Eastern District of New York

Earlier today, at the federal courthouse in Brooklyn, Georgian national Michail Chkhikvishvili, also known as “Mishka,” “Michael,” “Commander Butcher,” and “Butcher,” pleaded guilty to soliciting hate crimes and sending instructions to make bombs and ricin.  Chkhikvishvili was a leader of Maniac Murder Cult, an international racially motivated violent extremist group.  Chkhikvishvili recruited people to commit violent acts in furtherance of Maniac Murder Cult’s ideologies, including planning and soliciting a mass casualty attack in New York City.  In May 2025, Chkhikvishvili was extradited from Moldova to the Eastern District of New York.

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg, Assistant Attorney General of the Justice Department’s National Security Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“The outstanding investigative work in this case saved untold lives and underscores the crucial behind-the-scenes activity of our federal law enforcement agents,” stated Attorney General Bondi.  “Violent, nihilistic, racist groups like these are an ongoing threat to the American people – our vigilance will not waver as we protect our citizens.”

“The defendant has admitted his vile actions, including recruiting others to commit acts of violence against Jewish and racial minority children.  His incitement of hate crimes resulted in real-world violence,” stated United States Attorney Nocella.  “This prosecution shows that our Office will protect all communities from evildoers like the defendant from wherever they spew their hate.”

Mr. Nocella praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, as well as the Department of State, U.S. Customs and Border Protection, the Justice Department’s Office of International Affairs, and the government of Moldova for their crucial assistance in securing Chkhikvishvili’s arrest and extradition.

“Chkhikvishvili’s monstrous plots and propaganda calling for racially motivated violence against civilians, including children, posed a grave threat to public safety,” stated Assistant Attorney General Eisenberg.  “Unfortunately, his efforts on behalf of the aptly named Maniac Murder Cult in fact caused mayhem and death.  We condemn his despicable ideology and will use every tool at our disposal to bring such predators to justice.”

“Michail Chkhikvishvili actively encouraged his recruits of his Maniac Murder Cult to incite mass violence targeted at Jewish individuals and other minorities, including orders to bomb Jewish facilities and poison Jewish children. His vile propensity for discriminatory violence sparked actual attacks and casualties not only in this country, but across the globe.  The FBI and its Joint Terrorism Task Force will not tolerate anyone to solicit unnecessary death and harm out of prejudice and hate,” stated FBI Assistant Director in Charge Raia.

“Michail Chkhikvishvili plotted extensive terrorist attacks targeting Jewish New Yorkers, including horrific plans to poison children.  This wasn’t just violent behavior — it was extreme antisemitism rooted in Neo-Nazi ideology that put communities here and around the world at risk,” stated NYPD Commissioner Tisch.  “All New Yorkers deserve a city where they can live free from fear, regardless of their religious identity, and this guilty plea makes one thing clear: The NYPD will never tolerate hate or bias-fueled violence in any form.  I am grateful to the NYPD investigators, the FBI, the Justice Department, and the U.S. Attorney’s Office for bringing Michail Chkhikvishvili to justice.”

In June 2022, Chkhikvishvili traveled to Brooklyn, New York. Beginning as early as July 2022, Chkhikvishvili repeatedly encouraged others, primarily via the encrypted messaging application Telegram, to commit violent hate crimes and other acts of violence on behalf of Maniac Murder Cult.  This included soliciting acts of mass violence in New York from an individual who, unbeknownst to Chkhikvishvili, was an undercover FBI employee (the UC).

Since approximately September 2021, Chkhikvishvili has distributed a manifesto titled the “Hater’s Handbook” to Maniac Murder Cult members and others.  The Hater’s Handbook encourages people to commit acts of mass violence.  For example, the Hater’s Handbook encourages its readers to commit school shootings.

Beginning in approximately November 2023, Chkhikvishvili solicited the UC to commit violent crimes, such as bombings and arsons, for the purpose of harming racial minorities, Jewish individuals and others.  In November 2023, Chkhikvishvili began planning a mass casualty attack in New York City to take place on New Year’s Eve. The scheme involved having an individual dress up as Santa Claus and hand out candy laced with poison to racial minorities.  In January, the scheme evolved and Chkhikvishvili specifically directed the UC to target the Jewish community, Jewish schools, and Jewish children in Brooklyn with poison.  Chkhikvishvili sent detailed manuals about creating and mixing lethal poisons and gases, including ricin.   

Chkhikvishvili’s encouragement of violence have resulted in multiple attacks and killings around the world:

• In January 2025, a 17-year-old student killed one individual and injured another before dying by suicide inside Antioch High School in Nashville, Tennessee.  The attacker livestreamed part of the attack.  Prior to the attack, in an audio recording posted online and attributed to him, the attacker claimed he was taking action on behalf of Maniac Murder Cult and at least one other group.  The attacker’s manifesto explicitly mentioned Chkhikvishvili.
• In August 2024, an individual livestreamed himself stabbing approximately five people outside of a mosque in Eskisehir, Turkey, wearing a tactical vest bearing Nazi symbols.  A manifesto attributed to the attacker included explicit references to Chkhikvishvili and to violent statements made by him.  Before the attack, the attacker also distributed a link to the Hater’s Handbook, authored by Chkhikvishvili, and other violent propaganda.

Chkhikvishvili faces a maximum sentence of 40 years’ imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ellen H. Sise and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section and Paralegal Specialists Wayne Colon and Rebecca Roth.

The Defendant:

MICHAIL CHKHIKVISHVILI (also known as “Mishka,” “Michael,” “Commander Butcher” and “Butcher”)
Age:  22
Tbilisi, Georgia

E.D.N.Y. Docket No. 24-CR-286 (CBA)

Earlier today, at the federal courthouse in Brooklyn, Georgian national Michail Chkhikvishvili, also known as “Mishka,” “Michael,” “Commander Butcher,” and “Butcher,” pleaded guilty to soliciting hate crimes and sending instructions to make bombs and ricin.  Chkhikvishvili was a leader of Maniac Murder Cult, an international racially motivated violent extremist group.  Chkhikvishvili recruited people to commit violent acts in furtherance of Maniac Murder Cult’s ideologies, including planning and soliciting a mass casualty attack in New York City.  In May 2025, Chkhikvishvili was extradited from Moldova to the Eastern District of New York.

“The outstanding investigative work in this case saved untold lives and underscores the crucial behind-the-scenes activity of our federal law enforcement agents,” said Attorney General Pamela Bondi. “Violent, nihilistic, racist groups like these are an ongoing threat to the American people – our vigilance will not waver as we protect our citizens.”

“With today’s guilty plea, this defendant admits to a horrific plot targeting Jewish people and racial minorities and even planned to poison children with candy around the holidays,” said FBI Director Kash Patel. “The defendant was extradited from Moldova to face charges. This case shows once more that no matter where you are, if you try to harm our citizens the FBI and our partners will find you and bring you to justice.”

“Chkhikvishvili’s monstrous plots and propaganda calling for racially motivated violence against civilians, including children, posed a grave threat to public safety,” said Assistant Attorney General John A. Eisenberg. “Unfortunately, his efforts on behalf of the aptly named Maniac Murder Cult in fact caused mayhem and death.  We condemn his despicable ideology and will use every tool at our disposal to bring such predators to justice.”

“The defendant has admitted his vile actions, including recruiting others to commit acts of violence against Jewish and racial minority children. His incitement of hate crimes resulted in real-world violence,” said U.S. Attorney Joseph Nocella, Jr. “This prosecution shows that our Office will protect all communities from evildoers like the defendant from wherever they spew their hate."

In June 2022, Chkhikvishvili traveled to Brooklyn, New York.  Beginning as early as July 2022, Chkhikvishvili repeatedly encouraged others, primarily via the encrypted messaging application Telegram, to commit violent hate crimes and other acts of violence on behalf of Maniac Murder Cult. This included soliciting acts of mass violence in New York from an individual who, unbeknownst to Chkhikvishvili, was an undercover FBI employee (the UC).

Since approximately September 2021, Chkhikvishvili has distributed a manifesto titled the “Hater’s Handbook” to Maniac Murder Cult members and others. The Hater’s Handbook encourages people to commit acts of mass violence. For example, the Hater’s Handbook encourages its readers to commit school shootings.

Beginning in approximately November 2023, Chkhikvishvili solicited the UC to commit violent crimes, such as bombings and arsons, for the purpose of harming racial minorities, Jewish individuals and others. In November 2023, Chkhikvishvili began planning a mass casualty attack in New York City to take place on New Year’s Eve. The scheme involved having an individual dress up as Santa Claus and hand out candy laced with poison to racial minorities.  In January, the scheme evolved and Chkhikvishvili specifically directed the UC to target the Jewish community, Jewish schools, and Jewish children in Brooklyn with poison. Chkhikvishvili sent detailed manuals about creating and mixing lethal poisons and gases, including ricin. 

Chkhikvishvili’s encouragement of violence have resulted in multiple attacks and killings around the world:

• In January 2025, a 17-year-old student killed one individual and injured another before dying by suicide inside Antioch High School in Nashville, Tennessee. The attacker livestreamed part of the attack. Prior to the attack, in an audio recording posted online and attributed to him, the attacker claimed he was taking action on behalf of Maniac Murder Cult and at least one other group. The attacker’s manifesto explicitly mentioned Chkhikvishvili.
• In August 2024, an individual livestreamed himself stabbing approximately five people outside of a mosque in Eskisehir, Turkey, wearing a tactical vest bearing Nazi symbols. A manifesto attributed to the attacker included explicit references to Chkhikvishvili and to violent statements made by him.  Before the attack, the attacker also distributed a link to the Hater’s Handbook, authored by Chkhikvishvili, and other violent propaganda.

Chkhikvishvili faces a maximum sentence of 40 years in prison.

The FBI’s New York Joint Terrorism Task Force investigated the case. The task force consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, as well as the Department of State, U.S. Customs and Border Protection, the Justice Department’s Office of International Affairs, and the government of Moldova for their crucial assistance in securing Chkhikvishvili’s arrest and extradition.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ellen H. Sise and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section and Paralegal Specialists Wayne Colon and Rebecca Roth.

Earlier today, a federal jury in Central Islip convicted investment advisors and twin brothers Adam and Daniel Kaplan of wire fraud conspiracy, wire fraud, investment advisor fraud, and money laundering conspiracy.  Adam Kaplan was additionally found guilty of another count of conspiracy to commit wire fraud, bank and wire fraud conspiracy, money laundering, and attempted obstruction of justice while on pre-trial release.  The verdict was returned after an eight-week trial before United States District Judge Joan M. Azrack.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict. 

“With today’s verdict, Adam and Daniel Kaplan stand convicted of stealing millions of dollars from clients, some of whom were elderly and disabled, who trusted the defendants to invest their money, but instead were betrayed by these ruthless thieves,” stated United States Attorney Nocella.  “Adam Kaplan is facing additional, very serious consequences for seeking to undermine the criminal justice process by attempting to threaten victims and witnesses and bribe Department of Justice officials.  I commend the prosecutors from our Office and the FBI Special Agents who worked tirelessly to unravel the defendants’ fraudulent schemes and bring them to justice for the harm their greed has caused.”

Mr. Nocella thanked the United States Securities and Exchange Commission, Chicago Regional Office, and Internal Revenue Service, Criminal Investigation for their work on the case. 

“Adam and Daniel Kaplan demonstrated a pattern of deceit to steal millions of dollars from trusting investors, while the former threatened victims in an attempt to obstruct the federal investigation into the brothers’ misconduct. These defendants exploited the trust, vulnerability, and, at times, health of more than 100 victims to selfishly enrich themselves.  May today’s conviction reflect the FBI’s continued promise to hold accountable those who target the wallets of others out of personal greed,” stated FBI Assistant Director in Charge Raia.

Fraudulent Scheme While Working as Investment Advisors

As proven at trial and set forth in other public filings, between May 2018 and July 2021, Adam and Daniel Kaplan acted as investment advisors at an investment advisory firm, IHT Wealth Management, for hundreds of clients.  The defendants used their positions of trust to steal at least $10 million dollars from those clients, and used the stolen funds for personal expenses and to purchase luxury goods.

The defendants used various schemes to steal from their victims.  For example, the defendants consistently sent clients contracts to begin their client-advisor relationship.  The defendants promised these clients that their fees would be approximately 1% per year, and sometimes less.  The contracts that the defendants sent their victims, however, did not include the specific fee percentage that they promised. Instead, it was blank.  Based on the defendants’ lies, and the victims’ trust in the defendants, the victims signed the contracts with the fee portion of the contract blank.  The defendants then filled in the fee percentage at a much higher rate than what was promised, sometimes more than four times as high.

The defendants also siphoned money from their victims’ bank accounts without any authorization or approval.  The defendants hid these charges from their victims by, before charging the victims, transferring money to the victims’ bank accounts from the victims’ own brokerage accounts in the exact amount that the defendants charged so that the balance of the victims’ bank account appeared unchanged.

To conceal their years-long fraudulent scheme, the defendants repeatedly lied to their clients about the fraudulent charges, forged their clients’ signatures on documents, and lied to financial institutions.  As part of the government’s investigation, the government recovered over a dozen fake contracts purportedly between the defendants and their victims for services such as “life coaching” or “divorce consultation” but the defendants never provided any of these services to their victims.

The defendants’ victims included individuals who were elderly and disabled, as well as family and friends.  For example, the defendants took out a loan in an elderly victim’s name while she was caring for her dying husband; stole hundreds of thousands of dollars in fraudulent loans; and left the victim to pay the lender on her own.  As another example, the defendants stole from a family in Arizona, including a 100-year-old grandmother; specifically, Daniel Kaplan tricked the family into sending him checks and then altered the checks and deposited them into his own account.

Additional Fraud Schemes

After IHT uncovered the defendants’ fraud, IHT fired the defendants in July 2021.  However, Adam and Daniel Kaplan continued to steal from victims after July 2021. Among those victims included a woman with dementia who, at the time that the defendants stole hundreds of thousands of dollars from her, could not recognize her husband of decades.  As part of his fraud, Adam Kaplan befriended the woman and escorted her to a bank in Manhattan to have her sign documents that would enable him to steal additional money from her, as depicted below:

Adam Kaplan also participated in other fraud schemes.  Between 2023 and 2024, Adam Kaplan, working with a co-conspirator (Co-Conspirator), stole hundreds of thousands of dollars from victims, including some of the same individuals he had stolen from previously. Adam Kaplan promised those victims that he would invest their money, but instead used those funds for his own expenses. As the scheme unraveled, Adam Kaplan paid back prior victims by charging his own parents’ credit cards for thousands of dollars, and had the charges disputed to avoid repayment.  The bank ultimately lost funds.

Adam Kaplan’s Obstruction of Justice

In addition, between April 2023 and September 2024, while aware of a federal grand jury investigation into the defendants’ conduct, Adam Kaplan attempted to influence, obstruct, and impede the underlying investigation, including through attempts to threaten, injure, and pay off witnesses, and destroy evidence.

Between April 2023 and September 2023, Adam Kaplan believed that Co-Conspirator was a violent felon with connections to the mafia and on the dark web.  Adam Kaplan paid Co-Conspirator over $75,000 to tamper with, threaten, and violently injure victims of the defendant’s fraud schemes.  While using a burner phone, in one text, Adam Kaplan told Co-Conspirator that one of Adam Kaplan’s victims needed “to fear.”  In another text, Adam Kaplan told Co-Conspirator that a victim should be “peeing blood / missing teeth and another visited / scared”.  Adam Kaplan also ordered Co-Conspirator to “put [a victim’s] phone on fire . . . Seriously, please blow it up.”  Adam Kaplan also ordered Co-Conspirator to send skull-and-crossbones imagery in texts to Adam Kaplan’s victims to scare them, and Co-Conspirator sent those text messages.  Finally, Adam Kaplan also ordered Co-Conspirator to attempt to dig up “dirt” on a prosecutor from the Eastern District of New York so that Adam Kaplan could blackmail the prosecutor into not charging Adam Kaplan.

After Adam Kaplan and Daniel Kaplan were arrested, and while on release pursuant to a multimillion-dollar bond, Adam Kaplan continued to obstruct justice.  For example, Adam Kaplan ordered Co-Conspirator to bribe Department of Justice officials on several occasions.  The attempted bribes were never paid.

* * * * *

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Adam Toporovsky, Paul Scotti, and Rebecca Urquiola are in charge of the prosecution, with the assistance from Paralegal Specialist Janelle Robinson and Victim Witness Specialists Stephanie Marroquin and Maryyam Jaffery.

The Defendants:

ADAM S. KAPLAN
Age:  36
Great Neck, Long Island

DANIEL E. KAPLAN
Age:  36
Great Neck, Long Island

E.D.N.Y. Docket No. 23-CR-293 (S-1) (JMA)

Earlier today, in federal court in Brooklyn, Martial H. Amilcar, also known as “Drippy,” a member of Hyena Crips, was sentenced by United States District Judge Ann M. Donnelly to 30 years’ imprisonment for racketeering, predicated on the murder of 15-year-old Samuel Joseph and the attempted gunpoint robbery of a Brooklyn pharmacy.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Ricky J. Patel, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI) announced the sentence.

“In seeking to exact retribution and promote gang violence, Amilcar ended the life of an innocent child,” stated United States Attorney Nocella.  “A lengthy prison sentence cannot undo the loss this family and this community has suffered but it delivers a powerful message that senseless violence carries serious consequences.”

“Martial Amilcar's sentencing is a testament to HSI New York’s relentless commitment to protecting innocent New Yorkers from violent gangs that have brutalized our neighborhoods and exploited fraud schemes to fund their reign of terror,” stated HSI Special Agent in Charge Patel.  “The defendant's cold-blooded murder of 15-year-old Samuel Joseph and the violent attempted robbery that endangered families and a child highlight the deadly grip gang violence holds on our communities.  Today serves as a powerful reminder that HSI New York, together with our partners, will relentlessly pursue those who devastate our neighborhoods and shatter innocent lives with their savagery.”

Mr. Nocella expressed his appreciation to HSI’s Violent Gang Task Force, the New York City Police Department, and the Department of Labor’s Office of the Inspector General for their outstanding work in this investigation.

As detailed in court filings, the Hyena Crips set of the Crips street gang follows many of the rules and the hierarchical structure of other Crips sets, earning money through fraud and robberies, and protecting their reputation through violent crimes.

February 22, 2019 Murder of Samuel Joseph

As detailed in court documents, including the government’s sentencing memorandum, Amilcar shot and killed 15-year-old Samuel Joseph on February 22, 2019 in retaliation for an altercation earlier the same day between Amilcar’s brother, also a Hyena Crips gang member, and Joseph’s older brother, a rival gang member.  Amilcar’s brother attacked the rival gang member outside a convenience store located on the 1300-block of Flatbush Avenue in Brooklyn, and the rival gang member stabbed Amilcar’s brother in the leg.

Shortly after the altercation, Amilcar changed his clothing and contacted various alleged members of the Hyena Crips, including a co-defendant who then met Amilcar.  Amilcar and the co-defendant drove to Samuel Joseph’s apartment building and waited outside.  As Joseph walked down a staircase towards the building’s exit, Amilcar walked into the building, pulled out a gun and shot Joseph three times at close range, killing him. The shooting and events leading up to it were captured on security camera footage taken nearby.

June 9, 2020 Attempted Robbery of a Brooklyn Pharmacy

On June 9, 2020, the defendant and two other alleged members of the Hyena Crips attempted to rob a pharmacy on the 3400-block of Avenue H in Brooklyn.  Amilcar and the others entered the pharmacy and ordered the customers, employees and a small child to the back of the store.  Amilcar placed his hands around a victim’s throat, displayed a firearm and ordered her to the back of the store.  He jumped over the cashier’s counter in an attempt to rob the store but ultimately fled the pharmacy.  Video surveillance from inside the pharmacy captured the incident.

* * *

Eight defendants were charged in the superseding indictment with racketeering in connection with their membership in the Hyena Crips.  Two defendants have pleaded guilty, including Amilcar’s brother Martial C. Amilcar.  Yesterday, November 12, 2025, Martial C. Amilcar was sentenced by United States District Judge Ann M. Donnelly to 96 months’ imprisonment for racketeering in connection with conspiring to commit fraud using means of identification to defraud the Small Business Administration and conspiring to murder rival gang members.

Trial is scheduled to begin for the five remaining defendants on January 26, 2026.  The racketeering charges at trial include the previously unsolved murders of Leandre Mallinckrodt at the West Indian Day Parade on Labor Day 2012 and Roodson Polynice in September 2020.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Jessica Weigel and Joshua Dugan are in charge of the prosecution, with the assistance of paralegal specialists Elizabeth Reed and Erin Payne.

The Defendant:

MARTIAL H. AMILCAR, also known as “Drippy”
Age: 28
Brooklyn, New York

Previously Convicted Defendants:

MARTIAL C. AMILCAR, also known as “Hype”
Age:  27
Brooklyn, New York

MATTHEW HARRIS, also known as “Kappy”
Age: 26
Brooklyn, New York

Defendants Awaiting Trial:

BRADLEY AUGUSTIN, also known as “Cradley”
Age:  26
Brooklyn, New York

DAVE AUGUSTIN, also known as “Juice”
Age: 39
Brooklyn, New York

RICK JASMIN, also known as “Jab”
Age: 32
Brooklyn, New York

WISNY JOSEPH, also known as “Weezy”
Age: 34
Brooklyn, New York

RICHLER MORETTE, also known as “Breezy”
Age: 30
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-18 (S1)(AMD)

Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging two defendants, Emmanuel Clase de la Cruz and Luis Leandro Ortiz Ribera, with wire fraud conspiracy, honest services wire fraud conspiracy, conspiracy to influence sporting contests by bribery, and money laundering conspiracy, for their alleged roles in a scheme to rig bets on pitches thrown during Major League Baseball (MLB) games. Ortiz was arrested earlier today in Boston, Massachusetts, and will make an initial appearance in federal court in Boston, Massachusetts on November 10, 2025. Ortiz will be arraigned in the Eastern District of New York at a later date.  Clase is currently not in U.S. custody.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the indictment and arrest. 

“Professional athletes, like Luis Leandro Ortiz and Emmanuel Clase de la Cruz hold a position of trust—not only with their teammates and their professional leagues, but with fans who believe in fair play,” stated United States Attorney Nocella.  “As alleged, the defendants sold that trust to gamblers by fixing pitches.  In doing so, the defendants deprived the Cleveland Guardians and Major League Baseball of their honest services.  They defrauded the online betting platforms where the bets were placed.  And they betrayed America’s pastime.  Integrity, honesty and fair play are part of the DNA of professional sports. When corruption infiltrates the sport, it brings disgrace not only to the participants but damages the public trust in an institution that is vital and dear to all of us.  Today’s charges make clear that our Office will continue to vigorously prosecute those who corrupt sports through illegal means.”

“Luis Leandro Ortiz and Emmanuel Clase de la Cruz allegedly rigged their pitches in professional baseball games, so that an inner circle, and occasionally themselves, could quietly cash out their winnings,” stated FBI Assistant Director in Charge Raia.  “The defendants' alleged greed not only established an unfair advantage for select bettors, but also sullied the reputation of America's pastime. The FBI will ensure any individual who exploits their position as a professional athlete at the expense of others strikes out."

As set forth in the indictment, the defendants agreed in advance with their co-conspirators on specific pitches that they would throw in MLB games.  The co-conspirators then used that information to place hundreds of fraudulent bets on those pitches.

Beginning in or around May 2023, Clase, a relief pitcher for the Cleveland Guardians, agreed with corrupt sports bettors to rig proposition bets – or “prop” bets – on particular pitches he threw.  The bettors wagered on the speed and type of Clase’s pitches, based on information they knew in advance by coordinating with Clase, sometimes even during MLB games.  Clase often threw these rigged pitches on the first pitch of an at-bat.  To ensure certain pitches were called as balls, Clase threw many of them in the dirt, well outside the strike zone.  The bettors used the advanced, inside information that Clase provided about his future pitches to wager thousands of dollars at online sportsbooks.

Clase at times received bribes and kickbacks from the bettors in exchange for providing advanced, non-public information.  He also sometimes provided money to the bettors in advance to fund the scheme.  The indictment includes numerous examples of pitches that Clase rigged, including one in the Eastern District of New York in a game against the New York Mets.  In total, by rigging pitches, Clase caused his co-conspirator bettors to win at least $400,000 in fraudulent wagers.

In or around June 2025, Ortiz, a starting pitcher for the Cleveland Guardians, joined the criminal scheme.  Together with Clase, Ortiz agreed in advance to throw balls (instead of strikes) on pitches in two games in exchange for bribes and kickbacks.  Before an MLB game on June 15, 2025, Ortiz agreed with his co-conspirators to throw a ball on a particular pitch in exchange for bribes. The bettors agreed to pay Ortiz a $5,000 bribe for throwing the rigged pitch and Clase a $5,000 bribe for arranging the rigged pitch.

Before an MLB game on June 27, 2025, Ortiz agreed with his co-conspirators to rig a second pitch by throwing a ball in exchange for a bribe.  The bettors agreed to pay Ortiz a $7,000 bribe for throwing the rigged pitch and Clase a $7,000 bribe for arranging the rigged pitch.  Before the game on June 27, 2025, Clase withdrew $50,000 in cash and provided $15,000 to a co-conspirator, who used the money to wager on Ortiz’s rigged pitch during the game.  In total, by rigging pitches for bribes, Ortiz caused his co-conspirator bettors to win at least $60,000 in fraudulent wagers.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted, each defendant faces a maximum sentence of 20 years’ imprisonment on the wire fraud conspiracy count, 20 years’ imprisonment on the honest services wire fraud conspiracy count, five years’ imprisonment on the conspiracy to influence sporting contests by bribery count, and 20 years’ imprisonment on the money laundering conspiracy count.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States  Attorneys Sean M. Sherman and Eric Silverberg are in charge of the prosecution, with assistance from Paralegal Specialist Daniel Arakawa.

The Defendants:

EMMANUEL CLASE DE LA CRUZ
Age: 27
Dominican Republic

LUIS LEANDRO ORTIZ RIBERA
Age:  26
Dominican Republic

E.D.N.Y. Docket No. 25-CR-346 (KAM)

Earlier today, a federal jury in Central Islip convicted Michael Johnson, also known as “Wise,” on four counts of a superseding indictment charging him with sex trafficking conspiracy, sex trafficking, and interstate prostitution. Johnson and his co-conspirators operated a sex trafficking business out of the Sayville Motor Lodge, a motel located near Sunrise Highway on Long Island.  The verdict was returned after a two-week trial before United States District Judge Joanna Seybert.  When sentenced, Johnson faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life in prison.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Kevin Catalina, Commissioner, Suffolk County Police Department (SCPD), announced the verdict.

