Eastern District of New York

An indictment was unsealed yesterday in federal court in Brooklyn charging Elkin Armando Alomia Quinones, Diego Luis Obregon Aguirre, Edwin Obregon Castro, Juan Matias Obregon Castro, also known as “Mauricio,” Rodrigo Obregon Saavedra, also known as “Don Ricky” and Narjel Paredes, also known as “Nacho,” with conspiring to violate and violating the Maritime Drug Law Enforcement Act and with an international cocaine distribution conspiracy that resulted in the seizure of over 5,000 kilograms of cocaine for distribution in the United States.  The indictment was returned under seal by a grand jury in November 2024.  The six defendants were arrested yesterday in Colombia.  The United States is seeking the defendants’ extradition to face charges in the Eastern District of New York.

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

“As alleged, the defendants are members of a Colombian transnational maritime drug trafficking organization that specializes in building semi-submersible vessels and using the vessels to transport multi-ton quantities of cocaine to Mexico and Central America, for ultimate distribution in the United States,” stated United States Attorney Durham.  “With today’s arrests, the defendants’ conspiracy has been torpedoed. The United States will not tolerate the export and distribution of dangerous drugs into our homeland. My Office is determined to prosecute these defendants in a federal courtroom in Brooklyn where they will be held accountable for their crimes.”

Mr. Durham praised the outstanding investigative work of DEA New York’s Strike Force, DEA Bogota and HSI New York’s El Dorado Task Force.  Mr. Durham also expressed his appreciation to Colombia’s Cuerpo Técnico de Investigación, DEA Puerto Rico, DEA Madrid and the U.S. Attorney’s Office for the District of Puerto Rico for their substantial assistance. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá provided significant assistance in this matter.

“The removal of over 5,000 kilograms of cocaine from international waters, destined for the United States, illustrates the DEA’s global pursuit to identify and target those international drug traffickers and Transnational Criminal Organizations that are using semi-submersible fleets to poison our city streets,” stated DEA New York Special Agent in Charge Tarentino. “Today’s indictment against these six individuals is a reminder of the reach and unity of effort the DEA and our law enforcement partners demonstrate when pursing those criminals looking to profit from the illicit drug trade.”    

“As alleged, investigators repeatedly intercepted the defendants' attempts to transport cocaine via semi-submersible vessels traveling through international waterways. While their ill-intended ingenuity knows no bounds, the unified strength and versatility of the U.S. federal law enforcement system has once again stopped a dangerous, allegedly cartel-aligned drug trafficking organization in its tracks. Securing the homeland from dangers posed by foreign organizations and threats is among HSI’s top priorities. We are relentlessly prepared to confront bad actors seeking financial gain by whatever means necessary,” stated HSI New York Acting Special Agent in Charge Alfonso.

As alleged in the charging document and other court filings, the defendants led a maritime transnational criminal organization that specialized in building self-propelled semi-submersible vessels in remote locations in Colombia and South America and used those semi-submersible vessels to transport multi-ton quantities of cocaine from Colombia to Central America and Sinaloa Cartel controlled areas of Mexico, for ultimate distribution in the United States. 

Using intelligence from multiple sources, including lawfully intercepted calls and communications, the investigation revealed that the defendants led a sophisticated maritime drug distribution operation consisting of multiple inter-connected phases.  First, members of the conspiracy sought investors to finance multi-ton cocaine loads, including financing the construction of the semi-submersible vessels and payments to crew members and co-conspirators. Then, members of the conspiracy built and hired engineers and workers to assist in building self-propelled semi-submersible vessels capable of carrying thousands of kilograms of cocaine.  They also hired crew members to transport the narcotics in the vessels.  Before launching the cocaine-laden vessels from the Pacific coast of Colombia towards areas controlled by the Sinaloa Cartel in Mexico, members of the conspiracy conducted countersurveillance on the high seas by strategically positioning fishing vessels on the same route that the semi-submersible would navigate in order to detect the presence of law enforcement in the area.

As a result of the investigation, law enforcement seized multiple thousand kilograms of cocaine traced to this transnational criminal organization, including two seizures charged in the indictment:

• The June 27, 2023, seizure of approximately 2,312 kilograms of cocaine aboard a semi-submersible vessel built by the defendants’ criminal organization; and
• The October 7, 2023, seizure of approximately 3,300 kilograms of cocaine aboard a semi-submersible vessel built by the defendants’ criminal organization.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to 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 New York Organized Crime Drug Enforcement Strike Force is a Federal Task Force comprised of Federal, State and Local law enforcement officers who enforce the narcotic laws of the United States Government and bring those to justice who break these laws relating to large scale drug and money laundering operations that reach all corners of the globe. This Task Force includes members of the DEA, HSI, Internal Revenue Service, Federal Bureau of Investigation, United States Marshals Service, New York City Police Department, New York State Police and multiple other local police departments in the tri-state area.

HSI New York leads and directs all operational and administrative activities of the El Dorado Task Force (EDTF).  The EDTF is comprised of more than 200 law enforcement personnel representing approximately thirty-five (35) federal, state, and local law enforcement and regulatory agencies.  The mission of the EDTF is to disrupt, dismantle, or render ineffective, organizations involved in the laundering of proceeds of narcotics trafficking and other financial crimes.

The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted, all defendants face 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 Lorena Michelen and Katherine Onyshko are in charge of the prosecution.

The Defendants:

ELKIN ARMANDO ALOMIA QUINONES
Age:  39
Colombia

DIEGO LUIS OBREGON AGUIRRE
Age:  46
Colombia

EDWIN OBREGON CASTRO
Age:  40
Colombia

JUAN MATIAS OBREGON CASTRO (“Mauricio”)
Age:  48
Colombia

RODRIGO OBREGON SAAVEDRA (“Don Ricky”)
Age:  68
Colombia

NARJEL PAREDES (“Nacho”)
Age:  55
Colombia

E.D.N.Y. Docket No. 24-CR-462 (EK)

Earlier today, at the federal courthouse in Brooklyn, Catalina Corona was arraigned on an indictment charging her with wire fraud, bank fraud and aggravated identity theft.  While employed as a personal assistant to an elderly married couple (the Victims), Corona forged the Victims’ signatures on checks from various bank accounts and stole approximately $10 million from them.  The proceeding was held before United States Magistrate Judge Peggy Kuo.

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 charges.

“The defendant’s greed knew no bounds, as she brazenly stole millions from elderly victims, using deceit to systematically steal the victims’ money and violate the trust they placed in her,” stated United States Attorney Durham.  “My Office is committed to protecting the elderly from fraudulent schemes and ending elder abuse.”

“For years, the defendant took advantage of an elderly couple who trusted her to protect them and their interests,” stated FBI Acting Assistant Director in Charge Backschies. “As alleged in the indictment, she repeatedly defrauded these victims out of millions of dollars to enrich herself. Combatting the financial exploitation of elderly Americans remains a priority for the FBI, and we will continue to work hard to identify and disrupt anyone who attempts to target America’s seniors.”

As alleged in court filings, between approximately 2017 and 2024, while working for the Victims, Corona repeatedly deposited hundreds of checks written out to cash—made payable to herself—from the Victims’ bank accounts without their knowledge or consent.  Many of these transactions took place in Queens and on Long Island within the Eastern District of New York.

Corona also posed as one of the Victims when calling the Victims’ bank to request information related to their accounts.  In April 2024, one of the Victims received a call from the bank inquiring about checks written out to cash.  The Victim explained that she never wrote checks out to cash and ultimately discovered that Corona had been forging checks and withdrawing money from the Victims’ bank account.  The investigation further uncovered that Corona was not only stealing funds by fraudulently cashing checks, but was also transferring funds directly from the Victims’ accounts into her own personal accounts.

In total, Corona stole nearly $10 million, which she used to pay her credit card bills and to purchase luxury items from Louis Vuitton, Cartier, Gucci and other high-end brands.  Specifically, Corona spent over $1 million on Louis Vuitton items alone, including luggage, purses valued at over $10,000, and apparel.  Additionally, in just one day, Corona used over $25,000 in stolen funds for airline travel.   

The charges in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges in the indictment, the defendant faces a mandatory minimum of two years’ imprisonment on the aggravated identity theft charge, and a maximum of 30 years’ imprisonment.

The government’s case is being handled by the Office’s General Crimes Section. Assistant United States  Attorney Rebecca M. Urquiola is in charge of the prosecution, with the assistance of Assistant United States Attorney Michael Castiglione who is handling forfeiture matters.

The Defendant:

CATALINA CORONA
Age: 61
Corona, Queens

E.D.N.Y. Docket No. 25-CR-78 (NGG)

Earlier today, a 12-count superseding indictment was unsealed in federal court in Central Islip charging Bloods gang member Joshua Crowell, also known as “Twiggy,” and Bloods associate Bruce King, also known as “Brucey,” with assault in aid of racketeering. Crowell was also charged with distributing fentanyl resulting in death, distributing fentanyl resulting in serious bodily injury and other gang related crimes committed in Suffolk County between 2021 and 2024.  Crowell and King were arraigned this afternoon before United States Magistrate Judge Lee G. Dunst and ordered detained pending trial.

John J. Durham, United States Attorney for the Eastern District of New York, Raymond A. Tierney, Suffolk County District Attorney, Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York) and Kevin Catalina, Commissioner, Suffolk County Police Department (SCPD), announced the charges.

“The charges in the superseding indictment highlight the extreme danger that violent gangs like the Bloods pose to the people of Long Island, ranging from shootings that injure bystanders to dealing lethal drugs that claim lives and destroy families,” stated United States Attorney Durham.  “My Office is working closely with our federal and local partners to make our communities safer by dismantling and eradicating street gangs that have zero regard for human life and holding gang members and associates accountable for their crimes.”

Mr. Durham thanked the Nassau County Police Department and the Southampton Town Police Department for their assistance.

"These alleged gang members represent a grave threat to the safety and stability of our community. Their willingness to engage in brazen acts of violence - as demonstrated by the shooting of three victims in Southampton - shows a complete disregard for human life. Equally disturbing, is the distribution of fentanyl, a lethal substance that has devastated countless families across Suffolk County,” stated District Attorney Tierney. “The charges announced today send a clear message that such dangerous criminal activity will not be tolerated in our neighborhoods and I thank the EDNY for their leadership on this investigation. This case exemplifies why partnerships between local, state and federal law enforcement agencies are essential in our fight against organized crime. These collaborative efforts ensure that violent offenders face the full weight of the law, and they provide us with the tools needed to dismantle criminal organizations from top to bottom.”

“As alleged, the defendants had blatant disregard for human life through their brazen violence and deadly distribution of fentanyl into our Long Island neighborhoods. HSI and its law enforcement partners will continue to identify, disrupt, and dismantle violent gangs operating within our community. I commend our law enforcement partners for their relentless effort and professionalism to make our communities safer,” stated HSI Acting Special Agent in Charge Alfonso.

“For years, these individuals have been a scourge on our community through the distribution of fentanyl and vicious gang-related shootings,” stated SCPD Commissioner Catalina. “While their activities often targeted rival gang members, their recklessness could very easily have injured innocent victims. The Suffolk County Police Department will continue to work with its partner law enforcement agencies to put violent gang members behind bars and ensure the safety of Suffolk County residents and visitors.”

As set forth in the superseding indictment and court filings, the defendants engaged in multiple acts of violence on behalf of the Bloods, including a March 2, 2021 shooting in which they traveled to a party hosted by rival gang members at a rented home in Southampton, New York. Upon arrival, the defendants began shooting into the residence with three guns, including an AK-47 style assault rifle, wounding three partygoers who were not gang members.

Additionally, Crowell and co-conspirators operated a longtime drug trafficking network during which Crowell sold fentanyl and other illegal substances.  In May 2022, Crowell sold fentanyl that caused serious injury to a female customer.  Less than one month later, Crowell sold fentanyl that caused a male customer to stop breathing and die from ingesting the fentanyl. In June 2023, Crowell distributed fentanyl that was ingested by a male customer and caused him to stop breathing. In this instance, life-saving efforts were successful, and he survived.

The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, Crowell and King each face up to life imprisonment.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using 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 Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Bradley T. King and James R. Simmons and Special Assistant United States Attorney Donald N. Barclay are in charge of the prosecution.

The Defendants

JOSHUA CROWELL (also known as “Twiggy”)
Age: 31
Huntington, New York

BRUCE KING (also known as “Brucey”)
Age: 26
Huntington, New York

E.D.N.Y. Docket No. 24-CR-257 (S-1) (GRB)

Earlier today, at the federal courthouse in Central Islip, a 42-count indictment was unsealed charging Damaris Beltre, formerly a tax preparer in Freeport, New York, with wire fraud, aiding and assisting in the preparation of false tax returns, money laundering and aggravated identity theft, for her role in allegedly preparing hundreds of false individual tax returns that caused a total of approximately $12 million in losses to the Internal Revenue Service (IRS) and the Payroll Protection Program (PPP), which was designed to help small businesses during the COVID-19 pandemic.  Beltre was arrested today and will be arraigned this afternoon before United States Magistrate Judge Anne Y. Shields.

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

“As alleged, the defendant’s fraudulent work as a tax preparer and in furtherance of a COVID-19 loan scheme cost the government millions of dollars, all while she generated a stream of illicit revenue for herself that she used to purchase, among other things, a home in the Dominican Republic, a car and jewelry,” stated United States Attorney Durham.  “My Office will vigorously prosecute individuals like the defendant who think the United States government is an easy target for financial crimes.”

Mr. Durham also expressed his appreciation to the United States Customs and Border Protection, New York Field Office and the Freeport Police Department for their assistance on the case.

