Eastern District of New York

Earlier today, in federal court in Brooklyn, Mohammad Ajmal Choudhry was sentenced to life in prison. Following a nine-day trial in June and July 2014, Choudhry was convicted of conspiring to commit murder in a foreign country, transmitting threats via interstate communications, and immigration fraud.

“Choudhry’s murderous plan was orchestrated in Brooklyn, and the deadly consequences were felt in Pakistan – but not beyond the reach of the American justice system,” stated Acting United States Attorney Kelly T. Currie. “Today, Choudhry was ordered to spend the rest of his life in prison, a fitting punishment for a man who – in the mistaken name of honor – caused two innocent people to be killed, and their bereaved family members to flee leaving behind their home and the place where their beloved family members are buried.” Mr. Currie expressed his grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI) and the U.S. State Department’s Diplomatic Security Service, who worked closely together to investigate the case.

“There is absolutely no honor in killing innocent victims whose only fault was helping a young woman find freedom in the United States,” said Raymond R. Parmer Jr., Special Agent in Charge, HSI New York. “This case serves as a stern reminder to those who plot crimes to be committed overseas, that our law enforcement and justice systems have global reach and will always be used to make sure justice is served.”

“The worldwide presence and investigative capabilities of the Diplomatic Security Service enable us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said David Schnorbus, Special Agent in Charge of the Diplomatic Security New York Field Office. “With this case, Diplomatic Security sends a strong message to criminals: there is no safe harbor outside the United States.”

Choudhry’s daughter, Amina Ajmal, was held against her will in Pakistan for more than three years by relatives at her father’s direction. During that time, Ajmal, a U.S. citizen, was forced into an arranged marriage with a Pakistani national. Ajmal eventually escaped Pakistan and returned to the United States with the assistance of a Pakistani man, Shujat Abbas, and U.S. State Department officials.

Following Ajmal’s flight from Pakistan in early January 2013, Choudhry and members of his family in Pakistan began a several months-long campaign of threats and intimidation against Abbas’s family members, who hailed from the same village as Choudhry, to avenge the perceived blight on the Choudhry’s honor resulting from Ajmal’s and Abbas’s actions. On January 26, 2013, Choudhry’s brother and other members of his family lured Abbas’s mother and father to a location just outside the village where they fired gunshots repeatedly at their car; Abbas’s mother and father managed to escape the attack unharmed, but spent the weeks that followed living in fear that they and their children would be murdered.

These fears were compounded by a threat that Choudhry communicated directly to Abbas’s father during a telephone call shortly after the shooting took place – “If our daughter will not come back to the home, we will kill all five of you. Otherwise, we will find your son and we’ll kill him. This time we shoot on your car. It was threatening, but next time we will shoot in the chest of all five of you.”

On February 25, 2013, Abbas’s father and twenty-one year old sister were shot and killed in the streets of their village. According to eyewitnesses, Choudhry’s brother and other relatives were observed standing over the victims, holding guns and desecrating the bodies. Choudhry foreshadowed the murders just days before they occurred when he warned his daughter during a recorded telephone call – “Now let me make it clear to you. If you don’t come back, I will kill each and every one of them.”

After Abbas’s father and sister were killed, he and the remaining members of his family living in Pakistan moved to an undisclosed location in the United States to assist the United States government in the prosecution of this case and to escape the ongoing threats of violence against them in Pakistan.

The sentencing proceeding was held before the Hon. William F. Kuntz, II.

The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Amanda Hector, Richard M. Tucker, and Margaret E. Gandy are in charge of the prosecution.

The Defendant:

MOHAMMAD AJMAL CHOUDHRY

Age: 62

E.D.N.Y. Docket No. 13 CR 150 (WFK)

A twenty-eight-count indictment was unsealed today in United States District Court for the Eastern District of New York charging James Brewer, a resident of Staten Island, New York, with seven counts of wire fraud, mail fraud, three counts of subscribing to false federal tax returns, six counts of aiding and assisting in the preparation of false federal tax returns, ten counts of aggravated identity theft, and perjury. Brewer is a Revenue Officer of the Internal Revenue Service (IRS), assigned to the Edison, New Jersey IRS office. Brewer was arrested in Las Vegas, Nevada, and is scheduled to be arraigned tomorrow afternoon before a United States Magistrate Judge at the federal courthouse in Las Vegas.

The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office and Rodney A. Davis, Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), Washington Field Division.

“As alleged, James Brewer abused his position of trust to enrich himself,” stated Acting United States Attorney Currie. “He willfully disregarded his responsibility to deal honestly and testify truthfully, and now stands accused of a series of crimes. We will continue to work with our law enforcement partners to enforce our laws across the board.” Mr. Currie expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey, the United States Attorney’s Office for the District of Nevada, IRS-CI, Las Vegas Field Office and the Treasury Inspector General for TIGTA, Denver Field Division for its assistance in this case.

“The crimes alleged in this indictment are very serious. While employed by the IRS to enforce our nation’s tax laws, it is alleged that James Brewer was himself breaking these laws,” stated Special Agent-in-Charge Larsen, IRS-Criminal Investigation, Newark Field Office. “Today’s indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violate the public’s trust.”

“Mr. Brewer allegedly not only stole the identities of taxpayers for personal gain but also allegedly cheated the very tax system he was paid to uphold and support. TIGTA will aggressively investigate any allegation of an IRS employee committing a criminal act that impacts federal tax administration,” said TIGTA Special Agent-in-Charge Davis.

According to the indictment, Brewer operated two outside businesses contrary to IRS regulations: he prepared tax returns for others in exchange for fees, and he operated a business selling designer clothes, collectable toys, sports memorabilia, and other items through the Internet auction site “eBay.” As part of a scheme to fraudulently reduce his taxable income and increase his tax refunds, Brewer failed to report any income he received for his unauthorized tax preparation business, underreported the gross receipts earned from his Internet retail business, and claimed false dependents on federal tax returns he prepared and filed on his behalf for three tax years. Brewer also engaged in a multi-year scheme in which he prepared and filed false tax returns for others. Brewer listed false dependents and false deductions on these returns, among other materially false information, in order to fraudulently cause his clients to receive a refund to which they were otherwise not entitled or fraudulently inflate their refunds. In doing so, Brewer listed the names and social security numbers of various individuals on those tax returns as dependents without those individuals’ authorization. As part of this scheme, Brewer also diverted a portion of those clients’ refunds to himself, in some cases without his clients’ authorization or knowledge. Finally, in an effort to fraudulently obtain for himself a tax credit for first time homebuyers, Brewer lied under oath about his residency when he testified in a matter in the United States Tax Court in New York, New York.

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

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Marisa Megur Seifan and Moira Kim Penza are in charge of the prosecution.

The Defendant:

JAMES C. BREWER

Age: 38

Staten Island, New York

E.D.N.Y. Docket No. 15 CR 209 (PKC)

Earlier today at the federal courthouse in Brooklyn, Akbar Ahmad Sherzai, an independent contractor for a trucking company operating in Afghanistan responsible for delivering fuel to U.S. Army installations, was sentenced to 48 months’ imprisonment, three years of supervised release, and forfeiture of $54,000 for his role in offering a U.S. Army serviceman bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. The sentencing proceeding was held before U.S. District Judge Margo K. Brodie. Sherzai previously pleaded guilty to one count of conspiracy to commit bribery.

The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, John F. Sopko, Special Inspector General for Afghanistan Reconstruction, Diego G. Rodriguez, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office, Raymond R. Parmer, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and Frank Robey, Director of the U.S. Army’s Criminal Investigation Command.

“Attempts to corrupt American officials will not be tolerated, either at home or abroad,” stated Acting United States Attorney Currie. “Our efforts to bring to justice those who would do so do not end at our nation’s borders.” Mr. Currie extended his grateful appreciation to each of the agencies who participated in the investigation and prosecution of this case.

The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed before approving payments to the trucking companies.

In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify 14 TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.

The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.

The Defendant:

AKBAR AHMAD SHERZAI

Age: 50

Centerville, Virginia

Citizenship: Dual United States and Afghanistan

E.D.N.Y. Docket No. 14-Cr-60 (MKB)

Earlier today, Genadi Yagodayev, a former officer of the Rockford Group, pleaded guilty to conspiracy to commit mail and wire fraud in connection with a scheme to defraud investors of more than $10 million. Today’s plea is the fourth conviction in connection with the investigation into Rockford Group.

The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS); Raymond R. Parmer Jr., Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); and Robert J. Sica, Special Agent in Charge, United States Secret Service, New York Field Office (USSS).

“Yagodayev and his cohorts scammed unsuspecting investors through a web of lies and deceit. When the money was stolen and sent overseas, Yagodayev fled the country and thought he had escaped the reach of U.S. law enforcement,” stated Acting United States Attorney Currie. “His extradition and prosecution show that we and our law enforcement partners will leave no stone unturned in bringing to justice those who seek to defraud the investing public.” Mr. Currie expressed his appreciation to the USPIS, HSI, and USSS for their hard work and dedication over the course of this investigation and prosecution. Mr. Currie also thanked the government of Cyprus and the Department of Justice, Office of International Affairs (OIA), for their substantial assistance in the extradition of Yagodayev.

From approximately December 2008 to November 2009, Yagodayev and his co-conspirators participated in a fraudulent investment scheme through a company called the Rockford Group. The Rockford Group marketed itself as a “leading private equity firm,” claimed to invest in plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments. The Rockford Group, however, never invested in any lawsuits. Instead, nearly all of the investors’ funds were wired to bank accounts overseas. Approximately 200 investors in the U.S. and Canada lost approximately $11 million as a result of this scheme.

After the scheme collapsed, Yagodayev fled to Israel. In 2014, he was apprehended while traveling to Cyprus and extradited to the United States later that year.

Today’s guilty plea took place before United States District Judge I. Leo Glasser. When sentenced, Yagodayev faces up to 20 years in prison. The government’s case is being prosecuted by the Office’s Business and Security Fraud Section. Assistant United States Attorney Daniel Spector is in charge of the prosecution.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The Defendant:

GENADI YAGODAYEV

Age: 37

E.D.N.Y. Docket No. 14-CR-258

Earlier today, Poppi Metaxas, the former President and Chief Executive Officer (CEO) of Gateway Bank, FSB (Gateway) pleaded guilty to conspiracy to commit bank fraud for her role in defrauding the bank of more than $1.8 million in the aftermath of the financial crisis.

The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Christina Scaringi, Special Agent-in-Charge, Northeast Region, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).

“As Gateway Bank struggled to survive under the burden of its accumulated toxic assets, its CEO Poppi Metaxas turned to sham transactions to deceive regulators and convince them that the bank had rid itself of its bad loans and underwater real estate holdings. Today’s guilty plea puts bank officers on notice that they will be brought to justice if they resort to lies and deceit to fix mistakes of the past,” stated Acting United States Attorney Currie. Mr. Currie thanked the FBI, SIGTARP, and HUD-OIG for their hard work and dedication through the course of this five-year investigation and prosecution.

According to court filings and the facts presented at the plea hearing, between 2009 and 2010, Metaxas engaged in a scheme to defraud Gateway in connection with Gateway’s sale of non-performing assets and mortgage loans to three entities in exchange for $15 million. Specifically, Metaxas caused Gateway to enter into a sham loan agreement with Ideal Mortgage Bankers Ltd. d/b/a Lend America, a Long Island mortgage lender and Gateway’s largest mortgage lending client. Metaxas and her co-conspirators, through a series of wire transfers, then used the proceeds of that sham loan to satisfy the 25 percent down payment that the three entities owed to Gateway in connection with the sale of the non-performing assets and loans. To conceal the fraudulent “round trip” nature of the loan funds, Metaxas deceived the board of directors of Gateway and, in October 2009, she provided false testimony to bank regulators when asked about the source of the down payment.

Today’s guilty plea took place before United States District Judge Joseph F. Bianco at the United States Courthouse in Central Islip, New York. When sentenced, Metaxas faces up to five years in prison.

The government’s case is being prosecuted by the Office’s Business and Security Fraud Section. Assistant United States Attorneys Walter M. Norkin and Christopher L. Nasson are in charge of the prosecution.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The Defendant:

POPPI METAXAS

Age: 62

Hillsborough, California

E.D.N.Y. Docket No. 14-CR-190 (JFB)

Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Damion Hardy, also known as “World,” and Aaron Granton, also known as “E-Bay,” on charges of racketeering, including six murders, narcotics trafficking, kidnaping, and robbery as predicate racketeering acts, and related offenses. Granton was also convicted of his participation in a murder-for-hire. When sentenced by United States District Judge Frederic Block, each defendant faces a mandatory sentence of life imprisonment on the most serious charge.

The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Raymond R. Parmer Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and William J. Bratton, Commissioner, New York City Police Department.

“Today’s verdict is the culmination of more than a decade of work by prosecutors, special agents, and detectives to dismantle the Cash Money Brothers gang and to hold Damion Hardy and Aaron Granton accountable for their heinous crimes. Hardy and Granton terrorized parts of Brooklyn in the 1990s and early 2000s, and they now face mandatory sentences of life imprisonment,” stated Acting United States Attorney Currie. “I would like to thank our partners at the FBI, HSI, and the New York City Police Department for their hard work and years of dedication to this important case.”

“The process of eradicating gangs and the violence they bring to our communities remains a top priority for the FBI. Today’s convictions are a significant step, but in no way do they mark the end of our commitment to protect the welfare of those who live in neighborhoods plagued by crime,” stated FBI Assistant Director-in-Charge Rodriguez.

“Drug traffickers destroy lives and ruin communities. Today’s guilty verdicts should leave no doubt about our shared commitment to attack and dismantle drug traffickers who pose a threat to our communities,” HSI New York Special Agent-in-Charge Parmer. “Working alongside our law enforcement partners, HSI will continue to use its unique authorities to ensure criminals are held accountable and brought to justice.”

“We applaud this guilty verdict which acknowledges the violent acts perpetrated by notorious gang members Damion Hardy and Aaron Granton. I want to thank our law enforcement partners for their dedication and tireless efforts which resulted in these criminals being brought to justice,” stated NYPD Commissioner Bratton.

From 1991 until August 2004, Hardy was the leader of a criminal enterprise known as the “Cash Money Brothers” (CMB), based in the Lafayette Gardens houses in Brooklyn, New York (Lafayette Gardens). Granton was a member of CMB and one of its top enforcers. From the time the crack-cocaine epidemic began in the late 1980s, Lafayette Gardens was a central and lucrative hub for the distribution of cocaine base. At that time, the young men who would later form CMB acted as low-level street dealers under the direction of the senior drug dealers who controlled Lafayette Gardens. In or around 1991, after CMB was formed under the leadership of the defendant Hardy and his brother, Myron Hardy, also known as “Wise,” the CMB ousted the senior dealers and seized control of the Lafayette Gardens crack trade for themselves.

The CMB wrested and maintained control of Lafayette Gardens through acts of violence that included near-daily gun battles with rival organizations and numerous murders. In 1998, Hardy ordered a junior gang member to shoot and kill Michael Colon because Hardy believed that Colon had disrespected and humiliated him at a roller skating rink. In 1999, while Hardy was incarcerated, his brother Myron Hardy was shot and killed in Lafayette Gardens. Hardy and other CMB members believed that a rival drug dealer named Ivery “Peanut” Davis and other members of Davis’s drug organization were responsible for the murder. Immediately after Myron Hardy was shot, while he still lay wounded in the hospital, Damion Hardy, from prison, began directing his gang members to exact revenge. Hardy ordered the CMB to murder Darryl Baum, James Hamilton, Tyrone Baum, and Ivery Davis, all four of whom were ultimately murdered by CMB members. Davis’s killing also resulted in the death of an innocent bystander, Johan Camitz. At Hardy’s direction, Granton acted as the triggerman in the murders of Darryl Baum, Hamilton, and Davis.

In addition, Granton also participated in the 2001 contract murder of Troy Singleton. Through his work with CMB, Granton had earned a reputation as an effective and ruthless killer. He was recruited by a separate gang, known as the “Supreme Team,” to kill Singleton, who was then shot multiple times in the back and head as he left a nightclub in Queens, New York.

The government’s case is being prosecuted jointly by the Office’s International Narcotics & Money Laundering Section and Organized Crime & Gangs Section. Assistant United States Attorneys Matthew Amatruda, Soumya Dayananda, and Rena T. Paul are handling the prosecution.

The Defendants:

DAMION HARDY

Age: 40

Brooklyn, NY

AARON GRANTON

Age: 40

Brooklyn, NY

E.D.N.Y. Docket No. 04-CR-0706

Effective today, Kelly T. Currie will serve as the acting United States Attorney for the Eastern District of New York. In that capacity, he is responsible for overseeing all federal criminal and civil investigations and cases in Brooklyn, Queens, and Staten Island, as well as Nassau and Suffolk Counties on Long Island. Mr. Currie supervises a staff of approximately 170 attorneys and 129 support personnel. Most recently, Mr. Currie served as First Assistant United States Attorney in this Office.

Mr. Currie returned to the U.S. Attorney’s Office in November 2014 after four years at the law firm Crowell & Moring, LLP. While in private practice, he represented corporations and individuals in white collar criminal defense matters, enforcement actions, corporate internal investigations, and complex civil litigation.