“Today’s verdict holds the defendant accountable for all of the cruelty and violence to women caused by his depraved sex trafficking,” stated United States Attorney Nocella.  “Johnson and his co-conspirators exhibited utter disregard for the human lives they destroyed by profiting off the backs of vulnerable women.  It is my hope that Johnson’s conviction brings some measure of comfort to his victims, including those who bravely testified at the trial.”

Mr. Nocella expressed his appreciation to the Suffolk County District Attorney’s Office for their work on the case.

“Michael Johnson trafficked multiple women into sexual slavery to profit off their bodies, while maintaining their subservience through social isolation, physical abuse and threats of death, and addictive drugs,” stated FBI Assistant Director in Charge Raia.  “For years, Johnson demonstrated extreme depravity as he physically and emotionally traumatized numerous women to satisfy his own greedy desires. May today’s conviction not only provide his victims a glimmer of comfort but also reflect the FBI’s commitment to protecting all vulnerable victims from sexual predators seeking to exploit them for financial gain.”

“Johnson took advantage of vulnerable women, using violence and drugs to control and exploit his victims, forcing them into sex trafficking for his own financial gain,” stated SCPD Commissioner Catalina.  “This case serves as a warning to anyone who seeks to manipulate or abuse others — justice will find you. This sentence represents not only accountability, but also a recognition of the courage and strength of the victims who came forward. I commend the dedicated efforts of our detectives and the U.S. Attorney’s Office for the Eastern District of New York.”

The Sayville Motor Lodge was a property at the center of a sex trafficking conspiracy based on Long Island.  In November 2022, an indictment was unsealed in the Eastern District of New York charging Johnson, Timothy Bullen, motel owners Narendarakuma Dadarwala and his wife Shardaben Dadarwala, their son Jigar Dadarwala, Ashokbhai Patel, and Himanshu, Inc. d/b/a Sayville Motor Lodge with sex trafficking conspiracy.  The Dadarwalas, Patel and Himanshu were also charged with managing a drug premises, and Narendarakuma Dadarwala was charged with distribution of proceeds of prostitution and narcotics businesses. In September 2025, a superseding indictment charged Johnson with three additional counts of sex trafficking. 

As proven at trial, from approximately 2014 to 2022, Johnson, a pimp, conspired with others to further his sex trafficking business out of the Sayville Motor Lodge.  Johnson forcibly sex trafficked multiple women, some of whom were addicted to drugs, and compelled them to commit commercial sex acts through a combination of force, threats of force, fraud, and coercion.  Johnson controlled the victims by confiscating all the proceeds they earned from commercial sex acts; posting advertisements for them on various websites and setting the rates they would charge; using drugs — by both giving and withholding drugs — to induce them to stay and continue performing sex acts; isolating them from others; and physically, mentally, and emotionally abusing them.  The women Johnson trafficked observed his close relationship with the Dadarwalas, and how the Dadarwalas facilitated and protected Johnson’s illegal activities.

Co-defendants Narendarakuma Dadarwala and Shardaben Dadarwala pleaded guilty to sex trafficking conspiracy in April 2025, and co-defendant Patel pleaded guilty to sex trafficking conspiracy in September 2025.  All three defendants are awaiting sentencing.  The case remains pending against co-defendants Timothy Bullen and Jigar Dadarwala. 

In connection with the November 2022 indictment and the arrests of Johnson and his co-conspirators, the United States seized the Sayville Motor Lodge. In October 2023, the United States facilitated the sale of the Sayville Motor Lodge to a company that was partially owned by a principal of a neighboring business with longstanding ties to the community.  A portion of the proceeds of the sale were earmarked for forfeiture to the United States government, which enabled the Office to seek compensation for the victims of the charged conduct through the Department of Justice’s remission procedures.

The government’s case is being handled by the Long Island Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Catherine M. Mirabile, Anthony Bagnuola, and Samantha S. Alessi are in charge of the prosecution with the assistance of Paralegal Specialists Adam Bernard and Kerry Ucci, Legal Assistant Katherine Szewczyk, and Victim Witness Specialist Stephanie Marroquin.

The Defendant:

MICHAEL JOHNSON (also known as “Wise”)
Age:  36
Selbyville, Delaware

Defendants Previously Convicted:

NARENDARAKUMA DADARWALA (also known as “Naren,” “Pa” and “Dad”)
Age:  79
Sayville, Long Island

SHARDABEN DADARWALA (also known as “Sharda,” “Ma” and “Mom”)
Age: 72
Sayville, Long Island

ASHOKBHAI PATEL (also known as “BG”)
Age: 61
Omaha, Nebraska

Defendants Pending Trial:

TIMOTHY BULLEN (also known as “Trouble,” “T” and “Tiervoni”)
Age:  38
Bay Shore, Long Island

JIGAR DADARWALA (also known as “Cobra”)
Age: 47 
Sayville, Long Island

E.D.N.Y. Docket No. 22-CR-494 (S-1) (JS)

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Abdullah At Taqi was convicted by a jury on all three counts of an indictment charging him and co-defendant Mohammad David Hashimi with conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and conspiring to launder money. Previously, on October 6, 2025, as jury selection was scheduled to begin, Hashimi pleaded guilty before United States Magistrate Judge Taryn A. Merkl to all counts of the indictment. The defendants collectively sent thousands of dollars in cryptocurrency and wire transfers to a self-proclaimed ISIS member.  When they are sentenced, each defendant faces up to 60 years’ imprisonment.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Todd Blanche, United States Deputy Attorney General; John A. Eisenberg, Assistant Attorney General of the Justice Department’s National Security Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the convictions.

“The defendants used Bitcoin, PayPal and GoFundMe to fund ISIS’s deadly mission,” stated United States Attorney Nocella.  “ISIS relies on supporters, like the defendants, to sponsor its terrorist aims, which is why our Office and our law enforcement partners are working tirelessly to disrupt that pipeline and prosecute those who provide material support to terrorist organizations and their evildoers.”

Mr. Nocella thanked the FBI’s New York Joint Terrorism Task Force for their outstanding work on the case.

“An exceptional team uncovered the defendants’ use of electronic currency to bankroll an abhorrent organization that harbors deep-seated animosity toward America,” stated Deputy Attorney General Blanche.  “Their intent was to procure weapons for terrorism and now their actions will result in incarceration. Justice has been served.”

“Today, a federal jury convicted Abdullah At Taqi for conspiring to fund ISIS, a terrorist organization that has unleashed terror and unimaginable brutality across the globe,” stated Assistant Attorney General for National Security Eisenberg.  “Taqi conspired to support the group and its atrocities by funneling cryptocurrency to ISIS fighters, hoping they would establish a stronghold in the Middle East from which the group could destabilize the entire region. This conviction reflects the Department’s commitment to holding accountable those who knowingly finance terrorism.”

“Abdullah At Taqi and Mohammed Hashimi knowingly donated thousands of dollars to an ISIS member through various cryptocurrency exchanges, wire transfers, and purported humanitarian fundraisers,” stated FBI Assistant Director in Charge Raia.  “The defendants’ actions potentially facilitated the purchase of explosives and ammunition by a designated terrorist organization. May today’s conviction emphasize the FBI’s stout determination to cease all funding of terrorists to ensure their malevolent ideologies are never brought to fruition.”

“The NYPD will stop at nothing to protect New Yorkers from the dangers of ISIS and terrorists who seek to harm our country,” stated NYPD Commissioner Tisch. “These defendants used a variety of online platforms in an attempt to covertly send thousands of dollars to ISIS members to purchase weapons.  Today’s conviction demonstrates the NYPD’s expertise and commitment to rooting out terrorism and the importance of our partnership with the U.S Attorney’s Office and the FBI to stop these dangerous individuals.”

As proven at trial, At Taqi sent 15 separate Bitcoin transactions to Osama Obeida, also known as Osama Abu Obayda (Obeida), a self-proclaimed ISIS member, over the course of nearly a year.  In conversations with an online confidential source (CHS-1), At Taqi stated that he used cryptocurrency to send money “unnoticed” through a “brother,” meaning an ISIS supporter who he spoke to on an encrypted communications platform.   At Taqi confirmed that the “brother” was “from Dawlah,” referring to ISIS.  The ”brother” in question was Obeida, whom At Taqi introduced to CHS-1.

Obeida confided to CHS-1 that he had known At Taqi for two years and that At Taqi regularly sent money to Obeida.  Obeida sent CHS-1 a photograph of an ISIS flag and weapons, annotated with CHS-1’s online screenname and the date, to prove that the photograph was recent and authentic, and that donations to Obeida were used to buy weapons for ISIS fighters.

Other messages show Obeida instructing At Taqi to delete messages and change his IP address.

Hashimi was a member of a group chat for ISIS supporters (Group Chat-1) on an encrypted platform.  In early April 2021, members of Group Chat‑1 discussed posting links that purported to be raising funds for humanitarian causes, but from which the money would actually be diverted to help the “mujahideen,” an Arabic term used by ISIS supporters to refer to ISIS fighters.  A co-conspirator posted a Bitcoin address, and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by Obeida.  In response, Hashimi told people to be careful sending links because they could be detected and arrested by law enforcement.

Through a combination of Bitcoin, PayPal, and GoFundMe, the defendants transferred thousands of dollars to Obeida, the person whom At Taqi identified as being “from Dawlah,” a reference to ISIS.  At Taqi, Hashimi, and a third co-defendant, Seema Rahman, along with co-conspirator Khalilullah Yousuf, contributed more than $24,000 to Obeida’s Bitcoin address, with Yousuf contributing $20,347.89, At Taqi contributing $2,769.35, and Rahman contributing $927.51.  The four co-conspirators also sent more than $1,000 to the PayPal account associated with Obeida, with Rahman contributing approximately $550, At Taqi contributing approximately $695, and Hashimi contributing $55.  In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes.  Hashimi contributed $364 and At Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Obeida via Western Union.

Rahman pleaded guilty in January 2025 to conspiring to provide material support to a foreign terrorist organization and is awaiting sentencing.  Yousuf was arrested and prosecuted in Canada.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ellen H. Sise, Nina C. Gupta, and Gilbert M. Rein are in charge of the prosecution, with assistance from Trial Attorney Alicia Cook of the Department of Justice’s Counterterrorism Section and Paralegal Specialist Magdalena St. Surin.

The Defendants:

MOHAMMAD DAVID HASHIMI
Age:  38
Potomac Falls, Virginia

ABDULLAH AT TAQI
Age:  26
Queens, New York

SEEMA RAHMAN
Age:  28
Edison, New Jersey

E.D.N.Y. Docket No. 22-CR-553 (ENV)

Earlier today, in federal court in Brooklyn, New York, Abdullah At Taqi, 26, of Queens, was convicted by a jury on all counts of an indictment charging him and co-defendant Mohamad David Hashimi with conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and conspiring to launder money. Previously, on Oct. 6, as jury selection was scheduled to begin, Hashimi pleaded guilty to all counts of the indictment.

“An exceptional team uncovered the defendants’ use of electronic currency to bankroll an abhorrent organization that harbors deep-seated animosity toward America,” said Deputy Attorney General Todd Blanche. “Their intent was to procure weapons for terrorism and now their actions will result in incarceration. Justice has been served.”

“Today, a federal jury convicted Abdullah At Taqi for conspiring to fund ISIS, a terrorist organization that has unleashed terror and unimaginable brutality across the globe,” said Assistant Attorney General for National Security John A. Eisenberg. “Taqi conspired to support the group and its atrocities by funneling cryptocurrency to ISIS fighters, hoping they would establish a stronghold in the Middle East from which the group could destabilize the entire region. This conviction reflects the Department’s commitment to holding accountable those who knowingly finance terrorism.”

“The defendants used Bitcoin, PayPal and GoFundMe to fund ISIS’s deadly mission,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “ISIS relies on supporters, like the defendants, to sponsor its terrorist aims, which is why our office and our law enforcement partners are working tirelessly to disrupt that pipeline and prosecute those who provide material support to terrorist organizations and their evildoers.”

As proven at trial, At Taqi sent 15 separate Bitcoin transactions to Osama Obeida, also known as Osama Abu Obayda (Obeida), a self-proclaimed ISIS member, over the course of nearly a year. In conversations with an online confidential source (CHS‑1), At Taqi stated that he used cryptocurrency to send money “unnoticed” through a “brother,” meaning an ISIS supporter, he spoke to on an encrypted communications platform. At Taqi confirmed that the “brother” was “from Dawlah,” referring to ISIS.

In later conversations, At Taqi told CHS-1 that he had gotten back in touch with the “brother” through whom he had been sending cryptocurrency and assured CHS-1 that the brother was “from Dawlah.”  The brother with whom At Taqi was communicating was Obeida. In introducing CHS-1 to Obeida, At Taqi informed CHS-1 that he had confirmed CHS-1 was trustworthy to the “brother,” Obeida, and at the same time, he vouched for the “brother” to CHS-1, indicating that he had vouched for each individual’s support for ISIS.

Obeida confided to CHS-1 that he had known At Taqi for two years and that At Taqi regularly sent money to Obeida. Obeida sent CHS-1 the below photograph of an ISIS flag and weapons with CHS-1’s online screenname and the date, to prove that the photograph was real, just taken, and that the money given to Obeida from people like the defendant was used to buy weapons for ISIS fighters.

Other messages show Obeida instructing At Taqi to delete messages and change his IP address.

Hashimi was a member of a group chat for ISIS supporters (Group Chat-1) on an encrypted platform. In early April 2021, members of Group Chat‑1 discussed posting links that purported to be raising funds for humanitarian causes, but from which the money would actually be diverted to help the “mujahideen,” an Arabic term used by ISIS supporters to refer to ISIS fighters. A co-conspirator posted a Bitcoin address, and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by Obeida. In response, Hashimi told people to be careful sending links because they could be detected and arrested by law enforcement.

Through a combination of Bitcoin, PayPal, and GoFundMe, the defendants transferred thousands of dollars to Obeida, the person At Taqi identified as being “from Dawlah,” a reference to ISIS. At Taqi, Hashimi, and a third co-defendant, Seema Rahman, along with co-conspirator Khalilullah Yousuf, contributed more than $24,000 to Obeida’s Bitcoin address, with Yousuf contributing $20,347.89, At Taqi contributing $2,769.35, and Rahman contributing $927.51. The four co-conspirators also sent more than $1,000 to the PayPal account associated with Obeida, with Rahman contributing approximately $550, At Taqi contributing approximately $480, and Hashimi contributing $55. In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes. Hashimi contributed $364 and At Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Obeida via Western Union.

At sentencing, each defendant faces a maximum penalty of 60 years in prison.

Rahman pleaded guilty in January 2025 to conspiring to provide material support to a foreign terrorist organization and is awaiting sentencing. Yousuf was arrested and prosecuted in Canada.

The FBI New York Field Office is investigating the case.

Assistant U.S. Attorneys Nina C. Gupta, Gilbert M. Rein, and Ellen H. Sise for the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Alicia Cook of the Department of Justice’s Counterterrorism Section and Paralegal Specialist Magdalena St. Surin. 

Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging six defendants — Eric Earnest, also known as “Spook,” Marves Fairley, also known as “Vez,” “Vezino,” and “Vezino Locks”, Shane Hennen, also known as “Sugar,” Damon Jones, also known as “D Jones,” and “Dee Jones,” Deniro Laster, also known as “Niro,” “Payso,” and “Peso,” and Terry Rozier, also known as “Scary Terry” and “Chum” — with wire fraud conspiracy and money laundering conspiracy for their alleged roles in a scheme to use inside information from National Basketball Association (NBA) players and coaches to profit from illegal betting activity.

The defendants, who are located across the country, will be arraigned at a future date in the Eastern District of New York.

Joseph Nocella Jr., United States Attorney for the Eastern District of New York, Kash Patel, Director, Federal Bureau of Investigation (FBI); Christopher G. Raia, Assistant Director in Charge, FBI, New York Field Office; and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the charges.

“As alleged, the defendants turned professional basketball into a criminal betting operation, using private locker room and medical information to enrich themselves and cheat legitimate sportsbooks,” stated United States Attorney Nocella. “This was a sophisticated conspiracy involving athletes, coaches, and intermediaries who exploited confidential information for profit.  Insider betting schemes erode the integrity of American sports, and this Office will continue in its strong tradition of holding accountable anyone who seeks to corrupt sports through illegal means.”

Mr. Nocella thanked the United States Attorney’s Office for the Eastern District of Pennsylvania and the FBI’s Philadelphia Field Office for their invaluable assistance in the investigation.

“Today the FBI arrested six people, including current and former NBA players, for their alleged role in illegal sports betting and money laundering conspiracy – the result of a sweeping investigation conducted by outstanding FBI professionals and partners. Using private information and positions of power to rig sports gambling outcomes is not only illegal, but destroys the integrity of the game and will never be tolerated. We will continue following the money to ensure gambling operations of all kinds stay within the law and bring to justice those who take advantage of innocent victims,” stated FBI Director Patel.

“Former and current NBA players and coaches, including Terry Rozier, Damon Jones and additional co-conspirators, allegedly informed the defendants and others of confidential information relating to upcoming NBA games and player performances, such as pre-release medical information and a player’s intention to alter their upcoming game performance, which favored certain bettors within their inner social circle,” stated FBI Assistant Director in Charge Raia.  “This alleged collusion resulted in the defendants secretly pocketing their lavish winnings and corrupting NBA games. The FBI will never turn a blind eye to any insider betting scheme within sporting industries – regardless of title or professional affiliation – to protect its integrity and afford all participants a fair chance to win big.

“Rigging a professional basketball game for personal profit is as immoral as it is illegal,” stated NYPD Commissioner Tisch.  “This investigation exposed a gambling ring built around the NBA, where players and associates allegedly used inside information and even faked injuries to fraudulently manipulate bets on games.  The fact that some players altered their performance or took themselves out of games to ensure these bets paid out is an offense to every player and fan. Thanks to the incredible work of the NYPD detectives and our partners at the FBI and the U.S. Attorney’s Office, this illegal sports betting operation has been benched for good.”

As set forth in the indictment, between December 2022 and March 2024, the defendants and their associates obtained and misused non-public information about upcoming NBA games to place fraudulent sports wagers for profit and then laundered the proceeds.

The conspirators allegedly obtained insider information from several NBA players and coaches, including Rozier and Jones, and distributed that information through a network of bettors.  These bettors placed wagers through online sportsbooks and retail betting outlets, falsely representing that their wagers complied with the betting companies’ rules—which included, as relevant here, not betting on non-public information or using straw bettors—while concealing that their wagers were based on confidential team information.  Some of the co-conspirators’ activities alleged in the indictment are described below:  March 23, 2023 – Charlotte Hornets Game

As alleged, Rozier, then an active player for the Hornets, tipped off longtime friend Laster that Rozier planned to leave the game early due to a purported injury. Rozier provided this information to Laster for the purpose of enabling Laster to place wagers based on this information.  Laster, Fairley, and Hennen, among others, used that confidential information to place and direct more than $200,000 in wagers predicting Rozier’s “under” statistics (i.e., that Rozier would underperform).  Rozier exited the game after nine minutes, and many of the bets paid off, generating tens of thousands of dollars in profits.  Laster collected the cash and drove through the night to Rozier’s house, where together they counted the profits together.

March 24, 2023 – Portland Trail Blazers Game

As alleged, Earnest received, and then passed on, insider information from a longtime friend, an NBA coach at the time, that several of the Blazers’ top players would sit out a game against the Chicago Bulls.  Before that information became public, Fairley and his associates wagered over $100,000 against the Blazers. When the lineup change was later confirmed, betting lines shifted dramatically and the group’s early bets yielded major winnings.

April 6, 2023 – Orlando Magic Game

As alleged, Fairley profited from a tip obtained through an inside connection to a then Orlando Magic player.  A co-conspirator leveraged a relationship with the Magic player to learn that several of the team’s top players would sit out a game against the Cleveland Cavaliers—information that had not yet been made public.  The co-conspirator relayed the tip to Fairley, who placed an approximately $11,000 bet that the Cavaliers would outperform the point spread.  When the lineup change was later confirmed and the Cavaliers went on to beat the Magic by 24 points, Fairley and the co-conspirator pocketed the winnings.

February 9, 2023 and January 15, 2024 – Los Angeles Lakers Games

As alleged, former NBA player and coach Jones shared and sold insider information on numerous occasions about undisclosed information relating to NBA games, such as lineup decisions and pre-release medical information, to his co-conspirators, who then placed significant wagers based on the tips.  For example, on February 9, 2023 and January 15, 2024, respectively, Jones provided insider information to co-conspirators about pre-release medical information concerning star players on the Los Angeles Lakers for the purpose of enabling the co-conspirators to place wagers based on this information.

January 26, 2024 and March 20, 2024 – Toronto Raptors Games

As alleged, Jontay Porter, who was then an NBA player with the Toronto Raptors, informed co-conspirator Long Phi Pham and others that he would prematurely exit the games he was scheduled to play on January 26, 2024 and March 20, 2024, due to purported injuries.  Porter agreed to exit the games early so that Pham and others could place bets on this non-public information.  Pham, in turn, provided this information to Hennen, who also provided the information to Fairley.  Subsequently, Hennen placed bets on Porter’s unders, or underperformance, in connection with the games through a network of straw bettors.  When Porter exited both games early, numerous of the fraudulent wagers were successful.

Porter and Pham, among others, have previously pleaded guilty in connection with their participation in the scheme related to these two games.

* * * * *

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted, each defendant faces a maximum sentence of 20 years’ imprisonment on the wire fraud conspiracy count and 20 years’ imprisonment on the money laundering conspiracy count.

The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Benjamin Weintraub, David Berman and Kaitlin Farrell are in charge of the prosecution, with assistance from Paralegal Specialists Liam McNett and Timothy Migliaro.

The Defendants:

ERIC EARNEST (also known as “Spook”)
Age: 53
Missouri

MARVES FAIRLEY (also known as “Vez,” “Vezino,” and “Vezino Locks”)
Age: 33
Mississippi

SHANE HENNEN (also known as “Sugar”)
Age: 31
Nevada

DAMON JONES (also known as “D Jones” and “Dee Jones”)
Age: 49
California

DENIRO LASTER (also known as “Niro,” “Payso,” and “Peso”)
Age: 30
Ohio

TERRY ROZIER (also known as “Scary Terry” and “Chum”)
Age: 31
Florida

E.D.N.Y. Docket No. 25-CR-323 (LDH)

Earlier today, at the federal courthouse in Brooklyn, a seven-count indictment was unsealed charging 31 defendants in criminal schemes to rig illegal poker games at various locations in New York City, East Hampton, New York, and throughout the United States.  This morning, 31 defendants were arrested in 11 states, including members and associates of the Bonanno, Gambino, and Genovese organized crime families of La Cosa Nostra (LCN); Chauncey Billups, head coach of the Portland Trail Blazers of the National Basketball Association (NBA); and Damon Jones, also known as “Dee,” a former NBA player with the Cleveland Cavaliers and Miami Heat.  The defendants will make initial court appearances this afternoon at federal courthouses throughout the United States, including the Eastern District of New York. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Kash Patel, Director, Federal Bureau of Investigation (FBI); Christopher G. Raia, Assistant Director in Charge, FBI, New York Field Office (FBI); Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); and Phoebe S. Sorial, Executive Director, New York Waterfront Commission, announced the arrests and charges.

“As alleged, members and associates of organized crime families fixed illegal poker games as part of a highly sophisticated and lucrative fraud scheme to cheat victims out of millions of dollars and conspired with others to perpetrate their frauds,” stated United States Attorney Nocella.  “Well-known former NBA players and former professional athletes, acted as ‘Face Cards’ to lure unsuspecting victims to high-stakes poker games, where they were then at the mercy of concealed technology, including rigged shuffling machines and specially designed contacts lenses and sunglasses to read the backs of playing cards, which ensured that the victims would lose big.  Today’s indictment and arrests sounds the final buzzer for these cheaters.”

Mr. Nocella also thanked Homeland Security Investigations Newark for their valuable contribution to the case.

“Today over 30 people were arrested and charged for their alleged roles in criminal schemes to rig illegal poker games to win large amounts of money. These individuals used technology and deceit to scam innocent victims out of millions of dollars – eventually funneling money to La Cosa Nostra and enriching one of the most notorious criminal networks in the world,” stated FBI Director Patel.  “This investigation spanned 9 states and FBI offices, and I want to thank the men and women of the FBI for their tremendous work and dedication rooting out those actors responsible. This FBI will never stop following the money to pursue and find those who break our laws.”

“Using the allure of high-stakes winnings and the promise to play alongside well-known professional athletes, these defendants allegedly defrauded unwitting victims out of tens of millions of dollars and established a financial pipeline to La Cosa Nostra,” stated FBI Assistant Director in Charge Raia.  “This alleged scheme wreaked havoc across the nation, exploiting the notoriety of some and the wallets of others to finance the Italian crime families. Our office maintains its aggressive pursuit of any Italian organized crime operating in our jurisdiction and will continue to stem all unlawful revenue streams fueling their illicit activity.”

“With the alleged involvement of three La Cosa Nostra crime families, an NBA head coach and Hall of Famer, as well as other current and former professional athletes, the investigative work that culminated with this morning’s operation are reminiscent of a Hollywood movie. But this was not luck, and it was not theatrics,” stated HSI New York Special Agent in Charge Patel.  “Over four years ago, HSI New York uncovered the operation and worked tirelessly with HSI Newark, the FBI, the New York Waterfront Commission, and the NYPD to expose crimes that defrauded victims of at least $7 million dollars and included violent robberies. I commend all agencies and personnel involved in today’s sweeping arrests, which should serve as a testament to our relentless, evidence-driven and unified effort.”

“For years, these individuals allegedly hosted illegal poker games where they used sophisticated technology and enlisted current and former NBA players to cheat people out of millions of dollars,” stated NYPD Commissioner Tisch.  “This complex scheme was so far reaching that it included members from four of the organized crime families, and when people refused to pay because they were cheated, these defendants did what organized crime has always done: they used threats, intimidation, and violence. I want to thank the incredible team at the NYPD that worked diligently on this case, and our partners in the FBI, HSI, and the U.S Attorney’s Office for their collaboration in shutting down this illegal gambling ring.”

“Today’s indictment represents a concerted effort to combat traditional organized crime, which continues to plague our communities,” stated Waterfront Commission Executive Director Sorial.  “The arrests of members from three La Cosa Nostra crime families is a stark reminder that they are not averse to working together to advance their sophisticated schemes when it serves their interest.  Disruption of their illegal gambling proceeds weakens their grip on our region, particularly in the Port of New York where they have long held influence. The New York Waterfront Commission, in close coordination with its federal, state and local law enforcement partners, remains unwavering in its commitment to dismantle these criminal enterprises by severing the illicit revenue streams that sustain them.”

