Eastern District of New York

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Edward Gallashaw, Acting Inspector in Charge, United States Postal Inspection Service (USPIS) announced today that the United States has obtained a temporary restraining order barring two logistics companies, one based in Queens, New York, and the other in Los Angeles, California, and their owner from using the United States Postal Service (USPS) to ship packages containing counterfeit postage.

On May 15, 2025, the United States filed a civil complaint in federal court in Brooklyn against the two shipping logistics companies and the companies’ owner (collectively Defendants), alleging that Defendants have committed mail fraud and conspired to commit mail fraud for years by shipping thousands of parcels through USPS using counterfeit USPS postage labels. Defendants, YDH Express, Inc., YDH Int’l Inc., and their owner/operator Yizhao Hou, also known as Harvey Hou, receive these parcels from their customers, which are companies located in China.  The complaint seeks injunctive relief under the Anti-Fraud Injunction Act, as well as additional relief to remedy financial losses incurred by USPS.  The United States also sought a temporary restraining order immediately barring Defendants from using USPS to mail parcels pending further order of the Court.  On May 16, 2025, United States District Judge Natasha C. Merle entered a temporary restraining order against Defendants.

“The Postal Service provides essential services to Americans, and we will not tolerate attempts by unscrupulous overseas businesses using fake postage to unlawfully deprive USPS of revenue it is entitled to,” stated United States Attorney Nocella.  “My Office is working diligently with our partners at the United States Postal Inspection Service to stop this ongoing fraud against the Postal Service.”

Mr. Nocella expressed his appreciation to the United States Postal Inspection Service and Customs and Border Patrol (CBP) for their work on the case.

“Hou allegedly cared only about making a profit at the expense of the USPS.  The U.S. Postal Inspection Service, along with Homeland Security Investigations and U.S. Customs and Border Protection, have a shared commitment in identifying individuals like Yizhou Hou who allegedly facilitate and perpetuate the use of fraudulent or counterfeit postage,” stated USPIS Acting Inspector in Charge of the New York Division Gallashaw.  “Postal Inspectors will use all of our resources to put an end to the use of counterfeit postage and hold accountable all who seek to defraud the USPS.  We will fulfill our mission to strengthen the American public’s trust in the U.S. Mail.”

As alleged in the complaint, Defendants have conspired to ship thousands of parcels bearing counterfeit USPS labels, which they receive in bulk from their customers, sellers of goods located in China.  Defendants have allegedly deprived USPS of substantial revenue through their use of counterfeit postage labels.  The complaint alleges that Defendants have committed mail fraud and conspiracy to commit mail fraud, and violated the False Claims Act (FCA), as a result of their misconduct.  The FCA allows the government to seek treble damages and penalties against those who defraud the United States, including by knowingly failing to pay obligations to the government.  The complaint seeks injunctive relief, damages, and penalties.

As set forth in the May 16, 2025 temporary restraining order (TRO), the Court found that there is “probable cause to believe that defendants are still engaged in the ongoing commission of mail fraud, and are still engaged in the ongoing conspiracy to commit mail fraud,” and that USPS would suffer “irreparable harm” absent a TRO because it “would continue to be defrauded by defendants’ use of counterfeit or invalid postage labels, or both.”

You can report mail theft, identity theft, fraud, or other crimes involving the U.S. mail by calling the Postal Inspection Service’s national toll-free number: 877-876-2455 or at http://uspis.gov/report.

The government’s case is being handled by the Office’s Civil Division.  Assistant United States  Attorneys David A. Cooper and Logan J. Gowdicott are in charge of the case, with assistance from Paralegal Specialist Loan Nguyen.

E.D.N.Y. Docket No. 25-CV-2719 (NCM)

Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Gary DSilva, also known as Pankaj DSilva, Jonathan Velazquez, Luis A. Camarena, and Pradeep Nigam with conspiracy to commit wire fraud and bribery, as well as substantive counts of wire fraud and federal-program bribery; DSilva and Velazquez are also charged with money laundering conspiracies.  The new charges arise from a scheme in which DSilva and Velazquez, employees of a Brooklyn-based non-profit organization (the Organization), received kickbacks from Nigam in exchange for steering business to a vendor owned by Nigam (Vendor 2).  DSilva, Velazquez, and Camarena had been charged in a previous indictment that was unsealed on November 21, 2024, for their roles in a similar scheme in which DSilva and Velazquez received kickbacks from Camarena in return for steering business to a vendor owned by Camarena (Vendor 1).  Nigam surrendered to authorities earlier today and will be arraigned this afternoon before the United States Magistrate Judge Marcia M. Henry.  DSilva, Velazquez, and Camarena will be arraigned at a later date.

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

“As alleged, DSilva, Velazsquez, and Nigam set up a secret side deal with Nigam and awarded Nigam business contracts worth millions of dollars that provided essential information-technology services to homeless shelters in return for illegal kickbacks,” stated United States Attorney Nocella.  “Today’s indictment underscores our strong commitment to prosecuting all illegal fraud and contract steering schemes.”

DOI Commissioner Jocelyn E. Strauber stated, “These defendants, employees of a City-funded nonprofit and principals of the nonprofit’s subcontractors, engaged in kickback schemes in return for millions of dollars in contracts, as charged. These funds were intended to provide technology services in homeless shelters operated by the non-profit, instead the defendants exploited these arrangements to benefit themselves.  I thank the U.S. Attorney’s Office for the Eastern District of New York and the New York Office of the FBI for their continued partnership and commitment to protect public funds.”

“These four defendants allegedly crafted a kickback scheme to enrich themselves by discreetly contracting a co-conspirator’s company to install security systems in several New York City homeless shelters,” stated FBI Assistant Director in Charge Raia.  “This alleged conspiracy prioritized personal interests and established an unfair financial advantage to perpetuate the cycle of unlawful payments flowing into the defendants’ bank accounts.  The FBI remains committed to investigating any instance of quid pro quo, especially when it impacts critical services to our city’s vulnerable communities.”

As alleged in the superseding indictment, DSilva and Velazquez were employed in the Management Information Systems department of the Organization, which supplied numerous services to indigent New Yorkers, including administering multiple homeless shelters.  As part of their work for the Organization, DSilva and Velazquez were responsible for soliciting vendors to complete various projects involving information technology.

The superseding indictment details two schemes in which DSilva and Velazquez received kickbacks for steering contracts for the Organization to specific vendors.  In the first scheme, which was also detailed in the original indictment, DSilva and Velazquez received approximately $500,000 in kickbacks from Camarena in return for steering contracts worth approximately $1.6 million to Vendor 1, Camarena’s company, for installing and/or replacing security cameras at the Organization’s homeless shelters.  In the second scheme, DSilva and Velazquez took payments from Nigam in exchange for the approval of payments from the Organization to Vendor 2, Nigam’s company. The payments from the Organization were for the installation and maintenance of telephone, Internet, and network services at homeless shelters operated by the Organization.  DSilva, Velazquez, and Nigam had a secret deal whereby they agreed to split the profits Vendor 2 made on the payments from the Organization three ways.  DSilva and Velazquez had control over how much Nigam charged the Organization.  In one instance, DSilva, using a personal email account, sent to Nigam an invoice for Vendor 2 to submit to the Organization—DSilva’s employer.  As part of the conspiracy, Nigam regularly sent money to companies in the names of relatives of DSilva and Velazquez.  In total, the Organization paid almost $2 million to Vendor 2 during the operation of the scheme, and Nigam paid kickbacks exceeding $700,000 to DSilva and Velazquez.        

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

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Laura Zuckerwise and Turner Buford are in charge of the prosecution, with the assistance of paralegal specialist Kavya Kannan.

The Defendants:

GARY DSILVA (also known as “Pankaj DSilva”)
Age: 46
Manalapan, NJ

JONATHAN VELAZQUEZ
Age: 54
Massapequa Park, NY

LUIS A. CAMARENA
Age: 57
Bronx, NY

PRADEEP NIGAM
Age: 63
Edison, NJ

E.D.N.Y. Docket No. 24-CR-471 (S-1) (HG)

Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering.  The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called “SafeMoon,” issued by their company SafeMoon LLC.  As alleged, the defendant agreed with his co-conspirators to lie to SafeMoon investors about whether SafeMoon executives could access the liquidity pool and whether they were using the assets from the liquidity pool for their personal benefit.  As SafeMoon’s market capitalization grew to more than $8 billion, the defendant fraudulently diverted and misappropriated millions of dollars’ worth of  liquidity from the SafeMoon liquidity pool for their personal benefit.  The verdict followed a 12-day trial before United States District Judge Eric R. Komitee.  When sentenced, Karony faces up to 45 years in prison.  The jury also issued a verdict to forfeit one residential property and the proceeds from the sale of another residential property, amounting to approximately $2 million.

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

“As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars,” stated United States Attorney Nocella.  “Karony used his scheme to purchase multiple homes, sports cars, custom trucks, and other luxury goods.  Today’s guilty verdict should serve as a warning to all would-be fraudsters that my Office will vigorously prosecute individuals like the defendant who victimize digital asset investors and undermine investor confidence in digital assets markets, thereby threatening the stability and growth of these emerging technologies.”

Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission for its work on the case. 

“Braden Karony, the CEO of SafeMoon, exploited his company’s digital portfolio with fictional success stories and stole millions of dollars in crypto-assets to finance luxury purchases,” stated FBI Assistant Director in Charge Raia.  “Along with his co-conspirators, Karony violated his clients’ trust and wallets while attempting to conceal his misconduct through discreet transactions.  May today’s conviction emphasize the FBI’s commitment to securing all markets and protecting the American people from individuals who abuse their position to satisfy personal greed.”

“Braden Karony misled investors; intentionally diverted and misappropriated millions in cryptocurrency for his personal benefit; and lined the driveways of his million dollar homes with luxury cars.  While the name of his company is SafeMoon, there was nothing safe about this investment that was just a front for theft.  By following the money with complex cryptocurrency tracing, IRS-CI New York’s Cyber and J5 groups worked with our investigative partners to see that this conman is held accountable for his greedy acts,” stated IRS-CI New York Special Agent in Charge Chavis.  “The Joint Chiefs of Global Tax Enforcement (J5) is a global partnership that works together to gather information, share intelligence, and conduct coordinated operations against transnational financial crimes.  The J5 includes the Australian Taxation Office, the Canada Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty’s Revenue and Customs from the U.K. and IRS-CI from the U.S.”

“Steered by his selfish desires and insatiable greed, Braden John Karony treated millions of dollars in investors’ funds as his own personal bank account,” stated HSI New York Acting Special Agent in Charge McCormack.  “The defendant will soon be trading his sprawling real estate and luxury vehicles for a jail cell within the four walls of a federal penitentiary.  As reflected by today’s conviction, whether it involves fiat or crypto, HSI New York’s El Dorado Task Force will relentlessly pursue individuals intent on exploiting investors and the American financial system for their own gain.”

Background on SafeMoon

As proven at trial, SafeMoon tokens were digital assets first issued in March 2021 by SafeMoon LLC on a public blockchain.  Through the operation of SafeMoon’s smart contract, every transaction in SafeMoon was automatically subject to a 10% tax, meaning, for example, that if a holder of SafeMoon transferred 10 SafeMoon to another user, 1 SafeMoon would automatically be retained from the transfer as a tax and the remaining 9 SafeMoon would be received by the other party.  As marketed to SafeMoon investors, the proceeds of SafeMoon’s 10% tax were split into two 5% tranches, the proceeds of which were supposed to benefit holders of SafeMoon in specific ways.  The first 5% tranche of the tax proceeds would be “reflected” back to, and distributed among, all SafeMoon holders in proportion to their current SafeMoon holdings and thereby increase the total quantity of SafeMoon held by every SafeMoon investor automatically.  The remaining 5% tranche of SafeMoon tax proceeds would be deposited into designated SafeMoon liquidity pools.  The larger the SafeMoon liquidity pool, the greater the liquidity in the market for SafeMoon.  In the months after its launch in March 2021, SafeMoon grew to have millions of holders and a market capitalization of more than $8 billion.

The Defendants’ Fraudulent Scheme

Karony and his co-conspirators misrepresented various material aspects of the SafeMoon offering to investors.  Such misrepresentations included that SafeMoon relied on “locked” liquidity pools that would automatically increase in size due to a 10% tax imposed on every SafeMoon transaction; that the “locked” SafeMoon liquidity pool prevented the defendants and other insiders at SafeMoon from being able to “rug pull”—a type of crypto fraud— SafeMoon investors by removing liquidity from the SafeMoon liquidity pool; that tokens in the liquidity pool would only be used for limited pre-defined business purposes, not personal enrichment; that the defendants would manually add token pairs to the SafeMoon liquidity pool when transactions of SafeMoon occurred on specific centralized exchanges; and that the developers were not and had not been holding and trading SafeMoon for their benefit.

In reality, Karony and his co-conspirators retained access to the SafeMoon liquidity pools and used that access to intentionally divert and misappropriate millions of dollars’ worth of tokens for their personal benefit.  In addition, although they publicly denied that they personally held or traded SafeMoon, they repeatedly bought and sold SafeMoon, sometimes at the height of SafeMoon market price, which generated millions of dollars in profits.  Karony and his co-conspirators masked their movement of the fraudulent proceeds via numerous private un-hosted crypto wallet addresses, complex transaction routing, and pseudonymous centralized exchange accounts.  Karony acquired over $9 million in crypto assets from the scheme and used some of the proceeds to purchase luxury vehicles and real estate, including a $2.2 million home in Utah, additional homes in Utah and Kansas, a $277,000 Audi R8 sports car, another Audi R8, a Tesla, and custom Ford F-550 and Jeep Gladiator pickup trucks.

Co-conspirator Thomas Smith previously pleaded guilty and is awaiting sentencing. Co-conspirator Kyle Nagy remains at large. 

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorneys Dana Rehnquist, Sara K. Winik, and Jessica K. Weigel are in charge of the prosecution, with assistance from Paralegal Specialists Asher Martin-Rosenthal and Madison Bates. Assistant United States Attorney Laura Mantell is handling forfeiture matters.

The Defendant:

BRADEN JOHN KARONY
29
Provo, Utah

E.D.N.Y. Docket No. 23-CR-433 (EK)

Earlier today, in federal court in Brooklyn, Bryan Abraham was sentenced by United States District Judge William F. Kuntz, II to 60 months in prison for aggravated identity theft and conspiring to commit access device fraud. Judge Kuntz also ordered Abraham to forfeit $579,862 and to pay restitution in that same amount.  Abraham pleaded guilty in January 2023.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Edward Gallashaw, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), announced the sentence.

“Today’s sentence is a reminder that there is no free pass for fraudsters like the defendant who shamefully stole public funds intended to alleviate the suffering of New Yorkers during the height of the COVID-19 pandemic,” stated United States Attorney Nocella.  “My Office will continue to work with our law enforcement partners to unravel these criminal schemes and hold the perpetrators accountable for their greed.”

Mr. Nocella expressed his appreciation to the New York City Police Department and the U.S. Department of Labor, Office of the Inspector General, for their assistance on the case.

“Postal Inspectors have worked aggressively to investigate all types of pandemic related frauds occurring via the U.S. Mail,” said Ed Gallashaw, Acting Inspector in Charge, U.S. Postal Inspection Service, New York Division.  “These individuals unfortunately thought they could exploit government unemployment benefits and get away with it and will now rightly serve the consequence for their actions."

As set forth in court filings, between June 2020 and April 2021, Abraham and his co-conspirators capitalized on the relaxed requirements for claiming unemployment benefits during the COVID-19 pandemic to defraud the New York State Department of Labor (NYSDOL) out of more than $1.75 million in unemployment benefits in the names of approximately 250 victims.  Abraham was personally responsible for fraudulent claims in the names of at least 78 victims, for which benefits in excess of $579,862 were paid.

To execute the scheme, Abraham and his co-conspirators purchased personal identifying information (PII) of victims through end-to-end encrypted applications like Telegram, and then used the victims’ PII to make fraudulent claims for unemployment benefits.  Funds from the fraudulent claims were deposited into bank accounts they controlled or were provided via reloadable KeyBank debit cards, which they had mailed to addresses they could access.  The defendant and his co-conspirators regularly traveled to ATMs together to withdraw thousands of dollars from the KeyBank cards.  They flaunted their ill-gotten gains on social media—posing with stacks of cash, designer clothing, jewelry, and luxury cars.  They communicated on Telegram concerning the logistics of the scheme, including where to purchase victim PII, the logistics of withdrawing fraudulent funds, and the luxury items and trips they were purchasing with their fraudulently obtained wealth.

Abraham was charged in the case alongside co-defendants Armani Miller, Seth Golding, Gianni Stewart, Andrew Ruddock, Angel Cabrera and Carlos Vazquez.  Miller and Golding were both sentenced to 57 months’ imprisonment for conspiring to commit access device fraud, and Stewart was sentenced to 24 months’ imprisonment for conspiring to commit access device fraud.  Ruddock was sentenced to probation for operating an unlicensed money transmitting business, and specifically for selling cryptocurrency to his co-conspirators.  Cabrera pleaded guilty to conspiring to commit access device fraud and awaits sentencing. Vazquez pleaded guilty to aggravated identity theft and conspiring to commit access device fraud and also awaits sentencing.   

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorney Tara B. McGrath is in charge of the prosecution with assistance from Assistant United States Attorney Brendan G. King of the Office’s Asset Recovery Section.

The Defendant:

BRYAN ABRAHAM
Age:  22
Brooklyn, New York

E.D.N.Y. Docket No. 21-CR-411 (WFK)

Earlier today, at the federal courthouse in Central Islip, Carmine Simpson was sentenced by United States District Judge Gary R. Brown to 23 years in prison for sexually exploiting minors online.  On March 24, 2023, the defendant pleaded guilty to one count of sexually exploiting a minor.  The charges stem from Simpson’s extensive online conduct in 2020, while he was a New York City Police Department (NYPD) officer, which includes engaging numerous children in sexual conversations, enticing and manipulating them into sending him nude images and videos, routinely requesting them to engage in live chat sessions on FaceTime and Snapchat, directing them to physically harm themselves, and asking them to write degrading sexual phrases on their nude bodies.  Simpson resigned from the NYPD in 2022.

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

“The defendant’s repeated sexual solicitation and exploitation of minors is reprehensible,” stated United States Attorney Nocella.  “That he was a law enforcement officer at the time he committed these crimes makes his conduct even more horrific.  My Office will continue to work to protect vulnerable children from predators like the defendant.”

“Carmine Simpson betrayed his badge by preying upon minors for twisted sexual gratification. Simpson repeatedly prowled online for minor victims before coercing them to provide sexually explicit and degrading content,” stated FBI Assistant Director in Charge Raia. “The FBI will never tolerate any individual who exploits children, especially those with sworn duties to protect them.”

Simpson, then a police officer with the NYPD, targeted vulnerable children on Twitter for the purpose of having them create and send him sexually exploitative photos and videos of themselves.  Simpson had multiple Twitter profiles and pretended to be a 17-year-old boy to entice minors into engaging with him, even using a filter to alter his own appearance so that he looked younger.  Simpson then communicated with numerous minors, including some as young as 13-years-old.

Law enforcement first learned about the defendant’s conduct in December 2020, after the mother of John Doe 2, a 13-year-old transgender male, filed a police report after finding chat communications with the defendant on her child’s computer.  In those messages, the defendant stated, “Do you take good nudes?” and “You take good nudes? Prove it.”  He gave instructions to write words on the victim’s body with a marker and commented: “How many words do you think we can add to your body?”  As part of that conversation, John Doe 2 sent the defendant at least two sexually explicit videos.   

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

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

The Defendant:

CARMINE SIMPSON
Age: 30
Holbrook, New York

E.D.N.Y. Docket No. 21-CR-97 (GRB)

Earlier today, in federal court in Brooklyn, Marcus Ricketts was sentenced by United States District Judge LaShann DeArcy Hall to 25 years in prison for causing death through use of a firearm.  Ricketts pleaded guilty to the charge on April 4, 2024.

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

“My Office continues to work tirelessly to dismantle violent robbery crews that wreak havoc on communities throughout New York City, such as the one the defendant led,” stated United States Attorney Nocella.  “Today’s sentencing reaffirms that brazen and incorrigible violence will be severely punished.  It also reconfirms our commitment to prosecuting defendants who are here illegally and commit violent acts to the fullest extent of the law.”

Mr. Nocella expressed his appreciation to the New York Field Office of the FBI.

“For years, Marcus Ricketts led a violent robbery crew targeting victims across the city with firearms and threats of death, which was followed through on one occasion,” stated FBI Assistant Director in Charge Raia.  “Despite a previous conviction and deportation, Ricketts continued to display little concern for the law with repeated attempts to unlawfully enrich himself and his cohorts.  May today’s sentencing reflect the FBI’s steadfast commitment to crush violent crime and deter chronic recidivists from entering this country illegally determined to wreak criminal havoc in our communities.

As set forth in the government’s sentencing memorandum, prior court filings, and statements during the sentencing, Ricketts led an armed robbery crew that targeted marijuana dealers throughout New York City.  In addition to Ricketts, the crew included co-defendants Mark Goulbourne, Jonathan Goulbourne, Juvanie Crossgill, Chevonne Williams, Amari Webber, and Romeo Jonas.

Between June 2020 and December 2021, after illegally returning to the United States following his deportation, Ricketts, a Jamaican citizen, perpetrated three armed robberies with the crew, one of which resulted in a shootout and a murder.  Each time, the crew posed as marijuana dealers, arranged to meet the marijuana sellers for a purported purchase, and then robbed the dealers at gunpoint.

In July 2020, Ricketts orchestrated the robbery of a victim selling marijuana from his store in the Bronx (Victim 1).  Victim 1 was held at gunpoint while Ricketts stole approximately 40 pounds of marijuana.

In October 2021, Ricketts orchestrated the robbery of a victim selling marijuana from his store in Staten Island (Victim 2).  Victim 2 and his younger brother were ordered to the floor at gunpoint and threatened with death.  The crew stole approximately 100 pounds of marijuana and Victim 2’s car.

In December 2021, Ricketts and others orchestrated the robbery of a victim from Poughkeepsie (Victim 3) and his friend (Victim 4) who were selling marijuana.  Ricketts and the crew met the victims at an Airbnb in Brighton Beach, posing as buyers for the approximately 165 pounds of marijuana brought into the Airbnb for the sale.  While Ricketts, Mark Goulbourne, and others were inside the Airbnb with Victim 3 and Victim 4, a shootout erupted, killing Victim 3 and wounding Victim 4.

Ricketts and Mark Goulbourne fled the Airbnb carrying guns, and Ricketts also carried a large duffle bag of marijuana.  On a nearby street, Ricketts stole a Citi Bike from a passerby, which he attempted unsuccessfully to transport the marijuana.  Ricketts was then picked up in Jonathan Goulbourne’s car, and they fled the scene.  In the hours that followed, at Ricketts’s instruction, Crossgill returned to the scene several times to locate evidence the crew had left behind.

Notably, this was not Ricketts’s first conviction for armed robbery.  In August 2014, Ricketts organized a violent robbery of an individual in the Bronx, for which he was convicted and sentenced in the United States District Court for the Southern District of New York.  On February 28, 2019, after serving his sentence, Ricketts was deported to Jamaica.  By June 2020, he had illegally returned to the United States and was again orchestrating violent robberies in New York City.

Previously, Webber and Jonas pled guilty to Hobbs Act robbery and conspiracy to commit the same and were sentenced to 108 months and 144 months’ imprisonment, respectively.  Jonathan Goulbourne pled guilty to obstruction of justice and was sentenced to 81 months’ imprisonment.  Crossgill and Williams both pled guilty and await sentencing.

Mark Goulbourne has pled not guilty and is scheduled to start trial on June 16, 2025.  The charges against Mark Goulbourne are merely allegations and he is presumed innocent unless and until proven guilty.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States  Attorneys Tara B. McGrath, Chand W. Edwards-Balfour, Rebecca M. Schuman, and Francisco J. Navarro are in charge of the prosecution.

The Defendant:

MARCUS RICKETTS
Age:  48
Jamaica

E.D.N.Y. Docket No. 22-CR-106 (LDH)

Earlier today, in federal court in Brooklyn, David Gentile, the founder and former Chief Executive Officer (CEO) of GPB Capital, and Jeffry Schneider, the former CEO of Ascendant Capital, were sentenced by United States District Judge Rachel P. Kovner to seven years in prison and six years in prison, respectively, for their roles in a multi-year scheme to defraud more than 10,000 investors by misrepresenting the performance of three GPB Capital private equity funds and the source of funds used to make monthly distribution payments to investors.  Collectively, the GPB funds raised approximately $1.6 billion from investors.  Both defendants were convicted by a federal jury in August 2024 following an eight-week trial of securities fraud, securities fraud conspiracy, and wire fraud conspiracy; Gentile was also convicted of wire fraud.  Additional penalties of forfeiture and restitution will be imposed at a later date.

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

“The defendants built GPB Capital on a foundation of lies,” stated United States Attorney Nocella.  “They raised approximately $1.6 billion from individual investors based on false promises of generating investment returns from the profits of portfolio companies, all while using investor capital to pay distributions and create a false appearance of success.  The sentences imposed today are well deserved and should serve as a warning to would-be fraudsters that seeking to get rich by taking advantage of investors gets you only a one-way ticket to jail.  My Office is committed to protecting the investing public and the integrity of the financial markets.”

Mr. Nocella expressed his appreciation to the Securities and Exchange Commission, the New York City Business Integrity Commission, and the New York City Police Department for their valuable assistance with the case.