Prior to joining the law firm, Mr. Currie served in the U.S. Attorney’s Office from 1999-2010, including as Deputy Chief of the Criminal Division and Chief of the Violent Crimes & Terrorism Section. Mr. Currie led investigations and prosecutions of a wide range of crimes, including racketeering, international terrorism, securities and wire fraud, money laundering, and murder. He tried 15 cases to verdict and argued over a dozen appeals before the U.S. Court of Appeals for the Second Circuit. As Chief of the Violent Crimes and Terrorism Section, Mr. Currie led teams of prosecutors in bringing nationally-recognized terrorism and national security prosecutions, and RICO prosecutions against violent gang members. He also obtained a trial conviction in the prosecution of the head of securities lending at a major Wall Street investment bank for securities fraud and money laundering.

Mr. Currie joined the U.S. Attorney’s Office after working as an associate at the law firm of Rogers & Wells, LLP. From 1996 to 1998, Mr. Currie served as a senior advisor to former United States Senator George J. Mitchell, who chaired the political negotiations in Northern Ireland that led to the 1998 Good Friday Agreement.

Mr. Currie graduated from the University of Virginia, McIntire School of Commerce in 1986, and the University of Virginia School of Law in 1993.

Earlier today at the federal courthouse in Central Islip, New York, Farrukh Baig was sentenced to 87 months in prison following his September 22, 2014, guilty plea to committing wire fraud and concealing and harboring illegal aliens employed at 7-Eleven, Inc. (7-Eleven) franchise stores located throughout Long Island and Virginia.

The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Raymond R. Parmer Jr., Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Joseph A. D’Amico, Superintendent, New York State Police; Edward Webber, Commissioner, Suffolk County Police; and Irv Miljoner, District Director, United States Department of Labor.

“Using the 7-Eleven brand in our neighborhoods, the defendant exploited his alien employees, stealing their wages and requiring them to live in unregulated boarding houses. He now faces time in prison for not only systematically employing illegal aliens, but also for concealing their employment by stealing the identities of children and even the dead,” stated Acting United States Attorney Currie. “We are committed to preserving the rule of law and protecting our communities from the abuses of corrupt businesses seeking to gain illegal advantage. I would like to thank our partners at HSI, New York State Police, Suffolk County Police, and the United States Department of Labor for their hard work on this important and ongoing investigation.”

“Today’s sentencing holds Farrukh Baig accountable for knowingly stealing identities to hire and employ an illegal workforce. He also stole more than $2.6 million from his overworked and underpaid employees,” said Raymond R. Parmer Jr., special agent in charge HSI New York. “This case serves as a stern reminder about the consequences facing employers who exploit illegal alien labor and violate our nation’s laws.” According to court filings and facts presented in court, the defendant, who owned, managed, and controlled fourteen 7-Eleven franchise stores during the course of the conspiracy, hired dozens of illegal aliens, equipped them with more than 20 identities stolen from United States citizens, housed them at residences he and his coconspirators owned, and stole substantial portions of his workers’ wages. During the scheme, the defendant generated over $182 million in proceeds from the 7-Eleven franchise stores.

This sentence marks an important milestone in the government’s ongoing investigation, which is already one of the largest criminal alien employment investigations ever conducted by the Department of Justice and the Department of Homeland Security. In addition to the sentence of imprisonment, the court entered an order forfeiting the defendant’s rights to ten 7-Eleven stores in New York and four 7-Eleven stores in Virginia, as well as five houses in New York worth over $1.3 million. In addition, the court ordered the defendant to pay $2.5 million in restitution for the back wages that he stole from his workers.

The government’s case is being prosecuted by the Office’s Business and Security Fraud Unit. Assistant United States Attorney Christopher A. Ott is in charge of the prosecution, with assistance provided by Assistant United States Attorneys Brian Morris and Elliot M. Schachner of the Office’s Civil Division, which is responsible for the forfeiture of assets.

This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.

Tips and Information

For questions or concerns about immigrant workers and job seekers, contact the New York State Department of Labor Division Policies and Affairs (DIPA) at its toll-free worker hotline (1-877-466-9757).

E.D.N.Y. Docket No. 14-CR-351(SJF)

The Defendant:

FARRUKH BAIG

Citizenship: Naturalized United States Citizen

Age: 58

Head of Harbor, New York

Earlier today, after four weeks of trial, a federal jury in Central Islip, New York, returned guilty verdicts against Diane Kaylor and Jason Keryc, former employees of Hauppauge-based Agape World, Inc. (Agape), on charges of securities fraud, conspiracy, mail fraud, and wire fraud. The charges arose out of the defendants’ participation in a huge Ponzi scheme. When sentenced by United States District Judge Denis R. Hurley, the defendants face a maximum sentence of 20 years’ imprisonment on each count. Keryc was remanded.

The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).

“Kaylor and Keryc convinced thousands of hard-working, middle class Americans to invest their life savings, their children’s college funds, or their retirement money in Agape, knowing that Agape was a Ponzi scheme,” stated United States Attorney Lynch. “The defendants’ motive was simple and all too common today: greed. The more money the defendants pried out of investors’ pockets, the larger their commission checks. The defendants gained the trust of their investors and then betrayed that trust to feed their insatiable appetites for money.” Ms. Lynch expressed her grateful appreciation to the United States Securities and Exchange Commission for their assistance in the case.

“What was intended as a get-rich-quick scheme was, in fact, a cowardly plan. A plan that deceived unwitting investors and lured them into a false sense of security, while promising unrealistic returns on their investments. Unlike those convicted today, the FBI and our partners intend to keep the promises we make to those who invest their faith in us. Those who employ schemes to capitalize on the pain and suffering of others will most certainly be brought to justice,” stated FBI Assistant Director-in-Charge Rodriguez.

“The Postal Inspectors are committed to protecting the American Consumers from falling victims to these types of frauds. We have a robust program in fraud prevention and when warranted, as such as this case, prosecuting defendants through the efforts of the United States Attorney’s Office,” stated Postal Inspector-in-Charge Bartlett.

Nicholas Cosmo founded Agape in August 2000. Earlier, Cosmo spent 21 months in a federal prison for defrauding investors. Kaylor and Keryc were aware of Cosmo’s prior fraud conviction, but, not surprisingly, did not disclose this information to their investors. Between October 2005 and January 2009, the defendants, who worked as account representatives or brokers for Cosmo, played critical roles in the operation of the Ponzi scheme by soliciting and obtaining hundreds of millions of dollars from investors. To induce investments and discourage withdrawals, the defendants misled the investors by (1) assuring investors that their investments would only be used to fund specific, short-term secured bridge loans to commercial borrowers, or to make short-term loans to small businesses; (2) promising to pay investors unusually high rates of returns; and (3) representing that investing in Agape carried little or no risk of loss. The defendants raised significantly more money than was needed for the loans, and lied to the investors by assuring them that their money would specifically be used to fund only a particular loan. For their efforts, Kaylor and Keryc made approximately $3.4 million and $8.9 million, respectively.

Cosmo and the defendants paid returns to Agape investors, not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. The defendants and their coconspirators took more than $370 million from approximately 5,000 investors. Of that $370 million, only $22 million actually went to fund bridge loans. Unbeknownst to investors, approximately $113 million of their money was used to trade high risk futures and commodities.

As the fraudulent scheme began to unravel, Kaylor and Keryc continued to deceive investors about Agape’s financial health and the status of various Agape bridge loans. In the summer of 2008, Agape stopped paying commissions to the defendants and asked them not to cash checks for fear that the checks would bounce. On November 3, 2008, the defendants learned that all of Agape’s 2007 bridge loans were in default or on extension but once again did not disclose this information to existing or new investors. Rather, they actively continued to solicit money from investors, obtaining an additional $13 million. As a result of the Ponzi scheme, approximately 3,800 investors sustained actual losses totaling approximately $147 million.

On October 14, 2011, Cosmo was sentenced to a term of imprisonment of 25 years in United States v. Nicholas Cosmo, 09 CR 255 (DRH), for his role in the scheme. In addition to the convictions of Cosmo, Kaylor, and Keryc, the government’s investigation led to the conviction of six other defendants for their roles in this scheme, who are pending sentence before Judge Hurley.

The government’s case is being prosecuted by the Office’s Long Island Criminal and Civil Divisions. Assistant United States Attorneys Christopher C. Caffarone, Bradley T. King, Grace M. Cucchissi and Vincent Lipari are in charge of the prosecution.

The Defendants:

DIANE KAYLOR

Age: 39

Bethpage, New York

JASON KERYC

Age: 38

Wantagh, New York

E.D.N.Y. Docket No. 12-CR-357 (S-4)(DRH)

Earlier today at the federal courthouse in Central Islip, New York, Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, was sentenced to 25 years in prison following his September 9, 2014, guilty plea to attempting to provide material support to a foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively AQAP), and obstruction of justice.

The sentencing was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Assistant Attorney General, National Security Division; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

Beginning in the fall of 2011, Zea planned to travel overseas in order to wage violent jihad against the perceived enemies of Islam, which included the government of Yemen and its allies. In furtherance of his plot, on January 4, 2012, Zea boarded a flight at John F. Kennedy Airport (JFK) in Queens, New York, to London, England, en route to Yemen. Zea was not permitted to transit onward from London, however, and was returned to the United States by British authorities. Zea was interviewed and closely surveilled by investigators following his return. Despite being prevented from traveling to Yemen, Zea continued to plot, including by encouraging and supporting his co-conspirator, Justin Kaliebe, who also was planning to travel to fight jihad. In January 2013, Kaliebe was arrested at JFK while attempting to travel to Yemen to join AQAP1. Months later, after learning that he too was under investigation, Zea caused electronic media on his computer to be destroyed in an effort to obstruct the investigation. Notwithstanding his efforts, a forensic examination of Zea’s electronic media subsequently conducted by investigators revealed an assortment of violent Islamic extremist materials, including issues of Inspire magazine, part of AQAP’s English-language media operations.

“Marcos Alonso Zea presents a chilling reminder of the danger presented to the United States by homegrown terrorists. Born, raised, and schooled in the United States, the defendant nevertheless betrayed his country by attempting to join al-Qaeda in the Arabian Peninsula, assisting a co-conspirator’s attempt to join that terrorist group, and, after learning he was under investigation, attempting to destroy evidence of his guilt,” stated U.S. Attorney Lynch. “We will continue to work tirelessly to protect our national security from all enemies, both foreign and domestic.” Ms. Lynch expressed her grateful appreciation to all the members of the FBI’s Joint Terrorism Task Force and the New York City Police Department, Intelligence Division, for their work on the investigation.

“One of our highest priorities is to protect our country by identifying, disrupting, and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations,” said Assistant Attorney General Carlin. “This sentence serves unambiguous notice that attempting to travel abroad to engage in such conduct has significant consequences.”

“The threat from al-Qaeda is real, look no further than Marcos Zea. Zea betrayed our country, attempting to first join al-Qaeda. When that failed, he helped others wage jihad. We continue working relentlessly to disrupt the plans of those who look to do us harm,” stated FBI Assistant Director-in-Charge Rodriguez.

Police Commissioner Bratton said, “The New York City Police Department will continue to work closely with our federal counterparts to identify and arrest homegrown terrorists like Marcos Alonso Zea, and ensure all extremists bring no harm to American soil, especially here in New York City.”

The government’s case is being prosecuted jointly by the Office’s National Security and Cybercrime Section and the Long Island Criminal Division. Assistant United States Attorneys Seth D. DuCharme, John J. Durham, and Michael P. Canty are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the Counterterrorism Section of the Department of Justice.

The Defendant:

MARCOS ALONSO ZEA (a/k/a “Ali Zea”)

Age: 26

Brentwood, New York

___________________________________________________________________________

1 Kaliebe subsequently pled guilty to one count of attempting to provide material support to terrorists and one count of attempting to provide material support to AQAP. Kaliebe is pending sentence by United States District Judge Denis R. Hurley in Central Islip.

Richard St. Julien, the Executive Chairman of the Board of Directors of ForceField Energy Inc. (ForceField), a publicly traded company whose common stock was listed on the NASDAQ under the ticker symbol FNRG, was arrested late Friday evening on charges of securities fraud conspiracy1. The arrest occurred as St. Julien was preparing to board a plane in Ft. Lauderdale bound for Costa Rica. The defendant’s initial appearance for removal proceedings to the Eastern District of New York occurred this afternoon before United States Magistrate Judge Lurana S. Snow, at the United States District Court in Ft. Lauderdale, Florida.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

ForceField purports to be a worldwide distributor and provider of LED lighting products and solutions. According to the criminal complaint unsealed this morning in Brooklyn federal court, since approximately August 2012, St. Julien and his co-conspirators engaged in a scheme to manipulate the price and trading volume of ForceField’s stock by using undisclosed nominee accounts, including an account held by a dermatologist in Boulder, Colorado, to purchase and sell the stock, and through the use of stock promoters and broker dealers who failed to disclose to potential investors that they had been paid by St. Julien to promote the purchase of the stock. St. Julien did not disclose his ownership and control of the shares purchased through nominees and used offshore banks, including in Belize, to pay the nominees to conceal his ownership and control. St. Julien coordinated the purchases by telephone and text messages.

As detailed in the complaint, at the end of January 2015, St. Julien allegedly paid approximately $50,000 to a stock promoter through the dermatologist in Colorado. A few days later, the stock promoter began promoting the purchase of ForceField shares on its publicly available Facebook page, disclosing that his company had been paid $25,000 by an entity unrelated to St. Julien, or the dermatologist.

Through his scheme, St. Julien and his co-conspirators deceived the investing public by creating the appearance of genuine trading volume and interest in ForceField’s stock, and as a result, from approximately January 2014 to April 2015, the price of the stock rose from a low of $4.55 per share to a high of $7.82 per share.

“As Chairman of the Board of a publicly traded company, St. Julien owed a duty of full disclosure to ForceField’s investors and shareholders. However, instead of protecting their interests by enforcing required disclosures and transparency at the company, St. Julien engaged in a stock trading scheme that was crafted on lies and deceit. Corporate insiders are on notice that we will bring to justice those who seek to deceive the investing public,” stated United States Attorney Lynch. Ms. Lynch expressed her appreciation to the FBI, the agency responsible for leading the government’s investigation, and to the United States Securities and Exchange Commission for its cooperation and assistance in the investigation.

“St. Julien had a fiduciary responsibility to act in the best interest of ForceField and its shareholders. He did neither. As alleged, St. Julien used backroom promoters and broker dealers to boost the price of ForceField by 58%, in violation of securities laws,” stated FBI Assistant Director-in-Charge Rodriguez.

If convicted, the defendant faces a maximum sentence of 25 years’ imprisonment.

The case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Jacquelyn M. Kasulis is in charge of the prosecution.

This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.

The Defendant:

RICHARD ST. JULIEN

Age: 46

Residence: San Jose, Costa Rica

________________________________________________________________________

1 The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Kenilworth, New Jersey, man was sentenced today to 41 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Stephen Depiro, 59, a Genovese family soldier, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count One of the second superseding indictment charging him with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Judge Cecchi imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.

During their guilty plea proceedings, Depiro and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Depiro also admitted to managing an illegal sports betting business.

In addition to the prison term, Judge Cecchi sentenced Depiro to serve three years of supervised release. Cernadas was previously sentenced to probation and LaGrasso was sentenced to 28 months in prison.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.

The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.

15-132 ###

Defense counsel: Alyssa Cimino Esq., Fairfield, New Jersey

Earlier today, in U.S. District Court in Brooklyn, New York, Chief Judge Carol Bagley Amon sentenced defendant Brian Gill to life in prison and his brothers David Gill and Samuel McIntosh to 40 years in prison. Following a three-week trial in November 2014, the three brothers were convicted of the June 22, 1994, drug-related murder of Michael Dawson and conspiracy to commit the murder. Brian Gill and David Gill were also convicted of a narcotics trafficking conspiracy between 2011 and 2013. At sentencing, the court found by clear and convincing evidence that Samuel McIntosh also participated in the 2011-2013 narcotics trafficking conspiracy. The charges stemmed from the defendants’ control of a drug-trafficking organization that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island.

The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

Over the course of two decades, the defendants intermittently operated a lucrative drug distribution business in Park Hill. On June 22, 1994, in connection with that business and in retaliation for selling crack cocaine on the defendants’ turf, the defendants brazenly murdered 22-year-old Michael Dawson in broad daylight in the street outside 160 Park Hill Avenue, a profitable building for crack dealing. Shortly thereafter, Brian Gill fled Staten Island. In 2011, when Brian Gill returned to Park Hill after 17 years, he launched another crack dealing business in Park Hill from his residence at 160 Park Hill Avenue. David Gill and Samuel McIntosh participated in and helped Brian Gill with that business.

“For years, these defendants escaped punishment for a senseless murder they committed in a community plagued by drug-trafficking and violence for far too long,” stated United States Attorney Lynch. “The sentences imposed appropriately reflect the seriousness of their crimes and demonstrate our steadfast commitment to holding accountable those who choose to commit murder and drug-trafficking, regardless of the age of their crimes.” Ms. Lynch extended her grateful appreciation to the FBI, the New York City Police Department, and the Richmond County District Attorney for their outstanding work in this case.

