountable for their actions.”

“Servider’s conduct was egregious on many ethical and legal levels.  His criminal conduct in altering documents to a federal grand jury subpoena was an effort to obstruct the Government’s investigation, and was also an effort to mislead the federal Grand Jury,” stated PA-OIG Inspector General Nestor.  “These actions are particularly serious given that Servider had been an attorney.  The PA-OIG thanks its law enforcement partners for the cooperative effort exhibited throughout this investigation and prosecution.”

In March 2013, Servider learned that federal law enforcement agencies were investigating Vertuccio for receiving unreported income – including Rolex watches and other expensive jewelry – from Crimson Corporation, a construction company that he controlled as a silent partner.  After a grand jury subpoena was served on a jewelry store, Servider and Vertuccio agreed to alter the store’s receipts and invoices by removing any mention of Vertuccio.  As part of the scheme, Servider also instructed Crimson Corporation principals to destroy other evidence relevant to the grand jury investigation. 

Vertuccio pleaded guilty in April 2017 to filing a false tax return and conspiracy to obstruct justice.  He was sentenced to 24 months’ imprisonment in October 2018.

The government’s case is being handled by the Office’s Organized Crime & Gangs Section.  Assistant United States Attorneys Tanya Hajjar and Jonathan P. Lax are in charge of the prosecution.

The Defendant: JOHN SERVIDER
Age: 56
Patterson, New York

E.D.N.Y. Docket No. 15-CR-174 (ENV)

WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.

The Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, and Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.

“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”

“Schemes that target elderly and vulnerable victims are unconscionable,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “The Transnational Elder Fraud Strike Force will use every resource available to ensure that, no matter where they are, perpetrators of elder fraud will be stopped and prosecuted.”

“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”

“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”

Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.

The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.

The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least three million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.

More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.