Eastern District of New York

A superseding indictment against New York State Assemblyman William F. Boyland, Jr. was filed today in the United States District Court for the Eastern District of New York, which added new charges of mail fraud in connection with a scheme to defraud New York State by submitting fraudulent vouchers for travel expense and per diem payments. The Superseding Indictment also includes the charges from the underlying indictment against Boyland, charging him with bribery and attempted Hobbs Act extortion for soliciting more than $250,000 in bribes and accepting thousands of dollars of bribe money in exchange for performing official acts for the bribe payers.1 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 (FBI), New York Field Office.

As charged in the Superseding Indictment, from January 2007 to December 2011, Boyland fraudulently submitted New York State Assembly Member Travel Vouchers (Vouchers) in which he falsely claimed to be in Albany on legislative business when he in fact was not in Albany. New York State records show that in reliance on Boyland’s fraudulent Vouchers, New York State paid Boyland tens of thousands of dollars in mileage expense and per diem payments.

For example, on some of the days on which Boyland falsely claimed that he was in Albany and thus entitled to mileage expense and per diem payments, Boyland was actually not in Albany and was instead in New York City meeting with individuals he believed to be out-of-state businessmen and real estate developers, but who actually were the undercover FBI agents from whom he solicited bribes. In addition, E-ZPass records associated with Boyland’s vehicle and New York State Assembly records reflect that Boyland was not in Albany on the days when he claimed on Vouchers to be there on legislative business. By falsely overstating the number of days in which he was in Albany for legislative business, Boyland fraudulently secured tens of thousands of dollars in taxpayer funds to which he was not entitled.

If convicted, Boyland faces a maximum sentence on each fraud charge of 20 years in prison, a $250,000 fine and restitution.

United States Attorney Lynch and Assistant Director-in-Charge Venizelos expressed their thanks to the New York State Comptroller’s Office for its assistance in this phase of the investigation.

The government's case is being prosecuted by Assistant United States Attorneys Robert Capers and Lan Nguyen.

The Defendant:

WILLIAM F. BOYLAND, JR.
Age: 42

_____________________________

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

Two indictments were unsealed today in federal court in Brooklyn, New York, charging 19 members of an international money laundering scheme with conspiring to launder tens of millions of dollars in narcotics proceeds.1 According to the indictments and a detention letter filed today by the government, members of the conspiracy laundered tens of millions of dollars in narcotics proceeds from the United States to Colombia between 2006 and 2013. As part of the government’s investigation, law enforcement officers have thus far 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.

Twelve of the defendants were arrested earlier today in Colombia by members of the Colombian National Police. Four other defendants were arrested today in Queens, Long Island, New Jersey and Connecticut. Three additional defendants are already in custody for previously charged crimes and will be transferred to the Eastern District of New York to be arraigned in the coming days. In addition, nine other defendants have previously been arrested in connection with this investigation and charged in separate indictments; six of those defendants have pleaded guilty to the charges. Those defendants arrested today in the New York City metropolitan area will be arraigned later this afternoon before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

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

According to the indictment and other court filings submitted by the government, the four-year investigation revealed that, between January 2006 and March 2013, individuals operating out of retail shopping malls in Cali, Colombia (“money brokers”) assisted drug trafficking organizations in Colombia by laundering the proceeds of sales of narcotics in the United States. The twelve individuals arrested in Colombia today were money brokers who operated out of the El Diamante, Gran Centro Commercial, San Andresito and Atlantis retail shopping malls in Cali. Photographs of the interior areas of the El Diamante and Gran Centro Commercial shopping malls, where some of these money brokers operated, are attached to this press release.

These twelve money brokers oversaw a large network of confederates to assist in transferring millions of dollars in narcotics proceeds from narcotics distributors in the United States to narcotics suppliers in Colombia. The money brokers employed many individuals known as “money movers,” i.e., people responsible for collecting narcotics proceeds and disposing of those proceeds as directed by either the drug trafficking organization or the money brokers. The money movers served as go-betweens, taking the proceeds from narcotics distributors in the United States and eventually passing the money to other members of the organization, who repatriated the proceeds to Colombia.

The four individuals arrested today in the United States (and the three others already in custody on other charges) were money movers. They received phone numbers and code words from the money brokers to use to contact and identify the recipients to whom they were to deliver the narcotics proceeds. The money movers concealed and transported amounts ranging from thousands to hundreds of thousands of dollars in narcotics proceeds at a time, hidden within compartments in vehicles, gasoline containers, duffel bags and shoeboxes. These cash deliveries took place in locations such as parking lots of retail stores and fast food restaurants in Queens, New York, and elsewhere. At these meeting places, the money movers delivered the United States currency, which often was bundled and heat sealed, to other members of the organization.

“Money laundering is the lifeblood of the narcotics trade, both here in the US and in Colombia,” stated United States Attorney Lynch. “The individuals arrested and charged today are alleged to have worked to funnel tens of millions of dollars in narcotics proceeds out of the US and back to narcotics traffickers in Colombia. This international investigation illustrates our resolve to fight these schemes both here and abroad. As several of today’s defendants have learned, distance does not insulate them from the reach of our investigation and our resolve. With these charges, we focus not just on those who moved money in the US but also on those who furthered this scheme in Colombia. We and our partners in law enforcement are committed to investigating and prosecuting international drug traffickers and seizing the proceeds of their crimes. We remain relentless in this pursuit.” Ms. Lynch expressed her grateful appreciation to 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. Ms. Lynch also thanked the HSI attaché in Bogota and the HSI Hartford Office for their assistance. The investigation was led by agents with HSI New York serving on the El Dorado Task Force, which investigates narcotics trafficking and narcotics money laundering.

ICE/HSI Special Agent-in-Charge Hayes stated, “As alleged, the brokers and members of this money laundering organization orchestrated the transfer of millions of dollars in illicit narcotics proceeds to circumvent law enforcement in the United States and reap their illicit gains abroad. HSI is dedicated to combating criminal organizations by severing their financial life line.”

If convicted, the defendants face a maximum penalty of 20 years’ imprisonment.

The government’s case is being prosecuted by Assistant United States Attorneys Douglas Pravda, Brendan King and Tiana Demas.

The Defendants: FABER ENRIQUE BERMUDEZ ARCINIEGAS
Age: 33

HARBI CAICEDO
Age: 49

ALEXANDER HENAO CHAMORRO
Age: 35

EDWIN ARENAS CHAMORRO
Age: 38

LUIS ANIBAL SALAZAR GARCIA
Age: 49

JOSE LEONIDAS SALAZAR GARCIA
Age: 54

JUAN CARLOS MEJIA GONZALEZ
Age: 48

JAVIER ORLANDO ALVAREZ JARAMILLO
Age: 50

JOSE LISANDRO ABADIA JIMENEZ
Age: 59

JUAN FERNANDO MOLINA JIMENEZ
Age: 54

MANUEL ANTONIO CAMPO JIMENEZ
Age: 51

NUBIA ABADIA SARRIA
Age: 33

RAFAEL ANTONIO ALVAREZ
Age: 33

LEONARDO CALDERON-CASTRO
Age: 36

JEFFERSON HERNANDEZ
Age: 24

JUAN FRANCISCO MONEGRO PERALTA
Age: 29

CEASAR STAPLETON
Age: 37

MAGDIEL ELIAS VALENCIA
Age: 26

RICHARD VIQUEZ VARGAS
Age: 32

_____________________________

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

BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, pleaded guilty before U.S. District Judge John Keenan, to a felony charge of conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor. Conspiring to murder a federal employee on account of the performance of official duties carries a maximum penalty of life in prison, a fine of $250,000, or both. Additionally, Mirkovic agreed to the forfeiture of over $200,000, a car and four firearms.

According to case filings, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that the coconspirator stated he wanted to torture and kill the judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.

Later that same day, Mirkovic met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.

At today’s guilty plea proceeding, Mirkovic admitted under oath that he agreed to kill the federal judge and the federal prosecutor in retaliation for the performance of their duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in September and October of 2012 and made payments for the murders.

The plea was the latest step in an investigation on the part of Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.

Sentencing is scheduled for June 19, 2013, at 3 p.m. EST, in U.S. District Court, Brooklyn, in front of Judge Keenan.

Hector Aleman Lemos, the former leader of the Flushing, Queens, chapter of the violent international gang La Mara Salvatrucha, also known as “MS-13,” pleaded guilty today to racketeering and murder conspiracy charges. Lemos entered his plea before United States District Judge Nicholas G. Garaufis at the federal courthouse in Brooklyn. As part of his plea, Lemos agreed to a sentence of 30 years’ imprisonment.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York Field Office; and Charles Gardner, Commissioner, City of Yonkers Police Department.