As alleged in the indictment, beginning as early as 2019, the defendants engaged in a series of schemes to use wireless cheating technology to rig illegal poker games (most commonly, Texas Hold’em) in the Eastern District of New York and across the United States.  Co-conspirators in the scheme included game organizers, who arranged for unwitting victims to play in underground illegal poker games that were secretly rigged; suppliers of the rigged cheating technology; former professional athletes, who were enlisted as “Face Cards” in the scheme to entice the victims’ participation in the games; cheating teams who worked together using the cheating technology to defraud the victims; money launderers; and members and associates of the Bonanno, Gambino, and Genovese organized crime families of LCN, who backed games in the New York area and took a percentage of the crime proceeds from those games.  LCN members and associates had a foothold in the rigged poker scheme because they had preexisting control over “straight” (i.e., non-rigged) illegal poker games in New York City, where some of the rigged poker games also occurred: one that was hosted principally at Lexington Avenue in Manhattan, that was on record with the Bonanno family (the “Lexington Avenue Game”); and a second that was hosted principally at Washington Place in Manhattan, that was on record with the Gambino family (the “Washington Place Game”).  As part of the schemes, some of the charged defendants and other co-conspirators also committed acts of violence, including the robbery and extortions charged in the indictment.

In a typical legitimate poker game, a dealer uses a shuffling machine to shuffle the cards randomly before dealing them to all the players in a particular order.  As set forth in the indictment, the rigged games used altered shuffling machines that contained hidden technology allowing the machines to read all the cards in the deck.  Because the cards were always dealt in a particular order to the players at the table, the machines could determine which player would have the winning hand. This information was transmitted to an off-site member of the conspiracy, who then transmitted that information via cellphone back to a member of the conspiracy who was playing at the table, referred to as the “Quarterback” or “Driver.”  The Quarterback then secretly signaled this information (usually by prearranged signals like touching certain chips or other items on the table) to other co-conspirators playing at the table, who were also participants in the scheme.  Collectively, the Quarterback and other players in on the scheme (i.e., the cheating team) used this information to win poker games against unwitting victims, who sometimes lost tens or hundreds of thousands of dollars at a time. The defendants used other cheating technology as well, such as a chip tray analyzer (essentially, a poker chip tray that also secretly read all cards using hidden cameras), an x-ray table that could read cards face down on the table, and special contact lenses or eyeglasses that could read pre-marked cards.

The defendants and their co-conspirators bet accordingly to ensure that the unsuspecting victims lost money.  Through the rigged poker schemes, the defendants caused losses to victims of at least $7 million.

As alleged, members of the conspiracy fulfilled different roles to ensure the schemes’ success.  The defendants Tony Goodson, Shane Hennen, Curtis Meeks, and Robert Stroud supplied the cheating technology.  The defendants Ammar Awawdeh, Saul Becher, John Gallo, Zhen Hu, Stroud, and Seth Trustman organized the rigged games.  Members of the cheating teams included the defendants Nelson Alvarez, Louis Apicella, Chauncey Billups, Eric Earnest, Marco Garzon, Jamie Gilet, Tony Goodson, Kenny Han, Hennen, Horatio Hu, Damon Jones, John Mazzola, Nicholas Minucci, Michael Renzulli, Angelo Ruggiero, Jr., Stroud, Trustman, and Sophia Wei.  In addition, the defendant Anthony Shnayderman, among others, laundered the proceeds of the schemes.  For example, game organizers sometimes directed victims to send money via bank wires to shell companies controlled by Shnayderman, who then transferred money (either in cash or cryptocurrency), less a money laundering fee, back to the game organizers.

As alleged in the indictment, the Bonanno, Genovese, and Gambino organized crime families of LCN backed the Lexington Avenue Game and the Washington Place Game and received a portion of the criminal proceeds from both the “straight” illegal poker games and rigged games run by the organizers of those games.  In particular, Becher, Zhen Hu, and Trustman—the organizers of the Lexington Avenue Game—were required to make payments to defendants Ernest Aiello, Julius Ziliani, and Thomas Gelardo of the Bonanno family for the games (rigged or “straight”) that they operated.  Similarly, Awawdeh and John Gallo—organizers of the Washington Place Game—were required to make payments to the defendants Lee Fama, Joseph Lanni, and Ruggiero of the Gambino family and to the defendant Matthew Daddino of the Genovese crime for the games (rigged or “straight”) that they operated.  For a period in 2023, the two games merged and were jointly operated. During that period, all three organized crime families received proceeds from the rigged and illegal poker games.   

As charged in the indictment, members of the conspiracy committed violent acts, including assault, extortions, and robbery, in furtherance of the schemes to ensure the repayment of debts and continued success of the operation.  Between November 2022 and February 2023, Gelardo, Zhen Hu and Ziliani extorted John Doe #5 to secure the repayment of a gambling debt.  Among other things, Zhen Hu and Gelardo both punched the victim to get him to pay back the debt.  In September 2023 and October 2023, Becher, Zhen Hu and Trustman extorted another victim by threatening him to pay back a debt from illegal poker games.  On September 7, 2023, Awawdeh, Hoti, Mazzola, Minucci, and Stroud arranged and committed a gunpoint robbery of a co-conspirator to steal a rigged shuffler machine that the defendants wanted to use.   

Bettors who were defrauded in the rigged games may be victims under the Mandatory Victims Restitution Act.  If you believe you were a victim of the scheme, please contact 1-800-CALLFBI.

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 Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Michael W. Gibaldi, Irisa Chen, and Sean M. Sherman are in charge of the prosecution with the assistance of Paralegal Specialists John Schneider and Marlane Bosler.  Assistant United States Attorney Michael Castiglione of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants:

ERNEST AIELLO 
Age: 46
Wantagh, New York

NELSON ALVAREZ (also known as “Spanish g”)
Age: 53
Uniondale, New York

LOUIS APICELLA (also known as “Lou Ap”)
Age: 50
New Rochelle, New York

AMMAR AWAWDEH (also known as “Flapper Poker” and “Flappy”)
Age: 34
Brooklyn, New York

SAUL BECHER
Age: 45
Bronx, New York

CHAUNCEY BILLUPS
Age: 49
Lake Oswego, Oregon

MATTHEW DADDINO (also known as “Matty” and “The Wrestler”)
Age: 43
Franklin Square, New York

ERIC EARNEST (also known as “Spook”)
Age: 53
St. Louis, Missouri

LEE FAMA
Age: 57
Brooklyn, New York

JOHN GALLO
Age: 53
Brooklyn, New York

MARCO GARZON
Age: 39
Elizabeth, New Jersey

THOMAS GELARDO (also known as “Juice”)
Age: 42
Scarsdale, New York

JAMIE GILET
Age: 40
Jericho, New York

TONY GOODSON (also known as “Black Tony”)
Age: 52
Forsyth, Georgia

KENNY HAN
Age: 40
Queens, New York

SHANE HENNEN (also known as “Sugar”)
Age: 40
Las Vegas, Nevada

OSMAN HOTI (also known as “Albanian Bruce”) and “Big Bruce”)
Age: 44
Ridgefield Park, New Jersey

HORATIO HU (also known as “H”)
Age: 37
Queens, New York

ZHEN HU (also known as “Jonathan Chan,” “Jonathan Hu,” “Scruli,” and “Stanley”)
Age: 37
Brooklyn, New York

DAMON JONES (also known as “Dee Jones”)
Age: 49
Houston, Texas

JOSEPH LANNI
Age: 54
Staten Island, New York

JOHN MAZZOLA (also known as “John South”)
Age: 43
Gray, Georgia

CURTIS MEEKS (also known as “Curt”)
Age: 41
Elgin, Texas

NICHOLAS MINUCCI
Age: 39
East Northport, New York

MICHAEL RENZULLI
Age: 42
Islip, New York

ANGELO RUGGIERO, JR.
Age: 53
Howard Beach, New York

ANTHONY SHNAYDERMAN (also known as “Doc”)
Age: 39
Brooklyn, New York

ROBERT STROUD (also known as “Black Rob”)
Age: 67
Louisville, Kentucky

SETH TRUSTMAN
Age: 43
Queens, New York

SOPHIA WEI (also known as “Pookie”)
Age: 40
Queens, New York

JULIUS ZILIANI (also known as “Jay”
Age: 54
Wayne, New Jersey

E.D.N.Y. Docket Nos. 25-CR-314 (JMA) 

Earlier today, in federal court in Brooklyn, Elijah Morales was sentenced by United States District Judge Brian M. Cogan to 158 months’ imprisonment for distributing fentanyl that caused the death of an individual referred to in the indictment as “John Doe.”

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Far too many people have died tragically from the scourge of fentanyl and other illicit drugs,” stated United States Attorney Nocella.  “While nothing can bring back this or the other countless victims, hopefully today’s outcome can send a strong message to would-be fentanyl dealers that can save future lives.”

“The defendant's actions were nothing short of reprehensible — peddling a deadly poison, watching his victim succumb to its effects, and then callously delaying lifesaving aid while attempting to cover up his crime, stated HSI New York Special Agent in Charge Patel. “This case exemplifies the devastating consequences of fentanyl distribution and the calculated cruelty of those who profit from it. Together with our partners from the NYPD and the U.S. Attorney’s Office for the Eastern District of New York, we will not rest until we dismantle these criminal networks and bring justice to the families devastated by their greed and cruelty.”

“Elijah Morales allegedly distributed dangerous fentanyl, prioritized drug profits over people’s safety, and flooded our city with his poison,” stated NYPD Commissioner Tisch. “With a chance to save the life of someone overdosing, Morales chose to save himself, delaying a life-or-death call to 911 to cover up his crimes. I would like to thank our NYPD investigators and partners at HSI and the U.S. Attorney’s Office for their work in removing this individual off our streets.”

As set forth in court filings, on June 21, 2023, at approximately 4:00 a.m., an anonymous caller to 911 (later determined to be Morales) reported that he had found an unknown individual—John Doe—unconscious in the stairwell of an apartment building in Brooklyn where the defendant’s grandmother resided.  Morales claimed on the call that he had gone out to smoke a cigarette when he observed John Doe next to the staircase in the hallway of the dwelling.  Shortly thereafter, medics arrived and attempted to revive John Doe but were unsuccessful.  John Doe’s cause of death was acute fentanyl intoxication.

The investigation revealed that Morales lied to the 911 operator. In reality, he had distributed narcotics to John Doe at or around 2:20 a.m.—approximately two hours prior to his call to 911 and approximately three hours before John Doe was pronounced dead. Among other evidence, surveillance footage from the second-floor landing of the dwelling showed Morales and John Doe engaging in a drug transaction at 2:20 a.m.

The investigation further showed that while John Doe laid unconscious in the stairwell of the dwelling, Morales delayed calling 911 by at least approximately one hour while he scrubbed the scene of evidence of his drug sale to John Doe.  The evidence showed that at around 2:50 a.m., John Doe’s mother began repeatedly calling John Doe after Doe failed to respond to text messages from his mother.  Video surveillance footage from the dwelling featured the sound of John Doe’s cellphone ringing as John Doe laid unconscious at the bottom of the staircase.  From around 3:15 a.m. through 4:06 a.m., surveillance footage from the second floor of the dwelling depicted the Morales entering and exiting his apartment and picking up various items from the floor of the hallway while John Doe’s cellphone sporadically played in the background.  At around 3:54 a.m., the surveillance footage depicted Morales as he exited his apartment, picked up a bag of white powder from the stairwell floor—consistent in appearance with the bag in which he had delivered the fatal drugs to John Doe—held up the bag to observe the remains of its contents, and then re-entered his apartment.

At approximately 4:07 a.m., Morales contacted 911 and falsely claimed that John Doe was an unknown individual asleep in the hallway of his grandmother’s building. Surveillance footage captured from the first-floor landing during the 911 call showed the defendant speaking with a 911 operator while John Doe laid unconscious at the bottom of the stairwell.

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

The Defendant:

ELIJAH MORALES
Age:  24
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-526 (BMC)

BROOKLYN, NY - An indictment was unsealed today in federal court in Brooklyn charging Chen Zhi, also known as “Vincent,” the founder and chairman of Prince Holding Group (Prince Group), a multinational business conglomerate based in Cambodia, with wire fraud conspiracy and money laundering conspiracy for directing Prince Group’s operation of forced-labor scam compounds across Cambodia.  Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as “pig butchering” scams, that stole billions of dollars from victims in the United States and around the world.  The defendant is at large.

The United States Attorney’s Office for the Eastern District of New York and the Department’s National Security Division also filed today a civil forfeiture complaint against approximately 127,271 bitcoin, currently worth approximately $15 billion, that are proceeds and instrumentalities of the defendant’s fraud and money laundering schemes, and were previously stored in unhosted cryptocurrency wallets whose private keys the defendant had in his possession.  Those funds (the Defendant Cryptocurrency) are presently in the custody of the U.S. government.  The complaint is the largest forfeiture action in the history of the Department of Justice.

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg,  Assistant Attorney General for the Justice Department’s National Security Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Frank A Tarentino III, Special Agent in Charge, Drug Enforcement Administration, New York Division (DEA New York), and William Ferrari , Deputy Assistant Director, U.S. Department of State’s Diplomatic Security Service (DSS), Office of Investigations, announced the indictment and forfeiture action.

“Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” stated Attorney General Bondi.  "By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit.  We are grateful for the hard work of Director Patel and the men and women of the FBI.”

“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” stated United States Attorney Nocella.  “Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will.  This historic indictment and forfeiture complaint send a strong message to fraudsters everywhere that we will pursue you no matter where you are, no matter who you are, and no matter your insidious methods, and we will never stop fighting for victims.”

“As alleged, the defendant was the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella, a criminal enterprise built on human suffering.  Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” stated Assistant Attorney General Eisenberg.  “This indictment and historic forfeiture, the largest in Department history, reflect our commitment to using every tool at our disposal to ensure such crimes do not pay.”

“Chen Zhi, the chairman of Prince Group, a transnational criminal organization, allegedly orchestrated an international cryptocurrency investment fraud scheme and labor trafficking network to steal billions of dollars from thousands of victims,” stated FBI Assistant Director in Charge Raia.  “Zhi allegedly victimized countless individuals: forcing thousands to serve as trapped accomplices and targeting countless others for their wallets.  By leveraging his co-conspirators and political influence, this alleged operation plagued all corners of the globe and evaded law enforcement detection for years.  Today’s indictment and historical forfeiture action demonstrates the FBI’s relentless determination to eradicate all unlawful revenue streams fueling criminal activity no matter where they are in the world. 

“Once again, we see the tremendous success of DEA’s Trident Initiative, an initiative built with our federal law enforcement partners to target and dismantle sophisticated criminal networks and their leadership, operating across the globe,” stated DEA New York Special Agent in Charge Tarentino.  “This investigation exposes a staggering level of fraud, corruption, and criminal greed that allowed billions of dollars in illicit funds to flow through global financial systems, leaving behind a trail of victims.  It also highlights how transnational criminal organizations continue to evolve, leveraging cryptocurrency and other digital assets to move their money and mask their crimes.  Money laundering isn’t a victimless crime, it fuels drug trade, funds violence, and undermines the rule of law.  The DEA remains committed to tracing every dollar, following every transaction, and bringing those who abuse our financial networks to justice.”

“This case is a powerful example of the DSS global footprint and our ability to collaborate seamlessly with both U.S. and international law enforcement on complex, multi-jurisdictional fraud schemes,” stated DSS Deputy Assistant Director Ferrari.  “Every day, DSS and our partners around the world are conducting investigations just like this, disrupting transnational criminal networks and protecting U.S. interests abroad.”

As alleged in the indictment and forfeiture complaint, since approximately 2015, the defendant has been the founder and chairman of Prince Group, a Cambodian corporate conglomerate that operates dozens of business entities in more than 30 countries.  Prince Group is ostensibly focused on real estate development, financial services, and consumer services.  However, in secret, the defendant and his top executives grew Prince Group into one of Asia’s largest transnational criminal organizations.  Under the defendant’s direction, Prince Group made enormous profits operating scam compounds across Cambodia that perpetrated fraudulent cryptocurrency investment schemes.

To perpetrate these schemes, malicious actors contacted unwitting victims through messaging or social media applications and convinced them to transfer cryptocurrency to specified accounts based on false promises that the funds would be invested and generate profits.  In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators.  The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.

Prince Group’s schemes targeted victims around the world, including in the United States, with assistance from local networks working on Prince Group’s behalf.  One such network operated in Brooklyn, New York and facilitated the fraudulent transfer and laundering of millions of dollars on behalf of Prince Group from over 250 victims in New York and across the country.

Prince Group carried out these schemes by trafficking hundreds of workers and forcing them to work in compounds in Cambodia and execute the scams, often under the threat of violence.  The compounds housed vast dormitories surrounded by high walls and barbed wire, and functioned as violent forced labor camps.  The defendant was directly involved in managing the scam compounds and maintained records associated with each one, including ledgers tracking profits and which fraudulent schemes were run out of which rooms.  The defendant also maintained documents describing and depicting “phone farms” at the compounds: automated call centers that used thousands of phones and millions of mobile telephone numbers to facilitate the various fraudulent schemes.  The defendant was directly involved in using violence against the individuals within the forced labor camps and possessed images of Prince Group’s violent methods, including photographs depicting beatings and other methods of torture.  The defendant communicated directly with his subordinates about beating individuals who “caused trouble,” in one case specifying that the victims should not be “beaten to death.”

In furtherance of these schemes, the defendant and a close network of Prince Group’s top executives used their political influence in multiple foreign countries to protect their criminal enterprise and paid bribes to public officials to avoid disruption by law enforcement.  They subsequently laundered the proceeds of the fraudulent schemes through professional money laundering operations and through Prince Group’s own network of ostensibly legal business enterprises, including its online gambling and cryptocurrency mining operations.

At the defendant’s direction, Prince Group associates used sophisticated cryptocurrency laundering techniques to obscure the source of fraudulent Prince Group profits, including “spraying” and “funneling” techniques in which large volumes of cryptocurrency were repeatedly disaggregated across scores of virtual currency addresses and then re-consolidated into fewer addresses to obscure the source of the funds.  Some of these criminal proceeds were ultimately held in wallets at cryptocurrency exchanges or exchanged for traditional currency and stored in traditional bank accounts.  Other criminal proceeds included the Defendant Cryptocurrency, which was stored in unhosted cryptocurrency wallets whose private keys the defendant personally held.  The defendant maintained diagrams recording the process by which some of the Defendant Cryptocurrency was laundered.  The defendant boasted to others of Prince Group’s mining businesses that “the profit is considerable because there is no cost”—that is, unlike legitimate enterprises, the operating capital for the cryptocurrency mining businesses comprised money stolen from Prince Group’s many victims.

The defendant and his co-conspirators subsequently used some of the criminal proceeds for luxury travel and entertainment and to make extravagant purchases such as watches, yachts, private jets, vacation homes, high-end collectables, and rare artwork, including a Picasso painting purchased through an auction house in New York City.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted, the defendant faces a maximum sentence of 40 years’ imprisonment.

The investigation was conducted by the FBI New York Joint Asian Criminal Enterprise Task Force with assistance from the FBI’s Virtual Asset Unit.

In parallel with today’s actions by the Department of Justice, the Department of the Treasury today designated Prince Group as a transnational criminal organization and announced sanctions against the defendant and multiple associated individuals and entities, for their roles in illicit activity.  The United Kingdom’s Foreign, Commonwealth and Development Office also announced sanctions.     

If you have information about Chen Zhi or Prince Group, please contact the FBI at PrinceGroupTips@fbi.gov.  According to the FBI Internet Crime Complaint Center’s 2024 Internet Crime Report, cryptocurrency investment fraud caused more than $5.8 billion in reported losses in 2024 alone.  You can learn more about cryptocurrency investment fraud here:  https://www.fbi.gov/how-we-can-help-you/victim-services/national-crimes-and-victim-resources/cryptocurrency-investment-fraud.  Members of the public who believe they are victims of cryptocurrency investment fraud and other cyber-enabled crime should contact the FBI Internet Crime Complaint Center at https://www.ic3.gov. 

The government’s case is being handled by the Eastern District of New York’s National Security and Cybercrime, Asset Recovery, Business and Securities Fraud, and Public Integrity Sections.  Assistant United States Attorneys Alexander F. Mindlin, Andrew D. Reich, Benjamin Weintraub and Rebecca M. Schuman are in charge of the prosecution, in partnership with Deputy Chief Christopher B. Brown of the National Security Division’s NatSec Cyber Section, and Assistant United States Attorney Tanisha Payne of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.

The Department of Justice’s Office of International Affairs provided valuable assistance during the investigation.  The Office also thanks the United Kingdom’s National Crime Agency, the Isle of Man Constabulary’s Proactive International Money-Laundering Investigations Team and the United Kingdom’s Foreign, Commonwealth & Development Office, which also announced sanctions today against entities related to Prince Group.

The Defendant:

CHEN ZHI (also known as “Vincent”) 
Age: 37
United Kingdom and Cambodia

E.D.N.Y. Docket No. 25-CR-312

E.D.N.Y. Docket No. 25-CV-5745

Note: This press release has been updated to accurately reflect the defendant's nationality.

An indictment was unsealed today in federal court in Brooklyn, New York, charging Cambodian national Chen Zhi, also known as Vincent, 37, the founder and chairman of Prince Holding Group (Prince Group), a multinational business conglomerate based in Cambodia, with wire fraud conspiracy and money laundering conspiracy for directing Prince Group’s operation of forced-labor scam compounds across Cambodia. Individuals held against their will in the compounds engaged in cryptocurrency investment fraud schemes, known as “pig butchering” scams, that stole billions of dollars from victims in the United States and around the world. The defendant is at large.

The U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s National Security Division also filed today a civil forfeiture complaint against approximately 127,271 Bitcoin, currently worth approximately $15 billion, that are proceeds and instrumentalities of the defendant’s fraud and money laundering schemes, and were previously stored in unhosted cryptocurrency wallets whose private keys the defendant had in his possession. Those funds (the Defendant Cryptocurrency) are presently in the custody of the U.S. government. The complaint is the largest forfeiture action in the history of the Department of Justice.

“Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” said Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche. “By dismantling a criminal empire built on forced labor and deception, we are sending a clear message that the United States will use every tool at its disposal to defend victims, recover stolen assets, and bring to justice those who exploit the vulnerable for profit. We are grateful for the hard work of Director Patel and the men and women of the FBI.”

“Today the FBI and partners executed one of the largest financial fraud takedowns in history,” said FBI Director Kash Patel. “This is an individual who allegedly operated a vast criminal network across multiple continents involving forced labor, money laundering, investment schemes, and stolen assets — targeting millions of innocent victims in the process. Justice will be done and I’m proud of the men and women of the FBI who executed the mission faithfully.”

“As alleged, the defendant was the mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella, a criminal enterprise built on human suffering. Trafficked workers were confined in prison-like compounds and forced to carry out online scams on an industrial scale, preying on thousands worldwide, including many here in the United States,” said Assistant Attorney General for National Security John A. Eisenberg. “This indictment and historic forfeiture, the largest in Department history, reflect our commitment to using every tool at our disposal to ensure such crimes do not pay.”

“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Prince Group’s investment scams have caused billions of dollars in losses and untold misery to victims around the world, including here in New York, on the backs of individuals who have been trafficked and forced to work against their will. This historic indictment and forfeiture complaint send a strong message to fraudsters everywhere that we will pursue you no matter where you are, no matter who you are, and no matter your insidious methods, and we will never stop fighting for victims.”

“The outcome of this investigation underscores the strength of the DEA’s Trident Initiative and the value of coordinated action with our federal partners,” said Administrator of the Drug Enforcement Administration (DEA) Terrance Cole. “DEA is committed to exposing and dismantling complex criminal schemes that exploit global financial systems and emerging technologies to conceal illicit proceeds. These networks operate at the intersection of drug trafficking, corruption, and financial crime, threatening the stability of institutions and communities, alike. DEA remains steadfast in its efforts to protect the integrity of our financial systems, deny criminal organizations the profits that sustain them, and uphold the rule of law across borders.”

As alleged in the indictment and forfeiture complaint, since approximately 2015, the defendant has been the founder and chairman of Prince Group, a Cambodian corporate conglomerate that operates dozens of business entities in more than 30 countries. Prince Group is ostensibly focused on real estate development, financial services, and consumer services. However, in secret, the defendant and his top executives grew Prince Group into one of Asia’s largest transnational criminal organizations. Under the defendant’s direction, Prince Group made enormous profits operating scam compounds across Cambodia that perpetrated fraudulent cryptocurrency investment schemes.

To perpetrate these schemes, malicious actors contacted unwitting victims through messaging or social media applications and convinced them to transfer cryptocurrency to specified accounts based on false promises that the funds would be invested and generate profits. In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators. The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds.

Prince Group’s schemes targeted victims around the world, including in the United States, with assistance from local networks working on Prince Group’s behalf. One such network operated in Brooklyn, New York, and facilitated the fraudulent transfer and laundering of millions of dollars on behalf of Prince Group from over 250 victims in New York and across the country.

Prince Group carried out these schemes by trafficking hundreds of workers and forcing them to work in compounds in Cambodia and execute the scams, often under the threat of violence. The compounds housed vast dormitories surrounded by high walls and barbed wire, and functioned as violent forced labor camps. The defendant was directly involved in managing the scam compounds and maintained records associated with each one, including ledgers tracking profits and which fraudulent schemes were run out of which rooms. The defendant also maintained documents describing and depicting “phone farms” at the compounds: automated call centers that used thousands of phones and millions of mobile telephone numbers to facilitate the various fraudulent schemes. The defendant was directly involved in using violence against the individuals within the forced labor camps and possessed images of Prince Group’s violent methods, including photographs depicting beatings and other methods of torture. The defendant communicated directly with his subordinates about beating individuals who “caused trouble,” in one case specifying that the victims should not be “beaten to death.”

In furtherance of these schemes, the defendant and a close network of Prince Group’s top executives used their political influence in multiple foreign countries to protect their criminal enterprise and paid bribes to public officials to avoid disruption by law enforcement. They subsequently laundered the proceeds of the fraudulent schemes through professional money laundering operations and through Prince Group’s own network of ostensibly legal business enterprises, including its online gambling and cryptocurrency mining operations.

At the defendant’s direction, Prince Group associates used sophisticated cryptocurrency laundering techniques to obscure the source of fraudulent Prince Group profits, including “spraying” and “funneling” techniques in which large volumes of cryptocurrency were repeatedly disaggregated across scores of virtual currency addresses and then re-consolidated into fewer addresses to obscure the source of the funds. Some of these criminal proceeds were ultimately held in wallets at cryptocurrency exchanges or exchanged for traditional currency and stored in traditional bank accounts. Other criminal proceeds included the Defendant Cryptocurrency, which was stored in unhosted cryptocurrency wallets whose private keys the defendant personally held. The defendant maintained diagrams recording the process by which some of the Defendant Cryptocurrency was laundered. The defendant boasted to others of Prince Group’s mining businesses that “the profit is considerable because there is no cost” — that is, unlike legitimate enterprises, the operating capital for the cryptocurrency mining businesses comprised money stolen from Prince Group’s many victims.