"For years, David Gentile and Jeffry Schneider wove a web of lies to steal more than one billion dollars from investors through empty promises of guaranteed profits and unlawfully rerouting funds to provide an illusion of success. The defendants abused their high-ranking positions within their company to exploit the trust of their investors and directly manipulate payments to perpetuate this scheme. May today’s sentencing deter anyone who seeks to greedily profit off their clients through deceitful practices," stated FBI Assistant Director in Charge Raia.

As proven at trial, GPB Capital, founded by Gentile in 2013, was a New York-based registered investment advisor.  Ascendant Capital, a marketing firm founded by Schneider, was the exclusive placement agent for GPB.  GPB Capital’s funds offered private equity-style investments to individual investors.  The GPB funds were presented to investors as “income-producing” private equity, meaning that investors would receive monthly distributions from cash flow generated by portfolio companies owned by the GPB funds, in addition to a return on their investment at the end of the fund.  In total, GPB and Ascendant Capital raised approximately $1.6 billion for three funds, GPB Holdings I, LP (Holdings I), GPB Holdings II, LP (Holdings II), and GPB Automotive Portfolio, LP (GPB AP) and together with Holdings I and Holdings II, (the GPB Funds).  Gentile and Schneider worked closely on the operation and marketing of the GPB Funds and were personally involved in pitching broker-dealers and registered investment advisors.  They were also involved in investment decisions at GPB Capital and in the day-to-day operations of the GPB Funds.

Between approximately 2015 and 2018, the defendants defrauded investors and prospective investors in the GPB Funds through misrepresentations about the performance of the GPB Funds and the source of the investors’ monthly distributions. 

In 2015 and 2016, the defendants, with their co-conspirators, used fraudulent, back-dated “performance guarantees” to artificially inflate the income of Holdings I and GPB AP.  The performance guarantees were executed by GPB operating partner Jeffrey Lash for certain dealerships owned by the funds and falsely represented that Lash had agreed to cover a shortfall in profits at the dealerships.  In or about March 2015, at the direction of the defendants, Lash executed two performance guarantees falsely representing that he had agreed to cover a shortfall in profits at two dealerships owned by Holdings I for audit year 2014.  In April 2016, the defendants and Lash executed another fraudulent performance guarantee for a dealership owned by GPB AP for audit year 2015.  Gentile then routed funds from another GPB-owned fund through Lash’s accounts to create the appearance that the performance guarantee had been paid. Holdings I and GPB AP booked the fraudulent performance guarantees in their audited financial statements, artificially inflating the funds’ returns as presented to investors for 2014 and 2015 respectively.  After fraudulently inflating their audited financial statements, the GPB Funds raised approximately $1 billion from investors.

Between approximately August 2015 and December 2018, the defendants also misrepresented the source of the monthly distributions paid to investors.  Specifically, the defendants represented to investors and prospective investors that GPB would pay monthly distributions from income generated by portfolio companies when in fact they used investor capital to cover a significant share of the distributions paid by the GPB Funds.  At the direction of the defendants, the GPB Funds used approximately $100 million in investor capital to cover distributions to investors and maintain the Funds’ distribution rates.   

Lash, the defendants’ co-conspirator, pleaded guilty to wire fraud in 2023 and will be sentenced at a later date.

The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jessica K. Weigel, Nick M. Axelrod, and Kate Mathews are in charge of the prosecution with assistance from Paralegal Specialists Madison Bates and Allison Henry.  Assistant United States Attorney Claire Kedeshian is handling forfeiture matters.

The Defendants:

DAVID GENTILE
Age:  58
Manhasset, Long Island

JEFFRY SCHNEIDER
Age:  56
Austin, Texas

E.D.N.Y. Docket No. 21-CR-54 (RPK)

Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Michael Rutledge on all counts of a superseding indictment charging him with Hobbs Act robbery conspiracy, Hobbs Act robbery, and discharging a firearm during a crime of violence.  The charges arose from a robbery committed at gunpoint by Rutledge and two co-conspirators on February 10, 2023.  The verdict followed a five-day trial before United States District Judge Frederic Block.  When sentenced, Rutledge faces a mandatory minimum sentence of 10 years in prison and up to life in prison.

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

“Rutledge and his co-conspirators meticulously planned a violent robbery in a neighborhood convenience store in Clinton Hill, during which a customer was brutally pistol-whipped and shot, and a hard-working store clerk was held at knifepoint while thieves lined their pockets with thousands of dollars in cash,” stated United States Attorney Nocella.  “Thanks to exceptional investigative work by the ATF and the NYPD, the defendant was identified, apprehended, and rightly convicted today.”

This conviction is a testament to the strength of New York City’s law enforcement partnerships and our shared commitment to protecting the public from violent gun crime,” stated ATF Special Agent in Charge Miller.  “The brazen and violent acts committed in this case are unacceptable. Thanks to the tireless work of the ATF/NYPD SPARTA Group (Strategic Pattern Armed Robbery Technical Apprehension), NYPD 88th Precinct Detective Squad and our partners at the U.S. Attorney’s Office for the Eastern District, this defendant has been held accountable and will face the consequences of his actions. We will remain relentless in our efforts to identify, investigate, and stop those who use illegal firearms to terrorize people in our communities.”

“Michael Rutledge didn’t just act as a getaway driver—he aided and abetted violent criminals who held a store clerk at knifepoint, stole thousands of dollars from his business, and shot an unassuming victim in a targeted attack,” stated NYPD Commissioner  Tisch.  “Today’s guilty verdict holds him accountable for his role in this senseless violence and his attempt to evade justice. We remain committed to working with all of our law enforcement partners to ensure that those who threaten the safety of our communities face the full consequences of their actions.”

As proven at trial, Rutledge drove co-defendant Angel Gomez and their other co-conspirator (Co-Conspirator) from the Bronx to Brooklyn’s Clinton Hill neighborhood to execute their plan to rob a convenience store on Myrtle Avenue.  Rutledge parked their vehicle while Gomez and Co-Conspirator walked to the store.  Inside, Gomez displayed a gun and Co-Conspirator pulled out a knife, menacing the store worker.  Co-Conspirator then rifled through two cash registers, removing more than $4,000 in cash. Meanwhile, Gomez pointed his gun at a customer, struck the customer in the head repeatedly with the gun, and shot him in the hip.  The robbery duo fled back to the meet-up location where Rutledge was waiting to drive them away.

Rutledge was apprehended on June 21, 2023 after law enforcement executed a search warrant at an address in the Bronx where he was staying and where he fled after completing the robbery.  They recovered the clothing he wore on the night of the robbery.

On February 12, 2025, Gomez pleaded guilty to Hobbs Act Robbery and brandishing a firearm in furtherance of a crime of violence.  Gomez is awaiting sentencing.  Co-Conspirator remains at large.

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorneys James R. Simmons and Vincent M. Chiappini are in charge of the prosecution with the assistance of Paralegal Specialist Matias Burdman and Criminal Investigations Unit Intelligence Research Specialist Ashley Hinkson.

The Defendant:

MICHAEL RUTLEDGE
Age:  45
Bronx, New York

Defendant Who Previously Pleaded Guilty:

ANGEL GOMEZ
Age:  45
Bronx, New York

E.D.N.Y. Docket No. 23-CR-269 (S-1) (FB)

Earlier today, at the federal courthouse in Central Islip, Omar Antonio Villalta, also known as “Anticristo,” a member of the Guanacos Lil Cycos Salvatruchas (Guanacos) clique of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, was sentenced by United States District Judge Gary R. Brown to 55 years’ imprisonment. On May 26, 2023, Villalta pleaded guilty to racketeering, including predicate acts of murder and conspiracy to murder rival gang members.  The charges stemmed from his involvement in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos, who were hacked to death in a Central Islip park, and his involvement in the July 3, 2017 murder of Marvin Rivera Guevara, in Charlottsville, Virginia.

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

“My Office and our law enforcement partners have worked endlessly to hold MS-13 accountable for their unspeakable crimes and the harm they’ve caused to countless victims and their loved ones,” stated United States Attorney Nocella.  “This sentencing and others demonstrate our relentless pursuit to dismantle MS-13 and other violent criminal organizations in totality.”

“Omar Antonio Villalta, an MS-13 member, repeatedly played judge, jury, and executioner by unlawfully issuing death sentences to five victims perceived to be disrespectful or rivals to the gang,” stated FBI Assistant Director in Charge Raia.  “These slaughters reflect the gang’s gruesome retributive tactics while demonstrating utter disregard for life with the rapid succession of murders.  May today’s legitimate sentencing reflect the FBI's steadfast commitment to dismantling any gang from plaguing our communities with rampant violence.”

“The torture carried out at the hands of Villalta was inconceivable and sadistic— all because of his devotion to MS-13,” stated Suffolk County Police Commissioner Kevin Catalina.  “His crimes sent shock waves through our communities but thanks to our collaboration with our law enforcement partners, Villalta was apprehended, and we will continue to target violent gang members who are a threat public safety.”

As set forth in the government’s sentencing memorandum, prior court filings, and statements during the sentencing, Llivicura, Lopez, Tigre, and Villalobos were lured to their deaths by Villalta and more than a dozen other members and associates of the MS-13.  Specifically, the victims were led to a community park in Central Islip (the Park) by two female associates of the MS-13, Leniz Escobar and Keyli Gomez, where they were attacked by members and associates of the gang, including Josue Portillo, Freiry Martinez, Alexis Hernandez, Edwin Rodriguez, Sergio Segovia-Pineda, Henry Salmeron, Anderson Sanchez, and others.

The MS-13 members believed the victims to be members of a rival gang and at least two of the victims had offended the MS-13 by posting photos on social media in which they wore certain items and flashed hand signs that signified membership in the MS-13 gang.  After the gang-related photos were brought to their attention by Escobar and Gomez, Villalta and several other MS-13 members formulated and carried out a plan to kill the victims.  On the night of the murders, Villalta and more than a dozen other MS-13 members and associates gathered in the woods adjacent to the Park.   Once there, the members who had been planning the attack, including Villalta, instructed the others to prepare themselves, as the female associates were luring a group of rivals to the Park for them to attack and kill.

Villalta distributed weapons to certain gang members, including knives and machetes, while others took clubs made of tree limbs as the group waited for the victims to arrive.  Meanwhile, Escobar and Gomez met the victims, drove with them to the Park, led them to a predetermined wooded area, and sent the MS-13 members text-messages notifying them of their arrival.  The MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness.  One of the intended victims immediately fled and was able to escape. Llivicura, Lopez, Tigre, and Villalobos were surrounded by the MS-13 members, who attacked them with machetes, knives, an axe, and wooden clubs.  After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods, piled them up, and fled.  The victims’ bodies were discovered the following evening.

Following the murders, Villalta fled to Charlottesville, Virginia, where he connected with local MS-13 members.  He soon began work at a pizzeria with a fellow MS-13 member. Within days of starting work, Villalta reported to other MS-13 members, including the leader of the Guanacos clique, that a co-worker, Marvin Rivera Guevara, had flashed an 18th Street gang hand sign indicating his membership in one of the MS-13’s principal rivals.  Villalta was given authorization to kill the victim and a plan was quickly developed to carry out the murder.  On the evening of July 3, 2017, the MS-13 member who worked at the pizzeria convinced the victim to drive with him to a remote location under the guise of smoking marijuana and meeting women.  Once they arrived at the designated location, Villalta and other MS-13 members forced the victim at gunpoint deeper into the woods where they attacked him with a machete and knives. Villalta and the others then threw the victim’s body off a nearby bridge into the river below.

More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 quadruple murder, including the individuals listed above.  Of these defendants, Villalta is the sixth person to be sentenced.  Josue Portillo was sentenced to 55 years’ imprisonment; Freiry Martinez to 50 years’ imprisonment; Leniz Escobar to 50 years’ imprisonment; Anderson Sanchez to 32 years’ imprisonment; and Alexis Hernandez to 29 years’ imprisonment. The remaining defendants are awaiting sentence.

Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13.  Since 2010, the Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.

This case is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and other transnational criminal organizations, and protect our communities from the perpetrators of violent crime.  Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution, with the assistance of Automated Litigation Support Specialist Michael Compitello.

The Defendant:

OMAR ANTONIO VILLALTA (also known as “Anticristo”)
Age: 29
Central Islip, New York

E.D.N.Y. Docket No. 16-CR-403 (S-8) (GRB)

Joseph Nocella, Jr. has begun serving as Interim United States Attorney for the Eastern District of New York as per the authority of United States Attorney Pamela Bondi. Judge Nocella was sworn in on Monday, May 5, 2025 by United States Chief District Judge Margo K. Brodie.  He will serve as Interim United States Attorney for a period of 120 days or until a Presidential nominee has been confirmed by the Senate.

Judge Nocella stated: “I am deeply honored that President Donald J. Trump and Attorney General Pamela Bondi have appointed me United States Attorney for the Eastern District of New York.  It is especially gratifying to return to the very District where I began my prosecutorial career.  Together with the exemplary staff that has made the Eastern District renown for its excellence, and the dedicated law enforcement agencies that work with the District, I look forward to prosecuting zealously the narcotics-traffickers, gang members, terrorists, human-traffickers and other criminals who have plagued the people of Nassau, Suffolk, Kings, Queens and Richmond Counties.  I would also like to thank Acting United States Attorney John J. Durham for his service and leadership.”

Immediately before his appointment, Judge Nocella, 60, was serving as a Nassau County Family Court Judge, following several years of service as a Nassau County District Judge.  Judge Nocella began his career in public service as the first law clerk to the Honorable Lawrence M. McKenna, United States District Judge for the Southern District of New York.  Judge Nocella continued his career in public service as an Assistant U.S. Attorney in the Criminal Division of the Eastern District of New York, where he served from 1991 to 1995, prosecuting cases involving narcotics-trafficking, organized crime, money laundering and fraud, among others.  Judge Nocella was in private practice in New York and Los Angeles from 1989 to 1990, and from 1995 to 2010.  He also held various public service roles in government on Long Island, including Hempstead Town Attorney, Oyster Bay Town Attorney, Managing Attorney of the Nassau County Attorney’s Office and Counsel to the Nassau County Executive and Legislative Offices.  Judge Nocella graduated from Chaminade High School in 1982, received his bachelor’s degree from Fordham University in 1986 and graduated from Columbia University School of Law in 1989. 

Earlier today, a seven-count second superseding indictment was unsealed in federal court in Brooklyn charging Jalon Lenny Garrett, also known as “Lips,” Marcus Pittman, also known as “Nacho” and “Cheese,” Delonta Pittman, also known as “D Lo,” and Jerome Waters, also known as “the Engineer” and “Rome,” for their alleged roles in the kidnapping, robbery, and shooting of marijuana dealers on July 25, 2024.  Garrett was arrested this morning in Baltimore, Maryland, and will make his initial appearance in the Eastern District of New York at a later date.  Marcus Pittman is also newly charged with being a felon in possession of ammunition for his role in the fatal shooting.  The remaining defendants are already in custody and will be arraigned at a later date.

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

“As alleged, the defendants took part in an interstate armed robbery and kidnapping scheme that resulted in the brutal murder of a targeted victim.  This prosecution underscores the ongoing threat of guns and drugs in our communities,” stated United States Attorney Durham.  “This Office is committed to holding violent offenders accountable and ensuring justice for every victim.”

“These four defendants allegedly traveled across the northeast to brutally kidnap and rob two unsuspecting individuals, ultimately murdering one of the victims,” stated FBI Assistant Director-in-Charge Raia.  “This alleged fatal robbery highlights the volatile and random violence that the illicit drug trade can fuel. With our law enforcement partners, the FBI will continue to dismantle any organization implementing lethal tactics to bolster their criminal lifestyles and jeopardize the safety of our city.”

“These individuals came to New York City armed with guns and zip ties — ready to rob, kidnap, and kill,” stated NYPD Commissioner Tisch.  “It was a deliberate, brutal attack meant to terrorize our communities.  They thought they could hit and run. They were wrong — and anyone else thinking the same should take note.  I’m grateful to our partners in Project Safe Neighborhoods for their shared commitment to protecting New Yorkers.”

According to the superseding indictment and other public court filings, the defendants are members of a Baltimore-based robbery crew that conspired to commit an armed robbery and kidnapping of marijuana dealers in Queens, New York.  On the evening of July 24,2024, the defendants and their co-conspirators executed a violent armed robbery and kidnapping plot that resulted in John Doe #1’s death.  As described below, Garrett robbed and kidnapped John Doe #2 at gunpoint, and Marcus Pittman shot and killed John Doe #1.

Specifically, the defendants drove from Maryland to New York for the purpose of robbing two drug dealers, John Doe #1 and John Doe #2. Once in New York, defendants Jerome Waters and William Barnett met with John Doe #1 and John Doe #2 at a stash house in Queens, New York, under the guise of purchasing marijuana.

At the stash house, Waters and Barnett pulled out their weapons and held up John Doe #1 and John Doe #2 at gunpoint. Next, they let their co-defendants into the stash house to assist in the robbery and kidnapping.  While in the stash house, the defendants and their co-conspirators tied up John Doe #1 and John Doe #2 with zip ties and forced them outside and into the back of a Jeep and a U-Haul van, which were driven by Barnett and Israel.  At the same time, the defendants and their co-conspirators stole approximately 30 pounds of marijuana from the stash house.

The defendants and their co-conspirators drove John Doe #1 and John Doe #2, who were still tied up, through Queens at gunpoint, demanding drugs and money.  Garrett held a gun to John Doe #2 as he was being driven through Queens.  Marcus Pittman shot John Doe #1 to death in the back of the U-Haul van.  When his body was found by first responders, John Doe #1 still had a zip tie binding one of his hands and was surrounded by bags of marijuana.  After the shooting, the defendants fled back to Maryland.

If convicted, defendants Marcus Pittman, Delonta Pittman, and Waters each face mandatory minimum sentences of life imprisonment, and Garrett faces a mandatory minimum of ten years’ imprisonment and a maximum sentence of life imprisonment.  The charges in the superseding indictment are allegations and the defendants are presumed innocent unless and until proven guilty.

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

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States  Attorneys Chand Edwards-Balfour and Adam Amir are in charge of the prosecution, with the assistance of Paralegal Specialist Samuel Ronchetti.

New Defendant:

JALON LENNY GARRETT
Age: 20
Maryland

Previously Charged Defendants:

MARCUS PITTMAN (also known as “Nacho” and “Cheese”)
Age:  30
Maryland

DELONTA PITTMAN (also known as “D Lo”)
Age:  31
Maryland

JEROME WATERS (also known as “the Engineer” and “Rome”)
Age:  23
Maryland

CALVIN ISRAEL
Age:  23
Maryland

WILLIAM BARNETT
Age:  27
Maryland

E.D.N.Y. Docket No. 24-CR-413 (S-2) (KAM)

Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Artem Stryzhak with conspiracy to commit fraud and related activity, including extortion, in connection with computers, for his role in a series of international attacks using the Nefilim ransomware.  Stryzhak, a Ukrainian citizen, was arrested in Spain in June 2024 and extradited to the United States on April 30, 2025.  The arraignment will be held later today before United States Magistrate Judge Robert M. Levy.

John J. Durham, United States Attorney for the Eastern District of New York, and Christopher J.S. Johnson, Special Agent in Charge, Federal Bureau of Investigation, Springfield, Illinois Field Office (FBI), announced the charges.

“As alleged, the defendant was part of an international ransomware scheme in which he conspired to target high-revenue companies in the United States, steal data, and hold data hostage in exchange for payment.  If victims did not pay, the criminals then leaked the data online,” stated United States Attorney Durham.  “The criminals who carry out these malicious cyber-attacks often do so from abroad in the belief that American justice cannot reach them.  The extradition of the defendant and today’s charges prove that they are wrong.”

Mr. Durham also thanked the Justice Department’s Office of International Affairs, Computer Crime and Intellectual Property Section, the FBI’s New York Field Office and the Government of Spain for their crucial assistance in securing the arrest and extradition from Spain of Stryzhak.

“The FBI has long recognized that combating international ransomware schemes requires strong partnerships,” stated FBI Special Agent in Charge Johnson.  “The successful extradition of the defendant is a significant achievement in that ongoing collaboration and it sends a clear message: those who attempt to hide behind international borders to target American citizens will face justice.”

As alleged in the superseding indictment, Nefilim ransomware was deployed to encrypt computer networks in countries around the world, including in the Eastern District of New York.  These ransomware attacks caused millions of dollars in losses, both from ransomware payments and damage to victim computer systems.  The perpetrators of Nefilim typically customized the ransomware executable file for each victim, creating a unique decryption key and customized ransom notes.  If the victims paid the ransom demand, the perpetrators sent the decryption key, enabling the victims to decrypt the computer files locked by the ransomware program.

In June 2021, Nefilim administrators gave Stryzhak access to the Nefilim ransomware code in exchange for 20 percent of his ransom proceeds.  He operated the ransomware through his account on the online Nefilim platform, known as the “panel.”  When he first obtained access to the panel, Stryzhak asked a co‑conspirator whether he should choose a different username from the one he used in other criminal activities in case the panel “gets hacked into by the feds.”

Nefilim’s preferred ransomware targets were companies located in the United States, Canada, or Australia with more than $100 million in annual revenue. Stryzhak and others researched the companies to which they gained unauthorized access, including by using online databases to gather information about the victim companies’ net worth, size, and contact information.  In one exchange with Stryzhak in or about July 2021, a Nefilim administrator encouraged him to target companies in these countries with more than $200 million in annual revenue.

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

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charge, Stryzhak faces up to five years’ imprisonment.

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

The Defendant:

ARTEM ALEKSANDROVYCH STRYZHAK
Age: 35
Barcelona, Spain 

E.D.N.Y. Docket No. 23-CR-324 (PKC)

Earlier today, at the federal court in Central Islip, an indictment was unsealed charging five members and associates of a Long Island-based drug trafficking organization known as “No Budget” with conspiring to distribute cocaine and fentanyl since 2017.  Nicholas Andrade, Julian Hutchins, Prince Jones, Jose Lopez, and Ryan O’Malley engaged in a years’ long drug trafficking operation transporting fentanyl and 137 kilograms of cocaine across the country for distribution primarily in Long Island and Queens, New York.  Andrade, the leader of the organization, is also charged for his role in the March 9, 2023 murder of Jose Manuel Sosa in Bay Shore and the March 10, 2023 shooting in Queens of a potential witness to the murder.  The four defendants arrested today in New York were arraigned before United States Magistrate Judge Steven I. Locke who ordered them detained pending trial.  Hutchins was arrested in Florida and will be arraigned in the Eastern District of New York at a later date.  If convicted of the charges, the defendants face up to life in prison.

John J. Durham, United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent in Charge, Drug Enforcement Administration (DEA), New York Division, announced the arrests and charges.

“As alleged, the defendants participated in the large-scale distribution of deadly narcotics across Long Island and committed crimes of extreme violence to maintain their drug business,” stated United States Attorney Durham.  “My Office and our law enforcement partners will continue working tirelessly to eradicate the scourge of fentanyl and drug-related violence on Long Island and the related harm these dangerous drugs pose to our communities.”

Mr. Durham expressed his appreciation to the Suffolk County Police Department, Suffolk County District Attorney’s Office, New York City Police Department, New York State Police, Queens District Attorney’s Office, and U.S. Bureau of Alcohol, Tobacco and Firearms for their work on the case.

“The indictment against these individuals who ran a drug trafficking organization known as “No Budget” spared no cost at using violence to run their illicit drug distribution of cocaine and fentanyl,” stated DEA Special Agent in Charge Tarentino.  “Thanks to the hard work and determination of the DEA and our law enforcement partners, we were able to remove 137 kilos of cocaine destined for the streets of Long Island.  The DEA remains committed to protecting our communities”

As alleged in court filings, since 2017, the defendants carried out the large scale trafficking and distribution of fentanyl and cocaine on Long Island and maintained a series of stash houses in Queens and on Long Island.  Throughout the investigation, phone records and surveillance regularly captured the defendants meeting with one another and exchanging duffle bags, luggage, or other bags in manners consistent with narcotics trafficking.  As a result of court-authorized searches, law enforcement recovered dozens of kilogram wrappers with cocaine residue, kilogram presses used to reshape narcotics, packaging materials, and quantities of fentanyl and cocaine.  On April 27, 2025, law enforcement intercepted a truck travelling from California to New York containing a shipment of 137 kilograms of cocaine destined for No Budget’s distribution operation.  In total, the investigation revealed that the defendants were responsible for the distribution of over 235 kilograms of cocaine and 20 kilograms of fentanyl. 

In addition to Andrade’s narcotics operation, he directed several violent crimes, including the March 2023 murder of Sosa and the subsequent attempted murder of a potential witness to the murder.  Sosa’s murder was precipitated by a dispute that had escalated over the preceding months between Andrade, Sosa, and another Long Island based drug dealer.  In early March 2023, Andrade and others planned to rob Sosa’s residence.  However, on March 9, 2023, Andrade directed other members of No Budget to kill Sosa.  Later that day, when Sosa was alone in his driveway, the shooter exited a borrowed Audi and shot Sosa multiple times, killing him.  The shooter and getaway driver sped away and the two met up with Andrade.  

The next day, in an effort to cover up No Budget’s involvement in Sosa’s murder, Andrade and the shooter developed a plan to lure John Doe-1—the owner of the Audi used in the murder—to a location in Queens and kill him.  When John Doe-1 arrived at the location, acting at Andrade’s direction, the shooter had a brief conversation with John Doe-1 in the Audi, and upon exiting the Audi, turned and fired into the vehicle, striking John Doe-1 in the head.  John Doe-1 sustained serious injuries but ultimately survived his wounds. 

