Eastern District of New York

David Denenberg, a practicing New York attorney and Nassau County Legislator, pleaded guilty today to defrauding a former client of over $2 million. The plea was entered before U.S. District Judge Joanna Seybert at the federal courthouse in Central Islip.

Today’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

According to court filings and statements made in court at the time he entered the plea, between November 2006 and June 2014, Denenberg was a partner in the Garden City law firm Davidoff Hutcher & Citron LLP (“DHC”), formerly Davidoff Malito & Hutcher LLP (“DMH”). During that time period, Denenberg sent fraudulent bills to a client for legal services that he never rendered. The client, a corporation based in Port Washington, New York, relied on Denenberg’s false billings and paid DHC/DHM $2,265,004.46. During the same time period, Denenberg also sent fraudulent expense bills to the client for purported expenses incurred in furtherance of his legal representation, which expenses were never incurred, totaling $126,071.43. In all, the client paid DHC/DHM $2,342,607.64 for legal service never rendered and expenses never incurred.

“Denenberg used his license to practice law as a license to steal, billing for phantom work to steal real money from a client who trusted him. Today’s conviction should serve as a reminder that no one is above the law. The defendant has admitted his criminal conduct and will now face the consequences,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation for its work on the investigation.

FBI Assistant Director-in-Charge Venizelos stated, “Lawyers are expected to act in the best interest of their clients while upholding the tenants of the legal system. Denenberg did just the opposite by taking advantage of a trusting client and benefitting from illegitimate profits. Those who practice law are not above the law, and Denenberg will be held to face the consequences of his actions.”

At sentencing, Denenberg faces up to 20 years in prison and a fine of more than $250,000. Denenberg has already made full restitution to the former client.

The government’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.

The Defendant:

DAVID DENENBERG

Age: 51

Merrick, New York

E.D.N.Y. Docket No. 14-CR-594 (JS)

A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Saddiq Al-Abbadi, also known as “Sufiyan al-Yemeni” and “Sufwan,” and Ali Alvi, also known as “Issa al-Yemeni,” with conspiracy to murder United States nationals abroad and providing material support to al-Qaeda. Alvi’s initial appearance was held before United States Magistrate Judge Steven I. Locke on January 18, 2015, and Al-Abbadi’s initial appearance is scheduled today before United States Magistrate Judge Lois Bloom. Al-Abbadi and Alvi were arrested in Saudi Arabia pursuant to the pending warrants in this case and lawfully expelled to the United States.

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; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.

As alleged in the complaint, Al-Abbadi and Alvi are both members of al-Qaeda who engaged in attacks against United States military forces stationed in Afghanistan. Between 2003 and 2007, Al-Abbadi also fought against United States military forces in Iraq. In approximately March 2008, Al-Abbadi and Alvi traveled to the Federally Administered Tribal Areas of Pakistan for the purpose of training with and fighting for al-Qaeda. During that time period, both defendants helped an American citizen gain entry into al-Qaeda so that he could fight against U.S. troops in Afghanistan and U.S. citizens in the homeland.

In approximately late spring and summer 2008, Al-Abbadi and Alvi traveled from Pakistan to Afghanistan to conduct attacks against United States military personnel stationed there. Al-Abbadi led a battle against U.S. forces in Paktya Province in May 2008 during which one U.S. Army Ranger was killed and several others were seriously wounded.

“There is no escape from the reach of our law for violent terrorists, especially if they target our military,” stated United States Attorney Lynch. “Al-Abbadi and Alvi may have operated in the mountains of Afghanistan, but now they face justice in a courtroom in Brooklyn.” Ms. Lynch extended her grateful appreciation to the FBI.

“With the charges announced today, these defendants will face justice for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division. I want to thank the many agents, analysts, and prosecutors who are responsible for this matter.”

“The arrest and prosecution of these two individuals, who allegedly directly supported the mission of a designated terrorist organization, is a major step in the international cooperation to combat terrorism,” said FBI Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with a complex threat environment that is always evolving and changing. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups and ensure that they are brought to justice.”

If convicted, each defendant faces 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 Assistant United States Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda, with assistance provided by Trial attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.

The Defendants:

SADDIQ AL-ABBADI

Age: 36

Nationality: Yemeni

ALI ALVI

Age: 30

Nationality: Yemeni

E.D.N.Y. Docket No. 09-MJ-372

Earlier this week and today, in federal court in Brooklyn, New York, three brothers pled guilty to sex trafficking charges. The defendants, who are Mexican nationals, transported Mexican females from Mexico to the United States illegally, forcing them to work as prostitutes in New York City and elsewhere. At the time of sentencing, defendants Jorge Estrada-Tepal and Ricardo Estrada-Tepal, who pled guilty to sex trafficking conspiracy and sex trafficking involving force, fraud and coercion, face a mandatory term of imprisonment of 15 years, with a maximum possible sentence of up to life in prison. Defendant Victor Leonel Estrada-Tepal, who pled guilty to sex trafficking conspiracy and sex trafficking of a minor, faces a mandatory term of imprisonment of ten years, with a maximum possible sentence of up to life in prison. The defendants were arrested in January 2014. These guilty pleas are the latest in the Office’s comprehensive anti-trafficking program, which has to date indicted over 55 defendants in sex trafficking cases and rescued over 115 victims, including over 25 minors.

The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.

“The defendants are classic predators: they targeted women and a young girl in Mexico, and pushed them into a life of sexual slavery in Mexico and the United States. As our trafficking cases have repeatedly shown, we will not relent against those who choose to subject victims to modern-day slavery in an effort to line their own pockets,” stated United States Attorney Lynch. Ms. Lynch thanked the Mexican authorities and other entities that assisted with the investigation and successful prosecution of this case.

“These men preyed on innocent women, luring them into the United States under false pretenses and then cruelly enslaving them to satisfy their own greed in a ruthless prostitution scheme,” said HSI Special Agent-in-Charge Hayes. “Prosecuting human traffickers and rescuing human trafficking victims is a priority of this office and the Department of Homeland Security. These guilty pleas highlight that commitment and serve as a warning to other predators that law enforcement at all levels is determined to dismantle these heartless human trafficking organizations.”

As set forth in court documents, and discussed during the guilty plea proceedings, the sex trafficking involved at least four victims, and the defendants used various methods to force these women to work in prostitution, ranging from threats of violence, assault and psychological coercion. One minor victim, identified at the guilty plea proceedings as Jane Doe 4, was under the age of 18 when she was trafficked to the United States. During the guilty plea held today, defendant Jorge Estrada-Tepal admitted that, starting in 2007, he and his brothers entered into a conspiracy to transport women from Mexico to Queens to engage in prostitution, and that threats of force were used against the victims. Likewise, yesterday, Ricardo Estrada-Tepal admitted that he and his brothers brought women from Mexico to the United States, where they were forced to work in prostitution, and that he and his brothers did not tell the women the “real truth about why they were coming to the United States.” On Tuesday, defendant Victor Leonel Estrada-Tepal admitted that he agreed with his brothers to force women to work in prostitution, including his wife, Jane Doe 4, who was 17 years old at the time, who he brought from Mexico to Queens to have her engage in prostitution.

Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the Procuraduría General de la República (PGR), the Secretaría de Seguridad Pública (SSP), Procuraduría Social de Atención a las Víctimas de Delitos (PROVICTIMA), and non-governmental partners in the United States and Mexico in a Bilateral Human Trafficking Enforcement Initiative. Through this Initiative, the United States and Mexico have worked together to bring high-impact prosecutions under both U.S. and Mexican law to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, prosecute human traffickers, rescue human trafficking victims, and reunite victims with their families. Other significant bilateral cases have been prosecuted in Atlanta, Georgia, and Miami, Florida.

The government’s case was prosecuted by Assistant United States Attorneys Taryn A. Merkl and Melody Wells.

The Defendants:

RICARDO ESTRADA-TEPAL

Age: 33

Queens, NY

VICTOR LEONEL ESTRADA-TEPAL

Age: 29

Queens, NY

JORGE ESTRADA-TEPAL

Age: 37

Queens, NY

E.D.N.Y. Docket No. CR-14-105 (MKB)

 

       

Earlier today, Antoine Mayes was sentenced before Judge Allyne Ross in U.S. District Court in Brooklyn, New York, to 110 years in prison, and on December 23, 2014, Anthony Mayes, Jr. was sentenced before Judge Ross to life plus 30 years in prison, for charges of racketeering, murder (against Anthony Mayes, Jr.), attempted murder (against Antoine Mayes), murder conspiracy, and firearm- and narcotics-related offenses. The defendants were convicted after trial in May 2014.

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

“The Mayes brothers led a violent and lucrative drug organization that instilled fear and destroyed lives in the East New York community for more than a decade. They expanded their operation to the State of North Carolina and came to dominate the drug trade in a community there as well. Violence was the organization’s calling card – led by the defendants, the organization killed or sought to kill those who threatened their income or their reputation on the street,” stated United States Attorney Lynch. “The sentences imposed appropriately reflect the seriousness of the crimes of conviction, which include murder and attempted murder, the defendants’ long histories of crime, and their complete disregard for human life.” Ms. Lynch extended her grateful appreciation to the FBI’s New York Field Office, the New York City Police Department, and the North Carolina State Bureau of Investigation for their outstanding work in this case.

Between 1998 and 2010, the Mayes brothers led a group of violent drug dealers that sold crack cocaine and was based on Ashford Street in East New York. The criminal enterprise used violence and the threat of violence to maintain its source of income. Specifically, on June 18, 1999, Anthony Mayes, Jr. shot and killed Dave Martin at a party in East New York, in retaliation for Martin having previously stabbed Mayes. This, and other acts of violence, were well known in the community and allowed the enterprise to dominate the local drug trade. After the Martin murder, Anthony Mayes, Jr. moved to Williamston, North Carolina, where, using the alias Gus Rascoe Jr., he quickly came to dominate the drug trade in that area, selling crack cocaine that he transported from New York and elsewhere. On January 27, 2003, Anthony Mayes, Jr. murdered Eric Rayshawn Keel, and on February 29, 2004, he murdered Keith Cofield, both in North Carolina. Keel was murdered for purportedly stealing drugs belonging to the Mayes brothers’ criminal enterprise. Cofield was murdered because he owed a drug-related debt to the enterprise. His corpse was dumped into a river.

Antoine Mayes was convicted of three separate counts of attempted murder based on the enterprise’s drug and turf-related disputes in Brooklyn.

The government’s case was prosecuted by Assistant United States Attorneys Berit W. Berger, Richard M. Tucker, and Alicyn Cooley.

The Defendants:

ANTHONY MAYES, JR.

Age: 34

Brooklyn, New York

ANTOINE MAYES

Age: 31

Brooklyn, New York

E.D.N.Y. Docket No. 12 CR 385 (ARR)

Suffolk County Conservative Party Chairman Edward M. Walsh, Jr. was arrested today on charges that he engaged in a scheme to steal wages for regular and overtime hours in connection with his employment with the Suffolk County Sheriff’s Office (“SCSO”). He was arraigned today 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 George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

As alleged in the criminal complaint unsealed today, from January 2011 to April 2014, Walsh, a SCSO Correction Officer III Investigator, falsely represented to the SCSO that he had worked certain regular and overtime hours when, in fact, he did not. Contrary to his representations, Walsh was, among other things, playing golf, gambling at Foxwoods Casino, or performing work on behalf of the Suffolk County Conservative Party. In reliance on Walsh’s false representations, the SCSO paid Walsh approximately $80,000 in wages for regular and overtime hours he did not work. To conceal his scheme, Walsh allegedly lied to FBI agents, claiming that he worked flex time or was on the telephone regarding his work at the SCSO even while at the golf course.

“Instead of upholding the law, Edward Walsh abused his position and authority and robbed from taxpayers to fund his personal and political activities,” stated United States Attorney Lynch. “We and our partners in the FBI will continue to root out government fraud wherever we find it.”

FBI Assistant Director-in-Charge Venizelos stated, “Mr. Walsh shook down county government for hours he never worked. In reality, he was often on the ninth hole practicing his putting, among other things. Mr. Walsh today finds himself in serious trouble with the law for allegedly defrauding Suffolk County.”

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 Catherine M. Mirabile and Raymond A. Tierney.

The Defendant:

EDWARD M. WALSH, JR.

Age: 48

East Islip, New York

E.D.N.Y. Docket No. 15-MJ-0002 (AKT)

A Queens, New York, man and his Israeli brother were charged in indictments unsealed today in federal courts in Philadelphia and Brooklyn, New York, with offenses related to a long-running odometer tampering and money laundering scheme, the Justice Department and the U.S. Attorney’s Office for the Eastern District of New York announced.

Chaim Gali aka Mike Gali and John Triculy, 40, of Queens Village, New York, and Shmuel Gali aka Sam Gali, 42, of Israel, are charged in a 15-count indictment in the Eastern District of Pennsylvania (EDPA) with conspiracy, securities fraud and false odometer statements. The Galis are also charged in a related two-count indictment in the Eastern District of New York (EDNY) with mail and wire fraud conspiracy, and money laundering conspiracy. If convicted of the charges in the EDPA indictment, the defendants face a statutory maximum of five years in prison on the conspiracy charge; a statutory maximum of 10 years in prison for each securities fraud charge and up to three years in prison for each false odometer statement charge. If convicted of the charges in the EDNY indictment, they face a statutory maximum of 20 years in prison for each of the charges.

“Mileage is one of the most important factors in a consumer’s decision to purchase a used car,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Misrepresenting the mileage on a used car fraudulently induces a consumer to pay more money for less value, and it hides necessary information that will affect how a consumer maintains and repairs that vehicle.”

“As alleged, the defendants created an elaborate odometer tampering and money laundering scheme to con would-be buyers into purchasing used cars at inflated prices,” said U.S. Attorney Loretta E. Lynch for the EDNY. “They then used the proceeds of their crimes to continue their fraud against additional unsuspecting consumers. This case demonstrates our commitment to protect consumers from fraud.”

The indictments allege that the Galis devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles they sold beginning as early as 2006 and through at least 2011. The indictments charge that the Galis used fictitious dealer names to purchase high-mileage, used motor vehicles from a national vehicle leasing company. The defendants are charged with conspiring to alter the odometers in these vehicles, which they purchased in Florida, Maryland, Missouri and elsewhere, to reflect false lower mileages. The indictments allege that the Galis then fraudulently altered the motor vehicle titles to reflect the false lower mileages and as a result, the commonwealth of Pennsylvania issued motor vehicle titles reflecting the altered mileages.

The defendants subsequently sold the vehicles at wholesale automobile auctions in Pennsylvania and New Jersey using various dealerships, including Chase Auto Center and Conestoga City Autos. At the auctions, the Galis provided the buyers with Pennsylvania vehicle titles bearing the false lower mileages. The EDPA indictment alleges that in some instances, the title indicated mileage more than 100,000 miles less than the true mileage of the vehicle and as a result, the defendants received inflated sales prices for the vehicles they sold.

The defendants deposited the proceeds of the sales of the rolled-back vehicles into various bank accounts, mainly in Brooklyn. Among other things, the defendants then used this money to purchase additional used vehicles and continue their fraud scheme.

Acting Assistant Attorney General Branda and U.S. Attorney Lynch commended the investigative efforts of the Internal Revenue Service-Criminal Investigation and the U.S. Department of Transportation National Highway Traffic Safety Administration’s (NHTSA) Office of Odometer Fraud Investigation.

Chaim Gali was arrested today in New York, and his arraignment is scheduled for 2:00 pm this afternoon before U.S. Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. Shmuel Gali is in Israel and the government will seek his extradition.

The case is being prosecuted by Trial Attorney Kathryn Drenning and Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Catherine M. Mirabile of the Eastern District of New York.

NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.