The defendant and his co-conspirators subsequently used some of the criminal proceeds for luxury travel and entertainment and to make extravagant purchases such as watches, yachts, private jets, vacation homes, high-end collectables, and rare artwork, including a Picasso painting purchased through an auction house in New York City.

If convicted, the defendant faces a maximum penalty of 40 years in prison.

In parallel with today’s actions by the Department of Justice, the Department of the Treasury today designated Prince Group as a transnational criminal organization and announced sanctions against the defendant and multiple associated individuals and entities, for their roles in illicit activity. The United Kingdom’s Foreign, Commonwealth and Development Office also announced sanctions.

The DEA New York Division is investigating the case, along with the FBI New York Joint Asian Criminal Enterprise Task Force and the FBI’s Virtual Asset Unit.

If you have information about Chen Zhi or Prince Group, please contact the FBI at PrinceGroupTips@fbi.gov. According to the FBI Internet Crime Complaint Center’s 2024 Internet Crime Report, cryptocurrency investment fraud caused more than $5.8 billion in reported losses in 2024 alone. You can learn more about cryptocurrency investment fraud here. Members of the public who believe they are victims of cryptocurrency investment fraud and other cyber-enabled crime should contact the FBI Internet Crime Complaint Center at www.ic3.gov.

Assistant U.S. Attorneys Alexander F. Mindlin, Andrew D. Reich, Benjamin Weintraub and Rebecca M. Schuman for the Eastern District of New York are prosecuting the case in partnership with Deputy Chief Christopher B. Brown of the National Security Division’s NatSec Cyber Section, and Assistant U.S. Attorney Tanisha Payne for the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.

The Department of Justice’s Office of International Affairs provided valuable assistance duringthe investigation. The Government also thanks the United Kingdom’s National Crime Agency, the Isle of Man Constabulary’s Proactive International Money-Laundering Investigations Team and the United Kingdom’s Foreign, Commonwealth & Development Office, which also announced sanctions today against entities related to Prince Group.

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

A complaint was unsealed today in federal court in Brooklyn charging Elijah Roy, also known as “Eli Spice” and “Swervo,” with crimes related to the August 17, 2025 shooting at Taste of the City Lounge in Brooklyn, New York, in which three individuals were murdered and an additional 10 were shot and injured.  Specifically, Roy is charged with assault in-aid-of racketeering and with being a felon in possession of ammunition.  The defendant is an associate of the 5-9 Brims, a subset of the Bloods street gang, operating in and around Brooklyn.

Roy was arrested on September 18, 2025 in North Carolina.  He is scheduled to be arraigned on the complaint this afternoon before United States Magistrate Judge Peggy Kuo.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the charges and arrests.

“As alleged, the defendant and other associates of a violent gang unleashed gunfire in the middle of a crowded bar, creating a killing zone that, in a matter of seconds, left three people dead and 10 victims wounded,” stated United States Attorney Nocella.  “Such a flagrant disregard for human life will not go unpunished and this prosecution underscores the resolve of our Office and law enforcement to eradicate gangs in the district.  It is my hope that this arrest will give some comfort to the victims’ loved ones and the traumatized survivors of this heinous crime.”

Mr. Nocella expressed his appreciation to FBI/NYPD Metro Safe Streets Task Force, Brooklyn South Homicide Squad, the 71st Precinct Detective Squad, Brooklyn South Video Collection Team, and the first responders to this mass casualty shooting incident.

“Elijah Roy, a Bloods associate, allegedly participated in a mass shooting in a crowded local restaurant, killing three and significantly injuring another ten in about six seconds,” stated FBI Assistant Director in Charge Raia.  “This alleged act of egregious violence harmed bystanders caught in the crosshairs of a gang’s territorial dispute. These Summer Heat arrests reflect the FBI’s unwavering determination to dismantle all criminal enterprises using our city for their turf war.”

“The charges brought against Elijah Roy marks another step forward in our mission to dismantle the violent street gangs that terrorize our communities with illegal firearms,” stated NYPD Commissioner Tisch.  “Alleged associates of the 5-9 Brims Gang turned a crowded club into a scene of carnage when they opened fire on their rivals, killing three people and wounding ten more. I would like to thank our NYPD investigators, including the Gun Violence Suppression Division who have carried out the most gang takedowns in the unit’s history this year, and our partners at the U.S. Attorney’s Office and the FBI for their hard work.”

As set forth in the criminal complaint, in the early morning hours of August 17, 2025, the defendant was present at Taste of the City Lounge, a restaurant and hookah bar in Brooklyn, New York.  Roy was with other associates of the 5-9 Brims, including Marvin St. Louis, who died as a result of the shooting.  Also present at the Lounge were individuals associated with the Folk Nation Gangster Disciples (or “GD”), a rival of the 5-9 Brims that operates in and around Brooklyn, New York, including Jamel Childs, another victim of the shooting.  At approximately 3 a.m., associates of the 5-9 Brims began shooting at associates of GD, who returned fire.  Roy then proceeded to shoot back towards where Childs and the group of GDs were standing.  Within approximately six seconds, over 40 shots were discharged by the defendant and others into the crowded bar.  As a result of the shooting three people died and ten were shot and injured.

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 Organized Crime and Gangs Section.  Assistant United States  Attorneys Dana Rehnquist and Daniel J. Marcus are in charge of the prosecution with the assistance of Paralegal Specialists Samantha Ward, Paul Padilla and Elizabeth Reed.

The Defendant:

ELIJAH ROY (also known as “Eli Spice” and “Swervo”)
Age:  25
Brooklyn, New York

E.D.N.Y. Docket No. 25-MJ-262

A 10-count indictment was unsealed today in federal court in Brooklyn charging retired New York-based financier, Howard Rubin, also known as “Howie” and “H,” along with his personal assistant, Jennifer Powers, with sex trafficking and transporting women in interstate commerce for sex acts with Rubin.  Rubin was also charged with bank fraud in connection with misrepresentations made to a bank in the course of financing Powers’s mortgage for the Texas home of Powers and her husband. 

Rubin was arrested this morning in Fairfield, Connecticut and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Peggy Kuo.  Powers was arrested in Texas this morning and is scheduled to make her initial appearance on Monday in federal court in the Northern District of Texas.  Powers will be arraigned in the Eastern District of New York at a later date.

Joseph Nocella Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, New York Field Office (FBI), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York) announced the arrests and indictment.

“As alleged, the defendants used Rubin’s wealth to mislead and recruit women to engage in commercial sex acts, where Rubin then tortured women beyond their consent, causing lasting physical and/or psychological pain, and in some cases physical injuries,” stated United States Attorney Nocella.  “Today’s arrests show that no one who engages in sex trafficking, in this case in luxury hotels and a penthouse apartment that featured a so-called sex ‘dungeon,’ is above the law, and that they will be brought to justice.  Human beings are not chattel to be exploited for sex and sadistically abused, and anyone who thinks otherwise can expect to find themselves in handcuffs and facing federal prosecution like these defendants.”

“For many years, Howard Rubin and Jennifer Powers allegedly spent at least one million dollars to finance the commercial sexual torture of multiple women via a national trafficking network.  The defendants allegedly exploited Rubin’s status to ensnare their prospective victims and forced them to endure unthinkable physical trauma before silencing any outcries with threats of legal recourse,” stated FBI Assistant Director in Charge Raia.  “The FBI will continue to apprehend any trafficker who sexually abuses others for twisted gratification.”

“It’s alleged Rubin directed a sex trafficking enterprise, exploiting women who were transported from across the country to his Manhattan penthouse that was equipped with a soundproof sex room filled with BDSM equipment, including a device used to shock the women,” stated Special Agent in Charge of IRS-CI Chavis.  “This was not a one-man show.  While Rubin dehumanized these women with abhorrent sexual acts, Powers is alleged to have run the day-to-day operations of the enterprise and got paid generously for her efforts.  IRS-CI and FBI partnered to see fit that all the facts are detailed in this case and ensure that this pair realizes the full consequences of their ghastly behaviors.”

Rubin, now retired, built his wealth in New York City working in finance.  Powers, became his personal assistant around 2011, and managed the logistical aspects of their commercial sex operation.  As alleged in the indictment, between 2009 and 2019, Rubin and Powers recruited multiple women to travel to New York City to engage in commercial sex acts with Rubin involving bondage, discipline, dominance, submission and sadomasochism, referred to as “BDSM” sex, and some of the women were trafficked.  The commercial sex acts initially took place in luxury hotels, and then later in Rubin’s two-bedroom penthouse apartment (the “Penthouse”) in midtown Manhattan where he and Powers converted one of the bedrooms into what they referred to as a sex “dungeon” that was painted red, soundproofed and furnished with BDSM equipment and devices, including a device to shock or electrocute the women.  Rubin also used force, fraud and coercion to traffic another woman in 2018 in Las Vegas, Nevada.  Additionally, while fully embroiled in civil litigation related to this same conduct, Rubin falsely told a bank that he was not a party to litigation to secure a mortgage for Powers’s Texas home, which he financed. 

 As alleged, Rubin and Powers, together with others, recruited women to engage in commercial sex acts with Rubin.  Powers frequently arranged the women’s flights to New York to LaGuardia or John F. Kennedy International Airports in Queens and then transported them to the Penthouse.  During many of these encounters, Rubin brutalized women’s bodies, causing them to fear for their safety and/or resulting in significant pain and injuries.

As further alleged in the indictment, Rubin and Powers required the women to sign non-disclosure agreements (NDAs), which purported to require the women to assume the risk of the hazards and injury of the BDSM encounters with Rubin, prohibit the disclosure of information about the BDSM sex with Rubin and require the payment of damages in the event of a breach.  Rubin used the NDAs to threaten the women with legal consequences and public shaming if they sought legal recourse.

After the sexual encounters, Rubin and/or Powers used Rubin’s money to pay the women by wire transfer or a payment service such as PayPal or Venmo.  At times, Powers structured the payments to avoid sending a single transaction of $10,000 or more, to avoid triggering reporting obligations by the bank.  The indictment alleges the defendants spent at least $1 million of Rubin’s money operating and maintaining the trafficking network. 

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of sex trafficking, the defendants each face a maximum sentence of life imprisonment and a mandatory minimum sentence of 15 years’ imprisonment.  If convicted of transporting women to engage in commercial sex acts, the defendants face a maximum sentence of 10 years’ imprisonment on each count.  If Rubin is convicted of bank fraud, he faces a maximum sentence of 30 years’ imprisonment.

If you believe you have been victimized by or have information about Howard Rubin or Jennifer Powers, please contact the FBI at fbi.gov/HowardRubinVictims, HowardRubinVictims@FBI.gov or 212-384-3600.

The government’s case is being handled by the Office’s Human Trafficking and Civil Rights Section.  Assistant United States Attorneys Kayla Bensing, Tara McGrath, and Raffaela S. Belizaire are in charge of the prosecution, with the assistance of Paralegal Specialists Marlane Bosler and Timothy Migliaro

The Defendants:

HOWARD RUBIN (also known as “Howie” and “H”)
Age:  70
Fairfield, Connecticut

JENNIFER POWERS
Age:  45
Southlake, Texas

E.D.N.Y. Docket No. 25-CR-281 (MKB)

Earlier today, at the federal courthouse in Central Islip, Tony Ream pleaded guilty to wire fraud committed in connection with his employment as a credit supervisor for a Long Island Company (the Company).  Over the course of four years, Ream sent wire transfers totaling approximately $1.6 million from the Company’s bank account to a bank account that he controlled, and used those funds for his own personal gain.  The proceeding was held before United States District Judge Sanket J. Bulsara.  When sentenced, Ream faces up to 20 years’ imprisonment.  

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

“Ream abused his authority and betrayed his employer and its customers to fund his own lavish lifestyle,” stated United States Attorney Nocella.  “In just a few years, Ream embezzled over $1.6 million and used the stolen money to pay for his wedding, luxury international travel, and for renovations to a restaurant he had opened.  Ream will now be held accountable for this egregious conduct, thanks to the diligent work of our Office and our partners at the FBI.”

As set forth in court filings and statements made in court, the Company, headquartered in Melville, New York, is an American distributor of health care products and services, and serves as the world’s largest provider of health care solutions to office-based dental and medical practitioners worldwide.  Ream was hired by the Company in 2019 to work in its credit department and became a credit supervisor.  From approximately October 2020 through November 2024, Ream siphoned corporate funds from customer refund accounts, some of which were inactive, and diverted the funds to his own personal accounts, masking the fraud by recording each transaction as a refund that was issued to a customer.  Ream also deceived his subordinates into unwittingly taking steps that facilitated his embezzlement scheme.  In total, Ream embezzled approximately $1.6 million from the Company, which he spent on his wedding, luxury international vacations, and a failed restaurant venture in South Carolina.  As part of his plea, Ream has agreed to make full restitution to the Company.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorney Charles P. Kelly is in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Schroder.

The Defendant:

TONY REAM (also known as “Tony Ream-Hendley” and “Tony Moul Ream”)
Age: 34 
Greenville, South Carolina

E.D.N.Y. Docket No. 25-CR-179 (SJB)

Earlier today, in federal court in Central Islip, Michael Fazio, a teacher at a middle and high school on Long Island, pleaded guilty to possession of child pornography.  The proceeding was held before United States District Judge Nusrat J. Choudhury.  When sentenced, Fazio faces up to 20 years’ imprisonment.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), announced the guilty plea.

“Fazio possessed unthinkable graphic images of child sexual abuse, all while employed in a position of trust as a middle and high school music teacher,” stated United States Attorney Nocella.  “Prosecuting those who victimize children by feeding the market for child pornography will always be a top priority of our Office and our law enforcement partners.”

As set forth in court filings and statements, Fazio, a music teacher at the W.T. Clarke Middle and High School in East Meadow, possessed hundreds of images of child pornography in his Dropbox account and cellphone.  During the execution of a search warrant at his residence in April 2025, Fazio admitted that he uploaded three images of child pornography to his Dropbox account in October 2024.  A search of one of the defendant’s cellphones revealed more than 700 additional images of child pornography.  Another cellphone belonging to the defendant contained a “Hidden Pictures” folder, which he used to store adult pornographic images as well as images and videos of some of Fazio’s students that he surreptitiously recorded during music instruction.   

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

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorney Bradley T. King is in charge of the prosecution.

The Defendant:

MICHAEL FAZIO
Age:  40
Bellmore, Long Island

E.D.N.Y. Docket No. 25-CR-206 (NJC)

Earlier today, in federal court in Central Islip, Ryan Mueller was sentenced by United States District Judge Joan M. Azrack to 22 years in prison for the distribution of fentanyl causing the death of another.  The Court also ordered Mueller to forfeit $49,394 and two firearms.  Mueller pleaded guilty to distributing fentanyl that caused the death of another in December 2024.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Frank A Tarentino III, Special Agent in Charge, Drug Enforcement Administration (DEA), New York Division announced the sentence.

“Mueller operated a massive and deadly fentanyl scheme.  He built vending-machine-sized pill presses, possessed kilos of fentanyl and millions of fake and deadly pharmaceutical pills, and sold the fentanyl that led to the tragic loss of life of a retired police officer,” stated United States Attorney Nocella.  “Although no punishment can make up for a life lost, today’s sentence sends the message that our Office and our law enforcement partners will never stop working to stop unscrupulous drug dealers who distribute poison.”

Mr. Nocella expressed his appreciation to the Nassau County Police Department and Homeland Security Investigations, New York for their work on the case.

“Ryan Mueller’s decision to make and distribute fentanyl laced counterpart pills resulted in the death of an unsuspecting user who thought he was taking a legitimate pharmaceutical pill.  This tragedy is a stark reminder of the dangers that counterfeit pills have on our communities,” stated DEA Special Agent in Charge Tarentino.  “In February of 2025, the DEA and law enforcement partners seized approximately 3.4 million counterfeit pills from Mueller, making it one of the largest pill seizures in the New York Division’s history.  Many of the pills seized and tested in our laboratory contained lethal doses of fentanyl.  This wasn’t just a normal investigation; it was a life-saving operation.  The DEA and our law enforcement partners will continue to target those poisoning our communities and hold them accountable.  While today’s sentencing is a small victory, the harm it has caused this family will be long lasting.”

As set forth in the indictment and other court filings, over the last several years, Mueller conspired with others to sell several controlled substances, including fentanyl, heroin, cocaine and oxycodone.  In December 2022, a retired police officer died of a drug-related overdose at his residence on Long Island.  The investigation showed that the fentanyl that killed the victim, which was in a pressed pill made to appear to be oxycodone, was supplied by Mueller.  

Law enforcement officers recovered several kilos of fentanyl from Mueller’s residence.  Law enforcement also recovered multiple pill press parts from a storage facility controlled by the defendant, including powder dryers, blenders, and grinders.  Images of the pill presses that Mueller possessed are below:

In addition, in a February 2025 seizure of additional product distributed by Mueller, the DEA recovered approximately 3.4 million fake pharmaceutical pills, including fake oxycodone that contained fentanyl, fake Xanax pills, over 300,000 Quaalude pills and another approximately 600 grams of fentanyl in brick form.  This was the largest seizure of fake pills that the DEA New York Division has ever processed, and exceeded the entire New York Division’s totals from all of last year.  Pictures of some of the illegal drugs recovered can be seen below:

According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2024, approximately 80,391 people died from drug overdoses, making it a leading cause of injury-related death in the United States.  The increase in overdose deaths has been driven in large part by fentanyl, a drug that has been described as 50 to 100 times more potent than morphine.  In 2024, about 48,422 people died from a drug overdose involving synthetic opioids such as fentanyl, a figure that was more than 25,000 fewer than the 76,282 synthetic opioid overdose deaths that occurred in 2023.  Between 2023 and 2024, overall drug overdose deaths declined approximately 27%, from around 108,000 such deaths in 2023.  Deaths involving opioids fell from around 83,140 in 2023 to 54,743 in 2024.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorney Adam R. Toporovsky is in charge of the prosecution, with assistance from Paralegal Specialist Janelle Robinson.

The Defendant:

RYAN MUELLER
Age:  33
Lynbrook, New York

E.D.N.Y. Docket No. 24-CR-134

BROOKLYN, NY – Awais Chudhary was sentenced today by United States District Judge Carol Bagley Amon to nine years’ imprisonment for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in connection with his efforts to attack civilians with a knife in Queens, New York. 

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John Eisenberg, Assistant Attorney General of the Justice Department’s National Security Division; Christopher Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Awais Chudhary pledged allegiance to a brutal terrorist organization and set out to kill American citizens,” stated Attorney General Bondi.  “Our prosecutors have ensured that he will spend years behind bars for his crimes, and the Department of Justice will continue to protect the American people from all threats foreign and domestic.”

“After consuming violent ISIS propaganda for more than a year, the defendant took real world steps to carry out a lethal terrorist attack in Queens, including scouting the location of his attack and analyzing when it would be the most crowded so he could inflict maximum slaughter,” stated United States Attorney Nocella.  “Thanks to the Joint Terrorism Task Force, Chudhary was stopped before anyone was harmed.”

“Today, Awais Chudhary received a well-deserved punishment for his deliberate plans – motivated by ISIS’s barbaric propaganda – to conduct a mass casualty terrorist attack in Queens,” stated FBI Assistant Director in Charge Raia.  “The FBI New York’s Joint Terrorism Task Force remains vigilant and determined to defend our country from the evils of terrorism.”

“Awais Chudhary pledged allegiance to a foreign terrorist organization, actively helped to recruit individuals to join ISIS, and planned to commit a mass knife attack in Queens,” stated NYPD Commissioner Tisch.  “Chudhary’s plan to cause terror was stopped because of the women and men in law enforcement — and today, our justice system is holding him accountable.  I would like to thank our NYPD investigators as well as our partners at the FBI and the U.S. Attorney’s Office for their work hard work and determination.”

According to court filings, in August 2019, after watching violent terrorist propaganda videos, Chudhary pledged his allegiance to ISIS’s then-leader Abu Bakr al‑Baghdadi and began planning for a knife or bomb attack on behalf of the group.  Chudhary identified targets, including the pedestrian bridges over the Grand Central Parkway and the Flushing Bay Promenade, where he intended to carry out the attacks.  Chudhary conducted several reconnaissance trips to these locations and made video recordings of the areas he intended to attack.

Chudhary sought guidance from people whom he believed to be ISIS supporters, including about what type of knife to use and how to prevent detection from law enforcement by not leaving “traces of finger prints [or] DNA.”  Chudhary also sent a screenshot of an ISIS propaganda magazine that included a diagram of the human body depicting where to stab victims with a knife. 

In preparing for his attack, Chudhary ordered items online that he intended to use, including a tactical knife, a mask, gloves, and a cellphone chest and head-strap to help him to record the attack, which he hoped would serve as inspiration to other ISIS supporters.  Chudhary was arrested as he attempted to retrieve the items he ordered from an online retailer’s locker in Queens.

Before planning his specific violent attack, Chudhary separately contributed to ISIS’s violent aims to help recruit English-speaking internet users to the group’s hateful cause.  Working with another ISIS member who was separately convicted of material support charges, Chudhary assisted ISIS in its propaganda efforts by helping to translate some of the group’s propaganda materials into English.  See United States v. Carpenter, E.D.N.Y., Docket No. 21-CR-38.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ellen H. Sise, Lindsey R. Oken, and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Department of Justice’s Counterterrorism Section and Paralegal Specialist Rebecca Roth.

The Defendant:

AWAIS CHUDHARY
Age:  25
Queens, New York

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

A New York man was sentenced today to 108 months in prison followed by 15 years of supervised release for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in connection with his efforts to attack civilians with a knife in Queens, New York.

Awais Chudhary, 25, of Queens, pleaded guilty in the Eastern District of New York to attempting to provide material support to ISIS. According to court documents, in 2019, Chudhary pledged his allegiance to ISIS’s then-leader Abu Bakr al-Baghdadi and began planning for a knife or bomb attack on behalf of the group. Chudhary identified targets, including the pedestrian bridges over the Grand Central Parkway and the Flushing Bay Promenade, where he intended to carry out the attacks. Chudhary conducted several reconnaissance trips to these locations and made video recordings of the areas he intended to attack.

“Awais Chudhary pledged allegiance to a brutal terrorist organization and set out to kill American citizens,” said Attorney General Pamela Bondi. “Our prosecutors have ensured that he will spend years behind bars for his crimes, and the Department of Justice will continue to protect the American people from all threats foreign and domestic.”

“Awais Chudhary planned a horrific knife attack in the name of ISIS on civilians in New York, but his plan failed,” said FBI Director Kash Patel. “The men and women of the FBI never lose sight of the threat posed by supporters of ISIS and other terrorist organizations. We will continue to work with our law enforcement partners to detect and stop violent plots and will work just as diligently with our Justice Department partners to make sure these criminals are held accountable.”

“After consuming violent ISIS propaganda for more than a year, the defendant took real world steps to carry out a lethal terrorist attack in Queens, including scouting the location of his attack and analyzing when it would be the most crowded so he could inflict maximum slaughter,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Thanks to the Joint Terrorism Task Force, Chudhary was stopped before anyone was harmed.”

According to court filings, Chudhary sought guidance from people whom he believed to be ISIS supporters, including about what type of knife to use and how to prevent detection from law enforcement by not leaving “traces of finger prints [or] DNA.” Chudhary also sent a screenshot of an ISIS propaganda magazine that included a diagram of the human body depicting where to stab victims with a knife.

In preparing for his attack, Chudhary ordered items online that he intended to use, including a tactical knife, a mask, gloves, and a cellphone chest and head-strap to help him record the attack, which he hoped would serve as inspiration to other ISIS supporters. Chudhary was arrested as he attempted to retrieve the items he ordered from an online retailer’s locker in Queens.

Before planning his specific violent attack, Chudhary separately contributed to ISIS’s violent aims to help recruit English-speaking internet users to the group’s hateful cause. Working with another ISIS member who was separately convicted of material support charges, Chudhary assisted ISIS in its propaganda efforts by helping to translate some of the group’s propaganda materials into English. See United States v. Carpenter, No. 21 Cr. 38 (KAC) (E.D. Tenn).

Assistant Attorney General John A. Eisenberg of the Justice Department’s National Security Division, U.S. Attorney Joeseph Nocella Jr. for the Eastern District of New York, and Assistant Director Donald Holstead of the FBI’s Counterterrorism Division made the announcement.

Assistant U.S. Attorneys Ellen H. Sise, Lindsey R. Oken, and Andrew D. Reich for the Eastern District of New York and Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section are prosecuting the case.

Earlier today, at the federal court in Brooklyn, an indictment was unsealed charging Jordan Khammar with wire fraud and money laundering for his role in a decade-long scheme to defraud a multinational media, brand management, and consulting company and stealing over $8.2 million.  Khammar was arrested this morning in Columbus, Ohio, and will appear this afternoon in federal court in the Southern District of Ohio.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI New York) announced the arrest and charges.

“As alleged, for over a decade and on hundreds of occasions, Khammar betrayed his employer’s trust and took advantage of his access to its financial systems for personal gain,” stated United States Attorney Nocella.  “Our Office remains committed to seeking justice for all victims of fraud and prosecuting those who perpetrate it.”

“Not only is it alleged that Khammar engaged in a scheme to steal, misappropriate, and embezzle nearly $8.2 million from his former employer by exploiting his access the company’s financial system, but he then tried to conceal his fraud by falsifying company records," stated IRS-CI Special Agent in Charge Chavis.  "For a decade, Khammar greedily filled his pockets and spent the stolen money lavishly, but IRS Criminal Investigation caught up with him, and he will now pay what he owes for his alleged criminal acts."

As alleged in the indictment, Khammar was hired as a financial consultant in 2006 by a multinational media, brand management, and consulting company (Company-1).  He eventually became the company’s Financial Director with access to and control over a wide range of its financial accounts and systems including those tied to banking, accounting, bookkeeping and payroll functions. Between January 2015 and May 2025, Khammar abused that access and control to engage in a scheme to defraud Company-1 out of millions of dollars.  During the 10-year period, Khammar initiated over 300 fraudulent wire transactions, sending himself more than $8.2 million dollars from Company-1’s bank account.

Khammar took steps to conceal his scheme from Company-1, including by manipulating its books and records, circumventing internal controls, and limiting other employees’ and consultants’ access to the company financial systems and accounts.  For example, Khammar created over 100 false entries in Company-1’s general ledger, disguising his fraudulent wire transfers as purportedly legitimate payments for Company 1’s expenses such as company credit card bill payments, tax payments, and costs associated with the renovation of Company 1’s Brooklyn office.