The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia Shihata, Alicyn Cooley, and Tali Farhadian are in charge of the prosecution.

The Defendants:

BRIAN GILL

Age: 46 years

Staten Island, New York

DAVID GILL

Age: 43 years

Staten Island, New York

SAMUEL MCINTOSH

Age: 40 years

Staten Island, New York

E.D.N.Y. Docket No. 13-CR-487 (CBA)

NEWARK, N.J. – A North Jersey man was sentenced today to 28 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to Count One of the second superseding indictment, charging him with racketeering conspiracy. LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.

According to documents filed in this case and statements made in court:

Since at least 2005, co-defendant Stephen Depiro, 59, of Kenilworth, New Jersey, has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.

During their guilty plea proceedings, LaGrasso, Depiro and co-defendant Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president, admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. LaGrasso and Cernadas admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.

In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release and fined $25,000. Cernadas was previously sentenced to probation and DePiro is scheduled to be sentenced April 17, 2015.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.

The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.

15-131

Defense counsel: Michael Critchley Sr., Esq., Roseland

Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the settlement of a federal civil rights suit against the FABCO Shoe Store chain (“FABCO”), for violations of the Americans With Disabilities Act (“ADA”), 42 U.S.C. § 12101 et seq. The ADA prohibits discrimination against people with disabilities and requires places of public accommodation to make reasonable accommodations to allow people with disabilities to use and enjoy their facilities.

The settlement resolves claims made by Amal Mohamed, who is disabled and confined to a wheelchair. Mrs. Mohamed alleged that on May 1, 2013, she entered the FABCO branch located at 2171 86th Street in Brooklyn to buy shoes for herself and her children. She further alleged that a FABCO employee told her she was not permitted in the store because the tires on her motorized wheelchair might soil the store’s carpet. Mrs. Mohamed stated that the FABCO employee attempted to remove her physically from the store and stopped only when the employee discovered the wheelchair was too heavy to be moved.

Under the settlement, FABCO will pay $10,000 to Mrs. Mohamed. It will also train all of its store managers on their obligations and responsibilities under the ADA, and FABCO has agreed to post signs in each of its 51 stores welcoming people with disabilities. FABCO cooperated in the government’s investigation.

“Instead of treating Mrs. Mohammad like any other customer, FABCO violated her rights under the ADA by not allowing her to shop for herself and her children and attempting to remove her from the store,” stated U.S. Attorney Lynch. “This settlement serves notice that store owners who fail to respect the rights of individuals with disabilities will be held accountable for their actions.”

FABCO owns and operates 51 discount shoe stores throughout Brooklyn, Queens, Manhattan, and the Bronx, as well as in New Jersey and Westchester County.

Kevan Cleary, Senior Trial Counsel, handled this matter on behalf of the United States.

A ten-count indictment was unsealed today in United States District Court for the Eastern District of New York charging the defendant Vincent Vertuccio, also known as “Vinny,” with conspiracy to defraud the Port Authority of New York and New Jersey in connection with the One World Trade Center project located in lower Manhattan, and related money laundering and tax crimes. The defendant Praful Pandya, an accountant, was charged with aiding and assisting in the preparation of false tax returns for Vertuccio. The defendant John Servider, a lawyer, was charged with Vertuccio with conspiracy to alter, and alteration of, records for use in a grand jury proceeding. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on April 8, 2015.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS), Cheryl Garcia, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG), Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Michael Nestor, Inspector General, Port Authority of New York and New Jersey, Office of Inspector General (PA-OIG).

As alleged in the indictment, Vincent Vertuccio controlled and directed the activities of Crimson Construction Corporation (Crimson), a company that was awarded a contract for work at the One World Trade Center (1WTC) project in lower Manhattan worth approximately $11.4 million. In seeking the contract, Vertuccio directed an employee of Crimson not to disclose Vertuccio’s role in Crimson because of his ties to organized crime. After being awarded the contract, Crimson received more than $1.5 million in connection with the 1WTC project, of which significant sums were diverted into a bank account held by Vertuccio’s mother and used to pay for renovations to Vertuccio’s daughter’s house. As a result, Crimson was unable to meet its obligations at 1WTC and was terminated from the project. Vertuccio, with the assistance of his accountant Praful Pandya, also submitted false and fraudulent individual tax returns for tax years 2008 and 2011.

After Vertuccio became aware of an ongoing grand jury investigation into his conduct, he and his lawyer, John Servider, allegedly conspired to alter invoices and sales receipts issued by a Manhattan jewelry store so as to remove Vertuccio’s name from the records before they were returned to the grand jury.

“As alleged, Vertuccio and his team of criminal consultants, including his accountant and his lawyer, cheated the taxpayers and the criminal justice system for their own corrupt purposes. We will not tolerate self-serving exploitations of Port Authority projects. We will continue to work closely with our law enforcement partners to vigorously prosecute such criminal activity,” stated United States Attorney Lynch.

“As the federal agency responsible for investigating tax crimes, IRS-Criminal Investigation works with our law enforcement partners on a variety of complex financial fraud investigations toward the mutual goals of protecting the American taxpayer and seeing that everyone pays their fair share. When individuals divert money intended for public projects into their own pockets, they risk committing tax and money laundering crimes in the process, inviting additional criminal sanctions. These consequences are magnified by the steps they take to conceal their actions and cover their tracks,” stated IRS Special Agent-in-Charge Kitchen.

“As alleged, the defendants defrauded the Port Authority and the construction of One World Trade Center. When they learned of our investigation, they altered invoices, changed names, and doctored receipts in a vain attempt to avoid detection. We have no tolerance for the shakedown of projects,” stated FBI Assistant Director-in-Charge Rodriguez.

“Today serves as an unfortunate reminder that as alleged in the indictment, organized crime continues to plague the region’s construction industry. Accordingly, we remain vigilant in protecting Port Authority projects and programs from fraudsters who line their pockets at the expense of law-abiding citizens,” stated PA-OIG Inspector General Nestor. Mr. Nestor expressed thanks to his law enforcement partners for their dedication and skill in the investigation of this case and commended the One World Trade Center integrity monitor whose efforts were integral in detecting some of the alleged schemes.

The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being handled jointly by the Office’s Organized Crime & Gangs Section and the Public Integrity Section. Assistant United States Attorneys Lan Nguyen and M. Kristin Mace, and Special Assistant United States Attorney Jonathan P. Lax are in charge of the prosecution.

The Defendants:

VINCENT VERTUCCIO, a/k/a “Vinny”

Age: 60

Maspeth, NY

PRAFUL PANDYA

Age: 68

Forest Hills, NY

JOHN SERVIDER

Age: 53

Patterson, NY

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

Earlier today, federal agents arrested Stacey Stackhouse, the former executive director of Village of Hempstead Housing Authority (VHHA) and James Alimonos, Michael Lambros, and Demetrios Kaouris, who performed construction work for the agency, for their involvement in a wire fraud conspiracy in connection with the theft of federal funds. The defendants are scheduled to appear this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the federal courthouse in Central Islip, New York.

The charges in a criminal complaint unsealed this morning were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent in Charge, Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Northeast Region, and Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.

“The defendants here were entrusted to use federal funds to provide safe and affordable housing to senior citizens and low income residents. Instead, as alleged, they bypassed the rules in order to siphon taxpayer dollars into their own pockets. We are committed to fighting criminal conduct and fraud that targets vital federal programs,” stated United States Attorney Lynch.

“The charges made today prove our determination to root out corruption in public housing authorities. We in the Office of Inspector General and the Federal Bureau of Investigation will continue to collaborate and combine resources to accomplish HUD’s vital mission to ensure that decent housing is available to the country’s low and moderate-income families. We also wish to thank the U.S. Attorney’s Office for their committed and steadfast resolve in preserving the integrity of federally-funded programs,” said HUD-OIG Special Agent in Charge Scaringi.

“Bid-rigging schemes deprive issuers of a fair and just bidding process. They harm the financial integrity of programs established to help those in need, and the cost is transferred to the taxpayers. Today’s charges are proof of our continued determination to root out those whose business practices contribute to the deterioration of healthy competition in the competitive-bidding process,” said FBI Assistant Director in Charge Rodriguez.

As alleged in court filings by the government, Stackhouse was responsible for obtaining competitive bids and overseeing the work done by private contractors hired to repair and maintain various low-income properties managed by VHHA. Funding for the work is provided to the VHHA through the U.S. Department of Housing and Urban Development (HUD). Requests for bids on contracts for the work are required to be published, and Stackhouse was responsible for awarding contracts to the most qualified lowest bidder.

Instead, as part of the charged conspiracy, Stackhouse bypassed the bidding process and awarded the construction contracts to companies owned or controlled by her co-conspirators Alimonos, Lambros, and Kaouris, at prices several times greater than the true cost of the repairs. In return, Stackhouse received kickbacks from the winning contractors.

As detailed in the complaint, in one case Stackhouse awarded a contract to a construction company controlled by Alimonos and Lambros to repair a roof at a building operated by the VHHA based on bids stating that the repairs would cost $273,900 to complete. After winning the contract, Alimonos hired a different construction company to do the repair for $23,000, keeping over $201,000 in excess payments and eventually making kickback payments to Stackhouse and others totaling $25,900.

In another example, Stackhouse allegedly awarded a contract to upgrade an intercom system at a second VHHA property without competitive bidding by claiming that the repairs were required on an emergency basis. Alimonos and Kaouris, the owners of another contracting company, jointly submitted an inflated bid of $94,000 to VHHA knowing that it would be approved by Stackhouse. After the bid was approved, Alimonos demanded and received kickbacks from Kaouris totaling $44,000.

To date, the investigation has uncovered in excess of $500,000 stolen from VHHA through the charged kickback conspiracy.

If convicted, the defendants face a maximum sentence of 20 years imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

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

The Defendants:

JAMES ALIMONOS

Age: 51

Residence: Bethpage, New York

DEMETRIOS KAOURIS

Age: 47

Residence: Plainview, New York

MICHAEL LAMBROS

Age: 48

Residence Queens, New York

STACEY STACKHOUSE

Age: 51

Residence: Dobbs Ferry, New York

E.D.N.Y. Docket No. 15-M-0314

Earlier today, a federal grand jury in Brooklyn returned a superseding indictment charging Dilkhayot Kasimov, a Brooklyn resident, with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The defendant, who is charged with three other Brooklyn residents whose arrests were first announced on February 25, 2015, is scheduled to be arraigned on Wednesday, April 8, 2015 at 2 p.m. before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; William J. Bratton, Commissioner, New York City Police Department (NYPD); and Raymond R. Parmer, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York.

As alleged in the superseding indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Kasimov’s co-defendants, came to the attention of law enforcement after posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then onward to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on February 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul, Turkey. Juraboev had previously purchased a plane ticket to travel from New York to Istanbul and had been scheduled to leave the United States in March 2015.

Working closely with co-defendant Abror Habibov, Kasimov allegedly helped fund Saidakhmetov’s efforts to join ISIL. Kasimov and Habibov collected over $1,600 from multiple individuals for Saidakhmetov to use in Syria. Kasimov thereafter delivered the money to Saidakhmetov at Kennedy Airport shortly before Saidakhmetov was apprehended trying to board his flight in February. Additional investigation uncovered electronic messages in which Kasimov encouraged others to participate in violent jihad and made clear his role in facilitating the travel of foreign fighters to Syria.

“This defendant is the fourth Brooklyn resident charged as part of the same network of individuals who are alleged to have conspired and attempted to provide material support to ISIL,” stated United States Attorney Lynch. “Terrorist support networks like the one this defendant was involved in offer critical funding, travel logistics, and encouragement to persons seeking to join ISIL and other foreign terrorist organizations. We will remain vigilant in our efforts to stem the flow of foreign fighters to Syria and to disrupt and dismantle the networks, here and abroad, that support them.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region.

“Dilkhayot Kasimov allegedly attempted and conspired with others to provide material support to ISIL,” said Assistant Attorney General Carlin. “The National Security Division remains committed to holding accountable all who seek to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”

“Kasimov served as a money man in support of a co-defendant’s efforts to join ISIL,” said FBI Assistant Director-in-Charge Rodriguez. “He provided encouragement and facilitated travel for foreign fighters. As the recent series of cases indicate, we will pursue every lead and every person who succumbs to this radical agenda. It is my hope that these cases deter others from sharing Kasimov’s fate: being under arrest and in trouble with the law.”

“Money is the oxygen that fuels terrorism. This investigation proves again that we will leave no stone unturned to disrupt the finance, support, or membership in terrorist organizations like ISIL,” said NYPD Commissioner Bratton.

“These arrests are the culmination of an extensive joint law enforcement effort to disrupt the recruitment of alleged terrorist sympathizers,” said Raymond R. Parmer Jr., special agent in charge, HSI New York. "ICE-HSI will continue to use its unique immigration and customs authorities to assist our domestic and international law enforcement partners to stop jihadists from supporting terrorist organizations such as ISIL.”

If convicted, the defendant faces a maximum sentence of 30 years in prison. The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Peter W. Baldwin are in charge of the prosecution, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section.

The Defendant:

DILKHAYOT KASIMOV

Age: 26

Nationality: Uzbeki

E.D.N.Y. Docket No. 15-CR-095 (WFK)

Earlier today, a criminal complaint was unsealed in federal court in Brooklyn charging Noelle Velentzas and Asia Siddiqui with conspiracy to use a weapon of mass destruction against persons or property in the United States. The defendants’ initial appearances are scheduled for this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

As alleged in the complaint, the defendants have repeatedly expressed their support for violent jihad. For instance, in or about 2009, Siddiqui wrote a poem in a magazine published by al-Qaeda in the Arabian Peninsula that exhorted readers to wage jihad and declared that there is “[n]o excuse to sit back and wait – for the skies rain martyrdom.” More recently, Velentzas, who has characterized al-Qaeda founder Usama Bin Laden as one of her heroes, declared that she and Siddiqui are “citizens of the Islamic State” – a reference to the foreign terrorist organization that is also known as Islamic State of Iraq and the Levant (ISIL). Less than two weeks ago, Velentzas, asked whether she had heard the news about the recent arrest of a former U.S. airman who had attempted to travel to Syria to wage jihad, stated that she did not understand why people were traveling overseas to engage in jihad when there were more opportunities of “pleasing Allah” in the United States.

Since at least August 2014, the defendants have allegedly plotted to construct an explosive device for use in a terrorist attack on American soil. In their self-proclaimed effort to “make history,” the defendants researched numerous explosive precursors. For instance, they researched and acquired some of the components of a car bomb, like the one used in the 1993 World Trade Center bombing; a fertilizer bomb, like the one used in the 1995 bombing of the federal building in Oklahoma City; and a pressure cooker bomb, like the one used in the 2013 Boston Marathon bombing. The investigation recently revealed that the defendants possessed propane gas tanks together with instructions from an online jihadist publication for transforming propane tanks into explosive devices.

“We are committed to doing everything in our ability to detect, disrupt, and deter attacks by homegrown violent extremists,” stated United States Attorney Lynch. “As alleged, the defendants in this case carefully studied how to construct an explosive device to launch an attack on the homeland. We remain firm in our resolve to hold accountable anyone who would seek to terrorize the American people, whether by traveling abroad to commit attacks overseas or by plotting here at home.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region, as well as to the NYPD Intelligence Bureau, for their assistance in the investigation.

“Velentzas and Siddiqui are alleged to have researched how to construct bombs as part of their conspiracy to use a weapon of mass destruction on American soil,” said Assistant Attorney General Carlin. “Identifying and disrupting such threats to public safety, whether at home or abroad, is the number one priority of the National Security Division and our partners in the law enforcement and intelligence communities. I want to thank the agents, analysts, and prosecutors who are responsible for today’s charges.”

FBI Assistant Director in Charge Rodriguez stated, “The defendants allegedly plotted to wreak terror by creating explosive devices and even researching the pressure cooker bombs used during the Boston Marathon bombing. We continue to pursue those who look to commit acts of terror and deter others who think they are beyond the reach of law enforcement. I’d like to thank Commissioner Bratton and the New York City Police Department for their partnership on this case and so many others.

“These defendants allegedly engaged in sustained efforts to obtain bomb-making instructions and materials, including using instructions provided by al-Qaeda’s online magazine,” said Police Commissioner Bratton. “The work of the NYPD’s Intelligence Bureau, its undercover Detective, and the seamless collaboration with the Special Agents and Detectives of the Joint Terrorism Task Force and United States Attorney for the Eastern District should serve as a model for early detection and prevention of terrorist plotting.”

If convicted, both defendants face a maximum sentence of life imprisonment. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Jennifer S. Carapiet are in charge of the prosecution, with assistance provided by Trial Attorney Clement McGovern of the Justice Department’s Counterterrorism Section.

The Defendants:

NOELLE VELENTZAS

Age: 28

ASIA SIDDIQUI

Age: 31

E.D.N.Y. Docket No. 15-M-303

 

       

Earlier today, Bloods street gang leader Ronald Herron, also known as “Ra Diggs,” was sentenced to 12 terms of life in prison plus 105 years. Herron was convicted on June 26, 2014, following a month-long jury trial, of all counts, including racketeering, murder in aid of racketeering, narcotics trafficking conspiracies, robbery, and firearms offenses. The charges arose from Herron’s leadership of a violent set of the Bloods Street Gang that operated in and around the Gowanus and Wyckoff Gardens housing developments in Brooklyn.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York City Police Department.