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. 

This case is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and other transnational criminal organizations, and protect our communities from the perpetrators of violent crime.  Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood.

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

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States  Attorneys James R. Simmons and Michael R. Maffei are in charge of the prosecution.

The Defendants:

NICHOLAS ANDRADE
Age:  37
White Plains, New York

JULIAN HUTCHINS
Age:  43
White Plains, New York

PRINCE JONES
Age:  36
Mineola, New York

JOSE LOPEZ
Age:  43
Elmont, New York

RYAN OMALLEY
Age:  34
Port Jefferson Station, New York

E.D.N.Y. Docket No. 25-CR-147 (GRB)

Earlier today in federal court in Brooklyn, a federal jury convicted Demetrius Johnson on all counts of an indictment charging him with racketeering, narcotics trafficking, and firing a gun in connection with those crimes.  The defendant was an associate of a Brooklyn-based gang known as the “Bully Gang,” a violent street gang that operated in and around Bedford Stuyvesant. Today’s verdict followed a two-week trial before United States District Judge Brian M. Cogan.  When sentenced, the defendant faces a mandatory minimum of twenty years in prison and a maximum sentence of life.

John J. Durham, United States Attorney for the Eastern District of New York; Bryan Miller, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the verdict.

“Today’s verdict holds the defendant accountable for teaming up with a dangerous criminal enterprise that—in the defendant’s own words—was known for money and violence,” stated United States Attorney Durham.  “Along with other members and associates of the Brooklyn-based Bully Gang, the defendant trafficked massive quantities of deadly drugs up and down the East Coast between New York and Maine, where they were sold for substantial profit.  And when conflict arose during the drug operation, the defendant resorted to near-deadly violence, firing almost a dozen shots towards a playground and injuring two victims.  As a result of this investigation, more than 50 members and associates of the Bully Gang have been convicted for their crimes, showing that my Office and our law enforcement partners will not rest until violent criminal enterprises are fully dismantled.”

“These convictions put an end to the reign of terror committed by this gang, shattering the myth that criminals can commit atrocious acts without consequence,” stated ATF Special Agent-in-Charge Miller.  “This is the result of a multi-year investigation involving multiple law enforcement agencies spanning multiple jurisdictions.  I commend our law enforcement partners—NYPD, NYC Department of Investigations, and our law enforcement partners in New Jersey, Massachusetts, Maine, and prosecutors with the U.S. Attorney’s Office—for their relentless efforts in making our communities safer.  In particular, I am proud of the men and women of ATF NY and the ATF/NYPD Joint Firearms Task Force, who fight every day to prevent violence in any form, and are committed to dismantling and disarming violent gangs that plague our streets.  ATF once again reaffirms its unwavering commitment to protecting the public from violent offenders.”

“These convictions represent the culmination of an extensive investigation combined with a vigorous prosecution,” stated NYPD Commissioner Tisch.  “The stakes could not have been higher because these gang members were responsible for an assortment of despicable crimes, including murder, robbery, narcotics trafficking, money laundering, and bribery. A powerful message has been sent: Our city will not tolerate such criminal activity, and the NYPD and our law enforcement partners will keep working tirelessly to identify and investigate these enterprises and bring the individuals involved to justice.” 

Johnson was convicted of participating in the Bully Gang’s years-long narcotics trafficking scheme, in which large quantities of drugs, including cocaine base and heroin, were transported from New York and New Jersey to Maine.  There, members and associates of the gang sold the drugs out of a rotating series of stash houses.  As proven at trial, the conspiracy was responsible for trafficking thousands of kilograms of narcotics and generating hundreds of thousands of dollars in cash.  Johnson personally sold drugs in connection with this Bully Gang racket and recruited other participants to join the scheme.  

One of those participants was a former fellow gang member (“John Doe”), who Johnson enlisted to travel from Brooklyn to Maine to sell drugs.  In 2020, after John Doe returned from Maine, a dispute arose between the two over payment owed to John Doe in connection with the drug scheme.  On July 18, 2020, Johnson attempted to murder John Doe, who was seated on a bench at a Brooklyn playground with his one-year-old child. Johnson hit and injured both John Doe and a bystander.

Since 2020, 53 defendants have been publicly charged with a variety of crimes in connection with this investigation.  To date, 52 of those defendants have pled guilty or been convicted at trial.  One remains a fugitive.            

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Joy Lurinsky, Victor Zapana, and Michael J. Castiglione are in charge of the prosecution with the assistance of Special Agent Rebecca Sidhu and NYPD Detective Brian Hilt from the Office’s Criminal Investigations Unit and Paralegal Specialists Elizabeth Reed and Amara Mayo.

The Defendant: DEMETRIUS JOHNSON (also known as “Q”)
Age:  29
Brooklyn, New York

E.D.N.Y. Docket No.: 20-CR-239 (BMC)

Earlier today, at the federal courthouse in Brooklyn, Yanki Misael Cruz-Mateo, a member of the 18th Street gang, a transnational criminal organization, was sentenced by United States District Judge LaShann DeArcy Hall to 45 years’ imprisonment for racketeering conspiracy in connection with his participation in two murders: the October 25, 2017 murder of 20-year-old Jonathan Figueroa in Saugerties, New York, and the February 2, 2018 murder of 20-year-old Oscar Antonio Blanco-Hernandez in Queens.

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

“Cruz-Mateo committed two horrific murders and boasted about the carnage in video and text messages to instill fear, exact retribution, and promote gang violence,” stated United States Attorney Durham.  “The lengthy sentence imposed today delivers a powerful message that senseless violence carries serious consequences. My Office will continue our tireless efforts to investigate and prosecute violence carried out by the 18th Street and other transnational criminal organizations.  It is my sincere hope that the justice meted out today provides a measure of comfort and closure for the victims’ loved ones.”

Mr. Durham expressed his appreciation to the United States Attorney’s Office for the Northern District of New York, the Ulster County District Attorney’s Office, the Queens County District Attorney’s Office, the New York State Police, the Kingston Police Department, and the New York City Police Department for their assistance on the case.

“Yanki Misael Cruz-Mateo, an 18th Street gang member, lured two victims to their brutal murders as retribution for perceived disloyalty and affiliation with rival organizations,” stated FBI Assistant Director in Charge Raia.  “His actions mirror the gang’s depravity and its lawless prioritization of social status over human life.  May today’s sentencing offer a semblance of justice for the victims’ families and highlight the FBI’s continued determination to eradicate all brutal gang violence plaguing our communities.

Today’s sentence is the latest achievement in a series of prosecutions by this Office and our law enforcement partners of the leaders, members, and associates of 18th Street.  According to court filings and proceedings, 18th Street is a transnational criminal organization and violent street gang with members and associates residing throughout New York State, including Queens and Long Island, elsewhere throughout the United States, including Houston, Texas, and Central America. Members of 18th Street regularly engage in murder, attempted murder, assault, extortion, illegal drug and firearms trafficking, false identification document production, witness tampering, and money laundering.

October 25, 2017 Murder of Jonathan Figueroa

As set forth in court filings, including the government’s sentencing memorandum, in the late evening hours of October 24, 2017, Cruz-Mateo lured and travelled with Figueroa from Queens to Kingston, New York. Upon their arrival in Kingston, they were met by Israel Mediola Flores and other 18th Street members and associates who, into the early morning hours the following day, brought Figueroa to Turkey Point State Forest, brutally stabbed him to death and buried him in a makeshift grave.  Cruz-Mateo ordered the murder to be video-recorded and captured multiple 18th Street members and associates repeatedly stabbing Figueroa, slashing his throat and severing his ear.  In the video, Cruz-Mateo stated that Figueroa was being murdered for “being a rat.” Cruz-Mateo then sent the video to other 18th Street members as a warning.  Figueroa’s body was discovered in February 2018 by the FBI, along with state and local law enforcement authorities, in a five-foot deep grave in Turkey Point State Forest.  The victim had sustained more than 100 stab wounds.

Co-defendants Walter Fernando Alfaro Pineda, Israel Mediola Flores, and Jose Douglas Castellano pleaded guilty to Figueroa’s murder. Mediola Flores was sentenced to 425 months in prison; Pineda and Castellano are awaiting sentencing.

February 2, 2018 Murder of Oscar Antonio Blanco-Hernandez

On February 2, 2018, several gang members killed Blanco-Hernandez because they believed he was a member of the rival MS-13 gang.  Co-defendant Jose Chacon had met Blanco-Hernandez weeks earlier through their mutual employer, a New Jersey-based house painting company.  On the morning of the murder, co-defendant Carolina Cruz and Chacon picked up Blanco-Hernandez at his home in New Jersey under the guise of going to smoke marijuana as friends.  Cruz and Chacon drove Blanco-Hernandez to Queens where they met 18th Street gang members, including Cruz-Mateo and co-defendant Yoni Sierra, who entered the rear passenger seat of Cruz’s car on opposite sides, sandwiching Blanco-Hernandez between them.  Cruz drove Chacon, Cruz-Mateo, Sierra, and their victim about 1.6 miles away to a quiet residential neighborhood.  Cruz-Mateo, Sierra, and Blanco-Hernandez got out of the car and started walking eastbound, while Cruz and Chacon stayed behind with the car.  After walking for a few minutes, Cruz-Mateo drew a .380 caliber semiautomatic handgun and shot Blanco-Hernandez in the back of the head, killing him instantly. Blanco-Hernandez’s body was discovered on a residential street in the Jamaica Hills section of Queens.  He sustained three gunshot wounds: two gunshots to the torso and one to the head.

Sierra, Chacon, and Cruz also pleaded guilty to Blanco-Hernandez’s murder.  Chacon was sentenced to 269 months in prison; Sierra to 204 months in prison; and Cruz to 150 months in prison.

This case is part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the FBI.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States  Attorneys Jonathan P. Lax, Erin Reid, Margaret Schierberl, Adam Amir, and Rebecca Urquiola are in charge of the prosecution, with the assistance of Paralegal Specialists Tareva Torres and Samuel Ronchetti.

The Defendant:

YANKI MISAEL CRUZ-MATEO (also known as “Yenki Misael Cruz Mateo,” “Yankee Mateo,” “Doggy,” and “Wino”)
Age: 25
Jamaica, Queens

Co-Defendants Previously Convicted:

ERIC CHAVEZ (also known as “Lunatico”)
Age: 25
Jamaica, New York

WALTER FERNANDO ALFARO PINEDA (also known as “Clever”)
Age: 45
Houston, Texas

ISRAEL MEDIOLA FLORES (also known as “Chapito” and “Sinaloa”)
Age: 29
Kingston, New York

YONI ALEXANDER SIERRA (also known as “Arca,” “Arc Angel” and “Wasson”)
Age: 26
Jamaica, Queens

JOSE JIMENEZ CHACON (also known as “Little One”)
Age: 26
New Brunswick, New Jersey

CAROLINA CRUZ (also known as “La Fiera”)
Age: 31
Elizabeth, New Jersey

JOSE DOUGLAS CASTELLANO (also known as “Chino”)
Age: 26
Brooklyn, New York

JUNIOR ZELAYA-CANALES (also known as “Terco”)
Age: 28
Jamaica, New York

E.D.N.Y. Docket No. 18-CR-139 (S-7) (LDH)

Earlier today in federal court in Central Islip, Jason Liriano, the founder and leader of the Route Boys gang, was sentenced by United States District Judge Gary R. Brown to 22 years’ imprisonment for conspiracy to distribute controlled substances and use of firearms in furtherance of drug trafficking activity.  Liriano pleaded guilty to the charges in September 2023.  Liriano is the last of 10 defendants affiliated with the Route Boys gang to be sentenced in connection with charges in a third superseding indictment involving drug distribution, use of firearms, pharmacy burglaries, and ATM thefts.  The Route Boys burglarized pharmacies and convenience stores in Nassau, Suffolk, Brooklyn, Queens, Westchester, and Rockland Counties, as well as in New Jersey and Connecticut from 2020 through June 2022, when they were arrested.

John J. Durham, United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.

“For two years the Route Boys, led by Liriano, engaged in a brazen crime spree targeting local businesses throughout the Tri-State area, stealing money and pharmaceuticals to fuel their illegal drug business, which they protected with threats of violence and illegal firearms,” stated United States Attorney Durham. “These significant jail sentences make our communities safer and are the result of my Office’s collaboration with our law enforcement partners, who are dedicated to the shared mission of protecting local businesses from criminals and holding accountable those who seek to flood our communities with dangerous drugs.”

Mr. Durham thanked the New York City Police Department, Nassau County Police Department, Suffolk County Police Department, Westchester Safe Streets Task Force, U.S. Drug Enforcement Administration, Kings County District Attorney’s Office, Queens County District Attorney’s Office, Nassau County District Attorney’s Office, and Suffolk County District Attorney’s Office for their assistance with the investigation.

“Jason Liriano, the leader of the Route Boys gang, orchestrated a three-year burglary spree targeting various businesses across the city to steal cash and controlled substances for illicit resale,” stated FBI Assistant Director in Charge Raia.  “Liriano’s leadership tormented these local establishments and relied on firearms to further intimidate the gang’s victims into compliance.  With the assistance from our law enforcement and prosecutorial partners, the FBI maintains its steadfast resolve to dismantle any unlawful system that finances the gang presence in our communities.”

As set forth in the third superseding indictment, the government’s sentencing memorandum, and other court filings, the Route Boys began committing burglaries in late 2020, breaking into convenience stores, check-cashing businesses, laundromats, and restaurants, stealing primarily cash and tobacco products.  In addition, the gang stole free-standing ATMs, forcing them open and stealing the cash from inside the machines, netting tens of thousands of dollars.  They then began targeting small “mom-and-pop” pharmacies throughout the Tri-State area by smashing through windows and stealing controlled substances such as oxycodone and promethazine-codeine cough syrup. Liriano possessed a 9mm handgun in furtherance of the drug trafficking operation.  They sold the stolen pharmaceuticals on social media immediately after a night of burglaries.  The government’s conservative estimate is that the Route Boys committed at least 100 burglaries in the Tri-State area between approximately November 2020 and the summer of 2022.  The Route Boys’ crime spree continued after their arrests and incarceration.  Some members engaged in witness tampering and possessed illegal cell phones and controlled substances like oxycodone and marijuana while incarcerated at the Metropolitan Detention Center (MDC) in Brooklyn and on Rikers Island, and many brazenly posted on social media using the contraband phones (including a photo posted by Liriano declaring “F**k the Feds”).  On numerous occasions, including after he pleaded guilty in federal court, Liriano possessed homemade weapons and drugs inside the MDC, and stabbed a fellow inmate with a long shank when the inmate was working as an orderly delivering his breakfast.

Previously, nine other Route Boys members were convicted and sentenced to federal prison, including: Carlos Acevedo to 126 months in prison; Ramon Collado to 132 months in prison; Naresh Deonarrain to 180 months in prison; Devin Lopez-Dominguez to 60 months in prison; Charlie Maisonet to 96 months in prison; Cavier Nedrick to 120 months in prison; Eric Nunez to 144 months in prison; Alberto Santiago to 180 months in prison; and Jeffrey Vargas to 156 months in prison.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States  Attorneys Samantha Alessi and Andrew P. Wenzel are in charge of the prosecution, with the assistance of Paralegal Specialist Dejah Turla.

The Defendant:

JASON LIRIANO (also known as “jay_bigfella”)
Age:  25
Brooklyn, New York

Defendants Previously Sentenced:

CARLOS ACEVEDO (also known as “S.L.” and “cartier_am”)
Age:  26
Brooklyn, New York

RAMON COLLADO (also known as “Greedy,” “greedy.billzz” and “greedyyt2gg”)
Age:  26
Brooklyn, New York

NARESH DEONARRAIN (also known as “Kans” and “nocheck _ kans”)
Age:  27
Brooklyn, New York

DEVIN LOPEZ-DOMINGUEZ
Age:  22
Brooklyn, New York

CHARLIE MAISONET (also known as “Charlie_._rb”)
Age:  21
Brooklyn, New York

CAVIER NEDRICK (also known as “Chief,” “big.chiefs,” and “Caviar Nedrick”)
Age:  26
Hauppauge, New York

ERIC NUNEZ (also known as “Tok” and “therealtok”)
Age:  26
Brooklyn, New York

ALBERTO SANTIAGO (also known as “Kom” and “dot.kom”)
Age:  27
Queens, New York

JEFFREY VARGAS (also known as “Chito” and “chito_1838)
Age:  23
Brooklyn, New York

E.D.N.Y. Docket No. 21-451 (S-3) (GRB)

Former Congressman George Anthony Devolder Santos was sentenced today by United States District Judge Joanna Seybert at the federal courthouse in Central Islip to 87 months in prison for committing wire fraud and aggravated identity theft.  As part of the sentence, Santos was ordered to pay restitution to his victims in the amount of $373,749.97 and $205,002.97 in forfeiture.  Santos pleaded guilty in August 2024.  

John J. Durham, United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Head of the Department of Justice’s Criminal Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York); and Anne T. Donnelly, Nassau County District Attorney announced the sentence.

“Today, George Santos was finally held accountable for the mountain of lies, theft, and fraud he perpetrated.  For the defendant, it was judgment day, and for his many victims including campaign donors, political parties, government agencies, elected bodies, his own family members, and his constituents, it is justice,” stated U.S. Attorney Durham.  “To Mr. Santos and other dishonest individuals of that ilk, who lie, steal identities and commit frauds to get elected to public office, this prosecution speaks to the truth that my Office is committed to aggressively rooting out public corruption and that public officials who criminally abuse our electoral process will end up in a federal prison.”

Mr. Durham expressed his appreciation to the U.S. Department of Labor, Office of Inspector General and the New York State Department of Labor, for their assistance.

FBI Assistant Director in Charge Raia stated, “Today, former United States Congressman George Santos is held accountable for his repeated criminal dishonesty – financing his election campaign with ill-obtained funds, stealing COVID unemployment benefits, and providing materially false information in his financial disclosure. Santos abused his authority to garner illicit donations and campaign support; ultimately betraying the public’s trust and violating our democratic systems.  May today’s sentencing emphasize the FBI’s continued commitment to dismantling any fraudulent scheme designed to unlawfully benefit those in positions of power.”

“George Santos blatantly disregarded campaign finance laws and abused the trust of his constituents and contributors.  While he may have made a mockery of his position in public office, today’s sentencing is justice for those he has wronged.  CI New York proudly worked with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences of his years of deception,” stated IRS-CI New York Special Agent in Charge Chavis.

“George Santos spent his brief career in public service conning his donors and constituents until the deceit caught up to him and he was exposed as an opportunist and a fraud.  Today’s lengthy prison sentence is a just ending for a weaver of lies who believed he was above the law,” stated Nassau County District Attorney Donnelly. “Being elected to represent any community is accepting a solemn responsibility and a position of great trust. George Santos failed the people he was elected to represent in Nassau County and Queens.  He broke that trust and traded in his integrity for designer clothes and a luxury lifestyle. I will continue to work with my partners to root out public corruption and ensure that the crucial standards to which we hold our elected officials and public institutions are upheld.” 

The counts to which Santos pled guilty relate to the following criminal scheme, as set forth in the superseding indictment:

The Party Program Scheme

During the 2022 election cycle, Santos was a candidate for the United States House of Representatives in New York’s Third Congressional District.  Nancy Marks, who pleaded guilty on October 5, 2023 to related conduct, was the treasurer for his principal congressional campaign committee, Devolder-Santos for Congress.  During this election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC), in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

The purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee to provide financial and logistical support to Santos’s campaign.  To qualify for the program, Santos had to demonstrate, among other things, that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.

To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 11 of their family members had made significant financial contributions to the campaign.  In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports.  In addition, Santos and Marks knew that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, and agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans.  These falsely reported loans included one for $500,000 when in fact Santos had less than $8,000 in his personal and business bank accounts.

Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee.  As a result of qualifying for the program, the congressional campaign received significant financial support.

As part of his plea agreement, Santos stipulated that he had engaged in the following additional criminal conduct, as set forth in the superseding indictment and other court filings, and agreed that this criminal conduct would be considered by the Court at the time of sentencing:

The Credit Card Fraud Scheme

Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign.  He then repeatedly charged contributors’ credit cards without their authorization.  Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account.  To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented in FEC filings that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders.  Santos did not have authorization to use their names in this way.  In furtherance of the scheme, Santos sought out victims he knew were elderly persons suffering from cognitive impairment or decline.

Fraudulent Political Contribution Solicitation Scheme

Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters.  Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf.  Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements.  In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.

Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts.  Santos then used much of that money for personal expenses.  Among other things, Santos used the funds to make personal purchases, including of designer clothing, to withdraw cash, to discharge personal debts, and to transfer money to his associates.

Unemployment Insurance Fraud Scheme

Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1).  By late March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.

In mid-June 2020, although he was employed and not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), claiming falsely to have been unemployed since March 2020.  From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not.  As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.

False Statements to the House of Representatives

Santos, like all candidates for the House, had a legal duty to file with the Clerk of the United States House of Representatives a Financial Disclosure Statement (House Disclosures) before each election.  In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things.  He certified that his House Disclosures were true, complete, and correct.

In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure in which he vastly overstated his income and assets.  In this House Disclosure, he falsely certified that during the reporting period:

• He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
• He had received between $1,000,001 and $5 million in dividends from the Devolder Organization LLC;
• He had a checking account with deposits of between $100,001 and $250,000; and
• He had a savings account with deposits of between $1 million and $5 million.

These assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts.  Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.

The government’s case is being handled by the Office’s Public Integrity Section and the Criminal Section of the Office’s Long Island Division, along with the Public Integrity Section of the Department of Justice’s Criminal Division.  Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorney John Taddei, are in charge of the prosecution, with assistance from Paralegal Specialists Rachel Friedman and Dinora Orozco.

The Defendant:

GEORGE ANTHONY DEVOLDER SANTOS
Age: 36
Queens, New York

E.D.N.Y. Docket No. 23-CR-197 (S-2) (JS)

A federal grand jury in Central Islip, New York, returned an indictment April 22 and unsealed today charging a New York man with lying on his applications for a green card and United States citizenship by concealing his past role as a leader and perpetrator of the genocide in Rwanda in 1994.

According to court documents, Faustin Nsabumukunzi, 65, of Bridgehampton, New York, was a local leader with the title of “Sector Counselor” in Rwanda in 1994 when the genocide began. Between April and July of that year, members of the majority Hutu population persecuted the minority Tutsis, committing acts of violence including murder and rape. An estimated 800,000 ethnic Tutsis and moderate Hutus were killed during the three-month genocide. Nsabumukunzi was arrested this morning on Long Island and is scheduled to be arraigned at 1:30 p.m. ET before U.S. District Judge Joanna Seybert for the Eastern District of New York.

“As alleged, the defendant participated in the commission of heinous acts of violence abroad and then lied his way into a green card and tried to obtain U.S. citizenship,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “No matter how much time has passed, the Department of Justice will find and prosecute individuals who committed atrocities in their home countries and covered them up to gain entry and seek citizenship in the United States.”

“As alleged, Nsabumukunzi repeatedly lied to conceal his involvement in the horrific Rwandan genocide while seeking to become a lawful permanent resident and citizen of the United States,” said U.S. Attorney John J. Durham for the Eastern District of New York. “For over two decades, he got away with those lies and lived in the United States with an undeserved clean slate, a luxury that his victims will never have, but thanks to the tenacious efforts of our investigators and prosecutors, the defendant finally will be held accountable for his brutal actions.”

“This defendant has been living in the United States for decades, hiding his alleged horrific conduct, human rights violations, and his role in these senseless atrocities against innocent Tutsis,” said Acting Special Agent in Charge Darren B. McCormack of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) New York. “The depraved conduct of which the defendant is accused represent the worst of humanity. As demonstrated through the tireless work of HSI New York agents, analysts, and task force officers, we will never tolerate the safe-harboring of individuals linked to such unimaginable crimes.”

As alleged in the indictment, Nsabumukunzi used his leadership position to oversee the violence and killings of Tutsis in his local area and directed groups of armed Hutus to kill Tutsis. He is alleged to have set up roadblocks during the genocide to detain and kill Tutsis and to have participated in killings. According to court filings, Nsabumukunzi was subsequently convicted in absentia by a Rwandan court for genocide.

As further alleged, Nsabumukunzi applied for refugee resettlement in the United States in 2003, applied for and received a green card in 2007, and later submitted applications for naturalization in 2009 and 2015. Nsabumukunzi is alleged to have lied to U.S. immigration officials in his immigration applications, including by falsely denying any involvement as a perpetrator of the Rwandan genocide. As a result of his ongoing efforts to conceal his actions during the genocide, Nsabumukunzi has been able to live and work in the United States since 2003.

Nsabumukunzi is charged with one count of visa fraud in violation of 18 U.S.C. § 1546(a) and two counts of attempted naturalization fraud in violation of 18 U.S.C. § 1425 (a) and (b). If convicted, he faces a statutory maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI Long Island is investigating the case, with assistance from the Interagency Human Rights Violators and War Crimes Center.

Trial Attorney Brian Morgan of the Justice Department’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorneys Samantha Alessi and Katherine P. Onyshko for the Eastern District of New York are prosecuting the case, with assistance from HRSP Analyst/Historian Dr. Christopher Hayden and the Justice Department’s Office of International Affairs.

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or internationally at 001-1802-872-6199. They can also email HRV.ICE@ice.dhs.gov or complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.