Khammar wired most of the stolen money to an account held in the name of Olive Tree Ventures, Inc. (Olive Tree), a company that he founded, owned, and controlled.  From the Olive Tree account, Khammar dispersed a large portion of the funds to finance his independent business ventures including his media production company, Sideswipe Media, Inc. (Sideswipe), and diverting:

• $3.2 million to fund Sideswipe’s payroll including to pay multiple individuals associated with Sideswipe’s film and television productions, as well as $325,000 in payroll payments to himself;
• $429,000 in commercial real estate rental payments for office space in Brooklyn used by Olive Tree and Sideswipe; and
• $415,000 in transfers to Sideswipe’s bank account.

Khammar also used the stolen funds to purchase hundreds of thousands of dollars-worth of real estate in Florida and Ohio, and to further pay himself and a variety of personal expenses, including:

• $1.2 million in personal credit card bills;
• $163,000 in purported payroll payments to himself via another company that he founded, owned and controlled;
• $135,000 in cash withdrawals; and
• Tens of thousands of dollars in other expenses including furniture, travel, meal purchases, and utility payments.

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

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorneys Jonathan P. Lax and Dana Rehnquist are in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

JORDAN KHAMMAR
Age: 47
Columbus, Ohio

E.D.N.Y. Docket No. 25-CR-283 (AMD)

BROOKLYN, NY – Earlier today, an indictment was unsealed in federal court in Brooklyn, charging Julio Cesar Montero Pinzon (Montero Pinzon), also known as “El Tarjetas,” “Moreno,” “El Chess,” “Cesar Hernandez Jimenez,” and “CH Jimenez,” a senior member of the Cartel de Jalisco Nueva Generacion (CJNG), and his half-sister Griselda Margarita Arredondo Pinzon (Arredondo Pinzon), for their roles in an international fraud scheme organized and controlled by CJNG that targeted Americans who own timeshare properties in Mexico.  Montero Pinzon and Arredondo Pinzon are each charged with conspiracy to commit wire fraud and conspiracy to commit money laundering.  In addition, Montero Pinzon is charged with conspiracy to provide and providing material support to a foreign terrorist organization. CJNG is a transnational criminal group based in Mexico.  The defendants are Mexican nationals and are not in U.S. custody.

CJNG is a transnational criminal group based in Mexico. On February 20, 2025, CJNG was designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist.  Montero Pinzon continued to engage in CJNG’s timeshare fraud and in the laundering of victim funds derived from that fraud after CJNG was designated as an FTO and with knowledge of CJNG’s designation.   

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Brett A. Shumate, Assistant Attorney General of the Justice Department’s Civil Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Frank A. Tarentino III, Special Agent in Charge, Drug Enforcement Administration New York Division (DEA New York); and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York), announced the indictment.

“This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people,” stated Attorney General Bondi.  “The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department.”

“As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a violent foreign terrorist and narcotics trafficking organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners,” stated United States Attorney Nocella.  “CJNG funds its criminal terrorist operations using multiple tactics, from trafficking dangerous narcotics to executing complex fraud schemes, and our Office will continue to use all available tools and resources to protect American investors and the public at large, and bring to justice those who provide support to the cartel.”

Mr. Nocella also expressed his appreciation to the Justice Department’s Consumer Protection Branch and National Security Division, and U.S. Customs and Border Protection, New York Field Office, for their invaluable assistance during the investigation.

“For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization,” stated FBI Assistant Director in Charge Raia.  “This alleged scheme spanned the globe and exploited thousands of victims, reflecting the cartel’s evolution of developing various mechanisms for criminal financing. Today’s significant disruption emphasizes the FBI’s determined resolve to not only eliminate any monetary source fueling criminal enterprises but also defend our nation against foreign adversaries.”

“CJNG has repeatedly victimized our communities through widespread drug trafficking, ruthless violence, money laundering, fraud, and other criminal schemes. Their cartel operations extend well beyond Mexico, pumping poison into American streets, fueling addiction, tearing apart neighborhoods, and corrupting financial systems,” stated DEA New York Special Agent in Charge Tarentino.  “Thanks to the relentless work of DEA’s Trident Initiative—an initiative built with our federal law enforcement partners and created specifically to target and dismantle drug cartels and their leadership, the DEA and our partners were able to pursue senior members like Montero Pinzon and Arredondo Pinzon, cutting off CJNG and its network of its illicit profits through money laundering and fraud.  The DEA remains relentless in dismantling these cartels and our pursuit for justice. This is our global fight—and our promise to save lives.”

“Cartel de Jalisco Nueva Generacion ran this timeshare fraud scheme like a business, with each member playing a role—finding the investors to victimize, manipulating the docs and online sites, moving and hiding the money, and securing funds to purchase and distribute deadly narcotics into the United States,” stated IRS-CI New York Special Agent in Charge Chavis. “This massive, multi-million dollar fraud required timeshare owners to pay up front to sell or rent their timeshares, only to be left victim to the false promise of receiving money later.  The CJNG cannot continue to operate with impunity—pocketing massive profits from narcotics trafficking and flat-out deception—which is why federal law enforcement will continue partnering in these investigations until this entire criminal organization is dismantled.”

As alleged in the indictment, since approximately 2012, CJNG perpetrated an “advance fee” fraud scheme targeting owners of timeshare properties in Mexico, including many cities in Jalisco.  As part of the scheme, timeshare owners, many of whom were residents and citizens of the United States, were fraudulently induced to pay money up front either to sell or rent their timeshares under the pretext of fees and taxes, in exchange for false promises of receiving money later.  Despite paying the advance fees, the victim timeshare owners did not receive the funds as promised and were unable to recoup their advance fee payments.  The fraud scheme was multi-layered, and involved follow-on schemes in which the fraudsters contacted victim timeshare owners and claimed to be lawyers or government officials who could help the victims recover their lost funds, so long as they paid additional advance fees.

The timeshare fraud scheme perpetrated by CJNG was operated out of various call centers in Mexico, where fraudsters contacted and solicited timeshare owners.  Since approximately 2012, Montero Pinzon participated in the creation and management of a financial network for receiving and laundering funds obtained from victims of CJNG’s timeshare fraud scheme.  Arredondo Pinzon worked at a CJNG-controlled central office that oversaw the operations of the call centers and oversaw the receipt and laundering of victim funds.

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

Additionally, on August 13, 2025, U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Montero Pinzon for his role in CJNG’s timeshare fraud scheme.  Arredondo Pinzon was previously sanctioned by OFAC for her role in CJNG’s timeshare fraud scheme.  To date, OFAC has sanctioned over 70 individuals and entities based on their participation in CJNG’s timeshare fraud.  Between approximately 2019-2024, approximately 6,000 U.S. victims have reported losses of approximately $350 million attributable to timeshare fraud schemes in Mexico.   

The government’s case is being handled by the Office’s Business and Securities Fraud Section and International Narcotics and Money Laundering Section, with the Justice Department Civil Division’s Consumer Protection Branch.  Assistant United States  Attorneys Benjamin Weintraub and Andrew Wang are in charge of the prosecution with Trial Attorneys Brant Cook and Maryann McGuire.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The case is part of the work of the Office’s Transnational Criminal Organizations Strike Force.

Complaints are often under-reported. Victims are encouraged to file a complaint at IC3.gov. Additional resources for victims are available at: FBI Timeshare Fraud Victim Resource Page

The Defendants:

JULIO CESAR MONTERO PINZON (also known as “El Tarjetas,” “Moreno,” “El Chess,” “Cesar Hernandez Jiminez,” and “CH Jiminez”)
Age: 43
Puerto Vallarta, Mexico

GRISELDA MARGARITA ARREDONDO PINZON
Age: 35
Puerto Vallarta, Mexico

E.D.N.Y. Docket No. 25-CR-169 (ARR)

Earlier today, an indictment was unsealed charging Julio Cesar Montero Pinzon (Montero Pinzon), also known as El Tarjetas, Moreno, El Chess, Cesar Hernandez Jimenez, and CH Jimenez, a senior member of the Cartel de Jalisco Nueva Generacion (CJNG), and his half-sister Griselda Margarita Arredondo Pinzon (Arredondo Pinzon), for their roles in perpetrating an international fraud scheme targeting Americans who own timeshare properties in Mexico. Montero Pinzon and Arredondo Pinzon were each charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition, Montero Pinzon was charged with conspiracy to provide material support to a foreign terrorist organization and providing and attempting to provide material support to a foreign terrorist organization. Both Montero Pinzon and Arredondo Pinzon are Mexican nationals and are not in U.S. custody.   

“This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people,” said Attorney General Pamela Bondi. “The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department.”

“As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a dangerous terrorist organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Terrorist cartels such as CJNG fund their activities not only through drug trafficking but also through complex fraud schemes, and this office is committed to aggressively prosecuting such crimes.”

“For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization,” said Assistant Director in Charge Christorpher G. Raia of the FBI New York Field Office. “This alleged scheme spanned the globe and exploited thousands of victims, reflecting the cartel’s evolution of developing various mechanisms for criminal financing. Today’s significant disruption emphasizes the FBI’s determined resolve to not only eliminate any monetary source fueling criminal enterprises but also defend our nation against foreign adversaries.”

“CJNG has repeatedly victimized our communities through widespread drug trafficking, ruthless violence, money laundering, fraud, and other criminal schemes. Their cartel operations extend well beyond Mexico, pumping poison into American streets, fueling addiction, tearing apart neighborhoods, and corrupting financial systems,” said Special Agent in Charge Frank A. Tarentino of DEA New York Division. “Thanks to the relentless work of DEA’s Trident Initiative — an initiative built with our federal law enforcement partners and created specifically to target and dismantle drug cartels and their leadership, the DEA and our partners were able to pursue senior members like Montero Pinzon and Arredondo Pinzon, cutting off CJNG and its network of its illicit profits through money laundering and fraud. The DEA remains relentless in dismantling these cartels and our pursuit for justice. This is our global fight — and our promise to save lives.”

“Cartel de Jalisco Nueva Generacion ran this timeshare fraud scheme like a business, with each member playing a role — finding the investors to victimize, manipulating the docs and online sites, moving and hiding the money, and securing funds to purchase and distribute deadly narcotics into the United States,” said Special Agent in Charge Harry T. Chavis of IRS-CI's New York Field Office. “This massive, multi-million dollar fraud required timeshare owners to pay up front to sell or rent their timeshares, only to be left victim to the false promise of receiving money later. The CJNG cannot continue to operate with impunity — pocketing massive profits from narcotics trafficking and flat-out deception — which is why federal law enforcement will continue partnering in these investigations until this entire criminal organization is dismantled.”

According to the indictment, CJNG has been perpetrating an “advance fee” fraud scheme targeting owners of timeshare properties since approximately 2012. As part of the scheme, timeshare owners, many of whom were residents and citizens of the United States, were fraudulently induced to pay money up front either to sell or rent their timeshares under the pretext of fees and taxes, in exchange for false promises of receiving money later. Despite paying the advance fees, the victim timeshare owners did not receive the funds as promised and were unable to recoup their advance fee payments. The fraud scheme was multi-layered, involving follow-on schemes in which the fraudsters contacted victim timeshare owners and claimed to be lawyers or government officials who could help the victims recover their lost funds, so long as they paid additional advance fees.

The timeshare fraud scheme perpetrated by CJNG was operated out of various call centers in Mexico, where fraudsters contacted and solicited timeshare owners. Since approximately 2012, Montero Pinzon participated in the creation and management of a financial network for receiving and laundering funds obtained from victims of CJNG’s timeshare fraud scheme. Arredondo Pinzon worked at a CJNG-controlled central office that oversaw the operations of the call centers and oversaw the receipt and laundering of victim funds.

If convicted, the defendants face up to 20 years in prison on each count.

On Feb. 20, CJNG was designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist, pursuant to section 219 of the Immigration and Nationality Act, as amended, and Executive Order 13224, as amended. Montero Pinzon continued to engage in CJNG’s timeshare fraud and in the laundering of victim funds derived from that fraud after CJNG was designated as an FTO and with knowledge of CJNG’s designation.   

On Aug. 13, Montero Pinzon was sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) for his role in CJNG’s timeshare fraud scheme. On July 16, 2024, OFAC sanctioned Arredondo Pinzon for her role in CJNG’s timeshare fraud scheme. To date, OFAC has sanctioned over 70 individuals and entities based on their participation in CJNG’s timeshare fraud. Between approximately 2019-2024, approximately 6,000 U.S. victims have reported losses of approximately $350 million attributable to timeshare fraud schemes in Mexico.   

Trial Attorneys Brant Cook and Maryann McGuire of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Benjamin Weintraub and Andrew Wang for the Eastern District of New York are prosecuting the case, with critical support from the Justice Department’s Office of International Affairs.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.

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 www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Complaints are often under-reported. Victims are encouraged to file a complaint at IC3.gov. Additional resources for victims are available at: FBI Timeshare Fraud Victim Resource Page

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

Leury Mojica was sentenced today by United States District Judge Carol Bagley Amon in federal court in Brooklyn to 108 months’ imprisonment for assaulting a federal correction officer and attempting to murder a fellow inmate while the defendant was incarcerated at the Metropolitan Detention Center (MDC-Brooklyn).  In April 2025, Mojica pleaded guilty to assaulting a federal officer.  As part of his plea agreement, Mojica also admitted to attempting to murder a fellow inmate and agreed that the Court should consider this conduct in determining the sentence imposed.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Today’s sentence makes clear that there are serious consequences for inmates who endanger the safety and security of the Metropolitan Detention Center by committing acts of violence against correction officers and other inmates,” stated United States Attorney Nocella. “Holding incarcerated individuals accountable for their conduct will deter other inmates from engaging in crimes and dangerous conduct in the jail.”

Mr. Nocella thanked the United States Attorney’s Office for the Southern District of New York and the U.S. Bureau of Prisons for their assistance with the investigation.

“Leury Mojica physically restrained a fellow inmate to allow others to commence a brutal knife attack and continued his aggressive outbursts with an unprovoked assault against a correction officer.  Mojica’s combative streak recklessly endangered the lives of other inmates and correction officers.  May today’s sentencing deter any detainee from grossly violating law and order in our federal detention centers through violent misconduct,” stated FBI Assistant Director in Charge Raia.

According to court filings and statements made in court, in February 2022, Mojica was arraigned in the Southern District of New York and ordered detained at MDC-Brooklyn pending trial in connection with charges related to his participation in multiple robberies.  On February 28, 2023, Mojica and five other inmates attempted to kill another inmate in a knife attack.  Mojica actively participated in the attack, including by restraining the victim while another inmate stabbed him.  As a result of the stabbing, the victim suffered lacerations to his forehead and nose, and puncture wounds to his face, neck, lower back, and arms. Subsequently, on August 24, 2024, while detained at MDC-Brooklyn, Mojica punched a federal correction officer in the face after the officer asked the defendant if he wanted fruit with his breakfast.  The officer suffered a contusion to his face.

Assistant United States Attorney David Berman is in charge of the prosecution.

The Defendant:

LEURY MOJICA
Age:  22
Bronx, New York

E.D.N.Y. Docket No. 25-CR-13 (CBA)

A 23-count indictment was unsealed today charging seven defendants variously with firearms trafficking, conspiracy to traffic firearms, conspiracy to distribute and possession with intent to distribute cocaine base, and related offenses.  John Donaldson, also known as “Jay,” Juanita Figueroa, Ronald Jackson, also known as “Stuben,” and Nicholas Willacy, also known as “Light,” were arrested in New York and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.  Marcus Dyce, also known as “John John,” was arrested in Missouri and will be arraigned in the Eastern District of Missouri.  Lonney Walker, also known as “Hollywood,” was arrested in South Carolina and will be arraigned in the District of South Carolina.  Coty Harley is in state custody in New York and will be arraigned in the Eastern District of New York at a later date.  An eighth defendant, Juancarlos Hechavarria, Sr., charged separately by complaint, was arrested in South Carolina and will be arraigned in the District of South Carolina.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, New York City Police Department (NYPD) announced the charges.

“As alleged, the defendants sold a significant number of pistols, rifles, and bags of crack cocaine in Staten Island, New Jersey, and the Bronx,” stated United States Attorney Nocella.  “Gun violence and the proliferation of narcotics are serious and ongoing threats to our communities.  Our Office and federal and local law enforcement are committed to protecting the public by stopping the flow of dangerous firearms and narcotics into the hands of criminals by using proactive investigations and collaborating with our law enforcement partners.”

“These eight defendants allegedly orchestrated a national trafficking network to import 37 firearms, including assault-style rifles and extended magazines, into the tristate region, while some distributed narcotics as another source of illicit income,” stated FBI Assistant Director in Charge Raia.  “Their alleged criminal behavior unnecessarily introduced deadly weapons and drugs into our communities, posing a significant threat to the lives of the surrounding public unaware of these illegal transactions.  May today’s Operation Summer Heat takedown emphasize the FBI’s steadfast commitment to continue collaborating with our law enforcement partners to disrupt any unlawful sales fueling criminal activity in our city.”

“These alleged gun traffickers flooded communities in the Bronx and Staten Island with dozens of dangerous firearms, including assault weapons and high-capacity magazines that have no business on the streets of New York City,” stated NYPD Commissioner Tisch.  “The members of the NYPD work tirelessly to identify and dismantle these criminal networks that bring illegal guns and drugs into our city and put people in harm's way.  I am grateful to the NYPD investigators and our partners at the FBI and the U.S. Attorney’s Office for putting a stop to this dangerous pipeline.”

As alleged in the indictment and court documents, from August 2022 through August 2025, Donaldson, Dyce, Walker and Harley variously engaged in multiple transactions involving the sale of 37 illegal firearms in Staten Island, the Bronx, and New Jersey.  Several of the sales took place in the middle of the day in residential areas where members of the public were engaging in daily activities.  At least one of the defendants transported firearms from South Carolina to be sold onto the streets of New York.  The firearms were predominantly traced to southern states including North Carolina, South Carolina, Kentucky, Texas, and Georgia, and included AR-15 style rifles, shotguns, and pistols of various calibers; semiautomatic weapons; and several extended magazines, including a drum magazine capable of holding approximately 100 rounds of ammunition. 

As alleged in the complaint, in addition to the above firearms sales, Hechavarria, Sr., who Dyce connected with a buyer, sold three firearms in exchange for $3,100 in Brooklyn outside a restaurant in broad daylight. All three firearms were traced to South Carolina.

As alleged in the indictment and court documents, several of the defendants also engaged in narcotics trafficking conspiracies involving the sale of cocaine base in the community.  On two occasions, Harley sold at least one firearm and cocaine base in one transaction.  Following his incarceration on unrelated charges, Harley continued to arrange for the sale of cocaine base in New York communities, including through Figueroa, Willacy and Jackson.  As a result, Willacy sold approximately 18 grams of cocaine base in August 2025 and Jackson sold a total of approximately 50 grams of cocaine base from June 2025 through July 2025.

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

The joint investigation was conducted by the FBI/NYPD Metro Safe Streets Task Force.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Stephanie Pak is in charge of the prosecution of Donaldson, Dyce, Figueroa, Harley, Jackson, Walker and Willacy. Assistant United States Attorney Matthew Sullivan is in charge of the prosecution of Hechavarria, Sr.

The Defendants:

JOHN DONALDSON (also known as “Jay”)
Age:    61
Bronx, New York

MARCUS DYCE (also known as “John John”)
Age:    50
St. Louis, Missouri

JUANITA FIGUEROA
Age:    44
Staten Island, New York

COTY HARLEY (also known as “Boatee”)
Age:    39
Staten Island, New York

RONALD JACKSON (also known as “Stuben”)
Age:    43
Staten Island, New York

LONNEY WALKER (also known as “Hollywood”)
Age:    48
Columbia, South Carolina

NICHOLAS WILLACY (also known as “Light”)
Age:    47
Staten Island, New York

E.D.N.Y. Docket No. 25-CR-278 (BMC)

---

JUANCARLOS HECHAVARRIA SR. (also known as “Los”)
Age:    52
Sumter, South Carolina

E.D.N.Y. Docket No. 25-MJ-273

BROOKLYN, NY – A criminal complaint has been filed in federal court in Brooklyn charging Bryan Oviedo with setting fire to a church and a residential apartment building on August 20, 2025.  Oviedo was arrested in Brooklyn on Saturday, September 13, 2025, and is scheduled to make his initial appearance this afternoon before United States Magistrate Robert M. Levy.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); and Robert S. Tucker, Commissioner, New York City Fire Department (FDNY), announced the arrest and charge. 

“As alleged in the complaint, Oviedo went on a pre-dawn spree in residential neighborhoods in Brooklyn during which he set fire to multiple buildings, including a church and a residential building, while families slept inside, endangering lives and causing first responders to race to the scenes of these arsons,” stated United States Attorney Nocella.  “Our Office will vigorously prosecute this type of violent conduct, and work tirelessly to ensure the safety of our most sacred places, including homes and places of worship.”

“This arrest marks a critical step in restoring safety and peace of mind to our community,” stated ATF Special Agent in Charge Miller.  “The collaborative efforts between law enforcement, fire investigators, and the public were instrumental in bringing this individual to justice.  We remain committed working with our Federal and State partners to hold accountable those who threaten lives and property through acts of deliberate destruction.”

“While New Yorkers were asleep in the dead of night, Bryan Oviedo allegedly put them and their neighbors in grave danger by lighting their residences and a church on fire,” stated NYPD Commissioner Tisch. “Our homes and houses of worship stand as walls of safety for every community, and I am thankful for the quick response of the police officers and firefighters who put their lives at risk to contain these flames. The NYPD will continue to work with our partners in the FDNY, ATF, and the U.S. Attorney’s Office to ensure this arsonist is held fully accountable.”

“Arson is a reckless crime that places innocent New Yorkers and our first responders in harm’s way,” stated FDNY Commissioner Tucker.  “Thanks to the coordinated efforts of our Fire Marshals, the NYPD, the ATF, and the U.S Attorney’s Office, this dangerous perpetrator has been removed from the City’s streets and will be brought to justice. This arrest demonstrates the strength of our public safety partnerships and how, together, we keep New Yorkers safe every day.”

As set forth in the complaint, between approximately 3:00 a.m. and 6:00 a.m. on August 20, 2025, Oviedo was captured on surveillance video carrying a trash bag, wearing a distinctive skirt, riding the G train, and walking the streets setting fires to approximately 20 buildings across the Clinton Hill and Prospect Heights neighborhoods in Brooklyn, New York.  One surveillance video shows him leaning over a trash can under the columns of a church, located at 520 Clinton Avenue, and lighting the trash can on fire, causing substantial damage to the church.  Another surveillance video shows a porch area of a residential building located at 870 Pacific Street erupting in flames after Oviedo approaches in his distinct garb.     

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

The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Andrew Reich and Andy Palacio are in charge of the prosecution.

The Defendant:

BRYAN OVIEDO
Age:  32
Brooklyn, New York

E.D.N.Y. Docket No. 25-MJ-268

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Yveler Marcellus was convicted by a jury of conspiracy to commit money laundering and conspiracy to commit mail and wire fraud in connection with a fraudulent scheme that targeted dozens of vulnerable victims in the United States.  The verdict followed a five-day trial before United States District Judge Carol Bagley Amon. When sentenced, Marcellus faces up to 40 years in prison.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.

“The evidence showed that Yveler Marcellus worked closely with a crew based in New York, along with co-conspirators abroad, to perpetrate a sprawling, transnational money laundering and fraud scheme that cruelly preyed on vulnerable victims’ fears that their money was compromised and that they were running afoul of the law,” stated United States Attorney Nocella.  “Today’s verdict underscores our Office’s commitment to vigorously prosecute criminals who conspire with foreign actors for their own monetary gain and to the financial detriment of elderly and other vulnerable victims.”

Mr. Nocella thanked Homeland Security Investigations, New York, and the Nassau County Police Department for their assistance on the case.

“Postal Inspectors have long investigated telemarketing scams and mail fraud, and unfortunately the elderly are often victims of these schemes by greedy and callous individuals. This verdict is another victory for consumers, and sends a strong message to those who use the U.S. Mail to prey on our seniors, you will be brought to justice and pay for your crimes.” said USPIS Inspector In Charge Brubaker.  “The U.S. Postal Inspection Service is committed to combating elder fraud designed to defraud innocent victims primarily by illegal use of the U.S. Mail, and we continue taking steps to educate Americans about the dangers of various types of frauds.”

As proven at trial, between January 2022 and December 2023, Marcellus and his co-conspirators participated in a “tech” scheme, through which co-conspirators based in India contacted victims by phone and convinced them to send money instruments, including checks and money orders, to the defendant and other U.S-based co-conspirators at various addresses in the Eastern District of New York. After receiving the victims’ checks, Marcellus and his U.S.-based co-conspirators laundered the check proceeds through their own bank accounts and other bank accounts that they controlled, shared the proceeds amongst themselves, and sent the remainder of the laundered proceeds to the co-conspirators in India.  The scheme is estimated to have netted over $12 million from victims across the United States.

Seven of Marcellus’s co-conspirators previously pleaded guilty for their roles in the scheme and are awaiting sentencing.

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorneys Molly Delaney and David Berman are in charge of the prosecution with the assistance of Paralegal Specialists John Schneider and Erin Payne.

The Defendant:

YVELER MARCELLUS
Age:  32
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-9 (S-1) (CBA)

Defendants Who Have Previously Pleaded Guilty:

DANIEL VERNON
Age:  29
Queens, New York

FELIX MARCIAL
Age:  32
Brooklyn, New York

TATIANA WILLIAMS
Age:  28
Miramar, Florida

ASHEEM HENRY
Age:  34
New York, New York

RAHMEL THOMPSON
Age:  26
Queens, New York

GEORGE MIMS
Age:  38
New York, New York

DAQUAN MITCHELL
Age:  34
New York, New York

E.D.N.Y. Docket No. 24-CR-9 (CBA)

BROOKLYN, NY – Marcia Joseph was sentenced today by United States District Judge Eric N. Vitaliano in federal court in Brooklyn to 21 months’ imprisonment for embezzling funds from her employer, a non-profit organization based in Brooklyn that provides employment and education services for those in need (the Non-Profit).  Joseph pleaded guilty to wire fraud in January 2024.  As part of her sentence, Joseph was also ordered to pay $2.3 million in restitution and forfeiture in the amount of $2.3 million. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) announced the sentence.

“By stealing from a charity she was entrusted to serve, the defendant shamefully diverted resources from those in need to line her own pockets,” stated United States Attorney Nocella.  “Today’s sentence makes clear that those who exploit non-profits for personal gain will face the loss of their freedom and serious financial penalties.  Our Office is committed to protecting non-profit organizations and the communities that rely on them from fraudsters.”