“For years, Ronald Herron unleashed brutal, unrelenting violence on his community while glorifying his criminal lifestyle as a crack-dealing gangster. Today’s sentence put an end to all of that, for good,” stated United States Attorney Lynch. “Herron styled himself a rap artist, but the evidence proved that he was a murderous thug who sought power through violence, fear, and intimidation. Let today’s sentence send a message to other gang members who terrorize their own communities: we and our federal and city law enforcement partners will not tolerate such heinous criminal conduct.” Ms. Lynch expressed her thanks to the agents and investigators from the FBI and NYPD who worked relentlessly to dismantle this violent gang and bring Herron to justice.

At trial, the government proved that Herron committed numerous crimes of violence in support of his drug trafficking operation around two New York City public housing communities located in the Boerum Hill section of Brooklyn. In 2001, Herron murdered Frederick Brooks. Herron was acquitted of that murder in state court after witnesses refused to testify because they were threatened by Herron and his associates. After being released from state custody and consolidating his control over the drug trade in Gowanus and Wyckoff Gardens, Herron murdered Richard Russo in 2008 and Victor Zapata in 2009.

Herron boasted about his exploits in songs and videos in which he identified himself as the leader of the “Murderous Mad Dogs” set of the Bloods Street Gang and claimed that he had previously “beat a body.” Presented with overwhelming evidence of Herron’s criminal conduct, including testimony from more than 50 witnesses, the jury rejected Herron’s claim that he was merely an aspiring rap artist and not a murderer.

Herron’s conviction followed dozens of successful prosecutions over the past decade conducted by the U.S. Attorney’s Office, along with the FBI and NYPD, of violent gang members and drug dealers from the Gowanus and Wyckoff Gardens housing developments.

The sentence was imposed by United States District Judge Nicholas G. Garaufis.

The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Shreve Ariail, Sam Nitze, and Rena Paul are in charge of the prosecution.

The Defendant:

RONALD HERRON, also known as “Ra Diggs”

Age: 33

E.D.N.Y. Docket No. 10 CR 615 (NGG)

A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Muhanad Mahmoud Al Farekh, an American citizen, with conspiracy to provide material support to terrorists. Farekh’s initial appearance is scheduled today before United States Magistrate Judge Viktor V. Pohorelsky. Farekh was deported from Pakistan to the United States and arrested pursuant to the pending warrant.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

As alleged in the complaint, Farekh conspired with others to provide material support to terrorists and specifically to provide personnel to be used in support of efforts to kill American citizens and members of the U.S. military abroad. In approximately 2007, Farekh, an individual named Ferid Imam, and a third co-conspirator departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. According to public testimony in previous EDNY criminal trials, in approximately September 2008, Ferid Imam provided weapons and other military-type training at an al-Qaeda training camp in Pakistan to three individuals – Najibullah Zazi, Zarein Ahmedzay, and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment. Ferid Imam has also been indicted for his role in the plot (see EDNY Docket Number 10-CR-019 (S-4) (RJD)).

“Today’s arrest demonstrates that there is no escape from the long reach of our law for American citizens who seek to do harm to our country on behalf of violent terrorists,” stated United States Attorney Lynch. “We will continue to use every tool at our disposal to bring such individuals to justice.”

“Muhanad Mahmoud Al Farekh is alleged to have conspired with others to provide material support to terrorists,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to be tireless in our pursuit of those who wish to harm the United States or its people. I would like to thank the many agents, analysts, and prosecutors who are responsible for the charges in this case.”

“Al Farekh allegedly provided material support to terrorists with every intention of becoming a martyr. Today, members of our military are safer because of the relentless investigative work by the FBI’s Manhattan-based Joint Terrorism Task Force,” said FBI Assistant Director in Charge Rodriguez.

“The NYPD will continue to work with our law enforcement partners to investigate and arrest individuals who choose to work alongside terrorist organizations and threaten the lives of Americans. We applaud the investigators and prosecutors whose efforts led to this arrest,” said Police Commissioner Bratton.

If convicted, the defendant faces a maximum sentence of fifteen years’ imprisonment.

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

The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad and Richard M. Tucker are in charge of the prosecution, with assistance provided by Trial Attorney Bridget Behling of the Justice Department’s Counterterrorism Section.

The Defendant:

MUHANAD MAHMOUD AL FAREKH

Age:

Nationality: United States

E.D.N.Y. Docket No. 15-MJ-021

Earlier today, AMA United Group, Malak Neseem Swares Boulos, and Amged Kamel Yonan Tawdraus pled guilty at the federal courthouse in Brooklyn, New York, to violating U.S. export regulations in connection with the attempted shipment of munitions samples from New York City to Egypt. AMA United Group, an Egyptian procurement agent, entered a guilty plea to violating the Arms Export Control Act. Boulos and Tawdraus, Egyptian Citizens and partners in AMA United Group, pled guilty to failing to file required export information relating to the international shipment of a landmine and multiple bomb bodies. According to court filings and facts presented during the plea proceeding, Boulos and Tawdraus were arrested after attempting to close a deal to acquire and export the items, which were included on the United States Munitions List and regulated by the United States Department of State.

The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security, Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; and Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office.

“These defendants failed to comply with the strict regulations that govern the export of dangerous munitions,” stated United States Attorney Lynch. “Today’s convictions should help ensure that those who refuse to follow these obligations should expect to face serious consequences, including individual and corporate penalties.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, and the U.S. Attorney’s Office for the Southern District of New York for its assistance.

“Investigating potential violations of the Arms Export Control Act is a top national security priority for HSI as it ensures military technology such as these landmines do not fall into the wrong hands” said Special Agent in Charge Parmer, HSI New York. “In this instance, our partnership with DCIS and the United States Attorney’s office sends a strong message that violating U.S. export laws will not be tolerated.”

“This investigation demonstrates the ongoing commitment that the Defense Criminal Investigative Service has to pursue individuals who are intent on acquiring and illegally exporting military grade munitions,” said Special Agent in Charge Rupert, DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners, such as HSI and the U.S. Attorney’s Office, to methodically and successfully investigate these types of allegations and protect America’s Warfighters.”

Beginning in February 2011, the defendants began trying to obtain munitions items on behalf of AMA United Group’s client, a factory in Cairo, Egypt. The items the defendants sought included a land mine as well as bomblet bodies and “trumpet liners,” two components that are integral to manufacturing the housings for explosives in an aerial warhead. In July 2011, the defendants traveled from Cairo to New York City to inspect the items. On July 1, 2011, the three principals of AMA United Group attempted to ship samples to its client in Egypt. Defendants Boulos and Tawdraus failed to file any export information in connection with the attempted shipment. The requirement to file accurate information regarding the contents of international shipments is one layer of regulatory oversight pertaining to protecting the U.S. national security and diplomatic interests.

Today’s pleas took place before United States District Judge Eric N. Vitaliano. When sentenced, defendants Tawdraus and Boulos face up to five years in prison, as well as criminal forfeiture and fines. Each of the defendants also faces export sanctions, including the denial of export privileges by the United States Department of Commerce, the United States Department of the Treasury, and the United States Department of State.

The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Seth DuCharme and David Pitluck are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.

The Defendants:

MALAK NESEEM SWARES BOULOS

Age: 43

Cairo, Egypt

AMGED KAMEL YONAN TAWDRAUS

Age: 33

Cairo, Egypt

E.D.N.Y. Docket No. 13-CR-612 (ENV)

 

       

Former New York City Police Officer Rex Maralit and his brother Wilfredo Maralit, a Customs and Border Protection Officer assigned to Los Angeles International Airport, were sentenced earlier today at the federal courthouse in Brooklyn to three years’ imprisonment to be followed by three years of supervised release for their roles in an illegal scheme to smuggle high-powered assault rifles, sniper rifles, pistols, and firearms accessories from the United States to the Philippines. The defendants pleaded guilty on June 12, 2014, before United States District Judge Allyne R. Ross to violating the Arms Export Control Act. A third brother, Ariel Maralit, resides in the Philippines and remains a fugitive.

The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Assistant Attorney General John P. Carlin; Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office; Delano A. Read, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

“These defendants violated their sworn duties to uphold the law, abusing their positions of trust to profit from the illegal export of extremely dangerous weapons,” stated Ms. Lynch. “Today’s sentences send a powerful message that criminal conduct by police officers, federal agents, and their confederates will not be tolerated, and that no one, least of all those entrusted to protect the communities and the country they serve, is above the law.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF, and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the District of New Jersey for their assistance.

Between January 2009 and September 2013, the defendants exported a variety of military-style firearms, along with high-capacity magazines and accessories for those weapons, from the United States to the Philippines where they were sold to overseas customers. Both Rex and Wilfredo Maralit used their official credentials and status to obtain and ship the weapons without first obtaining a license from the U.S. State Department. The firearms included the Barrett .50 caliber long-range semi-automatic rifle, the FN “SCAR” assault rifle, and high-capacity FN 5.7mm semi-automatic carbines and pistols which fire a cartridge that was specifically designed to penetrate body armor.

The Arms Export Control Act requires exporters of firearms to first obtain the approval of the United States State Department before shipping weapons overseas. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.

The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Justice Department’s National Security Division.

The Defendants:

REX G. MARALIT

Lawrenceville, New Jersey

Age: 46

WILFREDO MARALIT

Garden Grove, California

Age: 49

An indictment was unsealed today in United States District Court for the Eastern District of New York charging Jerry Campora, Jr., a resident of Setauket, New York, with eight counts of mail fraud. Campora was arraigned this afternoon before United States District Judge Joanna Seybert at the federal courthouse in Central Islip. He was released on a $50,000 bond and ordered not to file any liens or affidavits in other jurisdictions without the prior approval of the court.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

According to the indictment and related court proceedings, beginning in 2010, Campora was named as a defendant in a foreclosure action in Suffolk County Supreme Court, due to his failure to pay the mortgage on his house located in Seatauket, New York. Campora represented himself in the foreclosure action and, after several of Campora’s pro se motions were dismissed, his house was ordered to be sold at auction. Thereafter, in October and November of 2013, in retaliation for the adverse decision in the foreclosure action, Campora filed fraudulent affidavits and liens through the mail with the Lamar County Superior Court Clerk’s Office in Barnesville, Georgia, against three Suffolk County state court judges and one private attorney appointed by the court to serve as a referee in Campora’s foreclosure action. The affidavits purported to confer legal rights upon Campora against the victims and also claimed that the victims admitted to having illegally violated Campora’s rights. Campora then cited these fraudulent affidavits as serving as a legal basis to further file false liens with the Lamar County Superior Clerk’s Office against each of the four victims in an amount in excess of $1,500,000.

“We will continue to aggressively identify and pursue those who would manipulate the judicial system through private vendettas in the hope of causing financial hardship to public servants with whom they disagree,” stated Unites States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the New York State Court System for its assistance and cooperation in this investigation.

FBI Assistant Director-in-Charge Rodriguez stated, “Mr. Campora allegedly used the legal system to retaliate against Suffolk County Court judges who had ordered a foreclosure action on his house. Vendettas against members of the judiciary have no place in our legal system.”

The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Campora faces a statutory maximum sentence of 30 years in prison and a fine of up to $1,000,000 on each of the eight counts.

The government’s case is being prosecuted by Assistant United States Attorney Raymond A. Tierney.

The Defendant:

JERRY CAMPORA, JR.

Age: 46

Setauket, New York

E.D.N.Y. Docket No. 15-CR-123

An indictment was unsealed today in United States District Court for the Eastern District of New York charging Frederick Ippolito, a resident of Syosset, New York, with six counts of tax evasion. Ippolito is the Commissioner of Planning and Development for the Town of Oyster Bay (TOB). Ippolito is scheduled to be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the federal courthouse in Central Islip.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).

According to the indictment, from 2008 to 2013, Ippolito received over $2 million in consulting fees from Carlo Lizza & Sons, Paving, Inc., a company located in Old Bethpage, New York, as well as from a principal of that company. Ippolito allegedly evaded taxes on that income by willfully failing to report it on his personal tax returns or the tax returns of entities he controlled. Ippolito is the President of CAI Associates, LTD, a consulting and snow removal business, and a former officer of CAI Restaurant, Inc., d/b/a Christiano’s, in Syosset, New York. If convicted, Ippolito faces a statutory maximum sentence of five years in prison and a fine of up to $250,000 on each of the six counts.

“Tax evasion victimizes every taxpaying American,” stated United States Attorney Lynch. “We and our partners in the IRS will continue to aggressively identify and pursue all individuals – including public officials – who evade their taxes. No one is above the law.”

IRS-CI Special Agent-in-Charge Kitchen stated, “The public expects their elected and appointed officials to obey the same laws as it does. IRS-Criminal Investigation is committed to ensuring that everyone pays their fair share. Public officials will be held accountable for their actions before they took office, while they serve the public, and after they leave office. They must meet their tax obligations just like the people they serve.”

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

The government’s case is being prosecuted by Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney.

The Defendant:

FREDERICK IPPOLITO

Age: 76

Syosset, New York

E.D.N.Y. Docket No. 15-CR-129

A twenty-four-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging Andrew Barrett, a licensed pharmacist, with health care fraud, filing false claims, unlawful monetary transactions, filing false personal tax returns, and the filing of and assisting in the preparation of false corporate tax returns.1 Barrett will be arraigned at 2:00 pm today before U.S. Magistrate Judge Steven M. Gold at the U. S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Scott Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI).

“As alleged in the indictment, instead of using his pharmacist license to provide valid relief to those in need, Andrew Barrett used it as a license to steal from publicly-funded health care programs and then lied about it on his tax returns,” stated United States Attorney Lynch. "Today’s indictment makes clear that this Office will hold accountable corrupt pharmacists who seek to enrich themselves at the expense of tax-payer funded programs."

“Defrauding Medicare and Medicaid is a serious crime that has consequences for the entire U.S. economy. As alleged, Barrett stole more than $5 million from Medicare and Medicaid for his own personal gain. As evidenced by today’s indictment, the FBI and its partners will vigorously pursue those who seek to steal from taxpayer-funded programs,” stated FBI Assistant Director-in-Charge Rodriguez.

“The alleged actions by Andrew Barrett diverted scarce taxpayer funds from the Medicare and Medicaid prescription drug programs just for personal enrichment,” said HHS-OIG Special Agent in Charge Lampert. “The HHS Office of Inspector General, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health programs in such greed-fueled schemes.”

IRS-CI Special Agent-in-Charge Kitchen stated, “Individuals who steal from government programs often take the added risk of committing tax crimes in the process, exposing themselves to further criminal sanctions. As the federal agency responsible for investigating criminal tax violations, IRS-Criminal Investigation works with our law enforcement partners on complex financial fraud investigations, with the goals of protecting the American taxpayer and seeing that everyone pays their fair share.”

As alleged in the indictment, from January 2011 to December 2012, Barrett operated pharmacies in Bronx, Rockland, and Queens counties in New York State. From his Queens pharmacy, Barrett fraudulently billed Medicare and Medicaid more than $5 million for prescription medications that he never dispensed to patients. Barrett used more than $4 million of his ill-gotten gains to buy drugs for his pharmacies in the Bronx and Rockland counties. Barrett also siphoned off for personal expenses more than $2.5 million from the Bronx and Rockland pharmacy accounts while falsely claiming those funds as business expenses on his personal and corporate tax returns.

The government’s case is being prosecuted by Assistant United States Attorneys William P. Campos and Karin Orenstein.

This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.

The Defendant:

ANDREW BARRETT

Age: 55

New City, New York

E.D.N.Y. Docket No. 15-CR-103 (KAM)

____________________________________________________________________________

1 The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

 

       

Yesterday, following a three-week trial, the defendants Yasser Ashburn, Jamal Laurent, and Trevelle Merritt were found guilty by a jury in Brooklyn federal court of racketeering and racketeering conspiracy, including as racketeering acts the murders of Courtney Robinson, Brent Duncan, and Dasta James, and related crimes. The defendants were members of, and committed crimes with, a violent set of the Folk Nation street gang.

The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

“Today’s verdict is a victory for the residents of the Ebbets Field Houses and the Brooklyn community,” stated United States Attorney Lynch. “For far too long, the defendants and their fellow gang members terrorized this community, murdering innocent young men and committing other violent crimes in their attempt to control what they mistakenly believed was their turf. These defendants will now be held to account for their crimes.” Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation and the New York City Police Department, the agencies responsible for leading the government’s investigation.

“Street gangs breed dangerous allegiances that ultimately lead to turf battles, bloodshed, and other senseless acts of aggression against rival gang affiliates and innocent members of the public. The residents of the Ebbets Field Houses should not be plagued by this type of violent criminal behavior. Everyone has a right to live in a society that is free from violence, and today we are one step closer to restoring a sense of security for the residents of this community,” stated FBI Assistant Director-in-Charge Rodriguez.

For almost a decade, the defendant Yasser Ashburn led a Folk Nation set of 20 to 25 members that operated in the Ebbets Field Houses, a New York City public housing community in the Crown Heights neighborhood of Brooklyn. From approximately 2007 until their arrests in 2011 and 2012, the defendants were responsible for numerous acts of gang-related violence, including homicides, non-fatal shootings, and robberies in and around Crown Heights and Flatbush, and elsewhere in the tri-state area.