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

Earlier today, in federal court in Brooklyn, Roberto Gustavo Cortes Ripalda (Cortes), the co-founder, co-owner, and former Chief Executive Officer of the international investment advisory firm Biscayne Capital, was sentenced by United States District Judge Carol Bagley Amon to 10 years in prison for conspiracy to commit wire fraud.  Cortes pleaded guilty to the charge in September 2023 after being charged with conspiracy to commit wire fraud, conspiracy to commit bank fraud, and conspiracy to commit money laundering.  As part of the sentence, Cortes was also ordered to pay $3.4 million in forfeiture and $103 million in restitution to over 110 victims. 

John J. Durham, United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; and Kareem A. Carter, Executive Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Washington Field Office (IRS-CI) announced the sentence. 

“Today’s sentence reflects the seriousness of Roberto Cortes’s criminal conduct in orchestrating a years-long scheme with his co-conspirators to prop up a failing business while defrauding Biscayne Capital investors and clients around the globe,” stated United States Attorney Durham. “Using illegal Ponzi payments to their victims, Cortes and his co-conspirators were able to disguise and perpetuate this scheme for years until Biscayne Capital finally collapsed under the defendants’ lies.  Today’s sentence demonstrates our Office’s commitment to holding accountable investment professionals who abuse the trust of their clients for personal profit.”

Mr. Durham thanked The Justice Department’s Office of International Affairs for providing significant assistance in securing the defendant’s arrest and extradition from Spain and obtaining evidence in this case. The Department of Justice also thanks the Governments of Spain and Switzerland for their valuable support.

“For more than five years, Roberto Cortes and his co-conspirators lied to Biscayne Capital investors — including their friends and family members — about how they were using millions of dollars of their investments,” stated Matthew R. Galeotti, head of the Justice Department’s Criminal Division. “When Biscayne Capital’s debt spiraled with no hope of paying back its early investors, they concealed the scheme by using new and existing investor funds to pay off other investors, resulting in more than $100 million in losses to investors. The sentence will hold Cortes accountable for his years of lies and deception.”   

“Regardless of the complexity of the investigation, IRS Criminal Investigation Special Agents and our law enforcement partners will utilize their skills and unique authorities to hold bad actors like the defendant accountable,” stated IRS-CI Executive Special Agent in Charge Carter.  “This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors. Today’s sentencing sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

According to court filings, in approximately 2001, Cortes and his co-defendant Ernesto Heraclito Weisson Pazmino (Weisson) founded South Bay as a real estate development business.  South Bay would acquire properties, demolish the houses on those properties, and build new luxury homes.  After an initial period in which Cortes and Weisson raised the funds for South Bay’s operations from individual investors and bank loans, they founded Biscayne Capital in 2005 to create a more institutionalized form of financing for South Bay’s operations.  Between 2005 and 2018, Biscayne Capital operated in Miami, Argentina, Ecuador, Uruguay, Bermuda, Switzerland, the Bahamas, and the British Virgin Islands. 

After South Bay began to experience financial trouble in 2007, Cortes and Weisson created and marketed to investors a series of private structured investment products (the Proprietary Products) to raise funds for, among other things, South Bay’s operations.  However, rather than using the investor funds raised through the sale of the Proprietary Products to fund South Bay’s real estate development projects, Cortes, Weisson, co-defendant Fernando Haberer, and additional co-conspirators used the bulk of the investor funds to pay outstanding interest and principal debt obligations to other Proprietary Products investors.  By the time the scheme collapsed and Biscayne Capital went into liquidation, Biscayne Capital clients had lost over $130 million. 

Cortes and his co-conspirators took calculated steps to perpetuate and conceal the scheme.  Cortes directed Biscayne Capital financial advisors to raise new investor funds in order to repay older investors.  Cortes was also directly involved in the creation and marketing of the Proprietary Products whose investments were misappropriated.  For example, Cortes was instrumental in creating and marketing the Liquidity Note Proprietary Product “as a money market product where clients would have daily access to liquidity.”  Cortes and his co-conspirators then misappropriated all the Liquidity Note funds—over $29.6 million—to perpetuate the scheme.  Cortes also directed the co-conspirator to fabricate account statements that were sent to clients to conceal how Cortes and his co-conspirators had misappropriated the clients’ funds.  In another complex effort to keep the scheme afloat, Cortes’s co-conspirators devised a scheme to obtain short-term credit from banks based on misrepresentations regarding purchases and sales of the Proprietary Products from Biscayne Capital client custody accounts that caused overdrafts in client accounts.  Cortes and his co-conspirators used the short-term credit obtained from the banks to cover payments owed to other clients in the scheme and to pay their own salaries, among other things.   

Weisson pleaded guilty in April 2022 to conspiracy to commit wire fraud and is awaiting sentencing.  Haberer is not in U.S. custody.                                                                       

The government’s case is being handled by the Office’s Business and Securities Fraud Section and by the Department of Justice’s Fraud and Money Laundering and Asset Recovery Sections.  Assistant United States Attorneys Benjamin Weintraub and Drew Rolle, and Trial Attorneys Randall Warden and Morgan Cohen, are in charge of the prosecution.  The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from Spain and obtaining evidence in this case.  The Department of Justice also thanks the Governments of the Cayman Islands, Curaçao, Ecuador, Spain and Switzerland for their valuable support.

The Defendant:

ROBERTO GUSTAVO CORTES RIPALDA
Age:  58
Key Biscayne, Florida

E.D.N.Y. Docket No. 21-CR-458 (CBA)

CENTRAL ISLIP, NY – Earlier today, at the federal courthouse in Central Islip, an indictment was unsealed charging Faustin Nsabumukunzi with visa fraud and attempted naturalization fraud for lying on his applications for a green card and for United States citizenship by concealing his role as a local leader and perpetrator of violence during the Rwandan genocide in 1994.  Nsabumukunzi was arrested this morning on Long Island and is scheduled to be arraigned this afternoon before United States District Judge Joanna Seybert.

John J. Durham, United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; and Darren B. McCormack, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), announced the arrest and charges.

“As alleged, Nsabumukunzi repeatedly lied to conceal his involvement in the horrific Rwandan genocide while seeking to become a lawful permanent resident and citizen of the United States,” stated United States Attorney Durham.  “For over two decades, he got away with those lies and lived in the United States with an undeserved clean slate, a luxury that his victims will never have, but thanks to the tenacious efforts of our investigators and prosecutors, the defendant finally will be held accountable for his brutal actions.”

Mr. Durham expressed his appreciation to the United States Interagency Human Rights Violators & War Crimes Center, the Justice Department’s Office of International Affairs, the Department of Homeland Security, U.S. Citizenship and Immigration Services, and the U.S. Immigration and Customs Enforcement’s Office of the Principal Legal Advisor for their work on the case.

“As alleged, the defendant participated in the commission of heinous acts of violence abroad and then lied his way into a green card and tried to obtain U.S. citizenship,” stated Matthew R. Galeotti, Head of the Justice Department’s Criminal Division.  “No matter how much time has passed, the Department of Justice will find and prosecute individuals who committed atrocities in their home countries and covered them up to gain entry and seek citizenship in the United States.”

“This defendant has been living in the United States for decades, hiding his alleged horrific conduct, human rights violations, and his role in these senseless atrocities against innocent Tutsis,” stated HSI New York Acting Special Agent in Charge McCormack.  “The depraved conduct of which the defendant is accused represent the worst of humanity. As demonstrated through the tireless work of HSI New York agents, analysts, and task force officers, we will never tolerate the safe-harboring of individuals linked to such unimaginable crimes.”

As set forth in court filings, Nsabumukunzi served as a local leader with the title of “Sector Councilor” in Rwanda in 1994 when the genocide began.  Between April 1994 and July 1994, members of the majority Hutu population persecuted the minority Tutsis, committing acts of violence, including murder, rape, and sexual violence.  An estimated 800,000 ethnic Tutsis and moderate Hutus were killed during the three-month genocide.

As alleged in the indictment, Nsabumukunzi used his leadership position as Sector Councilor to oversee the violence and killings of Tutsis in his local sector of Kibirizi and directed groups of armed Hutus to kill Tutsis. He set up roadblocks during the genocide to detain and kill Tutsis and participated in killings and violence.  For example, Nsabumukunzi ordered a group of armed Hutus to locations where Tutsis were sheltering and the Hutus killed them.  Nsabumukunzi also facilitated the rape of Tutsi women by verbally encouraging Hutu men to do so.  According to court filings, Nsabumukunzi has been convicted of genocide in absentia by a Rwandan court.

As further alleged, Nsabumukunzi applied for refugee resettlement in the United States in August 2003, applied for and received a green card in November 2007, and later submitted applications for naturalization in 2009 and 2015.  Nsabumukunzi lied to United States immigration officials to gain admission to the United States as a refugee, by falsely denying in the applications under penalty of perjury that he ever engaged in genocide.  He repeated those lies in his subsequent applications for a green card and for naturalization.  As a result of his ongoing efforts to conceal his actions during the genocide, Nsabumukunzi has been able to live and work in the United States since 2003.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted on all counts, Nsabumukunzi faces a maximum of 30 years in prison.

The government’s case is being prosecuted by the Office’s Human Trafficking and Civil Rights Section and the Criminal Section of the Office’s Long Island Division.  Assistant United States  Attorneys Samantha Alessi and Katherine P. Onyshko and Paralegal Specialist Erin Payne are in charge of the prosecution, along with Trial Attorney Brian Morgan from the Criminal Division’s Human Rights and Special Prosecutions (HRSP) Section, with assistance from HRSP Senior Historian Dr. Christopher Hayden.

The Defendant:

FAUSTIN NSABUMUKUNZI
Age: 65
Bridgehampton, New York

E.D.N.Y. Docket No. 25-CR-138 (JS)

WASHINGTON – The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal healthcare programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032. 

The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear “red flags” indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice. 

The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.

In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi.  “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”

“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said John J. Durham, United States Attorney for the Eastern District of New York.  “The settlement also underscores our Office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”   

“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing, or distributing activities.”

In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a Memorandum of Agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances. 

The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery.  It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.

The claims asserted against defendants are allegations only and there has been no determination of liability.

The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).

The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.

The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.

Earlier today, in federal court in Brooklyn, Pushpesh Kumar Baid, also known as “PK Jain,” pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud investors in Tradepay Capital LLC (Tradepay), a purported factoring company.  The proceeding was held before United States Magistrate Judge Lois Bloom.  When sentenced, Baid faces a maximum sentence of 20 years’ imprisonment, as well as restitution of over $35 million and forfeiture of over $2.6 million.

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

“Through a complex web of shell companies, straw bank accounts, fraudulent documents, and other lies, Baid and his co-conspirators deceived their victims into investing tens of millions of dollars into a business that did not exist,” stated United States Attorney Durham.  “Today’s plea demonstrates that my Office will hold accountable fraudsters like Baid who enrich themselves at their investors’ expense.”   

Mr. Durham expressed his appreciation to the Internal Revenue Service, Criminal Investigations for its work on the case.

As set forth in court filings, Baid was the business head of Tradepay, which purported to be an international factoring business run by an executive team experienced in factoring invoices in particular industries and geographic regions.  Factoring involves the sale of an invoice to a third party at a discount.  In a factoring transaction, the seller of an invoice obtains immediate funding from the buyer of the invoice, and the buyer of the invoice makes a profit when the invoice is paid in full.

Between April 2017 and October 2019, Baid and his co-conspirators implemented a scheme to defraud investors in Tradepay by making it appear that Tradepay was a legitimate and successful business when it was, in fact, an elaborate scam.  For example, the hundreds of invoices from various businesses that Tradepay purported to be factoring were fraudulent and included fake signatures for both sides of the transactions.  Baid and his co-conspirators also funneled millions of dollars of investors’ funds—which they represented would be sent to Tradepay’s business partners—into a sprawling network of bank accounts that Baid controlled through shell entities and straw signatories.  From those accounts, Baid and his co-conspirators spent millions of dollars on personal expenses, including cash withdrawals and purchases of luxury cars and watches.  Baid even lied about his identity, concealing his real name from investors in order to obscure the fact that he was wanted for criminal offenses abroad.

Investors in Tradepay initially received payments on the invoices, which led them to contribute increasingly large sums of capital.  By approximately July 2019, however, the payments on the invoices stopped, resulting in roughly $35 million in losses.

As part of his plea, Baid also admitted to defrauding investors in Luxestreet Inc., formerly known as Asset Capital Partners LLC (Luxestreet), and agreed to pay restitution to Luxestreet’s investors.  Baid claimed that Luxestreet operated like a pawn shop for high end goods, including luxury watches.  In reality, Luxestreet contracts were forged and the physical watches held by the company were mere knockoffs.  

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Dylan A. Stern, Benjamin Weintraub, and Molly Delaney are in charge of the prosecution, with assistance from Paralegal Specialist Sarah Burn.

The Defendant:

Pushpesh Kumar Baid (also known as “PK Jain”)
Age:  44
Miami, Florida

E.D.N.Y. Docket No. 21-CR-367 (DC)

A federal jury today convicted Tony Clanton, also known as “Tone,” on all counts of a superseding indictment charging him with Hobbs Act robbery conspiracy, two counts of Hobbs Act robbery, attempted Hobbs Act robbery, and use of firearms during crimes of violence.  The charges arose from a string of robberies and attempted robberies committed at gunpoint by the defendant and co-conspirators.  The verdict followed a six-day trial before United States District Judge Kiyo A. Matsumoto.  When sentenced, Clanton faces a mandatory minimum term of 25 years in prison and up to life in prison.

John J. Durham, United States Attorney for the Eastern District of New York; Terence G. Reilly, Acting Special Agent in Charge, Federal Bureau of Investigation, Newark Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the verdict.

“Over a six-month period, Clanton directed a cruel and violent spree in New York City and New Jersey that left terrorized robbery victims in his wake, including two children who watched as their parents were shot at or menaced with guns,” stated United States Attorney Durham.  “Thanks to exceptional investigative work by the FBI and the NYPD, the defendant was identified, apprehended, and rightly convicted today by jurors who were presented with a mountain of evidence that demonstrated his crime wave and overwhelmingly proved his guilt.”

Mr. Durham also thanked the Edison, New Jersey Police Department for their valuable assistance on the case.

“Tony Clanton is a serial violent criminal who has gone to great lengths to terrorize his victims in the pursuit of monetary gain. The FBI won’t rest until violent organized criminals are taken off the street so victims and others in the community may sleep soundly, and know justice has been served,” stated FBI Newark Acting Special Agent in Charge Reilly.  “The FBI's Safe Streets Task Forces spearhead countless cases similar to this one.  But with each case, there are victims.  All our efforts are for them.”

“Tony Clanton terrorized communities throughout New York City — holding victims at gunpoint in front of their children, firing recklessly, even impersonating a federal agent,” said NYPD Commissioner Jessica S. Tisch.  “Thanks to the outstanding work of NYPD investigators, in partnership with the FBI and the U.S. Attorney’s Office, he’s now been brought to justice.  This conviction ends a violent spree that had no place in our city.  And we will continue working with our partners to make sure criminals like this are held accountable.”

As proven at trial, Clanton orchestrated a series of violent robberies at gunpoint in the Eastern District of New York and in New Jersey between January 2023 and July 2023.  After he was indicted, Clanton removed his ankle monitor and fled the district two weeks before a previously scheduled trial date and went on the run for five weeks.  While he was a fugitive, Clanton fled from two police officers who pulled him over, presented fake identification documents, and searched on the Internet for how to fake his own death.

January 20, 2023 Home Invasion in Staten Island

Clanton orchestrated an attempted robbery in which a co-conspirator, wearing a white hazmat suit, gloves, and standing in the vestibule of an apartment building with a can of paint, accosted Victim-1, who was entering the vestibule with his 10-year-old son.  The co-conspirator pointed a silver revolver at Victim-1 and said, “Don’t make this a homicide,” struck Victim-1 in the head with the gun, and fired a shot.  Clanton, who was also armed with a gun, grabbed Victim-1’s keys and tried unsuccessfully to open Victim-1’s apartment door.  Clanton and his co-conspirator then fled in a U-Haul van.

June 3, 2023 Robbery of a Smoke Shop in Staten Island

Clanton orchestrated the robbery of an employee (Victim-2) of a smoke shop in Annadale, Staten Island as he was closing the store for the night.  As his co-conspirators brandished firearms and robbed the smoke shop, Clanton monitored a police scanner radio and maintained cell phone contact with his accomplices to warn them that the police were on the way.  They restrained Victim-2 with zip ties and pressed a gun to the back of his head.  The robbers took approximately $4,000 in cash, packages of cigarettes, and a quantity of marijuana.

June 24, 2023 Attempted Robbery of a Car Buyer in Staten Island

Clanton orchestrated a robbery in which he pretended he was selling his Mercedes-Benz automobile to a prospective buyer (Victim-3).  While Clanton waited in the area, two of Clanton’s co-conspirators tried to rob Victim-3.  With Victim-3’s teenage son watching from the doorway, one of the co-conspirators attempted to rob Victim-3 at gunpoint.  Victim-3 fled into his home and slammed the door shut before the co-conspirator could barge inside.  That co-conspirator then fled the scene with Clanton as the get-away driver.

June 27, 2023 Attempted Robbery of the Owners of a Jewelry Store in New Jersey

Clanton and a co-conspirator attempted to rob the husband (Victim-4) and wife (Victim-5) owners of an Edison, New Jersey jewelry store outside their home.  Clanton identified Victim-4 and Victim-5 as potential targets and conducted surveillance on them for over a week before the attempted robbery.  During the attempted robbery, Clanton and his co-conspirator were wearing jackets with the letters “FBI,” badges that said “FBI,” and hats identifying themselves as law enforcement agents that Clanton had previously ordered from Amazon.  When the victims pulled into their driveway, Clanton and his co-conspirator ordered them out of the car at gunpoint.  Realizing Clanton and his co-conspirator were not FBI agents, the victims sped away and escaped unharmed.

July 12, 2023 Robbery of the Owner of an Ice Cream Store in Brooklyn

Clanton and a co-conspirator waited outside a TD Bank in Brooklyn for the victim (Victim-6) to leave with a bag of cash.  They followed Victim-6 to his home where the co-conspirator took a bag containing over $6,000 at gunpoint.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Andrew M. Roddin and Matthew Skurnik are in charge of the prosecution with the assistance of Paralegal Specialist Timothy Migliaro.

The Defendant:

TONY CLANTON (also known as “Tone”)
Age:  51
Staten Island, New York

E.D.N.Y. Docket No. 23-CR-328 (S-1) (KAM)

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Fatjon Shytani, an Albanian national and resident of the Bronx, New York, with a scheme to smuggle illegal aliens from Canada into the United States for financial gain.  Shytani was arrested yesterday morning and was arraigned this afternoon before United States Magistrate Judge Lois Bloom.

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

“As alleged, Shytani conspired to smuggle illegal aliens into the United States to benefit himself financially, but was thwarted by the outstanding work of our law enforcement partners,” stated United States Attorney Durham.  “These types of schemes represent a significant threat to our national security and will not be tolerated.  This case demonstrates our Office’s continued dedication to protect our border security and the integrity of the immigration process.”

Mr. Durham also thanked U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, the New York City Police Department, the Royal Canadian Mounted Police and the Albanian State Police for their valuable assistance during the investigation.

"Fatjon Shytani, an Albanian national, allegedly facilitated the illegal entry of foreign nationals into the United States in exchange for cash payments.  This alleged conspiracy established unauthorized border access designed to circumvent proper protocols and evade authorities.  The FBI remains dedicated to apprehending any individual who profits from violating the borders and security of our nation," stated FBI Assistant Director in Charge Raia.

As alleged in court filings, Shytani and his co-defendants conspired to smuggle foreign nationals into the United States via illegal border crossing at the U.S. border with Canada.  During the course of the investigation, Shytani accepted cash from an undercover agent (UC-1) in exchange for arranging to have the agent’s significant other, who purportedly was from the Republic of Kosovo, smuggled across the Canadian border into the United States.  In reality, the agent’s significant other was another undercover law enforcement agent (UC-2).  Between March 12, 2024 and March 13, 2024, Shytani and UC-1 exchanged phone calls and text messages during which they agreed to meet in person on March 14, 2024, at a coffee shop on Long Island, New York.  On March 14, 2024, Shytani met UC-1 at the agreed-upon location where they discussed details regarding UC-2’s illegal crossing from Canada into the United States. At the conclusion of the meeting, UC-1 paid Shytani $14,000 in cash for the planned smuggling service.  On March 16, 2024, Shytani’s co-conspirators then attempted to smuggle UC-2 and two other aliens from Canada into the United States before being apprehended and later released by Canadian law enforcement.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of alien smuggling and transportation conspiracy, Shytani faces up to 10 years’ imprisonment.

Assistant United States  Attorneys Andrew Roddin, Stephanie Pak, and Kate Mathews are in charge of the prosecution.  

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

The Defendant:

FATJON SHYTANI (also known as “Fati”)
Age:  41
Bronx, New York

E.D.N.Y. Docket No. 25-CR-133 (SJB)

Earlier today, in federal court in Brooklyn, Rasheedul Mowla, a U.S. citizen, pleaded guilty to attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.  The proceeding was held before United States District Judge Ann M. Donnelly. When sentenced, Mowla faces a maximum sentence of 20 years’ imprisonment.

John J. Durham, United States Attorney for the Eastern District of New York; Sue J. Bai, head of the Justice Department’s National Security Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“Mowla sought to join a violent foreign terrorist organization that has conducted and inspired terrorist attacks worldwide, killing numerous innocent victims, including American citizens,” stated United States Attorney Durham.  “Thanks to the diligent efforts of law enforcement, Mowla’s plan to join ISIS was thwarted.  This Office remains steadfast in its efforts to pursue and bring to justice those who support terrorism.”

Mr. Durham expressed his appreciation to the FBI’s Joint Terrorism Task Force for their outstanding work on the case.

“Rasheedul Mowla made a concerted attempt to travel to Syria to join ISIS and expressed his willingness to actively support their extremist ideologies with physical violence.  He sought to jeopardize the welfare of his own country to align with a foreign terrorist organization known for killing American soldiers and innocent civilians,” stated FBI Assistant Director in Charge Raia.  “This is evidence of the FBI’s enduring commitment to leveraging the NY JTTF to interdict any United States citizen seeking to participate in terrorist activities, and ensure they no longer pose a threat to this nation.”

“Rasheedul Mowla wasn’t just planning to join ISIS—he was ready to kill and die for them,” said NYPD Commissioner Tisch.  “That kind of threat demands a swift response, and thanks to the work of the NYPD and our federal partners, it was stopped before anyone got hurt.  This case underscores the importance of constant vigilance and the critical role our investigators play in keeping New York and the entire country safe.”

As detailed in publicly filed court documents, the defendant traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday.  Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to join ISIS.  He was apprehended before entering Syria and, on August 29, 2017, was deported back to the United States.

The defendant previously admitted to law enforcement authorities that, prior to traveling to the Middle East, he knew that ISIS was a terrorist organization that committed terrorist attacks and killed people.  He further admitted that, had he successfully arrived in Syria to join ISIS, he was planning to shoot weapons and willing to die on behalf of ISIS.             

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Meredith A. Arfa is in charge of the prosecution, with assistance from Trial Attorney John Cella of the National Security Division’s Counterterrorism Section. 

The Defendant: RASHEEDUL MOWLA
Age:  28
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-487 (AMD)

Today, in federal court in Brooklyn, New York, Michael McMahon, 57, of Mahwah, New Jersey, was sentenced to 18 months in prison and ordered to pay an $11,000 fine for acting as an illegal agent of the government of the People’s Republic of China (PRC) and interstate stalking and conspiracy to commit the same, for his participation in a scheme to coerce repatriation of a U.S. resident to the PRC as part of its international repatriation effort known as “Operation Fox Hunt.” McMahon and co-defendants Zhu Yong, 68, of East Elmhurst, New York, and Congying Zheng, 29, of Brooklyn, were convicted by a federal jury in June 2023 following a three-week trial. In January 2025, Zhu and Zheng were sentenced respectively to 24 months and 16 months in prison.

As proven at trial, between approximately 2016 and 2019, the defendants and their co-conspirators participated in an international campaign to threaten, harass, surveil, and intimidate John Doe #1 and his family in order to force him and his wife, Jane Doe #1, to return to the PRC to face purported corruption charges. Beginning in 2012, John Doe #1 and Jane Doe #1 had been targeted for repatriation as part of the PRC’s transnational repression programs known as “Operation Fox Hunt” and “Operation Sky Net.” John Doe #1 and his family had accordingly sought to keep their address out of public records.

Zhu hired McMahon, a retired NYPD sergeant working as a private investigator, to locate John Doe #1. McMahon obtained sensitive information about John Doe #1, which he then reported back to Zhu and others, including a PRC police officer. McMahon also conducted surveillance outside the New Jersey home of John Doe #1’s relative and provided Zhu and PRC officials with detailed reports of what he observed. The operation was supervised and directed by several PRC officials, including a PRC police officer and a PRC prosecutor.

As McMahon knew, the operation was intended not only to locate John Doe #1, but to coerce him to return to the PRC by exerting pressure on his family members. In April 2017, PRC officials threatened to jail John Doe #1’s sister, who lived in the PRC, in order to coerce John Doe #1’s then-82-year-old father to travel from the PRC to their relative’s home in New Jersey. John Doe #1’s father, who had recently suffered a brain hemorrhage, was so frail that a doctor accompanied him for the trip. McMahon followed John Doe #1’s father from the relative’s New Jersey home, and, by doing so, was able to learn John Doe #1’s address. McMahon immediately provided this information to a PRC operative.