According to the indictment and other court filings, Lemos, known in the gang as “Diablito,” was alleged to have been the leader of a chapter of the gang that committed a series of violent crimes, including murder, murder conspiracy and attempted murder, in Flushing, Queens and elsewhere. Among other crimes, Lemos was charged with murdering 25-year-old John Halley in Yonkers, New York. Lemos believed, incorrectly, that Halley was a member of a rival gang when he shot him on the street. As part of his plea, Lemos admitted that he was a member of MS-13 and that he participated in the murder of Halley, as well as the shooting of a 13-year-old boy who had been standing on the stoop of a house in Flushing, New York that Lemos believed to be a rival gang location.

This conviction is the latest of the more than 120 convictions of MS-13 soldiers and leaders in the Eastern District of New York over the past decade. MS-13 is a violent, transnational gang, based in El Salvador, which has engaged in narcotics trafficking, robbery, extortion, murder and other crimes in cities throughout the United States and Central America. The gang has had a strong presence in immigrant communities in Queens and Long Island.

“Lemos was the leader of a gang that turned our streets into a shooting gallery, and killed innocent bystanders in its bid to dominate the streets,” said United States Attorney Lynch. Lemos’s conviction underscores this Office’s ongoing commitment to eradicating MS-13’s influence in our communities and seeking justice for the gang’s victims and their families. We will continue to vigorously prosecute members of the gang and work to dismantle its operations in this District.” Ms. Lynch expressed her grateful appreciation to the City of Yonkers Police Department for its invaluable assistance in this investigation.

“The defendant in this case indiscriminately brought or threatened violence against rival gang members and innocent civilians alike. HSI is proud to continue to partner with the United States Attorney’s Office to target violent transnational gang members who threaten the safety of New York communities,” stated HSI Special Agent-in-Charge Hayes.

The government’s case is being prosecuted by Assistant United States Attorneys Gina M. Parlovecchio and Darren A. LaVerne.

The Defendant:

HECTOR ALEMAN LEMOS, also known as “Diablito”
Age: 32

Three indictments were unsealed today in Brooklyn federal court charging seven defendants from the Bushwick section of Brooklyn, New York, with narcotics trafficking.1 Two of the indictments charge groups of defendants with trafficking cocaine base, and the third indictment charges a group with heroin trafficking. The defendants are scheduled to be arraigned today before United States Magistrate Judge Marilyn D. Go, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges and arrests 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, and Raymond W. Kelly, Commissioner, New York City Police Department.

In response to a spate of violence that included the near-fatal shooting of a police officer in January 2012, the NYPD and FBI conducted a one-year joint investigation resulting in today’s charges against members of three separate narcotics trafficking organizations in the Bushwick Houses public housing development in Brooklyn. During the investigation, the NYPD conducted dozens of audio and video recorded purchases of cocaine base, or “crack,” and heroin from the defendants using undercover police officers. The crack cocaine transactions occurred in the hallways and stairwells of buildings in the development as well as just outside the buildings, often in public view. The heroin traffickers sold distribution-level quantities of heroin, frequently pre-packaged and stamped for retail sale. Several of the defendants have serious criminal records that include felony narcotics and firearms convictions.

“All New Yorkers deserve a safe place to live and raise their families. Instead, these defendants allegedly turned the Bushwick Houses into a drug market, rather than a place of refuge for the residents. This case again demonstrates this Office’s ongoing commitment to investigating and prosecuting organized drug trafficking activity in our community. Those who introduce drugs and other dangers into our neighborhoods will face the full force of the law,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI agents and NYPD detectives who investigated the case. She added that the government’s investigation is ongoing.

The cases have been assigned to United States District Judges Matsumoto, Mauskopf and Weinstein. If convicted of the most serious offenses in the indictment, the defendants charged with crack offenses face a maximum sentence of 20 years’ imprisonment. The heroin defendants face a minimum sentence of five years’ imprisonment and a maximum sentence of 40 years’ imprisonment.

The government’s case is being prosecuted by Assistant United States Attorney Matthew Amatruda.

The Defendants:

KEITH BEAUFORT
Alias: Rosco
Age: 30

EMPEROR BUILDER
Age:43

KAREEM CAMPBELL
Alias: K
Age: 33

TERRANCE JONES
Alias: Chef
Age: 40

ROBERTO OGANDO
Age: 30

RICKY PABON
Alias: Riz
Age: 36

HECTOR SORIA
Alias: Hollywood
Age: 37

_____________________________

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

A criminal indictment was unsealed today in federal court in Brooklyn charging Damian Perna, a financial advisor from Oceanside, Long Island, with conspiracy to commit insider trading. Perna is charged with conspiring with others to trade in securities of publicly-traded corporations registered under the Securities and Exchange Act of 1934 during the period from June 2011 through October 2012. 1

The defendant was arrested this morning and was arraigned earlier this afternoon before United States Magistrate Judge Ramon E. Reyes, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. As the government explained during the arraignment, Perna obtained draft earnings reports for publicly-traded companies before their public release through a contact at an investor relations firm. These companies included Consolidated Graphics, Alamo Group and Miller Industries, which are listed on the New York Stock Exchange, and Innophos Holdings, Inc., which is listed on the NASDAQ. In one meeting, Perna sold an advance copy of an earnings report to an undercover agent of the Federal Bureau of Investigation and was paid $7,000 in cash.

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.

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

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, please visit www.StopFraud.gov.

The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa and Ilene Jaroslaw.

The Defendant:

DAMIAN PERNA
Age: 30

_____________________________

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

Volodomyr Ponomarenko, a citizen of Ukraine, pled guilty today at the federal courthouse in Brooklyn, New York, before the Honorable Edward R. Korman to conspiring to violate the Arms Export Control Act by attempting to export military-grade night vision equipment from the United States to Ukraine. Ponomarenko was arrested while attempting to enter the United States on March 23, 2011.

The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa Monaco, Assistant Attorney General for National Security; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and Kenneth Siegler, Resident Agent-in-Charge, Defense Criminal Investigative Service (DCIS).

As alleged in the indictment and the underlying criminal complaint, the defendant purchased military-grade night vision equipment and other restricted weapons components from dealers in the United States and then attempted to export that equipment to Ukraine without the required license. As part of the export scheme, the defendant used straw purchasers in the United States to purchase the equipment. In exchange for a fee, the straw purchasers shipped the items to various freight forwarding companies for export to the defendant in Ukraine. Pursuant to the investigation, however, the night vision scopes and other weapons components were intercepted by law enforcement at John F. Kennedy International Airport.

The export of military-grade night vision equipment requires a license from the United States Department of State, and those who willfully seek to circumvent that requirement face significant criminal penalties. When sentenced, Ponomarenko faces up to 5 years in prison.

“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” stated United States Attorney Lynch. “As today’s conviction shows, the United States will vigorously prosecute violations of our laws that help maintain the superiority of our armed forces on land, sea, and air.” Ms. Lynch expressed her grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York, and added that the government’s investigation is ongoing.

“Today’s guilty plea ends a conspiracy to willfully violate the customs laws of the United States and further safeguards America’s sensitive military technology,” said James T. Hayes Jr., Special Agent-in-Charge of HSI New York. “HSI agents and our partners with DCIS and the United States Attorney’s Office expertly foiled a potentially dangerous smuggling scheme.”

“Today’s guilty plea demonstrates the ongoing commitment of the Defense Criminal Investigative Service, in cooperation with our law enforcement partners and the U.S. Attorney’s Office, to aggressively pursue those intent on acquiring and illegally exporting U.S. military technology. Any attempt to circumvent the export laws will be fully investigated and prosecuted to ensure that America’s Warfighters maintain their tactical and strategic advantage around the world,” stated DCIS Resident Agent-in-Charge Siegler.

The government’s case is being prosecuted by Assistant United States Attorneys David Sarratt and Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.

The Defendant:

VOLODOMYR PONOMARENKO
Age: 43

A criminal complaint was unsealed this morning in federal court in Brooklyn charging Muzaffar Nadeem, Afzaal Chaudry, and Zainul Syed with conspiring to defraud the New York City School Construction Authority (SCA) by falsely certifying that workers on the defendants’ SCA-funded construction projects received the legally and contractually mandated prevailing wage for their work.1 The complaint also charges Syed, as well as Irfan Muzaffar and Arun Gandham, an employee of a check-cashing business located in Jersey City, New Jersey, with structuring financial transactions in violation of federal law. The defendants arrested this morning have their initial appearances scheduled later today before United States Magistrate Judge Viktor V. Pohorelsky at the U. S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Eric T. Schneiderman, New York State Attorney General, Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI); Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS), New York; and Special Agent-in-Charge Robert Panella, New York Regional Office of the U.S. Department of Labor, Office of Inspector General (DOL IG), Office of Labor Racketeering and Fraud Investigations.