“Beltre is charged with defrauding the government of millions of dollars to fatten her pockets, using stolen identities, fraudulent tax submissions and bogus COVID-19 benefits claims.  While she may have been viewed as a respected tax preparer, Beltre did not respect federal law, nor did she care about the victims of her fraud—the American people. This IRS-CI investigation has brought her scheming to an end, and she will now be prosecuted for her actions,” stated IRS-CI Special Agent in Charge Chavis.

As set forth in the indictment, Beltre owned and operated three corporate entities, Botanica El Poder De San Miguel (Botanica), L&D Tax & Multi Service Corp. (L&D) and D&L Tax Service (D&L).  Beltre was also associated with a fourth company, Apollo Global Improvements LLC (Apollo).

Between approximately January 2021 and April 2024, Beltre engaged in a scheme in which she prepared and caused to be prepared false and fraudulent Forms 1040 and associated schedules and forms for client-taxpayers for submission to the IRS.  From approximately January 2021 through December 2023, Beltre was the tax preparer for tax returns prepared by L&D; from January 2024 through April 2024, Beltre was the tax preparer for tax returns prepared by D&L.

In those roles, Beltre engaged in massive tax fraud scheme utilizing false dependents as well as tens of millions of dollars of COVID-19 sick leave credits and fuel tax credits that there was no basis to claim. Clients paid over $1 million for Beltre’s fees for her work preparing the false returns which included a percentage of any refund issued.  For example, in one instance, an undercover agent went to Beltre to have his tax return prepared.  If prepared accurately, the agent would have owed the IRS approximately $205.  Instead, Beltre prepared a return which claimed a refund of over $14,243.  Beltre charged the undercover agent $2,200 in fees to prepare the fraudulent tax return. In other instances, Beltre filed tax returns claiming refunds on behalf of former clients without their knowledge. As a result of her fraudulent tax scheme, Beltre submitted false and fraudulent Forms 1040 and associated schedules and forms to the IRS, that resulted in approximately $11 million in reduced tax liabilities.

In a separate PPP fraud scheme, Beltre filed false payroll reports and tax returns with the IRS on behalf of companies to fraudulently obtain PPP loan proceeds totaling approximately $1 million which she used to pay personal expenses.  For example, in June 2020, Beltre used approximately $22,500 in fraudulently obtained PPP loan proceeds to make a payment on a house in the Dominican Republic.  In May 2021, Beltre used approximately $16,000 in fraudulently obtained PPP funds to pay for the purchase of a Honda CRV.  Between November 2021 and February 2022, Beltre and members of her family spent tens of thousands of dollars of fraudulently obtained PPP loan proceeds at jewelry stores, and Beltre withdrew approximately $226,160 of the fraudulently obtained PPP loan proceeds as cash from accounts for Botanica, L&D, Apollo, and various other accounts she controlled.

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

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

The Defendant:

DAMARIS BELTRE
Age:  57
Freeport, New York

E.D.N.Y. Docket No. 25-CR-81 (SJB)

Earlier today, in federal court in Central Islip, Jose Saez, Jr., a pastor at a church located in Brentwood, New York, pleaded guilty to sexual exploitation of a child.  The proceeding was held before United States District Judge Joan M. Azrack.  When sentenced, Saez, Jr., faces a minimum sentence of 15 years’ imprisonment and up to 30 years in prison.

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 guilty plea.

“The defendant’s sexual exploitation of minors, both in person and online, is horrific, and he now faces at least 15 years in prison for his unspeakable crimes,” stated United States Attorney John J. Durham.  “That he held a position of trust and responsibility as a pastor of a local church makes his conduct even more reprehensible. Protecting vulnerable children from predators like this defendant will always be a priority of this Office.”

Mr. Durham expressed his appreciation to the Suffolk County Police Department for their work on the case.

“The defendant not only admitted to sexually abusing young children, but also discussed his church and his congregants as targets of additional abuse. His sustained exploitation of children—in person and online—is clear, and this plea is a step forward on the road to justice for his victims. Children are among the most vulnerable in our communities, and the FBI will stop at nothing to make sure they are protected and the monsters who would do them harm are put behind bars,” stated FBI Acting Assistant Director in Charge Backschies.

As set forth in court filings and today’s plea proceeding, Saez used an encrypted messaging service to engage in sexually explicit conversations with minors and with a law enforcement officer acting in an undercover capacity (the UC).  In August of 2023, Saez had online conversations with the UC.  During those conversations, the defendant stated that he had sexually abused an infant, that his “sweet spot” was molesting children between the ages of 11 and 15, and that he was able to find his younger victims at “church.”  Pursuant to a court-authorized search, FBI agents recovered numerous images and videos of child pornography from the defendant, which he had solicited from minors.  The defendant also admitted to law enforcement officers that he encouraged a minor to produce child pornography and send it to him.

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.

Anyone with information about sexual exploitation by the defendant is asked to contact the FBI at tips.fbi.gov or 212-384-1000.  

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Mark E. Misorek and Adam R. Toporovsky are in charge of the prosecution, with assistance from Paralegal Specialist Dejah Turla.

The Defendant:

JOSE SAEZ, JR.
Age:  29
Brentwood, New York

E.D.N.Y. Docket No. 23-CR-480 (JMA)

Today the United States Attorney’s Office for the Eastern District of New York announced criminal charges against 25 defendants in 12 separate cases relating to violence and contraband smuggling at the Metropolitan Detention Center (MDC-Brooklyn) in Sunset Park, Brooklyn. These include charges against 15 inmates for violent assaults against other inmates from May 2024 to the present; a former correctional officer for attempting to smuggle contraband into the facility on January 21, 2025; an inmate for orchestrating a contraband smuggling operation between April and June 2024; an inmate for smuggling ceramic scalpels into the facility on October 12, 2024; an inmate for possession of contraband and continuing to commit fraud while detained at MDC-Brooklyn; and an MS-13 gang associate for attempting to smuggle a large package of contraband, including 18 cellphones and marijuana, to other MS-13 gang members incarcerated at MDC-Brooklyn.

Previously, nine inmates at MDC-Brooklyn were charged by the Office in September 2024 for violence and contraband smuggling.  In addition, the Office, in conjunction with the United States Attorney’s Office for the Southern District of New York (USAO-SDNY) and more than a dozen law enforcement partners, assisted in October 2024 with a week-long multi-agency operation aimed at detecting and seizing contraband from MDC-Brooklyn.

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 Kathleen Toomey, Associate Deputy Director, Federal Bureau of Prisons, announced the charges.

“The safety and security of our federal detention facilities is paramount,” stated United States Attorney Durham.  “As alleged, in several separate charging instruments, inmates viciously attacked fellow detainees, a correctional officer betrayed his duty by attempting to smuggle drugs into the facility, several inmates orchestrated elaborate contraband smuggling operations and yet another inmate continued to engage in fraud schemes while detained.  These actions undermine the order and security of MDC-Brooklyn and endanger everyone within its walls.  My Office is working tirelessly to hold accountable those who commit violent acts or introduce contraband into the prison, whether they are inmates or staff.  These charges serve as a warning to those who would engage in criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be uncovered, and you will be held accountable.”

Mr. Durham thanked the U.S. Bureau of Prisons and the FBI New York Field Office for their investigative work in these cases, as well as the United States Attorney’s Office for the Southern District of New York and the Department of Justice, Office of Inspector General for their assistance.

“These 25 defendants, an array of inmates and a former correctional officer, allegedly committed numerous violent attacks against fellow inmates and orchestrated various schemes to smuggle contraband into the prison,” stated FBI Acting Assistant Director in Charge Backschies. “These cases reflect the alleged extreme disregard for adhering to the rules designed to protect the other inmates and correctional staff within the institution. The FBI will never tolerate any individual, regardless of their incarceration status, who engages in deviant behavior that threatens the safety and stability of our federal facilities.

“The Federal Bureau of Prisons would like to thank the FBI and the EDNY for their partnership and support to further prevent and prosecute violence and contraband in our facilities, through our unified efforts we are making our facilities safer for our employees and those in our custody,” stated Federal Bureau of Prisons Associate Deputy Director Toomey.   

A summary of the cases follows:

U.S. v. Mike Josie

Mike Josie has been charged by indictment with assault in a federal detention facility in connection with his participation in an assault of another inmate at MDC-Brooklyn on May 26, 2024.  As alleged, Josie brutally attacked another inmate in his housing unit who was sitting at a table in a common area of the unit.  Josie approached the victim from behind and made several slashing motions towards the victim’s face.  After the assault, the victim was taken to a nearby hospital to treat lacerations to his neck and face. If convicted, Josie faces up to10 years in prison.  Josie is scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Assistant United States Attorney Sean Fern is in charge of the prosecution.

U.S. v. Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez

Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez are charged by complaint with conspiracy to smuggle contraband into MDC-Brooklyn.  As alleged, between April and June 2024, Campbell used a contraband cell phone to conspire with others to smuggle contraband into MDC-Brooklyn.  In several voice recordings found on the phone, Campbell explained his method of throwing a “line” out of a window of MDC-Brooklyn for a co-conspirator on the outside to “hook” or attach contraband, which could then be pulled back inside.  On June 30, 2024, Diez, Guerrero, Mora, and Rodriguez attempted to execute Campbell’s scheme by pulling a rope through the window of the recreation room in their housing area.  At the other end of that rope, correctional officers found what appeared to be suboxone, marijuana, a scalpel, a phone charger, lighters, and cigarettes.  If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorneys Russell Noble and Elizabeth D’Antonio are in charge of the prosecution.

U.S. v. Sean Smith, Rasheed Chapman and Antwan Mosley

Sean Smith, Rasheed Chapman and Antwan Mosley have been indicted by a grand jury for the June 2, 2024 assault of another inmate at MDC-Brooklyn.  The defendants violently assaulted the victim, slashing him across the face and neck and causing serious lacerations.  The victim was then chased through the housing unit and struck repeatedly by his assailants. If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorney Kamil Ammari is in charge of the prosecution.

U.S. v. Adil Duran

Adil Duran has been charged in an indictment with assault with a dangerous weapon, assault resulting in serious bodily injury and possessing contraband in prison.  As captured on video surveillance footage, on July 11, 2024, Duran slashed another inmate in the face and neck with a sharpened weapon, causing serious lacerations that required sutures.  If convicted, Duran faces up to 20 years in prison.  Assistant United States Attorney Kate Mathews is in charge of the prosecution.

U.S. v. Erik Steadman and Javaughn Horton

Erik Steadman and Javaughn Horton have been charged by complaint with assault in a federal detention facility for the September 5, 2024 assault of another inmate at MDC-Brooklyn.  As alleged, Horton and Steadman approached another inmate in their unit and began punching him repeatedly in the face until he fell to the ground.  The defendants continued punching and kicking the victim in the face, causing a significant laceration to his face.  If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorney Molly Delaney is in charge of the prosecution.

U.S. v. Angel Villafane

Angel Villafane, a member of the gang Valentine Avenue Crew, has been indicted for possession of 21 ceramic scalpels smuggled into MDC-Brooklyn on October 12, 2024.  As alleged, while sitting in the visiting room at MDC-Brooklyn, Villafane removed a ball full of ceramic scalpels from a bag of Doritos chips and placed them in his shirt.  Correctional officers later discovered the scalpels during a search.  If convicted, the defendant faces up to five years in prison. Department of Justice Trial Attorney Margaret P. Mortimer is in charge of the prosecution.

U.S. v. Juan Lopez and Jose Rivera

Juan Lopez and Jose Rivera have been indicted for assaulting another inmate and possessing contraband weapons.  As alleged, on November 11, 2024, Lopez and Rivera slashed and stabbed another inmate in their housing unit.  The victim was seated at a table when Rivera snuck up behind him and slashed him multiple times in the head and neck with a sharp object. As the victim ran to seek help, Lopez tried to prevent him from reaching the correctional officers’ station by swinging his own weapon, stabbing the victim in the arm.  The victim suffered three lacerations to the back of his head, one laceration to his neck and a puncture wound to his forearm.  If convicted, the defendants face up to 15 years in prison.  Assistant United States Attorney Russell Noble is in charge of the prosecution.

U.S. v. Tyquan Robinson

Tyquan Robinson has been charged in a five-count superseding indictment with conspiracy to commit wire and bank fraud, conspiracy to commit wire fraud, bank fraud, aggravated identity theft and possession of contraband in prison.  Robinson was originally detained at MDC-Brooklyn for his alleged role in defrauding a court-appointed criminal defense attorney by obtaining a stolen $125,000 Treasury check issued to the attorney as payment for representing indigent defendants and stealing his identity.  In October 2024, officers at the MDC performed a search of Robinson’s cell. Inside his locker, the officers discovered that Robinson had hidden a contraband cellphone inside of a box of Raisin Bran cereal. An examination of this contraband cellphone revealed that even while incarcerated at the MDC, Robinson was participating in a separate fraud scheme from his original charges by discussing stealing checks issued to others, opening multiple bank accounts, and exchanging third parties’ personally identifiable information.  If convicted, Robinson faces up to 30 years in prison.  Assistant United States Attorney James R. Simmons is in charge of the prosecution with the assistance of Special Agent Anthony Cunder.

U.S. v. Jairon Ortega-Corea

Jairon Ortega-Corea, an MS-13 gang associate, was charged by indictment with attempting to provide contraband to inmates at MDC-Brooklyn.  He was arrested on March 3, 2025 in Minnesota.  The charges stem from the December 2, 2024 discovery, by MDC-Brooklyn employees, of a package on the fourth-floor roof of the jail containing 18 cellular telephones, approximately 345 grams of marijuana and one liter of drinking alcohol, among other items.  The prior evening, a witness had observed the attempted smuggling of the package into MDC-Brooklyn, when it was pulled up by a rope dangled out of the window of an empty cell within the unit that houses MS-13 members.  An investigation subsequently revealed that the defendant, who is related to a high-ranking MS-13 member housed at MDC-Brooklyn, purchased several of the contraband items at a local Walmart the day prior to the discovery.  At the time of the purchase, Ortega-Corea was communicating with MS-13 inmates at MDC-Brooklyn who were using a different contraband phone.  If convicted, Ortega-Corea faces up to 20 years in prison.  Assistant United States Attorneys Megan E. Farrell, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.