On Sept. 4, 2018, Zheng and another co-conspirator drove to the New Jersey residence of John Doe #1 and Jane Doe #1 – at the address that McMahon had provided – where they pounded on the front door, attempted to enter the house, and then peered through the windows in the back of the home. They left a note on the front door informing John Doe #1 that his “wife and children will be okay” if John Doe #1 surrendered himself to face a ten-year prison term in the PRC.

McMahon knew that the subjects of his investigation were wanted by the PRC government, a fact that he texted about with another investigator he contracted to help him. Following his arrest, McMahon acknowledged knowing that his employers wanted to get the victim back to China “so they could prosecute him.” After providing the victims’ address, McMahon told his surveillance partner that he was “waiting for a call” to find out what to do next. McMahon’s partner responded, “Yeah. From NJ State Police about an abduction,” to which McMahon responded “Lol.”  McMahon later suggested to a PRC co-conspirator that they “harass” John Doe #1 by “[p]ark[ing] outside his home and let[ting] him know we are there.” McMahon took other investigative steps designed to harass the victims, such as researching their daughter’s university residence and college major. McMahon was paid more than $19,000 in total for his role in the illegal repatriation scheme. In an apparent attempt to conceal the source, McMahon deposited payments from his PRC clients into his son’s bank account, the only time he had done so with client payments.

Previously, three co-defendants pleaded guilty in connection with their roles in the PRC-directed harassment and intimidation campaign. They are awaiting sentencing.

Sue J. Bai, head of the Justice Department’s National Security Division, U.S. Attorney John J. Durham for the Eastern District of New York, and Assistant Director Roman Rozhavsky of the FBI's Counterintelligence Division made the announcement.

The FBI New York Field Office investigated the case, with valuable assistance provided by the Department of State’s Diplomatic Security Service.

Assistant U.S. Attorneys Meredith A. Arfa and Irisa Chen for the Eastern District of New York and Trial Attorney Christine A. Bonomo of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Paralegal Specialist Rebecca Roth for the Eastern District of New York provided valuable assistance.

The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit the FBI’s website.

Earlier today, in federal court in Brooklyn, Michael McMahon was sentenced by United States District Judge Pamela K. Chen to 18 months in prison for acting as an illegal agent of the government of the People’s Republic of China (PRC), as well as for interstate stalking and conspiracy to commit such acts in connection with his participation in a scheme to coerce a U.S. resident to return to the PRC as part of its international repatriation effort known as “Operation Fox Hunt.”  McMahon and co-defendants Zhu Yong and Congying Zheng were convicted by a federal jury in June 2023 following a three-week trial.  As part of his sentence, McMahon was also ordered to pay a fine of $11,000.

John J. Durham, United States Attorney for the Eastern District of New York; Sue J. Bai, head of the Justice Department’s National Security Division; Terence G. Reilly, Acting Special Agent in Charge, Federal Bureau of Investigation, Newark Field Office (FBI); and Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York) announced the sentences. 

“McMahon, a former law enforcement officer who swore an oath to protect the public, went rogue and dishonorably engaged in a scheme at the direction of the People’s Republic of China, terrorized victims living in the New York metropolitan area, and shattered their sense of safety and security,” stated United States Attorney Durham.  “Thanks to the efforts of law enforcement, the defendants’ plan to coerce the victims to return to China failed, and the defendants have instead been brought to justice for their role in China’s insidious Operation Fox Hunt.  My Office remains unwavering in its commitment to exposing and undermining efforts by foreign governments to perpetrate transnational repression schemes that threaten our national security interests and harm individuals living in the United States.” 

Mr. Durham expressed his appreciation to the Department of State’s Diplomatic Security Service and the FBI’s New York Field Office for their work on the case. 

“Most private investigators operate within the bounds of the law and ethical conduct. McMahon knew exactly what he was doing—and at trial, we proved his knowing and willing participation in this scheme,” stated FBI Special Agent in Charge Reilly.  “His client, the People's Republic of China, has invested years and millions of dollars trying to silence dissent beyond its borders. When those efforts cross into our country, they threaten our national security.  The PRC needs to understand: we will not tolerate it.”

“This defendant allowed himself to become a partner in the PRC’s cruel harassment and intimidation campaign,” stated HSI New York Special Agent in Charge Alfonso.  “HSI, together with our federal counterparts, will continue to outfox our adversaries’ attempts to circumvent U.S. regulations, undermine national security, and target the American public.”

As proven at trial, between approximately 2016 and 2019, McMahon and his co-conspirators participated in an international campaign to threaten, harass, surveil, and intimidate John Doe #1 and his family in order to force him and his wife, Jane Doe #1, to return to the PRC to face purported corruption charges.  Beginning in 2012, John Doe #1 and Jane Doe #1 had been targeted for repatriation as part of the PRC’s transnational repression programs known as “Operation Fox Hunt” and “Operation Sky Net.”  John Doe #1 and his family had accordingly sought to keep their address out of public records.

Yong hired McMahon, a retired NYPD sergeant working as a private investigator, to locate John Doe #1.  McMahon obtained sensitive information about John Doe #1, which he then reported back to Zhu and others, including a PRC police officer.  McMahon also conducted surveillance outside the New Jersey home of John Doe #1’s relative and provided Zhu and PRC officials with detailed reports of what he observed.  The operation was supervised and directed by several PRC officials, including a PRC police officer and a PRC prosecutor.

As proven at trial, McMahon knew the operation was intended not only to locate John Doe #1, but to coerce him to return to the PRC by exerting pressure on his family members.  In April 2017, PRC officials threatened to jail John Doe #1’s sister, who lived in the PRC, in order to coerce John Doe #1’s then-82-year-old father to travel from the PRC to their relative’s home in New Jersey.  John Doe #1’s father, who had recently suffered a brain hemorrhage, was so frail that a doctor accompanied him for the trip.  McMahon followed John Doe #1’s father from the relative’s New Jersey home, and, by doing so, was able to learn John Doe #1’s address. McMahon immediately provided this information to a PRC operative. 

On September 4, 2018, Zheng and another co-conspirator drove to the New Jersey residence of John Doe #1 and Jane Doe #1 – at the address that McMahon had provided – where they pounded on the front door, attempted to enter the house, and then peered through the windows in the back of the home.  They left a note on the front door informing John Doe #1 that his “wife and children will be okay” if John Doe #1 surrendered himself to face a ten-year prison term in the PRC.

McMahon knew that the subjects of his investigation were wanted by the PRC government, a fact that he texted about with another investigator he hired to help him.  Following his arrest, McMahon acknowledged knowing that his employers wanted to get the victim back to China “so they could prosecute him.”  After providing the victims’ address, McMahon told his surveillance partner that he was “waiting for a call” to find out what to do next.  McMahon’s partner responded, “Yeah.  From NJ State Police about an abduction,” to which McMahon responded “Lol.”  McMahon later suggested to a PRC co-conspirator that they “harass” John Doe #1 by “[p]ark[ing] outside his home and let[ting] him know we are there.”  McMahon took other investigative steps designed to harass the victims, such as researching their daughter’s university residence and college major.

McMahon was paid more than $19,000 in total for his role in the illegal repatriation scheme.  In an apparent attempt to conceal the source of payments from his PRC clients, McMahon deposited those payments into his son’s bank account, the only time he had done so with client payments.

Previously, in January 2025, Zhu and Zheng were sentenced respectively to 24 months’ and 16 months’ imprisonment.  Three additional co-defendants pleaded guilty in connection with their roles in the PRC-directed harassment and intimidation campaign.  They are awaiting sentencing.  Five co-defendants in the indictment, Hu Ji, Li Minjun, Tu Lan, Zhu Feng, and Zhai Yongqiang are fugitives.

The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States.  If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Meredith A. Arfa and Irisa Chen are in charge of the prosecution, with assistance from Trial Attorneys Christine A. Bonomo and Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.  Paralegal Specialist Rebecca Roth also has provided valuable assistance.

The Defendants:

MICHAEL MCMAHON
Age: 57
Mahwah, New Jersey

ZHU YONG
Age: 68
East Elmhurst, New York

CONGYING ZHENG
Age: 29
Brooklyn, New York

E.D.N.Y. Docket No. 21-CR-265 (S-1) (PKC)

Damon Rallis was sentenced today in federal court in Central Islip by United States District Judge Joan M. Azrack to 84 months in prison for distribution of child pornography.  As part of his sentence, Rallis, a former Town of Southold employee and scoutmaster with the Boy Scouts, will be required to register as a sex offender when he is released from prison.

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

“The defendant possessed and distributed horrific images of child sex abuse, including the brutal rape of young children, and the years he will serve in prison will both protect our communities and help to bring justice to victims who were sexually exploited as children,” stated United States Attorney Durham.  “My Office and our law enforcement partners will continue to work tirelessly to prosecute and seek significant prison sentences for individuals like Rallis who contribute to a depraved marketplace that causes the abuse of children to satiate the perverse demand for these disturbing images.”

“Damon Rallis violated his scoutmaster duty to serve as an ethical and moral leader by supplying obscene pornographic material to a twisted platform,” stated FBI Assistant Director in Charge Raia.  “His actions perpetuated the sexual abuse of young children without remorse. The FBI remains dedicated to holding accountable those who use the sexual exploitation of minors for personal gratification.”

As set forth in court filings and during the sentencing hearing, the FBI began investigating Rallis after his participation in a chat group on the Kik messaging app of users who shared child pornography.  An undercover agent who had joined the chat group received numerous images and videos of child pornography from the defendant, whose screenname was “dirtydaddy431.”  The images shared by Rallis included the rape of children as young as approximately five years old.  On February 23, 2021, FBI agents executed a search warrant at the defendant’s residence in Southold and seized several electronic devices, including his cell phone, which contained numerous images and videos of child pornography.  In an unrelated investigation into sexual exploitation of children, law enforcement recovered a series of chats with Rallis from the cell phone of another individual (the Iowa defendant).  In one of these chats, after the Iowa defendant described how he sexually abused his stepdaughter from age 4 to 7, Rallis stated: “She doesn’t remember bro.  You’re good.  The memories don’t really develop until nine or ten.  I would love that opportunity.”

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

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

The Defendant:

DAMON RALLIS
Age: 50
Southold, Long Island

E.D.N.Y. Docket No. 21-CR-150 (JMA)

The Justice Department filed a statement of interest today in the U.S. District Court for the Eastern District of New York supporting a claim by a religious Islamic organization that the Town of Oyster Bay violated its rights under the Religious Land Use and Institutionalized Persons Act (RLUIPA) when it denied the organization’s site plan application to expand its current facility into a mosque that would meet the religious needs of its congregation. 

The lawsuit alleges that Muslims on Long Island (MOLI) have worshipped at a mosque in Bethpage, Long Island, since 1998, but that it has grown and now needs additional space for prayer, religious education, ritual washing and religious counseling. In its complaint and motion for a preliminary injunction, MOLI claims that the Town’s recently revised zoning code imposes more onerous parking requirements on houses of worship than on comparable nonreligious places of assembly like theaters, museums and libraries. MOLI alleges that the Town denied its application to expand its house of worship, relying on the Town’s revised parking code.  The Department’s statement of interest supports MOLI’s argument that the zoning code treats religious uses less favorably than non-religious uses, in violation of RLUIPA’s equal terms provision, and that the Town has failed to justify this unequal treatment.

“RLUIPA prohibits local governments from imposing more onerous requirements on religious assemblies than comparable nonreligious assemblies,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Zoning codes violate RLUIPA when they single out religious uses for tougher restrictions than comparable secular uses.  The Civil Rights Division will continue to vigilantly enforce RLUIPA’s protections and ensure that religious groups have equal access to places to worship.” 

“Zoning regulations that unfairly restrict assemblies by faith-based groups violate federal law,” said United States Attorney John J. Durham for the Eastern District of New York.  “Municipalities cannot impose tougher parking or other land use standards on houses of worship than comparable secular assemblies. The Justice Department and my Office will vigorously protect the right of religious institutions to receive equal treatment under the law.”

RLUIPA is a federal law that protects persons and religious institutions from unduly burdensome, unequal, or discriminatory land use regulations. More information about RLUIPA and the department’s efforts to enforce it can be found on the Place to Worship Initiative’s webpage.

The department distributed a letter to state, county, and municipal leaders throughout the country to remind them of their obligations under RLUIPA, including its requirement that land use regulations treat religious assemblies and institutions at least as well as nonreligious assemblies and institutions. 

This matter is being handled by the Office’s Civil Division, Civil Rights Chief Michael J. Goldberger with Trial Attorneys Noah Sacks and Beth Pepper of the Justice Department’s Civil Rights Division.

Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Division’s Civil Rights Section at (718) 254-7000 or the Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the RLUIPA complaint portal. More information about RLUIPA, including questions and answers about the law and other documents, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php.

E.D.N.Y. Docket No.:  25-CV-428 (SJB)

A federal judge in Brooklyn today sentenced two men for trafficking protected birds and eggs into the United States in violation of the Endangered Species Act (ESA).

Dr. John Waldrop of Cataula, Georgia, was ordered to pay a $900,000 fine — one of the largest-ever for an ESA case — and serve three years of probation. Toney Jones of Eufala, Alabama, was sentenced to six months of probation. Waldrop pleaded guilty in August 2024 to conspiracy to smuggle wildlife and ESA violations, while Jones pleaded guilty to an ESA charge.

According to court documents and statements made in court, Waldrop amassed an extensive collection of 1,401 taxidermy bird mounts and 2,594 eggs which included:

• Four eagles protected by the Bald and Golden Eagle Protection Act,
• 179 bird and 193 egg species listed in the Migratory Bird Treaty Act, and
• 212 bird and 32 egg species covered by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). This included incredibly rare specimens like three eggs of the Nordmann’s Greenshank, an Asian shorebird with only 900 to 1,600 remaining birds in the wild; no North American museum has any Nordmann Greenshank eggs in their collection.

“Waldrop’s gigantic and rare bird collection was bolstered in part by illegal imports, where he and his enlisted co-conspirators intentionally avoided permit and declaration requirements,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “We applaud the efforts of the various federal and state law enforcement entities in investigating and prosecuting this case.”

“The scale of this investigation underscores the critical importance of protecting our natural resources,” said Assistant Director Douglas Ault of U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement. “Waldrop's collection included thousands of bird specimens and eggs, many of which are among the rarest in the world. This is one of the largest bird trafficking cases in history, and the commercialization of species protected under the Bald and Golden Eagle Protection Act, the Migratory Bird Treaty Act, and CITES highlights the conservation impact of Waldrop’s crimes. We at the U.S. Fish and Wildlife Service Office of Law Enforcement are unwavering in our commitment to safeguarding wildlife for future generations. We will remain vigilant and will continue to hold accountable those who exploit our shared natural resources for personal gain.”

Between 2016 and 2020, Waldrop imported birds and eggs without the required declarations and permits. After USFWS inspectors at John F. Kennedy International Airport and elsewhere intercepted several shipments, Waldrop recruited Jones, who worked on his Georgia farm, to receive the packages. Jones also deposited approximately $525,000 in a bank account that Waldrop then used to pay for the imports and hide his involvement. Waldrop and Jones used online sales sites such as eBay and Etsy to buy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom, and Uruguay.

Waldrop forfeited his collection. The USFWS National Fish and Wildlife Forensics Lab examined the items and determined it to be the largest seizure of bird mounts in their 37-year history. The ESA requires that all wildlife imports be declared to USFWS and have required permits, including species protected by CITES.

The USFWS Office of Law Enforcement in Valley Stream, New York, conducted the investigation as part of Operation Final Flight. The operation focused on the trafficking of protected birds into the United States. The U.S. Postal Inspection Service, U.S. Customs and Border Protection, and Alabama Department of Conservation and Natural Resources assisted with the investigation.

Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Anna Karamigios for the Eastern District of New York prosecuted the case.

A Brooklyn woman, Sinmyah Amera Ceasar, 30, a U.S. citizen, was sentenced today to serve 230 months in prison for three separately charged crimes: conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization; obstructing justice while released on bail pending sentencing; and failing to appear for court as required when she attempted to flee the United States. Ceasar pleaded guilty to the material support charge in February 2017, to the obstruction of justice charge in March 2019, and to the failure to appear charge in October 2022.

“Today’s re-sentencing marks the end of a righteous journey that began a decade ago,” said Sue J. Bai, head of the Justice Department’s National Security Division. “Terrorist organizations like ISIS rely on recruiters like Ceasar to attract, indoctrinate, and enlist new followers. The Department is committed to holding accountable those who seek to follow a similar path. Today was made possible by our prosecutors, staff, and members of the Joint Terrorism Task Force. We are grateful for their tireless pursuit of justice in this case.”

“With today’s sentence, Sinmyah Amera Ceasar, an unrepentant ISIS recruiter, will be incarcerated for a significant period of time to protect Americans here and abroad from her violent extremism,” said U.S. Attorney John J. Durham for the Eastern District of New York. “Even after pleading guilty to providing material support to ISIS, the defendant continued to support terrorists, obstructed justice and fled from prosecution. This office, together with the FBI, the NYPD, and all the members of the FBI Joint Terrorism Task Force, works tirelessly to pursue and hold accountable all those who support terrorism.”

“Ceasar pleaded guilty to helping ISIS, yet she continued on the same path by communicating with other ISIS supporters, “said Assistant Director David J. Scott of the FBI’s Counterterrorism Division. “Her actions demonstrate a failure to truly accept responsibility for her actions, and she ultimately cut off her electronic monitoring device and went on the run. Ceasar’s efforts failed and with today’s sentencing she is being held accountable for her criminal actions.”

Between January 2016 and November 2016, Ceasar used numerous social media accounts to praise, promote, and support ISIS and violent jihad and to disseminate ISIS propaganda. Ceasar posted under a variety of names, including her nom de guerre, or war name, “Umm Nutella,” which translates to “Mother of Nutella.” Ceasar developed contacts with ISIS members overseas, recruited individuals in the United States to travel overseas to join and fight for ISIS, and used her contacts with ISIS facilitators to attempt to help at least five people from the United States join ISIS abroad. Ceasar also expressed her own desire to travel to ISIS-controlled territory to join the group and die as a martyr.

In November 2016, Ceasar was arrested at John F. Kennedy International Airport as she prepared to board an international flight, which was to be the first leg of her journey to join ISIS. Ceasar pleaded guilty in February 2017 to conspiring to provide material support and resources to ISIS and agreed to cooperate with the government’s investigations of ISIS members and supporters.

In April 2018, Ceasar was released on bail, subject to court-ordered conditions of release. However, she violated those conditions, and her cooperation agreement with the government, by reconnecting with individuals she had identified to the government as supporters of ISIS. Ceasar attempted to conceal these communications from the government and the court, attempted to delete more than 1,000 electronic communications, and lied to the government about her conduct. The court revoked Ceasar’s bail in July 2018. Ceasar pleaded guilty to obstructing an official proceeding in March 2019.

In June 2019, the late U.S. District Judge Jack B. Weinstein sentenced Ceasar to 48 months in prison for the material support and obstruction offenses, and the government appealed. In August 2021, the U.S. Court of Appeals for the Second Circuit vacated the sentence imposed by Judge Weinstein, calling it “shockingly low, and unsupportable as a matter of law,” and sent the case back to the district court for resentencing.

While the appeal was pending, however, Ceasar completed serving this 48-month sentence in July 2020, and began serving an eight-year term of supervised release. Almost immediately after her release, Ceasar began to repeatedly violate the conditions of her supervision by downloading and using phone apps that she failed to report to the Probation Department, recontacting and communicating with ISIS supporters, soliciting funds from ISIS supporters, communicating with convicted felons, using extremist language, and deleting the evidence of her violations of these conditions of supervision.

In August 2021, after the Second Circuit issued its decision remanding her case for resentencing, Ceasar fled. On the day she was scheduled to appear before the Court, Ceasar removed her ankle bracelet location monitoring device, and fled New York City on a cross-country bus trip to New Mexico, setting off a nationwide fugitive investigation that led to her arrest in New Mexico two days later. The evidence established that Ceasar intended to escape the United States and travel to Russia, and that, while fleeing, she used an internet-based messaging application to contact an individual in Afghanistan to seek assistance to travel there. She sought assistance from the individual in Afghanistan in the hours after ISIS Khorasan carried out a bombing at Hamid Karzai International Airport in Kabul that killed hundreds, including 13 members of the U.S. Armed Forces. In connection with her flight from prosecution, Ceasar ultimately pleaded guilty to her third separate felony offense, a charge of failing to appear before the court as required, in October 2022.

After being returned to custody at the U.S. Bureau of Prisons’ Metropolitan Detention Center in Brooklyn to await sentencing, Ceasar routinely violated Bureau of Prisons institutional rules, circumvented telephone and email monitoring and use restrictions, and continued to communicate and associate with other ISIS supporters.

The government’s case is being prosecuted by Special Assistant U.S. Attorney Ian C. Richardson, currently of the National Security Division, and Assistant U.S. Attorney Andrew D. Reich of the Eastern District of New York’s National Security and Cybercrime Section.

Earlier today, in federal court in Brooklyn, Sinmyah Amera Ceasar, a U.S. citizen, was sentenced to a total term of 230 months’ imprisonment by United States District Judge Kiyo A. Matsumoto for three separately charged crimes: conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization; obstructing justice while released on bail pending sentencing; and failing to appear before the court as required when she attempted to flee the United States.  Ceasar pleaded guilty to the material support charge in February 2017, to the obstruction charge in March 2019, and to the failure to appear charge in October 2022.

John J. Durham, United States Attorney for the Eastern District of New York, Sue Bai, head of the Justice Department’s National Security Division, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

“With today’s sentence, Sinmyah Amera Ceasar, an unrepentant ISIS recruiter, will be incarcerated for a significant period of time to protect Americans here and abroad from her violent extremism,” stated United States Attorney Durham.  “Even after pleading guilty to providing material support to ISIS, the defendant continued to support terrorists, obstructed justice and fled from prosecution.  This Office, together with the FBI, the NYPD, and all the members of the FBI Joint Terrorism Task Force, work tirelessly to pursue and hold accountable all those who support terrorism.”

“Today’s re-sentencing marks the end of a righteous journey that began a decade ago,” stated Sue J. Bai, head of the Justice Department’s National Security Division.  “Terrorist organizations like ISIS rely on recruiters like Ceasar to attract, indoctrinate, and enlist new followers.  The Department is committed to holding accountable those who seek to follow a similar path.  Today was made possible by our prosecutors, staff, and members of the Joint Terrorism Task Force.  We are grateful for their tireless pursuit of justice in this case.”

“Sinmyah Amera Ceasar flagrantly ignored conditions of her prior arrest by rekindling former relationships with ISIS members and implementing a plan to personally abscond the country to join their cause,” stated FBI Assistant Director in Charge Raia.  “Her actions demonstrate little remorse for radicalizing other United States citizens and promoting ISIS's heinous ideologies. May today's sentencing reflect the FBI JTTF's relentless pursuit of any individual conspiring to participate in terrorist organizations.”

“This sentence is a fitting and meaningful outcome for a woman who assisted ISIS in recruiting, squandered the chance for redemption by exposing herself as cooperating with the U.S. government, and persisted in promoting extremist ideologies to potential new recruits online,” stated NYPD Commissioner Tisch.  “I commend our diligent NYPD investigators and all members of the FBI Joint Terrorism Task Force for their unwavering commitment to public safety.  The level of teamwork they demonstrate each day is crucial in ensuring the security of New York City and our nation.”

Between January 2016 and November 2016, Ceasar used numerous social media accounts to praise, promote, and support ISIS and violent jihad and to disseminate ISIS propaganda.  Ceasar posted under a variety of names, including her nom de guerre, or war name, “Umm Nutella,” which translates to “Mother of Nutella.”  Ceasar developed contacts with ISIS members overseas, recruited individuals in the United States to travel overseas to join and fight for ISIS, and used her contacts with ISIS facilitators to attempt to help at least five people from the United States join ISIS abroad.  Ceasar also expressed her own desire to travel to ISIS-controlled territory to join the group and die as a martyr.

In November 2016, Ceasar was arrested at John F. Kennedy International Airport as she prepared to board an international flight, which was to be the first leg of her journey to join ISIS.  Ceasar pleaded guilty in February 2017 to conspiring to provide material support and resources to ISIS, and agreed to cooperate with the government’s investigations of ISIS members and supporters.

In April 2018, Ceasar was released on bail, subject to court-ordered conditions of release.  However, she violated those conditions, and her cooperation agreement with the government, by reconnecting with individuals she had identified to the government as supporters of ISIS.  Ceasar attempted to conceal these communications from the government and from the court, attempted to delete more than 1,000 of her electronic communications, and lied to the government about her conduct.  The court revoked Ceasar’s bail in July 2018.  Ceasar pleaded guilty to obstructing an official proceeding in March 2019.

In June 2019, the late United States District Judge Jack B. Weinstein sentenced Ceasar to 48 months’ imprisonment for the material support and obstruction offenses, and the government appealed.  In August 2021, the United States Court of Appeals for the Second Circuit vacated the sentence imposed by Judge Weinstein, calling it “shockingly low, and unsupportable as a matter of law,” and sent the case back to the district court for resentencing.