As alleged in the complaint and other court filings by the government, Nadeem operated a construction company, SM&B Construction Co., Inc. (SM&B) in Brooklyn, which has been awarded over $72 million in contracts by the SCA since 1997 and has received over $32 million in fraud-induced payments from the SCA since 2008. Chaudry and Syed worked as a foreman and office manager, respectively, at SM&B. Both New York State Labor Law and the terms of its contracts with the SCA required SM&B to pay workers on SCA-funded projects a prevailing wage rate, which was set by the New York City Comptroller. In fact, SM&B paid workers on its projects, including bricklayers and laborers, in cash at rates far below the prevailing wage and then falsely certified to the SCA that the workers had been paid the prevailing wage. For example, bricklayers renovating a Brooklyn elementary school were paid $250 for each eight-hour day, rather than the $580 daily wage to which they were legally entitled. Laborers on the same project were paid about $125 per day, rather than the $460-$540 daily wage to which they were legally entitled. As alleged in a detention memorandum filed today by the government, more than $3 million of SM&B’s proceeds from the charged fraud scheme were laundered through shell companies and then sent to Pakistan to fund an investment in an amusement park and resort complex there.

To conceal the charged fraud scheme from law enforcement, and to obtain cash to pay the illegally low wages to workers, Syed, Muzaffar, and Gandham allegedly engaged in illegal structuring, specifically, cashing multiple checks, each for less than $10,000, on a single day, for a total amount of more than $10,000, and thereby avoiding the required filing of Currency Transaction Reports (CTRs). According to the complaint, since January 2008, more than $3.6 million in structured checks were written on SM&B’s account.

“As charged in the complaint, the defendants promised workers a fair wage for a day’s work - work that was often difficult manual labor, but shortchanged them to line their pockets. They also defrauded the taxpayers by falsely stating to the School Construction Authority that they were paying a full day’s wages for a full day’s work. Their lies resulted in the awarding of contracts they were not entitled to, tens of millions of taxpayer dollars obtained by fraud, and the exploitation of workers,” stated United States Attorney Lynch. “They will now be held to account for their actions.” Ms. Lynch expressed her grateful appreciation to the New York City School Construction Authority Office of the Inspector General, the New York State Office of the Attorney General Organized Crime Task Force, the New York City Police Department, and the New York County District Attorney’s Office for their assistance in the investigation.

Attorney General Schneiderman stated, “My office will not tolerate employers who violate New York’s labor laws, steal taxpayer dollars and violate the public trust. Instead of complying with the law and paying their employees the fair and legally required wages, these unscrupulous business owners cheated their workers and stole tens of millions of dollars from New York City schools.”

DOI Commissioner Gill Hearn stated, “The defendants were well schooled in cheating their workers, according to the charges, and even sent millions they skimmed overseas to fund an amusement park. But defrauding the City’s school construction program is a serious crime that no one in law enforcement finds amusing. DOI thanks our partners in this case for their enduring commitment to rooting out fraud in our City’s construction industry.”

IRS Special Agent-in-Charge Weirauch stated, “Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Such investigations are important because structuring is essentially a form of money laundering. The structuring activities alleged in this complaint not only hid a major fraud, but they provided the means to deprive hard working individuals of honest wages.”

DOL IG Special Agent-in-Charge Panella stated, “Today’s charges serve as a deterrent to those who would allegedly defraud unions and workers by falsifying payroll records to conceal their crimes. The Office of Inspector General will continue to work closely with our law enforcement partners to investigate these types of allegations.”

If convicted, the defendants charged with conspiracy to commit mail fraud each face a maximum sentence of 20 years’ imprisonment. If convicted, the defendants charged with illegally structuring financial transactions each face a maximum sentence of five years’ imprisonment.

The government’s case is being prosecuted by Assistant United States Attorneys Paul Tuchmann, Lan Nguyen and Claire Kedeshian.

The Defendants:

MUZAFFAR NADEEM
Age: 57
Residence: Brooklyn, NY

AFZAAL CHAUDRY
Age: 46
Residence: Brooklyn, NY

ZAINUL SYED
Age: 38
Residence: Brooklyn, NY

IRFAN MUZAFFAR
Age: 28
Residence: Brooklyn, NY

ARUN GANDHAM
Age: 44
Residence: Jersey City, NJ

_____________________________

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

Earlier today, defendant Robert D. Sand, the nation’s “Most Wanted Deadbeat Parent” according to a child support enforcement web page, pleaded guilty to two counts of traveling in interstate and foreign commerce with the intent to evade child support obligations totaling over $1.2 million. The proceedings were held before the Honorable Joseph F. Bianco at the United States Courthouse located in Central Islip, New York. Sand faces a maximum sentence of 4 years’ imprisonment when sentenced on May 21, 2013.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Thomas O’Donnell, Special Agent in Charge of the New York Regional Office, Office of the Inspector General, United States Department of Health and Human Services (“OIG-DHHS”) and Charles Dunne, United States Marshal for the Eastern District of New York.

As part of his plea, Sand admitted that he initially relocated from New York to Florida and then fled the United States in order to evade his support obligations following the issuance of arrest warrants in 2000 and 2002. Sand admitted that he had spent much of the past decade in the Kingdom of Thailand where he operated a business. Sand was arrested in late November 2012, upon entering the Republic of the Philippines from Thailand without proper identification documents, and on December 17, 2012, he was deported to Los Angeles, where he was taken into custody by deputies with the United States Marshals Service. During the time Sand was a fugitive, his support obligations continued to grow. At the time of his arrest, Sand owed more than $1.2 Million in back child support.

According to a complaint filed in federal court on April 8, 2002, the New York State Family Court in Nassau County issued an arrest warrant for Sand on November 22, 2000, following multiple contempt findings against him in child support proceedings. A federal arrest warrant was issued for Sand on April 8, 2002. On September 17, 2009, an indictment was filed in the United States District Court for the Eastern District of New York charging Sand with two counts of failure to pay child support, and on February 17, 2010, a federal arrest warrant was issued for Sand’s arrest.

In January 2012, OIG-DHHS launched a child support enforcement web page (http://oig.hhs.gov/fraud/child-support-enforcement/) to seek the public’s help in ongoing federal efforts to bring fugitive “deadbeat parents” to justice. Sand was listed on the site as the number one “Most Wanted Deadbeat Parent” based upon his child support obligations that allegedly totaled more than $1 million.

“Today, the defendant has admitted to abandoning his responsibilities to the children he helped bring into this world, and to leaving the country to do so. Neither court orders nor the familial bond meant anything to him as he fled to avoid his obligations. Today’s guilty plea stands as a strong warning to those who would flee their lawful child support obligations that we will prosecute them to the fullest extent of the law,” stated United States Attorney Lynch. “Neither time, nor distance, will prevent the vigorous pursuit by law enforcement to bring them to justice.” Ms. Lynch expressed her grateful appreciation to the Office of the Inspector General, United States Department of Health and Human Services and the United States Marshals Service for their assistance in this case.

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

The Defendant:

Name: ROBERT D. SAND
Age: 50

An indictment was unsealed today in Brooklyn federal court charging six defendants from the Bedford-Stuyvesant section of Brooklyn, New York, with trafficking crack and powder cocaine.1 Four of the arrested defendants are scheduled to be arraigned today before United States Magistrate Judge Viktor V. Pohorelsky, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. A fifth defendant was arrested yesterday in Harrisburg, Pennsylvania. A sixth is currently in being held in Vermont state custody on narcotics charges and will be brought to Brooklyn for arraignment on the federal indictment.

The charges and arrests 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, and Raymond W. Kelly, Commissioner, New York City Police Department.

A one-year joint investigation by the FBI and the NYPD resulted in the charges against members of a narcotics trafficking organization based in Bedford-Stuyvesant, Brooklyn. As detailed in the indictment and a detention memorandum filed by the government, Glenn Miller, also known as “Chewy,” Jaron Johnson, also known as “Jay Jay,” Rashawn Johnson, also known as “SB,” Raumel Johnson, Azee Patterson and Eric South together trafficked cocaine and cocaine base (or “crack”), supplying street-level drug dealers with narcotics for re-sale. During the investigation, investigating agents intercepted communications over a series of cellular telephones used by Rashawn Johnson, pursuant to court-authorized wiretaps, purchased over 500 grams of cocaine base from Rashawn Johnson through a confidential informant, and executed two search warrants. Also during the investigation, state authorities in upstate New York and Vermont arrested Patterson in possession of distribution-level quantities of heroin, cocaine and cocaine base. As described in the detention memorandum, the investigation revealed that the defendants engaged in daily drug trafficking of large quantities of narcotics in Brooklyn and transported narcotics to upstate New York and Vermont for re-sale.

During the wiretaps, the defendants spoke in code, referring to “eight-balls” or 3.5 gram quantities of narcotics as “squirrelies,” and two-hundred gram quantities of narcotics as a “deuce.” During one intercepted call, Rashawn Johnson reported to a co-conspirator that he had prepared approximately 198 grams of cocaine base or “crack,” with a street wholesale value of approximately $7,900, for Miller. During the call, the co-conspirator asked Rashawn Johnson, “You do that shit for Chewy [Miller] already?” Rashawn Johnson answered: “Yea. I been do that shit already.” The co-conspirator asked, “Was it that much?” Rashawn Johnson answered, “Na. It was only a deuce. Not even a deuce. A little under a deuce. Like a buck 98.” As alleged by the government in the detention memorandum, the defendants’ drug business was of a sufficiently large scale that 198 grams of crack cocaine was considered a small amount.