The government’s evidence at trial established that on April 20, 2008, a fight erupted at a birthday party held in an apartment at the Ebbets Field Houses. After Courtney Robinson entered the fight to protect his nephew who was being beaten by Folk Nation gang members, Ashburn left the melee and retrieved a handgun from the building stairwell where the gang typically stored weapons. Ashburn then returned to the apartment and shot Robinson at point blank range in the back, killing him.

Two years later, on June 19, 2010, the defendant Jamal Laurent shot and killed 18-year-old Brent Duncan while Duncan sat in his car outside party in Brooklyn. Laurent subsequently told a friend that he shot Duncan because Duncan was a member of the rival Crips gang, although no evidence established that Duncan actually belonged to that gang. Two days after the murder, NYPD officers responded to a shots-fired call at Laurent’s residence on Schenectady Avenue in Brooklyn. There, the officers found that a bullet had been fired from Laurent’s bedroom through an adjoining wall into the room of another tenant in the building. The officers entered Laurent’s room and recovered a 9-millimeter Smith and Wesson handgun hidden in a slit in the box-spring of Laurent’s bed. The NYPD Firearms Analysis Section subsequently determined that it was the same gun that Laurent had used to murder Duncan.

During a three-week period in January 2011, the defendant Trevelle Merritt and fellow gang members participated in a robbery spree that culminated in murder. In the first two robberies, Merritt and others robbed two residents of the Ebbets Field Houses of their cell phones. On January 28, 2011, Merritt, Laurent, and another man attempted to rob Dasta James at his residence on McKeever Place in Brooklyn. During the course of the robbery, James was shot in the back and head. He was then taken to Kings County Hospital, where he died.

When sentenced, on July 10, 2015, the defendants Yasser Ashburn and Jamal Laurent face mandatory life imprisonment, and the defendant Trevelle Merritt faces ten years to life.

The government’s case is being prosecuted by Assistant United States Attorneys Darren LaVerne, M. Kristin Mace, and Margaret Lee.

The Defendants:

YASSER ASHBURN, a/k/a “Indio,” “Swerve,” “Supa Swerve 6,” and “Yassen Ashburn”

Age: 31

Brooklyn, NY

JAMAL LAURENT, also known as “Tails”

Age: 25

Brooklyn, NY

TREVELLE MERRITT, also known as “Tiger”

Age: 22

Brooklyn, NY

E.D.N.Y. Docket No. 11-CR-303 (NGG)

Yesterday at the federal courthouse in Brooklyn, Fausto Bonifaz pled guilty to coercing and enticing a minor to engage in sexual activity. The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.

Bonifaz began to sexually abuse the victim in late 2009 when she was 12 years old. Over the course of the next year, he sexually assaulted her on a weekly basis at the victim’s home at the Fort Hamilton Army Base. At the plea proceeding, Bonifaz admitted that he sexually abused the victim. Bonifaz was a civilian who was admitted to the base as a visitor because he was friends with the victim’s mother. The defendant’s actions were uncovered years later when the victim reported the abuse to a counselor.

In announcing the guilty plea, United States Attorney Lynch expressed her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.

The plea proceeding took place before Chief United States Magistrate Judge Steven M. Gold. When sentenced, Bonifaz faces a mandatory minimum term of at least ten years in prison and up to a maximum of life, as well as restitution, a fine of up to $250,000, and mandatory registration as a sex offender.

The government’s case is being prosecuted by Assistant United States Attorney Tiana Demas.

This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by the United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.

The Defendant:

Name: FAUSTO BONIFAZ

Age: 39

Queens, New York

Yesterday, a federal grand jury in Brooklyn returned a two-count indictment charging Tairod Nathan Webster Pugh, an American citizen and veteran of the United States Air Force, with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization, and obstruction and attempted obstruction of justice. The defendant will be arraigned on the indictment tomorrow at 11 a.m. before Judge Nicholas G. Garaufis at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and William J. Bratton, Commissioner, New York City Police Department.

“Born and raised in the United States, Pugh allegedly turned his back on his country and attempted to travel to Syria in order to join a terrorist organization,” stated U.S. Attorney Lynch. “We will continue to vigorously prosecute extremists, whether based here or abroad, to stop them before they are able to threaten the United States and its allies.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a large number of federal, state, and local agencies from the region. Ms. Lynch also thanked the U.S. Department of State, U.S. Customs and Border Protection, the United States Attorney’s Office for the District of New Jersey, the Asbury Park, New Jersey Police Department, and the Neptune, New Jersey Police Department for their assistance.

“Pugh, an American citizen and former member of our military, allegedly abandoned his allegiance to the United States and sought to provide material support to ISIL,” said Assistant Attorney General Carlin. “Identifying and bringing to justice individuals who provide or attempt to provide material support to terrorists is a key priority of the National Security Division.”

“As alleged, Pugh, an American citizen, was willing to travel overseas and fight jihad alongside terrorists seeking to do us harm. United States citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions. We will continue to work with our partners, both here and abroad, to prevent acts of terrorism. This investigation demonstrates the importance of law enforcement coordination and collaboration here and around the world,” stated FBI Assistant Director-in-Charge Rodriguez.”

“We thank the members of the NYPD Joint Terrorism Task Force and our Federal law enforcement partners for their work in this case and for their tireless efforts to identify threats of terrorism here and abroad. It is this type of collaboration that results in swift investigative work to stop individuals such as this from making any further contribution to terrorist organizations such as ISIL,” said Police Commissioner Bratton.

As alleged in the complaint, indictment, and other court filings, the defendant served in the Air Force as an avionics instrument system specialist and received training in the installation and maintenance of aircraft engine, navigation, and weapons systems. After leaving the Air Force, the defendant worked for a number of companies in the United States and Middle East as an avionics specialist and airplane mechanic. The defendant lived abroad for over a year before his arrest in this case.

Earlier this year, weeks after being fired from his last job as an airplane mechanic based in the Middle East, the defendant attempted to join ISIL. On January 10, 2015, the defendant traveled from Egypt to Turkey in an effort to cross the border into Syria to join ISIL and fight violent jihad. Turkish authorities denied the defendant entry, however, and sent him on a return flight to Egypt. Upon his arrival in Egypt, the defendant was carrying multiple electronic devices, including four USB thumb drives that had been stripped of their plastic casings and an iPod that had been wiped clean of data. The defendant also had a cellular telephone that contained, among other things, a photograph of a machinegun. The defendant was soon thereafter deported to the United States.

On January 14, 2015, JTTF agents obtained a search warrant for the defendant’s electronic devices, including his laptop computer. Subsequent exploitation of the laptop revealed, among other things, the following:

- recent Internet searches for “borders controlled by Islamic state”,

- recent Internet searches for “who controls kobani,” “kobani border crossing,” and “jarablus border crossing,” all references to Syrian cities under ISIL’s control near the Turkish border,

- a chart of crossing points between Turkey and Syria indicating the areas on the Syrian side of the border controlled by ISIL and other groups, and

- Internet searches for “Flames of War,” an ISIL propaganda video, as well as downloaded videos, including one showing ISIL members executing prisoners.

The defendant was arrested pursuant to a federal complaint on January 16, 2015, in Asbury Park, New Jersey, and he has been in custody ever since. After the defendant’s arrest, JTTF agents seized and later obtained warrants to search two backpacks that the defendant had when he was overseas. Agents recovered from the backpacks, among other things: two compasses, a solar-powered flashlight, a solar-powered power source, shards of broken USB thumb drives, a fatigue jacket, and camping clothes.

If convicted, the defendant faces a maximum sentence of 35 years in prison. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by Assistant United States Attorneys Samuel P. Nitze and Tiana A. Demas, with assistance provided by Trial Attorneys Larry Schneider and Andrew Sigler of the Counterterrorism Section of the Department of Justice.

The Defendant:

TAIROD NATHAN WEBSTER PUGH

Age: 47

Neptune, New Jersey

E.D.N.Y. Docket Nos. 15-MJ-044 and 15-CR-116 (NGG)

Earlier today, a criminal complaint was unsealed charging Yehuda Katz, a New York City Police Department (NYPD) Auxiliary Deputy Inspector assigned to the 70th Precinct in Brooklyn, with executing a scheme to hack into a restricted NYPD computer and other sensitive law enforcement databases. The defendant was arrested earlier this morning and will have his initial appearance this afternoon at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge James Orenstein.

The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and William J. Bratton, Commissioner of the New York City Police Department.

“The defendant allegedly used his position as an auxiliary officer to hack into restricted computers and networks in order to obtain the personal information of thousands of citizens in a scheme to enrich himself through fraud,” stated United States Attorney Lynch. “The threat posed by those who abuse positions of trust to engage in insider attacks is serious, and we will continue to work closely with our law enforcement partners to vigorously prosecute such attacks.” Ms. Lynch expressed her grateful appreciation to the FBI and the NYPD’s Internal Affairs Bureau, which worked together closely to investigate the case.

“As alleged, Katz illegally accessed sensitive law enforcement computer systems for his own personal gain. This type of behavior betrays the public’s trust and cannot be tolerated. We entrust our public servants to safeguard confidential information and not prey upon victims, and we will continue to work with our partners to prosecute those who engage in this type of criminal activity,” stated FBI Assistant Director-in-Charge Rodriguez.

“This case is a clear example of the collaborative effort between federal prosecutors, the FBI, and the NYPD’s Internal Affairs Bureau to weed out individuals who allegedly violate the Department’s trust,” said Police Commissioner Bratton.

According to the complaint, the defendant surreptitiously installed multiple electronic devices in the Traffic Safety Office of the NYPD’s 70th Precinct that allowed him to remotely access restricted NYPD computers and law enforcement databases, including one maintained by the FBI, that he did not have permission to access. One of the electronic devices installed by the defendant contained a hidden camera that captured a live image of the Traffic Safety Office and was capable of live-streaming that image over the Internet. The second electronic device was connected to one of the computers in the Traffic Safety Office and allowed the computer to be accessed and controlled remotely.

As alleged in the complaint, investigators with the NYPD’s Internal Affairs Bureau and the FBI determined that the devices had been used to allow the defendant to remotely log onto an NYPD computer using usernames and passwords belonging to NYPD uniformed officers. Thereafter, the defendant ran thousands of queries in databases, including a restricted law enforcement database maintained by the FBI, for information, including the personal identifying information of victims, related to traffic accidents in the greater New York City area.

The complaint further alleges that, after the defendant accessed the NYPD computer and law enforcement databases, he contacted individuals who had been involved in traffic accidents and falsely claimed to be, among others, an attorney with the fictitious “Katz and Katz law firm” who could assist them with potential legal claims. Letters sent by the defendant to accident victims included claims such as “I can advise you with 100% confidence that I can resolve this claim in your favor,” and “My fee is 14% only when you collect. And I know that you will collect.” All told, according to the complaint, between May and August 2014, the defendant ran over 6,400 queries in sensitive law enforcement databases that he accessed remotely via the compromised NYPD computer for information related to traffic accidents.

The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 10 years.

The government’s case is being prosecuted by Assistant United States Attorneys Samuel P. Nitze and Peter W. Baldwin, with assistance provided by the Computer Crime and Intellectual Property Section of the Department of Justice.

The Defendant:

YEHUDA KATZ

Age: 45

Brooklyn, New York

E.D.N.Y. Docket No. 15-MJ-229

Earlier today, William C. Lange, the founder of Harbor Funding Group, Inc. (“HFGI”) and Black Sand Mine, Inc. (“BSMI”), was sentenced in federal court in Brooklyn to 262 months’ imprisonment. The defendant was remanded after sentencing. In September 2014, Lange pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his leadership role in defrauding: (i) developers and their clients in areas devastated by Hurricane Katrina of more than $9 million through an advance fee scheme; and (ii) investors of almost $1 million through an Alaskan gold mine investment scheme. As part of the sentence, Lange was also sentenced to 3 years’ supervised release. The court will set restitution at a later date.

The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).

“William Lange was a con man who stole more than $9 million from people looking to rebuild areas of the country that had been ravaged by the destructive force of Hurricane Katrina. He enticed his victims by promising financing through the use of loan documents and escrow agreements that were not worth the price of the paper used to print them. Today’s sentence sends a strong message to con men like Lange that they will be brought to justice and held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this six-year investigation and prosecution. Ms. Lynch also extended her appreciation to the United States Attorney’s Office for the Western District of Washington for their assistance in the case.

Lange, the Chief Executive Officer of HFGI and orchestrator of the advance fee scheme, told land developers and their clients seeking to rebuild areas devastated by Hurricane Katrina that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Lange’s representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Lange and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Lange and his co-conspirators stole more than $9 million from approximately 300 individuals. The $9 million was spent on, among other things, salaries, fishing and hunting trips for Lange and his son, remodeling and landscaping for Lange’s new house, three Harley-Davidson motorcycles, and other business ventures started by Lange.

After the $9 million was spent, Lange and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Lange and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Lange also concealed his own tarnished name and his leadership role in BSMI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Lange and his co-conspirators.

Today’s sentence was imposed by the Honorable Dora L. Irizarry, United States District Judge.

The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The Defendant:

WILLIAM C. LANGE

Age: 67

Gig Harbor, Washington

E.D.N.Y. Docket No. 10-CR-968 (DLI)

 

       

Earlier today, at the federal courthouse in Brooklyn, former New York City Police Officer Jose Tejada was sentenced to 18 years in prison by United States District Judge John Gleeson. Tejada was convicted after a six-week jury trial in November 2013 of two counts of obstruction of justice and after a two-week jury trial in June 2014 of conspiring to commit Hobbs Act robberies and conspiring to distribute cocaine and heroin.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and William J. Bratton, Commissioner of the New York City Police Department (NYPD).

Tejada was a 17-year veteran of the NYPD who, at the time of the criminal conduct, was assigned to the 28th Precinct in Harlem. This prosecution arose out of Tejada’s commission of multiple robberies and attempted robberies in Queens, Manhattan, and the Bronx in 2006 and 2007, some of which he committed while on duty, in uniform, and using an NYPD undercover vehicle.

“The defendant violated his sworn oath as a New York City police officer to protect and serve the citizens of New York by conspiring to commit armed robberies and to distribute narcotics stolen during those robberies.” stated United States Attorney Lynch. “Today’s sentence will send a message that no one – especially one sworn to uphold the law – is immune from prosecution if he engages in criminal acts.” Ms. Lynch expressed her thanks to the New York Drug Enforcement Task Force – comprising DEA special agents, NYPD officers, and New York State Police investigators – and the NYPD’s Internal Affairs Division, Police Impersonation Investigation Unit, which jointly led the investigation.

The evidence presented at the two trials showed that Tejada participated in multiple armed robberies and attempted robberies, which netted thousands of dollars in cash and multiple kilograms of cocaine.

In one such attempted robbery on Schley Avenue in the Bronx, Tejada -- while on duty and in uniform -- used his status as a police officer to demand and gain access to a private residence occupied by a husband and wife and their teenaged daughter. Tejada and two other robbers impersonating police officers mistakenly believed that the residence was a stash house for narcotics. In fact, the residents had no involvement in drug dealing. While Tejada and the other robbers unsuccessfully searched the premises for drugs, Tejada attempted to handcuff the male victim and brandished his NYPD-issued firearm in an effort to intimidate the innocent family.

In a robbery near 125th Street and Broadway in Manhattan, Tejada, fellow NYPD officer Jorge Arbaje-Diaz, and NYPD auxiliary officer Yvan Tineo pulled over an SUV, handcuffed the driver, and stole five kilograms of cocaine hidden inside the car.1 In another robbery on Seaman Avenue in Upper Manhattan, Tejada and Tineo robbed a drug supplier of three kilograms of cocaine at gunpoint.

In an incident outside an arrivals terminal at John F. Kennedy International Airport in Queens, Tejada, Arbaje-Diaz, and Tineo staged the arrest of a corrupt airline employee who was part of a scheme to smuggle narcotics into the United States on board incoming commercial flights. The staged arrest permitted the corrupt airline employee and the members of the robbery crew to steal at least five kilograms of cocaine from the drug organization to whom the corrupt airline employee was to deliver the drugs.

Tejada also supplied members of the robbery crew with NYPD gear and equipment, including an NYPD jacket, utility belt, and police radio, to enable members of the robbery crew to impersonate police officers during the drug robberies.

The evidence at the two trials also showed that Tejada searched confidential law enforcement databases to determine whether there were outstanding warrants for his own arrest, as well as for the arrest of other members of the robbery crew. Tejada then shared that information with his confederates in an effort to assist them in evading arrest.

Tejada’s conviction is one of the most recent of dozens of convictions in a set of interlocking cases brought in the Eastern District of New York against the members of violent drug robbery crews who impersonated police officers and frequently committed robberies with real police officers. Tejada is the third NYPD officer to be convicted in these cases. In addition, two NYPD auxiliary officers have been convicted as well. In total, 52 defendants who participated in this robbery crew have been convicted.

The government’s case is being prosecuted by Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Kenji M. Price.