An update on the status of the case is available on the Consumer Protection Branch’s website. More information on odometer fraud is available on NHTSA’s website, and tips on detecting and avoiding odometer fraud are also available on the NHTSA website.

The charges in the indictments are merely allegations, and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

Earlier today, United States Congressman Michael Grimm pleaded guilty at the federal courthouse in Brooklyn, New York, to aiding and assisting the preparation of a false tax return.  Since 2011, Grimm has served as a member of the United States House of Representatives representing New York’s 11th Congressional District, which includes the borough of Staten Island and parts of the borough of Brooklyn, in New York City.  When sentenced, Grimm faces a prison term of up to three years.  In connection with his guilty plea, Grimm also agreed to pay restitution to the Internal Revenue Service (IRS), the New York State Department of Taxation and Finance, and the New York State Insurance Fund (NYSIF).  Today’s guilty plea proceeding took place before the Honorable Pamela K. Chen, 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, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Richard Weber, Chief, IRS- Criminal Investigation.

“With today’s guilty plea, Michael Grimm has admitted that while running his business he chose lies and deception over honest dealings with federal and state authorities as well as his own employees.  In addition to pleading guilty to causing the filing of a false tax return for his restaurant, Grimm has signed a statement admitting to the conduct underlying every charge filed against him.  Michael Grimm has now publicly admitted that he hired unauthorized workers whom he paid “off the books” in cash, took deliberate steps to obstruct the federal and state governments from collecting taxes he properly owed, cheated New York State out of workers’ compensation insurance premiums, caused numerous false business and personal tax returns to be filed for several years, and lied under oath to cover up his crimes.  He will now be held to account for all of his actions that led to those charges,” said U.S. Attorney Lynch.  “This guilty plea makes clear that we and our partners in the FBI and the IRS will vigorously investigate and prosecute fraud wherever we find it, and that no one is above the law.”  Ms. Lynch expressed her appreciation to the Public Integrity Section of Department of Justice, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, the New York State Insurance Fund, the New York State Department of Taxation and Finance, and the New York State Department of Labor for their assistance in the investigation.

FBI Assistant Director-in-Charge Venizelos stated, “As an elected official, Grimm was responsible for deciding how taxpayers' money should be spent, yet he chose not to pay his fair share of taxes while operating his business.  Adding insult to injury, while serving as a Member of Congress, Grimm lied under oath in an effort to conceal his criminal activity.  The public expects their elected officials at all levels of government to behave honorably, or at a minimum, lawfully.  As his guilty plea demonstrates, Grimm put self-interest above public service.”

Richard Weber, Chief, IRS-Criminal Investigation stated, “The public expects their elected officials to meet their tax obligations before they take office, while they hold office and when they leave office.  Today, Mr. Grimm admitted to breaching the public's trust by fraudulently underreporting $900,000 in restaurant gross receipts and lowering payroll taxes through 'off-the-book' payments.  As the only law enforcement agency with the authority to investigate federal tax crimes, IRS-Criminal Investigation is committed to ensuring that everyone pays their fair share. In the eyes of the law, public officials are not above the citizens they serve.”

In connection with his guilty plea, Grimm entered into a stipulation of facts, filed with the Court today, that acknowledged the scope of his criminal conduct.  As part of that stipulation of facts, Grimm admitted that:

• From 2007 through 2009, Grimm was a member in Healthalicious, a restaurant located in Manhattan.During that time period, Grimm oversaw the day-to-day operations of the restaurant, which included the reporting and distribution of the restaurant’s payroll.
   

• Grimm under-reported the true amount that Healthalicious earned, using a portion of those unreported receipts to pay the restaurant’s workers “off the books” in cash.With Grimm’s knowledge, the restaurant employed those who were not lawfully admitted to the United States and who were not authorized to work in this country.
   

• In total, Grimm concealed over $900,000 in Healthalicious’ gross receipts from the accountant who prepared and filed the restaurant’s tax returns.That accountant used the false information provided by Grimm to prepare and file false federal and state tax returns for Healthalicious.
   

• Grimm also failed to report the “off the books” cash wages he was paying to Healthalicious workers, which resulted in the restaurant paying lower federal and state payroll taxes.Some Healthalicious employees received at least half of their wages in cash, while other workers were paid entirely in cash.Grimm tracked these payments in electronic spreadsheets, but failed to provide accurate information about the restaurant’s payroll to the payroll processing companies employed by the restaurant.As a result, Grimm caused the payroll processing companies to report to the IRS and the NYS Tax Department less than half of the wages Healthalicious actually paid its employees.
   

• Additionally, Grimm under-reported Healthalicious’ payroll to the New York State Insurance Fund (“NYSIF”), lowering the monthly workers’ compensation premium the restaurant paid to NYSIF.
   

• As part of his scheme, Grimm caused numerous false documents to be filed with federal and state tax authorities between 2007 and 2010, including: (1) Form 941 Employer’s Quarterly Federal Tax Returns for Healthalicious; (2) Form 1065 U.S. Return of Partnership Income tax returns for Healthalicious; (3) Forms W-2 reported annual wages of Healthalicious employees; (4) his Form 1040 U.S. Individual Income Tax Returns and Form IT-201 Resident Income Tax Returns; and (5) New York State Form ST-100 Quarterly Sales and Use Tax Returns.
   

• In total, Grimm’s conduct caused federal and New York State tax and NYSIF premium losses between $80,000 and $200,000.

Moreover, while a Member of Congress in January 2013, Grimm was deposed under oath by the attorney of a former employee in connection with a civil lawsuit relating to the labor practices at Healthalicious in which Grimm was a defendant.  The lawsuit was pending in the United States District Court for the Southern District of New York.  Today, as part of the stipulation of facts, Grimm admitted to testifying during the deposition to things that, at the time, he knew to be false.  Specifically, Grimm testified during the deposition that Healthalicious employees had not been paid in cash, when he knew that restaurant employees had in fact been paid “off the books” in cash.  Similarly, Grimm testified that, to the extent he used email in operating Healthalicious, he used a Yahoo account to which he no longer had access.  Today, Grimm admitted that, at the time of the deposition, he in fact had access to an AOL account which he had used for Healthalicious related business and which contained many emails related to the restaurant.

The government’s case is being prosecuted by Assistant United States Attorneys Anthony M. Capozzolo, James D. Gatta, and Nathan Reilly.

Earlier today, United States Congressman Michael Grimm pleaded guilty at the federal courthouse in Brooklyn, New York, to aiding and assisting the preparation of a false tax return. Since 2011, Grimm has served as a member of the United States House of Representatives representing New York’s 11th Congressional District, which includes the borough of Staten Island and parts of the borough of Brooklyn, in New York City. When sentenced, Grimm faces a prison term of up to three years. In connection with his guilty plea, Grimm also agreed to pay restitution to the Internal Revenue Service (IRS), the New York State Department of Taxation and Finance, and the New York State Insurance Fund (NYSIF). Today’s guilty plea proceeding took place before the Honorable Pamela K. Chen, 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, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Richard Weber, Chief, IRS- Criminal Investigation..

“With today’s guilty plea, Michael Grimm has admitted that while running his business he chose lies and deception over honest dealings with federal and state authorities as well as his own employees. In addition to pleading guilty to causing the filing of a false tax return for his restaurant, Grimm has signed a statement admitting to the conduct underlying every charge filed against him. Michael Grimm has now publicly admitted that he hired unauthorized workers whom he paid “off the books” in cash, took deliberate steps to obstruct the federal and state governments from collecting taxes he properly owed, cheated New York State out of workers’ compensation insurance premiums, caused numerous false business and personal tax returns to be filed for several years, and lied under oath to cover up his crimes. He will now be held to account for all of his actions that led to those charges,” said U.S. Attorney Lynch. “This guilty plea makes clear that we and our partners in the FBI and the IRS will vigorously investigate and prosecute fraud wherever we find it, and that no one is above the law.” Ms. Lynch expressed her appreciation to the Public Integrity Section of Department of Justice, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, the New York State Insurance Fund, the New York State Department of Taxation and Finance, and the New York State Department of Labor for their assistance in the investigation.

FBI Assistant Director-in-Charge Venizelos stated, “As an elected official, Grimm was responsible for deciding how taxpayers' money should be spent, yet he chose not to pay his fair share of taxes while operating his business. Adding insult to injury, while serving as a Member of Congress, Grimm lied under oath in an effort to conceal his criminal activity. The public expects their elected officials at all levels of government to behave honorably, or at a minimum, lawfully. As his guilty plea demonstrates, Grimm put self-interest above public service.”

Richard Weber, Chief, IRS-Criminal Investigation stated, “The public expects their elected officials to meet their tax obligations before they take office, while they hold office and when they leave office. Today, Mr. Grimm admitted to breaching the public's trust by fraudulently underreporting $900,000 in restaurant gross receipts and lowering payroll taxes through 'off-the-book' payments. As the only law enforcement agency with the authority to investigate federal tax crimes, IRS-Criminal Investigation is committed to ensuring that everyone pays their fair share. In the eyes of the law, public officials are not above the citizens they serve.”

In connection with his guilty plea, Grimm entered into a stipulation of facts, filed with the Court today, that acknowledged the scope of his criminal conduct. As part of that stipulation of facts, Grimm admitted that:

• From 2007 through 2009, Grimm was a member in Healthalicious, a restaurant located in Manhattan. During that time period, Grimm oversaw the day-to-day operations of the restaurant, which included the reporting and distribution of the restaurant’s payroll.


• Grimm under-reported the true amount that Healthalicious earned, using a portion of those unreported receipts to pay the restaurant’s workers “off the books” in cash. With Grimm’s knowledge, the restaurant employed those who were not lawfully admitted to the United States and who were not authorized to work in this country.


• In total, Grimm concealed over $900,000 in Healthalicious’ gross receipts from the accountant who prepared and filed the restaurant’s tax returns. That accountant used the false information provided by Grimm to prepare and file false federal and state tax returns for Healthalicious.


• Grimm also failed to report the “off the books” cash wages he was paying to Healthalicious workers, which resulted in the restaurant paying lower federal and state payroll taxes. Some Healthalicious employees received at least half of their wages in cash, while other workers were paid entirely in cash. Grimm tracked these payments in electronic spreadsheets, but failed to provide accurate information about the restaurant’s payroll to the payroll processing companies employed by the restaurant. As a result, Grimm caused the payroll processing companies to report to the IRS and the NYS Tax Department less than half of the wages Healthalicious actually paid its employees.


• Additionally, Grimm under-reported Healthalicious’ payroll to the New York State Insurance Fund (“NYSIF”), lowering the monthly workers’ compensation premium the restaurant paid to NYSIF.


• As part of his scheme, Grimm caused numerous false documents to be filed with federal and state tax authorities between 2007 and 2010, including: (1) Form 941 Employer’s Quarterly Federal Tax Returns for Healthalicious; (2) Form 1065 U.S. Return of Partnership Income tax returns for Healthalicious; (3) Forms W-2 reported annual wages of Healthalicious employees; (4) his Form 1040 U.S. Individual Income Tax Returns and Form IT-201 Resident Income Tax Returns; and (5) New York State Form ST-100 Quarterly Sales and Use Tax Returns.


• In total, Grimm’s conduct caused federal and New York State tax and NYSIF premium losses between $80,000 and $200,000.

Moreover, while a Member of Congress in January 2013, Grimm was deposed under oath by the attorney of a former employee in connection with a civil lawsuit relating to the labor practices at Healthalicious in which Grimm was a defendant. The lawsuit was pending in the United States District Court for the Southern District of New York. Today, as part of the stipulation of facts, Grimm admitted to testifying during the deposition to things that, at the time, he knew to be false. Specifically, Grimm testified during the deposition that Healthalicious employees had not been paid in cash, when he knew that restaurant employees had in fact been paid “off the books” in cash. Similarly, Grimm testified that, to the extent he used email in operating Healthalicious, he used a Yahoo account to which he no longer had access. Today, Grimm admitted that, at the time of the deposition, he in fact had access to an AOL account which he had used for Healthalicious related business and which contained many emails related to the restaurant.

The government’s case is being prosecuted by Assistant United States Attorneys Anthony M. Capozzolo, James D. Gatta, and Nathan Reilly.

The Defendant:

MICHAEL GRIMM

Age: 44

Staten Island, New York

E.D.N.Y. Docket No. 14-CR-248 (PKC)

NEWARK, N.J. – Three North Jersey men today admitted conspiring to conduct or participate in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”) through a pattern of racketeering activity, including a conspiracy to extort members of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Stephen Depiro, 59, of Kenilworth, New Jersey, a Genovese family soldier, 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 – pleaded guilty today before U.S. District Judge Claire C. Cecchi in Newark federal court. All three pleaded guilty to Count One of the second superseding indictment charging them with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Cernadas and 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, 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. Depiro also controlled a sports betting package that was managed by several others, through the use of an overseas sports betting operation.

During their guilty plea proceedings, Depiro, Cernadas and LaGrasso 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.

The racketeering charge to which Depiro, Cernadas and LaGrasso pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled as follows: Cernadas, Jan. 16, 2015; LaGrasso, March 9, 2015; and Depiro, March 10, 2015.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, 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.

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Defense counsel:

Depiro: Alyssa Cimino Esq., Fairfield, New Jersey

Cernadas: Joseph Hayden Esq., Roseland, New Jersey

LaGrasso: Michael Critchley, Sr., Esq., Roseland

New York residents Margaret Amatulli, Frederick Anderson, Darnell Jackson, and Nicholas Spinelli were arrested today on charges that they engaged in a wire and mail fraud conspiracy to steal over nine million dollars from over 300 investors. A fifth charged defendant, Christopher Damon, is being sought for arrest by the Federal Bureau of Investigation. The five defendants worked at Premier Links, Inc., a Staten Island-based company that operated as an unregistered broker-dealer between 2006 and 2012. As alleged in the criminal complaint unsealed today in federal court in Brooklyn, the defendants targeted elderly investors to steal their money through a fraudulent microcap stock scheme and then used the investors’ money for personal expenses. To date, investigators have identified at least $9.3 million in investor losses from the scheme. If convicted, each defendant faces up to 20 years’ imprisonment, as well as a fine equal to double the investors’ losses, and mandatory restitution to the victims.

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

“As alleged, the defendants conned elderly investors to steal their savings to fund their own personal expenses. Now, their day of reckoning has arrived. We are committed to protecting the investing public from the acts of fraudsters,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.

FBI Assistant Director-in-Charge Venizelos stated, “What was intended as a get-rich-quick scheme was, in fact, a cowardly plan to deceive some of society’s most vulnerable victims, luring them into a false sense of security by promising unrealistic returns on their investments. Unlike those arrested 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.”

According to the complaint unsealed this morning, Premier Links operated from a Staten Island office purportedly to sell stock to investors. However, the defendants and others at Premier Links were never registered as broker-dealers with the Securities and Exchange Commission. Instead, Premier Links operated as a “boiler room,” using “cold callers” and other means to entice victims into investing their money in securities with promises of outsized returns. The defendants located their victims by using a printed list, which one of the defendants referred to as “the suckers list.” Once the victims wired or mailed money to Premier Links, the defendants and other co-conspirators typically stole the funds for their personal use. Bank records show that the defendants converted the investors’ money into cash through over 900 ATM and teller withdrawals. They also wrote checks to themselves and made purchases at Bloomingdales, the Gap, Macy’s, various restaurants, gas stations, and Party City, among other places.

Three defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann at the federal courthouse in Brooklyn. Darnell Jackson is expected to be presented before a United States Magistrate Judge in the Northern District of New York later today for removal proceedings to the Eastern District of New York.

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 Attorney Jack Dennehy.