Glenn Miller, Rashawn Johnson, Raumel Johnson and Eric South were arrested yesterday afternoon in Brooklyn. As alleged in government filings, contemporaneously with the arrests, agents executed search warrants and seized two kilograms of cocaine, 24 grams of cocaine base, two .45 caliber handguns, two .22 caliber handguns, scales and materials for making cocaine base from the defendants’ stash house in Bedford Stuyvesant, Brooklyn, and ten grams of heroin, over $6,000 in currency and an electronic money-counter from a residence across the street. Jaron Johnson was arrested yesterday by FBI agents in Harrisburg, Pennsylvania. At the time of his arrest, Jaron Johnson possessed approximately $23,000 in currency. Jaron Johnson will be arraigned today in United States District Court in Pennsylvania.

“As set forth in the indictment, instead of working to improve the Bedford-Stuyvesant neighborhood, the defendants chose to supply crack and powder cocaine to their community, building a lucrative narcotics organization. The narcotics trade siphons off not just dollars from those affected, but hope and opportunity. This case also illustrates how drug trafficking and illegal firearms go hand in hand. We are committed to removing the scourge of illegal guns and drugs from our communities, and holding those who possess and sell them accountable for their conduct,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the NYPD, and added that the government’s investigation is ongoing.

FBI Assistant Director-in-Charge Venizelos stated, “It’s hardly a surprise, in a case where the indictment charges drug trafficking, to find a cache of guns. Guns - and the potential for gun violence - go hand-in-hand with illegal drugs. That connection between drugs and guns is why the FBI will continue to work with the Police Department to curtail drug trafficking.”

The cases have been assigned to United States District Judge Eric N. Vitaliano. If convicted of the most serious offenses in the indictment, the defendants face a maximum sentence of life imprisonment and a minimum sentence of ten years’ imprisonment.

The government’s case is being prosecuted by Assistant United States Attorney Matthew Amatruda.

The Defendants: GLENN MILLER
Alias: Chewy
Age: 32

JARON JOHNSON
Alias: Jay Jay
Age: 35

RAUMEL JOHNSON
Age: 36

RASHAWN JOHNSON
Alias: SB
Age: 32

AZEE PATTERSON
Age: 28

ERIC SOUTH
Age: 59

_____________________________

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

Earlier today, Taleek Brooks, a former teacher’s aide at a public elementary school in Brooklyn, pleaded guilty to producing child pornography and distributing child pornography. The proceedings were held before United States Magistrate Judge Roanne L. Mann at the United States Courthouse in Brooklyn, New York. Brooks faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum sentence of 50 years’ imprisonment when sentenced on May 23, 2013.

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.

Brooks, a teacher’s aide at Public School 243, The Weeksville School, in Brooklyn, regularly downloaded and distributed videos and images depicting child pornography over the Internet through a peer-to-peer file sharing program. In December 2011, Brooks accepted a “friend” request from an undercover FBI special agent, which permitted the agent to observe and download several videos and images depicting child pornography that Brooks had designated for sharing with his “friends” on the peer-to-peer network.

On January 13, 2012, FBI special agents executed a search warrant on Brooks’s residence in Brooklyn. During the search, agents seized, among other items, a computer and two external hard drives from Brooks’s bedroom. Hundreds of videos and images depicting child pornography were found on the computer equipment.

A FBI forensic examination of the equipment revealed that Brooks had produced child pornography. In a folder that Brooks had labeled “Special,” investigators recovered videos and images of a young child performing sexually explicit acts at Brooks’s direction. Brooks can be heard and seen in some of the videos. Investigators later confirmed that the young child had been a student at Public School 243 while Brooks was a teacher’s aide and that the videos and images were produced in two of the school’s classrooms.

“School is supposed to be a place of learning, where our children can excel and grow. Brooks turned his classroom into a place of fear and exploitation, taking advantage of the trust that was placed in him by a young child that he was charged with teaching and protecting. He spent his additional time and energy collecting images of the exploitation of yet more children. We stand committed to protecting our youth from those who abuse them and violate that trust,” stated United States Attorney Lynch. “Today’s guilty plea stands as a strong warning to those who prey on our youth that we will prosecute them to the fullest extent of the law.”

FBI Assistant Director-in-Charge Venizelos stated, “Brooks not only collected and traded images of child pornography, he created it when he directed and recorded a child performing sexually explicit acts in a school classroom. The FBI is committed to protecting children by policing child predators.”

The government’s case is being prosecuted by Assistant United States Attorney Robert Polemeni.

The Defendant:

TALEEK BROOKS
Age: 42

BROOKLYN, N.Y. – Earlier this afternoon, at the U.S. District Court for the Eastern District of New York, Quazi Mohammad Rezwanul Ahsan Nafis, 21, pleaded guilty to attempting to detonate what he believed to be a 1,000 pound bomb at the New York Federal Reserve Bank on Liberty Street in lower Manhattan’s financial district.  The charge to which Nafis pleaded guilty, attempting to use a weapon of mass destruction, carries a sentence of up to life imprisonment.

            The guilty plea was announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; Lisa Monaco, Assistant Attorney General for National Security; George Venizelos, Assistant Director-in-Charge, FBI, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).

            According to today’s guilty plea and documents filed in the case, defendant Nafis, a Bangladeshi national, traveled to the United States in January 2012, intending to fight violent jihad.  Nafis attempted to recruit multiple individuals to form a terrorist cell inside the United States.  He brought with him digital media containing bomb-making instructions and speeches by Anwar al-Awlaki, a now deceased leader of al-Qaeda in the Arabian Peninsula (AQAP).  Nafis also actively sought out al-Qaeda contacts within the United States to assist him in carrying out an attack.  Unbeknownst to Nafis, one of the individuals he attempted to recruit was a source for the FBI.  During their subsequent investigation, FBI agents and NYPD detectives working with the Joint Terrorism Task Force closely monitored Nafis as he attempted to implement his plan.

            Nafis proposed several targets for terrorist attack, including a high-ranking U.S. official and the New York Stock Exchange.  Ultimately, Nafis decided to conduct a bombing operation against the New York Federal Reserve Bank.  In a written statement he devised to claim responsibility for the terrorist bombing of the Federal Reserve Bank on behalf of al-Qaeda, Nafis wrote that he wanted to “destroy America” and that he believed the most efficient way to accomplish this goal was to target America’s economy.  In this statement, Nafis also included quotations from “our beloved Sheikh Osama bin Laden” to justify the killing of women and children that Nafis expected would result from the attack.

            During the investigation, Nafis came into contact with an FBI undercover agent who posed as an al-Qaeda facilitator.  At Nafis’s request, the undercover agent supplied Nafis with 20 50-pound bags of purported explosives.  Nafis then worked to store the material and assemble the explosive device for his attack.  Nafis purchased components for the bomb’s detonator and conducted surveillance for his attack on multiple occasions in New York City’s financial district in lower Manhattan.  Throughout his interactions with the undercover agent, Nafis repeatedly asserted that the plan was his own and was the reason he had come to the United States.

            On October 17, 2012, the day of the planned attack, Nafis met the undercover agent and traveled in a van to a warehouse located in the Eastern District of New York.  While en route, Nafis explained to the undercover agent that he had a “Plan B” that involved conducting a suicide bombing operation in the event that the attack was about to be thwarted by the police.  Upon arriving at the warehouse, Nafis assembled what he believed to be a 1,000 pound bomb inside the van.  Nafis and the undercover agent then drove to the New York Federal Reserve Bank.  During this drive, Nafis armed the purported bomb by assembling the detonator and attaching it to the explosives.  Nafis and the undercover agent parked the van next to the New York Federal Reserve Bank, exited the van, and walked to a nearby hotel.  There, Nafis recorded a video statement to the American public which he intended to release in connection with the attack.  During this video statement, Nafis stated: “We will not stop until we attain victory or martyrdom.”  Nafis then repeatedly, but unsuccessfully, attempted to detonate the bomb, which had been assembled using the inert explosives provided by the undercover agent.  JTTF agents arrested Nafis immediately after he attempted to detonate the bomb.