The Defendant:

JOSE FELIX TEJADA

Age: 47

Mahopac, New York

E.D.N.Y. Docket No. 08-CR-242 (JG)

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1 Arbaje-Diaz was previously convicted of robbery conspiracy and narcotics distribution conspiracy, and was sentenced to 20 years’ imprisonment. Tineo was previously convicted of robbery conspiracy, narcotics distribution conspiracy, and unlawful use of a firearm, and is awaiting sentencing.

Earlier today in the federal courthouse in Central Islip, New York, Michael Meneses, a software programmer who formerly resided in Smithtown, Long Island, pleaded guilty to hacking into the computer network of a Long Island-based company that manufactures high-voltage power supplies. Today’s guilty plea proceeding took place before the Honorable Joseph F. Bianco, United States District Judge, Eastern District of New York.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.

“The defendant used his programming knowledge to hack into the computer network of his former employer and launch a campaign of digital retaliation,” stated United States Attorney Lynch. “The threat posed by disgruntled and former employees is serious, and we will continue to work closely with our law enforcement and private sector partners to vigorously prosecute insider attacks.” Ms. Lynch expressed her grateful appreciation to the FBI, the agency that led the government’s investigation.

According to court filings and facts presented at the plea hearing, the defendant was employed at the victim company from May 2008 through January 2012 as a software programmer and system manager. In that capacity, he developed and customized software that the company used to run its business operations, including its purchasing, inventory control, production planning, production, accounting, and sales. The defendant’s responsibilities gave him high-level access to the company’s computer network.

In December 2011, the defendant, who had voiced displeasure at having been passed over for promotions, tendered his resignation from the victim company and gave two weeks’ notice. Prior to tendering his resignation, the defendant created an unauthorized computer program that harvested the user logins and passwords of fellow company employees. Following termination of his network access, the defendant used the login credentials to remotely access the network from his home and from a hotel located near his new employer. In the weeks that followed, the defendant used these credentials to launch a campaign to inflict damage on his former employer by gaining unauthorized access to its network and sabotaging its business. For example:

The defendant deleted a line of code in a software program that the victim company used to calculate work order costs, leading the company to incorrectly calculate these costs.

The defendant remotely accessed the victim company’s network, read an email sent by his former supervisor to one of his former colleagues about a candidate for the defendant’s former position, created the email address “iamconcern2012@gmail.com,” and sent the candidate a message that stated, “Don't accept any position from [the victim company].”

The defendant gained unauthorized access to the victim company’s network and modified a database so it would appear to be March 2012 rather than February 2012. As a result, the company was unable to process routine transactions.

The defendant remotely accessed the victim company’s network and manually purged a purchase order table, which prevented the company from converting purchase requisitions to purchase orders.

The victim company incurred significant costs in investigating and remediating the damage caused by the defendant’s unauthorized access to its computer network.

When sentenced on July 7, 2015, the defendant faces up to 10 years in prison, as well as restitution and a fine.

The government’s case is being prosecuted by Assistant United States Attorneys Douglas M. Pravda and Charles N. Rose.

The Defendant:

MICHAEL MENESES

Age: 43

E.D.N.Y. Docket No. 13-CR-321 (JFB)

 

       

Earlier today, a superseding indictment was unsealed charging the defendant, Milton Contreras, along with previously-charged co-defendants, Byron Lopez and Oscar Welman Espinoza-Merino, with conspiracy to commit murder in-aid-of racketeering, murder in-aid-of racketeering, obstruction-of-justice murder, and firearms offenses1. If convicted, the defendant will face mandatory life imprisonment. Contreras, who was arrested this morning in Kansas City, Kansas, will be presented for arraignment later today at the United States Courthouse in Kansas City, Kansas.

The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Anthony Scandiffio, Deputy Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York Field Office (HSI); Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Explosives and Firearms, New York Field Division (ATF); and William J. Bratton, Commissioner, New York City Police Department.

“With this arrest, the Office brings another member of the MS-13 gang to justice for a brutal murder in one of our communities last year. The prosecution of these three defendants is a part of the Office’s ongoing commitment to dismantle MS-13, which for years has fomented violence and lawlessness in neighborhoods throughout Queens and Long Island.” Ms. Lynch thanked the Suffolk County Police Department for its assistance with the investigation; the United States Marshals Service Regional Fugitive Task Force for its assistance in locating Contreras; and the United States Attorney’s Office for the District of Kansas for its assistance with the arraignment.

As alleged in court documents, Contreras is a member of the Brentwood, Long Island chapter of the violent street gang La Mara Salvatrucha, also known as “MS-13.” On February 25, 2014, Contreras, Espinoza-Merino, and Lopez directed the victim, fellow gang member Sidney Valverde, to travel to Long Island under the false pretense that they needed him to assist in gang business there. In fact, the co-conspirators planned to kill Valverde because they believed that he was providing information about the gang’s activities to federal law enforcement. After Valverde traveled to Long Island, the co-conspirators shot him in the back of the head and left his body on Miller Place Beach in Suffolk County, where it was discovered by a beachcomber approximately two weeks later.

The indictment of Contreras is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous chapters, or “cliques,” throughout the United States, MS-13 has a significant presence in Queens and is the largest street gang in Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 20 murders in the Eastern District of New York and has convicted more than 35 MS-13 members in connection with those murders.

The government’s case is being prosecuted by Assistant United States Attorneys Darren A. LaVerne and Alixandra E. Smith.

The Defendant:

MILTON CONTRERAS, also known as “Diabolico”

Age: 19

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

Gilbert Fiorentino, 54, and Carl Fiorentino, 57, both of Coral Gables, Florida, were sentenced yesterday in Federal Court in the Southern District of Florida, in connection with their participation in an illegal scheme to obtain more than $11 million dollars in kickbacks and other benefits, and to conceal this illicit income from the IRS, while employed as senior executives at Systemax, Inc. (“Systemax”) and its subsidiary, TigerDirect, Inc. (“TigerDirect”). Carl Fiorentino was sentenced to 80 months’ imprisonment. Gilbert Fiorentino was sentenced to 60 months’ imprisonment. A hearing to determine the remaining amount of restitution owed to Systemax by the defendants, who are brothers, has been scheduled for April 3, 2015.

On December 2, 2014, Carl Fiorentino pleaded guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion, and Gilbert Fiorentino pleaded guilty to one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the Internal Revenue Service.

The sentences were announced by Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Loretta E. Lynch, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Kelly R. Jackson, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office.

U.S. Attorney Wifredo A. Ferrer stated, “Gilbert and Carl Fiorentino hid their ill-gotten financial gains from the IRS and the shareholders of Systemax. They violated their positions of trust by accepting illegal kickbacks, driving up the price of the consumer electronics and passing the price increase to the consumer. Yesterday’s sentences demonstrate our commitment to root out corporate fraud and enforce the laws that protect investors in financial markets.”

“For years, the brothers Fiorentino financed their luxury lifestyles with illicit kickbacks, all the while concealing their fraudulent gains from the shareholders of Systemax and the IRS. Such illegal self-enrichment, at the expense of a publicly-traded corporation and the IRS, cannot be tolerated,” stated United States Attorney Lynch. “Yesterday’s sentences should serve as a stern reminder that those who commit corporate fraud will be held accountable.”

Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, stated, “The Fiorentinos financed their extravagant lifestyle with $11 million in kickbacks. These kickbacks paid for, among other things, a waterfront Florida mansion. But the excess ends today. This sentence should put anyone who plans to shakedown shareholders on notice.”

IRS-CI Special Agent-in-Charge Kelly R. Jackson stated, “These high-ranking corporate officials undermined the process of fair and open competition and broke the law when they obtained unlawful kickbacks. They then took steps to hide these kickbacks from Systemax and the IRS. Yesterday’s sentencing sends a clear message to other corporate officials that this type of criminal behavior will be punished. IRS Criminal Investigation will continue to work with its law enforcement partners to investigate corporate officers who misuse their positions of trust and violate the tax laws.”

Systemax had its principal place of business in Port Washington, New York, and sold personal computers and other consumer electronics through its websites, retail stores, and direct mail catalogs including TigerDirect, CompUSA, and Circuit City. In fiscal year 2010, Systemax had annual sales revenue of approximately $3.6 billion according to its public filings. Gilbert Fiorentino was a director of Systemax and was the Chief Executive Officer of its Technology Product Group, including its subsidiary TigerDirect. Carl Fiorentino was the former president of TigerDirect. Both defendants worked at TigerDirect’s Miami offices before they were terminated on April 18, 2011.

As senior executives of Systemax and TigerDirect, Gilbert Fiorentino and Carl Fiorentino had responsibility for, among other things, purchasing and sourcing hundreds of millions of dollars’ worth of computer and electronics items for Systemax and its various operations. Gilbert Fiorentino and Carl Fiorentino conspired with each other and third parties to obtain unlawful kickbacks in exchange for steering business to companies that paid the kickbacks. For example, Carl Fiorentino received millions of dollars in payments from one TigerDirect supplier, including more than $3 million to pay for his waterfront residence in Gables Estates and millions of dollars’ worth of luxury furniture, art, and high-end electronics. Gilbert Fiorentino received hundreds of thousands of dollars in payments. These included deliveries of gold coins, cash handed over in the parking lot of the Miami offices of TigerDirect, and furniture and other goods and services delivered to his Gables Estates waterfront home.

In connection with this scheme, Carl and Gilbert Fiorentino filed false United States Individual Income Tax Returns and also regularly signed conflict of interest questionnaires in which they falsely and fraudulently concealed from Systemax their receipt of cash and other remuneration from vendors who did business with the company. In doing so, they mislead Systemax’s auditors and prevented them from performing accurate reviews and audits of the company’s books, records, and accounts. Additionally, when Carl Fiorentino learned that he was under investigation by the government, he obstructed justice by instructing witnesses to lie to federal authorities to conceal his criminal conduct.

This case was originally investigated by the U.S. Attorney’s Office for the Eastern District of New York with the assistance of the FBI New York Field Office and the IRS-CI Miami Field Office. Carl Fiorentino was previously charged in the Eastern District of New York on June 18, 2013, with conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, and money laundering. The case involving Carl Fiorentino was transferred to the Southern District of Florida by court order on January 6, 2014.

The sentence was imposed by United States District Judge Jose E. Martinez.

The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy of the Southern District of Florida and Whitman G.S. Knapp of the Eastern District of New York.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement and investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

Earlier today, following a two-week trial, Abid Naseer, a Pakistani national who joined al-Qaeda and plotted to commit a terrorist attack in the United Kingdom, was found guilty by a jury in Brooklyn federal court of providing material support to al-Qaeda, conspiring to provide material support to al-Qaeda, and conspiring to use a destructive device in relation to a crime of violence. The evidence at trial established that the defendant and his accomplices came within days of executing a plot to conduct an attack on a busy shopping mall located in the city center of Manchester, United Kingdom in April 2009. The planned attack, which also targeted the New York City subway system and a newspaper office in Copenhagen, Denmark, had been directed by and coordinated with senior al-Qaeda leaders in Pakistan. Naseer is the eighth defendant to face charges, and the fourth to be convicted, in Brooklyn federal court related to the al-Qaeda plot, which also involved Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, the three members of the cell that targeted New York City.

The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

“This al-Qaeda plot was intended by the group’s leaders to send a message to the United States and its allies,” stated United States Attorney Lynch. “Today’s verdict sends an even more powerful message in response: the United States will stop at nothing in order to hold those who plot to kill and maim on behalf of terrorist groups accountable for their grievous crimes.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which led the investigation and comprises a large number of federal, state, and local agencies from the region. She also sent her appreciation to the Internal Revenue Service–Criminal Investigation, New York, the U.S. Marshal Service, Brooklyn, and the law enforcement authorities in the United Kingdom and Norway, including the Greater Manchester Police, the British Security Service, and the Norwegian Police Security Service, for their outstanding assistance with the case.

“Abid Naseer was part of an al Qaeda conspiracy that targeted Western countries, including the United States and the United Kingdom, for terrorist attack,” said Assistant Attorney General Carlin. “His conviction reflects our dedication to identifying and holding accountable those who seek to target the United States and its allies. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”

FBI Assistant Director-in-Charge Rodriguez stated, “Naseer knowingly and willingly conspired with others to carry out a destructive plot on behalf of al-Qaeda. The wheels were set in motion, and he and his accomplices were prepared to execute their plan. Those who pledge allegiance to terrorists and terrorist organizations throughout the world will be brought to justice, and every effort will be made to protect Americans and our interests throughout the world. The FBI will continue to work with our local and international partners to mitigate the threat of global terrorism.”

“The Abid Naseer case demonstrates that terrorists who target the U.S. and its allies will be brought to justice, no matter where they are. This investigation involved leads from the streets of Manchester, England, to New York City, to Usama Bin Laden’s hidden lair in Pakistan. I want to thank the U.S. Attorney for the Eastern District and the members of the N.Y. FBI-NYPD Joint Terrorism Task Force for the work that led to this successful prosecution,” said Police Commissioner Bratton.

In approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Zazi, and Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City. Those al-Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad,” who was located in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on February 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.

The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” had also been communicating with the defendant earlier in 2009. The evidence at trial demonstrated that the defendant and his Pakistani accomplices had been dispatched by al-Qaeda to the U.K. in 2006 in order to begin preparations for an attack in that country. The defendant and his co-conspirators entered the U.K. on student visas but then immediately dropped out of the university in which they had enrolled. The defendant, like Zazi, returned briefly to Peshawar in November 2008, at the same time Zazi and his co-conspirators were receiving weapons and explosives training from al-Qaeda in that region. After returning to the U.K., the defendant sent messages back and forth to the same email account that “Ahmad” was also using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, al-Qaeda’s then-head of external operations. In the messages, the defendant used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, the defendant told “Ahmad” that he was planning a large “wedding” for numerous guests during the upcoming Easter weekend, and that “Ahmad” – whom he called “Sohaib” – should be ready. Notably, Zazi testified that Ahmad had instructed him to use the same code of “marriage” to refer to the planned attack on the New York City subway, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009 to conduct the attack.

On April 8, 2009, the defendant and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes as well as an internet café used by the defendant to send his messages to Ahmad, where they seized a large volume of electronic media. As demonstrated at trial, a forensic review of that electronic media revealed that the defendant had downloaded several jihadi nasheeds, or anthems, calling for “death in large numbers.” A document recovered from the raid on Usama bin Laden’s compound in May 2011 contained a letter from Saleh al-Somali to Bin Laden, written on April 16, 2009, that discussed the defendant and his accomplices’ arrests in the U.K.

On January 30, 2012, three defendants were also convicted in a Norwegian court of plotting a similar terrorist attack in Denmark as part of the same overall multinational al-Qaeda conspiracy. During that trial, the United States made available to the Norwegian prosecutors three witnesses who also pleaded guilty to terrorism offenses in the Eastern District of New York: Zazi, Ahmedzay, and Bryant Neal Vinas. Zazi and Ahmedzay again testified in the trial against Naseer.

The defendant faces up to life imprisonment when he is sentenced by the Honorable Raymond J. Dearie.

The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Celia A. Cohen, and Michael P. Canty, with assistance provided by the Justice Department’s National Security Division and Office of International Affairs.

The Defendant:

ABID NASEER

Age: 28

E.D.N.Y. Docket No. 10-CR-019 (RJD)

On Friday, February 27, 2015, in federal court in Brooklyn, Bebars Baslan was sentenced to 36 years’ imprisonment for his attempt to drug and sexually abuse three young children: a 7-year-old, an 18-month-old, and 3-month-old infant, and for his possession of over 76,000 images and videos of child pornography. Baslan was convicted on July 24, 2014, following a two-week trial of traveling with the intent to engage in sexual acts with a child under twelve years of age, conspiracy to produce child pornography, attempted production of child pornography, and attempted coercion and enticement of a child to engage in illegal sexual conduct.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.

“Today, the defendant received just punishment for his depraved actions – a lengthy prison sentence that will protect other children from him and hopefully deter others from engaging in such crimes,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation and New York City Police Department, who investigated this case.

The evidence at trial showed that in January 2013, Baslan attempted to involve a friend in a plan to sexually abuse children. That friend went to law enforcement and agreed to co-operate under the direction of the FBI. Over the course of the next two months, the friend recorded the defendant and his girlfriend discussing plans to take sexually explicit photographs and videos of children as young as 3 months old. The defendant planned to exploit his girlfriend’s history of working with children to convince parents to allow her to babysit their children so that he could drug and sexually abuse the children.

The defendant’s plan ended in the government’s sting operation. As part of the sting, the friend offered the defendant and his girlfriend the opportunity to sexually abuse the friend’s two young children and 7-year-old niece at a Jersey City hotel. On March 19, 2013, the defendant gave the friend Benadryl and instructed him to give his niece an excessive dose in order to “knock her out” so that the defendant could sexually abuse her. Later that night, Baslan and his girlfriend traveled to the Jersey City hotel with an array of cameras to photograph the planned sexual abuse. They were arrested by FBI agents as they were about to enter the room they believed contained the drugged children.

The defendant was also sentenced by lifetime supervised release to follow his sentence of imprisonment. He will also be required to register as a sex offender.

The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith, Tiana Demas, and Robert Polemeni.