“Marcia Joseph abused her position and access within a non-profit charity to steal more than two million dollars intended to fund critical employment and education services for the city,” stated FBI Assistant Director in Charge Raia. “For nearly two decades, Joseph selfishly prioritized her extravagant lifestyle at the expense of those who truly needed the financial aid.  The FBI remains committed to protecting vulnerable populations from becoming targets of fraudulent and exploitative schemes.”

“Non-profits that receive City funding provide critical services to New Yorkers.   As a senior fiscal officer, this defendant had a duty to act in the best interests of this City-funded organization; instead she abused her position and access to steal over $2.3 million, generating fictitious documentation to hide her theft for almost two decades.  DOI thanks our law enforcement partners at the U.S. Attorney’s Office for the Eastern District of New York and the FBI for their commitment to protect the City’s precious resources for the benefit of their intended recipients,” stated DOI Commissioner Strauber.   

According to court filings and statements made in court, Joseph was a former senior fiscal officer for the Non-Profit. Joseph admitted stealing $2,339,700 from the Non-Profit and funneled the funds to a sham company she had set up. The invoices described services purportedly provided in connection with a New York City Department of Education educational program focusing on students in shelters and, later, job training for adults in shelters.  Over the course of nearly 17 years, Joseph generated and submitted more than 500 fictitious invoices and manipulated the Non-Profit’s accounting systems to avoid detection.  She used the stolen funds to pay for numerous personal expenses, including approximately $235,000 in mortgage payments, $207,000 in credit card payments, $98,000 in car payments, $45,000 in Amazon expenses, and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States  Attorney Eric Silverberg is in charge of the prosecution.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters and Assistant United States Attorney Daniel Saavedra of the Office’s Financial Litigation Program is assisting with restitution matters.

The Defendant:

MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age:  59
Baldwin, Long Island

E.D.N.Y. Docket No. 24-CR-04 (ENV)

BROOKLYN, NY –  Earlier today, in federal court in Brooklyn, former New York City Police Department officer Jason Rodriguez was sentenced by United States District Judge Ramon E. Reyes, Jr. to 36 months in prison for his role in perpetrating a fraudulent investment scheme.  Rodriguez, along with his co-conspirator Edwin Carrion, induced over 20 individuals to invest over $4 million with their foreign exchange (forex) trading fund, Technical Trading Team LLC, based on a slew of misrepresentations.  In addition to the term of imprisonment, Judge Reyes ordered Rodriguez to pay a forfeiture money judgment of $748,394.00 and to pay restitution of $2,305,256.00.  Rodriguez pleaded guilty to wire fraud conspiracy in November 2024.

The sentence was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).

“Today, the defendant received just punishment for defrauding over 20 individual investors out of millions of dollars of hard-earned money.  The defendant violated the trust his clients placed in him by falsely promising them a safe investment opportunity,” stated United States Attorney Nocella.  “Our Office and our law enforcement partners will continue to pursue justice for victims of financial crime who fall prey to individuals like Rodriguez who advance their greedy desires at the expense of others.”

According to court filings and the defendant’s admissions, Rodriguez and Carrion founded Technical Trading Team in the spring of 2020 and Rodriguez served as the company’s Chief Operating Officer. Rodriguez had sole trading authority over the vast majority of the nearly $5 million raised by Technical Trading Team from over 20 individual investors.  Rodriguez and Carrion promised investors annual investment returns ranging from 18% to 24% and convinced investors to invest based on a number of material misrepresentations.  Rodriguez and Carrion promised investors that they were making a safe investment; in reality, Rodriguez disregarded numerous safeguards that he promised investors were in place to protect their investments.  For example, though Rodriguez and Carrion promised investors that Technical Trading Team had a “loss reserve account” comprised of funds that would not be traded and could be used to repay investors in the event of market losses, no such “loss reserve account” ever existed.  Rodriguez also promised investors that Technical Trading Team would never expose more than 1% of Technical Trading Team investors’ funds to market risk at any given time, only to ignore that safeguard as well. Further, Rodriguez promised investors that Technical Trading Team would not hold trading positions open overnight, which Rodriguez ignored on multiple occasions, including once holding a trade open from February 2021 until April 2022, resulting in a catastrophic loss of over $150,000, representing approximately 12.61% of Technical Trading Team’s assets.  Once it became clear to Rodriguez that Technical Trading Team could not pay its investors their promised returns using trading profits, Rodriguez turned Technical Trading Team into a Ponzi scheme and began using money from new investors to pay older investors their interest payments and principal redemptions.     

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Benjamin Weintraub is in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett.

The Defendant:

JASON RODRIGUEZ
Age:  38
Bellerose, New York

E.D.N.Y. Docket No. 24-CR-79

A five-count indictment was unsealed earlier today in federal court in Brooklyn variously charging five defendants with conspiracy to commit wire fraud, conspiracy to commit bank fraud, bank fraud, access device fraud and conspiracy to commit money laundering.  The charges arise from a more than two-year scheme to fraudulently acquire and resell over $20 million in building and construction materials, and appliances from home improvement and hardware stores throughout Brooklyn, Queens, Long Island and elsewhere.  The defendants were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Seth D. Eichenholtz.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Matt McCool, Special Agent in Charge, United States Secret Service (USSS), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.

“For these defendants, the tools of their trade were not hammers and nails, but fraud and deception.  They enriched themselves by targeting programs designed for hard working consumers and small businesses to buy materials for construction and home improvement,” stated United States Attorney Nocella.  “Today’s arrests serve as a warning to those who try to profit from retail fraud: crime doesn’t pay.”

“The Secret Service is proud to help disrupt an alleged criminal syndicate that carried out an elaborate fraud scheme here in New York City, siphoning millions of dollars into its coffers through bad checks in order to procure construction-related materials for illegitimate resale," stated USSS Special Agent in Charge McCool.  “I want to congratulate our agents and our partners at both the Eastern District of New York and the NYPD for their hard work in holding these criminals accountable.”

“These defendants allegedly deceived credit lenders with bogus bank checks to steal more than the $20 million of merchandise from hardware and home improvement businesses,” stated NYPD Commissioner Tisch.  “Schemes like this don’t just affect retail corporations – they hurt honest consumers who rely on these programs to purchase trade supplies.  I am thankful to the NYPD investigators, our federal partners at the United States Secret Service and HSI, and the U.S Attorney’s Office for shutting this scam operation down and holding these fraudsters accountable.”

As set forth in court filings, from approximately July 2023 until September 2025, the defendants and their co-conspirators opened, or caused others acting at their direction to open, hundreds of lines of credit that hardware and home improvement stores made available to customers through the stores’ partner banks.  These lines of credit included traditional consumer credit cards, which were designed for individual consumers’ personal use at the stores, and commercial lines of credit, which were aimed primarily for small businesses to purchase goods at the stores.  The defendants opened many of these credit lines in the names of other people or on behalf of shell companies that had recently been founded or incorporated, were created in the names of straw owners and/or had no legitimate business operations.  To increase the credit limits on their credit lines, the defendants presented paper checks to the stores under the guise of pre-funding the accounts or paying for past purchases.  In reality, these checks were linked to bank accounts that had insufficient funds to cover the amounts printed on the checks.  Before the checks were rejected, however, the defendants purchased significant amounts of building and construction materials for delivery to their warehouses.  In total, the defendants and their co-conspirators stole over $20 million in merchandise, much of which they resold to others.  Profits of their scheme were then laundered to offshore bank accounts and used to finance the ongoing operations of their warehouses.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, the defendants each face up to 30 years in prison.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorney James R. Simmons is in charge of the prosecution, with assistance from Paralegal Specialist Asher Martin-Rosenthal.

The Defendants:

KAI XU
Age:  44
Queens, New York

ZHI BIN AN
Age:  56
Brooklyn, New York

XIANG CHEN
Age:  39
Queens, New York

SONGHAK LEE
Age:  35
Queens, New York

KANG ZHANG
Age:  30
Queens, New York

E.D.N.Y. Docket No. 25-CR-275 (RPK)

BROOKLYN, NY – Jordan Alston was convicted today in federal court in Brooklyn of possessing an object intended to be used as a weapon while an inmate at the Metropolitan Detention Center (the MDC). The verdict followed a three-day trial before United States Second Circuit Judge Denny Chin, sitting by designation. When sentenced, Alston faces up to five years in prison. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF) announced the verdict.

“It is clear from the defendant’s conviction for possessing this weapon that he is a danger to the community at large as well as inside a correctional institution,” stated United States Attorney Nocella.  “Today’s verdict holds him accountable for his lack of respect for the law.”

“Today’s conviction highlights our commitment to holding violent offenders accountable — wherever they may be,” stated ATF Special Agent in Charge Miller.  “Possessing weapons in custody threatens the safety of staff, inmates, and the justice system.  ATF New York will continue working with our partners at EDNY USAO to protect our communities at every level.”

On May 31, 2025, while detained pending trial at the MDC for a separate charge for which he was acquitted, a Bureau of Prisons correctional officer conducted a pat-down search of Alston who appeared to be concealing an object in his waistband.  The officer retrieved an 8-inch-long makeshift knife from the waistband of Alston’s pants.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Tara B. McGrath is in charge of the prosecution with the assistance of Paralegal Specialist Amara Padilla.

The Defendant:

JORDAN ALSTON (also known as “Skiito”)
Age:  28
Brooklyn, New York

E.D.N.Y. Docket No. 23-CR-510 (DC)

Earlier today, the U.S. District Court for the Eastern District of New York unsealed a superseding indictment charging Volodymyr Viktorovich Tymoshchuk — also known as deadforz, Boba, msfv, and farnetwork — a Ukrainian national, with serving as an administrator in the LockerGoga, MegaCortex, and Nefilim ransomware schemes.

“Volodymyr Tymoshchuk is charged for his role in ransomware schemes that extorted more than 250 companies across the United States and hundreds more around the world,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “In some instances, these attacks resulted in the complete disruption of business operations until encrypted data could be recovered or restored. This prosecution and today’s rewards announcement reflects our determination to protect businesses from digital sabotage and extortion and to relentlessly pursue the criminals responsible, no matter where they are located.”

“Tymoshchuk is a serial ransomware criminal who targeted blue-chip American companies, health care institutions, and large foreign industrial firms, and threatened to leak their sensitive data online if they refused to pay,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “For a time, the defendant stayed ahead of law enforcement by deploying new strains of malicious software when his old ones were decrypted. Today’s charges reflect international coordination to unmask and charge a dangerous and pervasive ransomware actor who can no longer remain anonymous.”

“Volodymyr Tymoshchuk repeatedly used ransomware attacks to target hundreds of companies in the United States and around the globe in attempts to extort victims,” said Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office. “Today’s announcement should serve as warning, cyber criminals may believe they act with impunity while conducting harmful cyber intrusions, but law enforcement is onto you and will hold you accountable. The FBI along with our law enforcement partners will continue to scour the globe to bring to justice any individual attempting to use the anonymity of the internet to commit crime.”

“The criminals behind Nefilim ransomware may believe they can profit from extortion and data leaks, but they are wrong,” said Special Agent in Charge Christopher J. S. Johnson of the FBI’s Springfield Field Office. “The FBI is actively pursuing them to disrupt their operations and bring them to justice. We urge all organizations to report these attacks immediately — because every report helps us dismantle these networks and ensure cybercriminals are held accountable.”

As alleged in the superseding indictment, between December 2018 and October 2021, Tymoshchuk used the LockerGoga, MegaCortex, and Nefilim ransomware variants to encrypt computer networks in countries around the world, including in the Eastern District of New York, elsewhere in the United States, France, Germany, the Netherlands, Norway, and Switzerland. These ransomware attacks caused millions of dollars of losses, including damage to victim computer systems, remediation costs, and ransomware payments to the perpetrators. In these attacks, the perpetrators typically customized the ransomware executable file (the ransomware file responsible for encryption) for each ransomware victim. The customization allowed the ransomware actors to create a decryption key that could only decrypt the network of the specific victim. If a victim paid the ransom demand, the perpetrators would send a decryption tool, which enabled the victim to decrypt the computer files locked by the ransomware program.

Between July 2019 and June 2020, Tymoshchuk and his co‑conspirators are alleged to have compromised the networks of more than 250 victim companies in the United States and hundreds of other companies around the world with LockerGoga and MegaCortex. However, many of these extortion attempts were unsuccessful because law enforcement often notified victims that their networks had been compromised before Tymoshchuk and his co-conspirators were able to deploy the ransomware. Subsequently, from July 2020 through October 2021, Tymoshchuk is alleged to have been one of the administrators of the Nefilim ransomware strain. Tymoshchuk and the other Nefilim administrators provided other Nefilim ransomware affiliates, including co‑defendant Artem Stryzhak, who was extradited from Spain and faces charges in the Eastern District of New York, with access to the Nefilim ransomware in exchange for 20 percent of the ransom proceeds extorted from Nefilim victims.

In September 2022, as part of an international coordinated effort against LockerGoga and MegaCortex ransomware, decryption keys associated with those ransomware variants were made available to the public via the “No More Ransomware Project,” an initiative to empower ransomware victims to decrypt encrypted computers without paying a ransom. These decryption keys enabled compromised victim companies and institutions to recover data previously encrypted with LockerGoga and MegaCortex ransomware.

Tymoshchuk is charged with two counts of conspiracy to commit fraud and related activity in connection with computers, three counts of intentional damage to a protected computer, one count of unauthorized access to a protected computer, and one count of transmitting a threat to disclose confidential information.

The FBI is investigating this case.

Trial Attorney Brian Z. Mund of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Alexander F. Mindlin and Ellen H. Sise for the Eastern District of New York are prosecuting the case.

The Justice Department’s Office of International Affairs provided critical assistance, as did the FBI’s Legal Attachés, authorities in France, Czech Republic, Germany, Lithuania, Luxembourg, Netherlands, Norway, Switzerland, and Ukraine, and Europol and Eurojust via ICHIP The Hague.

CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.

Concurrent with the unsealing of the superseding indictment, the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program is offering a rewards totaling up to $11 million for information leading to the arrest and/or conviction or location of Tymoshchuk or his conspirators.

Anyone with information on these malicious cyber actors, or associated individuals or entities, should contact the FBI via phone at +1-917-242-1407 or by email at TymoTips@fbi.gov. If you are in the United States, you can also contact your local FBI field office. If outside the United States, you can visit the nearest U.S. embassy. More information about the TOC reward offer is located on the State Department website.

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

BROOKLYN, NY – Earlier today, a superseding indictment was unsealed charging Volodymyr Tymoshchuk, also known as “deadforz,” “Boba,” “msfv,” and “farnetwork,” a Ukrainian national, for his role in international ransomware schemes.  Tymoshchuk is not in U.S. custody.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Christopher Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and FBI Special Agent in Charge Christopher J.S. Johnson, Springfield, Illinois Field Office, announced the superseding indictment.

“Tymoshchuk is a serial ransomware criminal who targeted blue-chip American companies, health care institutions, and large foreign industrial firms, and threatened to leak their sensitive data online if they refused to pay,” stated United States Attorney Nocella.  “For a time, the defendant stayed ahead of law enforcement by deploying new strains of malicious software when his old ones were decrypted. Today’s charges reflect international coordination to unmask and charge a dangerous and pervasive ransomware actor who can no longer remain anonymous.”

“Volodymyr Tymoshchuk is charged for his role in ransomware schemes that extorted more than 250 companies across the United States and hundreds more around the world,” stated Acting Assistant Attorney General Galeotti.  “In some instances, these attacks resulted in the complete disruption of business operations until encrypted data could be recovered or restored. This prosecution and today’s rewards announcement reflects our determination to protect businesses from digital sabotage and extortion and to relentlessly pursue the criminals responsible, no matter where they are located.”

“Volodymyr Tymoshchuk repeatedly used ransomware attacks to target hundreds of companies in the United States and around the globe in attempts to extort victims. Today’s announcement should serve as warning, cyber criminals may believe they act with impunity while conducting harmful cyber intrusions, but law enforcement is onto you and will hold you accountable,” stated FBI Assistant Director in Charge Raia.  “The FBI along with our law enforcement partners will continue to scour the globe to bring to justice any individual attempting to use the anonymity of the internet to commit crime.”

“The criminals behind Nefilim ransomware may believe they can profit from extortion and data leaks, but they are wrong. The FBI is actively pursuing them to disrupt their operations and bring them to justice. We urge all organizations to report these attacks immediately—because every report helps us dismantle these networks and ensure cybercriminals are held accountable,” stated Springfield, Illinois Special Agent in Charge Johnson.

As alleged in the superseding indictment, between December 2018 and October 2021, LockerGoga, MegaCortex, and Nefilim ransomware were used to encrypt computer networks in countries around the world, including against victims in the Eastern District of New York and across the United States, France, Germany, the Netherlands, Norway, and Switzerland.  These ransomware attacks caused tens of millions of dollars of losses, resulting both from damage to victim computer systems and from ransomware payments to the perpetrators.  The ransomware attacks would lock up a victim’s computer files, and only if the victim paid the ransom demand the perpetrators would send a decryption tool that enabled the victim to decrypt and regain access to those files.

The LockerGoga and Mega Cortex Ransomware Variants

Tymoshchuk and his co-conspirators initially gained unauthorized access to victim networks in various ways, including through use of hacking tools to identify security vulnerabilities, perform brute-force password cracking attacks, and retrieve stored password credentials.  At times, the co-conspirators also purchased compromised access credentials to victim networks.  Tymoshchuk and his co-conspirators then used additional hacking tools to explore the victim networks, obtain persistent remote access, move laterally (i.e., access other systems within each computer or network) and escalate privileges (i.e., gain greater authority over the computer or network).

After gaining sufficient access to the victims’ networks, the co-conspirators deployed either LockerGoga or MegaCortex ransomware.  Between approximately July 2019 and June 2020, Tymoshchuk and his co‑conspirators compromised the networks of more than 250 victim companies in the United States and hundreds of other companies around the world.  Many of these extortion attempts failed due to the vigilance of law enforcement officials, who notified victims that their networks had been compromised before Tymoshchuk could deploy ransomware.

In September 2022, as part of an international coordinated effort, decryption keys associated with LockerGoga and MegaCortex ransomware were made available to the public via the “No More Ransomware Project.”  These decryption keys enabled compromised victim companies and institutions to recover data previously encrypted with LockerGoga and MegaCortex ransomware.

The Nefilim Ransomware Variant

From approximately July 2020 through October 2021, Tymoshchuk was one of the administrators of Nefilim ransomware, a “ransomware as a service” enterprise that provided ransomware tools to affiliates in turn for a percentage of the extortionate payments they collected.  Among Tymoshchuk’s affiliates was his co‑defendant Artem Stryzhak, who paid Tymoshchuk 20 percent of the ransom proceeds he collected.  In exchange, Tymoshchuk gave Stryzhak access to the Nefilim ransomware “panel,” an online platform for Nefilim affiliates to access the ransomware.

Tymoshchuk at times described his preferred ransomware targets as companies located in the United States, Canada, or Australia with more than $100 million in annual revenue.  In one exchange with Stryzhak in or about July 2021, Tymoshchuk encouraged him to target companies in these countries with more than $200 million in annual revenue.  Tymoshchuk researched companies to target, using online databases to gather information about the victim companies’ net worth, size, and contact information.

After gaining sufficient access to the victims’ networks, Tymoshchuk and his co-conspirators stole data in furtherance of their scheme to extort ransom payments from them.  Nefilim ransom notes typically threatened the victims that unless they came to an agreement with the ransomware actors, the stolen data would be published on publicly accessible “Corporate Leaks” websites, which were maintained by Nefilim administrators. 

The charges in the superseding indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  Stryzhak, who was extradited from Spain in April 2025 to the Eastern District of New York, is awaiting trial.

Concurrent with the unsealing of the superseding indictment, the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program is offering a reward of up to $11 million for information leading to the leading to the arrest and/or conviction or location of Tymoshchuk or his conspirators.

Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact the FBI via phone at +1-917-242-1407 or by email at TymoTips@fbi.gov.   If you are in the United States, you can also contact the local FBI field office.  If outside the United States, you can visit the nearest U.S. embassy.  More information about this TOC reward offer is located on the State Department website.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Alexander F. Mindlin and Ellen H. Sise, along with Trial Attorney Brian Mund of the Justice Department’s Computer Crime and Intellectual Property Section, are in charge of the prosecution, with assistance from Paralegal Specialist Rebecca Roth. 

The Justice Department’s Office of International Affairs provided critical assistance in this case, as did the FBI’s Legal Attachés abroad and authorities in France, Czech Republic, Germany, Lithuania, Luxembourg, Netherlands, Norway, Romania, Switzerland, and Ukraine, as well as Europol and Eurojust via the Criminal Division’s International Computer Hacking and Intellectual Property (ICHIP) The Hague.

The Defendants:

VOLODYMYR VIKTOROVYCH TYMOSHCHUK (also known as “deadforz,” “Boba,” “msfv,” and “farnetwork”)
Age:  28
Kiev, Ukraine

ARTEM ALEKSANDROVYCH STRYZHAK
Age: 35
Barcelona, Spain

E.D.N.Y. Docket No. 23-CR-324 (PKC)

Earlier today, in federal court in Central Islip, Elias Ghanem II, who previously resided in Las Vegas, Nevada, was sentenced by United States District Judge Gary R. Brown to 84 months’ imprisonment for engaging in a fraudulent scheme to solicit investments in purported cannabis and restaurant entities and defrauding investors of approximately $1.4 million.  The Court also ordered Ghanem to pay approximately $1.4 million in restitution to the victims of his crimes.  Ghanem pleaded guilty to wire fraud in February 2025.

The sentence was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).

“Today, the defendant received just punishment for defrauding more than a dozen investors, including a retired law enforcement officer whose arm was amputated due to gunshot wounds,” stated United States Attorney Nocella.  “Our Office and our law enforcement partners will continue to pursue justice for victims of financial crime who fall prey to individuals like Ghanem who advance their greedy desires at the expense of others.”

“Elias Ghanem shamelessly stole more than one million dollars from investors of his companies to fund personal purchases,” stated FBI Assistant Director in Charge Raia.  “Ghanem prioritized selfish greed and preyed on the wallets of his victims.  The FBI will never tolerate any individual who utilizes lies and deceit to enrich themselves.”

According to court filings and the defendant’s admissions, between approximately September 2018 through October 2019, Ghanem solicited approximately $1 million from investors in Viva Capital Ventures, LLC (Viva), a purported cannabis distribution and manufacturing company that Ghanem claimed to operate.  One of Ghanem’s Viva investors was a retired police officer who invested around $280,000 he received after he was shot multiple times during an armored car robbery, which led to his arm being amputated.  Although Ghanem told the Viva investors that he would use their monies for business-related expenses such as those related to applications for cannabis distribution licenses in various states,  Ghanem never applied for such licenses and instead diverted nearly  $1 million to fund a lavish lifestyle, including the purchase of a luxury waterfront home in Babylon, New York, and for personal expenses, including the partial repayment of a personal loan, and payments of restitution obligations that were imposed to resolve prior criminal charges against him in Nevada.   

In a second scheme, Ghanem solicited approximately $400,000 from investors in the Friends and Family Hospitality Group (FFHG), a purported restaurant entity that Ghanem claimed he operated.  Although Ghanem told the investors that he would use their funds to finance the establishment of a New York City restaurant, he instead used approximately $200,000 to purchase jewelry and lease a Florida condominium.  In response to demands for repayment, Ghanem issued one of the FFHG investors a series of checks that bounced for insufficient funds. 

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Bradley T. King and Andrew Wang are in charge of the prosecution, with assistance from Paralegal Specialist Samantha Schroder and Legal Assistant Danielle Casey.

The Defendant:

ELIAS GHANEM II
Age:  38
Las Vegas, Nevada

E.D.N.Y. Docket No. 22-CR-520 (S-1) (GRB)

BROOKLYN, NY – Andrey Shevlyakov was arraigned this afternoon before United States Magistrate Judge Peggy Kuo at the federal courthouse in Brooklyn.  He is charged in an indictment with conspiracy and seventeen other counts related to an international procurement scheme to source U.S.-made electronics and technology for the Russian government and military. Shevlyakov, an Estonian national, was arrested in Estonia on a provisional arrest warrant issued from the Eastern District of New York.  He was extradited from Estonia to the United States on August 28, 2025.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg, Assistant Attorney General for the National Security Division; Douglas A. Williams, Jr., Special Agent in Charge, FBI Houston; and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the extradition.

“As alleged, the defendant supplied the Russian military with sophisticated electronics after misleading U.S. companies,” stated United States Attorney Nocella.  “Our Office and our law enforcement partners will continue to use every tool at our disposal to disrupt Russia’s illegal procurement of U.S. technology that threatens our national security and the security of our allies.”

Mr. Nocella expressed his appreciation to the Department of Justice’s Office of International Affairs and the Estonian Internal Security Service (KAPO) for their valuable assistance in securing the arrest and extradition of Shevlyakov.

“We welcome Mr. Shevlyakov to the United States to face justice,” stated Special Agent in Charge Williams.  “His illegal acquisition of U.S. semiconductor technology on behalf of the Russian military endangered U.S. national security, which the FBI fights so hard to protect.  This case highlights Russia’s willingness to break U.S. laws to modernize its military and weapon systems with U.S. technology.  We’re grateful to all our international partners who made Shevlyakov’s capture and extradition possible."

As alleged in the indictment and other public court filings, the defendant engaged in a years-long effort to evade U.S. export controls.  His scheme involved procuring and delivering sensitive U.S. technology to end-users in Russia, including defense contractors and Russian government agencies.  The defendant was added to the U.S Department of Commerce, Bureau of Industry and Security’s entity list, meaning that he was prohibited from acquiring any items from the United States without permission from the Department of Commerce.  To evade these prohibitions, the defendant used a series of shell companies to order electronics and other items from U.S.-based suppliers.  He also misled U.S. suppliers about the ultimate destination for the sensitive electronics they provided to him.

Over the course of his scheme, the defendant procured hundreds of thousands of dollars’ worth of sensitive electronics. The items acquired by the defendant included low-noise pre-scalers and synthesizers used to conduct high-frequency communications.  He also obtained analog-to-digital converters which are used in defense systems including avionics, missiles, and electronic warfare systems.  The defendant communicated with Russian defense contractors and telecommunication companies about these sensitive items.  He also traveled extensively between Russia and Estonia to deliver the items he had obtained.

On one occasion, the defendant was caught smuggling goods into Russia by customs authorities in Finland.  When stopped at the Russian border, the defendant’s car was searched and authorities found electronics and semiconductors dispersed among groceries and luggage and hidden in several other places, including the car’s spare tire compartment.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Alexander Mindlin and Gilbert M. Rein are in charge of the prosecution, along with Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section. 