            “As today’s guilty plea shows, the defendant came to this country not to further his studies, but to advance the goals of jihad.  Once here, he devoted his energies to refining his plan to disrupt the U.S. economy and kill Americans, and attempting to recruit others to join him.  Ultimately, he resolved to commit mass murder in downtown Manhattan through an attack on the New York Federal Reserve Bank, a symbol of America’s economy.  With diligence and determination, Nafis attempted to carry out his plan in the name of al-Qaeda.  We are committed to protecting the safety of all Americans, including the hundreds of thousands who work in New York’s financial district.  We will not wait for our enemies to attack us before using the tools at our disposal to discourage, disrupt, and ultimately, detain them with lengthy terms of incarceration,” stated U.S. Attorney Loretta E. Lynch.  “I would like to thank our partners at the FBI, NYPD, United States Secret Service, Immigration and Customs Enforcement/Homeland Security Investigations, New York State Police, the other agencies who participate in the JTTF, and the Department of Justice’s National Security Division for their hard work on this important investigation.  I would also like to thank the security teams at the New York Federal Reserve Bank and the New York Stock Exchange for their assistance.”      

            “Rezwanul Nafis today admitted that he came to America for the purpose of conducting terrorist attacks, that he tried to recruit others into his plans, and that he ultimately concocted and attempted to carry out an attack against the New York Federal Reserve Bank.  Thanks to a coordinated undercover law enforcement effort, his plot was thwarted.  I applaud the many agents, analysts and prosecutors who helped bring about today’s successful outcome,” said Lisa Monaco, Assistant Attorney General for National Security.

            FBI Assistant Director-in-Charge George Venizelos stated, “Nafis admits he came to the U.S. intent on committing jihad, assembled a bomb for that purpose, and attempted to detonate it.  Thankfully, among those who stood between him and his goal were a source and an undercover FBI agent.  In order to stop those committed to terrorism from conspiring with others who would actually help them, we will continue to use all available tactics, including the use of undercover agents.  There is no more important mission.”

            NYPD Commissioner Kelly stated, “Nafis is just one of the more recent examples of individuals charged in terrorist plots against targets in New York City.  There have been 16 plots against the city that we know of since the World Trade Center Twin Towers were destroyed in 2001.  Time and again, individuals intent on making a violent terrorist statement select New York City as their venue.  That’s why, as in many other cases, the NYPD cooperated closely with federal prosecutors and the Joint Terrorism Task Force of the FBI to bring Nafis to justice.”

             The defendant faces a statutory maximum sentence of life.  His sentencing is scheduled for May 30, 2013, at 10:00 AM, before Chief Judge Carol B. Amon, at the federal courthouse in Brooklyn.

             The government’s case is being prosecuted by Assistant U.S. Attorneys James P. Loonam and Richard M. Tucker, with assistance from Trial Attorney Bridget Behling of the Justice Department’s Counterterrorism Section.

The Defendant:

Quazi Mohammad Rezwanul Ahsan Nafis
Age: 21
Jamaica, New York

Five individuals and five corporations have been charged in an indictment unsealed today in Brooklyn federal court for allegedly importing hazardous and counterfeit toys from China for sale in the United States, announced Assistant Attorney General Lanny Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Special Agent in Charge of Homeland Security Investigations (HSI) in New York James T. Hayes Jr.; Robert E. Perez, New York Field Operations Director of Customs and Border Protection (CBP); Chairman Inez Tenenbaum of the Consumer Product Safety Commission (CPSC); and Commissioner Raymond W. Kelly of the New York City Police Department (NYPD).

The 24-count indictment charges Chenglan Hu, 51, Hua Fei Zhang, 52, and Xiu Lan Zhang, 60, all Chinese nationals and residents of Queens, N.Y., and Guan Jun Zhang, 29, and Jun Wu Zhang, 28, both naturalized citizens and Queens residents, along with their closely held companies Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc., with importing and trafficking hazardous toys in violation of the Consumer Product Safety Act (CPSA) and toys bearing copyright-infringing images and counterfeit trademarks, smuggling, money laundering and structuring.

“The defendants are accused of importing and selling toys that posed significant health hazards to children or were the product of blatant intellectual property theft,” said Assistant Attorney General Breuer. “They allegedly retooled their operations many times in order to avoid detection, and despite repeated citations by the authorities, they continued to peddle counterfeit toys featuring Dora the Explorer, SpongeBob SquarePants and other popular children's characters. Today’s actions reflect a Justice Department focused on ensuring that consumers receive safe and legitimate goods.”

“For years, the defendants sought to enrich themselves by importing and selling dangerous and counterfeit children’s toys without regard for the law or the health of our children,” said U.S. Attorney Lynch. “Profits from the counterfeit items, as well as toys riddled with lead and choking hazards, went to provide the defendants with luxury cars. We stand committed to protecting the residents of our communities from those who would engage in such conduct.”

The five individual defendants were arrested this morning, and a federal task force comprising HSI agents, other federal agents and NYPD officers, aided by CBP officers and CPSC investigators, executed four search warrants and nine seizure warrants. The agents, officers and investigators searched the defendants’ warehouse, two residences and an email account. In addition, three luxury vehicles, including a Porsche and Lexus, three personal bank accounts and three corporate accounts were seized. The agents also filed lis pendens on two of the defendants' properties in Queens, N.Y. The defendants’ initial appearances are scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr.

The indictment charges that from July 2005 through January 2013 the individual defendants used their companies, the corporate defendants, to import toys from China that they sold, both wholesale and retail, from a storefront and warehouse in Ridgewood, N.Y., and other locations in Brooklyn and Queens.

According to the indictment, the defendants’ companies had children’s toys seized by CBP from shipping containers entering the United States from China on 33 separate occasions. Seventeen of the 33 seizures were of violative toys - toys prohibited from import into and distribution in the United States, under laws and regulations enforced by the CPSC, because of excessive lead content, excessive phthalate levels, small parts that presented choking, aspiration or ingestion hazards, and easily accessible battery compartments. Sixteen of the 33 seizures were of toys bearing copyright-infringing images and counterfeit trademarks, including knockoff versions of toys featuring a wide variety of popular children’s characters, such as Winnie the Pooh, Dora the Explorer, SpongeBob SquarePants, Betty Boop, Teenage Mutant Ninja Turtles, Power Rangers, Spiderman, Tweety, Mickey Mouse, Pokémon, as well as those from movies, such as the “Cars,” “Toy Story” and “High School Musical.”

The indictment charges that following each of the 33 seizures, the violator toy company was served written notice by CBP detailing the reason for the seizure, and a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods. Additionally, the violator company and its principal were served written notice by CPSC of the specific safety violations of the toys, and each time a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods.

Due to the number and volume of the seizures, the individual defendants allegedly shifted their use of the companies and alternated formal roles, in order to continue importing and distributing violative and infringing toys. Each time the number of seizures accumulated for one company, the individual defendants allegedly formed a new toy company to continue importing the violative and infringing toys.

“The people and companies involved in this illegal trade not only allegedly infringed on intellectual property rights, they placed the lives of innocent children in danger,” said HSI Special Agent in Charge Hayes. “They allegedly sold toys with high lead content and cheap knock offs with substandard parts that break easily and pose a choking hazard. HSI is firm on using its unique customs expertise and law enforcement partnerships to put an end to the importation and sale of dangerous goods.”

“Customs and Border Protection is on the forefront of intercepting unsafe, counterfeit products,” said CBP New York Field Operations Director Perez. “We are proud to have done our part preventing these dangerous toys from getting in the hands of our children.”

“Today’s action highlights the unprecedented level of cooperation and coordination among federal regulatory and law enforcement partners to keep U.S. consumers safe,” said CPSC Chairman Tenenbaum. “The United States has some of the strongest toy standards and lowest lead limits in the world, and CPSC is committed to enforcing these child safety requirements at the ports and in the marketplace.”

“When it comes to trademark infringement, don’t mess with Mickey or other American icons,” said NYPD Commissioner Kelly.

In the indictment, the government is seeking forfeiture of the seized vehicles and bank accounts and the restrained properties, in addition to a money judgment to be determined at trial.

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

The case is being prosecuted by Trial Attorney Evan Williams of the Criminal Division's Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claire Kedeshian and William Campos of the Eastern District of New York. This case was jointly investigated by the HSI Intellectual Property Rights Group and the NYPD, through its participation in the New York Border Enforcement Security Taskforce, with the assistance of CPSC and CBP.

The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.

Earlier today, at the United States District Court for the Eastern District of New York in Brooklyn, New York, former New York State Senator Shirley Huntley pleaded guilty to a criminal Information charging her with conspiracy to commit mail fraud. Huntley served in the New York State Senate, representing the 10th District in Queens, from 2007 to 2012. During part of the time of the charged conspiracy, Huntley was a sitting State Senator.

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.

As charged in the Information, Huntley ran a Queens non-profit organization known as Parents Information Network, Inc. (PIN) that received public funds to help educate parents about the New York City public school system. From October 2005 through October 2008, Huntley embezzled approximately $87,700 from PIN. In furtherance of this scheme, Huntley falsely certified to New York State that these funds would be used, and had been used, to support PIN’s charitable mission. Instead, Huntley used the money for her own personal benefit and for the benefit of her family members and associates. During this time period, PIN received nearly all of its funding from New York State.