The Defendant:

Name: BEBARS BASLAN

Age: 37

Brooklyn, New York

E.D.N.Y. Docket No. 13-220 (RJD)

A civil complaint was filed today in federal court in Brooklyn to forfeit a century-old cubist painting by Pablo Picasso known as “La Coiffeuse” (in English, “The Hairdresser”). La Coiffeuse, which is owned by the French government, was reported stolen from a museum storeroom in Paris, France in 2001. When it was shipped to the United States from Belgium on December 17, 2014, the painting was falsely described as an “art craft” and “art craft toy” valued at 30 Euros. Upon its arrival in the United States, the shipment was detained by U.S. Customs and Border Protection (CBP), and the painting was subsequently seized by Homeland Security Investigations (HSI). The complaint alleges that the painting is stolen property that was smuggled into the United States contrary to law.

The complaint was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Anthony Scandiffio, Deputy Special Agent in Charge, U.S. Immigration and Customs Enforcement, HSI, New York.

“A lost treasure has been found,” stated United States Attorney Lynch. “Because of the blatant smuggling in this case, this painting is now subject to forfeiture to the United States. Forfeiture of the painting will extract it from the grasp of the black market in stolen art so that it can be returned to its rightful owner.” Ms. Lynch thanked the French government and the Centre Georges Pompidou for their assistance.

“The recovery of the La Coiffeuse sends a strong message to thieves that the market to sell stolen antiquities in the United States is drying up,” said HSI Deputy Special Agent in Charge Scandiffio. “HSI is committed to using its resources to successfully investigate and, more importantly, repatriate smuggled antiquities and other protected cultural property to their rightful owners.”

La Coiffeuse, painted by Picasso in 1911, is an oil-on-canvas painting that measures 33 by 46 centimeters. It was bequeathed to the National Museums of France by its former director, Georges Salles in 1966, and assigned to the collections of the Musée National d’Art Moderne in Paris, France. It was last publicly exhibited in Munich, Germany, where it was on loan to the Kunsthalle der Hypo-Kulturstiftung. Upon its return to Paris, La Coiffeuse was placed in the storerooms of the Centre George Pompidou. The painting was believed to be in storage until a loan request was received in 2001, and museum staff discovered that the painting was missing. In November 2001, the painting was reported as stolen to the French police. The painting’s location remained unknown until it arrived in the United States in December 2014.

The shipping label attached to the package containing La Coiffeuse described its contents as “Art Craft / 30 E / Joyeux Noel,” indicating that the package contained a low-value handicraft shipped as a holiday present. The commercial invoice shipped with the painting similarly described the contents as an “Art Craft / Toy” valued at 30 Euros, or approximately $37 U.S. dollars. The current market value of La Coiffeuse is estimated to be in the millions of dollars.

The government’s case is being handled by Assistant United States Attorney Karin Orenstein.

E.D.N.Y. Docket No. 15-CV- 1002

Earlier today, a criminal complaint was unsealed in federal court in Brooklyn charging Abdurasul Hasanovich Juraboev, Akhror Saidakhmetov, and Abror Habibov with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The initial appearances of Juraboev and Saidakhmetov are scheduled for later today before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. Habibov’s initial appearance will be held later today at the U.S. Courthouse, 300 North Hogan Street, Jacksonville, Florida.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).

As alleged in the complaint, Juraboev first came to the attention of law enforcement in August 2014 after he made a posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and Saidakhmetov devised a plan to travel to Turkey and then to Syria for the purpose of waging jihad on behalf of ISIL. Saidakhmetov, a resident of Brooklyn and a citizen of Kazakhstan, was arrested early this morning at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul, Turkey. Juraboev, a resident of Brooklyn and a citizen of Uzbekistan, had previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States next month. Habibov, a resident of Brooklyn and a citizen of Uzbekistan, helped fund Saidakhmetov’s efforts to join ISIL.

As alleged in the complaint, Juraboev was also prepared to engage in an act of terrorism in the United States if ordered to do so by ISIL, and Saidakhmetov intended to commit such an act if unable to travel abroad to join ISIL. In the August 2014 posting on the website that propagates ISIL’s ideology, Juraboev offered to kill the President of the United States if ordered to do so by ISIL. More recently, Saidakhmetov expressed his intent to buy a machine gun and shoot police officers and FBI agents if thwarted in his plan to join ISIL in Syria.

“The flow of foreign fighters to Syria represents an evolving threat to our country and to our allies,” stated United States Attorney Lynch. “As alleged in the complaint, two of the defendants in this case sought to travel to Syria to join ISIL but were also prepared to wage violent jihad here in the United States. A third defendant allegedly provided financial assistance and encouragement. We will vigorously prosecute those who attempt to travel to Syria to wage violent jihad on behalf of ISIL and those who support them. Anyone who threatens our citizens and our allies, here or abroad, will face the full force of American justice.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state, and local agencies from the region.

“The charges against Juraboev, Saidakhmetov and Habibov reflect our commitment to finding those who wish to provide material support to ISIL, as well as those committed to fighting on behalf of ISIL, either at home or abroad, and preventing them from doing so,” said Assistant Attorney General Carlin. “The National Security Division will continue to work to stem the flow of foreign fighters and financial resources to terrorist organizations operating in Iraq and Syria. I would like to commend all those whose tireless efforts helped bring these charges.”

“As alleged, the defendants looked to join the Islamic State of Iraq and the Levant by flying to Turkey in a vain attempt to evade detection. And one of the defendants was prepared to commit acts of terror here—in America—if he could not travel, to include killing FBI agents. The defendants violated the true tenants of their faith in pursuit of their radical, violent agenda. We rely on help from the community, the public, and religious leaders to be mindful of those who could be radicalized. We cannot do this alone,” said FBI Assistant Director-in-Charge Rodriguez.

“ISIL calls on its followers to come fight for the terrorist organization in Syria,” said Police Commissioner Bratton, “and in messages to followers outside Syria, ISIL has called on them to attack police, intelligence officers, or the military in their home countries including the United States. By pledging allegiance to ISIL, these defendants allegedly conspired to fight for a designated foreign terrorist organization, either in Syria or even New York.” Commissioner Bratton commended the work of the detectives and agents of the JTTF and the guidance of the U.S. Attorney for the Eastern District of New York throughout the investigation.

If convicted, each defendant faces a maximum sentence of 15 years in prison. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon, Douglas M. Pravda, and Amanda Hector, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s Counterterrorism Section and the United States Attorney’s Office for the Middle District of Florida.

The Defendants:

ABDURASUL HASANOVICH JURABOEV

Age: 24

Nationality: Uzbeki

AKHROR SAIDAKHMETOV

Age: 19

Nationality: Kazakh

ABROR HABIBOV

Age: 30

Nationality: Uzbeki

E.D.N.Y. Docket No. 15-M-0172

Earlier today, a 37-count indictment was unsealed in Brooklyn federal court charging Med Prep Consulting, Inc. (“Med Prep”), a Tinton Falls, New Jersey, medical drug re-packager and processer, together with its president and owner Gerald Tighe and pharmacist-in- charge Stephen Kalinoski, with wire fraud and violations of the Federal Food, Drug and Cosmetic Act (“FDCA”) for introducing adulterated and misbranded drugs into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration (“FDA”) and Med Prep’s customers, who consisted of hospitals and other healthcare providers.1

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Margaret A. Hamburg, M.D., Commissioner of the FDA.

According to the indictment, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs, and operating room drugs, in purportedly sterile conditions. In an effort to gain market share, Med Prep repeatedly misrepresented to its healthcare provider customers that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation. In fact, the defendants produced drugs in a facility that fell far short of basic industry standards of cleanliness, creating a risk to the health of already ill patients, and lied to healthcare providers about their failures to comply with basic sterility practices.

“As detailed in the indictment, Med Prep and its two most senior executives engaged in a disturbing pattern of dangerous practices in order to save money and line their pockets,” said U.S. Attorney Lynch. “Instead of working to extend and enhance human lives, the defendants illegally pursued corporate profits while putting at risk the health and safety of vulnerable patients suffering from disease. This indictment should send a strong message to those who would seek to put their bottom line before the health and safety of the public – those we entrust with preparing the medications that save lives must clean up their acts or face prosecution.” In announcing the indictment today, Ms. Lynch gratefully acknowledged the assistance and cooperation of the FDA’s Office of Criminal Investigations; the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.

“The production of unsafe and contaminated drug products poses a serious threat to the health of the American public and cannot be tolerated,” said FDA Commissioner Hamburg. “We continue to use all our authorities and to work with the Department of Justice and the states to ensure such practices are quickly identified and stopped. Americans deserve nothing less.”

According to the indictment, Med Prep halted its production of drug products in the summer of 2013 following an incident in which it had distributed intravenous drugs containing visible mold to a Connecticut hospital. Soon after mold was discovered, the FDA inspected Med Prep’s facility and documented numerous incidents of microbiological contamination in the company’s finished drug products. Notably, the investigators found that the same species of mold present in drugs sent to the Connecticut hospital was also present in Med Prep’s warehouse, where an unsterilized cart was regularly wheeled into a purportedly sterile “cleanroom” in which drugs were prepared by Med Prep employees. FDA investigators also found that Med Prep shipped drug products to healthcare providers in some instances that were mislabeled with incorrect drug strengths and in other instances were labeled as the wrong drugs altogether.

Prior to 2013, the FDA had conducted several inspections of Med Prep’s facilities and repeatedly warned the defendants that their practices and the conditions in their facility were unacceptable. Tighe and Kalinoski both allegedly misrepresented to FDA investigators that Med Prep’s complied with industry standards designed to prevent harm to patients that could result from non-sterility, yet they continued to handle sterile drugs in conditions far below any acceptable industry standards. As early as May 2007, Kalinoski learned that a Med Prep employee responsible for repacking and processing drugs in Med Prep’s “cleanroom” failed to treat an eczema skin condition for approximately five to six months while working in that room. The defendants never disclosed the employee’s skin condition to the FDA, nor did they take steps to prevent the delivery to, or issue a recall from, healthcare providers of any of the drug products with which the employee had come into contact.

If convicted, the individual defendants face maximum prison sentences of 20 years on each wire fraud charge, five years on the charge of conspiracy to violate the FDCA, and three years on each charge of violations of the FDCA.

The government’s case is being prosecuted by Assistant U.S. Attorneys Justin D. Lerer, Ameet B. Kabrawala, and Erin E. Argo.

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

The Defendants:

MED PREP CONSULTING, INC.

Tinton Falls, New Jersey

GERALD TIGHE

Age: 57

West Long Branch, New Jersey

STEPHEN KALINOSKI

Age: 51

Middletown, New Jersey

Earlier today, Frank E. Perkins, the Chief Financial Officer (“CFO”) of Harbor Funding Group, Inc. (“HFGI”) and Black Sand Mine, Inc. (“BSMI”), was sentenced in federal court in Brooklyn to 9 years’ imprisonment. In September 2014, Perkins pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his role in defrauding: (i) developers and their clients in areas devastated by Hurricane Katrina of more than $9 million through an advance fee scheme; and (ii) investors of almost $1 million through an Alaskan gold mine investment scheme. As part of the sentence, Perkins was also sentenced to 3 years’ supervised release and ordered to pay a total of $10,707,894.59 in restitution to the victims of the two schemes. The sentencing for lead defendant William C. Lange is scheduled for March 12, 2015.

The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).

“Perkins and his co-defendants preyed upon investors seeking to rebuild areas devastated by Hurricane Katrina and stole their victims’ deposit money through an intricate web of lies and deceit. After they spent the more than $9 million they stole from their victims, Perkins and his co-defendants embarked on a gold mine investment scheme that was built and sold on lies. Today’s sentence sends a strong message that those who exploit tragedies to line their own pockets will be held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this six-year investigation and prosecution. Ms. Lynch also extended her appreciation to the United States Attorney’s Office for the Western District of Washington for their assistance in the case.

Perkins and his co-conspirators told land developers and their clients that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Perkins’ representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Perkins and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Perkins and his co-conspirators stole more than $9 million from approximately 300 individuals. As CFO, Perkins authorized the $9 million to be spent on, among other things, salaries, fishing and hunting trips for co-defendants William and Kristofor Lange, remodeling and landscaping for co-defendant William Lange’s new house, and other business ventures started by Perkins and his co-conspirators.

After the $9 million was spent, Perkins and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Perkins and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Perkins also concealed his prior involvement in HFGI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Perkins and his co-conspirators.

The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement and investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The Defendant:

FRANK E. PERKINS

Age: 55

La Grange, Kentucky

E.D.N.Y. Docket No. 10-CR-968 (DLI)

 

       

At a ceremony earlier this week in Washington, Vice President Joe Biden and Attorney General Eric Holder awarded the Public Safety Officer Medal of Valor to several individuals, including fallen Senior Special Agent John Francis Capano, Bureau of Alcohol, Tobacco, Firearms and Explosives, and former Chief John Curly, Bellmore Fire Department, who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.

Agent Capano received the award for his heroic actions Dec. 31, 2011, during an armed robbery attempt at Charlie’s Family Pharmacy in Seaford, N.Y., by a convicted felon who had recently been released from prison. Agent Capano, who was off duty at the time, confronted the suspect, chased him outside, and engaged in a physical struggle for his gun. An off-duty New York City police officer and a retired Nassau County police officer also responded to the scene. Special Agent Capano was struck by a bullet to his chest and was later pronounced dead at an area hospital. The suspect was also shot and died at the scene.

On Nov. 12, 2012, the Bellmore Fire Department was alerted to a house fire with a victim trapped inside. Former Chief Curley (who remains a member of the Bellmore Fire Department) and his son, in a fire department pick-up truck nearby, heard the call and were first on the scene. A man in the driveway said his elderly mother was trapped in a second-floor bedroom. With no fire vehicles on the scene, former Chief Curley used a file cabinet topped by an old broken wooden ladder to climb to the bedroom window, breaking it with his bare hands, which exposed him to heavy black smoke billowing from the room. Because the first responders had not yet arrived, he was without the protection of a hose line, breathing apparatus, or protective gear. Nevertheless, former Chief Curley entered the room knowing that he had only a few seconds before it would be totally engulfed in fire. Once inside, he found the woman lying unconscious inside the room. Former Chief Curley moved the woman to the window, lifted her out onto the wooden ladder, carried her, and passed her down to his waiting son, who began to give her medical attention. During the rescue, former Chief Curley suffered lacerations to his hands and face, taking actions at extreme risks to his personal safety, which directly resulted in saving the life of the trapped woman.

United States Attorney Lynch stated, “Agent Capano and former Chief Curly are shining examples of the selflessness and dedication of all our public safety officers, who risk all every day to protect us. They stand shoulder to shoulder with the other heroes honored in this ceremony. We honor them and we thank them.”

Attorney General Holder added, “These are all exceptional individuals. Every one of them deserves our deepest gratitude and boundless respect. Yet even among the outstanding field of public servants who perform these critical responsibilities, day in and day out – in communities across the country – there are some who stand out. And, with these prestigious medals, we recognize these exceptional few for extraordinary valor – above and beyond the call of duty.”

The Public Safety Officer Medal of Valor, authorized by the Public Safety Officer Medal of Valor Act of 2001, is the highest national award for valor presented to a public safety officer. The medal is awarded to public safety officers who have exhibited exceptional courage, regardless of personal safety, in the attempt to save or protect human life. A total of 95 medals have been presented since the first recipients were honored in 2003.

The Medal of Valor is awarded by the President of the United States, or his designee, to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the U.S. Department of Justice’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Public Safety Medal of Valor.

More information about the award, the Medal of Valor Review Board members, and the nomination process is available at www.ojp.usdoj.gov/medalofvalor.

 

       

Earlier today, at the federal courthouse in Brooklyn, Henry Fiorentino was sentenced to 22 years in prison by United States District Judge John Gleeson. Fiorentino was convicted after a two-week jury trial in November 2014 of conspiring to commit Hobbs Act robberies and conspiring to distribute cocaine and heroin.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.

Fiorentino was a leading member of a violent robbery crew responsible for more than 100 robberies of narcotics traffickers in the New York metropolitan area and elsewhere that netted more than 250 kilograms of cocaine and $1 million in drug proceeds. Beginning in approximately January 2001, crew members posed as law enforcement officers, staged fake arrests of the traffickers, and then forcibly seized the traffickers’ contraband. Members of the robbery crew restrained victims with handcuffs, rope, or duct tape and often brandished firearms and physically assaulted the victims. The Crew members then sold the stolen drugs and divided the proceeds among themselves.

Fiorentino participated in at least 19 separate robberies and attempted robberies. During these crimes, he personally entered the residences and, on numerous occasions, he or fellow crew members brandished firearms and abducted or restrained victims. During all of the robberies and attempted robberies, Fiorentino posed as a police officer. The robberies and attempted robberies in which Fiorentino directly participated involved at least 230 kilograms of cocaine and approximately $66,000 in drug proceeds.

Ms. Lynch extended her grateful appreciation to the Drug Enforcement Administration, New York, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the New York City Police Department.

The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon and Sylvia Shweder.

The Defendant:

HENRY FIORENTINO

Age: 46

Bronx, NY

E.D.N.Y. Docket No. 08-CR-242 (S-8)(JG)

 

       

Yesterday, a superseding indictment was unsealed charging the defendant, Oscar Wellman Espinoza-Merino, along with a previously-charged co-defendant, Byron Lopez, with conspiracy to commit murder in-aid-of racketeering, murder in-aid-of racketeering, obstruction-of-justice murder, and firearms offenses.1 If convicted, the defendant will face mandatory life imprisonment. Espinoza-Merino, who was arrested yesterday morning, was presented for arraignment yesterday afternoon at the United States Courthouse in Brooklyn, New York.