The Defendant:

ANDREY SHEVLYAKOV
Age: 48
Tallinn, Estonia

E.D.N.Y. Docket No. 22-CR-490 (RPK)

Earlier today, in federal court in Brooklyn, Ashraf Omar Eldarir was sentenced by United States District Judge Rachel P. Kovner to six months in prison for smuggling Egyptian antiquities into the United States through John F. Kennedy International Airport.  During the course of this investigation, more than 600 Egyptian artifacts were recovered after having been smuggled through Eldadir’s smuggling network.  Eldarir previously pleaded guilty in February 2025 to four counts of smuggling.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI); and Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the sentence.

“The defendant looted Egypt’s cultural treasures and lied to U.S. Customs about them as part of a web of deception he spun to illegally fill his pockets with cash,” stated United States Attorney Nocella.  “Those who steal cultural treasures of other countries and smuggle them into the United States should know that they will be held accountable for their crimes.  We commend our HSI and CBP partners for their diligent and important work in this case and look forward to repatriating to Egypt the recovered antiquities.”

“Safeguarding cultural heritage is an often-overlooked yet important aspect of border security, as smugglers frequently exploit similar vulnerabilities to transport stolen artifacts and other illicit goods,” stated CBP Director of Field Operations Russo.  “In this case, the profit-driven defendant lied during border inspection to conceal priceless antiquities, but the vigilance of CBP officers uncovered the truth.  Every day, our officers work tirelessly to protect both our security and the cultural heritage of nations worldwide, and while doing so, uncover other sophisticated smuggling plots.  Strong partnerships with agencies like HSI and the U.S. Attorney’s Office are critical to this mission, and CBP remains committed to preserving history while enforcing the law.”

As set forth in the indictment and in other court filings, Eldarir was a prolific trafficker of ancient Egyptian artifacts.  On at least four separate occasions from April 2019 to January 22, 2020, Eldarir smuggled ancient Egyptian artifacts into the United States.  Each time, Eldarir used fake provenances to sell those artifacts at U.S.-based auction houses.  Provenances are documents reflecting the history of ownership and custody of artifacts, which are used to establish that the artifacts are genuine and that they were not illegally excavated or stolen.

On January 22, 2020, Eldarir, travelling from Egypt, arrived at JFK Airport and falsely declared to CBP that he was carrying goods valued at only $300.  When CBP officers opened Eldarir’s three checked suitcases, they found the suitcases filled with 590 valuable artifacts that were bubble and foam-wrapped.  When the wrapping was opened, loose sand and dirt spilled out of the packaging, indicating that the artifacts had been recently excavated.  Among the items recovered by law enforcement officers were gold amulets from a funerary set and wooden tomb model figures with linen garments dating to approximately 1900 BCE.  Eldarir was also in possession of a kit of materials used to fabricate documentation for the stolen items.  Further investigation following Eldarir’s arrest at JFK Airport led to the recovery of additional illegally imported artifacts that have since been forfeited, along with the 590 artifacts seized at the time of Eldarir’s arrest.

Assistant United States  Attorneys William P. Campos and Nomi Berenson are in charge of the prosecution with the assistance of Paralegal Specialist Amara Padilla.  Assistant U.S. Attorney Laura D. Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

ASHRAF OMAR ELDARIR
Age:  52
Brooklyn, NY

E.D.N.Y. Docket No. 20-CR-243 (S-2) (RPK)

Juan Amaya-Ramirez, also known as “Cadaver,” an associate of the La Mara Salvatrucha, also known as “MS-13,” a transnational criminal organization, was sentenced yesterday, in federal court in Brooklyn, by United States District Judge LaShann DeArcy Hall to 45 years in prison for his role in the April 23, 2018 murder of 17-year-old Andy Peralta in Kissena Park in Queens, New York.  Amaya-Ramirez and co-defendant Oscar Flores-Mejia, also known as “Chamuco,” who is also an associate of the MS-13 gang, pleaded guilty to the murder in September 2024.  Flores-Mejia is awaiting sentencing.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation (FBI), and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI) announced the sentence.

“The senselessness of this murder is matched only by its brutality,” said United States Attorney Nocella.  “The defendants lured Andy Peralta to a secluded part of Kissena park where they beat him mercilessly before Amaya-Ramirez choked him to death and Flores-Mejia hacked him with a knife.  The murder of this young victim is a chilling reminder of MS-13’s callous disregard for human life.  Bringing those who commit violent crimes to justice is one of our Office’s highest priorities.”

“Juan Amaya-Ramriez, an MS-13 associate, brutally attacked and murdered Andy Peralta out of senseless retaliation,” stated FBI Assistant Director in Charge Raia.  “The defendant unjustly sentenced Peralta to a horrific death due to a false perception of his status as a rival.  The FBI continues to make significant strides throughout Operation Summer Heat to hold accountable gang members maliciously acting as the judge, jury, and executioner to promote their operations.”

“For far too long, senseless gang violence has plagued our neighborhoods and devastated families,” stated HSI Special Agent in Charge Patel.  “Andy Peralta was viciously beaten, stabbed, and strangled to death by savages whose sentences now reflect the seriousness of their crimes.  Together with our law enforcement partners, HSI New York will not stand by as our streets are overrun by violent gang members.  The eradication of gang violence on Long Island and throughout the state remains an utmost priority for HSI New York and our law enforcement partners.”

As proved at a hearing in connection with codefendant Leyla Carranza’s sentencing, the defendants sought to murder Peralta because they believed he was associated with the 18th Street gang, an MS-13 rival. Flores-Mejia found a video online that depicted Peralta, who the defendants did not know, briefly flashing a sign associated with the 18th Street gang.  This was enough in the defendants’ eyes to mark him for death.  Flores-Mejia recruited a 16-year-old boy to help kill Peralta, and Amaya-Ramirez’s then-girlfriend Leyla Carranza was recruited to befriend Peralta and lure him to his death in the park.

The day of the murder, Flores-Mejia bought black winter gloves to be used in the attack and carried a knife.  Carranza messaged Peralta and then took him to a predetermined location in Kissena Park.  Amaya-Ramirez, Flores-Mejia and their 16-year-old accomplice were waiting. Flores-Mejia gave a signal, and the men attacked Peralta.  They beat Peralta until they were exhausted.  Peralta got up, but Flores-Mejia kicked Peralta down.  Amaya-Ramirez then began strangling Peralta while Flores-Mejia was stomping on his head.  Peralta begged for his life and called out for his mother and father.  Flores-Mejia put dirt in his mouth to silence him and Amaya-Ramirez choked him to death.  Flores-Mejia then stabbed Peralta in the back and slashed his tattoo of his girlfriend’s name.

The men then took a photograph of themselves posing over Peralta’s lifeless body and flashing MS-13 hand signs.  They then stole Peralta’s money and dragged his body to a small body of water, where he was found the following day.

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

The government’s case is being handled by the Office’s Organized Crime & Gangs Section.  Assistant United States Attorneys Nadia E. Moore, Jonathan Siegel, and Anna L. Karamigios are in charge of the prosecution.   

The Defendant:

JUAN AMAYA-RAMIREZ (also known as “Cadaver”)
Age: 27
Fresh Meadows, Queens

Defendant Awaiting Sentencing:

OSCAR FLORES-MEJIA (also known as “Chamuco”)
Age: 25
Elmhurst, Queens

Defendant Previously Sentenced:

LEYLA CARRANZA
Age: 24
Richmond, Virginia

E.D.N.Y. Docket No. 20-CR-228 (LDH)

Earlier today, in federal court in Brooklyn, Enrico Carini, also known as “Ed,” pleaded guilty to conspiracy to commit securities fraud and investment adviser fraud in connection with his role in a multi-million dollar investment fraud scheme.  Co-defendant Caner Otar, also known as “John,” pleaded guilty to conspiracy to commit securities fraud on August 25, 2025 in connection with his role in the same scheme.  Both proceedings were held before United States District Judge Carol B. Amon. When sentenced, Carini faces a maximum sentence of 10 years’ imprisonment, restitution, and forfeiture of cash and assets collectively valued at more than $430,000, including several luxury watches.  Otar faces a maximum sentence of five years’ imprisonment, restitution, and $400,000 in forfeiture.  

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.

“Protecting investors from fraudulent schemes is a core mission of our Office,” stated United States Attorney Nocella.  “These defendants used a series of lies to entice unsuspecting investors, and to enrich themselves and their co-conspirators along the way.  As demonstrated by these guilty pleas, our Office will uncover and vigorously prosecute fraudulent schemes that undermine the market for private securities.”

Mr. Nocella expressed his appreciation to the Securities and Exchange Commission (SEC), Washington, D.C. Home Office, for its significant cooperation and assistance during the investigation.

“Carini, Otar, and others at Max Infinity swindled more than $60 million from investors to divert towards personal finances,” stated FBI Assistant Director in Charge Raia.  “Along with other conspirators, these defendants actively manipulated their clients through rehearsed lies of reassurances and success to generate an unlawful investment stream.  The FBI remains determined to protect the integrity of our city’s economic infrastructure and investors from fraudulent tactics.”

As set forth in court filings and facts presented during the plea hearing, Carini and Otar were sales team leaders for Max Infinity Management LLC, Elder Fund Management LLC, and a related series of funds (Max Infinity).  Max Infinity wasa New York City-based manager of investment funds that purported to buy and sell stock issued by privately held companies that anticipated an initial public offering (IPO), including well-known companies like Stripe, Chime, Instacart, and Flexport. Carini and Otar made numerous misstatements to Max Infinity investors, including by falsely representing that they did not make money on investments until investors profited, when in fact they received commissions on each investment they solicited.  Carini and Otar also falsely represented to investors that the company and its investment funds were registered with the SEC.  Along with other company salespeople, Carini and Otar utilized scripts that falsely assured investors that the firm had an impressive track record of success in prior IPO deals when, in reality, Max Infinity had no such previous investments.  In total, Max Infinity raised more than $60 million from investors through false and misleading promises and high-pressure sales tactics.

Charges against Carini and Otar’s co-defendants remain pending.  Trial for the co-defendants is scheduled for January 12, 2026.  They are presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorneys Sarah M. Evans, Eric Silverberg, Lorena Michelen, and Nicholas M. Axelrod are in charge of the prosecution, with assistance from Paralegal Specialists Liam McNett and Timothy Migliaro.

Defendants Who Pleaded Guilty:

ENRICO CARINI (also known as “Ed”)
Age: 40
Staten Island, New York

CANER OTAR (also known as “John”)
Age: 38
Brooklyn, New York

Co-Defendants Awaiting Trial:

JOHN CANGIALOSI
Age:  44
Manalapan, New Jersey

PETER GIRGIS
Age: 44
Staten Island, New York

GENE SARABELLA (also known as “Jerry”)
Age: 37
Monroe, New Jersey

E.D.N.Y. Docket No. 24-CR-363 (CBA)

BROOKLYN, NY — Ismael Zambada Garcia, also known as “El Mayo,” pleaded guilty today to being a principal leader of a continuing criminal enterprise — the Sinaloa Cartel (the Cartel), one of the most violent and powerful drug trafficking organizations in the world — in addition to Racketeer Influenced and Corrupt Organizations (RICO) charges.  Today’s proceeding was held before United States District Judge Brian M. Cogan.

When sentenced, Zambada Garcia will face a mandatory minimum term of life in prison without the possibility of parole for leading a continuing criminal enterprise, and up to life imprisonment without the possibility of parole on the RICO count.  As part of the plea agreement, Zambada Garcia also agreed to the entry of a $15 billion forfeiture money judgment.

Zambada Garcia was previously charged by indictments filed in the Eastern District of New York, United States v. Zambada Garcia, et al., 09-CR-466 (EDNY) (the “EDNY/SDFL/NDDS Indictment”) and in the Western District of Texas, United States v. Zambada Garcia, et al., 12-CR-849 (WDTX) (“the WDTX Indictment”), as well as in the District of Columbia (03-CR-34; 03-CR-331 (DDC)); the Northern District of Illinois (09-CR-383 (NDIL)); the Southern District of California (14-CR-658 (SDCA)); and the Central District of California (15-CR-566 (CDCA)). 

The plea to the charges in the EDNY/SDFL/NDDS Indictment are the result of a joint prosecution by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division.

Pursuant to a plea agreement, Zambada Garcia agreed to the transfer of the WDTX Indictment for plea and sentencing in the Eastern District of New York.  Zambada Garcia will thus be held accountable in the Eastern District of New York for the criminal conduct in both indictments.  The remaining indictments will be dismissed at the time of sentencing.

The EDNY/SDFL/NDDS Indictment charged Zambada Garcia with, among other things, being a principal leader of a continuing criminal enterprise, in violation of 21 U.S.C. § 848, from January 1989 through January 2024.  The WDTX Indictment charged Zambada Garcia with, among other things, RICO conspiracy for his participation in money laundering, murder and drug conspiracies, and violations of state law for murder and kidnapping for conduct between January 1, 2000 through April 11, 2012.

Zambada Garcia’s rise to power began with the Cartel’s inception and ended with his arrest in July 2024.  Previously known as the Mexican Federation, the Cartel is a drug trafficking organization based in Sinaloa, Mexico, that has since approximately the late 1980s imported lethal quantities of narcotics—including, among others, cocaine, heroin, methamphetamine, and fentanyl—into the United States and laundered billions of dollars in drug proceeds back to Mexico. 

The Cartel’s operations initially focused on cocaine distribution based on cooperative arrangements and close coordination with South American sources of supply and distribution networks.  This changed in the 2000s when the Colombians, seeing increased law enforcement activity, started to abandon their United States distribution businesses in favor of permitting Mexican traffickers to invest in cocaine shipments at wholesale prices, which those Mexican traffickers would then distribute in the United States.  As a result, Mexican traffickers and the Cartel began to take a more integral role in moving cocaine from Colombia into and throughout the United States.  Under Zambada Garcia’s leadership, the Cartel also recently branched out into the production and trafficking of fentanyl, including by purchasing fentanyl precursor chemicals from Chinese companies and producing many thousands of kilograms of fentanyl in laboratories both in rural areas and major cities in Mexico for distribution in the United States. 

Ever since the Cartel’s expansion into the United States, its distribution networks have also supported money laundering efforts that have delivered billions of dollars in illegal profits generated from drugs sales in the United States back to the Cartel.  Increased profits allowed the Cartel’s operations to grow a large-scale narcotics transportation network involving the use of land, air, and sea transportation assets, which eventually led to the Cartel shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States.

Zambada Garcia has devoted his efforts over decades to growing, increasing, and enhancing the power of the Cartel—and his individual power and position in the Cartel after his partner Joaquin “El Chapo” Guzman was captured.  Under the defendant’s leadership, the Cartel has regularly used brutal violence, intimidation, and murder to silence potential witnesses and dissuade law enforcement from performing its duties.  The defendant has operated with impunity at the highest levels of the Mexican drug trafficking world while being assured of his continued success and safety from arrest through his payment of bribes to foreign government officials and law enforcement officers.  He controlled those corrupt officials and officers who protected his workers and drug shipments as his drugs were transported across Mexico and into the United States.  Numerous witnesses have testified, including at trials held in the Eastern District of New York of El Chapo and corrupt former Mexican Secretary of Public Security Genaro García Luna, that corruption at all levels was necessary to allow the defendant’s criminal enterprise to function so effectively at such a large scale: from local police officers who escorted the drugs through Mexico, to corrupt officials who informed the Cartel of military actions, thwarted capture operations, and consulted with the Cartel about proceedings and investigations against it.

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Acting Assistant Attorney General for the Criminal Division; Terrance C. Cole, Administrator, U.S. Drug Enforcement Administration (DEA); Todd M. Lyons, Acting Director, U.S. Immigration and Customs Enforcement (ICE); Kash Patel, Director, Federal Bureau of Investigation (FBI); Jason A. Reding Quiñones, United States Attorney for the Southern District of Florida; and Justin R. Simmons, United States Attorney for the Western District of Texas, announced the guilty plea.

“This foreign terrorist committed horrific crimes against the American people — he will now pay for those crimes by spending the rest of his life behind bars in an American prison.  Today marks a crucial victory in President Trump’s ongoing fight to completely eliminate foreign terrorist organizations and protect American citizens from deadly drugs and violence,” stated Attorney General Pamela Bondi.

“With today’s guilty pleas, “El Mayo” Zambada Garcia and “El Chapo” Guzman, the two co-founders of the Sinaloa Cartel—one of the largest, most violent and most destructive cartels in history—will live out the rest of their days in United States federal prison cells without the possibility of parole,” stated United States Attorney for the Eastern District of New York Joseph Nocella.  “Zambada Garcia has now been held accountable for the tons of illegal narcotics, including cocaine and fentanyl, that he and his organization trafficked for decades, and the murders and other acts of violence committed in furtherance of that enterprise.  Today’s guilty plea were possible because of the work of law enforcement personnel in the United States, Mexico and elsewhere.  We hope that their hard work and the pleas can provide a measure of solace to the countless victims of Zambada Garcia’s narcotics trafficking and violence and their families.” 

“For decades, under El Mayo’s leadership, the Sinaloa Cartel made billions of dollars by importing poisonous drugs to the United States, flooding our streets with cocaine, heroin, and fentanyl,” stated Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division.  “With El Mayo’s conviction, the Department has now brought both founders of the Sinaloa Cartel to justice, and the growing list of international cartel leaders that have faced justice in American courtrooms sends an unequivocal message to those who seek to fill their shoes that the same fate awaits them if they do.  Today’s guilty plea is a credit to the collaboration between the Criminal Division’s Narcotic and Dangerous Drug Section; the U.S. Attorney’s Offices for the Eastern District of New York, Southern District of Florida, and the Western District of Texas; and our law enforcement partners.” 

“Ismael ‘El Mayo’ Zambada led one of the world’s deadliest cartels, pumping fentanyl, cocaine, heroin, and meth into our communities,” stated DEA Administrator Terrance Cole.  “His guilty plea proves no cartel boss is beyond the reach of justice.  By taking him down, we are protecting American families and cutting off a pipeline of poison.  DEA and our partners will not stop until every cartel network is dismantled.”

“After years of painstaking work, ICE’s Homeland Security Investigations New York secured a superseding indictment last year charging Ismael Zambada with fentanyl trafficking,” stated Actingng ICE Director Todd M. Lyons.  “Now, one of the world’s most prolific and dangerous drug traffickers is going to face justice for the lives he’s stolen and the illicit profits he’s raked in.  This is more than a win for HSI.  It’s a win for the American people.”

“Today’s plea is a proud moment for the FBI and its partners as the founders of a notoriously violent drug trafficking organization, one that engages in an array of illegal activity including murder and corruption, face the consequences of their actions,” stated FBI Director Kash Patel.  “Our work does not end here.  We will continue to relentlessly leverage everything at our disposal in our efforts to thwart the Sinaloa Cartel and put an end to their drug trafficking operations and the carnage that goes along with it.”

“After years of evading justice, Zambada Garcia has been brought to account.  With his conviction, his reign of violence and terror is over,” stated U.S. Attorney Jason A. Reding Quiñones.  “He will never again direct a cartel that fueled addiction, spread violence, and tore apart families and communities on both sides of our border.  This outcome was made possible by the tireless work of our law enforcement partners in the United States and abroad, whose courage and persistence dismantled the Sinaloa Cartel’s operations and delivered long-overdue justice to its victims.”

“For decades, the Western District of Texas has been on the front lines in the fight against the Sinaloa Cartel,” stated United States Attorney for the Western District of Texas Justin R. Simmons.  “Under Zambada Garcia’s leadership, the Sinaloa Cartel produced and trafficked thousands of kilograms of narcotics through our border, effectively infiltrating every city in our country, leading to thousands of deaths in our communities, imprisoning millions within the grey walls of addiction, and enriching himself in the process.  Under Zambada Garcia’s leadership, the Sinaloa Cartel engaged in a years-long war with the Juarez Cartel, a war which directly affected not just the citizens of Juarez, Mexico, but also the citizens of El Paso, Texas, with multiple residents, including at least one U.S. citizen, being kidnapped, tortured, and killed by Sinaloa Cartel members. Now, like his co-conspirator El Chapo Guzman, Zambada Garcia will pay the price for a life of lawlessness, and using the ‘whole of government’ approach employed in this case, we will continue to systematically eradicate Mexican drug cartels and bring others to justice who enrich themselves to the detriment of Americans.”

“For decades, under El Mayo’s leadership, the Sinaloa Cartel made billions of dollars by importing poisonous drugs to the United States, flooding our streets with cocaine, heroin, and fentanyl,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division.  “With El Mayo’s conviction, the Department has now brought both founders of the Sinaloa Cartel to justice, and the growing list of international cartel leaders that have faced justice in American courtrooms sends an unequivocal message to those who seek to fill their shoes that the same fate awaits them if they do.  Today’s guilty plea is a credit to the collaboration between the Criminal Division’s Narcotic and Dangerous Drug Section; the U.S. Attorney’s Offices for the Eastern District of New York, Southern District of Florida, and the Western District of Texas; and our law enforcement partners.” 

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, and as part of the work of the Office’s Transnational Criminal Organizations Strike Force. Assistant United States Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, Lauren A. Bowman and Rebecca M. Urquiola are leading the prosecution for the Eastern District of New York.  Assistant United States Attorneys Andrea Goldbarg and Monique Botero of the Southern District of Florida and Assistant United States Attorneys Antonio Franco and Kyle Myers of the Western District of Texas are leading the prosecution for their respective offices.  Trial Attorneys Jayce Born and Kirk Handrich are leading the prosecution for the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, and Southern District of California provided substantial assistance.  FBI, HSI, and DEA investigated the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.  Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The Defendant:

Ismael Zambada Garcia (also known as “El Mayo”)
Age:  75
Mexico

E.D.N.Y. Docket Nos. 09-CR-466 (BMC) (S-5)

                                       25-CR-262 (BMC)   

Earlier today, at the federal courthouse in Brooklyn, Alejandro F. Santos was arraigned on an indictment charging him with transportation of child pornography and possession of child pornography.  Santos was arrested on a complaint in July 2025.  At the time of his arrest, Santos was employed by the New York City Department of Education as a teacher’s aide at a public school in the Bronx for children with disabilities.  Today’s proceeding was held before United States Magistrate Judge Vera M. Scanlon. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Francis J. Russo, Director of New York Field Operations, U.S. Customs and Border Patrol (CBP), announced the charges. 

“The defendant, who held a position of trust as a teacher’s aide in a New York City elementary school, is charged with possessing photos and videos depicting horrific sexual abuse of children,” stated United States Attorney Nocella. “Our Office is committed to identifying and prosecuting individuals like the defendant who possess such images, which contribute to the depraved market for child pornography and the victimization of vulnerable minors.”

“The details of Alejandro Santos’ alleged crimes are among every parent’s worst nightmare. This defendant worked closely with young kids nearly every day over the course of 23 years. Protecting minors from individuals like this defendant is not only paramount, it’s personal. I implore any person who believes they have information related to crimes involving Santos to contact authorities as soon as possible,” stated HSI New York Special Agent in Charge Patel.

“This case underscores the vital role CBP plays in identifying potential criminal activity during border inspections,” stated CBP Director Russo. “Our officers are dedicated to protecting the public, safeguarding our children from exploitation, and collaborating with partner agencies to ensure thorough investigations are conducted.”

As alleged in court filings, on July 15, 2025, Santos arrived at John F. Kennedy International Airport on a flight from the Dominican Republic. While proceeding through customs, Santos was stopped by U.S. Customs and Border Protection officers pursuant to a law enforcement alert based on information that the defendant was likely in possession of child sex abuse material.  Santos was escorted to an inspection area and provided the officers with his iPhone.  A subsequent examination of that phone revealed thousands of photographs, videos and other files depicting the sexual exploitation of children, including infants and toddlers.  Santos has worked for the New York City Department of Education for 23 years.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of transporting of child sexual abuse material, Santos faces a mandatory minimum sentence of five years’ imprisonment and maximum sentence of 20 years’ imprisonment. 

Anyone with information about criminality involving the defendant should contact HSI New York at hsinyhumanexploitation@hsi.dhs.gov

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

The Defendant:

ALEJANDRO F. SANTOS
Age: 47
Bronx, New York

E.D.N.Y. Docket No. 25-CR-258 (NRM)

Earlier today, in federal courthouse in Central Islip, Anthony Pangallo, a previously convicted sex offender, pleaded guilty to sexual exploitation of a child and, during the plea hearing, admitted to soliciting and receiving sexually explicit images and videos from four young female victims.  The proceeding was held before United States District Judge Joanna Seybert.  When sentenced, Pangallo faces a mandatory minimum sentence of 25 years’ imprisonment and up to 50 years in prison.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea.

“Our Office will continue its relentless pursuit of sexual predators who target minors, and work to secure lengthy prison sentences to protect the public and vulnerable children from these depraved individuals,” stated U.S. Attorney Nocella.  “This defendant’s conduct was especially abhorrent because, despite being a registered sex offender following a prior state conviction, he continued to target multiple young victims.”

Mr. Nocella expressed his appreciation to the New York City Police Department, the Westport Police Department and the Connecticut State’s Attorney’s Office, Stamford/Norwalk Judicial District.

“Anthony Pangallo pretended to be a teenager to gain the trust of prepubescent girls before sexually grooming and forcing elicit explicit content from them. As a registered sex offender, Pangallo has continued to repeatedly exploit and abuse minors to fulfill his own perverted desires,” stated FBI Assistant Director in Charge Raia.  “The FBI maintains its steadfast commitment to protect our community’s vulnerable populations from sexual predators.”

As set forth in court filings and statements during today’s plea proceeding, Pangallo was initially arrested on May 20, 2021, at his residence in Rego Park, New York, on state charges filed in Westport, Connecticut.  The Connecticut charges, which remain pending, involved a 15-year-old female victim, who Pangallo met online and manipulated into sending him sexually explicit images of herself.  Subsequent investigation, which included a lawful search of Pangallo’s cellphone, revealed numerous online communications with other minor females from whom the defendant solicited sexually explicit images. Specifically, four children from Long Island—a 12-year-old and three 13-year-olds—were identified as victims, leading to the federal charges in this case.  During his communications with these minors, Pangallo pretended to be a teenager, manipulated the victims into believing that they were in a relationship together, and then pressured them into sending him sexually explicit images and videos of themselves.  At the time that he committed these crimes, Pangallo was registered as a sex offender due to a prior conviction in August 2009 for sexual assault of a minor in Atlantic City, New Jersey.

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

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

The Defendant:

ANTHONY PANGALLO
Age:  41
Rego Park, Queens

E.D.N.Y. Docket No. 23-CR-233 (S-1)(JS)

BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, an eight-count indictment was unsealed charging Maxim Larin for his involvement in a scheme to illegally export weapons parts and accessories from the United States to other countries, including Kazakhstan, which serve as transshipment points for materials destined for Russia.  The indictment charges Larin with conspiracy to defraud the United States, conspiracy to violate the Export Control Reform Act, conspiracy to violate the Arms Export Control Act, attempted violation of the Arms Export Control Act, smuggling goods from the United States, and submission of false export information. Larin was arrested this morning in Plantation, Florida and made his initial appearance in federal court in Miami. He will be arraigned in the Eastern District of New York at a later date.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, John A. Eisenberg, Assistant Attorney General for the Justice Department’s National Security Division, Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement (OEE), Bureau of Industry and Security, New York Field Office, announced the arrest and charges.