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:

MARGARET AMATULLI

Age: 45

Brooklyn, New York

FREDERICK ANDERSON

Age: 28

Far Rockaway, New York

CHRISTOPHER DAMON

Age: 45

Queens, New York

DARNELL JACKSON

Age: 48

Hudson, New York

NICHOLAS SPINELLI

Age: 30

Staten Island, New York

E.D.N.Y. Docket No. 2014 M 1082

U.S. Attorney Loretta E. Lynch announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $5.3 billion in criminal and civil actions in Fiscal Year 2014. Of this total amount, $5,311,230,858.40 resulted from cases handled in conjunction with other U.S. Attorneys’ Offices and components of the Department of Justice. Collections from criminal and civil actions filed solely by the Eastern District of New York totaled $42,505,272.81.

In addition, working with partner agencies and divisions within the Department of Justice, the Eastern District forfeited another $39,521,538.00 in assets tainted by crime. Of this amount, $28,475,720 was forfeited in criminal cases and matters, and $11,045,818 was forfeited in civil cases and matters. Forfeited assets are deposited into the Department of Justice Assets Forfeiture and the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. The combined joint collections and asset forfeiture recoveries for the Eastern District total over $5.35 billion, which exceeds the $2.91 billion operating budget for U.S. Attorney’s Office nationwide.

Attorney General Eric Holder announced on November 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.

“The Eastern District of New York, in partnership with its colleagues in offices throughout the nation, is privileged to be part of a sweeping effort to address the harms caused by the financial crisis of 2008 and a multi-billion dollar resolution that includes provisions for relief to struggling and underwater homeowners as they seek to rebuild their lives and communities,” stated U.S. Attorney Lynch. “We stand firm in our ongoing collection and asset forfeiture efforts to protecting the public and recovering funds for the federal treasury and victims of crime and financial frauds.”

FY 2014 Collection Highlights

Financial Fraud

This past year, as part of President Obama’s Financial Fraud Residential Mortgage Backed Securities (RMBS) Working Group, and working with colleagues in the District of Colorado, the Eastern District of New York collected $ 4.2 billion in civil penalties from Citigroup, Inc., the largest penalty ever under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), to resolve claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of RMBS prior to January 2009. Citigroup acknowledged it made serious misrepresentations to the public, including the investing public, about the mortgage loans it securitized in RMBS. In addition to paying the historic penalty of $4.2 billion, Citigroup agreed to pay out $2.5 billion to provide relief to consumers in the form of loan modifications for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas.

Health Care Fraud

Working with the Department’s Civil Frauds Branch, the Eastern District of New York recovered $3,510,245.94 to resolve claims under the federal False Claims Act and New York False Claims Act against Enzo Biochem., Inc., and one of its subsidiaries, Enzo Clinical Laboratories. The settlement resolves allegations that Enzo was falsifying information in the claim submission process in order to inflate and secure reimbursements from the Centers for Medicare & Medicaid Services (“CMS”).

Collections Overview

The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

In the Eastern District of New York as well as nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Long Island resident Robert Rocco, 49, pleaded guilty today before U.S. District Judge Leonard D. Wexler at the federal courthouse in Central Islip, NY, to wire fraud in connection with a series of fraudulent investment schemes that he created. Rocco faces a maximum penalty of 20 years in prison, a fine of over $250,000, and restitution of up to $3,498,940.13. Sentencing will be scheduled when the Presentence Investigation Report is completed.

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

“For nearly seven years, rather than make sound investment decisions as he had promised, Robert Rocco fleeced friends, neighbors, and colleagues and used their money to fund his own lavish lifestyle. His lies caught up to him and his scheme was revealed. Today, through his plea of guilty, Rocco has finally admitted to his criminal conduct,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation for its work on the investigation.

Rocco, while acting as the president of the Dix Hills Soccer Club, solicited club members and volunteers, friends, and neighbors to invest money in a series of businesses that he formed including, Limestone Capital Services (“Limestone”), Advent Merchant Services, LLC and Advent Equity Partners, LLC, that Rocco claimed would earn high rates of return on investments. Rocco told investors that they would receive returns of up to 18% of their principal investment annually through the companies’ investments in ventures that purportedly included providing loans to finance wholesale cigarette purchases and a credit card processing venture. Rocco solicited and received approximately $5 million in investor money between 2006 and 2013, which was not invested as promised. Instead, he misappropriated the money and solicited money from new investors which he used to pay purported profits to earlier investors, thus concealing the earlier misappropriation. Rocco also sent account statements to investors that falsely showed that investors’ accounts had earned high rates of return. Between January and March 2010, Rocco deposited $66,915 in checks from the soccer club into Limestone and later distributed the proceeds of the checks to early investors in Limestone, leaving the soccer club with no funds to operate. In April 2010, Rocco sought and received donations to allow the club to continue operations.

The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.

The Defendant:

ROBERT ROCCO

Age: 49

Dix Hills, New York

E.D.N.Y. Docket No. 13-CR-664 (LDW)

NEWARK, N.J. - The former president of International Longshoremen’s Association (ILA) was sentenced today to 22 months in prison for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from 2008 through 2011, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Three of a second superseding indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.

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

During their guilty plea proceedings, Leonardis – along with Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from approximately 2006 through 2007; and Robert Ruiz, 56, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 and former ILA representative – admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. 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. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.

Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. 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.

In addition to the prison term Judge Cecchi sentenced Leonardis to serve three years of supervised release.

Aulisi and Ruiz previously pleaded guilty before Judge Cecchi to conspiring to extort Christmastime tributes from ILA Local 1235 members. In October 2014, Aulisi and Ruiz were sentenced to 18 months and 20 months in prison, respectively.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, 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 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.

The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.

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Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey

BROOKLYN, NY – United States Attorney for the Eastern District of New York Loretta E. Lynch released the following statement regarding the federal investigation into the July death of Eric Garner of New York:

“Since the death of Eric Garner in July, our office has monitored this case closely. At the outset, informed by prior experience and in keeping with the standard practice in these types of cases in New York, the local investigation proceeded first. As the Attorney General explained earlier tonight, because the local investigation has come to a close, the Justice Department will now move forward with its own independent inquiry to determine whether federal civil rights laws have been violated. The investigation will be conducted by the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division. The investigation will be fair and thorough, and it will be conducted as expeditiously as possible.”

Earlier today, following five weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Christian John and Marvin Johnson. John was the leader of a violent criminal enterprise called the “Hull Street Crew,” that was found to be responsible for six murders, two attempted murder, armed robberies, murder-for-hire, narcotics distribution, and gambling on dog fighting, all of which occurred in the Bushwick, Bedford-Stuyvesant, and East New York areas of Brooklyn. Johnson committed a brutal murder with John that the jury found to have aided the criminal enterprise. When sentenced by United States Senior District Judge Frederic Block, both defendants face mandatory life sentences.

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

United States Attorney Lynch extended her grateful appreciation to the FBI and the New York City Police Department for their outstanding assistance in this case.

Christian John was found guilty of the 2000 murder of Charlemagne Lormand, the 2008 murder of Barry Haynes, the 2008 murder of Daquane Shelton and the 2011 murders of Jason Bostic and Aaron Formey. Both defendants were found guilty of the 2006 murder of Earle Kevin Obermuller. During the Obermuller murder, the defendants lured the victim to an abandoned building where they duct taped his entire head and watched him suffocate to death. The defendants then set him on fire. During the 2011 murders of Jason Bostic and Aaron Formey, the defendant Christian John ordered his crew members to bind the victims with duct tape and to kill them. Among his many other crimes, Christian John was also found guilty of assaulting a crew member by tying him up and pouring scalding water over his body.

The government’s case was prosecuted by Celia A. Cohen, Soumya Dayananda, and Robert T. Polemeni.

The Defendants:

CHRISTIAN KESTON JOHN

Age: 30

Brooklyn, N.Y.

MARVIN JOHNSON

Age: 30

Brooklyn, N.Y.

Eight United States Postal Service employees at the Logistical and Distribution Priority Mail Processing Center in Bethpage, Long Island (“Bethpage L&DC”) were arrested last night and charged with theft of mail and conspiracy to distribute and possess with intent to distribute more than 129 pounds of marijuana over a six-month period. The criminal complaint was unsealed today in federal court in Central Islip charging Kempleton Nash, Jr., Eugene Williams, Timothy Marshall, Jerrod Rollerson, Tanicha Grenald-Allen, Sherwin Parkes, Lloyd Johnson and Jose Hurtado. The defendants are scheduled to appear this afternoon before United States Magistrate Judge Gary Brown at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Rafael Medina, Special Agent-in-Charge, United States Postal Service, Office of Inspector General, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York. The investigation was conducted by the USPS-OIG and the DEA’s Long Island District Office Task Force, which is comprised of agents and officers from the DEA, the Nassau County District Attorney’s Office, the Suffolk County District Attorney’s Office, the Suffolk County Sheriff’s Office and the Hempstead Police Department.

As detailed in the criminal complaint, U.S. Priority Mail shipping is increasingly becoming a method of transporting and delivering controlled substances across the United States. In this case, rather than alerting law enforcement agents to the presence of suspicious packages, the defendants allegedly stole the parcels from the processing line and placed them in a corridor outside the Bethpage L&DC accessed by a fire exit door whose alarm had been disabled. The defendants then retrieved the parcels from the corridor and carried the packages out of the building through the lobby of the adjacent business park. The defendants were also observed removing parcels from the processing line, and then attaching new labels re-directing delivery to alternative addresses. After “overlabeling” the parcels, the defendants allegedly reinserted the parcels into the normal line for delivery to the new destination. Between September and November, federal agents obtained search warrants for 12 of the “overlabeled” parcels, which resulted in the seizure of some 129 pounds of marijuana, with an estimated street value ranging from $100,000 to $930,000.

“Abusing their positions of trust as postal employees, the defendants allegedly stole hundreds of packages to further their drug dealing efforts,” stated United States Attorney Lynch. “We and our partners in law enforcement are committed to ensuring that government employees act with the degree of integrity that the public expects and deserves.” Ms. Lynch also thanked the United States Postal Inspection Service, the New York State Police and the Suffolk County Police Department for their assistance in the investigation.

“The conduct alleged in the criminal complaint is beyond disgraceful and our office will continue to tirelessly investigate those postal service employees who violate the public’s trust,” stated USPS-OIG Special Agent-in-Charge Medina. “The dedicated work of the hundreds of thousands of postal service employees should never be overshadowed by those who compromise their integrity for personal gain.”

“By allegedly targeting and stealing suspiciously shaped priority packages sent from the West Coast to further their drug trafficking network, the defendants became targets of investigation themselves. Not only did the defendants allegedly abuse their positions as Postal Service employees, but in doing so they endangered the security of the postal service facility and their coworkers,” stated DEA Special Agent-in-Charge Hunt. “I applaud the work of the USPS-OIG and the federal, state and local law enforcement partners who worked on this investigation.”

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 Attorney Charles N. Rose.

The Defendants:

KEMPLETON NASH, JR.

Age: 29

Cambria Heights, New York

EUGENE WILLIAMS

Age: 37

Brentwood, New York

TIMOTHY MARSHALL

Age: 28

Far Rockaway, New York

JERROD ROLLERSON

Age: 25

Hempstead, New York

TANICHA GRENALD-ALLEN

Age: 36

Brooklyn, New York

SHERWIN PARKES

Age: 36

Brooklyn, New York

LLOYD JOHNSON

Age: 34

St. Albans, New York

JOSE HURTADO

Age: 43

North Bellmore, New York

E.D.N.Y. Docket No. 14-MJ-1014

A decree of forfeiture was issued today by the Honorable Brian M. Cogan in federal court in the Eastern District of New York forfeiting the fossilized skull and vertebrae of an Alioramus dinosaur (the “Dinosaur Skull”). The Alioramus was a dinosaur that lived in the late Cretaceous period, approximately 65 to 70 million years ago. It is related to the Tyrannosaurus Rex and Tarbosaurus. The Dinosaur Skull was falsely described as a French replica in January 2014, when it was shipped to the United States by Geofossiles, Inc., a French fossil dealer. Upon its arrival in the United States from France, the Dinosaur Skull was seized by U.S. Customs and Border Protection (CBP) with the assistance of Homeland Security Investigations (HSI). On September 4, 2014, the United States filed a civil action to forfeit the Dinosaur Skull, alleging that it was stolen Mongolian property that was smuggled into the United States using false declarations. As Geofossiles did not contest the allegations in the United States’ complaint, the court ordered the forfeiture of the Dinosaur Skull.

The forfeiture was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, HSI, New York.

“This case highlights the effectiveness of civil forfeiture tools in removing stolen cultural property from the stream of commerce so that it can be returned to its rightful owners,” stated United States Attorney Lynch. “Lies and forgeries are no match for the vigilance of our partners at CBP and HSI. Together, we are determined to expose and halt the flow of stolen cultural property entering our ports.” Ms. Lynch thanked the Mongolian government and the Central Museum of Mongolian Dinosaurs for their assistance.

“This case articulates the level of importance placed in identifying the provenance of cultural artifacts and acknowledging patrimony laws. Smugglers will falsify documents and lie about the origin and value of a cultural artifact just to get it across our borders to sell to the highest bidder,” said HSI Special Agent-in-Charge Hayes. “The forfeiture of this pre-historic fossil highlights HSI’s commitment along with our partners at CBP to assist foreign governments in detecting, deterring and disrupting the flow of priceless stolen foreign art, relics and fossils into the United States.”

When Geofossiles shipped the Dinosaur Skull to the United States, it falsely described the shipment as a low-value replica made in France. After the Dinosaur Skull was seized, Geofossiles petitioned CBP for its release. In the petition, Geofossiles conceded that the Dinosaur Skull was a genuine fossil, comprised of 70% original material and 30% cast to complete the skull. Geofossiles further admitted that the Dinosaur Skull’s country of origin was Mongolia, not France, and attached a contract to sell the piece for $250,000.

Under Mongolian law, significant fossil finds like the Dinosaur Skull are national property and, even if privately owned, cannot be sold to non-Mongolians or permanently exported. Nonetheless, Geofossiles attached to the petition several documents that purported to be Mongolian records authorizing the sale and export of the Dinosaur Skull from Mongolia to a Korean company in 2006. The records supplied by Geofossiles described the shipment as containing an incongruous combination of fossils and traditional Mongolian structures called “gers.” When Mongolian authorities located the original records for this shipment, they confirmed that only the gers were declared. Thus, the records supplied by Geofossiles were falsified to include fossils.

Pursuant to applicable law and Department of Justice guidelines, Mongolia will now have an opportunity to submit a petition to the United States for the return of the Dinosaur Skull.

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

E.D.N.Y. Docket No. 14-CV-5198(BMC)

NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.

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

LaGrasso admitted that he and others conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. 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.

Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). 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.

Two Coral Gables residents pled guilty today before U.S. District Judge Jose J. Martinez to their participation in a scheme to obtain more than $9.5 million 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”).

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, George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

Carl Fiorentino, 57, pled guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion. According to his plea agreement, Carl Fiorentino has also agreed to forfeit, among other things, $1,961,049.90 which represents proceeds traceable to his criminal conduct.

Gilbert Fiorentino, 54, pled guilty to one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the Internal Revenue Service. According to his plea agreement, Gilbert Fiorentino has also agreed to forfeit, among other things, 99 gold coins that he received as a part of the kickback scheme.

According to admissions in the defendants’ plea agreements and made in court at the time they entered their pleas, Gilbert Fiorentino served until 2011 as a director of Systemax, was the Chief Executive Officer of the company’s Technology Product Group, and worked at Systemax’s Miami offices; Carl Fiorentino served until 2011 as the president of TigerDirect and worked at Systemax’s Miami offices as a senior executive responsible for sourcing and purchasing computer and electronics peripherals from third party vendors, some of them located in Asia.