The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Anthony Scandiffio, Deputy Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York Field Office (HSI); Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Explosives and Firearms, New York Field Division (ATF); and William J. Bratton, Commissioner, New York City Police Department.

“This Office has a long history of prosecuting and convicting members of the MS-13 gang, which for years has pursued its particularly brutal brand of violence and lawlessness in neighborhoods throughout Queens and Long Island,” stated U.S. Attorney Lynch. “This prosecution, which brings another alleged member of the gang to justice for a murder that disrupted one of our communities earlier this year, is part of our ongoing mission to dismantle MS-13 wherever and whenever it rears its head in this District.” Ms. Lynch thanked the Suffolk County Police Department for its assistance with the investigation and the United States Marshals Service Regional Fugitive Task Force for its assistance in locating Espinoza-Merino.

“The indictment of two alleged members of the violent MS-13 street gang related to the brutal murder of a fellow gang member is another step in dismantling this transnational gang that has wreaked havoc on our neighborhoods,” said HSI Deputy Special Agent-in-Charge Scandiffio. “HSI will continue to aggressively work with our local, state, and federal law enforcement partners in New York to target MS-13 and other transnational gangs that threaten the safety of our communities.”

ATF Special Agent-in-Charge Reid stated, “As part of our Frontline strategy, the ATF has placed one of its highest priorities in the fight to combat violent crime. As alleged, this gang investigation involved depraved individuals who had no regard for human life. We are happy that yesterday’s arrest can now bring some consolation to the victim’s family, and we look forward to working with our law enforcement partners to swiftly locate and arrest any others who participated in this criminal enterprise.”

“Violent gangs such as MS-13 show complete disdain for life by carrying out heinous acts, such as the murder charged in this indictment, only to instill fear in our communities,” said Police Commissioner Bratton. “The NYPD along with our federal law enforcement partners will continue to aggressively pursue these gang members and bring them to justice.”

As alleged in court documents, Espinoza-Merino is a member of the Brentwood, Long Island chapter of the violent street gang La Mara Salvatrucha, also known as “MS-13.” On February 25, 2014, Espinoza-Merino, Lopez, and other members of the gang directed the victim, fellow gang member Sidney Valverde, to travel to Long Island under the false pretense that they needed him to assist in gang business there. In fact, the co-conspirators planned to kill Valverde because they believed that he was providing information about the gang’s activities to federal law enforcement. After Valverde traveled to Long Island, the conspirators shot him in the back of the head and left his body on Miller Place Beach in Suffolk County, where it was discovered by a beachcomber approximately two weeks later.

The indictment of Espinoza-Merino is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous chapters, or “cliques,” through the United States, MS-13 has a significant presence in Queens and is the largest street gang in Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 20 murders in the Eastern District of New York and has convicted more than 35 MS-13 members in connection with those murders.

The government’s case is being prosecuted by Assistant United States Attorneys Darren A. LaVerne and Alixandra E. Smith.

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

The Defendant:

OSCAR WELLMAN ESPINOZA-MERINO, also known as “Speedy” and “Petey”

Age: 32

Darius X. Johnson has been arrested on a criminal complaint alleging wire fraud and money laundering in connection with his sale of phony insurance bonds for construction of the World Trade Center PATH transportation hub (“WTC Hub”). His initial appearance is scheduled later today at the federal courthouse in Atlanta, Georgia. The government will seek his removal to the Eastern District of New York for prosecution.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Anthony Scandiffio, Deputy Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI); and Michael Nestor, Inspector General, Port Authority of New York and New Jersey.

According to the complaint, between September 2010 and June 2013, the defendant took part in a scheme to steal money by selling fake insurance bonds to contractors working on large construction projects in New York and elsewhere. Specifically, Johnson, an attorney, sold fraudulent bonds provided by a company called Diamond Indemnity Trust, to a construction subcontractor which had a $6.2 million subcontract to supply and install glasswork at the WTC Hub. To prove that the bonds were backed by assets that could be used if the subcontractor defaulted on the project, Johnson provided, among other things, a phony letter of credit falsely indicating more than $6 million was held in Johnson’s attorney/client trust account in Brooklyn, New York. In 2011, after the subcontractor paid its premium for the fraudulent bonds, Johnson used multiple transactions and bank accounts to wire a substantial portion of the premium payment to himself and a co-conspirator. In 2012, when the subcontractor filed for bankruptcy and defaulted on the WTC Hub project, Johnson and Diamond Indemnity Trust failed to honor the bonds. As a result, the WTC Hub general contractor was forced to pay an additional amount of approximately $2 million to complete the job.

“As alleged, Johnson used deception to personally benefit from the reconstruction of the World Trade Center site while adding significant cost to the project and jeopardizing its timely completion,” stated United States Attorney Lynch. “This Office will investigate and prosecute to the fullest extent those who use important infrastructure projects as vehicles for fraud, deceit, and personal gain.”

“Surety bonds on capital construction projects serve the critical purpose of insuring that the project gets completed in a timely manner, within projected costs, and that the subcontractors and suppliers are paid properly. Fraudulent surety bonds create a dual problem for the construction project and the owner. The premiums are paid out for the surety bonds, and no resulting benefit or protection is obtained. The defendant allegedly victimized a World Trade Center project that was being rebuilt after the terrorist attacks to line his pockets. The Port Authority of NY & NJ, Office of Inspector General will continue to work with our law enforcement partners to prevent and detect all types of construction fraud,” stated Port Authority Inspector General Nestor.

“The World Trade Center reconstruction site is sacred ground, so using its rebuilding to steal money by selling false insurance bonds as alleged in the complaint is a particularly disturbing crime,” said HSI Deputy Special Agent-in-Charge Scandiffio. “HSI is committed to leveraging its unique statutory authorities and investigative expertise to bring down individuals involved in these types of criminal activities.”

The charges contained in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 30 years’ imprisonment on the wire fraud count and 10 years on the money laundering count. Additionally, if convicted, Johnson may be fined up to $1 million for the wire fraud count and $250,000, or up to twice the amount of criminally derived property involved in the transaction, for the money laundering count.

The government’s case is being prosecuted by Assistant United States Attorneys Whitman G.S. Knapp and Brian D. Morris, and Special Assistant United States Attorney Jonathan P. Lax.

This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.

The Defendant:

DARIUS X. JOHNSON

Age: 48

Atlanta, Georgia

E.D.N.Y. Docket No. 15-M-120

John R. Lakian and Diane W. Lamm have been charged in a five-count indictment alleging conspiracy to commit securities, wire and bank fraud, and two counts of substantive securities fraud in connection with schemes to defraud investors and banks of millions of dollars. The defendants will be arraigned later today at the federal courthouse in Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

According to the indictment, between February 2009 and July 2013, the defendants were involved in two schemes to steal investors’ money. In the first, the defendants obtained more than $11 million by promising investors that their money would be used to purchase, consolidate and sell registered investment advisory businesses. Instead of investing

the money as promised, the defendants diverted a significant amount of it into their own pockets, to restaurant businesses they controlled, and to pay Lakian’s home mortgage. In the second scheme, the defendants perpetrated fraud through their management of the liquidation of a North Carolina-based investment fund with more than 100 investors. Instead of returning the fund’s proceeds to investors, Lakian and Lamm diverted investors’ money to themselves and to restaurant businesses they controlled. In addition, the indictment alleges a third scheme in which, between 2009 and 2012, Lakian and Lamm submitted fake tax returns, bank statements, and other false documents to banks in Brooklyn, Long Island, and elsewhere in applications to obtain more than $8 million in loans. These forged documents overstated Lakian’s income and assets by millions of dollars.

“As alleged, Lakian and Lamm preyed upon more than 100 investors, in multiple schemes, stealing their hard-earned money to use for their own purposes. They similarly disregarded the interests of lending institutions by submitting forged documents to banks in an attempt to fraudulently secure more than $8 million in loans” stated United States Attorney Lynch. “This Office will investigate and prosecute to the fullest extent those who victimize investors and commit financial fraud.”

“As charged, instead of carefully investing their clients’ money, one defendant paid off his mortgage, and in another instance the defendants diverted cash to a restaurant venture. They lied, cheated, and stole. This type of behavior is unacceptable. It’s also illegal. And it should be a stark reminder to anyone who is driven by greed. These insidious investment schemes will be identified and disrupted,” stated FBI Assistant Director-in-Charge Rodriguez.

The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 30 years’ imprisonment on the bank fraud count, 20 years on each of the securities fraud counts, and 5 years on the securities and wire fraud conspiracy counts. Additionally, if convicted, Lakian and Lamm may be fined up to $5 million for the securities fraud counts and $1 million for the bank fraud count.

The government’s case is being prosecuted by Assistant United States Attorney Whitman G.S. Knapp and Brian D. Morris.

This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.

The Defendants:

JOHN R. LAKIAN

Age: 72

Highlands, North Carolina

DIANE W. LAMM

Age: 54

Highlands, North Carolina

E.D.N.Y. Docket No. 15-CR-0043 (FB)

Yesterday, Naquan Reyes pled guilty at the federal courthouse in Brooklyn, New York, to murdering Nicole Thompson to prevent her from communicating with federal law enforcement officials who were investigating a bank fraud conspiracy. According to court filings and facts presented during the plea proceeding, Reyes paid another individual to murder Ms. Thompson to prevent her from cooperating with law enforcement and undermining a lucrative and long-standing scheme to defraud banks in the New York area. During yesterday’s proceeding, Reyes also pled guilty to bank fraud conspiracy.

The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Robert J. Sica, Special Agent-in-Charge, United States Secret Service, New York Field Office.

“The murder of Nicole Thompson was the result of a truly shocking combination of greed and violence,” stated United States Attorney Lynch. “We hope her family can take some measure of solace in knowing that the individual who is responsible for their daughter’s murder has been brought to justice. This Office and our law enforcement partners will do anything in our power to hold accountable those who use violence to silence witnesses or otherwise obstruct justice.” Ms. Lynch expressed her grateful appreciation to the Prince George’s County, Maryland Police Department, New York City Police Department, and Bronx County District Attorney’s Office for their significant cooperation and assistance in the investigation.

As alleged in the detention memorandum and during a detention hearing, between 2008 and his arrest in 2014, Reyes perpetrated a scheme to defraud various banks. As part of the scheme, Reyes secured employment at more than half a dozen banks and, relying in part on knowledge he acquired from his employment, Reyes created counterfeit checks and recruited others to deposit those checks into their and others’ bank accounts. Reyes and his coconspirators then attempted to withdraw the funds from the bank accounts before the banks learned the checks were counterfeit. Among those he recruited to make the deposits was Nicole Thompson. On July 16, 2010, Thompson was arrested by the New York City Police Department in connection with her role in the scheme, and she immediately decided to cooperate with law enforcement. When Reyes learned of Thompson’s plans to cooperate and thereby jeopardize his ongoing fraud scheme, Reyes paid another individual to murder her and then traveled from New York to Maryland to dispose of her body. On July 24, 2010, Thompson’s body, duct taped and wrapped in garbage bags, was found in a dumpster in Landover, Maryland. Thompson was 24 years old at the time of her murder.

Yesterday’s plea took place before United States District Judge Sandra L. Townes. When sentenced, Reyes faces up to life in prison, as well as forfeiture and a fine of up to $1,000,000.

The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth Kramer, Elizabeth Geddes, Samuel Nitze, and Karin Orenstein.

The Defendant:

NAQUAN REYES

Age: 29

Brooklyn, NY

E.D.N.Y. Docket No. 14-CR-0227

WASHINGTON – An Army National Guard official pleaded guilty today for accepting a $30,000 bribe in exchange for steering a $3.6 million contract to a retired sergeant major of the Minnesota Army National Guard and his consulting company. Today’s guilty plea is the eighth in connection with an investigation into corruption within the National Guard Bureau related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.

Jason Rappoccio, 39, of Hampton, South Carolina, pleaded guilty before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to one count of conspiracy to commit bribery and one count of bribery. Rappoccio was indicted on Sept. 25, 2014, and will be sentenced on May 22, 2015.

According to plea documents, Rappoccio, who was an active duty sergeant first class in the Army National Guard, admitted to accepting a $30,000 bribe from Timothy Bebus, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC (Mil-Team). In exchange, Rappoccio agreed to recommend the award of a $3.6 million contract to Mil-Team, and to steer the contract to a Small Business Administration (SBA) 8(a) certified company, chosen by Bebus, that would sub-contract the work to Mil-Team.

Rappoccio admitted that he received the $30,000 bribe in installments to conceal the payment. Bebus gave $6,000 in cash directly to Rappoccio at a meeting in Arlington, Virginia. The remaining $24,000 was paid in a cashier’s check in the name of Rappoccio’s wife.

Rappoccio also admitted that days after receiving the $30,000 bribe, he solicited and received airline tickets for two of his family members from Bebus. Three months later, Rappoccio also received NFL football tickets worth $1,328 from another co-conspirator. At the time that he accepted these additional benefits, Rappoccio agreed to steer an additional $4 million contract to Bebus and his company.

The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.

Tomorrow, January 24, 2015, Faruq Khalil Muhammed ‘Isa, also known as “Faruq Khalil Muhammad ‘Isa,” “Sayfildin Tahir Sharif,” and “Tahir Sharif Sayfildin,” will have his initial appearance at the federal courthouse in Brooklyn, New York, on charges of conspiring to kill Americans abroad, murdering Americans abroad, and providing material support to a terrorist conspiracy to kill Americans abroad. ‘Isa was extradited to the United States from Canada.

The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William J. Bratton, Commissioner, New York City Police Department (NYPD).

According to court documents, the defendant is charged in connection with his support for a multinational terrorist network that conducted multiple suicide bombings in Iraq. According to the complaint, filed on January 14, 2011 in the Eastern District of New York, the defendant assisted in orchestrating an attack on the United States Military’s Forward Operating Base Marez (“FOB Marez”) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.

“Today’s extradition demonstrates to those who orchestrate violence against our citizens and our soldiers that there is no corner of the globe from which they can hide from the long reach of the law,” stated United States Attorney Lynch. “We will continue to use every available means to bring to justice those who are responsible for the deaths of American servicemen and women who paid the ultimate price in their defense of this nation.” Ms. Lynch extended her grateful appreciation to the Canadian government for its assistance and cooperation in the extradition.

“Faruq Khalil Muhammed ‘Isa is alleged to have helped orchestrate an attack that killed five U.S. soldiers at the Forward Operating Base Marez in Mosul, Iraq in 2009,” said Assistant Attorney General Carlin. “The families of these five Americans and all who have lost loved-ones to acts of terrorism should know that we will never cease seeking to hold terrorists accountable for their acts. I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”

“As alleged, Faruq Khalil Muhammad ‘Isa was involved in the most callous act: a suicide bombing murdering U.S. soldiers in Iraq,” said FBI Assistant Director in Charge Venizelos. “Our memory is long, and our reach is longer. Today we hope to bring some measure of justice to the families of those five servicemen who sacrificed their lives in defense of this nation.”

“I want to commend the United States Attorney Loretta Lynch and her team for working closely with the NYPD and the FBI to extradite this individual who is allegedly responsible for the death of soldiers sworn to protect and serve. We hope today’s extradition will bring some closure to the families,” stated NYPD Commissioner Bratton.

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

The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Alexander Solomon, and Peter Baldwin, with assistance provided by the Justice Department’s Counterterrorism Section and Office of International Affairs.

The Defendant:

FARUQ KHALIL MUHAMMAD ‘ISA

Age: 36

Nationality: Canadian

E.D.N.Y. Docket No. 11-CR-819

Earlier today at the federal courthouse in Brooklyn, Andrew Goodman pled guilty to soliciting and enticing a minor victim to engage in sexual conduct. The victim was between 12 and 15 years of age during the time of the abuse.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.

Goodman began his sexual abuse in 2006 when the victim was 12 years old. Over the next several years, Goodman sexually assaulted the victim multiple times a week. At the plea proceeding, Goodman admitted that he communicated with the victim by telephone regarding his intention to engage in sexual activity. Previously, Goodman had been convicted in New York State court of 48 counts of sexually abusing the same minor, as well as second victim, and for those crimes served two years in prison.

“The defendant Goodman systematically and deliberately stole the victim’s childhood through repeated sexual assaults over the course of several years. He will now be held to account for this violation,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency that led the government’s investigation, and thanked the Kings County District Attorney’s Office for its assistance in this case.

Today’s plea proceeding took place before United States District Judge Margo K. Brodie. When sentenced, Goodman faces a mandatory term of at least ten years in prison, as well as forfeiture, restitution, a fine of up to $250,000, and mandatory registration as a sex offender. Sentencing has been scheduled for April 24, 2015. Goodman has been in federal custody since his arrest on the federal charges in July 2012.

The government’s case is being prosecuted by Assistant United States Attorneys Tyler J. Smith and Ameet Kabrawala.

This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by the United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.

The Defendant:

ANDREW GOODMAN

Age: 30

Brooklyn, New York

E.D.N.Y. Docket No. 12-CR-614 (MKB)