U.S. v. Najee Jackson

Najee Jackson, a former correctional officer at MDC-Brooklyn, has been indicted by a grand jury for attempting to smuggle contraband into the facility.  On January 21, 2025, Jackson, who was employed as a correctional officer, arrived at MDC-Brooklyn to begin working a night shift. After making several failed attempts to clear the metal detector in the staff screening area, Jackson removed his Bureau of Prisons-issued protective vest, which was found to contain vacuum‑sealed bags of marijuana and cigarettes. Jackson resigned from the Bureau of Prisons two days later.  If convicted, the defendant faces up to five years in prison.  Assistant United States Attorneys Turner Buford and Russell Noble are in charge of the prosecution.

U.S. v. Devone Thomas

Devone Thomas, who was previously charged with the June 7, 2024 killing of Uriel Whyte inside of the MDC Brooklyn, is now additionally charged by complaint with possession of a contraband weapon.  On February 28, 2025, Thomas was transported to federal court in Brooklyn for a status conference in connection with his murder case. Upon his return to MDC-Brooklyn after the court appearance, a blade was found in Thomas’s groin area.  If convicted, the defendant faces up to five years in prison.  Assistant United States Attorney Elizabeth D’Antonio is in charge of the prosecution.

U.S. v. Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez and Elvis Trejo

Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez, and Elvis Trejo have been charged by complaint with assault in a federal detention facility for their roles in what became a unit-wide fight between inmates at MDC-Brooklyn. As alleged, on February 22, 2025, Castro, Lopez, Nunez, Rodriguez and Trejo, along with other as-yet uncharged individuals, approached another inmate in their unit, armed with weapons, and began chasing and stabbing him.  The victim was stabbed 18 times and required hospitalization for his injuries. The brawl ultimately resulted in at least five inmates, including the victim, requiring transportation to a local hospital for further treatment.  Gillespie, who was not a part of the initial group attacking the victim, joined the brawl after it began, and, also armed with a weapon, assaulted a fellow inmate in the course of the fight.  The fight resulted in more than 20 inmates requiring medical assessments, and at least 10 inmates appeared to have wounds consistent with being stabbed or slashed.  If convicted, each defendant faces up to 10 years in prison.  Assistant United States Attorney Stephen Petraeus is in charge of the prosecution.

*          *          *

The Office’s General Crimes Section is principally responsible for handling these cases, with substantial contributions from the Public Integrity Section, the Organized Crime and Gangs Section and the Office’s Long Island Criminal Section.  In addition to the Assistant United States Attorneys and Special Agent listed above, Special Agent Danielle Williams, Law Enforcement Coordinator Specialist Herbert Martin and Paralegal Specialists Matias Burdman and Erin Payne have provided substantial support on these cases.

The charges in the indictments and complaints described above are allegations, and the defendants are presumed innocent unless and until proven guilty.

The Defendants:

MIKE JOSIE
Age: 25

E.D.N.Y. Docket No. 25-CR-76 (FB)

--------------

DARYL CAMPBELL
Age: 39

IAN DIEZ
Age: 20

JONATHAN GUERRERO
Age: 34

ABEL MORA
Age: 23

MAYOVANEX RODRIGUEZ
Age: 30

E.D.N.Y. Docket No. 25-MJ-72

--------------

SEAN SMITH
Age: 34

RASHEED CHAPMAN
Age: 21

ANTWAN MOSLEY
Age: 23

E.D.N.Y. Docket No. 25-CR-58

--------------

ADIL DURAN
Age: 23

E.D.N.Y. Docket No. 25-CR-9 (ARR)

--------------

ERIK STEADMAN
Age: 24

JAVAUGHN HORTON
Age: 30

E.D.N.Y. Docket No. 25-MJ-70

--------------

ANGEL VILLAFANE
Age: 40

E.D.N.Y. Docket No. 25-CR-71 (HG)

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JUAN LOPEZ
Age: 26

JOSE RIVERA
Age: 20

E.D.N.Y. Docket No. 25-CR-72 (CBA)

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TYQUAN ROBINSON
Age: 30

E.D.N.Y. Docket No. 24-CR-51 (AMD)

--------------

JAIRON ORTEGA-COREA
Age: 23

E.D.N.Y. Docket No. 25-CR-83

--------------

NAJEE JACKSON
Age: 32

E.D.N.Y. Docket No. 25-CR-67 (OEM)

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DEVONE THOMAS
Age: 25

E.D.N.Y. Docket No. 24-CR-360 (EK)

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BRIAN CASTRO
Age: 24

FRANKLIN GILLESPIE
Age: 34

JUAN LOPEZ
Age: 68

JOWENKY NUNEZ JR.
Age: 22

HUGO RODRIGUEZ
Age: 29

ELVIS TREJO
Age: 24

E.D.N.Y. Docket No. 25-MJ-73

U.S. Attorney for the Eastern District of New York John J. Durham announced today the creation and launch of the Eastern District of New York’s Transnational Criminal Organizations (TCOs) Strike Force. Capitalizing on the Office’s preeminence in this area, the Strike Force will focus on investigating, prosecuting and dismantling cartels and TCOs, and their senior leadership by bringing charges that include terrorism, racketeering and operating a continuing criminal enterprise.

“I am establishing this Strike Force with immense pride in what this Office has already accomplished, as well as the knowledge that there is much more work to be done in the fight against TCOs,” stated United States Attorney Durham.  “Because of my Office’s significant experience and expertise in this area, we have a responsibility to our community and our country to dismantle these ruthless organizations from the top down in order to stop the violence, flow of drugs, and dangers they unleash in our District and across the nation.”

For more than two decades, the U.S. Attorney’s Office for the Eastern District of New York has been a nationwide leader in prosecuting many of the most significant TCOs in the country and the world, including innovative indictments of the highest-ranking international leaders of the La Mara Salvatrucha (MS-13), Sinaloa Cartel, Guadalajara Cartel, Juarez Cartel, H-2 Drug Cartel, Clan de Golfo and others.  In addition, this Office has investigated and prosecuted numerous other TCOs that have a significant operating presence in our district, including the Trinitarios, 18th Street and, more recently, Tren de Aragua (TdA). Notably, United States Attorney Durham has been at the forefront of these prosecutions, leading and serving on the Attorney General’s Transnational Organized Crime Task Force Subcommittee for MS-13 and directing Joint Task Force Vulcan, while other AUSAs in the Office have served on the subcommittees for Sinaloa, Jalisco New Generation (CJNG) Cartel, Hezbollah and Clan de Golfo.

Consistent with the Attorney General’s memorandum titled “TOTAL ELIMINATION OF CARTELS AND TRANSNATIONAL CRIMINAL ORGANIZATIONS” issued on February 5, 2025, which provided further guidance regarding President Trump’s January 20, 2025 Executive Order regarding TCOs such as TdA and MS-13, the Strike Force’s mission is as follows:

• Investigating, prosecuting and dismantling cartels and TCOs, with a particular focus on their senior leadership and management, including without limitation: Mexican drug cartels such as the Sinaloa, H-2, Juarez, CJNG and Clan de Golfo cartels, and TCOs that have a significant operating presence in the District, such as MS-13, the Trinitarios, the 18th Street gang and TdA.   

• Disrupting the criminal activities of TCOs, particularly those operating in the United States and/or that impact United States victims at home or abroad, including TCOs engaged in criminal activity involving terrorism; racketeering; drug trafficking, particularly with respect to fentanyl and fentanyl precursors; violent crime; human trafficking and smuggling; corruption of foreign officials; money laundering; immigration crimes; and fraud and cybercrime schemes.

• Identifying the sources and methods of illicit funds related to TCO financing and profits, and seizing and forfeiting bank accounts, digital assets, real property and other assets that are criminally derived, commingled with criminal proceeds, or otherwise involved in money laundering by or in support of TCOs.

• Coordinating the investigative efforts of the Office’s federal law enforcement partners in the Eastern District and beyond, including the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Postal Inspection Service, Internal Revenue Service, as well as High Intensity Drug Trafficking Areas Program (HIDTA), state and local police departments and district attorneys’ offices.

• Strengthening the Office’s partnerships and coordination with other Department of Justice components, including the National Security Division, Criminal Division, Joint Task Force Vulcan, Joint Task Force 10-7, Joint Task Force Alpha, OCDETF, MLARS, NDDS, OIA and other United States Attorney’s Offices. 

The Chief of the International Narcotics and Money Laundering Section Francisco J. Navarro has been selected to serve as Director of the EDNY TCO Strike Force, and Assistant U.S. Attorneys Megan E. Farrell and Gabriel Park have been selected as Deputy Directors.  In addition, the Strike Force will have at least one representative from each section of the Office’s Criminal Division to capitalize on existing experience, coordinate strategic focus and maximize resources to make an even more significant impact combatting TCOs. The Strike Force will also include OCDETF-designated AUSAs, Project Safe Neighborhood (PSN) coordinators, as well as a designated representative from the Civil Division to ensure the Strike Force leverages civil remedies as appropriate.  The Strike Force will also coordinate closely with the Office’s Immigration Enforcement Working Group.

Francisco J. Navarro

AUSA Navarro joined the Department in 2013 and the Office in 2018 after serving as an AUSA in the District of New Jersey.  He has been in charge of INML since April 2023.  He received his B.A. from Boston University and his J.D. from Georgetown University Law Center.

AUSA Navarro has prosecuted several significant narcotics, national security and material support cases.  He has also prosecuted significant white collar cases involving sanctions evasion, money laundering and the Bank Secrecy Act.  For example,  AUSA Navarro is part of the team prosecuting Rafael Caro Quintero for leading a continuing criminal enterprise, including his role in the kidnapping, torture and murder of DEA Special Agent Enrique “Kiki” Camarena.  He is also leading the team prosecuting Ismael Zambada Garcia (aka “El Mayo”) for his founding and two-decade leadership of the Sinaloa Cartel—a continuing criminal enterprise—and one of the most violent and powerful drug cartels in the world.  In United States v. Usuga David, et al., he led the team that obtained a 45-year prison sentence against Dairo Usuga David (aka “Otoniel”) who was the supreme leader of the Clan del Golfo and was considered the most dangerous narco-terrorist in Colombia since Pablo Escobar.  AUSA Navarro also led the team that obtained the first indictments in the nation against Chinese chemical manufacturing companies and employees for importing fentanyl precursors into the United States and working with Mexican cartels to manufacture and distribute fentanyl in the United States.  In addition, AUSA Navarro is also leading the prosecution of Mohammad Bazzi, a Specially Designated Global Terrorist and financier for Hizballah, a foreign terrorist organization on sanctions evasion and money laundering charges.  AUSA Navarro has been involved in multiple prosecutions of individuals and institutions for failing to follow United States laws regarding maintaining effective anti-money laundering programs, the prohibition on the provision of material support to designated Foreign Terrorist Organizations, or other financial regulations.

Megan E. Farrell

AUSA Farrell joined the Office in 2018, and currently serves in the Office’s Long Island Criminal Section.  She is one of the Office’s Human Trafficking Coordinators and previously served as an Acting Deputy Chief in the Office’s General Crimes Section.  She received her B.A. from Boston College and her J.D. from St. John’s University.

AUSA Farrell has prosecuted significant organized crime, gang and sex trafficking cases during her time in the Office.  In United States v. Canales-Rivera et al. and United States v. Arevalo-Chavez et al., she is part of the team prosecuting the highest-ranking members of MS-13’s international command and control structure, including the body known as the Ranfla Nacional, with charges that include conspiracy to provide and conceal material support to terrorists, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to finance terrorism and narco-terrorism conspiracy.  In United States v. Alexi Saenz et al., AUSA Farrell was part of a team that secured the convictions of two MS-13 defendants to racketeering and other charges in connection with eight murders.  In United States v. Blanco et al., she was a member of the team that secured the convictions of three high-ranking MS-13 gang members to racketeering charges in connection with nine murders.  In United States v. Escobar, AUSA Farrell was part of the team that secured a sentence of 50 years after the defendant was convicted on April 8, 2022, following a four-week trial, of racketeering, including predicate acts of murder, conspiracy to murder rival gang members, and obstruction of justice and murder in aid-of racketeering, in relation to the deaths of four young men who were hacked to death with machetes and other sharp objects by  more than a dozen MS-13 members and associates after Escobar lured them to a local park in 2017.  In United States v. Lampley-Reid, AUSA Farrell was part of the team leading to a Bloods gang member being sentenced to 23 years in prison for sex trafficking of minors.  Additionally, AUSA Farrell is part of the team charging former CEO of Abercrombie & Fitch and two other individuals with sex trafficking and interstate prostitution.

Gabriel Park

AUSA Park joined the Office in 2022 after serving in the United States Air Force Judge Advocate General’s Corps.  He received his B.A. from Wake Forest University and his J.D. from Brooklyn Law School and clerked for the Honorable Dora L. Irizarry.  He currently serves in the Office’s Organized Crime and Gangs Section.

AUSA Park has prosecuted significant violent organized crime and gang cases.  In United States v. Yu, he was part of the prosecution team that convicted two defendants who were subsequently sentenced to life imprisonment in a murder-for-hire scheme of a perceived business rival, and in the related case United States v. Abreu, AUSA Park was on the prosecution team that convicted a third defendant for his role in the murder-for-hire scheme.  In United States v. Thompson, AUSA Park was on the prosecution team that convicted a Long Island man who was later sentenced to 30 years in prison for drug trafficking, distribution of fentanyl that resulted in a death and illegal possession of firearms.    