While the appeal was pending, however, Ceasar completed serving the 48-month sentence in July 2020, and began serving an eight-year term of supervised release.  Almost immediately after her release, Ceasar began to repeatedly violate the conditions of her supervision by downloading and using phone apps that she failed to report to the Probation Department, recontacting and communicating with ISIS supporters, soliciting funds from ISIS supporters, communicating with convicted felons, using extremist language, and deleting the evidence of her violations of these conditions of supervision.

In August 2021, after the Second Circuit issued its decision remanding her case for resentencing, Ceasar fled.  On the day she was scheduled to appear before the Court, Ceasar removed her ankle bracelet location monitoring device, and fled New York City on a cross-country bus trip to New Mexico, setting off a nationwide fugitive investigation that led to her arrest in New Mexico two days later.  The evidence established that Ceasar intended to escape the United States and travel to Russia, and that while fleeing, she used an Internet-based messaging application to contact an individual in Afghanistan to seek assistance to travel there.  She sought assistance from the individual in Afghanistan in the hours after ISIS Khorasan carried out a bombing at Hamid Karzai International Airport in Kabul that killed hundreds, including 13 members of the U.S. Armed Forces.  In connection with her flight from prosecution, Ceasar ultimately pleaded guilty to her third separate felony offense, a charge of failing to appear before the Court as required, in October 2022.

After being returned to custody at the U.S. Bureau of Prisons’ Metropolitan Detention Center in Brooklyn to await sentencing, Ceasar routinely violated Bureau of Prisons institutional rules, circumvented telephone and email monitoring and use restrictions, and continued to communicate and associate with other ISIS supporters.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Special Assistant United States  Attorney Ian C. Richardson and Assistant United States Attorney Andrew Reich are in charge of the prosecution.

The Defendant:

SINMYAH AMERA CEASAR (also known as “Rita Daoudii,” “Qeuz,” “Umm Nutella,” “Amera Dawah Shakir,” “Bint Dawah Muslimah,” and “Qulli Allahu Akbar”)
Age: 30
Brooklyn, New York

E.D.N.Y. Docket Nos. 17-CR-48 (KAM), 19-CR-117 (KAM), and 22-CR-459 (KAM)     

Earlier today, in federal court in Brooklyn, Darnell Jones, also known as “EJ,” pleaded guilty to conspiring to engage in wire fraud and committing aggravated identity theft.  During the height of the COVID-19 pandemic from March 2020 through August 2021, Jones engaged in a fraud scheme using stolen personal identifying information to fraudulently obtain more than $800,000 from federally funded unemployment insurance programs established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  In addition, as part of his guilty plea, Jones admitted to fraudulently obtaining personal identifying information, including bank account information, between May 2021 and October 2024, to commit wire fraud with an intended victim loss of more than $3.5 million.  The proceeding was held before United States District Judge Dora L. Irizarry.  When sentenced, Jones faces up to 32 years in prison, with a mandatory minimum sentence of two years’ imprisonment.

John J. Durham, United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“Today, Jones admitted to his extensive fraud scheme to swindle millions of dollars of unemployment benefits by using the stolen identities of innocent victims,” stated United States Attorney Durham.  “Even worse, the federal funds were intended to provide relief to those most in need during the COVID-19 pandemic and instead were diverted by the defendant to finance violent crimes of the Ninedee gang in Brooklyn.  My Office and our law enforcement partners recognize that a key means of dismantling violent gangs is, as here, to cut off their sources of income.” 

Mr. Durham also thanked the U.S. Department of Labor, Office of the Inspector General and the New York State Department of Labor, Office of Special Investigations for their assistance on the case.

FBI Assistant Director in Charge Raia stated:  “Darnell Jones, a Ninedee gang member, financed illicit gang operations with millions of dollars in fraudulent unemployment benefits obtained with numerous stolen identities. For three years, the defendant jeopardized the city’s wellbeing and economic security in a global pandemic through this selfish diversion of critical funding. The FBI remains determined to curtail any mechanism fueling criminal gang activity, especially schemes targeting vulnerable citizens.”

“At the height of a global crisis, Darnell Jones exploited the identities of vulnerable New Yorkers to bankroll a violent gang’s criminal enterprise,” stated NYPD Commissioner Tisch.  “His guilty plea today is a powerful reminder that no scam is too sophisticated, no network too hidden – we will find you, and we will bring you to justice. I commend our investigators, the FBI, and the U.S. Attorney’s Office for their relentless pursuit of justice.”

According to court filings, witness testimony, and the record from the defendant’s detention hearing, Jones is a member of the Ninedee Gang, a violent criminal enterprise operating out of the Louis H. Pink Houses in East New York, Brooklyn, who led the gang’s fraud schemes.  Ninedee Gang members were affiliated with the “5” and “6” Pink Houses apartment buildings and engaged in gang-related violence within and outside of the New York City Housing Authority complex.  The Ninedee Gang protected its turf through violence, made money by selling drugs and committing fraud, and sought to silence those they perceived to be working with law enforcement.  Ninedee Gang members were responsible for the July 2020 murder of Shatavia Walls, a former federal witness who testified against a Ninedee Gang member in Brooklyn federal court in 2019.  Seven Ninedee Gang members have been prosecuted for their gang-affiliated crimes, including the murder in-aid-of-racketeering of Shatavia Walls. Five Ninedee defendants have pled guilty and a sixth, Maliek Miller, was convicted at trial in June 2024.  The remaining defendant, high-ranking Ninedee leader Raquel Dunton, is charged with drug trafficking and acting as an accessory after-the-fact to Walls’ murder, among other crimes, and is awaiting trial.

Jones and other Ninedee Gang members engaged in “scamming,” or various financial fraud schemes, including check fraud, postal money order fraud, and unemployment benefits fraud.  For example, beginning in approximately November 2020, Jones sent a co-conspirator text messages containing the names of 10 New York residents, the purpose of which was to obtain personally identifiable information (PII) for those individuals without their consent.  The co-conspirator sent Jones the requested individuals’ dates of birth, Social Security numbers, and driver’s license numbers.  In exchange, Jones paid the co-conspirator with cryptocurrency.  Subsequently, Jones submitted fraudulent claims for unemployment insurance benefits to the New York State Department of Labor using the stolen PII.  As introduced at the trial of Ninedee Gang leader Maliek Miller, text messages in 2020 showed that Jones coordinated with fellow Ninedee Gang member Kevin Wint about pooling their money to purchase “glicks” or “plates,” which are references to firearms.  Notably, in August 2021, law enforcement agents recovered two firearms, which were outfitted with laser sights, in a residence shared by Jones and Wint. 

The government’s case is being handled by the Office’s Organized Crime and Gang Section.  Assistant United States  Attorneys Emily J. Dean and Irisa Chen are in charge of the prosecution with the assistance of Paralegal Specialist Theodore Rader.

The Defendant:

DARNELL JONES (also known as “EJ”)
Age: 30
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-369 (DLI)

Earlier today, at a federal courthouse in Brooklyn, Francius Marganda was sentenced by United States District Judge Dora L. Irizarry to 18 years’ imprisonment for running a $24.5 million Ponzi scheme that defrauded hundreds of predominantly Indonesian and Indo-American victim investors. Marganda, an Indonesian national, led the scheme until it unraveled in 2021 and he fled the United States.  Marganda was extradited to the United States from Singapore in November 2023 and pleaded guilty to securities fraud in July 2024. As part of his sentence, Marganda was ordered to pay $8.5 million in restitution and $7.5 million in forfeiture.

John J. Durham, United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Michael Alfonso, Acting Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations, New York (HSI New York), announced the sentence.

“Marganda’s attempt to evade justice by fleeing halfway across the world to hide in fancy hotels was futile, as he found out today in a federal courtroom in Brooklyn,” stated United States Attorney Durham.  “No matter how far defendants may flee, this Office and our law enforcement partners will work tirelessly to make sure they are brought to justice.  It is my hope that this prosecution will bring some measure of relief to the victims of Marganda’s fraud, who trusted him with their life savings because of their shared nationality and were cruelly exploited by him.”

Mr. Durham expressed his appreciation to the Justice Department’s Office of International Affairs, particularly the DOJ Attachés based in Manila and Bangkok; law enforcement partners at the U.S. Embassy in Singapore, including the FBI’s Legal Attaché, the HSI Attaché, and the U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations Office; and Singaporean authorities, particularly the Singapore Police Force and Attorney-General’s Chambers, for their assistance with Marganda’s arrest and extradition to the United States.  Mr. Durham also thanked the Securities and Exchange Commission, Fort Worth Regional Office; the United States Attorney’s Office for the Southern District of New York; the Internal Revenue Service Criminal Investigation, New York; the Federal Trade Commission; the New York State Attorney General’s Office; the Commonwealth of Massachusetts Attorney General’s Office; the New York County District Attorney’s Office; the Queens County District Attorney’s Office; the New York City Police Department; the Westford Police Department, Westford, Massachusetts; the Richfield Police Department, Richfield, Minnesota; and the Lexington Police Department, Lexington, South Carolina, for their assistance in this matter.

Francius Marganda financially crippled hundreds of victims after collectively stealing millions of dollars to fund his personal lifestyle,” stated FBI Assistant Director in Charge Raia.  “The defendant enticed prospective investors across the globe with empty promises of guaranteed returns from his illegitimate companies, and subsequently created an alias to flee the country when his web of lies unraveled. The FBI will continue to pursue any individual who exploits others through fraudulent means, regardless of where they may hide.”

HSI New York Acting Special Agent in Charge Alfonso stated: “Francius Marganda’s heartless scheme caused irreparable emotional, psychological, and in some cases even physical damage to many of his more than 200 victims. Marganda swindled the innocent, well-meaning public out of over $23 million, and then fled the country as his shameless conspiracy crumbled. Marganda left hardworking families without money they desperately needed for crucial, life-altering expenses — among them, cancer treatments, medical procedures, and college tuition — and with no opportunities to recoup their lost savings. While no amount of prison time can make up for the irreversible pain Marganda and his co-conspirators have caused, we are thankful to the special agents and officers from HSI’s El Dorado Task Force, together with the FBI and the Eastern District of New York, for securing whatever justice possible on behalf of his victims.”   

From May 2019 to May 2021, while residing in New York after overstaying his visa, Marganda orchestrated a scheme to defraud investors by soliciting investments in two sham programs called Easy Transfer and Global Transfer, which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income.  Marganda and his co-conspirators promised rates of return as high as 200% or more.  On a near-daily basis, multiple investors were deceived into signing investment contracts.   

Marganda and his co-conspirators misappropriated the invested funds for their own benefit, including by buying real estate and luxury goods, and paying off credit card bills.  They also laundered proceeds into their bank accounts.  As an example, more than $3.8 million in scheme proceeds was transferred into just one of Marganda’s personal accounts over the course of 11 months, and more than $264,000 in proceeds in the account was used to pay off his credit card bills.

The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments to investors.  Marganda fled the United States, obtained an Indonesian passport under a fake name, and used the scheme funds to pay for lavish stays in luxury hotels around the world, including in France, the Maldives, Nepal, and Thailand, until he was apprehended abroad and extradited to the Eastern District of New York.

To date, 237 victims, ranging in age from 24 to 84, have identified losses of more than $24.5 million because of the defendant’s scheme.  The victims reside in the District of Columbia and at least 31 states, including New York, as well as in Indonesia and Malaysia.  Many of the victims had limited means and had pooled their resources with relatives and friends to make investments in U.S. dollars and Indonesian rupiah.

Judge Irizarry considered statements prepared by dozens of victims in connection with the sentencing hearing held earlier today.  Many reported that, as a result of the defendant’s conduct, they declared bankruptcy or lost nearly all of their savings.  Because of the financial loss, one victim struggled to pay for a family member’s chemotherapy, while another struggled to pay for medical expenses associated with a family member’s Stage 4 lung cancer diagnosis.  One victim lacked the funds to travel and pay respects after both of the victim’s parents died.    Multiple victims suffered other serious losses and hardships.

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Victor Zapana and Laura Zuckerwise are in charge of the prosecution, with assistance from Paralegal Specialist Kavya Kannan.

The Defendant:

FRANCIUS MARGANDA
Age:  42
Jakarta, Indonesia and formerly of Queens, New York

E.D.N.Y. Docket No. 22-CR-481 (DLI)

A seven-count indictment was unsealed today in federal court in Brooklyn charging José Adolfo Macías Villamar, also known as “Fito,” with international cocaine distribution conspiracy; international cocaine distribution; using firearms in furtherance of drug trafficking; smuggling firearms from the United States; and straw purchasing of firearms conspiracy.  Since at least 2020, he has been the leader of Los Choneros, one of Ecuador’s most violent drug trafficking and transnational criminal organizations.  The defendant is not in U.S. custody.

John J. Durham, United States Attorney for the Eastern District of New York; Derek Maltz, Acting Administrator of the U.S. Drug Enforcement Administration (DEA); L.C. Cheeks, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives; Newark Field Division, Atlantic City Satellite Office (ATF); and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (OEE), announced the charges.

“As alleged, the defendant was a ruthless leader and prolific drug trafficker for a violent transnational criminal organization.  By leading the Los Choneros’ network of assassins and drug and weapon traffickers and importing potentially lethal quantities of cocaine into the United States, the defendant has caused great harm to his own country and the United States, which was the destination for the vast majority of Los Choneros’ cocaine shipments,” stated United States Attorney Durham.

Mr. Durham praised the outstanding investigative work of the DEA’s Andean Region – Quito, Country Office, Special Operations Division-Bilateral Investigations Unit and Latin America/Caribbean Section, Joint Interagency Task Force South; U.S. Southern Command; the Government of Ecuador; the New Jersey State Police Casino Gaming Bureau; and the Department of Homeland Security, Homeland Security Investigations Atlantic City.  The Justice Department’s Office of International Affairs also provided significant assistance in this matter.

“The indictment of José Adolfo Macías Villamar marks a significant strike against the violent networks that flood our communities with dangerous drugs like cocaine — a clear message that no one fueling this deadly trade is beyond the reach of justice. This case highlights the tireless efforts of DEA, alongside our partners in the United States and Ecuador,” stated DEA Administrator Maltz.  “We will continue to work across borders to dismantle the supply chain of violent, criminal networks, which underscores the ongoing need for vigilance and collaboration in the fight against drug trafficking and cartel violence.”

“This investigation and charges are a testament to the combined efforts of law enforcement and underscores the resolve of ATF and our federal, state, and local partners. Drug trafficking and the heinous crimes associated with violent criminal organizations have an insidious impact on the public and tear apart the fabric of our communities. We will continue to use all the tools at our disposal, across the U.S. and around the globe, to combat violence, drug distribution, and the illegal sale and possession of firearms to safeguard the safety and well-being of all,” stated ATF Special Agent in Charge Cheeks.

“This indictment alleges the defendant and Los Choneros illegally smuggled firearms from the United States in furtherance of their violent drug trafficking operations,” said Special Agent in Charge Jonathan Carson of the Department of Commerce’s Bureau of Industry and Security (BIS), Office of Export Enforcement, New York Field Office.  “The Office of Export Enforcement will continue its efforts alongside its law enforcement partners to pursue those who violate export laws, wherever they may be, worldwide.”

As alleged in the indictment, from at least 2020 to 2025, Macías Villamar was the principal leader of Los Choneros, one of the most violent and powerful transnational criminal organizations in Ecuador.  Los Choneros, in partnership with the Sinaloa Cartel in Mexico, controlled key cocaine trafficking routes through Ecuador and operated a large-scale network responsible for the shipment and distribution of multi-ton quantities of cocaine from South America through Central America and Mexico to the United States and elsewhere.  The vast majority of drugs trafficked by Los Choneros were imported into the United States.

As the principal leader of Los Choneros, Macías Villamar employed members of the organization to carry out serious acts of violence on the organization’s behalf.  At Macías Villamar’s direction, Los Choneros committed violent acts towards law enforcement, Ecuadorian politicians, attorneys, prosecutors and civilians. Los Choneros obtained many of their firearms and weapons by illegally trafficking and exporting them from the United States.  As alleged, the defendant specifically employed individuals who purchased firearms, firearms components and ammunitions on Los Choneros’ behalf in the United States and then illegally smuggled them to Ecuador.

Moreover, in furtherance of their drug trafficking operation, Los Choneros relied on “sicarios,” or hitmen, as well as corruption and bribe payments, to ensure protection and loyalty to Los Choneros. These “sicarios” regularly used military-grade weapons, like machine guns, AK-47 assault rifles and grenades to perpetrate violence, including murder, torture and kidnapping.  Macías Villamar and the Los Choneros organization have also been sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison and up to life in prison.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, and as part of the work of the Office’s Transnational Criminal Organizations Strike Force.  Assistant United States Attorneys Chand Edwards-Balfour and Lorena Michelen are in charge of the prosecution.

The Defendant:

JOSÉ ADOLFO MACÍAS VILLAMAR (also known as “Fito”)
Age: 45
Ecuador

E.D.N.Y. Docket No.: 25-CR-114 (FB)

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, a complaint was unsealed charging Iranian nationals Hossein Akbari and Reza Amidi, and an Iran-based Rah Roshd Company (“Rah Roshd”), with conspiring to procure U.S. parts for Iranian Unmanned Aerial Vehicles (“UAVs”), also known as drones, conspiring to provide material support to the IRGC, a designated foreign terrorist organization, and conspiring to commit money laundering.  Akbari is the Chief Executive Officer (“CEO”) of Rah Roshd. Amidi is the company’s commercial manager and was previously the commercial manager of Qods Aviation Industries (“QAI”), an Iranian state-owned aerospace company.  They are both citizens of Iran and remain at large.

John J. Durham, United States Attorney for the Eastern District of New York, Sue Bai, head of the Justice Department’s National Security Division, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged in the complaint, the defendants conspired to obtain U.S.-origin parts needed to manufacture drones for military use in Iran and send those parts to Iran in violation of export control laws,” stated United States Attorney Durham.  “The charges filed today demonstrate the commitment by my Office and our law enforcement partners to dismantle illicit supply chains and prosecute those who unlawfully procure U.S. technology in support of a foreign terrorist organization.  The IRGC and Qods Aviation Industries have been core players in the Iranian military regime’s production of drones, which threaten the lives of civilians, U.S. personnel, and our country’s allies.  These charges should serve as a warning to those who violate U.S. export control laws and who unlawfully seek to aid Iran’s drone program.”

Mr. Durham expressed his appreciation to the FBI and the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) for their work on the case.  Today, OFAC sanctioned Akbari, Rah Roshd, and other companies and individuals for their roles in the sanctions-evasion scheme described in the complaint.  OFAC previously sanctioned Amidi.

“Today’s charges lay bare how U.S.-made technology ended up in the hands of the Iranian military to build attack drones,” stated Sue J. Bai, head of the Justice Department’s National Security Division.  “The Justice Department will continue to put maximum pressure on the Iranian regime. We will relentlessly dismantle illicit supply chains funneling American technology into the hands of Iran’s military and terrorist organizations and pursue those complicit in operations that threaten our country.”

“Hossein Akbari and Reza Amidi allegedly engaged in a multi-year conspiracy to obtain U.S. technology for use in Iranian made drones in violation of export laws and to provide material support to the IRGC—a designated terrorist organization,” stated FBI Assistant Director in Charge Raia.  “The Iranian government has repeatedly demonstrated they are willing to violate the laws of our nation—this time utilizing dishonest businessmen who deliberately misrepresented themselves—in order to further their treacherous goals.  The FBI will continue to protect the national security and interests of the United States through vigorous enforcement of export control laws put in place to prevent sensitive U.S. technology from being obtained by hostile foreign governments.”

As set forth in the complaint, Akbari and Amidi operate Rah Roshd, which procures and supplies advanced electronic, electro-optical, and security systems to the Government of Iran and designs, builds, and manufactures ground support systems for UAVs.  Akbari serves as the CEO and Managing Director of Rah Roshd, and Amidi serves as the Commercial Manager.  Rah Roshd’s clients include the IRGC and several Iranian state-owned aerospace companies and drone manufacturers, including QAI, Iran’s Ministry of Defense and Armed Forces Logistics (“MODAFL”), Shahed Aviation Industries Research Center (“SAIRC”), and Shahid Bakeri Industrial Group (SBIG).

Between January 2020 and the present, Amidi and Akbari used Rah Roshd in furtherance of a scheme to evade U.S. sanctions and procure U.S.-origin parts for use in Iranian-manufactured UAVs, including the Mohajer-6 UAV.  At least one of those parts was manufactured by a Brooklyn, New York-based company (“Company-1”).  In September 2022, the Ukrainian Air Force shot down an Iranian-made Mohajer-6 drone used by the Russian military in Ukraine.  The drone recovered by the Ukrainian Air Force contained parts made by several U.S. companies, including Company-1.

To facilitate their scheme, Amidi and Akbari falsely purported to represent companies other than Rah Roshd, including a company based in the United Arab Emirates (“Company-2”) and a company based in Belgium (“Company-3”).  The defendants used a “spoofed” email address with a misspelled version of Company-2’s name to communicate regarding the procurement of parts, including parts manufactured by U.S. companies.  The defendants also used various “front” or “shell” companies to pay for UAV parts and to obfuscate the true end destination and the true identities of the sanctioned end users, including QAI and the IRGC, which were acquiring U.S.-made parts through Rah Roshd.  Amidi and Akbari also used aliases to obfuscate their true identities in furtherance of the scheme.

Additionally, the defendants conspired to provide material support to the IRGC by providing goods and services for the benefit of the IRGC’s military campaign. This included constructing military shelters, providing cameras and drone field hangers, and conspiring to procure drone parts as well as parts to operate drones, including “servo motors,” “pneumatic masts,” which are a component of the operation of the Mohajer-6 drone, and engines.  The investigation uncovered correspondence from the IRGC, signed by the head of the UAV Command for the IRGC’s Aerospace Force, thanking Rah Roshd for its work on behalf of the IRGC and praising Rah Roshd’s achievements in designing and manufacturing servo motors for defense equipment.  The letter included a quote from the Supreme Leader of Iran regarding the importance of self-sufficiency and domestic production to strengthen Iran’s economy and “disappoint the enemies of the Islamic Republic.”  The letter also noted continued efforts of Rah Roshd “in strengthening the defensive capabilities of the Islamic Republic of Iran.”  Both Amidi and Akbari possessed documents indicating that they had purchased servo motors for delivery to Iran, including a servo motor contained in the Mohajer-6 drone.  Akbari also emailed supply companies located in China and noted that he was purchasing parts for drones to be shipped to Iran.

Finally, Amidi and Akbari conspired to commit money laundering.  They used at least three shell companies, all based in the United Arab Emirates, to pay a China-based company that sent invoices to Rah Roshd for the sale of motors.  Those payments were processed through U.S.-based correspondent bank accounts. The defendants also used two of these shell companies to pay a separate China-based company for the sale of pneumatic masts.

Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

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

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States  Attorneys Nina C. Gupta and Lindsey R. Oken are in charge of the prosecution with the assistance of Paralegal Specialist Rebecca Roth, along with Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section and Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section. 

The Defendants:

HOSSEIN AKBARI (also known as “Danial Yousef” and “Danial White”)
Age: 63
Iran

REZA AMIDI (also known as “Ali Rahmani”)
Age: 62
Iran

RAH ROSHD COMPANY
Tehran, Iran

E.D.N.Y. Docket No. 25-MJ-114

A criminal complaint was unsealed today charging Hossein Akbari, 63, and Reza Amidi, 62, both of Iran, and an Iranian company, Rah Roshd Company (Rah Roshd), with conspiring to procure U.S. parts for Iranian Unmanned Aerial Vehicles (UAVs, also known as drones), conspiring to provide material support to the IRGC – a designated foreign terrorist organization – and conspiring to commit money laundering.

Akbari is the Chief Executive Officer (CEO) of Rah Roshd. Amidi is the company’s commercial manager and was previously the commercial manager of Qods Aviation Industries (QAI), an Iranian state-owned aerospace company. They are both citizens of Iran and remain at large.

“Today’s charges lay bare how U.S.-made technology ended up in the hands of the Iranian military to build attack drones,” said Sue J. Bai, head of the Justice Department’s National Security Division. “The Justice Department will continue to put maximum pressure on the Iranian regime. We will relentlessly dismantle illicit supply chains funneling American technology into the hands of Iran’s military and terrorist organizations and pursue those complicit in operations that threaten our country.”

“As alleged in the complaint, the defendants conspired to obtain U.S.-origin parts needed to manufacture drones for military use in Iran and send those parts to Iran in violation of export control laws,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The charges filed today demonstrate the commitment by my office and our law enforcement partners to dismantle illicit supply chains and prosecute those who unlawfully procure U.S. technology in support of a foreign terrorist organization. The IRGC and QAI have been core players in the Iranian military regime’s production of drones, which threaten the lives of civilians, U.S. personnel and our country’s allies. These charges should serve as a warning to those who violate U.S. export control laws and who unlawfully seek to aid Iran’s drone program.”

“The allegations in this case demonstrate the lengths Iranian companies take to evade U.S. sanctions, victimize U.S. businesses, and support the IRGC's production of drones,” said Assistant Director Roman Rozhavsky of the FBI's Counterintelligence Division. “The FBI and our partners will use all authorities to stop those who seek to evade sanctions and engage in money laundering schemes that support terrorist activities and threaten the lives and interests of Americans and our allies.”

According to court documents, Akbari and Amidi operate Rah Roshd which procures and supplies advanced electronic, electro-optical and security systems to the Government of Iran and designs, builds, and manufactures ground support systems for UAVs. Rah Roshd’s clients include the IRGC and several Iranian state-owned aerospace companies and drone manufacturers, including QAI, Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), Shahed Aviation Industries Research Center (SAIRC) and Shahid Bakeri Industrial Group (SBIG).