Between 2003 and 2011, the defendants received kickbacks from, among others, among others, a Taiwan-based supplier, RICI International and its affiliates. Carl Fiorentino received in excess of $9.5 million in kickbacks; Gilbert Fiorentino received more than $600,000 in kickbacks including, among other things, approximately $200,000 in gold coins. In addition, as a part of the scheme, both misappropriated Systemax merchandise. Carl Fiorentino used the proceeds of his illegal activity to obtain, among other things, a Coral Gables luxury waterfront property, artwork, home furnishings and high-end electronics. Both defendants admitted that, as a result of their kickback scheme, they caused Systemax to pay more for goods and services than it would have in the absence of the schemes. Additionally, both men failed to disclose to the IRS, and pay taxes upon, the income they received as a part of their criminal conduct.

Both defendants concealed from Systemax and its auditors the payments they received pursuant to the kickback scheme. Accordingly, Systemax, unaware that the defendants had received payments and engaged in fraudulent activities, filed inaccurate statements with the U.S. Securities and Exchange Commission as a result.

When Carl Fiorentino learned that federal agents were investigating his conduct, he illegally instructed certain witnesses to conceal the truth from the agents.

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. Both Carl and Gilbert Fiorentino are scheduled to be sentenced on February 10, 2015, at 1:30 p.m.

Mr. Ferrer and Ms. Lynch commended the investigative efforts of the FBI and IRS-CI. 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.

A copy of this press release may be found on the website of the United States Attorney’s for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

BROOKLYN, NY – Connecticut resident Dr. Okon Umana, 67, pleaded guilty today in federal court in the Eastern District of New York to conspiring to defraud the United States in connection with his role as a “no show” doctor in a $13 million health care fraud scheme. Dr. Umana is the last of nine defendants charged to plead guilty in connection with the scheme at the Cropsey Medical Care PLLC clinic in Bensonhurst, Brooklyn.

Today’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Thomas O’Donnell, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).

“Dr. Umana dishonored his medical license when he fraudulently billed Medicare and Medicaid at the taxpayers’ expense,” stated United States Attorney Lynch. “Dr. Umana is the final defendant to be convicted in connection with the government’s investigation of the Cropsey Medical Care clinic, which submitted more than $13 million in fraudulent claims to Medicare and Medicaid. We will continue to investigate and prosecute fraud to protect the integrity of these vital health care programs.” U.S. Attorney Lynch extended her grateful appreciation the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, for their outstanding work on the investigation.

According to court documents, from 2009 to 2012, Umana was the medical director of the Cropsey Medical Care clinic. Patients at Cropsey Medical received medically unnecessary physical therapy, diagnostic testing and other services, which were provided by a physician assistant who was acting without supervision. Such purported medical services were then fraudulently billed by Cropsey Medical to Medicare and Medicaid under Dr. Umana’s provider number. From approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests that were not medically necessary and often did not even occur.

Dr. Umana pleaded guilty before U.S. District Judge John Gleeson. At sentencing on April 15, 2015, Dr. Umana faces a maximum penalty of five years in prison, a fine of over $250,000, restitution of up to $6,429,330 and forfeiture of $6,550,036.

The case was investigated by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Assistant U.S. Attorney Shannon C. Jones of the Eastern District of New York and Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to prevent and deter fraud and enforce anti-fraud laws around the country. Since its inception in March 2007, the Strike Force, now operating in nine cities, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov

The Defendant:

OKON UMANA

Age: 67

West Haven, Connecticut

E.D.N.Y. Docket No. 12 CR 617 (S-1)

Earlier today in federal court in Brooklyn, New York, Elvis Rafael Rodriguez was sentenced to 34 months’ imprisonment for his participation in an international cybercrime organization responsible for two cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours. Two of Rodriguez’s co-defendants were previously sentenced for their roles in the conspiracy -- on October 27, 2014, Evan Peña was sentenced to 22 months’ incarceration, and on October 24, 2014, Saul Genao was sentenced to 15 months’ incarceration. Rodriguez, Peña and Genao were also ordered to pay $2,782,597 in restitution and $2,400,000 in forfeiture. Rodriguez, Peña, Genao and their 10 co-defendants pled guilty to charges stemming from their participation in the scheme.

The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Robert J. Sica, Special Agent in Charge, United States Secret Service, New York Field Office.

“The defendants and their co-conspirators participated in a massive 21st century bank heist of unprecedented scale and scope using debit cards and the Internet rather than guns and masks. While the technical intrusion was highly sophisticated and the teams of cashers highly organized, law enforcement moved with even greater expertise to solve the cybercrime and bring the perpetrators to justice,” stated United States Attorney Lynch.

Secret Service Special Agent in Charge Sica stated, “Secret Service agents utilize state-of-the-art investigative techniques to identify and pursue cyber criminals around the world. This scheme involved multiple network intrusions and data thefts for illicit financial gain. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”

Rodriguez and his co-defendants were members of the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data and eliminate withdrawal limits. The stolen card data was then instantly disseminated worldwide and used to make fraudulent ATM withdrawals on a massive scale. The defendants acted as “cashers,” who together with co-conspirators, withdrew almost $2.8 million in cash from ATMs in New York City in a matter of hours. Rodriguez and various co-defendants also laundered the proceeds of the crime by, among other things, making large cash deposits and transporting suitcases containing hundreds of thousands of dollars in cash to co-conspirators in Florida and Romania.

The cyberattacks employed by the defendants and co-conspirators are known in the cyber underworld as “Unlimited Operations” and rely upon both highly sophisticated hackers as well as organized criminal cells whose role is to withdraw the cash as quickly as possible and then launder the proceeds and repay the organizers. The defendants and co-conspirators conducted two Unlimited Operations: the first occurred on December 22, 2012 and resulted in approximately $5 million in losses worldwide. In the New York City area, over the course of just two hours and 25 minutes, the defendants and co-conspirators withdrew approximately $400,000 in fraudulent ATM withdrawals. The second Unlimited Operation occurred on February 19-20, 2013 and resulted in nearly $40 million in losses worldwide; the defendants and their co-conspirators withdrew approximately $2.4 million in the New York City area.

Ms. Lynch thanked MasterCard, RAKBANK and the Bank of Muscat for their cooperation with this investigation and expressed her gratitude for the timely and extensive assistance of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; law enforcement authorities in Japan, Canada, Germany and Romania; and authorities in the United Arab Emirates, Dominican Republic, Mexico, Italy, Spain, Belgium, France, United Kingdom, Latvia, Estonia, Thailand and Malaysia.

The government’s case is being prosecuted by Assistant United States Attorneys Hilary Jager, Brian Morris, Doug Pravda and Richard Tucker.

The Defendants:

ELVIS RAFAEL RODRIGUEZ

Yonkers, New York

Age: 25

EVAN PEÑA

Yonkers, New York

Age: 37

SAUL GENAO

Yonkers, New York

Age: 25

Today U.S. Attorney Loretta E. Lynch announced the court approval of a settlement with Dr. Gilbert Lederman, the former Director of Radiation Oncology at Staten Island University Hospital (SIUH).  Dr. Lederman has agreed to pay $2.35 million to resolve claims that he defrauded the Medicare Program when he sought reimbursement for stereotactic body radiosurgery (BRS), a procedure which Dr. Lederman claimed to have pioneered in the United States.

The United States asserted that Dr. Lederman violated the False Claims Act (FCA) by billing Medicare for BRS provided to a number of patients at SIUH during the period beginning1996 through 2003.  At that time, Medicare limited coverage for stereotactic radiosurgery to the treatment of cancers above-the-neck and excluded BRS as “investigational,” or experimental. The United States further asserted that Dr. Lederman miscoded his claims to falsely indicate that he had treated patients above-the-neck in order to get paid by Medicare.

“Providers who misrepresent their services -- whether for the purpose of obtaining greater reimbursement or in an effort to conceal the fact that a treatment was deemed investigational -- continue to pose a threat to Medicare, our nation’s largest insurer.  In response, we will continue to vigorously pursue those providers who place their own self-interest above their obligation to accurately report the nature of the services they provide to their Medicare patients,” stated United States Attorney Lynch.

In May 2014, U.S. District Judge John Gleeson granted the United States partial summary judgment against Dr. Lederman.  The Court found, as a matter of law, that certain claims that Dr. Lederman submitted to Medicare for BRS were false because the claims were miscoded and concerned treatment below-the-neck.  The Court also found Dr. Lederman liable to the United States as to claims for unjust enrichment and payment on mistake of fact. United States ex rel. Ryan v. Lederman, 2014 WL 1910096 (E.D.N.Y. May 13, 2014).

The civil action was initially filed under the qui tam provisions of the FCA by relator Elizabeth M. Ryan, the widow of a former SIUH cancer patient, against Dr. Lederman and SIUH.  In September 2008, the United States and SIUH reached a court-approved settlement whereby SIUH paid the United States more than $25 million.

Assistant U.S. Attorneys Laura D. Mantell and Richard K. Hayes represented the United States.  They were assisted by Emily J. Rosenthal, Affirmative Civil Enforcement Auditor; Jill Merenda, Paralegal Specialist; and Marie V. Bonkowski, Senior Trial Counsel in the Commercial Litigation Branch of the Justice Department’s Civil Division.

Preet Bharara, the United States Attorney for the Southern District of New York (“SDNY”), and Loretta E. Lynch, the United States Attorney for the Eastern District of New York (“EDNY”), announced that DANIEL BARRERA BARRERA, also known as “Loco Barrera,” a citizen of Colombia, pled guilty today in the Southern District of New York before U.S. Magistrate Judge Ronald L. Ellis to conspiring to distribute and manufacture cocaine knowing that it would be imported into the United States. For decades, BARRERA manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the U.S., and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. BARRERA was previously extradited from Colombia to the United States on July 9, 2013.

In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated BARRERA as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. BARRERA was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the U.S. sought and obtained BARRERA’s extradition. The extradition and guilty plea of BARRERA is the result of an ongoing Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation led by the Drug Enforcement Administration (“DEA”) and Homeland Security Investigations (“HSI”). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

U.S. Attorney Preet Bharara said: “Daniel Barrera Barrera operated at the interface of two Colombian terrorist organizations that were sworn enemies of each other but each of which benefitted from Barrera’s patronage. As he has now admitted in our courthouse, Barrera bought cocaine paste from the FARC and, under the protection of the AUC, turned it into hundreds of tons of hugely profitable product annually, some of which he knew was intended for distribution in the U.S. A drug kingpin who enriched two terrorist organizations and himself by producing and peddling poison now stands to lose his wealth, his empire, and his liberty.”

U.S. Attorney Loretta E. Lynch said: “Daniel ‘Loco’ Barrera Barrera’s reign as one of the world’s most prolific narcotics traffickers has come to an end. Barrera’s illegal empire, funded by millions of dollars of illicit proceeds and backed by some of the most lethal drug cartels and terrorist groups in the world, wreaked havoc in Colombia and around the world for decades. The amount of destruction Barrera wrought upon the world, all in pursuit of staggering profits, is truly incalculable. This plea demonstrates our government’s commitment to bringing all narcotics traffickers to justice, no matter how rich, powerful, ruthless and violent they may be.”

As alleged in the Superseding Indictment filed in the Southern District of New York (S1 07 Cr. 862 (AKH)), the Superseding Indictment filed in the Eastern District of New York (S2 10 Cr. 288 (ILG)), statements made at today’s guilty plea and other court proceedings, and other information in the public record:

From 1998 until 2010, BARRERA ran a cocaine manufacturing and trafficking syndicate out of Colombia. BARRERA purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia, or the “FARC”). The FARC, which has been and is dedicated to the violent overthrow of the democratically elected Government of Colombia, has been the world’s largest supplier of cocaine and has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.

After purchasing the raw cocaine base from the FARC, BARRERA converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia. At the time of BARRERA’s criminal conduct, the FARC and the AUC were both designated by the U.S. Department of State as Foreign Terrorist Organizations.

After processing the cocaine powder in his laboratories, BARRERA arranged for the shipment and transportation of the cocaine powder to locations on four continents, including the United States. Although BARRERA purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees BARRERA paid to the AUC also allowed him to safely move the processed cocaine through and out of Colombia.

Each month, BARRERA processed approximately 30,000 kilograms of raw cocaine base into about the same amount of cocaine powder, resulting in approximately 400 tons of cocaine annually. In total, BARRERA reaped tens of millions of dollars of profits from cocaine trafficking, which he laundered through illicit means.

Earlier today, BARRERA, 47, pled guilty in the Southern District of New York to one count of conspiring to distribute and manufacture cocaine knowing it would be unlawfully imported into the U.S. On that count, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. BARRERA is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on February 27, 2015.

On October 9, 2014, BARRERA pleaded guilty in the Eastern District of New York to one count of conspiring to launder money. On that count, BARRERA faces a maximum sentence of 20 years in prison. BARRERA is scheduled to be sentenced by U.S. District Judge I. Leo Glasser on January 22, 2015.

BARRERA is also charged in the Southern District of Florida with one count of conspiring to import cocaine into the U.S. and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the U.S. On those counts, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. Following his prosecutions in the Southern and Eastern Districts of New York, BARRERA will be presented and arraigned in the Southern District of Florida. The charge and allegations contained in the Southern District of Florida Indictment are merely accusations and the defendant is presumed innocent of that charge unless and until proven guilty.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Bharara and Ms. Lynch praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which comprises agents and officers of the DEA, the New York City Police Department, and the New York State Police – as well as HSI Bogota. Mr. Bharara and Ms. Lynch also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.

The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jenna Dabbs, Benjamin Naftalis, and Andrea Surratt are in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Justin Lerer, Soumya Dayananda, and Amir Toossi are in charge of the prosecution.

14-CR-340

Two Coral Gables residents were charged today by separate informations for their participation in a scheme to obtain more than $9 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”).

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, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

According to the charging documents:

Systemax, has its principal place of business in Port Washington, New York and sells 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, 54, was a director of Systemax and was the Chief Executive Officer of its Technology Product Group, including its subsidiary TigerDirect. Carl Fiorentino, 57, was the former president of TigerDirect, and both Fiorentino brothers worked at TigerDirect’s Miami offices before they were terminated on April 18, 2011.

As senior executives of TigerDirect, Gilbert Fiorentino and Carl Fiorentino had responsibility for purchasing and sourcing hundreds of millions of dollars-worth of computer and electronics items for Systemax and its various operations. According to the informations, 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. In the case of one Asia-based supplier of computer parts and accessories, court documents allege the brothers received more than $9 million in cash and undocumented payments in return for steering more than $230 million in business to the supplier.

As further alleged, while serving as a senior executive of TigerDirect, Carl Fiorentino received millions of dollars in payments from a TigerDirect supplier, including more than $3 million to pay for his own waterfront residence in Gables Estates, and millions of dollars-worth of luxury furnishings, including furniture, art and a high-tech security system. The information charging Carl Fiorentino additionally alleges that, in 2007, he filed a false United States Individual Income Tax Return in which he understated his taxable income by more than $4 million dollars.

According to court papers, while serving as a director of Systemax and the CEO of TigerDirect, Gilbert Fiorentino received hundreds of thousands of dollars in cash payments, including deliveries of cash in the parking lot of the Miami offices of TigerDirect, from one supplier, gold coins valued at more than $150,000 from a vendor, and deliveries of furniture and other goods and services to his waterfront home in Gables Estates. The information charging Gilbert Fiorentino further alleges that he misappropriated company merchandise for his own benefit, including by paying a third party more than $100,000 in electronics to provide upkeep for Gilbert Fiorentino’s yacht.