Huntley controlled PIN’s finances through a bank account which held PIN funds. Huntley stole from PIN by writing over $21,000 in checks from the PIN account to herself and a family member. Huntley used $500 of PIN funds to pay her personal credit card bill and embezzled more than $34,000 from PIN through ATM withdrawals. Huntley also embezzled funds from PIN by using straw recipients, who posed as legitimate recipients of payments from PIN. Huntley wrote checks for $24,500 to the straw recipients, who cashed the checks and returned substantially all of the funds to Huntley in cash.

In her plea agreement with the government, Huntley agreed to make restitution of $87,700 to the New York State Department of Education for the funds she embezzled. In addition, Huntley also agreed to make restitution of $1,000 in connection with an unrelated bribery scheme involving a cargo-handling business at John F. Kennedy International Airport.

The guilty plea took place before U.S. District Judge Jack B. Weinstein. When sentenced, Huntley faces up to five years of imprisonment and a fine of $250,000, in addition to restitution.

“Huntley’s experience and influence were supposed to be used for the benefit of her constituents. Instead, Huntley used her knowledge of the system to steal funds intended to help some of her neediest constituents, lining her own pockets at the expense of parents in need, and ultimately their children,” stated United States Attorney Lynch. “She will now be held to account for her crime. This guilty plea underscores our unwavering commitment to hold responsible those who abuse their authority and pursue their own financial interests instead of the public interest.” Ms. Lynch thanked the office of the New York State Attorney General and the Port Authority of New York and New Jersey for their assistance.

FBI Assistant Director-in-Charge Venizelos stated, “Because of the trust placed in them, elected officials should hold themselves to a higher ethical standard than the public at large. The law sets the bar lower, but still Huntley failed to clear it. In a sense, her victims are everyone whose confidence in government is undermined by such conduct.”

The government’s case is being prosecuted by Assistant United States Attorneys Daniel Spector, Paul Tuchmann, and Alexander Solomon.

The Defendant:

SHIRLEY HUNTLEY
Age: 74

NEWARK, N.J. – A former International Longshoremen’s Association (“ILA”) member was sentenced to 30 months in prison today 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.

Edward Aulisi, 53,of Flemington, N.J., previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh in Newark federal court to conspiring to extort Christmastime tributes from the ILA Local 1235 members – Count Three of the Second Superseding Indictment against him.

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

Edward Aulisi conspired with his father, Vincent Aulisi – the former President of ILA Local 1235 who succeeded another co-defendant, Albert Cernadas – and Michael Coppola, a Genovese organized crime family captain, in the scheme. Coppola was convicted in July 2009 following a trial in the Eastern District of New York of racketeering and racketeering conspiracy, based in part on acts relating to extortion and wire fraud concerning ILA Local 1235.

Edward Aulisi admitted he participated in telephone calls in furtherance of the extortion conspiracy in March 2007 with Coppola – who was then a fugitive from a New Jersey state murder after having been served with a summons to provide DNA in 1996. Edward Aulisi agreed that he passed information to Coppola on the calls – specifically that Cernadas had told Vincent Aulisi the Christmastime extortion scheme would cease once Cernadas left the presidency, and Vincent Aulisi stated it would continue. Edward Aulisi also admitted Vincent Aulisi had asked him to tell Coppola the Christmastime extortion collections had almost doubled.

Edward Aulisi admitted it had been his intention to deliver Christmastime tribute money extorted from ILA Local 1235 members to Coppola had Coppola not been arrested shortly after the phone calls.

In addition to the prison term, Judge Cavanaugh sentenced Edward Aulisi to two years of supervised release and fined him $10,000.

Coppola is serving a 16-year prison term on his conviction.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey and New York and the Department of Labor’s Office of Inspector General with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Jacquelyn M. Kasulis and Jack Dennehy 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.

Defense counsel: Robert E. Lytle Esq., Lawrenceville, N.J.

John Burke, a longtime associate of the Gambino organized crime family of La Cosa Nostra (the “Gambino family”), was sentenced today to life imprisonment without parole plus 10 years for the murder of a rival drug dealer in aid of racketeering, racketeering conspiracy, and other charges. On June 8, 2012, following a four-week trial before United States District Judge Sterling Johnson, Jr., in Brooklyn federal court, Burke was convicted of all charges in the superseding indictment.

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

As established at trial, Burke was a trusted Gambino family enforcer and drug dealer for nearly three decades. As part of the racketeering conspiracy, Burke participated in numerous acts of violence, including fatal shootings and home-invasion robberies, as well as drug trafficking involving cocaine and marijuana. Burke was convicted of two murder predicate acts, including the 1991 murder of Bruce Gotterup, who was shot in the back of the head on the boardwalk in the Rockaways, and the 1996 murder of John Gebert, who was slain under a pool table in a Woodhaven bar. The jury also found Burke guilty of the murder of John Gebert in aid of racketeering, murdering John Gebert as part of a continuing criminal enterprise, and a firearms charge.

Ms. Lynch expressed her appreciation to the Federal Bureau of Investigation, the New York State Department of Corrections and Community Supervision, the Queens County District Attorney’s Office, the United States Marshals Service, and the other members of the law enforcement community for their efforts in the investigation and prosecution of this case.

The government’s case was prosecuted by Assistant United States Attorneys Jacquelyn M. Kasulis, Evan M. Norris, and Whitman G.S. Knapp.

The Defendant:

JOHN BURKE
Age: 51

A former director of a Georgia bank who managed two private investment funds has been charged by a federal grand jury in the Eastern District of New York with securities fraud and wire fraud. According to court documents, defendant Aubrey Lee Price sent a letter to acquaintances in mid-June 2012 in which he admitted that he had lost a large amount of investor money through trading activities and that he planned to kill himself by jumping from a ferry boat in Florida. Price remains missing. Anyone with information regarding Price’s whereabouts or the alleged crime is urged to contact the Federal Bureau of Investigation office in New York at (212) 384-1000, or at ny1@ic.fbi.gov.

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 (FBI), New York Field Office.

According to the indictment, Price managed investment funds PFG LLC (“PFG”) and the Montgomery Growth Fund (“Montgomery Growth”). Starting in or about June 2009, PFG raised approximately $40 million from approximately 115 investors from across the nation. Price unsuccessfully invested PFG funds in various equity securities, options, and real estate, including farms in South America. To cover up his losses, Price allegedly lied to his investors by posting fake account statements on a secure PFG web site that fraudulently reflected fictitious assets and fabricated investment returns.

The indictment also states that, starting in or about January 2011, Price became a director of Montgomery Bank & Trust (“MB&T”), a financial institution in Ailey, Georgia. Price also invested some of the bank’s capital, which he told the bank’s management he would invest safely in U.S. Treasury securities. Instead, Price lost much of the bank’s money through risky investments in equity securities and options. Price also embezzled MB&T money to pay redemptions to some PFG investors. The indictment charges that Price covered up his embezzlement and losses of MB&T’s funds by giving the bank’s management fabricated documents falsely indicating that approximately $17 million was on deposit in the bank’s name at a large financial services firm in New York.

“As charged in the indictment, this defendant repeatedly abused the trust placed in him by his investors and MB&T by lying about his investment losses, fabricating documents, and embezzling bank funds. Through this web of deception, Price acted to create the image of a successful investor. When that image was shown to be a lie, he then orchestrated his confession and disappearance. We are using every resource available to locate him and recover the funds he stole,” said U.S. Attorney Lynch.

FBI Assistant Director-in-Charge Venizelos stated, “As alleged, Price lied to investors about where their money would be invested, and lied to them about the solvency of his company. He lied to the bank on whose board he served about investment of bank capital, and lied again to cover up that lie. It is therefore reasonable to assume that Price’s talk of suicide was also a lie. The FBI is actively looking for Aubrey Lee Price.”

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 prison sentence of 30 years for wire fraud and 25 years for securities fraud.

The government’s case is being prosecuted by Assistant United States Attorneys David C. Woll, Jr., James McMahon, and Brian Morris.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The Defendant:

Name: AUBREY LEE PRICE
Age: 46

Federal agents and investigators with the Suffolk County Police Department’s Computer Crimes Squad arrested an East Moriches man this morning on the charge of possessing child pornography. The defendant, Jay Lockett Sears, is scheduled to be arraigned later today before United States District Magistrate Arlene R. Lindsay at the U.S. Courthouse, 100 Federal Plaza, Central Islip, New York.1

The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, (“FBI”) New York Field Office, and Edward Webber, Commissioner, Suffolk County Police Department (“SCPD”).

According to court filings, which include an application for a search warrant of the defendant’s East Moriches apartment, Sears created hundreds of images of child pornography by taking photographs of children in public settings, and then cutting and pasting the heads of the children onto images of adult bodies engaged in sexual activity. Some images included those in which Sears allegedly pasted his own facial images onto the bodies of other males so as to appear as if he were having sexual relations with children.