Between January 2020 and the present, Amidi and Akbari used Rah Roshd in furtherance of a scheme to evade U.S. sanctions and procure U.S.-origin parts for use in Iranian-manufactured UAVs, including the Mohajer-6 UAV. At least one of those parts was manufactured by a Brooklyn, New York-based company (Company-1). In September 2022, the Ukranian Air Force shot down an Iranian-made Mohajer-6 drone used by the Russian military in Ukraine. The drone recovered by the Ukrainian Air Force contained parts made by several U.S. companies, including Company-1)

To facilitate their scheme, Amidi and Akbari falsely purported to represent companies other than Rah Roshd, including a company based in the United Arab Emirates (UAE) (Company-2) and a company based in Belgium (Company-3). The defendants used a “spoofed” email address, containing a misspelled version of Company-2’s name, to communicate regarding the procurement of parts, including parts manufactured by U.S. companies. The defendants also used various “front” or “shell” companies to pay for UAV parts and to obfuscate the true end destination and the true identities of the sanctioned end users, including QAI and the IRGC, which were acquiring U.S.-made parts through Rah Roshd. Amidi and Akbari also used aliases to obfuscate their true identities in furtherance of the scheme.

Additionally, the defendants conspired to provide material support to the IRGC by providing goods and services, including constructing military shelters, providing cameras and drone field hangers and conspiring to procure drone parts as well as parts to operate drones, including servo motors, pneumatic masts, and engines, for the benefit of the IRGC’s military campaign. The investigation uncovered correspondence from the IRGC, signed by the head of the UAV Command for the IRGC’s Aerospace Force, thanking Rah Roshd for its work on behalf of the IRGC and praising Rah Roshd’s achievements in designing and manufacturing “servo motors” for defense equipment. The letter also included a quote from the Supreme Leader of Iran regarding the importance of self-sufficiency and domestic production to strengthen Iran’s economy and “disappoint the enemies of the Islamic Republic.”  The letter also noted continued efforts of Rah Roshd “in strengthening the defensive capabilities of the Islamic Republic of Iran.” Both Amidi and Akbari possessed documents indicating that they had purchased servo motors for delivery to Iran, including a servo motor contained in the Mohajer-6 drone. Akbari also emailed supplier companies located in the People’s Republic of China (PRC) and noted that he was purchasing parts for drones to be shipped to Iran.

Finally, Amidi and Akbari conspired to commit money laundering. They used at least three shell companies, which were all based in the UAE, to pay a PRC-based company that sent invoices to Rah Roshd for the sale of motors. Those payments were processed through U.S.-based correspondent bank accounts. The defendants also used two of these shell companies to pay a separate PRC-based company for the sale of pneumatic masts, which are a component of the operation of the Mohajer-6 drone.

Concurrent with today’s criminal complaint, the Department of Treasury announced sanctions targeting a network of six entities and two individuals based in Iran, the UAE, and the PRC responsible for the procurement of UAV components on behalf of QAI — a leading manufacturer for Iran’s UAV program. According to the Treasury, this network has also facilitated procurement for other entities in Iran's military-industrial complex, including Iran Aircraft Manufacturing Industrial Company (HESA) and SBIG. Today’s action marks the second round of sanctions targeting Iranian weapons proliferators since the President issued National Security Presidential Memorandum 2 on Feb. 4, ordering a campaign of maximum pressure on Iran.

Assistant U.S. Attorneys Nina C. Gupta and Lindsey R. Oken for the Eastern District of New York are prosecuting the case, with the assistance of Paralegal Specialist Rebecca Roth, Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section.

Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

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

This morning, in federal court in Central Islip, David Ibarra was arraigned on an indictment charging him with sexual exploitation of a child, coercion, and enticement.  Ibarra, an active-duty senior airman in the United States Air Force, was initially charged by complaint in February 2025 and ordered detained in Anchorage, Alaska, before his transfer to the Eastern District of New York.  Today’s proceeding was held before United States District Court Judge Joanna Seybert who ordered the defendant detained pending trial.

John J. Durham, United States Attorney for the Eastern District of New York and Leslie Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged, the defendant, a 31-year-old man posing as a 13-year-old boy, manipulated a vulnerable child into producing and sending him sexually explicit images and videos of herself via text message in exchange for money,” stated United States Attorney Durham.  “My Office will continue its relentless pursuit of sexual predators who target children and work to secure lengthy prison sentences in these cases to protect our community and children from such conduct.”

“As alleged in the indictment, this individual targeted and then repeatedly coerced a child into sending him sexually explicit photos and videos of herself—produced at his specific direction—in exchange for money,” stated FBI Acting Assistant Director in Charge Backschies. “The FBI is committed to finding and arresting the monsters who prey on vulnerable children, and we will continue to work with our partners to ensure these predators are off the streets and behind bars where they can no longer pose a danger to our communities.”

As set forth in court filings, law enforcement identified Ibarra from cell phone records obtained for an individual who was communicating, via text message, with a 9-year-old girl living in Suffolk County, New York, and soliciting sexually explicit images and videos from her in exchange for money.  During these communications, Ibarra, who claimed to be a 13-year-old boy named “Dave” living in Texas, repeatedly pressured the victim to send him more images and gave her specific directions as to what sexually explicit poses he wanted her to record (“Can we be a little dirty before we go to sleep?  Pls and I’ll send money…”).  Ibarra made approximately 17 payments to the victim’s Apple Pay account to induce her to continue producing sexually explicit images for the defendant’s gratification.  

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

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges, Ibarra faces a mandatory minimum sentence of 15 years in prison and up to 30 years in prison. 

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

The Defendant:

DAVID IBARRA
Age:  31
Anchorage, Alaska

E.D.N.Y. Docket No. 25-CR-90 (JS)

Earlier today, in federal court in Brooklyn, Walter Stanzione and William Neogra, the principals of a fire alarm maintenance company, pleaded guilty to wire fraud conspiracy.  Both defendants were charged with a decade-long scheme to defraud the City of New York by seeking payment on millions of dollars of grossly inflated fraudulent bills.  The proceedings were held before United States Magistrate Judge Joseph A. Marutollo.  When sentenced, each defendant faces up to 20 years in prison.

John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York) announced the charges.

“For over a decade, the City of New York relied on the defendants to ensure that the fire safety systems in hundreds of city buildings were in safe, working order,” stated United States Attorney Durham. “The defendants abused this position of trust so that they could scheme and steal, defrauding New York City out of millions of dollars.  The guilty pleas announced today make clear that reprehensible conduct like this will be uncovered and prosecuted.”

“Millions of dollars went up in smoke as Walter Stanzione and William Neogra fraudulently inflated the cost of their company’s products to finance personal luxurious purchases,” stated Acting FBI Assistant Director in Charge Backschies.  “For more than ten years, the defendants charged various New York City clients exaggerated pricing for fire alarm systems and obfuscated this misconduct through doctored invoices.  The FBI remains determined to protect our city’s citizens and infrastructure from criminals seeking to unlawfully profit with little concern for safety.”

“Stanzione and Neogra orchestrated a scheme to defraud the City of New York.  They created shell companies to pass-through supplies sold to NYC agencies at inflated prices with false invoices.  Millions of dollars were billed over a decade, and the excessive profit left these fraudsters living large.  Today’s plea means the defendants’ lifestyle will go from extravagant in size to a reduction in square feet,” stated IRS-CI New York Special Agent in Charge Chavis.

“These defendants systematically inflated costs billed to multiple City agencies—including the Department of Citywide Administrative Services, the Department of Education, the Department of Environmental Protection, and the Department of Sanitation, for more than a decade,” stated DOI Commissioner Strauber.  “When vendors exploit their contractual relationship with the City by overbilling, they steal public funds from City taxpayers.  I thank our federal law enforcement partners for their commitment to protect the City’s resources and to ensure vendors who commit fraud are held responsible.”

As set forth in various public court filings and in today’s proceedings, the defendants exercised control over Fire Alarm Electrical Corp., a company that held numerous contracts with New York City agencies to repair and maintain fire alarm systems.  For more than a decade, the defendants overbilled those agencies by submitting fraudulent invoices with dramatically inflated prices.  They accomplished this scheme in several ways:

• The defendants created numerous shell companies that were secretly owned by defendant Stanzione.  After purchasing supplies from legitimate retailers, the defendants would re-invoice the parts through the shell companies for roughly three to five times the real purchase price, ultimately passing along those “costs” to the City.
• The defendants took advantage of pre-existing shell companies that were being used in other ongoing frauds.  For example, the defendants used shell companies created by convicted EDNY defendant David Motovich, which Motovich had used in an entirely separate fraud scheme that was also investigated and prosecuted by EDNY, FBI, DOI and IRS (21-CR-497).
• When city auditors became suspicious of the shell companies, the defendants fraudulently modified the documents of legitimate retailers, passing off the altered invoices from these companies as if they were genuine.

These methods enabled the defendants to submit millions of dollars of fictitious payment requests to four separate city agencies over an eleven-year period.  Defendant Stanzione, the leader of the fraud, then siphoned off much of the ill-gotten gains and used the stolen money to fund his family’s lavish spending habits.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States  Attorneys Erik Paulsen, Michael Gibaldi and Eric Silverberg are in charge of the prosecution, with the assistance of Paralegal Specialist Kavya Kannan.

The Defendants:

WALTER STANZIONE
Age: 66
East Meadow, Long Island

WILLIAM NEOGRA
Age: 65
Millsboro, Delaware

E.D.N.Y. Docket No. 23-CR-482 (RPK)

今天早些時候，在布魯克林聯邦法院,一份已公佈的起訴書指控湯米·艾傑·達·席爾瓦·翁（Tommy Aijie Da Silva Weng，又名“湯米·翁·達席爾瓦”或“Jacky”）犯有電信欺詐、郵件欺詐以及冒充聯邦執法人員，併計謀詐騙一名個人，他聲稱可以協助她通過 EB-5 移民投資者簽證計劃（EB-5 計劃）獲得綠卡。 翁先生 於今天上午被捕以及 定於今天下午接受美國地方法院法官 Lara Eshkenazi 的審訊。

美國紐約東區檢察官約翰 J.達勒姆 (John J. Durham) 和聯邦調查局紐約地區辦事處（FBI）代理助理主任萊斯利·巴克希斯 (Leslie Backschies) 宣布了逮捕和指控。

美國檢察官達勒姆表示： “據稱，翁某謊稱自己是聯邦執法人員，以獲取毫無戒心的受害者的信任。” 「被告利用受害者想要成為美國公民並追求美國夢的願望，不僅竊取了這一夢想，還竊取了數十萬美元。今天，真正的執法人員給這名詐騙犯戴上了手銬，他將為自己的罪行付出代價。” 美國聯邦調查局代理助理局長巴克斯奇斯稱： “據稱，八年多來，湯米·翁偽造了一名聯邦執法人員的身份，用華麗的道具和保證合法身份的空洞保證，從弱勢受害者手中騙取了數十萬美元。” 「這名涉嫌冒名頂替者將一個受人尊敬的職業變成了一場精心策劃的陰謀，同時違背了公眾對執法部門的信任。聯邦調查局將繼續逮捕任何利用權力牟取不法利益的個人。

根據法庭文件，該詐騙案始於 2016 年 4 月，當時翁某向受害者 (Jane Doe) 謊稱自己是聯邦執法人員，並解釋說，如果受害者向他投資 50 萬美元，他就可以動用其執法關係，幫助她透過 EB-5 移民投資者計劃快速獲得綠卡。 翁先生向 Jane Doe 展示了一枚執法徽章，並給了她一張印有他名字的「聯邦警官協會」名片。 還有一次，翁先生告訴 Jane Doe，他曾在美國國土安全部工作，現在將調往義大利國際刑警組織擔任新的執法職務。 翁先生駕駛著一輛紅色悍馬車，車牌上印有「ICE」的縮寫，這顯然是指聯邦執法機構移民和海關執法局。

根據翁的陳述，Jane Doe 向翁提供了 50 萬美元作為簽證費用。 翁先生沒有將 Jane Doe 提供的錢用於投資，也沒有代表她提交簽證申請，而是將錢據為己有，並用一系列謊言欺騙受害者，解釋為何簽證申請過程被拖延了大約八年。

起訴書中的控告均為指控，除非被證明有罪，否則被告將先被假定無罪。 一旦罪名成立，被告將面臨最高23年監禁。

任何知曉翁某犯罪行為的人，請聯絡聯邦調查局，信箱為：NY_WengTips@fbi.gov

該政府案件由該辦公室的普通犯罪科處理。該政府案件由美國助理檢察官納迪亞·E·摩爾 (Nadia E. Moore) 和丹尼爾·J·馬庫斯 (Daniel J. Marcus) 起訴。

被告：

湯米·艾傑·達·席爾瓦·翁

TOMMY AIJIE DA SILVA WENG
年齡：49歲
紐約皇后區

紐約東區卷宗編號 25-CR-94 (NGG)

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Tommy Aijie Da Silva Weng, also known as “Tommy Weng Da Silva” and “Jacky,” with wire fraud, mail fraud and impersonating a federal law enforcement officer in connection with a scheme to defraud an individual by claiming that he could assist her in obtaining a green card through the EB-5 Immigrant Investor Visa Program (the EB-5 Program).  Weng was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Lara K. Eshkenazi.

John J. Durham, United States Attorney for the Eastern District of New York and Leslie Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.

“As alleged, Weng falsely represented himself as a member of federal law enforcement to gain the trust of an unsuspecting victim,” stated United States Attorney Durham.  “The defendant preyed on the victim’s desire to become a United States citizen and pursue the American dream, then stole not only that dream, but also hundreds of thousands of dollars.  Today, real law enforcement agents put the handcuffs on this fraudster and he will now have to answer for his crimes.”

“For nearly eight years, Tommy Weng allegedly curated a false persona of a federal law enforcement officer with flashy props and empty assurances of guaranteed lawful status to swindle a vulnerable victim of hundreds of thousands of dollars,” stated FBI Acting Assistant Director in Charge Backschies. “This alleged imposter twisted a respected profession into an elaborate scheme while violating the public’s trust in law enforcement. The FBI will continue to apprehend any individual who exploits an authoritative position to garner illicit profits.”

According to court filings, the fraud scheme began in April 2016, shortly thereafter Weng falsely claimed to the victim (Jane Doe) that he was a federal law enforcement agent, explaining that he was able to use his law enforcement connections to assist her with obtaining a green card through the EB-5 Program on an expedited basis if she invested $500,000 with him.  Weng showed Jane Doe a law enforcement badge and gave her a business card from the “Federal Officers Police Association” bearing his name.  On another occasion, Weng told Jane Doe that he worked for the United States Department of Homeland Security and that he was transferring to a new law enforcement position with INTERPOL in Italy. Weng drove a red Hummer vehicle with the vanity license plate that included the acronym “ICE,” an apparent reference to the federal law enforcement agency Immigration and Customs Enforcement.

Based on Weng’s representations, Jane Doe provided Weng with $500,000 for a visa. Instead of investing the money that Jane Doe provided him, or submitting a visa application on her behalf, Weng pocketed the money and strung the victim along with a series of lies about why the process was delayed for approximately eight years.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, the defendant faces a maximum sentence of 43 years’ imprisonment.

Anyone with information about crimes committed by Weng should contact the FBI at NY_WengTips@fbi.gov

The government’s case is being handled by the Office’s General Crimes Section. The government’s case is being prosecuted by Assistant United States  Attorneys Nadia E. Moore and Daniel J. Marcus.

The Defendant:

TOMMY AIJIE DA SILVA WENG
Age:  49
Queens, New York

E.D.N.Y. Docket No. 25-CR-94 (NGG)

Earlier today, in federal court in Brooklyn, defendant Quanzhong An, 58, of Roslyn Heights, New York, was sentenced to 20 months in prison for acting as an illegal agent of the government of the People’s Republic of China (PRC), for his participation in a scheme to cause the coerced repatriation of a U.S. resident (the U.S. Resident) to the PRC as part of the PRC government’s international extralegal repatriation effort known as “Operation Fox Hunt.” In addition to the term of imprisonment, An was ordered to pay a financial penalty of approximately $5 million, including approximately $1.3 million in restitution to the U.S. Resident and his family, as well as a $50,000 fine. An pleaded guilty in May 2024 and was charged in October 2022.

As set forth in the government’s sentencing memoranda and other court filings, An was a leading member of an international campaign to threaten, harass, and intimidate the U.S. Resident and his family members, with the goal of coercing the U.S. Resident to repatriate to the PRC. An participated in the multi-year scheme to elevate his status within the PRC government as a means of furthering his own economic interests.

An’s involvement in the repatriation scheme began in 2017, when he attempted to locate the U.S. Resident by visiting the home of the U.S. Resident’s adult son, without notice or invitation. The following year, An sent his daughter, as well as two PRC government officials, to the home of the U.S. Resident’s son. An subsequently met with the U.S. Resident’s son on numerous occasions, during which time An served as a mouthpiece for the PRC by conveying threatening messages on behalf of the PRC government. For example, An said he did not want to pronounce “ruthless words” from the PRC government but stated that PRC officials would “keep pestering [the U.S. Resident’s son], [and] make [his] daily life uncomfortable” if the son was unable to convince his father to repatriate to the PRC. An’s harassment continued unabated from 2017 until his arrest in 2022. An’s conduct intimidated individuals living in the United States and their loved ones in the PRC – just as it was intended to do – for the benefit of the PRC government.

At sentencing, Judge Matsumoto considered that An participated in additional criminal conduct. Specifically, he perpetrated a bank fraud and money laundering scheme to defraud U.S. financial institutions so that he could enjoy continued access to U.S.-based bank accounts. As part of this scheme, he moved millions of dollars from the PRC into the United States, deliberately deceiving U.S. financial institutions regarding the source and purpose of the funds.

The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit the FBI’s website.

Supervisory Official Sue Bai, head of the Justice Department’s National Security Division, U.S. Attorney John J. Durham for the Eastern District of New York, and Acting Assistant Director in Charge Leslie R. Backshies of the FBI New York Field Office made the announcement.

Assistant U.S. Attorneys Alexander Solomon, Meredith A. Arfa, and Antoinette N. Rangel for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. Claire S. Kedeshian of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters and Madeline O’Connor and Daniel Saavedra of the Eastern District of New York’s Financial Litigation Program are assisting with restitution matters. 

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, defendant Quanzhong An was sentenced by United States District Judge Kiyo A. Matsumoto to 20 months in prison for acting as an illegal agent of the government of the People’s Republic of China (the “PRC”), for his participation in a scheme to cause the coerced repatriation of a U.S. resident (the “U.S. Resident”) to the PRC as part of its international extralegal repatriation effort known as “Operation Fox Hunt.”  In addition to the term of imprisonment, Judge Matsumoto ordered An to pay a financial penalty of approximately $5 million, including approximately $1.3 million in restitution to the U.S. Resident and his family, as well as a $50,000 fine.  An pleaded guilty in May 2024 and was charged in October 2022.

John J. Durham, United States Attorney for the Eastern District of New York, Sue Bai, Supervisory Official and head of the Justice Department’s National Security Division and Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (“FBI”) announced the sentences.

“Quanzhong An acted at the direction of the PRC government to harass and intimidate individuals living on U.S. soil as part of a pernicious scheme to force their repatriation to the PRC,” stated United States Attorney Durham.  “Thanks to our collective efforts, the scheme failed, and the defendant has been brought to justice.  Our Office remains steadfast in its efforts to protect both U.S. national security interests and individuals living in our District from transnational repression schemes perpetrated by hostile foreign powers.”

Mr. Durham expressed his appreciation to the Internal Revenue Service, Criminal Investigations for its work on the case.

“For years, Quanzhong An threatened, harassed, and attempted to intimidate a U.S. resident and his family at the behest of the People’s Republic of China, with the ultimate goal of strong-arming the individual into leaving the United States and returning to China to face an unknown fate.  Today’s sentencing represents justice for this victim and his family, and demonstrates to others that the FBI is committed to protecting all victims of transnational repression,” stated FBI Acting Assistant Director in Charge Backschies.  “Threats, harassment, and intimidation – whether perpetrated by individuals or nation states – will not be tolerated in this country, and the FBI will continue to lead the charge to protect all individuals who are threatened and harassed on U.S. soil.”

As set forth in the government’s sentencing memoranda and other court filings, An was a leading member of an international campaign to threaten, harass, and intimidate the U.S. Resident and his family members, with the goal of coercing the U.S. Resident to repatriate to the PRC.  An participated in the multi-year scheme to elevate his status within the PRC government as a means of furthering his own economic interests.

An’s involvement in the repatriation scheme began in 2017, when he attempted to locate the U.S. Resident by visiting the home of the U.S. Resident’s adult son, without notice or invitation.  The following year, An sent his daughter, as well as two PRC government officials, to the home of the U.S. Resident’s son.  An subsequently met with the U.S. Resident’s son on numerous occasions, during which time An served as a mouthpiece for the PRC by conveying threatening messages on behalf of the PRC government.  For example, An said he did not want to pronounce “ruthless words” from the PRC government but stated that PRC officials would “keep pestering [the U.S. Resident’s son], [and] make [his] daily life uncomfortable” if the son was unable to convince his father to repatriate to the PRC.  An’s harassment continued unabated from 2017 until his arrest in 2022.  An’s conduct intimidated individuals living in the United States and their loved ones in the PRC – just as it was intended to do – for the benefit of the PRC government.

At sentencing, Judge Matsumoto considered that An participated in additional criminal conduct.  Specifically, he perpetrated a bank fraud and money laundering scheme to defraud U.S. financial institutions so that he could enjoy continued access to U.S.-based bank accounts.  As part of this scheme, he moved millions of dollars from the PRC into the United States, deliberately deceiving U.S. financial institutions regarding the source and purpose of the funds.

The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States.  If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.

The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States  Attorneys Alexander Solomon, Meredith A. Arfa, and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters and Assistant United States Attorneys Madeline O’Connor and Daniel Saavedra of the Office’s Financial Litigation Program are assisting with restitution matters.

The Defendant:

QUANZHONG AN
Age: 58
Roslyn Heights, New York

E.D.N.Y. Docket No. 22-CR-460 (KAM)

CENTRAL ISLIP, NY – Earlier today, in federal court in Central Islip, Francisco Javier Roman-Bardales, also known as “Veterano de Tribus,” a high-ranking leader of La Mara Salvatrucha, also known as “MS-13,” was arraigned on a four-count indictment charging him, along with a dozen other high-ranking MS-13 leaders, with directing the transnational criminal organization’s unlawful activities in the United States, El Salvador, Mexico, and elsewhere over the past two decades.  Roman-Bardales, who had been a fugitive for nearly three years and was added to the Federal Bureau of Investigation (FBI) Ten Most Wanted Fugitives List last month, was arrested by the FBI on March 18, 2025 at the San Ysidro Port of Entry in San Diego, California.  Roman-Bardales had been located and arrested by Mexican authorities in Veracruz on March 17, 2025, and after it was determined that he was an El Salvadoran citizen with no valid status in Mexico, he was expelled from Mexico.  Roman-Bardales is charged with racketeering conspiracy, conspiracy to provide and conceal material support and resources to terrorists, narco-terrorism conspiracy, and alien smuggling conspiracy.  Today’s proceeding was held before United States District Judge Joan M. Azrack.  Roman-Bardales was ordered detained pending trial in the Eastern District of New York.

Pamela Bondi, United States Attorney General, John J. Durham, United States Attorney for the Eastern District of New York and Leslie Backschies, Acting Assistant Director in Charge, FBI, New York Field Office, announced the arraignment.

“MS-13 is a terrorist organization and this case reflects the Department of Justice’s ironclad commitment to putting terrorists behind bars,” stated Attorney General Bondi.  “Members of MS-13 and similar groups should live in fear knowing that we will hunt them down, prosecute them, and deliver swift American justice for their heinous crimes.”

“The prosecution in the Eastern District of New York of this international fugitive, who is one of the most senior leaders of the MS-13 in the world, is another momentous step in the dismantling of this evil criminal enterprise, whose bloodshed and reign of terror traverses all boundaries,” stated United States Attorney Durham.  “Thanks to the relentless and brave work of United States law enforcement, he will soon face reckoning in a courtroom on Long Island where his transnational criminal organization has impacted so many communities.”

Mr. Durham expressed his appreciation to the Suffolk County Police Department, Homeland Security Investigations, San Diego (HSI), the FBI’s San Diego Field Office and the Government of Mexico for their assistance.

“FBI Ten Most Wanted Fugitive Roman-Bardales has been extradited to the United States to be held accountable for the extreme and depraved violence and terror his leadership of MS-13 allegedly brought to the streets of the United States and across North America,” stated FBI Acting Assistant Director in Charge Backschies.  “The FBI, along with our law enforcement partners are committed to eradicating MS-13 and all violent transnational criminal organizations wherever they operate as we protect our nation.”

As set forth in court filings, Roman-Bardales and his co-defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales.  They exercise significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world.  Roman-Bardales was himself a founding member of the Ranfla en las Calles and oversaw the “Western Zone” of MS-13 in El Salvador.  In the related case of United States v. Henriquez, et al., a grand jury in the Eastern District of New York previously indicted 14 members of the Ranfla Nacional, who functioned as MS-13’s “Board of Directors.” Formal extradition requests have been submitted by the United States and remain pending for 11 of those defendants who either are or were in custody in El Salvador.