Earlier today, in federal court in Brooklyn, Quintin Green, also known as “Wild Child,” was sentenced by United States District Judge LaShann DeArcy Hall to 35 years’ imprisonment for the murder of former federal witness Shatavia Walls in July 2020.  Green, a member of the Ninedee Gang, a violent criminal enterprise operating out of the Louis H. Pink Houses in East New York, pleaded guilty in April 2024 to causing Walls’ death through use of firearms.  Green also pleaded guilty to attempted Hobbs Act robbery for attempting to steal televisions from a Target store in Staten Island in November 2020 and was sentenced to a concurrent term of five 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) and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

“The calculated murder of Shatavia Walls by members and associates of the Ninedee Gang arose from a twisted desire to murder her in retaliation for her federal testimony and perceived disrespect of the gang,” stated United States Attorney Durham.  “Quintin Green shot an unarmed woman in cold blood to make a name for himself in the gang, but he should be called out for what he truly is, a cowardly killer.  He deservedly will spend decades in a federal prison.  I commend the FBI special agents, the NYPD detectives and the prosecutors in my Office who worked tirelessly to dismantle this gang, achieve justice for Ms. Walls and make the Pink Houses and the surrounding area in East New York a safer place for the law-abiding residents of that community.”

“Along with other Ninedee members, Quintin Green targeted and callously killed Shatavia Walls and then bragged across social media about his abhorrent crimes in an effort to bolster the gang’s dangerous reputation,” stated FBI Acting Assistant Director in Charge Backschies.  “This premeditated ambush was an unjust retributive attack against a former government witness trying to protect her community from further gang violence. May today’s sentencing reflect the FBI’s continued refusal to tolerate any attempts to intimidate those who speak out against gang violence.”

“Today, we are bringing a cold-blooded murderer to justice,” stated NYPD Commissioner Tisch.  “Quintin Green and the Ninedee Gang terrorized their neighborhood, put children in danger, and viciously killed an unarmed woman. Let this serve as a clear message that we will go after violent gangs that break the law and cause widespread harm and fear. I thank the NYPD detectives and the prosecutors in this case for their tireless work to hold these perpetrators accountable.”

As set forth in [the government’s sentencing memorandum and other court filings], Green and other members of the Ninedee Gang targeted Walls for murder because she testified against a Ninedee Gang member in federal court in Brooklyn in 2019, had a confrontation with Ninedee Gang members who were setting fireworks off near children on July 4, 2020 and her affiliation with the rival “7” and “8” Pink House apartment buildings.  For those reasons, she was considered by the gang to be a high-value target. The defendant became known as “Wild Child” due to his reputation for violence and, in order to earn status in the gang, boasted about his willingness to shoot rivals.  He was one of two shooters who gunned Walls down on July 7, 2020.

Further, as proven at the trial of Green’s co-defendant, Ninedee Gang leader Maliek Miller, Ninedee Gang members were affiliated with the “5” and “6” Pink Houses apartment buildings and engaged in ongoing gang-related violence within and outside of the New York City Housing Authority complex.  Ninedee Gang protected its turf through violence and sought to silence anyone who they perceived to be working with law enforcement. 

The murder of Walls was coordinated by Ninedee Gang members, including Green.  Prior to her court testimony, fliers had been posted around the Pink Houses stating, “Shatavia Been a Rat And She Still Ratting.” 

On July 4, 2020, Walls and others were involved in a physical altercation with members of Ninedee for lighting fireworks around young children.  Miller went to the scene of the altercation, called Walls a “snitch,” fought with her and fired a gunshot.  Following the altercation, Miller planned with other Ninedee Gang members, including Green, to kill Walls.

On July 7, 2020, Walls was spotted by Green and his co-defendant Joe Santana.  Green and Santana began shooting at her.  Green then chased Walls down a path at the Pink Houses, continuing to shoot her. Walls suffered numerous gunshot wounds and died of her injuries 10 days later. 

Co-defendant Shakur Bey destroyed the clothing that Green and Santana wore during the shooting by throwing the items down an incinerator chute. Co-defendant Kevin Wint, who was not present at the murder, rented a hotel room at a Best Western Hotel near John F. Kennedy International Airport to provide a place where Green and others could hide out overnight.  In the days after the murder, Green and Wint posted to social media claiming credit to the Ninedee Gang for the killing.   

Miller was convicted in June 2024 of murder in-aid of racketeering and faces a mandatory term of life in prison when he is sentenced.  Santana and Fernandez pleaded guilty to their roles in the murder. Santana was sentenced to 22 years in prison and Fernandez is awaiting sentencing.  Wint pleaded guilty in March 2023 and was sentenced to 110 months’ imprisonment. Bey pleaded guilty in December 2023 and was sentenced to 60 months’ imprisonment.  Ninedee leader Raquel Dunton is charged with acting as an accessory after-the-fact to Walls’ murder and obstruction of justice for assisting fellow gang members in concealing evidence of the crime.  Dunton is also charged with trafficking cocaine and is awaiting trial.

In addition to the murder, Green pleaded guilty to attempting to commit a November 3, 2020 robbery of a Staten Island Target store. Green attempted to steal two flat- screen televisions and was stopped by a security guard. Green punched the security guard causing her to fall and attempted to flee with one of the two televisions. He was arrested by police after fleeing the scene.

The government’s case is being handled by the Office’s Organized Crime and Gang Section.  Assistant United States  Attorneys Emily J. Dean, Margi Schierberl and Irisa Chen are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Intelligence Analysts Eungee Hwang and Ashley Hinkson.

The Defendant:

QUINTIN GREEN (also known as “Wild Child”)
Age: 24
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

Defendant Convicted at Trial:

MALIEK MILLER
Age: 31
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

Defendants Who Previously Pleaded Guilty:

JOE SANTANA (also known as “Baby Joe”)
Age: 20
Brooklyn, New York

CHAYANNE FERNANDEZ (also known as “White Boy”)
Age: 24
Brooklyn, New York

KEVIN WINT (also known as “Kev G”)
Age: 31
Brooklyn, New York

SHAKUR BEY (also known as “Speedy”)
Age: 27
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

Defendant Awaiting Trial:

RAQUEL DUNTON (also known as “Rah”)
Age: 38
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-344 (LDH)

Hector Rosario, a former detective with the Nassau County Police Department (NCPD), was found guilty today by a federal jury in Brooklyn of making false statements to Federal Bureau of Investigation agents about his work for the Bonanno crime family.  The verdict followed a seven-day trial before United States District Judge Eric N. Vitaliano.  Rosario was fired by the NCPD after he was indicted in August 2022.  When sentenced, Rosario faces up to five 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) and Anne T. Donnelly, District Attorney, Nassau County District Attorney’s Office, announced the verdict.

“This corrupt detective chose to prove his loyalty to an organized crime family over the public he was sworn to protect,” stated United States Attorney Durham. “When police officers exploit their positions for personal gain, it erodes public trust in law enforcement. My Office has zero tolerance for corruption by any public officials, and will continue to work with our law enforcement partners to ensure that it is punished to the fullest extent of the law.”

“Hector Rosario, a former Nassau County detective, allowed himself to be bought by the mob to blatantly lie during a federal investigation into the Bonanno family’s illegal gambling operations,” stated FBI Acting Assistant Director in Charge Backschies. “Rosario’s lies not only protected an organized criminal enterprise, but also eroded the public’s trust in law enforcement and is a disservice to all who wear the badge honoring their oath to protect and serve. The FBI remains committed to disrupting any corrupt officer who prioritizes personal wealth over integrity to the shield.”

“Hector Rosario cared more about lining his pockets with Bonanno family money and protecting his own interests than his fidelity to the law,” stated Nassau County District Attorney Donnelly.  “He disgracefully compromised the investigative work of his fellow detectives by tipping off a target and lied to federal agents as the walls were closing in on him. Together with our law enforcement partners, we will uncover and vigorously prosecute corruption in our law enforcement ranks in Nassau County, because no one is above the law.”

As proven at trial, Rosario was paid by the Bonanno crime family to protect its illegal gambling operations. For over a decade, the Bonanno crime family operated illegal gambling businesses inside various coffee shops and sports clubs throughout Queens and on Long Island.  During the same period, the Genovese organized crime family operated illegal gambling businesses out of their own locations in Queens and Long Island, including Sal’s Shoe Repair in Merrick, New York, and the Centro Calcio Italiano Club in West Babylon, New York.

The Bonanno organized crime family paid Rosario to attempt to shut down rival gambling parlors, including by conducting a fake police “raid” on the Genovese-run gambling spot located inside Sal’s Shoe Repair.  Rosario also provided a tip about a rival gambling spot to another detective in an attempt to get the location shut down.  He warned a Bonanno crime family associate that he was under investigation and not to speak on the phone because law enforcement might be listening, and Rosario also looked up the home address of a possible witness Rosario believed was cooperating against the Bonanno crime family.

In January 2020, during the course of a federal grand jury investigation into the racketeering activities of the Bonanno and Genovese organized crime families, Rosario was interviewed by FBI agents. Rosario falsely stated that he had no information about the Mafia or illegal gambling spots.  He denied knowing the identity of the crime family associate he had warned, and he further falsely stated that he was not familiar with the gambling business inside Sal’s Shoe Repair.

Rosario was acquitted by the jury of obstruction of justice.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Anna L. Karamigios, Sophia M. Suarez and Sean M. Sherman are in charge of the prosecution, with the assistance of Paralegal Specialist Eleanor Jaffe-Pachuilo.

The Defendant:

HECTOR ROSARIO
Age:  51
Mineola, Long Island

E.D.N.Y. Docket No. 22-CR-355 (ENV) 

Rafael Caro Quintero (Caro Quintero) and Vicente Carrillo Fuentes (Carrillo Fuentes), both citizens of Mexico, were arraigned in federal court in Brooklyn today for crimes committed as leaders of Mexican drug cartels, which were responsible for significant drug trafficking into the United States and acts of extreme violence—including, with respect to Caro Quintero, the 1985 kidnapping, torture, and murder of Drug Enforcement Administration Special Agent Enrique “Kiki” Camarena—over a period of decades.  Caro Quintero was arraigned on a third superseding indictment charging him with four counts: one count of leading a Continuing Criminal Enterprise, which includes ten violations, including a murder conspiracy; two counts of international narcotics distribution conspiracy; and one count of unlawful use of firearms in furtherance of drug trafficking.  Carrillo Fuentes was arraigned on a superseding indictment charging him with seven counts: one count of leading a Continuing Criminal Enterprise, which includes six violations, including a murder conspiracy; four counts of cocaine distribution conspiracy; one count of unlawful use of firearms in furtherance of drug trafficking; and one count of money laundering conspiracy. Both Caro Quintero and Carrillo Fuentes were arraigned before United States Magistrate Judge Robert M. Levy after being expelled from Mexico to the Eastern District of New York.  

John J. Durham, United States Attorney for the Eastern District of New York, Frank A Tarentino III, Special Agent in Charge, Drug Enforcement Administration (DEA), New York Division, and Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the arraignments.

“For decades, Rafael Caro Quintero and Vicente Carrillo Fuentes have flooded the United States and other countries with drugs, violence, and mayhem, killing so many in their quest for power and control, including in RCQ’s case the brutal torture and murder of DEA Special Agent Camarena,” stated United States Attorney Durham.  “Today the next step in the American legal proceedings against these two cartel leaders—Caro Quintero, the “Narco of Narcos,” and Carrillo Fuentes, the head of the Juarez Cartel—are finally underway, and we are one step closer to justice being served.  My Office continues to be steadfastly focused on the vital work of protecting people of this district, and of all of those in the United States, from the destruction that cartels wreak on our communities.”

“Today marks a day which will be remembered in the history of the DEA. For nearly four decades, the men and women of the DEA have pursued Rafael Caro Quintero, the man responsible for the kidnapping, torture, and death of fallen DEA Special Agent Kiki Camarena, and the leader of one the most notorious and violent drug cartels. Today, Rafael Caro Quintero will finally face the consequences for the crimes he committed” stated DEA New York Special Agent in Charge Frank Tarentino. “No matter how long it takes, or where you hide, the DEA remains patient and committed in our global pursuit to targeting those individuals who have brought violence and destruction to our communities. The DEA will make sure justice is delivered.”

“Make no mistake: the world is undoubtedly a safer place with these men in custody in the United States. Carrillo-Fuentes and Rafael Caro Quintero are merciless terrorists who used fear as a tactic to intimidate their rivals and the public. ICE Homeland Security Investigations special agents and personnel with our El Dorado Task Force have dedicated years to investigating the alleged crimes and bloodshed at the hands of these defendants,” said ICE Homeland Security Investigations Special Agent in Charge Michael Alfonso.

Rafael Caro Quintero

Caro Quintero was first indicted in the Eastern District of New York in 2015, and a third superseding indictment was returned against him in 2018. As alleged in the indictment and other public filings, Caro Quintero’s involvement in drug trafficking and violence is extensive, ruthless, and notorious.  Known as the “Narco of Narcos,” Caro Quintero started cultivating marijuana as a teenager in Mexico in the 1960s and developed transportation and distribution networks and routes that enabled him to move that marijuana into the United States.  Caro Quintero also manufactured and trafficked heroin and methamphetamine from Mexico into the United States.  Caro Quintero then joined with Colombian cocaine manufacturers to use his networks and routes to traffic cocaine from South America, through Central America and Mexico, into the United States.  By the 1970s, Caro Quintero’s organization became known as the Guadalajara Cartel, which ultimately joined the syndicate known as the “Sinaloa Cartel” (or Mexican “Federation”), the largest drug trafficking organization in the world.