Sears came to the attention of the SCPD on January 11, 2013, after the discovery of numerous bags containing hundreds of child pornography images were found in trash removed from the defendant’s apartment. The images were discarded apparently in anticipation of Sears vacating his apartment.

“As alleged, Sears victimized countless children by using their innocent images to create child pornography. He then went so far as to use his own image to virtually join in the exploited scenarios he created. The sexual exploitation of children is one of our most important law enforcement priorities. Those who seek to harm children will be arrested and prosecuted,” stated United States Attorney Lynch.

Assistant Director-in-Charge Venizelos stated, “The altering of children’s photos to create child pornography victimizes those children to provide merchandise for a depraved market. We have an obligation and a commitment to protect children from exploitation.”

“Children are our most precious and vulnerable resource,” said Suffolk County Police Department Commissioner Webber. “Protecting children in our community is a high priority for our police department, and we will continue to work with other law enforcement agencies, as well as community leaders, to ensure their safety.”

If convicted, the defendant faces a maximum sentence of 10 years’ imprisonment.

Parents who believe that their children may have been the victims of persons involved in child pornography should contact the Suffolk County Computer Crimes Squad at (631) 852-6279, or the Federal Bureau of Investigation at (631) 501-8600.

The government’s case is being prosecuted by Assistant United States Attorneys Allen Bode and Thomas Sullivan.

The Defendant:

Name: JAY LOCKETT SEARS
Age: 73

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

Complaint Charges Angel Rivas with Using a Laser Pointer to Direct a Laser Beam at a Commercial Airliner Headed for JFK Airport and a Police Helicopter

Federal agents arrested a Shirley, Long Island, man this morning on the charge of aiming a laser pointer at two aircraft last August 2012. 1

The arrest of Angel Rivas was announced today by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office. The defendant is scheduled to be arraigned before the United States Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York, later today.

According to court filings, on August 21, 2012, the defendant used a laser pointer to direct a laser beam at a commercial aircraft and a Suffolk County Police Department helicopter sent up to investigate the initial incident. Investigators first determined that the beam of light came from the vicinity of the defendant’s residence on William Floyd Parkway in Shirley, New York, then confirmed that the defendant himself had directed the laser beam at the aircraft and helicopter.

“Laser pointers aimed at aircraft pose many dangers, including disrupting the vision of pilots,” said United States Attorney Lynch. “Last February, President Obama signed the FAA Modernization and Reform Act of 2012, which specifically prohibited the conduct alleged in the complaint. The safety of American air travelers has been and will continue to be a priority for law enforcement.” Ms. Lynch expressed her grateful appreciation to the U.S. Department of Transportation, Office of Inspector General - Investigations, the FBI Joint Terrorism Task Force in New York, and the Suffolk County Police Department for their participation in the investigation leading to today’s arrest.

FBI Assistant Director-in-Charge Venizelos stated, “On a night last summer, Rivas allegedly endangered the lives of passengers and crew of not one but two aircraft, and potentially, people on the ground. Pointing a laser at an aircraft is not a prank, it is a federal crime with penalties befitting its seriousness.”

If convicted of the charge, the defendant faces a maximum sentence of five years’ imprisonment and a maximum fine of $250,000.

The government’s case is being prosecuted by Assistant United States Attorney Charles N. Rose.

The Defendant:

ANGEL M. RIVAS
Age: 33

_____________________________

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

Brooklyn-based real estate developer Schelton Assoumou was arrested today on charges of bank fraud and wire fraud for his participation in a multi-year mortgage fraud scheme. The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Cary Rubenstein, Special-Agent-in-Charge, United States Department of Housing and Urban Development - Office of Inspector General; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Steve Linick, Federal Housing Finance Agency - Office of Inspector General.

As detailed in the criminal complaint, between approximately June 2008 and June 2012, Assoumou purported to be a real estate developer doing business as the President of Renaissance Development, Inc. In that capacity, Assoumou sold homes in Brooklyn as investment properties. Assoumou assured the investors that he would manage the real estate properties on their behalf, including collecting rents and making mortgage payments to lenders. In fact, Assoumou made little more than token efforts to manage the properties and failed to maintain mortgage payments as promised. As a consequence, each of the loans Assoumou procured fell into default. The loss to the lenders described in the complaint was over $2 million. As noted therein, these were not the only fraudulent transactions disclosed during the government’s investigation.

As part of the scheme, Assoumou submitted fraudulent mortgage applications to the lenders. The applications contained various misrepresentations, including falsely inflated information concerning one borrower’s bank balance and false claims that certain borrowers would live at the properties – a requirement for receipt of certain federally insured loans. To further the scheme, Assomou provided to the lenders fraudulent documentation to support the false claims in the mortgage applications.

If convicted of all charges, the defendant faces a maximum sentence of 30 years in prison, restitution, and a fine of up to twice the loss inflicted by the defendant’s conduct.

“As alleged in the complaint, Schelton Assoumou purported to run a real estate development business that invested in the revitalization of the Bedford-Stuyvesant neighborhood in Brooklyn. Instead, his goal was to fleece investors and lending institutions alike, using false promises and fraudulent documents to carry out his scheme. Assoumou engaged in the very type of fraud that contributed to the recent collapse of the housing market,” stated United States Attorney Lynch. “Those who engage in such conduct will be vigorously investigated and prosecuted.”

FBI Special-Agent-in-Charge Venizelos said, “The defendant allegedly deceived both mortgage lenders and borrowers to enrich himself. Profiting from dishonest business doesn’t revitalize the economy, it undermines it.”

Federal Housing Finance Agency Inspector General Linick said, “The complaint alleges a scheme to defraud in which home mortgage lenders, among them Fannie Mae and Freddie Mac, lost millions of dollars as a result of Schelton Assoumou’s activities. My Office is committed to prosecuting such fraud schemes to the fullest extent under law.”

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The Task Force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The government’s case is being prosecuted by Assistant United States Attorney Michael Warren.

The Defendant:

SHELTON ASSOUMOU
Age: 36
Residence: Brooklyn, NY

WASHINGTON – Roland Kaufmann, CEO of Axius Inc., pleaded guilty today in Brooklyn for conspiring to bribe stock brokers, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Eastern District of New York Loretta E. Lynch. 

Kaufmann, 60, a Swiss citizen, pleaded guilty before U.S. District Judge John Gleeson in the Eastern District of New York to one count of conspiracy to violate the Travel Act.

“Roland Kaufmann conspired to bribe stock brokers and fleece investors in Axius stock,” said Assistant Attorney General Breuer.  “He took the crooked path, and now faces the prospect of years in prison.  Although he committed his crimes from outside the United States, U.S. authorities tracked him down and he has now been held to account.  This case shows our determination to prosecute all those who seek to corrupt U.S. securities markets.”

“Roland Kaufman sought to game the system with his scheme to bribe stockholders to help him artificially raise the price of his company’s stock,” said U.S. Attorney Lynch.  “He reached across the ocean to insert his deception into U.S. markets, thereby placing investors at risk.  We will continue to bring our resources to bear against anyone who would harm the integrity of United States capital markets for their own personal financial gain, even when those who try to exploit our investors are hatching their schemes from abroad.”  

“The flagrant market manipulation engaged in by Kaufmann was designed to make him rich,” said George Venizelos, Assistant Director in Charge, FBI New York Field Office.  “Absent the undercover agent, the scheme also would have made honest investors much poorer. The FBI is committed to policing the securities industry to prevent unjust enrichment for cheaters, victimization of honest investors, and the undermining of public confidence in market integrity.”

“This case demonstrates the value of a coordinated approach by law enforcement authorities,” said Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation.  “As a result of the collaborative effort in this investigation, investors were protected from further financial harm.  IRS Criminal Investigation is always ready to lend its financial investigative expertise to the investigation of complex and sophisticated financial crimes.”

Kaufmann admitted to conspiring with co-defendant Jean-Pierre Neuhaus, another Swiss citizen, to violate the Travel Act by bribing stock brokers.  Axius, which refers to itself as a “holding company and business incubator” that develops other businesses, is incorporated in Nevada, and its principal offices are in Dubai, United Arab Emirates.  As part of the scheme, Kaufmann and Neuhaus, while located overseas, enlisted the assistance of an individual they believed had access to a group of corrupt stock brokers; this individual was in fact an undercover law enforcement agent.  Kaufmann and Neuhaus believed that the undercover agent controlled a network of stockbrokers in the United States with discretionary authority to trade stocks on behalf of their clients.

According to court documents, Kaufmann and Neuhaus instructed the undercover agent to direct brokers to purchase Axius shares that were owned or controlled by Kaufmann in return for a secret kickback of approximately 26 to 28 percent of the sale price.  Kaufmann and Neuhaus instructed the undercover agent as to the price the brokers should pay for the stock, and Kaufmann specifically instructed the undercover agent, in Neuhaus’s presence, that the brokers would have to pay gradually higher prices for the shares they were buying.  Kaufmann and Neuhaus directed the undercover agent that the brokers were to refrain from selling the Axius shares they purchased on behalf of their clients for a one-year period.  By preventing sales of Axius stock, Kaufmann and Neuhaus intended to maintain the fraudulently inflated share price for Axius stock.  Kaufmann and Neuhaus agreed to sell approximately $3.5 million to $5 million worth of Axius shares through the undercover agent’s stock brokers.