“As alleged, Larin agreed to illegally ship export-controlled weapons parts and accessories, including a sophisticated target acquisition system, to Kazakhstan, a known transshipment location for equipment bound for Russia.  He lied on export documents and intentionally misrepresented and concealed the true nature of the materials he was shipping,” stated United States Attorney Nocella. “My Office will vigorously prosecute efforts to evade U.S. export regulations which threaten our national security and the security of our allies while benefitting Russia.  We will continue to use every tool at our disposal to hold accountable those individuals who place their own interests above those of our nation and its security.”

Mr. Nocella expressed his appreciation to the Department of Defense Criminal Investigative Service, U.S. Attorney’s Office for the Southern District of Florida, HSI’s Miami Field Office, United States Postal Service Office of Inspector General, and U.S. Customs and Border Protection for their valuable assistance.

“Maxim Larin is accused of shipping weapons, parts and tactical accessories to countries that serve as pipelines for artillery destined for the Russian battlefield. He allegedly violated export control, willingly mislabeled packaging and labeling, and further utilized deceptive practices to hide the contents of firearms parcels. Make no mistake: this unlawful activity would have persisted if not for the collaborative law enforcement efforts that led to today's charges,” stated HSI New York Special Agent in Charge Patel. “HSI New York remains committed to utilizing our unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws and in turn threaten public safety and national security.”

“As set forth in the charging documents, Larin conspired to unlawfully export weapons components, including an advanced target acquisition system, to Kazakhstan, a known diversion hub,” stated OEE Special Agent in Charge Carson.  “He further sought to conceal the nature of the shipment by falsifying export records. The Bureau of Industry and Security, together with our law enforcement partners, will continue to vigorously enforce U.S. export control laws, protect our national security, and bring to justice those who attempt to violate them.”

As alleged in the indictment and other public filings, Larin is the owner of several U.S. based companies which sell firearms parts and accessories.  Larin used his companies to sell export-controlled weapons parts and accessories to a co-defendant based in Russia.  Larin agreed to ship the items to Kazakhstan in violation of U.S. export control laws which restrict the export of certain items deemed detrimental to U.S. foreign policy or national security.  Beginning as early as December 2022, Larin agreed with his Russia-based co-defendant to undervalue and mislabel the contents of the materials he was exporting.  He also suggested that certain steps be taken to hide the contents of the parcels he was shipping from U.S. authorities.  For example, in approximately December 2022, Larin emailed the co-defendant warning him about parcels with images of “soldiers on the packaging. It may be a red flag for the customs if they open it.”  Larin further asked his co-defendant “Would you like us to remove the package boxes, or take a risk with the customs?”

In approximately May 2023, Larin agreed to ship enhanced firearms triggers and charging handles to Kazakhstan at the request of his co-defendant.  These items were all subject to export controls and could not be shipped to Kazakhstan without an export license from the U.S. Department of Commerce. Nevertheless, Larin agreed to ship the items and asked the co-defendant in Russia how he would like the items declared. In response, the co-defendant asked Larin to label the package as containing clothing, tools, and a light switch. Larin shipped the parcel and mislabeled its contents.

In approximately December 2023, Larin agreed to acquire a Rapid Targeting and Ranging Module (“Raptar”) target acquisition device on behalf of the co-defendant.  The Raptar is a firearms accessory which assists its users in acquiring targets at long ranges.  It is subject to the International Traffic in Arms Regulations (“ITAR”) and cannot be shipped outside of the United States without a license from the U.S. Department of State.  After acquiring the Raptar, Larin agreed to ship the device to a co-conspirator in the United States who then attempted to ship it to Kazakhstan in violation of the ITAR. The device was intercepted and seized by HSI in California.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States  Attorneys Gilbert M. Rein and David I. Berman are in charge of the prosecution, along with Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section.

The Defendant:

MAXIM LARIN
Age:  43
Plantation, Florida

E.D.N.Y. Docket No. 25-CR-246 (NRM)

Earlier today, at the federal courthouse in Brooklyn, Jaquell Blackwell pleaded guilty to carjacking.  His co-defendant, Abdoul Azika, previously pleaded guilty to carjacking on July 9, 2025.  Both proceedings were held before United States District Judge Allyne R. Ross. When sentenced, the defendants each face up to 15 years in prison.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI,) announced the guilty pleas.

“Blackwell and Azika, wielding weapons and threats of grievous harm, forced their victims to give up their vehicles and instilled terror in their communities,” stated United States Attorney Nocella.  “They will now be held accountable for their crimes, and our Office will continue to work tirelessly with our law enforcement partners to eradicate gangs responsible for violent crime.”

Mr. Nocella expressed his appreciation to the Nassau County Police Department for their assistance on the case.

“Jaquell Blackwell and Abdoul Azika committed a series of violent carjackings by brandishing weapons to forcibly steal cars from their victims,” stated FBI Assistant Director in Charge Raia.  “These gang members repeatedly terrorized our communities by threatening violence to ensure fearful compliance. The FBI continues to facilitate successful disruptions via Operation Summer Heat by protecting our citizens from violent offenders.”

According to court filings and statements by the defendants at the guilty plea proceedings, Azika and Blackwell were members of the violent “5zzly” crew of the Bronx-based Blood Hounds Brims gang that carried out armed carjackings and robberies across New York City and Long Island.  Both defendants pleaded guilty to one such carjacking in the early morning hours of March 19, 2023, during which they snuck up on a vehicle parked in a residential neighborhood in Garden City, opened the doors of a vehicle, pointed a knife and a gun at the driver’s face, and told him to “get the f*** out of the car.”  After the driver complied, Blackwell and Azika stole the car.  Blackwell also admitted to committing another armed carjacking in Elmont on June 7, 2023, and Azika also admitted to perpetrating two armed carjackings in South Farmingdale and Massapequa on June 5, 2022.

The government’s case is being handled by the Office’s General Crimes Section. Assistant United States  Attorneys Rebecca M. Schuman and Kamil R. Ammari are in charge of the prosecution.

The Defendants:

ABDOUL AZIKA
Age:  21
Bronx, New York

JAQUELL BLACKWELL
Age:  20
Bronx, New York

E.D.N.Y. Docket Nos. 24-CR-483, 25-CR-194 (ARR)

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, dual U.S. and Russian national Vadim Yermolenko was sentenced by United States District Judge Hector Gonzalez to 30 months in prison for his role in an illicit procurement and money laundering network that sought to acquire ammunition and sensitive dual-use electronics for Russian military and intelligence services. In addition to the term of imprisonment, Judge Gonzalez ordered Yermolenko to pay a forfeiture money judgment of $75,547.00.  Yermolenko pleaded guilty in November 2024 to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the United States. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, John A. Eisenberg, Assistant Attorney General for National Security, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (OEE), and Harry T. Chavis, Jr., Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI New York) announced the sentence.

“The defendant lied to banks, facilitated the illegal export of ammunition and sensitive technology, and evaded income taxes, all as part of a global procurement and money laundering network operated on behalf of the Russian government,” stated United States Attorney Nocella.  “Today’s sentence should send a message to all who would consider abusing the financial system to commit crimes on behalf of foreign nations:  This Office will find you, prosecute you, and, if you are convicted, seek a significant prison sentence.”

“Vadim Yermolenko violated several US laws while endeavoring to help the government of Russia acquire dual-use technology and weapons to bolster its military. Today's sentencing should signal to all those attempting to evade US sanctions that the US government will work tirelessly to prevent American manufactured goods from being illegally procured and used to advance the militaries of adversarial foreign governments.  The FBI will continue to be unrelenting in our efforts to defend the homeland, identity those responsible, and bring them to justice,” stated FBI Assistant Director in Charge Raia.

“Through a sophisticated network of shell companies and bank accounts, Yermolenko laundered more than $12 million and purchased highly sensitive military equipment for Russia—aiding Russia’s military and intelligence agencies in violation of U.S. laws.  Yermolenko’s greed and misplaced foreign allegiance created a potential threat to our national security, and law enforcement’s collaboration on this case ensures that our communities are safe from this potential vulnerability,” stated IRS-CI New York Special Agent in Charge Chavis.

Mr. Nocella expressed his appreciation to the U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the Estonian authorities for their valuable assistance.

As alleged in court documents, the defendant was affiliated with Serniya Engineering (Serniya) and Sertal LLC (Sertal), two Moscow-based procurement companies.  Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.

The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing, and other military applications.  Serniya, Sertal, and several individuals and companies involved in the scheme were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in February 2022.

To carry out the scheme, Yermolenko helped set up numerous shell companies and bank accounts in the U.S. to illicitly move money and export-controlled goods.  During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant, which he failed to report to the IRS.  These funds were used in part to purchase sensitive equipment used in radar, surveillance, and military research and development.  In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia. 

Co-defendant Nikolaos Bogonikolos previously pleaded guilty to wire fraud conspiracy and conspiracy to violate the Export Control Reform Act and was sentenced to 15 months’ incarceration.  Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Andrew D. Reich and Matthew Skurnik are in charge of the prosecution, with assistance from Trial Attorney Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section.  Former Assistant United States Attorney Artie McConnell, former Litigation Analysts Emma Tavangari and Mary Clare McMahon, and former National Security Division Trial Attorney Scott A. Claffee contributed to the prosecution.

The Defendant:

VADIM YERMOLENKO
AGE: 43
Upper Saddle River, New Jersey

Other Defendants:

ALEXEY IPPOLITOV
AGE: 59
Moscow, Russia

YEVGENIY GRININ age: 47
Moscow, Russia

BORIS LIVSHITS
Age: 55
St. Petersburg, Russia

SVETLANA SKVORTSOVA
AGE: 44
Moscow, Russia

VADIM KONOSHCHENOK
AGE: 51
Tallin, Estonia

ALEXEY BRAYMAN
AGE: 38
Merrimack, New Hampshire

NIKOLAOS BOGONIKOLOS
AGE: 62
Athens, Greece

E.D.N.Y. Docket No. 22-CR-409 (S-3) (HG)

Today, in federal court in Brooklyn, New York, a New Jersey resident and dual U.S. and Russian national, Vadim Yermolenko, was sentenced to 30 months in prison for his role in a transnational arms dealing and money laundering network that sought to acquire ammunition and sensitive dual-use electronics for Russian military and intelligence services. In addition to the term of imprisonment Yermolenko was ordered to pay a forfeiture money judgment of $75,547.  Yermolenko pleaded guilty in November 2024 to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the United States.

“The defendant lied to banks, facilitated the illegal export of ammunition and sensitive technology, and evaded income taxes, all as part of a global procurement and money laundering network operated on behalf of the Russian government,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Today’s sentence should send a message to all who would consider abusing the financial system to commit crimes on behalf of foreign nations: this office will find you, prosecute you, and, if you are convicted, seek a significant prison sentence.”

As alleged in court documents, the defendant was affiliated with Serniya Engineering (Serniya) and Sertal LLC (Sertal), two Moscow-based procurement companies. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.

The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing, and other military applications. Serniya, Sertal, and several individuals and companies involved in the scheme were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in February 2022.

To carry out the scheme, Yermolenko helped set up numerous shell companies and bank accounts in the U.S. to illicitly move money and export-controlled goods. During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant, which he failed to report to the IRS. These funds were used in part to purchase sensitive equipment used in radar, surveillance, and military research and development. In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia.

Co-defendant Nikolaos Bogonikolos previously pleaded guilty to wire fraud conspiracy and conspiracy to violate the Export Control Reform Act and was sentenced to 15 months in prison. Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence.

Assistant Attorney General John A. Eisenberg for National Security, U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York, Assistant Director in Charge Christopher G. Raia of the FBI’s New York Field Office, Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office (OEE), and Special Agent in Charge Harry T. Chavis Jr. of IRS Criminal Investigation New York (IRS-CI) made the announcement.

U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the Estonian authorities provided valuable assistance.

Assistant U.S. Attorneys Andrew D. Reich and Matthew Skurnik for the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section. Former Assistant U.S. Attorney Artie McConnell and former Litigation Analysts Emma Tavangari and Mary Clare McMahon for the Eastern District of New York, as well as former National Security Division Trial Attorney Scott A. Claffee, contributed to the prosecution.

Earlier today, in federal court in Brooklyn, Mina Tadrus was sentenced by United States District Judge Hector Gonzalez to 30 months in prison for committing investment adviser fraud of more than $5.7 million in connection with a scheme to defraud investors in Tadrus Capital LLC, a hedge fund Tadrus founded and operated that purported to use artificial intelligence-based algorithmic trading models.  As part of the sentence, Tadrus was also ordered to pay restitution of $4,224,850.  Tadrus pleaded guilty in February 2025.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York) announced the sentence.

“The defendant traded on excitement over the newest AI technology to trick investors to invest millions with his hedge fund.  In the end, he perpetrated one of the oldest frauds in the book,” stated United States Attorney Nocella.  “Today’s sentence serves as a reminder to all investment advisors that your clients place great faith in you to truthfully manage their investments, nest-eggs, and retirement savings.  Our Office is committed to protecting the investing public, vindicating the rights of victims of economic crime, and prosecuting those who undermine the stability of our economy.”

Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this matter.

“Mina Tadrus shamelessly lied to investors of his hedge fund - many of whom were friends and family - preying on their trust to defraud them out of more than $5 million.  Today, Tadrus learned that his scheme resulted not in wealth, but prison time.  Ensuring fraudsters are held accountable in the criminal justice system is essential to the FBI's work on behalf of the American people,” stated FBI Assistant Director in Charge Raia.

“While Tadrus sold a dream of high-profits to his investors, the only return they saw was the negative result of being swindled by someone they trusted. Today’s sentence and imposed restitution sees that Tadrus will spend real time behind bars and pay for his crimes. This new reality is not AI generated," stated IRS-CI New York Special Agent in Charge Chavis.

As set forth in court filings, Tadrus, a former stockbroker registered with the Financial Industry Regulatory Authority (FINRA) and derivatives consultant for a global financial institution, founded Tadrus Capital LLC in June 2020.  Tadrus claimed to operate “the world’s first private high-yielding and fixed-income quantitative hedge fund” powered by artificial intelligence (AI) high-frequency trading models to guarantee investors up to 30% returns annually. In reality, Tadrus used no AI-based algorithmic trading.   Tadrus also falsely claimed that Tadrus Capital was “recession-proof” and maintained liquidity with access to $5.5 billion in purchasing power.

Between September 2020 and July 2023, at least 31 individuals—predominantly Tadrus’s family, friends, and members of the Egyptian-American Coptic Christian community—invested more than $5.7 million with Tadrus Capital.  Less than one percent of the investor funds were used for legitimate investment activities and none of those activities included the promised  AI-based algorithmic trading.  Instead, Tadrus used approximately $1.7 million of investor funds both to pay other investors the monthly returns he had falsely promised, and to pay himself, his employees, and his personal expenses.

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

The Defendant:

MINA TADRUS
Age: 38
Tampa, Florida

E.D.N.Y. Docket No. 23-CR-393 (HG)

A federal jury in the Eastern District of New York convicted Joel David Forney, 42, of Kissimmee, Florida, today on two counts of sex trafficking and related charges for his conduct in trafficking two women to work in commercial sex in New York, including at an open-air sex trafficking market along a stretch of Pennsylvania Avenue in Brooklyn known as the Penn Track, as well as the defendant’s transportation of a woman from New York to multiple other states, including Connecticut and Wisconsin, with the intent that she engage in commercial sex for his financial benefit. Forney was also found guilty of coercion and enticement of a minor for having sexual intercourse with a teenager when he was 31 years old.

“The defendant used violence and threats to force victims into commercial sex for his profit,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Such inhumane conduct has no place in a civilized society. The Justice Department is committed to combating human trafficking and securing justice for its victims.”

“The jury found that Forney used violence and threats to compel women to engage in commercial sex acts at the Penn Track for his own profit, and enticed a vulnerable minor into having sex with him,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Our office will relentlessly pursue those, like the defendant, who engage in sex trafficking, and I commend the survivors of Forney’s depraved conduct who bravely assisted law enforcement in bringing him to justice.”

“Joel Forney’s actions inflicted lasting harm on his victims through violence, coercion and manipulation,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “The FBI remains steadfast in our commitment to protecting everyone in our communities, and we hope today’s sentencing brings some measure of closure to the victims.”

Evidence at trial showed that Forney used false promises to lure women into his trafficking network. The defendant then compelled these women to have sex with multiple men per day for money, while keeping the proceeds for himself. If the women refused to engage in commercial sex for his financial benefit, the defendant subjected them to physical abuse and threatened to hurt or kill them if they did not comply.

The evidence also showed that the defendant lured a third victim to his home by sending her romantic and sexual text messages. Once in his house, the defendant had sex with the victim, even though he was 31 years old at the time and she knew no more than 15. Forney then sent the victim text messages that implied he was recruiting her for commercial sex.

A sentencing hearing will be scheduled at a later date. Forney faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated the case, with valuable assistance from the FBI NYPD Child Exploitation Human Trafficking Task Force.

Assistant U.S. Attorneys Lauren Elbert and Antoinette N. Rangel for the Eastern District of New York and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

BROOKLYN, NY – Earlier today, a federal jury in Brooklyn convicted Joel David Forney, also known as “Sirbar,” on two counts of sex trafficking for using force, fraud and coercion to cause two women to work as prostitutes, including at an open-air sex trafficking market along a stretch of Pennsylvania Avenue in East New York known as the Penn Track, as well as related charges for transporting a woman to and from New York and other states, including Connecticut and Wisconsin, with the intent that she engage in prostitution.  Forney was also found guilty of coercion and enticement of a minor with whom he had sexual intercourse in 2014 when he was 31 years old.  The verdict was returned after a five-day trial before United States District Judge Kiyo A. Matsumoto.  When sentenced, Forney faces a mandatory minimum sentence of 15 years, and up to life, in prison.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Harmeet K. Dhillon, Assistant Attorney General of the Justice Department’s Civil Rights Division; and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“The jury found that Forney used violence and threats to compel women to engage in commercial sex acts at the Penn Track for his own profit, and enticed a vulnerable minor into having sex with him” stated United States Attorney Nocella.  “Our Office will relentlessly pursue those, like the defendant, who engage in sex trafficking, and I commend the survivors of Forney’s depraved conduct who bravely assisted law enforcement in bringing him to justice." 

Mr. Nocella also expressed his thanks to the FBI/NYPD Child Exploitation Human Trafficking Task Force for their outstanding investigative work on the case.

“The defendant used violence and threats of violence to compel his victims to engage in commercial sex for his profit,” stated Assistant Attorney General Dhillon. “There is no place in a civilized society for the defendant’s inhumane conduct, and the Justice Department is committed to punishing human trafficking and achieving justice for its victims.”

“Joel Forney lured and forced women into commercial sexual acts with multiple individuals for his own profit and personally sought out and sexually abused a minor.  Forney mercilessly punished and threatened extreme violence to induce compliance from his trafficked victims.  May today’s conviction empower survivors of sexual violence and emphasize the FBI’s intolerance of those who seek to profit from another’s abuse,” stated FBI Assistant Director in Charge Raia.

As proven at trial, Forney used false promises to lure women into his trafficking business.  Forney then compelled these women to engage in commercial sex with men while keeping their earnings for himself.  If the women refused, Forney subjected them to physical abuse and threatened to hurt or kill them if they did not comply.  Forney showed one victim an image on his cellphone of a dismembered woman and stated, “this is what happens to whores who don’t obey their pimps.”

The evidence also showed that the defendant lured a third victim, a minor whom he met in June 2014 near his then-home in Queens, New York, by sending her romantic and sexual text messages.  Forney and the minor victim discussed her life as a teenager, including her school and her relationship with her parents, and the defendant repeatedly offered her money.  Once in his house, Forney had sex with the victim, even though he was 31 years old, and she was no more than 15 years old.  

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

The government’s case is being handled by the Office’s Human Trafficking and Civil Rights Section. Assistant United States Attorneys Antoinette N. Rangel, Lauren A. Bowman, and Trial Attorney Leah Branch of the Justice Department’s Civil Rights Division’s Human Trafficking Prosecution Unit are in charge of the prosecution with the assistance of Paralegal Specialist Chelsea Guzman and additional assistance from Victim Witness Coordinator Huda Abouchaer and Victim Witness Specialist Kristina Marius.

The Defendant:

JOEL DAVID FORNEY (also known as “Sirbar”)
Age: 42
Kissimmee, Florida

E.D.N.Y. Docket No. 24-CR-146 (KAM)

Earlier today in federal court in Brooklyn, Charles O. Parks III, also known as “CP3O,” was sentenced by United States District Judge Eric Komitee to one year and one day in prison for operating a large-scale illegal “cryptojacking” operation.  As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources so that he could mine cryptocurrency worth nearly $1 million.  Parks was charged with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme and pleaded guilty to wire fraud in December 2024.  As part of the sentence, Parks was ordered to forfeit $500,000 and a Mercedes Benz luxury car purchased with proceeds from the scheme.  The amount of restitution will be determined at a later date.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the sentence.

“Parks branded himself as an innovator and a thought leader, but in the end he was merely a fraudster whose secret to getting rich quick was lying and stealing,” stated United States Attorney Nocella.  “This Office remains committed to prosecuting criminal actors who take advantage of new, sophisticated technologies to engage in fraud and deceit.” 

Mr. Nocella expressed his appreciation to the FBI’s New York Cyber Crimes Task Force (CCTF).

“Charles Parks III stole more than $3.5 million worth of resources to illegally mine another million in cryptocurrency for personal luxurious purchases,” stated FBI Assistant Director in Charge Raia.  “While Parks gloated across social media platforms, he failed to mention his purported success was rooted in deceit and theft.  May today's sentencing reaffirm the FBI's steadfast commitment to dismantling any cryptojacking operation that targets legitimate companies for nefarious reasons.”

“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency—and today’s sentencing holds him fully accountable for his deceitful actions,” stated NYPD Commissioner Tisch.  “I am grateful to the NYPD and FBI investigators for their dedication, and I commend the prosecutors for their tireless efforts in securing this meaningful prison sentence.  We will continue to work with all of our law enforcement partners to bring to justice anyone who seeks to undermine the integrity of our financial institutions.”

“Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware, or computing power, to mine cryptocurrency.  According to court filings and facts presented at today’s sentencing, from in or about January 2021 through August 2021, Parks operated a large-scale “cryptojacking” operation in which he defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine nearly $1 million in cryptocurrency.

Parks created and used a variety of names, corporate affiliations, and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the service providers and to gain access to massive amounts of computing processing power and storage that he did not pay for. Parks also deceived the providers into approving heightened privileges and benefits, including elevated levels of computing services, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances.  For example, Parks told one provider that he was using the computing resources to build “a global online training company that focuses on media, technology, and business strategy” and that his goal was “to serve 10,000 students simultaneously.” In reality, there was no training company, and there were no students.  Parks instead used the fraudulently obtained computing resources to mine various cryptocurrencies including Ether, Litecoin, and Monero.         

Parks then converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token (NFT) marketplace, an online payment provider, and traditional bank accounts, and structured money movements to avoid transaction reporting requirements under federal law.  After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds to make extravagant purchases, including a Mercedes-Benz, jewelry, and first-class hotel rooms, and to pay travel expenses.

Parks boasted about his profits so as to earn credibility as a crypto influencer.  In a video uploaded to his YouTube channel in September 2022, Parks purported to share tips for achieving what he called a “MultiMillionaire Mentality.” Describing the fraudulent scheme, Parks boasted that, “Last year I set a goal for myself that I wanted to make seven digits or more, and so I spent the first ten days of the year creating a—we’ll just call it a really nice crypto script—that I was able to use at scale. And after working that ten days, let’s just put it this way, I didn’t work the rest of the year.”  He later added that, “…by April, I purchased myself a Mercedes Benz AMG S class coup.”   

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Andrew D. Reich is in charge of the prosecution, with the assistance of Paralegal Specialist Wayne Colon.

The Defendant:

CHARLES O. PARKS III (also known as “CP3O”)
Age: 46
Omaha, Nebraska

E.D.N.Y. Docket No. 24-CR-105 (EK)

Earlier today, at the federal courthouse in Brooklyn, a criminal complaint was filed charging Edynesson Bauduy and Aaron Richard with federal firearms violations relating to an August 12, 2025 gunfight in the Flatbush section of Brooklyn.  Both defendants were arrested and Richard made his initial appearance this afternoon before United States Magistrate Judge Seth D. Eichenholtz.  Richard was ordered detained pending trial.  Bauduy will be arraigned at a later date.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the arrests and charges.

“As alleged, these defendants are convicted felons who engaged in a dangerous gunfight on a busy Brooklyn street in broad daylight, endangering the lives of numerous citizens,” said United States Attorney Nocella.  “Both defendants had been released from prison earlier this year.  Despite repeated encounters with our criminal justice system, each defendant chose to return to the streets to engage in brazen acts of violence.  Today’s arrests demonstrate our continued commitment to working with our law enforcement partners to combat gun violence and hold accountable those who illegally possess firearms and endanger our communities.”

Mr. Nocella thanked the U.S. Marshals Service Regional Fugitive Task Force for their valuable assistance on the case.

"Edynesson Bauduy and Aaron Richard allegedly engaged in a public gunfight despite their previous criminal convictions barring them from possessing firearms. These convicted felons allegedly continued to wreak havoc in our community and posed an unnecessary threat to innocent bystanders. These successful Operation Summer Heat arrests emphasizes the FBI’s steadfast commitment to collaborating with our law enforcement partners to crush all violent crime disrupting the safety of our city," stated FBI Assistant Director in Charge Raia.

As alleged in the criminal complaint, on August 12, 2025, at approximately 7:25 p.m., NYPD officers on patrol in the 70th Precinct heard gunshots and immediately responded near 533 Ocean Avenue in Flatbush, Brooklyn.  When officers arrived, they observed a gunfight in progress between Bauduy and Richard. 

Police recovered a firearm that had been used by Bauduy and shell casings from where Richard fired his weapon.  Both defendants have prior felony convictions that prohibit them from possessing firearms or ammunition.  Richard was released from prison in April of this year; Bauduy was released from prison in June.   

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, each defendant faces up to 15 years in prison.

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

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorneys Brachah Goykadosh and Matthew Sullivan are in charge of the prosecution.   

The Defendants:

EDYNESSON BAUDUY
Age: 22
Brooklyn, New York

AARON RICHARD
Age: 35
Brooklyn, New York

E.D.N.Y. Docket No. 25-MJ-248