In 1985, Caro Quintero ordered the kidnapping, torture, and murder of DEA Special Agent Camarena.  Caro Quintero believed Camarena was responsible for leading the Mexican government to seize Caro Quintero’s largest ranch in Chihuahua, Rancho Buffalo.  Caro Quintero’s men abducted Camarena and took him to a location where he was tortured and interrogated for approximately two days, after which Caro Quintero and his men killed Camarena.

Later in 1985, Caro Quintero went to prison in Mexico. Nevertheless, from 1985 to 2013, while in prison, Caro Quintero continued operating his drug trafficking organization (the “Caro Quintero DTO”), using family members and associates on the outside to assist him.  The Caro Quintero DTO trafficked large quantities of marijuana, cocaine, methamphetamine, and heroin into the United States.  After his release from prison in 2013, Caro Quintero went into hiding and continued running the Caro Quintero DTO from various locations in the mountains of Sinaloa.  The Sinaloa Cartel provided Caro Quintero with protection during this time.   

Caro Quintero and the members and associates of his organization carried firearms in furtherance of their drug trafficking activities, including pistols and AK-47s.  Caro Quintero himself carried a Colt .38 Super pistol with a diamond encrusted handle and “R-1” written in gold.

Vincente Carrillo Fuentes

Carrillo Fuentes was first indicted in the Eastern District of New York in 2009, with superseding charges filed in 2019.  As alleged in the indictment and other public filings, Carrillo Fuentes and his brother, Amado Carrillo Fuentes, led the infamous Juarez Cartel for more than two decades.  Under the leadership of Carrillo Fuentes, the Juarez Cartel dominated and controlled drug trafficking through the El Paso-Ciudad Juarez corridor and used its control of the Texas-Mexico border to deliver multi-ton shipments of cocaine throughout the United States, including to locations in New York, Texas, California, and Illinois.

Until approximately 2004, Carrillo Fuentes and the Juarez Cartel were aligned with the Sinaloa Cartel, one of the largest transnational criminal organizations in the world.  The two organizations worked collectively, partnering in drug shipments and sharing infrastructure as they trafficked tons of cocaine into the United States.  Throughout this partnership, Carrillo Fuentes and his associates corrupted public officials and taxed other drug-trafficking organizations as they asserted their control over the all-important El Paso-Ciudad Juarez corridor.  When this partnership finally splintered—and Carrillo Fuentes and the Juarez Cartel split from the Sinaloa Cartel and realigned with the rival drug traffickers such as the Zetas—Mexico was plunged into a decade of war and bloodshed.  Carrillo Fuentes was at the center of this chaos, initially as the commander of the Juarez Cartel’s sicarios (the Spanish term for contract killers) and soldiers, and then later as the leader of the entire Juarez Cartel.

* * * * *

The government’s cases against Caro Quintero and Carrillo Fuentes are part of the operations of the Organized Crime Drug Enforcement Task Forces (OCDETF).  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 charges in the indictments are merely allegations and the defendants are presumed innocent unless and until proven guilty.  Both defendants face mandatory life sentences and, if convicted, could face the death penalty.

The government’s cases against Caro Quintero and Carrillo Fuentes are being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Saritha Komatireddy, Francisco J. Navarro, Erin Reid, and Andrew Wang are in charge of the prosecution of Caro Quintero, and Assistant United States Attorneys Erik D. Paulsen and Miranda Gonzalez are in charge of the prosecution of Carrillo Fuentes.  Asset forfeiture matters for both cases are being handled by Assistant United States Attorney Brendan King.  Paralegal Specialists Melissa Bennett and Huda Abouchaer provided assistance on both cases.  

The Defendants:

RAFAEL CARO QUINTERO
Age: 72
Sonora, Mexico

E.D.N.Y. Docket No. 15-CR-208 (FB)

VICENTE CARRILLO FUENTES
Age:  62
Sinaloa, Mexico

E.D.N.Y. Docket No. 09-CR-522 (JMA)

A criminal complaint was unsealed today in federal court in Brooklyn charging Mansuri Manuchekhri with conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and to the Islamic State-Khorasan Province (ISIS-K), possessing firearms while unlawfully in the United States and immigration fraud.  Manuchekhri was arrested today and made his initial appearance this afternoon before United States Magistrate Judge Robert M. Levy who ordered the defendant detained.

United States Attorney General Pam Bondi, John J. Durham, United States Attorney for the Eastern District of New York, Sue Bai, head of the Justice Department’s National Security Division, James E. Dennehy, 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 arrest and charges.

“Under no circumstances will my Department of Justice tolerate terrorism,” stated Attorney General Bondi.  “We stand ready to find, arrest, and prosecute those who seek to harm American citizens with the full force of the law. I stand with our federal, state, and local law enforcement partners who work to keep Americans safe and evil off our streets.” 

“As alleged, the defendant, who was in the United States illegally, not only facilitated tens of thousands of dollars in contributions to ISIS extremists overseas, but trained with assault rifles at shooting ranges in the United States and declared his readiness to ISIS,” stated United States Attorney Durham.  “Protecting the homeland and prosecuting evildoers who assist terrorist organizations by funding their violent and hateful agenda, here and abroad, will always be a priority of this Office.”   

Mr. Durham praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD and over 50 other federal, state and local agencies.

“The Justice Department will relentlessly pursue those who fund and support terrorists,” stated Sue Bai, head of the Justice Department’s National Security Division.  “We will not allow our immigration or financial systems to be exploited. Our country will not be a safe haven for those who try to harm Americans.”

“Today’s arrest demonstrates the FBI’s commitment to protecting the American people from the threat of terrorism,” stated FBI Assistant Director in Charge Dennehy.  “As alleged in the complaint, the defendant not only violated our immigration laws, but while unlawfully in the United States also provided substantial financial support to violent extremists affiliated with a designated foreign terrorist organization. In his promotion of violence and praise for terrorist attacks on U.S. soil, the defendant made clear his desire to support violent extremism, and I am grateful to all our folks on the Joint Terrorism Task Force for their vigilance and dedication to disrupting this threat and putting him behind bars.”

“The NYPD will stop at nothing to protect New Yorkers from those who support and pledge loyalty to violent ISIS extremists,” stated NYPD Commissioner Tisch.  “I commend the NYPD investigators and all of our local, state, and federal law enforcement partners for identifying and arresting this gun-toting fraudster, and for thwarting the dangerous domestic threat he posed to our communities.”

As alleged in the complaint, Manuchekhri traveled to the United States from Tajikistan in June 2016 on a non-immigrant tourist visa and remained in the country after his visa expired in December 2016.  In March 2017, Manuchekhri paid an American citizen to enter into a sham marriage with him so that he could obtain legal status in the United States.  However, he failed to provide certain supporting documentation that was requested by the government and his petition was never granted. 

From approximately December 2021 through April 2023, while residing in Brooklyn, Manuchekhri facilitated approximately $70,000 in payments to ISIS-affiliated individuals in Turkey and Syria, including to an individual who was later arrested by Turkish authorities for his alleged involvement in a January 2024 terrorist attack on a church in Istanbul for which ISIS-K publicly claimed responsibility.  Manuchekhri expressed his support for ISIS to others by praising past ISIS attacks in the United States and by collecting jihadi propaganda videos promoting violence and martyrdom.

The complaint further alleges that Manuchekhri possessed and used firearms and made frequent visits to shooting ranges even though he was prohibited from doing so as an alien unlawfully in the United States.  In February 2022, Manuchekhri recorded himself firing an assault rifle at a shooting range in New Jersey and sent the video to one of the ISIS-affiliated individuals in Turkey with the message, “Thank God, I am ready, brother.”        

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Manuchekhri faces a maximum sentence of 45 years’ imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Robert M. Pollack and Andrew D. Reich are in charge of the prosecution with assistance from Trial Attorneys John Cella and Andrea Broach of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colón.

The Defendant:

MANSURI MANUCHEKHRI
Age: 33
Sheepshead Bay, Brooklyn

E.D.N.Y. Docket No. 25-MJ-64

Mansuri Manuchekhri, 33, of Sheepshead Bay, Brooklyn, New York, was arrested today for allegedly conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and to the Islamic State-Khorasan Province (ISIS-K), possessing firearms while unlawfully in the United States, and immigration fraud. Manuchekhri was arrested today and made his initial appearance this afternoon in the Eastern District of New York.

“Under no circumstances will my Department of Justice tolerate terrorism,” said Attorney General Pam Bondi. “We stand ready to find, arrest, and prosecute those who seek to harm American citizens with the full force of the law. I stand with our federal, state, and local law enforcement partners who work to keep Americans safe and evil off our streets.” 

“The defendant allegedly supported ISIS and sent thousands of dollars overseas to individuals connected to ISIS,” said FBI Director Kash Patel. “The FBI is focused on preventing acts of terrorism and ISIS has a long and violent record of harming U.S. citizens. We are committed to working with our law enforcement partners to find and hold accountable those who assist terrorists and endanger the safety of Americans at home or abroad.”

“The Justice Department will relentlessly pursue those who fund and support terrorists,” said Sue Bai, head of the Justice Department’s National Security Division. “We will not allow our immigration or financial systems to be exploited. Our country will not be a safe haven for those who try to harm Americans.”

“As alleged, the defendant, who was in the United States illegally, not only facilitated tens of thousands of dollars in contributions to ISIS extremists overseas, but trained with assault rifles at shooting ranges in the United States and declared his readiness to ISIS,” said U.S. Attorney John J. Durham for the Eastern District of New York. “Protecting the homeland and prosecuting evildoers who assist terrorist organizations by funding their violent and hateful agenda, here and abroad, will always be a priority of this office.”    

As alleged in the complaint, Manuchekhri traveled to the United States from Tajikistan in June 2016 on a non-immigrant tourist visa and remained in the country after his visa expired in December 2016. In March 2017, Manuchekhri paid an American citizen to enter into a sham marriage with him so that he could obtain legal status in the United States. However, he failed to provide supporting documentation that was requested of him and his petition was never granted. 

As alleged in the complaint, Manuchekhri traveled to the United States from Tajikistan in June 2016 on a non-immigrant tourist visa and remained in the country after his visa expired in December 2016. In March 2017, Manuchekhri paid an American citizen to enter into a sham marriage with him so that he could obtain legal status in the United States. However, he failed to provide supporting documentation that was requested of him and his petition was never granted.

From approximately December 2021 through April 2023, while residing in Brooklyn, Manuchekhri facilitated more than $50,000 in payments to ISIS-affiliated individuals in Turkey and Syria, including to an individual who was later arrested by Turkish authorities for his alleged involvement in a January 2024 terrorist attack on a church in Istanbul for which ISIS-K publicly claimed responsibility. Manuchekhri expressed his support for ISIS to others by praising past ISIS attacks in the United States and by collecting jihadi propaganda videos promoting violence and martyrdom.

The complaint further alleges that Manuchekhri possessed and used firearms and made frequent visits to shooting ranges even though he was prohibited from doing so as an alien unlawfully in the United States. In February 2022, Manuchekhri recorded himself firing an assault rifle at a shooting range in New Jersey and sent the video to one of the ISIS-affiliated individuals in Turkey with the message, “Praise God, I am ready, brother.”

If convicted, Manuchekhri faces a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorneys Robert M. Pollack and Andrew D. Reich for the Eastern District of New York are prosecuting the case with assistance from Trial Attorneys John Cella, Andrea Broach, George Kraehe, and Ryan White of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colón.

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

Jesus Ricardo Patron Sanchez, also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen,” was arraigned on February 22, 2025 at the federal courthouse in Brooklyn on an indictment charging him with leading a continuing criminal enterprise, participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses.  Sanchez, a Mexican citizen, was arrested in Mexico in February 2019 on a provisional arrest warrant issued based upon charges in the Eastern District of New York and subsequently extradited from Mexico to the United States on February 21, 2025.  The arraignment was held before United States Magistrate Judge Peggy Kuo. Sanchez was ordered detained pending trial. 

John J. Durham, United States Attorney for the Eastern District of New York, and Matthew Allen, Special Agent in Charge, U.S. Drug Enforcement Administration, Los Angeles Field Division which oversees the Las Vegas District Office (DEA), announced the extradition and arraignment.

“As alleged in the indictment and court filings, Sanchez was one of the principal leaders of the H-2 Drug Trafficking Organization, a brutally violent transnational criminal organization that flooded American streets with dangerous drugs and protected its operations through murder and corruption,” stated United States Attorney Durham.  “This Office is committed to working with its federal and international partners to bring leaders of cartels and transnational criminal organizations to justice in the United States and to hold them accountable for the death and destruction they have unleashed here and abroad.” 

Mr. Durham extended his appreciation to the DEA’s offices in Las Vegas and Mexico City, Mexico, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Sanchez.

“Our country is facing an unprecedented drug crisis. Violent drug trafficking organizations, like H-2, fueled by unrelenting and callous greed have been saturating our communities with poison, death, and chronic devastation,” stated DEA Special Agent in Charge Allen.  “The DEA continues its unwavering determination to mitigate this evil and eradicate their terror and corruption from our streets.”

According to the indictment and court filings, Sanchez was a leader of the H-2 Drug Trafficking Organization (the H-2 DTO), a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico.  Sanchez’s alias “H-3” is a reference to his status as a successor to Hector Beltran-Leyva, the original “H” and one of the principal leaders of the Beltran Leyva Cartel that was previously part of the Sinaloa Cartel. The H-2 DTO was previously led by the defendant’s brother, Juan Francisco Patron Sanchez, also known as “H-2.”  Based on public reporting, after Juan Francisco Patron Sanchez was killed in 2017, the defendant assumed principal leadership over the H-2 DTO.  The H-2 DTO had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The DEA estimates that between January 2013 and February 2017, the H-2 DTO distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return.  In furtherance of its drug trafficking operation, the H-2 DTO used firearms and physical violence and is associated with numerous homicides. 