Kaufmann and Neuhaus were arrested on March 8, 2012.  On Oct. 10, 2012, Neuhaus pleaded guilty to conspiracy to commit securities fraud and violate the Travel Act.

At sentencing, scheduled for May 17, 2013, Kaufmann faces a maximum penalty of five years in prison. As part of his plea agreement, Kaufmann agreed to forfeit $298,740 that victims lost as a result of the crime.

This case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ilene Jaroslaw of the Eastern District of New York.  The case was investigated by the FBI New York Field Office and the IRS New York Field Office.  The department also thanks the Securities and Exchange Commission for its assistance in this matter.

Earlier today, at the United States District Court for the Eastern District of New York in Brooklyn, New York, Agron Hasbajrami, an Albanian citizen and Brooklyn resident, was sentenced to 15 years in prison for attempting to provide material support to terrorists. Hasbajrami will be removed from the United States at the conclusion of his sentence.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Assistant Attorney General for the National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department.

As stated on the record during the guilty plea and sentencing proceedings and according to court filings, in early 2011, while living in Brooklyn, Hasbajrami exchanged email messages with an individual in Pakistan who indicated that he was a member of an armed group that had murdered American soldiers. Hasbajrami sent the individual more than $1,000 to support the jihadist cause. Then, in pursuit of his goal to engage personally in violent jihad, Hasbajrami arranged to meet the individual in the Federally Administered Tribal Area of Pakistan (the “FATA”). In one email message, Hasbajrami stated that he wished to travel abroad to “marry with the girls in paradise,” using jihadist rhetoric to describe his desire to die as a martyr.

In September 2011, Hasbajrami purchased a one-way airplane ticket to travel to the Middle East on his way to the FATA to fight violent jihad. He was arrested by the FBI’s Joint Terrorism Task Force at John F. Kennedy International Airport in Queens, New York, as he embarked on his one-way flight. At the time of his arrest, Hasbajrami was carrying a tent, boots, and cold-weather gear. A search of Hasbajrami’s residence in Brooklyn revealed, among other items, a note reading “Do not wait for invasion, the time is martyrdom time.” In April 2012, Hasbajrami pled guilty in federal district court in Brooklyn to attempting to provide material support to terrorists by joining a jihadist fighting group overseas. United States District Judge John Gleeson imposed sentence earlier today.

“Hasbajrami sought to use New York as the launching pad for his terrorist scheme. Hoping to die a martyr to the cause of violent jihad, he will spend 15 years of his remaining days in federal prison. In addition, this sentence should serve as a strong deterrent to anyone who would consider supporting terrorism or launching an operation from the United States,” stated United States Attorney Lynch. “This case exemplifies how law enforcement works to protect both our citizens at home and our servicemen abroad.” Ms. Lynch thanked the Department of Homeland Security, Immigration and Customs Enforcement, the United States Secret Service, the other federal, state, and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York, and the Department of Justice’s Counterterrorism Section, for their work on the case.

FBI Assistant Director-in-Charge Venizelos stated, “The global nature of our effort to prevent terrorism works in two directions. We continue to work with overseas partners to thwart those plotting abroad to do harm here. Today’s sentence shows the result of our efforts to prevent someone here from going overseas to endanger or kill Americans abroad.”

The government’s case was prosecuted by Assistant United States Attorneys Seth D. DuCharme and Matthew S. Amatruda with assistance provided by Trial Attorney Courtney Sullivan of the Counterterrorism Section of the Department of Justice.

The Defendant:

AGRON HASBAJRAMI
Age: 28

WASHINGTON – Attorney General Eric Holder announced today the appointment of U.S. Attorney for the Eastern District of New York Loretta E. Lynch as chair of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Holder also appointed U.S. Attorney for the Northern District of Georgia Sally Quillian Yates to serve as vice chair. Both appointments became effective Jan. 1, 2013.

“I’m confident that U.S. Attorneys Lynch and Yates have the expertise and dedication to lead this critical group in a challenging time, as we work to fulfill the department’s commitment to protecting the American people,” said Attorney General Holder. “I’m deeply grateful for their service and leadership – and look forward to continuing to work closely with all 94 of our United States Attorneys.”

U.S. Attorney Lynch was appointed to the AGAC in May 2010 and has served as vice chair since 2011. She replaces U.S. Attorney for the District of New Jersey Paul J. Fishman. U.S. Attorney Lynch has also served as the chair for the Advisory Committee’s Office, Management and Budget Subcommittee.  

U.S. Attorney Yates was appointed to the AGAC in May 2010 and has served on several subcommittees including Civil Rights, White Collar Fraud, and Criminal Practice and Law Enforcement Coordination/Victim/Community Issues.

Attorney General Holder also thanked U.S. Attorney Fishman for serving as chair of the AGAC for the past two years. “U.S. Attorney Fishman’s leadership, vision and unselfish dedication have brought the U.S. Attorney community together to address a myriad of law enforcement issues. His guidance and sage counsel have been invaluable to department leadership as we work together to enforce the laws of this nation.” 

The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.

Abid Naseer, a Manchester-based United Kingdom resident, was extradited from the United Kingdom to Brooklyn, New York, today to face charges for his alleged role in an international al-Qaeda plot to attack targets in the United States and Europe. Naseer will make his initial appearance on Monday, January 7, at 2:00 p.m., before The Hon. Raymond J. Dearie of the United States District Court for the Eastern District of New York. Naseer is the eighth defendant to face charges in Brooklyn federal court related to the al-Qaeda plot involving Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay.

The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Assistant Attorney General for the National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department.

According to the indictment, other court filings, evidence presented to the court in support of Naseer’s extradition, and evidence from the trials of Adis Medunjanin and Mohammed Wali Zazi in the Eastern District of New York, in approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City.1 The al- Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad” in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on February 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.

The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” was also communicating with Naseer. Naseer, like Zazi, was in Peshawar, Pakistan in November 2008, according to the court filings. After returning to the United Kingdom, Naseer sent messages back and forth to the same email account that “Ahmad” was using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, the indictment and court filings allege. In the messages, Naseer used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, Naseer, again using coded language, told “Ahmad” that he was planning a large “wedding” for numerous guests between April 15 and 20, 2009, and that “Ahmad” should be ready. Notably, evidence at Medunjanin’s trial established that “Ahmad” and Zazi had agreed on a similar code to mean the New York City attack was ready to be executed, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009.

On April 8, 2009, Naseer and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes, where they found large quantities of flour and oil, as well as surveillance photographs of public areas in Manchester and maps of Manchester’s city center posted on the wall, with one of the locations from the surveillance photographs highlighted.

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

Naseer is charged with providing and conspiring to provide material support to al-Qaeda and conspiracy to use a destructive device in relation to the U.K. branch of the plot. He faces a maximum sentence of life imprisonment if convicted of all counts.

“The defendant is one of a long line of terrorist suspects extradited to these shores and this courthouse to face justice for their efforts to wreak havoc here and overseas. As alleged, this defendant was instrumental in one tentacle of an international plot that reached to New York, Norway, and the United Kingdom,” said United States Attorney Lynch. “Those responsible for terrorist plots or attacks will be investigated, charged, and prosecuted, whether they are arrested here in the United States, or abroad.” Ms. Lynch also expressed her gratitude to the law enforcement personnel, both domestic and foreign, who took part in the investigation.

“Today’s extradition underscores the importance of international cooperation in disrupting transnational terrorism threats. I thank our counterparts in the United Kingdom for their assistance in this investigation as well as the many U.S. agents, analysts, and prosecutors who helped bring about these charges,” said Assistant Attorney General for National Security Monaco.

FBI Assistant Director-in-Charge Venizelos said, “The extradition of Naseer demonstrates not only the long arm of American justice. It also shows the determination and commitment of governments around the world to work in common cause to thwart alleged international terrorist conspiracies. Plotting in one country to do harm in another does not provide cover for terrorists. It makes them targets in two countries.”

Police Commissioner Kelly said, “Here’s to our special relationship. New York and London, and now Manchester, share a history of terrorism and outstanding law enforcement cooperation in bringing those allegedly responsible to justice, as this case illustrates. Al-Qaeda has attacked on both sides of the Atlantic, and it has been brought to justice on both shores too.”

The government’s case is being prosecuted by David Bitkower, James P. Loonam, Berit W. Berger, and Zainab Ahmad of the U.S. Attorney’s Office for the Eastern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Assistance was also provided by Lystra Blake, Associate Director of the Office of International Affairs.

The Defendant:

ABID NASEER
Age: 26

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