As further alleged, the defendants have engaged in a litany of violent terrorist activities aimed at influencing the policies of the government of El Salvador (GOES) and at obtaining benefits and concessions from GOES; targeting GOES law enforcement and military officials; employing terrorist tactics such as the use of Improvised Explosive Devices (IEDs) and grenades; operating military-style training camps for firearms and explosives; using public displays of violence to intimidate civilian populations; using violence to obtain and control territory; and manipulating the electoral process in El Salvador.

Further, these defendants authorized and directed violence in the United States, Mexico, and elsewhere as part of a concerted effort to expand MS-13’s influence and territorial control.  As the leaders of the MS-13 transnational criminal organization, these defendants were an integral part of the leadership chain responsible for supervising MS-13 cliques in the United States that engaged in extreme violence, including countless murders, attempted murders, assaults, and related offenses.  For example, the U.S. Attorney’s Office for the Eastern District of New York has prosecuted hundreds of MS-13 leaders, members, and associates for carrying out more than 80 murders in the Eastern District of New York between 2009 and the present.

Several of these defendants, including Roman-Bardales, coordinated MS-13’s expansion into Mexico (the Mexico Program), at the direction of the Ranfla Nacional, which was a coordinated effort to maintain MS-13’s continuity of operations in response to law enforcement pressure previously exerted by the United States and GOES.  Additionally, Roman-Bardales and the Mexico Program forged alliances with Mexican cartels, and engaged in narcotics trafficking, immigrant smuggling, extortion, kidnappings, and weapons trafficking.  As alleged in the indictment, the MS-13’s Mexico Program murdered some migrants bound for the United States, including suspected members of the rival 18th Street gang and MS-13 members attempting to flee MS-13 in El Salvador without permission.  Drug trafficking was an important part of MS-13’s moneymaking operation, especially in Mexico, and the defendants used MS-13’s large membership in the United States to generate financial support for MS-13’s terrorist activities in El Salvador.

This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13 and comprised of U.S. Attorney’s Offices across the country, including the Eastern District of New York; the Eastern District of Texas; the Southern District of New York; the District of Massachusetts; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; HSI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service; the U.S. Bureau of Prisons; and the United States Agency for International Development, Office of Inspector General have been essential law enforcement partners and spearheaded JTFV’s investigations.

This case is part of Operation Take Back America and an Organized Crime Drug Enforcement Task Force (OCDETF) operation.  Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges, Roman-Bardales faces up to life in prison or the possibility of the death penalty.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and as part of the work of the Office’s Transnational Criminal Organizations Strike Force.  Assistant United States  Attorneys Justina L. Geraci, Paul G. Scotti, and Megan E. Farrell are in charge of the prosecution, with assistance from Paralegal Specialist Kerryanne Ucci and Automated Litigation Specialist Michael Compitello. 

The Defendant:

FRANCISCO JAVIER ROMAN-BARDALES (also known as “Veterano de Tribus”)
Age: 47
Ahuachapán, El Salvador and Veracruz, Mexico

E.D.N.Y. Docket No. 22-CR-429 (JMA)

Earlier today, a high-ranking leader of La Mara Salvatrucha, also known as MS-13, was arraigned on a four-count indictment charging him, along with a dozen other high-ranking MS-13 leaders, with directing the transnational criminal organization’s unlawful activities in the United States, El Salvador, Mexico, and elsewhere over the past two decades.

Francisco Javier Roman-Bardales, also known as Veterano de Tribus, 47, of Ahuachapán, El Salvador, and Veracruz, Mexico, had been a fugitive for nearly three years and was added to the FBI’s 10 Most Wanted Fugitives List last month. He was arrested on March 18 at the San Ysidro Port of Entry in San Diego, California. Roman-Bardales had been located and arrested by Mexican authorities in Veracruz on March 17, and after it was determined that he was an El Salvadoran citizen with no valid status in Mexico, he was expelled from Mexico.

“MS-13 is a terrorist organization and this case reflects the Department of Justice’s ironclad commitment to putting terrorists behind bars,” said Attorney General Pamela Bondi. “Members of MS-13 and similar groups should live in fear knowing that we will hunt them down, prosecute them, and deliver swift American justice for their heinous crimes.”

“The prosecution in the Eastern District of New York of this international fugitive, who is one of the most senior leaders of the MS-13 in the world, is another momentous step in the dismantling of this evil criminal enterprise, whose bloodshed and reign of terror traverses all boundaries,” stated U.S. Attorney John J. Durham for the Eastern District of New York. “Thanks to the relentless and brave work of U.S. law enforcement, he will soon face reckoning in a courtroom on Long Island where his transnational criminal organization has impacted so many communities.”

As set forth in court filings, Roman-Bardales and his co-defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales. They exercise significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world. Roman-Bardales was himself a founding member of the Ranfla en las Calles, and oversaw the “Western Zone” of MS-13 in El Salvador. In the related case of United States v. Henriquez, et al., a grand jury in the Eastern District of New York previously indicted 14 members of the Ranfla Nacional, who functioned as MS-13’s “Board of Directors.” Formal extradition requests have been submitted by the United States and remain pending for 11 of those defendants who either are or were in custody in El Salvador.

As further alleged, the defendants have engaged in a litany of violent terrorist activities aimed at influencing the policies of the government of El Salvador (GOES) and at obtaining benefits and concessions from GOES; targeting GOES law enforcement and military officials; employing terrorist tactics such as the use of Improvised Explosive Devices (IEDs) and grenades; operating military-style training camps for firearms and explosives; using public displays of violence to intimidate civilian populations; using violence to obtain and control territory; and manipulating the electoral process in El Salvador.

Further, these defendants authorized and directed violence in the United States, Mexico, and elsewhere as part of a concerted effort to expand MS-13’s influence and territorial control. As the leaders of the MS-13 transnational criminal organization, these defendants were an integral part of the leadership chain responsible for supervising MS-13 cliques in the United States that engaged in extreme violence, including countless murders, attempted murders, assaults, and related offenses. For example, the U.S. Attorney’s Office for the Eastern District of New York has prosecuted hundreds of MS-13 leaders, members and associates for carrying out more than 80 murders in the Eastern District of New York between 2009 and the present.

Several of these defendants, including Roman-Bardales, coordinated MS-13’s expansion into Mexico (the Mexico Program), at the direction of the Ranfla Nacional, which was a coordinated effort to maintain MS-13’s continuity of operations in response to law enforcement pressure previously exerted by the United States and GOES. Additionally, Roman-Bardales and the Mexico Program forged alliances with Mexican cartels, and engaged in narcotics trafficking, immigrant smuggling, extortion, kidnappings, and weapons trafficking. As alleged in the indictment, the MS-13’s Mexico Program murdered some migrants bound for the United States, including suspected members of the rival 18th Street gang and MS-13 members attempting to flee MS-13 in El Salvador without permission. Drug trafficking was an important part of MS-13’s moneymaking operation, especially in Mexico, and the defendants used MS-13’s large membership in the United States to generate financial support for MS-13’s terrorist activities in El Salvador.

Roman-Bardales is charged with racketeering conspiracy, conspiracy to provide and conceal material support and resources to terrorists, narco-terrorism conspiracy and alien smuggling conspiracy. Today’s proceeding was held before U.S. District Judge Joan M. Azrack. Roman-Bardales was ordered detained pending trial in the Eastern District of New York. If convicted, he faces a maximum penalty of life in prison or the possibility of the death penalty.

This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13 and is comprised of U.S. Attorney’s Offices across the country, including the Eastern District of New York; the Eastern District of Texas; the Southern District of New York; the District of Massachusetts; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; HSI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Bureau of Prisons; and the U.S. Agency for International Development, Office of Inspector General have been essential law enforcement partners and spearheaded JTFV’s investigations.

This case is part of Operation Take Back America and an Organized Crime Drug Enforcement Task Force (OCDETF) operation. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The FBI’s San Diego Field Office is investigating the case, with valuable assistance provided by the Suffolk County Police Department and Homeland Security Investigations (HSI) San Diego. The Justice Department thanks its Mexican law enforcement partners.

Assistant U.S. Attorneys Justina L. Geraci, Paul G. Scotti, and Megan E. Farrell for the Eastern District of New York are in charge of the prosecution, with assistance from Paralegal Specialist Kerryanne Ucci and Automated Litigation Specialist Michael Compitello.

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

Earlier today, in federal court in Brooklyn, John Ragano, also known as “Bazoo,” a member of the Bonanno organized crime family, was sentenced by United States District Judge Hector Gonzalez to 37 months in prison for extortionate collection of credit in connection with a $150,000 loan.  The sentence imposed today will be served following the completion of Ragano’s 57-month sentence for the conspiracy to commit extortionate collection of credit of the same victim.  Additionally, as part of the sentence, Ragano was ordered to pay the government $3,000 in forfeiture.  Ragano was convicted of the charge in October 2024 following a four-day jury trial.

John J. Durham, United States Attorney for the Eastern District of New York and Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Today’s sentence punishes Ragano’s blatant disregard for the law, even while under court supervision for crimes brazenly carried out within the federal courthouse,” stated United States Attorney Durham.  “This prosecution represents my Office’s steadfast commitment to combatting the Mafia in our district.”

“Despite previous arrests and detention, John Ragano tormented his victim to make weekly exorbitant loan payments and enforced humiliating methods when faced with resistance,” stated Acting FBI Assistant Director in Charge Backschies.  “His actions reflected his apathy to the criminal justice system as he repeatedly attempted to extort his victims in the midst of active legal proceedings. Today’s verdict emphasizes the FBI’s intolerance of the mob’s historical inclination to utilize coercive and threatening tactics to fulfill their greedy demands.

In early 2021, the defendant Ragano loaned the victim $150,000 in cash and required the victim to make interest payments of approximately $1,800 a week.  These payments did not reduce the principal of the $150,000 loan.  On September 14, 2021, Ragano was arrested in connection with the extortionate loan to the victim, as well as separate schemes to traffic marijuana and commit fraud.  After Ragano was released on bond from the Metropolitan Detention Center in December 2021, he continued to try to collect the $150,000 loan from the victim while under pretrial supervision.  He did so by approaching the victim in-person at status conferences held at the federal courthouse, and by directing another individual (Individual #1) to contact the victim.  On November 28, 2022, Ragano pleaded guilty to conspiring to issue the extortionate loan to the victim.  However, in 2023, despite his previous guilty plea, ongoing court supervision, and sentence to 57 months’ imprisonment in connection with his previous guilty plea as to the 2021 loan, Ragano continued to extort the victim to collect payments on the 2021 loan, which resulted in a subsequent indictment for extortionate collection of credit and harassment of a witness.

As proven during Ragano’s October 2024 trial, on March 25, 2023, the victim recorded a meeting with Individual #1, who explained that Ragano wanted the entire amount of the loan repaid and that “nobody’s looking for anybody to get hurt.” A week later, on March 31, 2023, Individual #1 told the victim that Ragano was “a little upset” that the loan was outstanding.  On July 5, 2023, the victim went to a used auto parts yard where Ragano worked to discuss the loan.  Unbeknownst to Ragano, the victim recorded the meeting.  The victim told Ragano that he was going to stop repaying the loan. Ragano accused the victim of cooperating with the government and demanded that he remove all his clothes. Ragano stated: “Okay, well then take off your f--king s--t right now my man.  Take off your f--king pants right now, lemme see, I want to see.”  At Ragano’s insistence, the victim complied and took off all his clothing. At that point, two men at the business walked up behind Ragano, one of whom was holding metal tools.  Ragano then demanded the victim pay the money the defendant believed he was owed, telling him, “You owe me my f---king money, let’s see how you’re gonna do when I get out.”  Despite being forced to strip naked, the victim was still able to record the confrontation, including Ragano’s parting words, “I’ll see you when I get out tough guy…Don’t forget I know where you’re at now.”

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Devon Lash and Andrew D. Reich are in charge of the prosecution with the assistance of Paralegal Specialist Kristina Kim.  Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendant:

JOHN RAGANO (also known as “Bazoo”)
Age:  62
Franklin Square, Long Island

E.D.N.Y. Docket No. 24-CR-50 (HG)

Earlier today, in federal court in Brooklyn, Jerome Jones, also known as “Sha,” was sentenced by United States District Judge Nicholas G. Garaufis to 30 years’ imprisonment for his role in the 1991 murder of Oscar Flow and the 1992 murders of Robert Arroyo and Dorothy Taylor—all related to Jones’ narcotics trafficking operation.  Jones pleaded guilty in August 2024. 

John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

“Jones now faces decades in prison for his role in a violent drug organization and for several vicious killings committed within less than one year.  His sentence is a reminder that no matter how much time has passed, my Office and our law enforcement partners will not rest until murderers like the defendant are held accountable and justice is served for their victims,” stated United States Attorney Durham.   

Mr. Durham expressed his thanks to the FBI and the NYPD for their outstanding investigative work and the Queens District Attorney’s Office for its assistance.

Jones was a high-ranking member of “Black Rain,” a Queen-based drug trafficking organization that sold narcotics at several locations on Rockaway Boulevard in the late 1980s and early 1990s.  The organization was responsible for poisoning the community with massive quantities of various drugs: heroin sold as “Black Rain,” cocaine sold as “White Lightning,” and crack sold as “Thunder.”  In the early 1990s, a single Black Rain drug spot brought in more than $10,000 per day in drug sales. To protect its profitable operation and to punish those who crossed its leaders, Black Rain members committed multiple acts of violence, including murders.

In December 1991, Jones murdered Oscar Flow in Springfield Gardens, Queens, after he learned that Flow had stolen from one of Black Rain’s drug spots and that the victim’s sneaker matched a muddy footprint on the roof of the location that had been robbed.  Jones and a co-conspirator shot Flow multiple times.  Jones later boasted to an underling that Flow got “six in the head” for stealing from Black Rain.

In September 1992, Robert Arroyo was murdered in the vicinity of 128th Street and Rockaway Boulevard in South Ozone Park, Queens, where Jones managed a drug spot.  Jones recruited and paid two co-conspirators to kill Arroyo, who Jones suspected was a drug trafficking competitor and a police informant.  In their first attempt, the recruits mistakenly shot and seriously wounded another man they incorrectly believed to be Arroyo.  That victim survived.  The hit team finally located Arroyo on a crowded street and shot him repeatedly, killing him.

In November 1992, Jones again paid a co-conspirator to murder Dorothy Taylor, who the defendant blamed for having a Black Rain drug spot shut down by law enforcement when she failed to pay the rent and city marshals padlocked the apartment.  Taylor was shot to the death in the driveway of her home by the co-conspirator.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Tanya Hajjar, Emily J. Dean, Lindsey R. Oken, and Raffaela S. Belizaire are in charge of the prosecution with the assistance of Paralegal Specialist Theodore Rader.

The Defendant:

JEROME JONES (also known as “Sha”)
Age: 60
West Virginia

E.D.N.Y. Docket No. 19-CR-54 (NGG)

Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging Oleg Beretsky with conspiring to commit health care fraud, violating the federal Anti-Kickback Statute, conspiring to violate the Anti-Kickback Statute and money laundering conspiracy.  Beretsky was arrested this morning in Naples, Florida.  He will be arraigned in the Eastern District of New York at a later date.

John J. Durham, United States Attorney for the Eastern District of New York,  Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the arrest and charges.

“As alleged, elderly individuals trusted the defendant to help them with their health care decisions.  Rather than look out for the interests of some of the most vulnerable members of our community, he sold access to those who trusted him to the highest bidder,” stated United States Attorney Durham. “The defendant compounded his crimes by encouraging doctors and health care providers who became part of his scheme to cheat Medicare by billing for work that was not needed or never performed. My Office is committed to protecting both patients and taxpayers from this terrible form of greed.”

Mr. Durham expressed his appreciation to HSI’s Fort Myers, Florida, office and the New York City Police Department for their assistance on the case.

“Violations of the Anti-Kickback Statute can divert much-needed federal health care program funds and corrupt the medical decision-making process,” stated HHS-OIG Special Agent in Charge Gruchacz.  “HHS-OIG works diligently with our law enforcement partners to investigate allegations that owners and other providers engage in fraud schemes that prioritize greed over the provision of appropriate health care services to patients.”

“The defendant and his co-conspirators are accused of pocketing more than $12 million while exploiting the unknowing, innocent public, including victims from immigrant communities,” stated HSI New York Special Agent in Charge Alfonso.  “As alleged, he took advantage of people with whom he had forged relationships — only to manipulate them into using certain doctors and services for his lucrative benefit.  HSI New York’s El Dorado Task Force is unmatched in its ability to draw from the strengths and equities of all partners involved, with one unified goal being the safety and security of Americans. I commend our partners, including HHS-OIG, IRS-CI, NYPD and HSI’s Fort Meyer’s personnel, for placing the wellbeing of the public above all else.”

“Millions of dollars were stolen from the American benefits system, and Oleg Beretsky is charged with the crime.  He's accused of taking advantage of a vulnerable population and funneling stolen Medicare money into his and his co-conspirators' pockets. IRS-CI is charged with securing trust in the American financial system and actively investigates anyone looking to make a quick buck by stealing from the American public,” stated IRS-CI Special Agent in Charge Chavis.

As alleged in court filings, from January 2017 to April 2024, Beretsky and co-conspirators engaged in a health care fraud, kickback and money laundering scheme.  Beretsky was the owner of Obest, Inc., a company in Plainview, New York, that purported to provide health care professionals with billing, consulting and support services.  In reality, Obest’s principal business consisted of referring elderly Medicare patients to doctors and other health care professionals in exchange for kickbacks and bribes.  Many of these patients were immigrants from the former Soviet Union, who Beretsky identified through an employee of a nonprofit social service agency that provided housing and other services to senior citizens in Brooklyn and Queens. Beretsky cultivated relationships with many of these patients, which he used to gain control over decisions regarding their health care providers.  Beretsky then used that control to ensure that only doctors and other providers—including social workers, pain specialists and diagnostic companies—who were willing to pay him would have access to the patients.  On at least one occasion, Beretsky threatened a patient who wanted to continue seeing a provider who had stopped paying illegal kickbacks to the defendant.

The fee charged by Beretsky was typically based either on how many patients Beretsky referred to the provider or how much Medicare reimbursed the provider for services purportedly rendered to the patients.  To generate more fees for himself and his co-conspirators, Beretsky often encouraged or directed providers to bill Medicare for patients who did not need the services those providers rendered, and in some cases, services that were not rendered at all.  In total, doctors and providers who participated in Beretsky’s scheme billed more than $22 million in false and fraudulent claims to Medicare.  Of that more than $22 million, Medicare paid more than $12.4 million in claims, which was distributed to Beretsky and his co-conspirators.  To hide the illegal source of funds Beretsky received from the conspiracy, Beretsky frequently directed co-conspirators to pay his relatives in cash and transferred money to multiple accounts held in the names of his family members.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Beretsky faces up to up to 20 years in prison on the money laundering conspiracy count; up to 10 years each on the health care fraud conspiracy and kickback counts; and up to five years on the kickback conspiracy count.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorney Joshua B. Dugan is in charge of the prosecution with the assistance of Paralegal Specialists Liam McNett and Timothy Migliaro.

The Defendant:

OLEG BERETSKY
Age:  67
Naples, Florida

E.D.N.Y. Docket No. 25-CR-91 (RPK)

Mexican nationals and former leaders of the Los Zetas cartel were arraigned today in Washington, D.C., on charges of engaging in a continuing criminal enterprise that involved multiple murder conspiracies, conspiring to manufacture and distribute large quantities of cocaine and marijuana destined for the United States, using firearms — including a machinegun — during and in relation to drug trafficking crimes, and conspiring to launder monetary instruments.

According to court documents, Miguel Trevino Morales, also known as Z-40, Zeta40, and 40, age 52, and Omar Trevino Morales, also known as 42 and Z-42, age 48, ascended to the highest level of leadership in Los Zetas, a violent cartel comprised of former Mexican military officers that began as an armed militaristic wing of the Gulf Cartel. Miguel Trevino Morales allegedly took over leadership of Los Zetas in October 2012 until his arrest by Mexican authorities in 2013, at which point, his brother, Omar Trevino Morales, allegedly assumed primary leadership of the cartel until his arrest by Mexican authorities in 2015. After their arrests, the defendants allegedly renamed Los Zetas to Cartel del Noreste (CDN) and continued to control the cartel while incarcerated in Mexico. Through the date of the fifth superseding indictment, CDN allegedly continued Los Zetas’ criminal drug trafficking activities and acts of violence including murders, assaults, kidnappings, assassinations, and acts of torture. On Feb. 20, 2025, the U.S. Department of State designated CDN as a foreign terrorist organization.

“The DEA has never wavered from the global fight against this vicious, ruthless cartel led by brothers Miguel (Zeta 40) and Omar Trevino Morales (Zeta 42).  These brothers are charged with importing tons of dangerous drugs into our country, and we believe they continued to run their business while serving time in a Mexican prison. Now they will face justice in the United States,” said Acting Administrator Derek S. Maltz of the Drug Enforcement Administration (DEA). “Our work is far from over. DEA will continue to keep the pressure on violent organizations, like Los Zetas, to disrupt their operations and relieve the stranglehold they exert along the southwest border.”

“The Criminal Division is dedicated to achieving the Attorney General’s goal of the Total Elimination of Cartels,” said Supervisory Official Matthew R. Galeotti, head of the Justice Department’s Criminal Division. “As alleged, former Zetas cartel leaders Z-40 and Z-42 engaged in conspiracies to kill members of the Mexican government, Mexican citizens, members of rival cartels, members of the Guatemalan government, and Guatemalan drug traffickers. We will aggressively pursue and bring to justice in the United States violent transnational criminals and leaders of cartels and hold them accountable for the death and violence they have committed here and abroad and for the large amounts of dangerous drugs that devastate our communities.”

“As alleged, the defendants represent some of the world’s most vicious cartel leaders, who oversaw Los Zetas’ reign of terror with grotesque impunity and ruthlessness, and a sheer disregard for anything beyond their wealth, power, and control,” said Acting Special Agent in Charge Michael Alfonso of ICE Homeland Security Investigations New York. “I commend ICE Homeland Security Investigations’ El Dorado Task Force for consistently proving itself as a formidable opponent against cartels intent on causing harm. We will use whatever means necessary to protect the safety and security of Americans from threats both here and abroad.”

The defendants are charged with one count each of continuing a criminal enterprise, conspiracy to distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States, use of a firearm in relation to drug trafficking crimes, and international money laundering conspiracy. As part of the continuing criminal enterprise count, the defendants are alleged to have engaged in conspiracies to kill members of the Mexican government, Mexican citizens, members of rival cartels, members of the Guatemalan government, and Guatemalan drug traffickers. Because the defendants are charged with engaging in a continuing criminal enterprise, they face a maximum penalty of death or life imprisonment.    

The defendants were subject to longstanding U.S. extradition requests, that were not honored during the prior Administration, but the Mexican government elected to transfer to the current U.S. government in response to the Justice Department’s efforts pursuant to President Trump’s and the Attorney General’s leadership against Mexican drug cartels. On Feb. 27, the defendants were transferred by Mexican authorities to the United States.   

The Drug Enforcement Administration, ICE HSI, and the FBI are investigating the case.

Acting Deputy Chief Melanie Alsworth and Trial Attorneys Jayce Born and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorney Andrew Wang for the Eastern District of New York, and the U.S. Attorney’s Office for the Western District of Texas are prosecuting the case.

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

Thomas John Sfraga, also known as “T.J. Stone,” was sentenced yesterday in federal court in Brooklyn by United States District Judge Frederic Block to 45 months in prison for wire fraud.  As part of the sentence, Sfraga was ordered to pay $1,337,700 in forfeiture. The restitution amount will be determined at a later date.  Sfraga pleaded guilty in May 2024.

John J. Durham, United States Attorney for the Eastern District of New York and Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Sfraga callously stole from friends, next-door neighbors, and the parents of children who played on teams with his own children, as well as from individual cryptocurrency investors,” stated United States Attorney Durham.  “There was nothing funny about his use of a Seinfeldian company, Vandelay Industries, to carry out this fraud, which caused severe financial and emotional harm to the hard-working men and women who trusted him.”

As set forth in the information and court filings, from at least 2016 to 2022, Sfraga held himself out as the owner and principal of multiple businesses, including Build Strong Homes LLC and Vandelay Contracting Corp.  The latter company had a name similar to the fictional “Vandelay Industries,” which the character George Constanza falsely claimed to have interviewed with for a job in the television show “Seinfeld.” Sfraga held himself out as “T.J. Stone,” a serial entrepreneur with experience in real estate development, media relations, podcasting, and cryptocurrencies, which included acting as the emcee of many cryptocurrency events in New York.

Sfraga defrauded at least 17 victims, including victims in Brooklyn, Staten Island and Long Island, by convincing them to loan him money for, or to invest in, multiple sham investments including purchasing, renovating, and “flipping” homes.  On one occasion, Sfraga convinced a victim to lend him $100,000 in cash as start-up costs for a non-existent construction project.  On yet another occasion, Sfraga convinced a victim to invest in a fictitious cryptocurrency “virtual wallet.”  He promised the victims returns on their investments as high as 60% in three months.  In reality, however, Sfraga used the money entrusted to him by the victims for his own benefit, to pay expenses, and to pay earlier victims and business associates.  When law enforcement began investigating Sfraga after victims filed lawsuits, he fled to Arizona to live under a false identity. Sfraga was eventually apprehended in Las Vegas after being arrested for running out on his bill at the Wynn Casino.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney John Vagelatos is in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates.

The Defendant:

THOMAS JOHN SFRAGA (also known as “T.J. Stone”)
Age:  56
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-194 (FB)