Between June 2013 and December 2016, the defendant was one of the principal leaders of the H-2 DTO and directed the distribution of large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into various parts of the United States, including the Eastern District of New York.  The defendant also coordinated the money laundering activities of other members of the H-2 DTO to ensure the proceeds of their drug trafficking were transferred back to Mexico.  In addition, he conspired with other leaders and members of the H-2 DTO to kill members of rival drug trafficking organizations and other individuals perceived as threats to the H-2 DTO.   

The extradition of Sanchez is the result 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 DEA.  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 charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the continuing criminal enterprise count, the defendant faces a mandatory life sentence; the defendant faces up to a life sentence on the other counts of the indictment.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States  Attorneys Andrew D. Wang and Raffaela S. Belizaire are in charge of the prosecution.

The Defendant:

JESUS RICARDO PATRON SANCHEZ (also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen”)
Age: 39
Mexico

E.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA) 

Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging Alain Bibliowicz Mitrani, a resident of Miami, Florida and a citizen of France and Colombia, with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.  The defendant was charged for his role as a leader of a scheme to launder more than $300 million, including for persons affiliated with cartels and other transnational criminal organizations engaged in drug trafficking, such as the Sinaloa Cartel.  The defendant is scheduled to make his initial appearance today in federal court in the Southern District of 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, Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.

“As alleged, the defendant used a seemingly legitimate technology company as a front for engaging in a multi-million dollar scheme that deliberately flouted federal laws to launder over $300 million, including for cartels and transnational criminal organizations engaged in drug trafficking,” stated United States Attorney Durham.  “Today’s arrest demonstrates that this Office will arrest and vigorously prosecute those who help facilitate financing for international drug traffickers.”

“Alain Bibliowicz Mitrani’s alleged money laundering scheme crumbled today, as did any façade of legitimacy behind his purported technology business. These accusations mark the beginning of the end for an alleged criminal organization that stands accused of defrauding financial institutions and enabling the availability of narcotics to American communities. Every day, HSI’s El Dorado Task Force stands alongside our law enforcement partners in utilizing every tool in its belt to ensure the public’s wellbeing is always the priority,” Stated HSI Acting Special Agent in Charge Alfonso. 

“With no regard for the rule of law, Bibliowicz supposedly laundered more than a quarter billion dollars in drug money. It’s alleged he is complicit in the moving of these illicit funds through shell companies to locations around the globe.  It’s time that he was stopped, and this arrest means Bibliowicz is no longer in the dirty-cash-washing business,” said Harry T. Chavis, Jr., IRS-CI New York Special Agent in Charge.

As alleged in the indictment and court filings, from approximately 2020 to 2024, the defendant was an owner and leader of a company (the “Company”) that laundered drug proceeds through United States financial institutions.  The defendant and his co-conspirators sought to have the Company appear as a legitimate technology business.  In reality, the Company’s public-facing operations were a cover for an elaborate multi-million-dollar money laundering enterprise based in Florida and Colombia.

Cartels and other transnational criminal organizations that engage in drug trafficking operate vast criminal enterprises that generate significant revenue globally by trafficking illicit narcotics.  Because these organizations generate billions of dollars in revenue annually from trafficked narcotics, they must find ways to repatriate these proceeds back to their home countries to fund their ongoing enterprises.  In many cases, drug trafficking organizations rely on separate money laundering operations, such as the Company, to repatriate their funds.  In exchange, money laundering organizations and their associates, like the defendant, earn a significant commission for taking on the risk of laundering illicit proceeds for these criminal organizations.

Here, the defendant established numerous shell companies that were used to open bank accounts that transmitted the illegal proceeds in an effort to obscure the source of the funds.  To protect the scheme from detection, the defendant lied to U.S. financial institutions about the purpose and activities of these companies, and he failed to register as a money transmitting business as required under state and federal law. In total, financial records show that the defendant and his organization laundered more than $300 million.

The defendant used his profits from this scheme for personal expenses and to fund his lavish lifestyle, including to purchase diamond pendant jewelry from designer jewelry company Van Cleef & Arpels, make payments towards his approximately $4 million Miami mansion, and fund luxury travel, including more than $16,000 on luxury hotel stays abroad in April 2023.

If convicted of the money laundering conspiracy offenses, the defendant faces a maximum sentence of 20 years’ and 10 years’ imprisonment on each count.  If convicted of the unlicensed money transmitting conspiracy offense, the defendant faces a maximum sentence of five years’ imprisonment on that count.

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

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using 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 Adam Amir and Philip Pilmar are in charge of the prosecution.

The Defendant:

ALAIN BIBLIOWICZ MITRANI
Age: 51
Miami, Florida

E.D.N.Y. Docket No. 25-CR-39 (CBA)

Earlier today, at the federal courthouse in Central Islip, a superseding indictment was filed that added two counts against Adam Kaplan for attempted obstruction of justice in connection with a grand jury investigation in the Eastern District of New York and during his pretrial release on fraud charges.  The superseding indictment also added additional charges of conspiracy to commit wire fraud and conspiracy to commit bank fraud against Adam Kaplan for conduct, including while on pretrial release, as well as an additional charge of money laundering conspiracy against Adam Kaplan and Daniel Kaplan.  In July 2023, Adam Kaplan and Daniel Kaplan, investment advisors with a financial services firm (Financial Services Firm), were charged in a 16-count indictment with conspiracy to commit wire fraud, wire fraud, investment advisor fraud and money laundering in connection with a scheme to defraud at least 50 victims of more than $5 million. The defendants, who are twin brothers, will be arraigned on the superseding indictment at a later date.

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

“As alleged in the superseding indictment, before his arrest, and while he was aware of a grand jury investigation into his crimes, Adam Kaplan attempted to threaten and injure victims and witnesses and bribe law enforcement,” stated United States Attorney Durham.  “But his disregard for the law and court-ordered rules didn’t stop there, he also repeatedly and flagrantly violated his conditions of pretrial release.  This Office will not tolerate attempts by defendants to undermine the criminal justice process and will prosecute them to the full extent of the law.”

Mr. Durham thanked the United States Securities and Exchange Commission, Chicago office, for its work on the case. 

"Adam Kaplan allegedly ordered threats be made to his victims and attempted to bribe authorities to disrupt a federal investigation into the brothers’ misconduct,” stated FBI Assistant Director in Charge Dennehy.  “Kaplan’s alleged actions reflect remorselessness as he continued to make concerted efforts to protect his multimillion-dollar fraud scheme even following his initial arrest. The FBI will never tolerate individuals who prey upon populations for personal wealth, and then resort to extreme measures to conceal their egregious wrongdoings.” 

As set forth in court filings and the underlying indictment, between May 2018 and November 2022, Adam Kaplan and Daniel Kaplan defrauded at least 50 clients of the Financial Services Firm, including some elderly and disabled victims, of at least $5 million.  Between January 2023 and September 2024, Adam Kaplan and a co-conspirator defrauded additional individuals of approximately $1 million and also conspired to defraud a financial institution. 

The superseding indictment charges that, between April 2023 and September 2024, while aware of a federal grand jury investigation into the brothers’ conduct, Adam Kaplan attempted to influence, obstruct and impede the underlying investigation, including through attempts to threaten, injure and pay off witnesses, and destroy evidence. Specifically, Adam Kaplan (i) ordered an associate to create a fake email from a victim so that Adam Kaplan could use the fake email as evidence at trial and to impeach that victim’s credibility; (ii) engaged in a months’ long fraudulent scheme to steal money from victims; and (iii) attempted to tamper with, threaten and pay off witnesses, including telling his associate that a victim needed “to fear,” that a victim should be “peeing blood / missing teeth and another visited / scared,” that a victim should be sent skull and crossbones imagery, and that his associate should “put [a victim’s] phone on fire . . . Seriously, please blow it up.” After his arrest, while on release on a multimillion-dollar bond, Adam Kaplan (i) attempted to bribe a Department of Justice official; (ii) continued his fraudulent schemes and continued to pay off witnesses; and (iii) committed credit card fraud.  To perpetuate these crimes, Adam Kaplan used multiple burner phones to avoid detection and monitoring by law enforcement, used aliases, attempted to break into others’ email accounts and attempted to destroy evidence.

If you were a client of Adam Kaplan or Daniel Kaplan and would like to file a complaint, please visit www.iC3.gov.  Please reference “Adam Kaplan” or “Daniel Kaplan” in your complaint.    

The charges in the superseding 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 Adam Toporovsky and Paul Scotti are in charge of the prosecution, with assistance from Paralegal Specialist Janelle Robinson.

The Defendants:

ADAM S. KAPLAN
Age:  35
Great Neck, New York

DANIEL E. KAPLAN
Age:  35
Great Neck, New York

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

Earlier today in federal court in Brooklyn, Domagoj Patkovic pleaded guilty to conspiring to make threats concerning explosives and conveying false information concerning explosives.  The proceeding was held before United States District Judge Ramon E. Reyes.  When sentenced, Patkovic faces up to 15 years in prison.  Patkovic was charged in August 2024. 

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

“As he admitted today, the defendant intentionally targeted Jewish hospitals and care centers in our District with bomb threats.  In doing so, he needlessly endangered patients and staff and diverted critical law enforcement resources from their core mission of keeping our community safe,” stated United States Attorney Durham.  “We will prosecute dangerous bomb threats and swatting schemes to the fullest extent of the law.”

Mr. Durham expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, the New York City Police Department, Nassau County Police Department and the U.S. Attorney’s Office for the District of Oregon for their assistance on the case.

As set forth in the indictment and in court filings, beginning at least as early as May 2021, the defendant and others made anonymous phone calls in which they made violent threats, including threats to detonate explosive devices, to Jewish hospitals and care centers within the Eastern District of New York, among other targets throughout the United States.

The defendant himself made threats in at least six separate calls to hospitals and on a call with local law enforcement who had responded to a 911 notification from one of the hospitals.  The defendant livestreamed the calls to others on an online social media and electronic communications service.  On several occasions, local police responded to the scene and conducted bomb sweeps. On at least one occasion in September 2021, the hoax bomb threat resulted in a partial evacuation and lockdown of an entire hospital on Long Island.  No explosive devices were ultimately found in any of the locations.

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States  Attorneys Alexander A. Solomon, Laura Zuckerwise and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon. 

The Defendant:

DOMAGOJ PATKOVIC 
Age: 31
Portland, Oregon

E.D.N.Y. Docket No. 24-CR-317 (RER)

Earlier today, a nine-count superseding indictment was unsealed in federal court in Brooklyn charging Justin Nudelman, his brother Brandon Nudelman, Ronnie Mershon and Michael Daddea with conspiracy to traffic firearms, conspiracy to obstruct justice, possession of machine guns and related firearms counts.  Three defendants were arrested this morning. Brandon Nudelman and Mershon are being arraigned this afternoon in Brooklyn before United States Magistrate Judge James R. Cho, and Daddea is making his initial appearance in federal court in Tampa, Florida for removal proceedings to Brooklyn.  Justin Nudelman had previously been charged with possession of machine guns and unregistered firearms in the underlying indictment and will be arraigned at a later date.

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 Division (ATF), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the charges.

“The defendants’ use of 3D printers to make untraceable, fully automatic weapons poses an extremely serious threat to public safety,” stated United States Attorney Durham.  “My Office and our federal and local partners are working tirelessly to protect our communities by preventing these guns from making their way into the hands of violent criminals.”

Mr. Durham expressed his appreciation to the United States Secret Service and the NYPD Intelligence Division’s Major Case Team and Intelligence Analytical Team for their work on the case.

“Illegally manufacturing and distributing privately made firearms and machine gun conversion devices is a direct threat to public safety,” stated ATF New York Special Agent in Charge Miller.  “This indictment underscores our unwavering commitment to identifying, disrupting, and dismantling the flow of illegal firearms that fuels violence in our communities. Through strong collaboration with our law enforcement partners, we are taking proactive action against those who endanger public safety. We commend the work of ATF New York, NYPD Ghost Gun Team, ATF Tampa, United States Secret Service, N.Y. State Police, Pennsylvania State Police, Richmond County DA’s office and EDNY. Every illegal firearm taken off the streets is a step toward protecting innocent lives and ensuring safer neighborhoods. We remain steadfast in our mission to combat gun violence.”

“These individuals thought they could evade law enforcement by using 3D printers to churn out illegal ghost guns and endanger our streets — but they were wrong” stated NYPD Commissioner Tisch.  “The NYPD, along with the ATF, the office of the U.S. Attorney for the Eastern District of New York, and all our partners, will not tolerate criminals wreaking havoc in New York City with untraceable, deadly weapons — and we will bring down anyone brazen enough to try.”

As alleged in the superseding indictment and in court filings, between approximately January 2023 and September 2023, the defendants conspired to illegally manufacture and traffic firearms. Mershon and Justin Nudelman used 3D printers and parts sourced from online retailers to assemble privately made firearms, commonly called “ghost guns.”  These 3D-printed firearms included at least 10 devices called “auto sears,” which convert semi-automatic guns into fully automatic weapons and are considered machine guns under federal law.  The defendants made the unserialized, unregistered ghost guns that they assembled available for sale without obtaining a license or otherwise notifying government authorities.  To date, 23 firearms have already been seized and the investigation has revealed that the defendants made numerous others.     

Justin Nudelman and Brandon Nudelman are also charged with conspiracy to obstruct justice.  As alleged, on September 7, 2023, law enforcement officers sought to seize Justin Nudelman’s phone pursuant to a judicially authorized search warrant. Both Justin and Brandon Nudelman took steps to conceal the phone and render its contents inaccessible to law enforcement.

The charges in the superseding indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted the defendants each face a maximum sentence of 20 years’ imprisonment.

Trial Attorney Arun Bodapati is in charge of the prosecution with assistance from Paralegal Specialist David Harrison.