As a public company, Systemax was required to comply with Section 404 of the Sarbanes-Oxley Act of 2002 that requires certain management personnel to sign annual conflict of interest questionnaires, certifications of compliance with Systemax’s corporate ethics policy, and representations about transactions out of the course of ordinary business. These questionnaires include a representation as to whether the employee had “receive[d] or ma[de] any arrangements for the receipt of any compensation or other personal financial benefit from a current or potential supplier, competitor or customer” of Systemax. As alleged in the informations, from 2005 through 2011 Gilbert and Carl Fiorentino regularly signed such 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 Systemax. Gilbert Fiorentino regularly met with Systemax’s independent auditors at the offices of TigerDirect in Miami, while the auditors were conducting quarterly reviews and annual audits of the company. In written management representation letters and in direct conversations, Gilbert Fiorentino made false and misleading statements to Systemax’s auditors regarding the accuracy of the company’s books, records and accounts as they pertained to his own compensation, the compensation of his brother, Carl Fiorentino, and both defendants’ receipt of kickbacks from third parties, among other things. These false and misleading statements and omissions were material to the ability of the auditors to perform accurate reviews and audits of the company’s books, records, and accounts, and to assess Systemax’s internal controls over financial reporting.

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 information filed today against Carl Fiorentino charges him with one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349 and one count of tax evasion, 26 U.S.C. § 7201, in connection with his efforts to conceal his illicit income from the IRS and evade paying taxes from such income. Carl Fiorentino faces a statutory maximum of 25 years in prison. The information filed today against Gilbert Fiorentino charges him with one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the IRS, in violation of 18 U.S.C. § 371. He faces a statutory maximum of five years in prison.

U.S. Attorney Ferrer stated “Gilbert and Carl Fiorentino put their financial gain and lavish lifestyle ahead of their responsibilities as corporate officers and directors. They accepted kickbacks, driving up the price of the consumer electronics and passing the price increase to customers. The Fiorentinos took advantage of their positions of trust. But they didn’t get away with it. Today’s charges demonstrate that we will hold liable heads of companies who abuse their positions and violate tax and securities laws that protect investors in financial markets.”

“As alleged, the brothers Fiorentino were supposed to choose their companies’ suppliers based on the best price they could get. Instead, they made their decisions based on the biggest kickbacks for themselves. In so doing, they abused the trust placed in them and cheated their employers, the shareholders, and the IRS,” stated U.S. Attorney Lynch. “We and our law enforcement partners will prosecute to the fullest extent of the law all those who seek to profit by such fraud.”

IRS-CI Special Agent in Charge Kelly R. Jackson stated, "These high-ranking corporate officials held positions of trust not only in their companies but also in the eyes of the public. They chose to receive kickbacks and side payments that they intended to hide from Systemax and the IRS. Their criminal actions are unacceptable to both investors and to the tax paying public. IRS Criminal Investigation, along with its law enforcement partners, will vigorously pursue corporate officers who misuse their positions of trust and violate the tax laws.”

Mr. Ferrer and Ms. Lynch commended the investigative efforts of the FBI and IRS-CI. 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.

An information is only an accusation and a defendant is presumed innocent until proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Fiorentino, Gilbert Information
Fiorentino, Carl Second Superseding Information

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX:  (716) 551-3051

ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kelly Nicole Borger, 32, of Rochester, NY, and Los Angeles, CA, was sentenced by U.S. District Judge David G. Larimer to one year in prison, and ordered to pay restitution to the Internal Revenue Service totaling $532,351.

Assistant U.S. Attorney John J. Field, who handled the matter, stated that from April 2011 to April 2012, Borger conspired with Michael Carney of Los Angeles, CA, to prepare and submit false income tax returns. Borger emailed Carney the names and other identifying information of 40 individuals in Rochester known to Borger. Carney then prepared 50 fraudulent tax returns in the names of these individuals claiming undeserved tax refunds totaling $532,351.  Borger received at least $169,000 for her role in conspiracy.

Michael Carney was convicted and sentenced to 41 months in prison.

The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.

WASHINGTON - The United States filed civil complaints in U.S. District Court for the Eastern District of New York today against individuals and entities alleged to be running two related multimillion-dollar mail fraud schemes. The United States also filed a motion seeking a temporary restraining order and a preliminary injunction to immediately put a stop to the ongoing schemes.

According to the complaints, the defendants operate two mail fraud schemes in which they send solicitation letters purportedly written by world-renowned psychics to consumers through the U.S. mail. The first scheme, operated by Destiny Research Center and the Canadian company Infogest Direct Marketing, sends direct mail solicitations allegedly written by psychics Maria Duval and Patrick Guerin. The second scheme, operated by Christine Moussu through New York companies CLGE Inc. and I.D. Marketing Solutions Inc., sends direct mail solicitations allegedly written by psychics David Phild, Sandra Rochefort, Antonia Donera and Nicholas Chakan.

“The complaints filed today charge that the companies and individuals made blatant misrepresentations in order to reap financial gain by scamming thousands of Americans, many of whom were elderly and in a vulnerable financial condition,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Our job at the Justice Department is to put a stop to fraud schemes that seek to take advantage of vulnerable Americans.”

The complaints allege that in the letters, the purported psychics state that they are contacting the recipient based on a specific vision or psychic reading revealing that the recipient has the opportunity to dramatically improve his or her financial circumstance, including claims of winning millions in the lottery. The solicitation letters appear personalized, repeatedly referring to the recipient by first name and often containing portions that appear handwritten. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. The complaints allege that in reality, the solicitations are identical, mass- produced form letters. Victims responded to the solicitations by completing a form and submitting a payment, usually around $20 to $50, via U.S. mail. Victims often also wrote personal, handwritten letters back to the purported psychics, which were never opened, and received worthless, mass-produced trinkets and further solicitations after sending these payments.

“Relying on superstition and fear, the defendants defrauded tens of millions of dollars from thousands of vulnerable citizens,” said U.S. Attorney Loretta Lynch for the Eastern District of New York. “We have, and will continue to, use all means at our disposal to protect our citizens from such schemes to defraud.”

“These mass solicitations containing purportedly personalized messages to unsuspecting victims were blatant fraud,” said Acting Inspector in Charge Troy Raper of the U.S. Postal Inspection Service's Criminal Investigation Group. “Postal Inspectors aggressively investigate any operations that use the U.S. mail to fleece unsuspecting victims.”

Metro Data Management Inc., doing business as Data Marketing Group Ltd., a company on Long Island, New York, along with its president, Keitha Rocco, performed “caging” services on behalf of both mail fraud schemes. According to the complaint, these services consisted of processing victim payments and maintaining databases of consumers who responded to the fraudulent solicitations. The government alleges that Data Marketing Group processed as much as $500,000 in victim payments in a given two-week period for the Destiny Research Center scheme, resulting in annual gross receipts of at least $13 million. The CLGE scheme brought in annual revenue of $1.5 to $2 million. Evidence presented by the United States in support of its motion indicates that victims of the mail fraud schemes were elderly, ill and in perilous financial condition.

The government is seeking an injunction under the Anti-Fraud Injunction Statute immediately shutting down the fraudulent schemes in order to protect victims from further harm. The injunctions sought by the United States would enjoin the defendants from using the mail to distribute the fraudulent solicitations or to collect victim payments, and from selling lists of consumers who have responded to the solicitations. The injunctions would also authorize the U.S. Postal Service to detain any outgoing solicitations mailed by the defendants and any incoming responses to solicitations.

The Justice Department’s case is being handled by the Civil Division’s Consumer Protection Branch and the U.S. Postal Inspection Service, in coordination with the U.S. Attorney’s Office in the Eastern District of New York.

The claims made in the complaints are allegations only, and there has been no determination of liability.

Earlier today, the U.S. State Department’s Transnational Organized Crime Rewards Program announced the offering of rewards for information leading to the arrest and/or conviction of Romanian fugitive Nicolae Popescu,1 the leader of an international organized crime syndicate that ran a multimillion dollar cyber fraud scheme, and Dumitru Daniel Bosogioiu,2 another Romanian fugitive charged with participating in the scheme. Up to $1 million is being offered for information on Popescu and up to $750,000 for information on Bosogioiu. Interpol has previously issued Red Notices to foreign law enforcement partners seeking assistance in the apprehension of these fugitives, and the FBI has also released “Wanted” posters to facilitate their arrests. Today, the FBI also announced the addition of Nicolae Popescu to the FBI’s Most Wanted Cyber Fugitive List (www.fbi.gov/wanted/cyber).

Defendants Nicolae Popescu and Dumitru Daniel Bosogioiu were originally charged in a criminal complaint with 11 other defendants for their participation in a cyber fraud conspiracy that targeted primarily American consumers on such U.S.-based websites as Cars.com and AutoTrader.com. The charges were brought by the office of Loretta E. Lynch, United States Attorney for the Eastern District of New York. Six of the defendants were arrested in a coordinated international takedown on December 5, 2012, and two other defendants subsequently voluntarily surrendered to the United States to face prosecution,3 but Popescu, Bosogioiu and others have remained at large.

As alleged in the complaint and subsequent indictment, the defendants participated in a long-term conspiracy to saturate Internet marketplace websites including eBay, Cars.com, AutoTrader.com, and CycleTrader.com with detailed advertisements for cars, motorcycles, boats, and other high-value items – generally priced in the $10,000 to $45,000 range – that did not actually exist. The defendants employed co-conspirators who corresponded with the victim buyers by email, sending fraudulent certificates of title and other information designed to lure the victims into parting with their money. The defendants also pretended to sell cars from nonexistent auto dealerships in the United States and created phony websites for these fictitious dealerships. As part of the scheme, the defendants produced and used high-quality fake passports to be used as identification by co-conspirators in the United States to open American bank accounts. After the “sellers” reached an agreement with the victim buyers, they would often email them invoices purporting to be from Amazon Payments, PayPal, or other online payment services, with instructions to transfer the money to the American bank accounts used by the defendants. The defendants and their co-conspirators allegedly used counterfeit service marks in designing the invoices so that they would appear identical to communications from legitimate payment services. The illicit proceeds were then withdrawn from the U.S. bank accounts and sent to the defendants in Europe by wire transfer and other methods.

The complaint and indictment describe the extent to which Popescu, in particular, led the conspiracy. Among other things, Popescu coordinated the roles of the various participants in the scheme – he hired and fired passport makers based on the quality of the fake passports they produced, supervised co-conspirators who were responsible for placing the fraudulent ads and corresponding with the victims, and ensured that the illicit proceeds transferred to the U.S. bank accounts were quickly collected and transferred to himself and others acting on his behalf in Europe. It is estimated that the defendants and their co-conspirators earned over $3 million from the fraudulent scheme.

According to the charging documents, Popescu and his close associate Bosogioiu demonstrated they were aware of the risks of prosecution in the United States. In a recorded conversation on October 23, 2011, Bosogioiu vowed to avoid the FBI. Popescu, meanwhile, predicted on July 28, 2011, “criminals will not be extradited from Romania to U.S.A. . . . [I]t will never happen.”

“As alleged, Popescu and his close associate Bosogioiu engaged in a pattern of pervasive criminal conduct, victimizing hard-working American consumers looking to purchase cars. They believed international borders would allow them to act with impunity. They were wrong. By now, Popescu and Bosogioiu have seen their co-conspirators brought here to account for their crimes. Today’s reward offered by the State Department makes clear that we are determined in our efforts to find these fugitives, no matter where they hide, and bring them to justice for the crimes they have committed against our citizens,” said United States Attorney Lynch. Ms. Lynch expressed her thanks to the U.S. State Department’s Transnational Organized Crime Rewards Program, under which the rewards are being offered.

FBI Assistant Director-in-Charge Venizelos said, “transnational organized crime is rooted in violence and corruption, undermines the integrity of our financial markets and puts the security of our nation at risk. As alleged, while hiding behind international borders, Popescu and Bosogioiu engaged in a systematic cyber fraud scheme targeting primarily American consumers through U.S.-based websites. Working in tandem, they jeopardized the personal security of online users who routinely conducted legitimate business on the internet. The sizeable reward money offered by the Department of State underscores the seriousness of these crimes and our joint commitment to putting these individuals behind bars where they can no longer target innocent victims. This case should serve as a reminder to those who camouflage their criminal acts behind the keyboard while preying upon unsuspecting consumers: we will continue to work with our domestic and international law enforcement partners to disrupt and dismantle criminal enterprises that pose a threat to our citizenry.”

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

The State Department’s Transnational Organized Crime Rewards Program is responsible for offering rewards leading to the arrest and/or conviction of Popescu and Bosogioiu. More information about Popescu and Bosogioiu is available on the Transnational Organized Crime Rewards Program website at www.state.gov/tocrewards. Anyone with information on these individuals should contact the FBI via the Major Case Contact Center at 1-800-CALLFBI (225-5324), contact the nearest U.S. Embassy or Consulate, or submit a tip online at www.tips.gov. All information will be kept strictly confidential.

The offices of the FBI Legal Attachés in Romania, the Czech Republic, the United Kingdom, Canada, and Hungary were instrumental in coordinating efforts with the United States’ international partners, and the U.S. government thanks those partners in Romania, the Czech Republic, Hungary, the United Kingdom, Canada, and Germany for their close cooperation throughout this investigation. The Criminal Division’s Computer Crimes and Intellectual Property Section, Office of International Affairs and Asset Forfeiture and Money Laundering Section, as well as the International Organized Crime Intelligence and Operations Center, Internet Crime Complaint Center, Costa Mesa, Calif., Police Department, Orange County, Calif., District Attorney’s Office, and the New York City Police Department, also provided assistance in the investigation.

The government’s case is being prosecuted by Assistant U.S. Attorneys Nadia Shihata, Melody Wells and Claire Kedeshian of the U.S. Attorney’s Office for the Eastern District of New York.

__________________________________________________________________________

1 Popescu is also known as “Nae,” “Nicolae Petrache” and “Nicolae Stoichitoiu.”

2 Bosogioiu is also known as “Dmitru Bosogioiu,” “Dimitru Bosogioiu,” “Dmitru Busogioiu” and “Ioghi.”

3 Of these eight defendants, four have been convicted, three are engaged in criminal proceedings in the United States and one remains engaged in extradition proceedings in Canada.

popescuspanish3 popescuromanian3 bosogioiuspanish3 bosogioiuromanian3 nicolae-popescu dumitru-daniel-bosogioiu

Earlier today, the leader of a Long Island chapter of the Ñetas street gang, Jason Cabral, also known as “J-Live,” was sentenced to a term of imprisonment of 37 years to be followed by five years of supervised release as a result of his guilty plea to the 2004 murders of Anthony Marcano and Fabian Mestres. The sentence was imposed in federal court in Central Islip, New York, by United States Senior District Judge Joanna Seybert.

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

“Ten years ago Jason Cabral ordered the robbery and murder of two 17-year-old young men. His minions carried out that order, binding the victims, wiping their bodies of forensic evidence, stuffing them into the trunk of car and driving them to their executions,” stated United States Attorney Lynch. “For eight years Cabral thought he had outsmarted law enforcement and gotten away with murder. From one slender lead, and with the tenacity of the FBI and NYPD, these horrific murders were solved and the killers brought to justice. We hope today’s proceedings bring some measure of relief to the victims’ families.” Ms. Lynch expressed her grateful appreciation to the Tampa Division of the FBI and United States Attorney’s Office, Middle District of Florida, for their cooperation and assistance in the investigation.

Police Commissioner William J. Bratton said, “This investigation illustrates the unwavering commitment of the law enforcement community who swore to protect and serve the people of this city from criminals like Jason Cabral. This common goal shared between the NYPD, FBI and the Department of Justice was the reason this criminal is now held accountable for these appalling murders. We hope that this sentence will bring some consolation to the victims’ families.”