The Defendants:

JUSTIN NUDELMAN
Age: 30
Staten Island, New York

BRANDON NUDELMAN
Age: 32
Staten Island, New York

RONNIE MERSHON
Age: 27
Staten Island, New York

MICHAEL DADDEA
Age: 29
Tampa, Florida

E.D.N.Y. Docket No. 23-CR-437(S-1) (AMD)

Earlier today, at the federal court in Brooklyn, a superseding indictment was unsealed charging Robert Cassino, also known as “Bobby Cassino,” Joseph Passalaqua and Joseph Rivera with securities fraud conspiracy, wire fraud conspiracy and securities fraud.  The defendants were arrested today and are being arraigned this afternoon before United States Magistrate Judge James R. Cho.  Raymond John Pirrello, Jr., also known as “Ray John,” was previously indicted for his involvement in the scheme.

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

“The defendants repeatedly lied to investors about the costs associated with their investments and diverted millions of dollars in undisclosed mark-up fees to their sales offices,” stated United States Attorney Durham.  “My Office will vigorously prosecute those who seek to take advantage of individual investors for their own greed.”

Mr. Durham expressed his appreciation to the Securities and Exchange Commission (SEC), New York Regional Office, for its significant cooperation and assistance during the investigation.

“At the behest of the company’s leadership, three defendants allegedly enticed investors with material misinformation to steal millions of their dollars through undisclosed upfront fees. This alleged scheme allowed the defendants’ respective sales offices to unlawfully profit at the expense of their clients’ trust and money. The FBI will never permit any individual to engage in hypocritical financial practices to covertly divert investments for personal enrichment,” stated FBI Assistant Director in Charge Dennehy.

As detailed in the superseding indictment, Pirrello, Cassino, Passalaqua and Rivera engaged in a scheme to defraud investors and prospective investors in securities offered by the company Late Stage Management, LLC (Late Stage). Late Stage was a New Jersey based manager of investment funds that offered investors “no fee” opportunities to invest in “Pre IPO” stocks, i.e., shares of stock in companies that anticipated an initial public offering (“IPO”) in the near term.  Late Stage worked with several sales offices throughout New Jersey, New York and Florida to promote the investments, including Pre IPO Marketing, Inc. (“Pre IPO Marketing”), Prior2IPO and B4IPO.

Pirrello worked as the partner to the leadership of Late Stage, and Cassino, Passalaqua and Rivera led operations at Pre IPO Marketing, Prior2IPO and B4IPO, respectively.  Pirrello and co-conspirators communicated with Cassino, Passalaqua, Rivera and others about how to market Late Stage to investors.  Cassino, Passalaqua and Rivera then made material misrepresentations and omissions to investors and potential investors in Late Stage relating to, among other things, the existence and amount of fees paid by investors in stock offered by Late Stage.  For example, they claimed that the only time Late Stage profited was on exit, when the company made its IPO or sold to a larger company, in which case it would be entitled to a 20% share of the investor’s profits.  In reality, however, Late Stage charged fees in the form of upfront markups ranging from 10-50% of each investment.  In total, between approximately March 2019 and July 2022, sales offices working on behalf of Late Stage raised approximately $528 million from investors and diverted approximately $88.6 million in undisclosed upfront markups to Pirrello, Cassino, Passalaqua, Rivera and their co-conspirators.   

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

If you believe that you or someone you know was victimized by Pirrello, Cassino, Passalaqua, Rivera or their co-conspirators, please inform the FBI at the following website: www.fbi.gov/Pirrello or by calling 1-800-CALL-FBI.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorney Jessica K. Weigel is in charge of the prosecution with assistance from Special Agent Martin Sullivan and Paralegal Specialist Sarah Burn.

The Defendants:

ROBERT CASSINO (also known as “Bobby Cassino”)
Age: 62
Long Beach, New York

JOSEPH PASSALAQUA
Age:  36
Sparta, New Jersey

JOSEPH RIVERA
Age: 45
Elmont, New York

Previously Indicted Defendant:

RAYMOND JOHN PIRRELLO, JR. (also known as “Ray John”)
Age: 48
Sparta, New Jersey

E.D.N.Y. Docket No. 23-CR-499 (S-1) (KAM)

Earlier today, Mina Tadrus pled guilty at the federal courthouse in Brooklyn, New York to committing investment adviser fraud in connection with a scheme to defraud investors in Tadrus Capital LLC, a hedge fund Tadrus founded and operated, of more than $5 million.  Today’s proceeding took place before United States District Judge Hector Gonzalez.  When sentenced, Tadrus faces up to five years in prison.    Tadrus was charged in September 2023.

John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Harry T. Chavis, Jr., Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the guilty plea.

“The defendant preyed on the Egyptian-American Coptic Christian community by falsely promising that his purported artificial intelligence-driven hedge fund would earn guaranteed annual returns of 30% or more, and taking advantage of their trust for his own personal gain,” stated United States Attorney Durham.  “This Office has prioritized protecting and seeking justice for individual investors in our District and beyond.”

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

“The only thing more artificial than Tadrus’ AI-driven hedge fund was his sincerity.  He sold a dream to trusting investors and instead of turning their money into profit, he swindled it for his own luxuries.  Today’s plea and forfeiture agreements are just a small step forward for his victims to receive genuine justice,” said Harry T. Chavis, Jr., Special Agent in Charge of IRS-CI New York.

According to court filings and facts presented during the plea proceeding, Tadrus marketed interests in Tadrus Capital LLC to investors based on false promises that he would employ artificial intelligence-driven trading strategies that would earn them guaranteed annual returns of 30% or more.

In reality, however, Tadrus did not use investor funds to engage in artificial intelligence-based trading as promised, nor did he engage in any trading activity. Instead, he used investor funds to pay employees, to purchase luxury gifts and expensive meals for himself, and to make Ponzi scheme-like payments to new victim investors.

If you were a Tadrus Capital LLC client and would like to file a complaint, please visit www.iC3.gov.  Please reference “Tadrus Capital” or “Mina Tadrus” in your complaint.

The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney John O. Enright and Special Agent Martin Sullivan are in charge of the prosecution with assistance from Paralegal Specialist Sarah Burn.

The Defendant:

MINA TADRUS
Age: 38
Tampa, Florida

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

Earlier today, at the federal court in Brooklyn, an indictment was unsealed charging Julio Medina, Christopher Dantzler and Weihong Hu with conspiracy to commit wire fraud, honest-services wire fraud, money laundering conspiracy, conspiracy to violate the Travel Act and the use of a facility of interstate commerce in aid of commercial bribery.  This morning, Dantzler was arrested on Long Island, Hu in Manhattan and Medina in the Bronx.  They will be arraigned this afternoon before United States Magistrate Judge James R. Cho.

John J. Durham, United States Attorney for the Eastern District of New York, Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.

“The defendants’ brazen and illegal kickback scheme stole money from the City of New York that was intended to provide emergency housing and support services during the pandemic,” stated United States Attorney Durham.  “Shamefully, the defendants saw the pandemic as an opportunity to line their pockets with stacks of cash, finance a luxury vehicle, purchase homes and pay off personal debts. While New York City was trying to curb the spread of COVID-19, the defendants exploited a nonprofit organization to enrich themselves.  My Office will relentlessly pursue those who steal public funds and deprive members of our community of crucial resources.”

DOI Commissioner Strauber stated: “As charged, these defendants, an Executive Director of a City-funded nonprofit and the principals of the nonprofit’s subcontractors, engaged in and concealed a bribery and kickback scheme, pocketing millions of dollars of funds intended to provide emergency housing and support services in New York City during the COVID-19 pandemic. I thank the Mayor’s Office of Risk Management and Compliance for the referral to DOI that prompted this investigation and the U.S. Attorney’s Office for the Eastern District of New York and the FBI for their partnership and commitment to protect critical public resources.”

“These three defendants allegedly pocketed millions of dollars from public funds allocated for emergency housing during the pandemic,” stated FBI Assistant Director in Charge Dennehy. “This alleged kickback scheme abused a program designed to provide a vulnerable population with healthier, unexposed lodging alternatives, to finance enhancements to the defendants’ lifestyles. The FBI will never tolerate any individual who twists public programs into a mechanism to sell services for personal profit.”

As alleged in the indictment, Medina founded and served as the Executive Director and Chief Executive Officer of a non-profit organization that, among other things, provided various reentry services to formerly incarcerated individuals (the “Organization”).  In June 2020, the New York City Mayor’s Office of Criminal Justice (MOCJ) contracted with the Organization to administer an emergency transitional housing program (the “Emergency Housing Program”), in partnership with local hotels and other businesses, to combat the spread of COVID-19 in New York City jails.  The Organization subsequently entered into agreements with various hotels to operate as reentry hotels under the Emergency Housing Program.  In total, between June 2020 and December 2023, the Organization received approximately $122 million in public funds from MOCJ to operate the Emergency Housing Program at these hotels.

Dantzler and Hu each operated or controlled businesses that received tens of millions of dollars in public funds from the Organization under the Emergency Housing Program.  Dantzler’s company purported to provide security services at the reentry hotels but was not a licensed security company and did not, in fact, provide security services.   Hu operated or controlled two hotels in Queens that operated as reentry hotels under the Emergency Housing Program and was a member of a repurposed catering company that provided food services to formerly incarcerated individuals residing at reentry hotels under the Emergency Housing Program.   

Medina solicited and accepted bribes and kickbacks from Dantzler and Hu in exchange for Medina providing business through the Organization to Dantzler’s and Hu’s respective businesses under the Emergency Housing Program.  Among other bribes and kickbacks, Dantzler and Hu purchased Medina an approximately $1.3 million townhouse; Hu, through one of her businesses, financed a luxury vehicle for Medina valued at approximately $107,000; and Dantzler paid to purchase and renovate a house for Medina for approximately $750,000.

As depicted in the following photograph, during an in-person meeting in September 2020, Hu also provided Medina with a stack of wrapped U.S. currency in exchange for two checks from the Organization made out to Hu’s catering company, totaling more than $187,000.   

In total, Dantzler and Hu provided Medina with at least $2.5 million in U.S. currency and in-kind benefits in exchange for Medina steering approximately $51 million in public funds from the Emergency Housing Program to Dantzler’s and Hu’s businesses.  In turn, Dantzler’s security company received approximately $21 million in public funds from the Organization under the Emergency Housing Program, of which Dantzler personally retained approximately $9 million in public funds.  Hu’s hotels received approximately $12 million in public funds from the Organization under the Emergency Housing Program, while her repurposed catering company received approximately $17 million in public funds.

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 Office’s Public Integrity Section.  Assistant United States  Attorneys Meredith A. Arfa, Eric Silverberg and Sean M. Sherman are in charge of the prosecution, with assistance from Paralegal Specialists Kavya Kannan and Rebecca Roth.

The Defendants:

JULIO MEDINA
Age:  64
Clifton Park, New York

CHRISTOPHER DANTZLER
Age:  49
Baldwin, New York

WEIHONG HU
Age:  59
Manhattan, New York

E.D.N.Y. Docket No. 25-CR-54 (RPK)

Earlier today, a federal jury in Brooklyn returned guilty verdicts against licensed pharmacists Yousef Ennab and Mohamed Hassan on all counts of a superseding indictment charging them with conspiracies to dispense and distribute oxycodone, as well as distribution and possession with intent to distribute oxycodone.  The verdict followed a three-week trial before United States District Judge Ann M. Donnelly.  When sentenced, the defendants each face up to 60 years in prison.

John J. Durham, United States Attorney for the Eastern District of New York; Frank A. Tarentino III, Special Agent in Charge, Drug Enforcement Administration, New York Division (DEA); Naomi Gruchacz, Assistant Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI); and Dr. James V. McDonald, Commissioner, New York State Department of Health, announced the verdicts.

“The defendants abused their access to oxycodone and violated the trust placed in them as pharmacists by illegally agreeing to supply drug dealers with tens of thousands of pills to sell on the streets of our district with zero regard for the immense harm this dangerously addictive narcotic has caused,” stated United States Attorney Durham.  “Pharmacists have a responsibility to prevent the illegal flow of drugs from their businesses, but these defendants only cared about lining their pockets with cash. With today’s verdict they will soon learn there is a reckoning for their criminal conduct that has contributed to the opioid epidemic.”

United States Attorney Durham expressed sincere thanks to his team of prosecutors and paralegals and all of the law enforcement partners whose tireless efforts contributed to the convictions of these defendants and their co-conspirators. They include the Federal Bureau of Investigation, the Office of the New York State Comptroller, the New York Attorney General’s Medicaid Fraud Control Unit and the New York National Guard.

“Today’s verdict against Yousef Ennab and Mohamed Hassan sends a strong message to anyone in the medical profession willing to betray their patients’ trust,” stated DEA New York Special Agent in Charge Tarentino.  “Pharmacists who abuse their license, a license to help and promote the health and safety of others, will be prosecuted to the fullest extent of the law.  This abuse is a breach of trust that not only undermines public confidence but also causes irreputable harm and erodes the foundation of integrity which the public relies on.  The DEA and our partners will continue to target those individuals who abuse their authority and profit from fueling the national opioid crisis.”  

“The pharmacists convicted in this case chose to dispense illegally prescribed controlled substances to patients and accept cash kickbacks to do so, which is especially egregious given the ongoing opioid epidemic,” stated HHS-OIG Special Agent in Charge Gruchacz.  “HHS-OIG will continue to work with our law enforcement partners to ensure health care providers involved in schemes that threaten patient safety are held accountable.”

“These two men used their positions as pharmacists to scheme and cheat the system, filling their pockets with the money of the vulnerable and addicted.  Yousef Ennab and Mohamed Hassan had little regard for the safety and well-being of their clients, and today a jury of their peers found them guilty of their criminal behavior.  This conviction was made possible with the collaborative efforts of our federal and local partners, and now both defendants will soon be faced with sentencing,” stated IRS-CI Special Agent in Charge Chavis.