As detailed during the plea proceeding and other court filings, Cabral targeted one of the victims, Anthony Marcano, because of his affiliation with a rival gang, the Latin Kings. On August 10, 2004, Cabral ordered his fellow gang members to rob and kill 17-year-old Marcano. As part of the plan, the defendant and his co-conspirators lured Marcano to a house in Brentwood. Marcano arrived at that house with 17-year-old Fabian Mestres, a fellow “Pee Wee” member of the Latin Kings street gang. Once inside the house, the victims were restrained with duct tape and their drugs, money and jewelry were stolen. The two victims were stuffed into the trunk of a car and driven to a warehouse in Queens where one of the defendant’s co-conspirators shot them with a shotgun. Mestres was shot once in the head, and Marcano was shot once in the head and once in the back of the neck. Marcano’s and Mestres’s dead bodies were found behind a warehouse in Queens the following day.

The government’s case was prosecuted by Assistant United States Attorneys Nicole Boeckmann and Christopher C. Caffarone.

The Defendant:

JASON CABRAL

Age: 37

Riverview, Florida

Earlier today, defendant Alexander Swanson, 49, was sentenced to 30 months of incarceration for engaging in a wire fraud scheme to steal the retirement savings of individuals in New York, New Jersey, and elsewhere. “Swanson also forfeited more than $3 million in ill-gotten gains and was preliminarily ordered to pay more than $2.8 million in restitution to his victims.” According to court filings and facts presented during the sentencing proceeding, Swanson misrepresented his job, background, and investment experience to his victims, and then provided the victims with false reports touting his investments’ performance. These misrepresentations fraudulently induced the victims to invest with Swanson, who stole and squandered their retirement savings for his own benefit, including gambling his victims’ savings on sporting events.

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

“Swanson gambled that a false persona, lying about his job, background, and investment expertise would be enough in order to bilk unsuspecting individuals out of their hard earned retirement savings. While the fake Swanson promised them secure investments and gambled their money away, the real Swanson today received the only payout his actions deserve: a significant jail sentence,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI for their hard work on this important investigation.”

The government’s case is being prosecuted by Assistant United States Attorney Christopher A. Ott.

The sentence was imposed by the Honorable Denis R. Hurley at the federal courthouse in Central Islip, New York.

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:

ALEXANDER SWANSON

Age: 52

Smithtown, NY

E.D.N.Y. Docket No. 13-CR-221

Earlier today, following two weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Henry Fiorentino on both charges of conspiracy to commit Hobbs Act robberies and to distribute cocaine and heroin. The charges arose out of the defendant’s scheme to rob drug dealers while impersonating New York City police detectives. When sentenced by United States District Judge John Gleeson, the defendant faces a maximum sentence of life imprisonment and a minimum of ten years’ imprisonment on the most serious charge.

The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent in Charge, Drug Enforcement Administration, New York.

“Fiorentino tarnished the image of the New York City Police Department and eroded the public’s trust in our law enforcement officers by impersonating them to facilitate his drug robberies,” stated United States Attorney Lynch. “He will now be held to pay the price for his crimes.” Ms. Lynch extended her grateful appreciation to the DEA, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York State Police and the New York City Police Department.

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, and duct tape and often brandished firearms and physically assaulted victims. The crew members then sold the stolen drugs and shared the proceeds.

Fiorentino participated in at least 19 separate robberies and attempted robberies. During these crimes, Fiorentino personally entered the residences and, on numerous occasions, he or his fellow crew members brandished firearms and abducted or restrained victims. During all of these 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.

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)

Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Brian Gill, David Gill and Samuel McIntosh for their participation in the drug-related murder of Michael Dawson on June 22, 1994. Brian Gill and David Gill were also convicted of a narcotics trafficking conspiracy between 2011 and 2013. The charges arose out of the defendants’ long-time control of a drug trafficking organization that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island. When sentenced by United States Chief District Judge Carol B. Amon, Brian Gill faces a mandatory minimum sentence of life imprisonment; David Gill and Samuel McIntosh each face a mandatory minimum sentence of 20 years’ imprisonment and a maximum sentence of life imprisonment.

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

“For years, these defendants made drug dealing and violence a daily reality for the law-abiding residents of Park Hill,” stated United States Attorney Lynch. “Today, these three men have been held accountable for the lives they have destroyed and the harm they have done to one of our communities. As a result of the extraordinary efforts of law enforcement, Park Hill is a safer place.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department, and the Richmond County District Attorney for their outstanding assistance in this case.

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

The convictions of these defendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of violent narcotics trafficking organizations operating in Brooklyn and Staten Island. This year alone, in five separate trials, this Office has obtained trial convictions for seven defendants for carrying out ten different murders.

The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata and Alicyn Cooley.

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

Earlier today, Brad Russell, a member of the Board of Harbor Funding Group, Inc. (HFGI), was sentenced in federal court in Brooklyn, New York to 10 years’ imprisonment. In March 2014, following a six-week jury trial, Russell was convicted of all counts of the indictment for 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, Russell was also sentenced to 3 years’ supervised release and ordered to pay a total of $10,707,894.59 in forfeiture and restitution to the victims of the two schemes. Co-defendant Kristofor Lange, the Vice President of Black Sand Mine, Inc. (BSMI), who was also convicted following trial, was sentenced earlier today to 5 years’ probation and ordered to pay $780,000 in forfeiture and restitution for his role in the Alaskan gold mine investment scheme.1

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).

“After the devastation wrought by Hurricane Katrina, many individuals looked to help the storm-tossed area recover. Russell and his co-conspirators looked to line their own pockets, pretending to be able to finance redevelopment projects but in reality fleecing unsuspecting developers and investors of millions. After Russell and his co-conspirators spent the money they stole from their victims, they embarked on a gold mine scheme that too was built and sold on lies and deceit. Those who seek to take advantage of tragedies to line their own pockets are on notice 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 the five-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.

Russell, together with others at HFGI, executed an advance fee scheme by targeting regions affected by Hurricane Katrina. They told land developers and their clients that HFGI had lenders and funds available to provide financing for their real estate projects, but as a condition for financing, HFGI required its clients to place ten percent of the loan amount in an attorney escrow account. Contrary to their representations, HFGI did not have lenders or funds available to finance the loans and stole the deposit money placed in escrow. Russell was the loan processor at HFGI and prepared and maintained the loan documents and escrow agreements. Through this scheme, Russell and his co-conspirators stole more than $9 million from approximately 300 individuals.

At trial, the government also proved that Russell and Lange, together with others, executed an investment scheme where they induced investors to invest in BSMI through lies and deceit. BSMI claimed that it was going to mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls and “webinars,” Russell, Lange, and their co-conspirators, convinced investors to invest in BSMI 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.

The sentences were imposed by United States District Judge Dora L. Irizarry.

The government’s case was 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 Defendants:

BRAD A. RUSSELL

Age: 43

Residence: Gig Harbor, Washington

KRISTOFOR J. LANGE

Age: 31

Residence: Gig Harbor, Washington

E.D.N.Y. Docket No. 10-CR-968

___________________________________________________________________________

1 Kristofor Lange was not charged in the advance fee scheme.

On Monday, November 10, 2014, James M. Peister pleaded guilty at the federal courthouse in Central Islip, New York, to securities fraud for operating a $17.9 million Ponzi scheme. Peister deceived investors about the stability and performance of their investments in a fund that he founded and managed to prevent them from seeking to redeem their interests. Pursuant to his plea agreement with the government, Peister agreed to pay $9,657,218.65 in restitution to the victims of his fraud and consented to the forfeiture of $17.9 million, which includes his residence in St. James, New York, and his Hummer sport utility vehicle. When sentenced, Peister faces up to 20 years in prison and a fine of up to $5,000,000.

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

“For nearly a decade, rather than make sound investment decisions as he had promised, James Peister fleeced dozens of investors and used their money to fund his own lavish lifestyle. When the financial crises struck in 2008 and his investor pool dried up, Peister’s carefully woven web of lies and deceit began to untangle and his scheme was revealed. Monday’s plea marks the end of Peister’s scheme and demonstrates this Office’s steadfast commitment to investigating and prosecuting fund managers who prey on the investing public,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the agency responsible for leading this investigation, and to the United States Securities Exchange Commission and United States Commodity Futures Trading Commission for their cooperation and assistance in the investigation.

According to court filings and facts presented at the plea hearing, between January 2000 and June 2009, Peister raised more than $17 million from at least 74 investors in connection with his investment funds: Northstar International Group Inc., North American Globex Group, and North American Globex Fund, LP. Through representations in marketing materials and other disclosures to investors and potential investors, Peister promised to invest in a variety of securities, including stocks, futures and fixed income instruments. Contrary to his purported investment strategy, Peister used new investors’ money to pay out existing investors and to finance business and personal expenses, including payments on a personal residence and a Hummer luxury sport utility vehicle. To conceal the true nature of the use of his victims’ money, Peister grossly overstated the value of the assets under his management by providing bogus financial statements to investors and to auditors. As a result, investors believed that their accounts with Peister were performing satisfactorily, and they continued to invest with him. Peister’s Ponzi scheme collapsed in the wake of the financial crisis in 2008 when he could no longer keep up with demands for redemptions from nervous investors. Since Peister’s arrest this past June, the government has seized his Hummer sport utility vehicle and restrained rental payments owed to Peister in connection with the leasing of property that was purchased with proceeds of his fraud.

Monday’s plea took place before United States District Judge Joseph F. Bianco.

The government’s case is being prosecuted by Assistant United States Attorneys Jacquelyn M. Kasulis, Jonathan P. Lax and Brian D. Morris.

This prosecution was the result of efforts 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’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:

JAMES M PEISTER

Age: 62

St. James, New York

E.D.N.Y. Docket No. 14-CR-328 (JFB)

Earlier today, Thomas Bannon, the president of Overseas Investors LLC and Overseas Investors International, Ltd. (collectively, “Overseas Investors”), was sentenced in federal court in Brooklyn, New York to 57 months’ imprisonment and ordered to pay $5,001,949 in restitution. In June 2014, Bannon had pleaded guilty to wire fraud for defrauding an individual entrepreneur of $5 million through, among other things, false representations about his access to hedge funds and wealthy investors. Co-defendant Theodore Sweeten pleaded guilty in June 2013 to wire fraud and was sentenced to 48 months in prison in January 2014. Co-defendant Robert Bardey was convicted by a federal jury on all counts, including wire fraud and perjury, on October 28, 2014, and is scheduled to be sentenced on February 11, 2015.

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

“Thomas Bannon claimed to have access to the wealthy and their millions of dollars. In reality, Bannon’s only access was to other fraudsters and phony bank documents which he used to perpetrate this audacious fraud on an unsuspecting investor. We hope that this conviction and sentence serve as a warning to others engaged in such fraudulent conduct that they will be held accountable and face imprisonment for their actions,” stated United States Attorney Lynch. Ms. Lynch expressed her appreciation to the FBI, the agency responsible for the investigation.

Bannon falsely represented to the victim that Overseas Investors collaborated with hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in its clients’ names that contained the leased funds. Based on this and other misrepresentations, Bannon and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bannon and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bannon and his co-conspirators simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.

When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into the attorney escrow account. In response, Bannon and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bannon concealed from the victim the fact that he had requested and received $600,000 of the escrowed funds prior to the issuance of the fabricated HSBC documents.

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

The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.

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:

THOMAS BANNON

Age: 82

Residence: New York, New York

E.D.N.Y. Docket No. 12-CR-471

Gracia L. Mayard, a Queens doctor, pleaded guilty today to conspiring to illegally distribute oxycodone, a highly addictive prescription pain killer. Mayard entered his plea before United States District Judge Joseph F. Bianco at the United States Courthouse located in Central Islip, New York. At sentencing on February 27, 2015, Mayard faces a maximum of 20 years’ imprisonment and a $1 million fine.

The guilty plea 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; Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD); Joseph A. D’Amico, Superintendent, New York State Police (NYSP); and Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS).

“Dr. Mayard tried to evade prescription reporting requirements in order to provide vast quantitites of these powerful painkillers in exchange for cash. Simply put, he acted as a drug dealer, not a doctor. Even after he surrendered his DEA registration he continued to write prescriptions,” stated United States Attorney Lynch. “Health care professionals are not above the law, and those who illegally dispense prescriptions pills in violation of their oaths will be prosecuted.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.

During his allocution before Judge Bianco, Mayard admitted that in 2012 and 2013, he provided prescriptions to a co-conspirator for patients he had not examined in exchange for cash, and he continued to write prescriptions after surrendering his DEA registration to prescribe controlled substances on February 7, 2013.

On March 20, 2013, as part of a federal and state prescription drug abuse initiative within the Eastern District of New York, Mayard was arrested by members of the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department and Port Washington Police Department. Mayard has been in custody since his arrest. According to court filings and records of the New York State Bureau of Narcotics Enforcement, during the first nine months of 2012, Mayard issued 2,953 oxycodone prescriptions – totaling 376,469 pills. On February 6, 2013, when members of the DEA Tactical Diversion Squad contacted Mayard, he voluntarily surrendered his DEA registration authorizing him to prescribe controlled substances. However, three weeks later, on February 28, 2013, Mayard nevertheless issued a prescription for oxycodone. On March 13, 2013, a pharmacist, in the presence of DEA agents, called Mayard about the prescription. During the call, Mayard confirmed that he had issued the prescription and provided his surrendered DEA registration number, all in an effort to persuade the pharmacist to fill the oxycodone prescription.

Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.

Mayard’s guilty plea is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.

The government’s case was prosecuted by Assistant United States Attorney Allen Bode.

The Defendant:

Name: GRACIA L. MAYARD

Age: 62

Residence: Queens, NY

A criminal complaint was unsealed today in federal court in Brooklyn charging Asif Ali and Jeffrey Evagues with stealing more than $165,000 from the Federal Aviation Administration (FAA) by modifying payroll system entries to indicate that they were working when they were not. Ali and Evagues were arrested earlier today in South Ozone Park, Queens, and Manorville, Long Island, respectively. Their initial appearance is scheduled for this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the United States 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, and Douglas Shoemaker, Special Agent in Charge, United States Department of Transportation, Office of Inspector General, New York Regional Office.

As alleged in the complaint, between September 2011 and October 2014, FAA Air Traffic Controllers Ali and Evagues modified labor distribution reports on more than 300 occasions to indicate and get paid as if they were controlling air traffic at JFK when, in fact, they were taking vacation time, sick leave, or regular days off. Security camera footage captured both defendants entering the room that contains the computer from which payroll changes occurred, just minutes prior to when modifications were implemented.

“For three years, these air traffic controllers engaged in a high flying scheme to redirect public funds into their own bank accounts. Today they were grounded,” stated United States Attorney Lynch. “This office and its law enforcement partners are committed to ensuring that government employees act with the degree of integrity that the public expects and deserves.”

“The arrest of Mr. Asif Ali and Mr. Jeffrey Evagues for allegedly stealing time from the FAA is a clear signal that Federal employees will be held responsible for maintaining the highest level of integrity,” stated Douglas Shoemaker, DOT OIG Regional Special Agent in Charge. “Working with our law enforcement peers and prosecutorial colleagues, we will continue our vigorous efforts to protect the taxpayers’ investment in our nation’s transportation system from fraud, waste, abuse, and violations of law.”

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 Special Assistant United States Attorney Jonathan P. Lax.

The Defendants:

ASIF ALI

Age: 38

South Ozone Park, New York

JEFFREY EVAGUES

Age: 54

Manorville, New York

E.D.N.Y. Docket No. 14-MC-917

Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Drug Enforcement Administration Special Agent in Charge (DEA New York), today announced the filing of a civil action by the United States against Lawrence Womack, age 48, an Islip Terrace, New York, based physician.

In the civil action, the United States alleges that between January 2011 and June 2013, the defendant wrote 241 prescriptions for Schedule II controlled substances, specifically for oxycodone, methadaone and fentanyl, in the absence of any legitimate medical need. The complaint alleges that in writing these prescriptions the defendant disregarded patients’ toxicology screens that indicated potentially lethal drug interactions. In addition, the complaint alleges that the defendant conducted periodic breast examinations in exchange for continued prescriptions and/or increased amounts of opioids, including oxycodone.

Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin like euphoria.

“Medical professionals who hand out prescriptions for narcotics in the absence of any legitimate medical need place the lives of their patients at risk and contribute to the scourge of prescription drug abuse in our communities. Doctors who violate their oaths in this manner will be held accountable to the fullest extent of the law,” stated United States Attorney Lynch. “I want to thank our partners at the Department of Health and Human Services, Office of the Inspector General, for their outstanding investigative efforts in this case.”

“By no means was Dr. Womack upholding his oath to do no harm when he continued to prescribe oxycodone pills to patients after being alerted of their failed drug tests,” stated DEA Acting Special Agent in Charge Hunt. “Ignoring the warning signs, Dr. Womack’s alleged actions supported the ultimate distribution of diverted oxycodone throughout Long Island communities enabling opioid addiction.”

In January 2012, this Office and the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department and Port Washington Police Department, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.

The United States’ case is being handled by Assistant United States Attorney Diane C. Leonardo.

Federal agents arrested a Queens man earlier today on charges of coercing and enticing three minors to engage in sexual activity and sexually abusing minors. The defendant, Fausto Bonifaz, is scheduled to be arraigned later today before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

According to a detention memorandum filed today and an indictment returned by a grand jury yesterday, the defendant sexually abused three girls, whose ages ranged from 12 to 13, at the Fort Hamilton Army Base in Brooklyn, New York. The defendant was a civilian who had been admitted to the base because he worked with a victim’s mother and had access to her house. The defendant’s actions were uncovered when, years later, one of the victims reported the abuse to a counselor. Prior to his arrest, the defendant admitted to FBI agents that he had sexually abused one of the victims and signed a written statement detailing the abuse.

“Protecting children from sexual predators is one of our highest priorities. We will not allow people such as the defendant to prey on the families of our military, and we will investigate all allegations of abuse,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation who investigated this case.

FBI Assistant Director-in-Charge Venizelos stated, “The act of sexual abuse haunts its victims long after the crime has been committed, setting them up for a life overshadowed by despair. Today’s charges underscore our commitment to protect our children -- our nation’s greatest asset -- from this type of violence carried out by predators who seek to destroy their innocence.”

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

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

The Defendant:

Name: FAUSTO BONIFAZ

Age: 39

Queens, New York

An indictment was unsealed today in federal court in the Eastern District of New York charging Jeffrey I. Stark, Esq., with forgery of the signature of a judge of the United States Bankruptcy Court for the Eastern District of New York. Stark is alleged to have forged the signature of a judge on a purported order in a case in which he had been retained to file for bankruptcy. However, Stark never commenced any action with the bankruptcy court on behalf of his client. Stark was arrested and his initial appearance was held before United States Magistrate Judge Lindsay at the federal courthouse in Central Islip.

The charge and Stark’s arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

“As alleged, Stark violated his ethical obligation to his clients and committed a serious crime which strikes at the foundation of our judicial system,” stated United States Attorney Lynch. “Attorneys are expected to uphold the law, not to violate it.” Ms. Lynch extended her grateful appreciation to the FBI.

FBI Assistant Director-in-Charge Venizelos stated, “As alleged, Stark’s conduct demonstrated a lack of respect for the legal system and those who serve it. As officers of the court, attorneys are held to a higher standard and are expected to uphold the law and its ethics. The FBI is committed to investigating corrupt lawyers who commit fraudulent practices.”

If convicted, the defendant faces a maximum sentence of 5 years of imprisonment. 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 Attorney Allen Bode.

The Defendant:

JEFFREY I. STARK

Age: 51

Levittown, New York

E.D.N.Y. Docket No. 14-CR-572 (ADS)(ARL)

BROOKLYN, NY – Genadi Yagodayev, a dual citizen of Kazakhstan and Israel, has been extradited to the United States from Cyprus to face charges related to the Rockford Group investment scheme, which defrauded investors out of millions of dollars. Yagodayev is charged in an indictment with mail and wire fraud conspiracy, securities fraud, money laundering conspiracy, and money laundering. He is scheduled to be arraigned tomorrow at 2:00 p.m. before U.S. Magistrate Judge Robert M. Levy in federal court in Brooklyn, New York. The case has been assigned to U.S. District Judge I. Leo Glasser.

The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, U.S. Postal Inspection Service (USPIS), New York Division; James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Robert J. Sica, Special Agent in Charge, United States Secret Service (USSS), New York Field Office.

According to the indictment and other court documents, 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. In documents, Yagodayev described himself as the “President” and “Manager” of 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.

“As set forth in the indictment, the defendant Yagodayev was a member of a group of fraudsters who stole the savings of hardworking individuals. Yagodayev styled himself as the president and manager of the Rockford Group, a company that existed only to scam innocent victims,” stated United States Attorney Lynch. “As the defendant’s extradition illustrates, we will pursue these crooks wherever they go.” Ms. Lynch thanked the government of Cyprus and the Department of Justice’s Office of International Affairs for their assistance in the extradition of Yagodayev.

“When the U.S. Mail is used to commit a mail fraud investment scheme, the U.S. Postal Inspection Service will commit the resources necessary to properly investigate and bring the case forward for prosecution. This is one of the many ways we ensure the public’s trust in the U.S. Mail,” said Inspector in Charge Philip R. Bartlett.

“Yagodayev’s extradition disrupts an alleged Ponzi scheme that swindled investors in the United States and Canada out of millions of dollars,” said James T. Hayes Jr., Special Agent in Charge of HSI in New York. “White collar criminals who think they can scam U.S. investors from overseas and get away with it are mistaken. HSI and its federal and international law enforcement partners will use all of its resources to locate and arrest criminals who attempt to exploit our financial systems."

“The extradition of Genadi Yagodayev is yet another example of how the Secret Service continues to successfully combat financial fraud,” said Robert J. Sica, Special Agent in Charge of the United States Secret Service New York Field Office. “Our success in this case and similar investigations is a result of our close work with our network of law enforcement partners. This case demonstrates there is no such thing as anonymity for those engaging in fraudulent schemes.”

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

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 government’s case is being prosecuted by Assistant United States Attorneys Daniel A. Spector and Justin D. Lerer.

The Defendant:

GENADI YAGODAYEV

Age: 36

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

Robert Bardey, an attorney in New York, was convicted yesterday by a federal jury in Brooklyn on all four counts of the indictment, including wire fraud and perjury, for defrauding an individual entrepreneur of $5 million through, among other things, false representations about the disbursement of funds placed in his purported escrow account and then lying in a federal grand jury. Co-defendant Theodore Sweeten pleaded guilty in June 2013 to wire fraud and was sentenced to 48 months in prison in January 2014. Co-defendant Thomas Bannon pleaded guilty in June 2014 to wire fraud and will be sentenced on November 7, 2014.

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

“Robert Bardey had a license to practice law, but used it instead as a license to steal. Instead of protecting clients’ deposits placed in his attorney escrow account, he stole from that account. Bardey abused his position of trust and defrauded a sole investor of $5 million, and when questioned about it in a federal grand jury, he lied under oath. This conviction sends a strong message to attorneys in positions of trust that we will vigorously pursue them and bring them to justice if they use their positions to perpetrate fraud,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the agency responsible for leading the government’s investigation.

Bardey, together with co-defendants Bannon and Sweeten, falsely represented to the victim, among other things, that they had access to hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in their clients’ names that contained the leased funds. Based on this and other misrepresentations, Bardey and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bardey and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bardey and his co-conspirators distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.

When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into Bardey’s attorney escrow account. In response, Bardey and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bardey concealed from the victim the fact that he had begun withdrawing the escrowed funds for his personal use on the same day that the victim had deposited the $5 million into the escrow account.

When sentenced by United States District Judge Nina Gershon, Bardey faces a sentence of up to 20 years’ imprisonment for wire fraud conspiracy and wire fraud counts and five years’ imprisonment for the perjury count.

The government’s case is being prosecuted by Assistant United States Attorneys Jack Dennehy and Marcia M. Henry.

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:

ROBERT BARDEY

Age: 82

Residence: New York, New York

E.D.N.Y. Docket No. 12-CR-471

Earlier today, an indictment was unsealed charging Gennaro “Jerry” Bruno of the Gambino organized crime family of La Cosa Nostra (the “Gambino crime family”) with racketeering and racketeering conspiracy, including predicate acts of murder, narcotics trafficking, extortion and obstruction of justice.1 Bruno was arrested today in Las Vegas, Nevada, where his initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today at the Lloyd D. George United States Courthouse, 333 Las Vegas Boulevard South, Las Vegas, Nevada.

The charges and Bruno’s arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

“As alleged, Gennaro Bruno started his criminal career at a young age as a member of a street gang where he earned his criminal credentials. He then graduated to become an associate in the Gambino crime family, where he proved himself to be both an earner for the family and capable of murder. The arrests and charges announced today are a testament to the tireless pursuit of justice by law enforcement,” stated United States Attorney Lynch. “We will not rest until violent criminals who use their mafia ties to obstruct justice and evade the law are brought to justice.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department and the Queens County District Attorney for their outstanding assistance in this case.

FBI Assistant Director-in-Charge George Venizelos stated, “As alleged, Gennaro “Jerry” Bruno was originally trained as a member of the “Young Guns.” After being released from prison, Bruno was promoted to associate of the Gambino crime family. In January of 2002, Bruno executed Martin Bosshart by shooting him in the back of the head. Bruno was as ruthless as he was calculating, and after a long run of evading justice, Bruno’s gig is up.”

According to the indictment and other court filings, when Bruno was released following a term of imprisonment from approximately 1997 to 2000, he emerged as an associate of the Gambino crime family, having graduated from the local gang of young men referred to as the “Liberty Posse” or the “Young Guns.” Over the next 14 years, before his arrest today, Bruno engaged in a myriad of crimes with and on behalf of a faction of the Gambino crime family aligned with Joseph “JoJo” Corozzo, a powerful Gambino member who had risen to become the consigliere of the family. Bruno and other Gambino crime family members and associates moved large quantities of high-potency marijuana from Canada into the New York City area. In 2001, Bruno’s criminal associate Martin Bosshart began efforts to exclude one of Bruno’s coconspirators from the marijuana importation operation. In an effort to prevent Bosshart from doing so, Bruno plotted with other Gambino crime family members and associates, including Todd LaBarca, to murder Bosshart.2 On the night of January 2, 2002, Bruno and others lured Bosshart to an isolated location in Queens, New York. There, Bruno allegedly shot Bosshart in the back of the head at point-blank range, killing him immediately. The body of Martin Bosshart, who was 30 years old at the time, was recovered at the scene.

Thereafter, Bruno evaded justice for years and conspired with other Gambino associates to obstruct an official grand jury proceeding into the Bosshart murder, while continuing to participate in the core money-making activities of the Gambino crime family, including drug trafficking and extortion. As part of the alleged pattern of racketeering, Bruno, among other things, used his position in the Gambino crime family to extract extortionate payments from the owner of a waste carting company in Queens, New York.

The government’s case is being prosecuted by Assistant United States Attorney M. Kristin Mace.

The Defendant:

GENNARO BRUNO, a/k/a “Jerry”

Age: 41

Las Vegas, Nevada

E.D.N.Y. Docket No. 14-CR-556 (WFK)

___________________________________________________________________________

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

2 On April 26, 2012, fellow Gambino associate Todd LaBarca pleaded guilty in the Southern District of New York to racketeering, with predicate acts of conspiracy to murder Martin Bosshart, narcotics trafficking, extortion and bookmaking, as well as conspiracy to commit assault in aid of racketeering.

BROOKLYN, NY – Edward J. Tarver, United States Attorney for the Southern District of Georgia, and Loretta E. Lynch, United States Attorney for the Eastern District of New York, announced that Aubrey Lee Price, 48, was sentenced today in Statesboro federal court to 30 years in federal prison for perpetrating a Ponzi scheme that resulted in millions of dollars of losses to dozens of Price’s investors and led to the collapse of a federally insured bank. Today’s sentencing took place before the Honorable B. Avant Edenfield, United States District Judge for the Southern District of Georgia.

“Through a web of lies and deceit, Aubrey Lee Price conned his elderly investors and a federally insured bank of more than $70 million, and then attempted to further his con and avoid accountability by faking his own death. However, his life on the lam ended with a routine traffic stop. Today’s sentence sends a strong message to those who seek to defraud the investing public and our financial institutions that we will pursue them and bring them to justice,” stated United States Attorney Lynch.

“The sentence imposed today reflects the magnitude of Aubrey Lee Price’s fraud,” said United States Attorney Tarver. “Price engaged in a staggering betrayal of trust, leaving his elderly investors practically penniless, and at the same time, contributing to the collapse of a federally insured bank. For his crimes, Price richly deserves the heavy sentence handed down today by the Court.”

George Venizelos, Assistant Director in Charge, FBI New York Field Office, along with J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “While today’s sentencing of former banker Aubrey Lee Price concludes a lengthy investigation as well as an extensive and resource-intensive manhunt, it does not restore the financial harm done to his many victims. The FBI would like to express its gratitude to those many and varied law enforcement agencies whose efforts in the investigation and apprehension of Mr. Price made today’s sentencing possible. We are hopeful that this announcement will provide some solace to his victims.”

Jason T. Moran, Special Agent in Charge, FDIC Office of Inspector General, stated, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the United States Attorney’s Office and our law enforcement colleagues in investigating the fraud that led to the conviction of Aubrey Lee Price. It is particularly troubling when bank insiders violate the public trust and engage in activities that impact the safety and soundness of our nation’s banks.”

“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the Labor Department’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said Isabel Colon, Regional Director of the United States Department of Labor Employee Benefit Security Administration’s Atlanta Regional Office.

According court filings and evidence presented at the guilty plea and sentencing hearings, Price embezzled over $21 million in capital from MB&T, and lost much of it by investing in risky equity securities and options. To cover up his fraud, Price provided MB&T officials with bogus account statements and other false documents which falsely indicated the bank’s capital was safely held in an account at a financial services firm, when in truth, most of the money was gone. A further investigation of Price revealed that between June 2009 and June 2012, he also defrauded approximately 115 individual investors who had invested $51 million in two investment funds he managed. Price lost almost all of that money through speculative trading, and to cover up his losses, Price posted fake account statements on a secure web site that fraudulently reflected fictitious assets and fabricated investment returns for each investor.

In mid-June 2012, Price sent acquaintances “suicide letters” in which he admitted he had defrauded MB&T Bank and Price’s individual investors, and that he planned to kill himself by throwing himself off a high-speed ferry boat after it left Key West, Florida. As a result of the suicide claim, the United States Coast Guard searched to no avail for Price’s body. Shortly after sending the letters, Price disappeared. After more than a year of searching for Price, he was arrested on December 31, 2013, after he presented a false identification during a routine traffic stop in Brunswick, Georgia.

Price has been in custody since his arrest on December 31, 2013. In addition to being sentenced to 30 years’ imprisonment, Price was also sentenced to serve a term of 5 years of supervised release. Tarver noted that there is no parole in the federal system. As part of his sentence, Price will also be ordered to pay restitution to the victims of his crimes in an amount to be determined at a restitution hearing to be held by February 1, 2015. In addition, Price was ordered to forfeit a total of $51 million, representing the proceeds of his crimes.

U. S. Attorneys Tarver and Lynch credited the FBI in Georgia, under the direction of Special Agent in Charge Johnson, and in New York, under the direction of Assistant Director in Charge Venizelos, with the investigation leading to today’s sentencing. They also thanked the United States Attorney’s Office for the Southern District of Florida; the United States Attorney’s Office for the Northern District of Georgia; the Securities and Exchange Commission (SEC), Atlanta Regional Office; the Federal Deposit Insurance Corporation (FDIC); the Federal Reserve Board, Office of Inspector General; the United States Coast Guard; the United States Department of Labor; the Lowndes County Georgia Sheriff’s Department; the Glynn County Georgia Sheriff’s Department; the Toombs County Georgia Sheriff’s Department; and the Marion County Florida Sheriff’s Department for their cooperation and assistance in the investigation and prosecution of Price.

The government was represented by Assistant United States Attorney Brian T. Rafferty of the U. S. Attorney’s Office, Southern District of Georgia, and Assistant United States Attorneys Shannon C. Jones and Brian Morris of the U. S. Attorney’s Office, Eastern District of New York.

This prosecution was the result of efforts by President Barack 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. For more information on the task force, visit http://www.StopFraud.gov.

The Defendant:

AUBREY LEE PRICE

Age: 48

Valdosta, Georgia

S.D.G.A. Docket No. 612-CR-10

E.D.N.Y. Docket No. 13-CR-058

 

       

Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Harvey Christian, Anthony Christian and Jason Quinn, on charges of racketeering – including murder conspiracies and, against Anthony Christian, the murder of Jerome Estella as racketeering acts – as well as firearms possession and multiple counts based on their trafficking in crack cocaine. The charges arose out of the defendants’ long-time dominance of a drug crew that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island. When sentenced by United States District Judge Eric N. Vitaliano, Harvey Christian faces a mandatory minimum sentence of 40 years’ imprisonment and a maximum sentence of life imprisonment; Anthony Christian faces a mandatory sentence of life imprisonment; and Quinn faces a mandatory minimum sentence of 65 years’ imprisonment and a maximum sentence of life imprisonment.

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

“For all of their adult lives, the Christian brothers and their associates terrorized the residents of Park Hill, forcing them to live in fear of violence,” stated United States Attorney Lynch. “Today, their ability to earn money through crime comes to an end, and so does their rule of the streets. This verdict sends the message that that violence and drug-dealing have no place in our communities.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department and the Richmond County District Attorney for their outstanding assistance in this case.

For over two decades, Harvey Christian, also known as “Black,” and his brother, Anthony Christian, also known as “Nitty,” led a violent narcotics distribution ring. Jason Quinn was one of their most trusted associates. In the mid-1990s, the Christian brothers and their associates, including Quinn, sought to take control of more drug territory in Park Hill. To achieve this, the defendants engaged in massive gun battles for months. During one of the battles, in May 1995, law enforcement recovered 77 shell casings inside a residential building, outside on the street, and on the roof. In 1999, Anthony Christian ordered another member of the enterprise to murder a rival drug dealer named Corey Brooker. In the course of looking for Brooker, the enterprise member had a dispute with Brooker’s associate Jerome Estella. Anthony Christian then authorized the other enterprise member to murder Estella, and provided him with the 9 millimeter handgun he used to then murder Estella.

In the year before their arrests in 2011, multiple search warrants and arrests related to members of the organization and their associates were executed in and around Park Hill and elsewhere in New York. These searches and arrests resulted in the seizure of firearms and ammunition, including a Mac-11 pistol, as well as large quantities of crack and powder cocaine. During a search of the Christian brothers' apartment in the Park Hill housing complex in February 2010, the NYPD recovered multiple bullet-proof vests, crack-cocaine and marijuana.

The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz, Richard Tucker and Kevin Trowel.

The Defendants:

HARVEY CHRISTIAN

Age: 42 years

Staten Island, New York

ANTHONY CHRISTIAN

Age: 41 years

Staten Island, New York

JASON QUINN

Age: 40 years

Staten Island, New York

E.D.N.Y. Docket No. 11-CR-425

Earlier today, Thomas J. Carey, Jr., a 36-year-old Dix Hills resident, was sentenced to a term of imprisonment of twenty-five years and lifetime supervised release following his conviction for sexual exploitation of a child. The proceeding was held before United States District Judge Denis R. Hurley at the United States Courthouse in Central Islip, New York.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.

Carey was arrested in June 2009, after HSI agents obtained a search warrant for his residence based upon a lead from the Swiss National Police and Interpol. Computer equipment and digital cameras belonging to Carey which were seized pursuant to that warrant contained 161 images of Carey molesting the minor victim between 2007 and 2009, when the victim was 8 to 10 years old.

“This sentence is fitting for a predator who destroyed the innocence of an eight-year-old child,” stated United States Attorney Lynch. “This sentence stands as a strong warning to those who would abuse children that we will prosecute them to the full extent of the law.” Ms. Lynch expressed her grateful appreciation to Homeland Security Investigations for its assistance in this case.

The government’s case was prosecuted by Assistant United States Attorney Allen Bode.

The Defendant:

THOMAS J. CAREY, JR.

Dix Hills, New York

Age: 36

 

       

Luis Anibal Salazar Garcia, the primary money broker for a Colombian-based international money laundering organization, was sentenced today to 92 months in prison at the federal courthouse in Brooklyn. Ten co-defendants were sentenced last month to sentences ranging from 28 to 64 months’ imprisonment. Two other co-defendants remain to be sentenced. All 13 defendants, who were extradited from Colombia, pleaded guilty to conspiring to launder narcotics proceeds. Together, the defendants were responsible for laundering tens of millions of dollars of narcotics proceeds from the United States to Colombia between 2006 and 2013 on behalf of Colombian drug cartels.

The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York. The sentence was imposed by Chief United States District Court Judge Carol B. Amon.

“Salazar Garcia and his cohorts in crime operated a sophisticated network of shipments and transfers that went to the heart of the deadly narcotics trade – the money. The defendants’ money laundering activities allowed narcotics traffickers in Colombia to reap enormous profits from sending drugs to the United States,” stated United States Attorney Lynch. “These sentences will send a message to narcotics traffickers that we are committed to shutting down their ability to profit from selling their illegal drugs in the United States.”

“The incarceration of this defendant and his cohorts disrupts a money laundering organization that contributed to the flow of millions of dollars in illicit drug proceeds,” said HSI New York Special Agent in Charge Hayes. “The prosecution of these money launderers is a testament to the expertise of the members of the El Dorado Task Force and our international law enforcement partners, whose investigative prowess enables them to find international criminals and bring them to justice.”

Salazar Garcia and his twelve co-defendants were money brokers operating out of the El Diamante, Gran Centro Commercial, San Andresito, and Atlantis retail shopping malls in Cali, Colombia, and assisted drug trafficking organizations in Colombia by laundering the proceeds of sales of narcotics in the United States. The defendants also oversaw a network of confederates who operated in the United States taking the proceeds from narcotics sales here and passing the money to others, who ultimately repatriated millions of dollars in drug proceeds to suppliers in Colombia. The drug money was transported in amounts ranging from thousands to hundreds of thousands of dollars, often bundled and heat sealed, and concealed in vehicles, gasoline containers, duffel bags, and shoeboxes. Twenty-four of the U.S.-based confederates have also pleaded guilty to their participation in the money laundering conspiracy.

As part of this investigation, law enforcement officers have seized more than $6.5 million in United States currency as well as 52.5 kilograms of heroin, 32 kilograms of cocaine, 63 pounds of marijuana, eight vehicles, and three firearms.

The investigation was led by agents from the HSI New York Office’s El Dorado Task Force, comprising over 260 members from more than 55 law enforcement agencies in New York and New Jersey – including special agents, state and local police investigators, intelligence analysts, and federal prosecutors – with the assistance of the task force’s High Intensity Financial Crimes Area (HIFCA)/Intelligence Unit.

Ms. Lynch extended her grateful appreciation to HSI New York, the Colombian National Police, particularly the Investigative Directorate, and members of the HSI Transnational Criminal Investigations Unit, for their hard work and dedication throughout the investigation, and thanked the Department of Justice’s Office of International Affairs for its assistance in this investigation and prosecution.

The government’s case was prosecuted by Assistant United States Attorneys Douglas M. Pravda and Tiana A. Demas.

The Defendants:

FABER ENRIQUE BERMUDEZ ARCINIEGAS

AGE: 35

HARBI CAICEDO

AGE: 51

ALEXANDER HENAO CHAMORRO

AGE: 37

EDWIN ARENAS CHAMORRO

AGE: 39

LUIS ANIBAL SALAZAR GARCIA

AGE: 51

JOSE LEONIDAS SALAZAR GARCIA

AGE: 55

JUAN CARLOS MEJIA GONZALEZ

AGE: 50

JAVIER ORLANDO ALVAREZ JARAMILLO

AGE: 51

JOSE LISANDRO ABADIA JIMENEZ

AGE: 60

JUAN FERNANDO MOLINA JIMENEZ

AGE: 56

MANUEL ANTONIO CAMPO JIMENEZ

AGE: 53

OSCAR GARCIA LONDONO

AGE: 39

NUBIA ABADIA SARRIA

AGE: 35

E.D.N.Y. Docket No. 12 CR 623

Earlier today at the federal courthouse in Central Islip, New York, Juan Garcia, also known as “Cruzito,” a member of La Mara Salvatrucha, also known as the MS-13 street gang, pled guilty to murder in aid of racketeering. During the guilty plea allocution, Garcia admitted that he and another MS-13 member shot and killed 19-year-old Vanessa Argueta, and a third MS-13 member executed her two-year-old son, Diego Torres, in Central Islip, New York, on February 5, 2010. As detailed in prior court proceedings and filings, after committing the murders, Garcia and his co-conspirators, Adalberto Ariel Guzman (“Gringo”) and Rene Mendez Mejia (“Zorro”), fled to El Salvador. Garcia was a fugitive for over four years until March 2014, when, after being placed on the FBI’s Ten Most Wanted Fugitives List, he surrendered to law enforcement authorities in Nicaragua, waived extradition, and was returned to the United States for prosecution.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas C. Krumpter, Acting Commissioner of the Nassau County Police Department.

“After cold-bloodedly executing a young mother and her two-year-old child, Garcia and his fellow MS-13 members fled to El Salvador. For over four years, Garcia was able to evade justice, hiding out in different parts of Central America. However, thanks to the tenacious efforts of the FBI’s Long Island Gang Task Force and FBI components around the world, Garcia was captured, returned to the United States, and held accountable for his reprehensible acts. He will now be held accountable for his allegiance to the killing machine known as MS-13,” stated United States Attorney Lynch. Ms. Lynch expressed her sincere gratitude to the members of the FBI’s Long Island Gang Task Force, the FBI’s Violent Criminal Threat Section, and the FBI’s Legal Attaches for El Salvador and Panama, for their unwavering commitment to bring Garcia and his co-conspirators to justice for the Argueta and Torres murders.

FBI Assistant Director-in-Charge Venizelos stated, “The MS-13 street gang is infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional immorality. Stopping at nothing to seek retribution, Garcia and other gang members lured Argueta and her two-year-old son into a secluded wooded area where retribution took the form of murder. After more than four years on the run, Garcia finally faces the justice he couldn’t escape. Today’s guilty plea should remind these exceedingly violent criminals that we remain committed to working with our local, state, national, and international partners to disrupt and dismantle this violent gang.”

As established at prior court proceedings, Garcia and other MS-13 members, including MS-13 leader, Heriberto Martinez, also known as “Boxer,” Guzman, and Mejia plotted to kill Argueta because they believed she had disrespected the MS-13 by sending rival gang members to attack Garcia. On February 4, 2010, when Garcia, Guzman, and Mejia planned to kill Argueta, she was with her son, and the MS-13 members decided to murder him as well. Garcia, Guzman, and Mejia lured Argueta and Torres into a secluded wooded area in Central Islip, where they executed the mother and child, shooting Argueta in the head and chest, and Torres twice in the head. Specifically, the evidence establishes that Garcia and Mejia shot and killed Argueta, while Guzman fired the two fatal shots to Torres’s head. After they murdered Argueta and Torres, Garcia, Guzman, and Mejia fled to El Salvador.

Garcia’s three co-conspirators, Martinez, Guzman, and Mejia were also arrested and indicted in connection with the Argueta and Torres murders. Martinez was convicted in March 2013, following a six-week trial, and later sentenced to life in prison, plus 60 years. Guzman was convicted in September 2013, following a three-week trial, and later sentenced to life in prison, plus 35 years. Mejia pled guilty to the murders and is pending sentence.

The convictions of Garcia and his codefendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous branches, or “cliques,” the MS-13 is the largest street gang on 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. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.

When Garcia is sentenced by United States District Judge Joseph F. Bianco, which is currently scheduled for February 6, 2015, he faces a sentence of up to life in prison.

The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney.

The Defendant:

JUAN GARCIA, also known as “Cruzito”

Baldwin and Inwood, New York

Age: 21

NEWARK, N.J. - A former delegate of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 20 months in prison for conspiring to extort longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Robert Ruiz, 55, of Watchung, New Jersey – the delegate of the union from approximately 2007 through 2010 – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.

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

Ruiz and two other former ILA officers – Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from 2006 through 2007; and Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011 – admitted that they conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. 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. Leonardis and Ruiz were suspended from their positions following their arrests in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.

Aulisi was sentenced to 18 months in prison on Oct. 8, 2014. Leonardis still awaits sentencing.

Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. 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.

Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.

In addition to the prison term, Judge Cecchi sentenced Ruiz to serve two years of supervised release.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, 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 of the New York Regional Office, with the investigation.

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

The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.

14-CR-372

Defense counsel: Marc Agnifilo Esq., New York

Michael Belfiore, an Merrick, New York, doctor, was charged this morning pursuant to a criminal complaint1 with illegally distributing oxycodone, a highly addictive prescription pain medication. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse located in Central Islip, New York.

The charge was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York, and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).

This morning, as part of a federal and state Prescription Drug Initiative in the Eastern District of New York, Belfiore surrendered to members of a DEA Tactical Diversion Squad, comprising DEA agents and officers of the Nassau County Police Department, Rockville Centre Police Department, and Port Washington Police Department, on charges of illegally distributing oxycodone between March 15, 2013 and August 12, 2013. According to the complaint, over the course of six months, Belfiore issued six prescriptions for oxycodone to an undercover Nassau County Police Officer without a legitimate medical purpose in exchange for thousands of dollars.

United State Attorney Lynch stated, “Dr. Belfiore used his prescription-writing privileges not to help patients as was his duty but to pad his bank account. Doctors who issue prescriptions without a legitimate medical need are violating the law and will be held accountable.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.

DEA Acting Special Agent in Charge stated, “There is no excuse for doctors to write unnecessary prescriptions in exchange for cash, nor has there ever been. Dr. Belfiore has been added to the list of those who perpetuate the spread of opioid addiction by allegedly facilitating the distribution of over half a million of oxycodone throughout the streets of Long Island. I commend the men and women of the Long Island Tactical Diversion Squad and the US Attorney’s Office Eastern District of New York for their tenacious work on this investigation.”

Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.

If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.

This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.

The government’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.

The Defendant:

Name: MICHAEL BELFIORE

Age: 51

Residence: Westbury, New York

___________________________________________________________________________

1 The charge announced today is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.

Belfiore Complaint
 

NEWARK, N.J. B The former president of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 18 months in prison for conspiring to extort longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Vincent Aulisi, 82, of West Orange, New Jersey – the president of ILA Local 1235 from 2006 through 2007 – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.

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

Aulisi and two other former ILA officers – Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011; and Robert Ruiz, 55, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 – admitted that they conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. 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. Leonardis and Ruiz were suspended from their positions following their arrests in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.

Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. 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.

Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.

In addition to the prison term, Judge Cecchi sentenced Aulisi to serve one year of supervised release and fined him $10,000.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, 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 of the New York Regional Office, with the investigation.

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

The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.

14-367

Defense counsel: Joseph Fusella Esq., Bloomfield, New Jersey