“Whether illegal drug transactions occur on a street corner or in brick-and-mortar pharmacies masquerading as legitimate businesses, the pushers are fueling addiction,” stated NYPD Commissioner Tisch.  “The numbers here are staggering—over 1.2 million pills exchanged with a street value of approximately $24 million.  While the full extent of the harm is unquantifiable, the guilty verdicts send a clear message that wherever you illegally distribute drugs, your operation will be shut down and you will go to jail.  I thank the investigators in the NYPD, in the U.S. Attorney’s Office, and across numerous law enforcement agencies for their joint effort to eradicate poison from our streets.”

“The defendants’ criminal conduct, and that of their co-conspirators, flooded our city with 1.2 million pills of highly addictive oxycodone.  Their convictions make clear that DOI, the U.S. Attorney’s Office for the Eastern District of New York, and all of our partner law enforcement agencies involved in this investigation are committed to bringing to justice those responsible for the distribution of dangerous drugs.” stated DOI Commissioner Strauber.

“The Department takes professional and medical misconduct very seriously, with the health and safety of New Yorkers and our communities being of utmost concern,” stated New York State Department of Health Commissioner McDonald.  “The State Department of Health’s Bureau of Narcotic Enforcement will continue to remain vigilant and collaborate with law enforcement agencies to protect the public health by combatting diversion and safeguarding the legitimate use of controlled substances in health care.”

As proven at trial, Hassan and Ennab were licensed pharmacists who participated in a large-scale scheme using illegal medical prescriptions to obtain oxycodone for distribution on the streets of New York City.  Hassan held ownership stakes in more than a dozen pharmacies, where were located in Brooklyn, Queens and Staten Island and did business under the names Nile RX, Nile Ridge, Nile City, Sunset Corner, Prospect Care, Downtown RX and Forest Care, among others.  Ennab was the supervising pharmacist at Forest Care, one of Hassan’s pharmacies in Staten Island.

The scheme relied on filling illegally issued prescriptions for 30-day supplies of oxycodone 30 mg that were written out of a Brooklyn medical practice operating as a pill mill, often for patients that the resident doctor at the practice had never examined.  Oxycodone 30 pills are high in strength and are prescribed to cancer patients, for instance.  In some cases, the prescriptions were for individuals whose identities had been stolen and were not patients of the practice.  The prescriptions were then filled at pharmacies controlled by Hassan, including the pharmacy where Ennab worked.  Hassan and Ennab conspired with other drug dealers to effect the distribution of the illegally obtained oxycodone.  One of the drug dealers picked up the oxycodone from the pharmacies in exchange for cash payments to Hassan and Ennab.  Hassan and other pharmacist co-conspirators also billed insurance companies for the pills even though they had no legitimate medical purpose. The trial evidence included video footage of Ennab taking a cash payment from one of the drug dealers, Michael Kent, while handing over multiple prescriptions for oxycodone for sham patients. In total, the scheme resulted in the illegal distribution of more than 1.2 million pills of oxycodone worth more than $36 million in retail street value.

Six co-defendants, including Dr. Somsri Ratanaprasatporn, her receptionist Leticia Smith and pharmacists Bassam Amin and Omar Elsayed, previously pleaded guilty based on their involvement in the scheme and are awaiting sentencing.  A seventh co-defendant, Michael Kent, previously pleaded guilty and was sentenced to nine years’ incarceration.

These convictions are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation led by the U.S. Attorney’s Office and the DEA.  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.

Assistant United States  Attorneys Laura Zuckerwise, Victor Zapana and Gilbert M. Rein are in charge of the prosecution with assistance from Paralegal Specialists Rachel Friedman and Nadya Osman.  Assistant United States Attorney Claire Kedeshian is handing forfeiture matters.  

The Defendants:

YOUSEF ENNAB
Age:  27
Brooklyn, New York

MOHAMED HASSAN
Age:  34
Brooklyn, New York

Co-Defendants Who Pleaded Guilty:

LETICIA SMITH
Age:  54
Brooklyn, New York

BASSAM AMIN
Age: 69
Brooklyn, New York

OMAR ELSAYED
Age:  28
Hackensack, New Jersey

MICHAEL KENT
Age:  49
Brooklyn, New York

ANTHONY MATHIS
Age:  55
New Windsor, New York

Dr. SOMSRI RATANAPRASATPORN
Age:  75
Staten Island, New York

RAYMOND WALKER
Age:  70
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR-464 (AMD)

Earlier today, Gary Johnson, a Bloods gang leader also known as “G Money,” was arraigned in federal court in Central Islip on new charges in a 26-count second superseding indictment charging him with distributing controlled substances, including fentanyl and cocaine base, that caused the death of a woman and caused serious bodily injury to three additional victims.  Johnson is also charged with conspiracy to distribute and possession with intent to distribute heroin and fentanyl in Long Island, additional narcotics distribution offenses, various firearms offenses and destruction of evidence.  Today’s arraignment was held before United States District Judge Joan M. Azrack. Johnson previously was detained pending trial.

John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Kevin Catalina, Commissioner, Suffolk County Police Department (SCPD), announced the charges.

“Our district has suffered terribly from the opioid epidemic, and as alleged in the superseding indictment, Johnson sold large amounts of dangerous narcotics for his own profit, without regard for the deadly consequences of his actions, even after a victim was fatally poisoned by the defendant’s drugs,” stated United States Attorney Durham.  “With these new charges, this Office continues its tireless efforts, in conjunction with our federal and local law enforcement partners, to prosecute drug traffickers responsible for the opioid crisis. It is my hope that the charges will bring some measure of closure to the family members of the victim whose death was caused by the defendant.”

“Gary Johnson, a Bloods gang leader, allegedly sold substantial quantities of illicit drugs, which resulted in a known death of one victim and poisonings of three others. These alleged actions threatened public safety by exposing neighborhoods to a supply of dangerous substances,” stated FBI Assistant Director in Charge Dennehy. “The FBI and our law enforcement partners will continue its mission to assuage the flow of lethal narcotics from polluting our communities and apprehending those responsible for its pipeline.”

“For years, Gary Johnson knew the poison he was selling posed deadly consequences, yet, his only concern was about making money,” stated SCPD Commissioner Catalina.  “We will continue to work with our federal partners to take down drug traffickers while undoubtedly saving lives in the process.”

As alleged in court filings, Johnson is a leader of the G-Shine set of the Bloods gang. Between June 2013 and November 2020, when Johnson was arrested on federal charges, the defendant conspired to sell narcotics throughout Long Island. The drugs that Johnson sold – including heroin, fentanyl and cocaine base – resulted in at least four victims suffering poisonings. Specifically, on March 3, 2020, Johnson distributed narcotics which were ingested by John Doe #1 and Jane Doe #1 in the parking lot of Baseball Heaven in Yaphank, New York.  John Doe #1 and Jane Doe #1 lost consciousness and were revived by emergency medical personnel who administered CPR and Narcan on both victims.  They were resuscitated and survived.  On May 1, 2020, Johnson distributed narcotics ingested by John Doe #2 and Jane Doe #2. John Doe #2 was found unconscious by coworkers in St. James, New York, and was revived with Narcan. Jane Doe #2, a 39-year-old mother of a three-year-old son, was found deceased in her home in Rocky Point, New York. Her cause of death was determined to be acute mixed drug intoxication caused by a combination of cocaine and fentanyl – these drugs were supplied by the defendant.

The charges in the second superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Johnson faces a mandatory minimum sentence of 25 years’ imprisonment.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using 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 Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Mark Misorek, Meredith A. Arfa and Stephen Petraeus are in charge of the prosecution with assistance from Paralegal Specialist Dejah Turla.

The Defendant:

GARY JOHNSON
Age:  41
Bellport, New York

E.D.N.Y. Docket No. 20-CR-518 (S-2)(JMA)

United States Attorney John J. Durham announced today that the Eastern District of New York (EDNY) collected over $400 million in asset forfeiture actions in Fiscal Year (FY) 2024, ranking the EDNY first among all 93 districts in the country.  Forfeiture recoveries are generally derived from warrants and forfeiture orders against illegal proceeds generated by, among other things, transnational criminal organizations and cartels; financial frauds; bribery and political corruption; cybercriminals; and those who violate the Office of Foreign Assets Control sanctions (OFAC).  

“The forfeiture of criminal assets is an important tool used by law enforcement to deter crime and punish wrongdoers by depriving them of their ill-gotten gains,” stated United States Attorney Durham.  “To the extent possible, forfeited funds are used to compensate victims of crime.  That my Office collected the largest dollar amount of asset forfeiture of all U.S. Attorney’s Offices is a testament to the hard work and exceptional dedication of our prosecutors and professional staff in carrying out their mission to do justice, compensate victims, and hold defendants accountable for their crimes.”

In certain circumstances, forfeited assets deposited into the Department of Justice Assets Forfeiture Fund can be used to compensate victims of crimes, and for a variety of law enforcement purposes.  In addition, the U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. 

In addition to the asset forfeiture recoveries, EDNY collected a total of $333,368,879.70 in judgments and other debts on behalf of victims and the government in FY 2024 in criminal and civil actions filed in the district and in cases in which the Office worked with other U.S. Attorney’s Offices and components of the Department of Justice.  Of this amount, $303,583,835.60 was collected in criminal cases and $29,785,044.11 in civil cases.

FY 2024 Forfeiture Highlights

In March 2024, Gunvor S.A. (Gunvor), a part of the Gunvor Group, one of the largest commodities trading firms in the world, pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act.  The charge arose out of a scheme to bribe officials of the Ecuadorian Ministry of Hydrocarbons and Petroecuador, the Ecuadorian state-owned oil company, in order to obtain contracts to purchase oil products.  In exchange for these bribe payments, high-level Ecuadorian officials helped Gunvor win contracts to provide a series of oil-backed loans to Petroecuador.  Following the plea, United States District Judge Eric N. Vitaliano sentenced Gunvor to pay a criminal monetary penalty of more than $374 million and to forfeit more than $287 million in ill-gotten gains.

In October 2023, as previously ordered by United States District Judge Pamela K. Chen, $100,189,754.61 was forfeited from a Swiss bank account held by Datisa S.A.  As proven at two separate trials, Datisa was a corrupt corporate entity that paid and promised to pay millions of dollars in bribes to top soccer officials to secure the media and marketing rights to the 2016 Copa America Centenario, a soccer tournament played in stadiums throughout the United States.  This forfeiture is part of the larger investigation of the Federation Internationale de Football Association (FIFA), which exposed corruption throughout world soccer and has resulted in over 30 felony convictions and guilty pleas, and the recovery of over $200 million in forfeiture funds.  

Earlier today, in federal court in Brooklyn, Kenneth J. Ward, Jr. pleaded guilty to an indictment charging him with threatening to assault and murder a United States District Judge (the District Judge).  Today’s proceeding was held before United States District Judge John P. Cronan sitting by designation.  When sentenced, Ward faces up to 10 years in prison.

John J. Durham, United States Attorney for the Eastern District of New York, announced the guilty plea.

“The judges and other court officials who work every day to keep our country safe and uphold the rule of law should not have to fear for their lives for doing their jobs,” stated United States Attorney Durham.  “Threatening judges strikes at the very heart of our system.  This Office has no tolerance for violence or threats of violence against public servants.  We will prosecute offenders like the defendant to the fullest extent of the law.”

Mr. Durham praised the outstanding work of the United States Marshals Service on the case.

The charge is based on Ward’s threat at a telephone status conference in his pro se civil action, which was filed in federal court in Brooklyn.  Ward’s civil case was assigned to the District Judge, who ultimately dismissed most of Ward’s claims.  On July 15, 2024, Ward participated in a telephonic conference in connection with his case.  During that conference, which was recorded, the defendant became angry and threatened to choke the District Judge “to death.”  “And that’s on the f---ing – on the record,” Ward stated. At the plea hearing, Ward admitted that he made the threat in retaliation for the judge’s ruling against him in his civil case.

The government’s case is being handled by the Office’s General Crimes Section.  Trial Attorney Leonid Sandlar is in charge of the prosecution.

The Defendant:

KENNETH J. WARD JR.
Age: 59
Glendale, Queens

E.D.N.Y. Docket No. 24-CR-401

Earlier today in federal court in Central Islip, three Bloods gang members, Dwayne Murray, Kendrick Seymore and Lavalle Wilson, were arraigned on new charges in a 46-count second superseding indictment before United States District Judge Joan M. Azrack.  That indictment also charges an additional defendant, high-ranking Bloods gang member Sheim Tevin Ramsey-Davis (Ramsey-Davis), with racketeering and racketeering conspiracy, violent crimes in-aid-of racketeering, brandishing and discharging a firearm during a crime of violence, robbery, fraud and narcotics trafficking. Ramsey-Davis was arrested on January 30, 2025, in Augusta, Georgia and will be arraigned in the Eastern District of New York at a later date. 

The second superseding indictment includes the following new charges against Murray, Seymore and Wilson for crimes they allegedly committed in Suffolk County between 2016 and 2022:

• Murray is charged with a September 26, 2016 attempted murder; a May 28, 2020 attempted murder; a May 2020 gunpoint robbery; and firearms trafficking. Murray was previously charged with the June 12, 2020 murder of Wayne Cherry and Seymore was previously charged with the July 23, 2021 execution-style murders of Nyasia Knox, Diamond Schick and Richard Castano.       
• Seymore is charged with a May 2020 gunpoint robbery; an October 23, 2020 armed home invasion robbery; a September 25, 2021 armed home invasion robbery; and an October 1, 2021 attempted armed home invasion robbery.
• Murray and Wilson are charged with conspiring with other members of the gang to defraud victims of significant amounts of money between 2020 and 2022. 

John J. Durham, United States Attorney for the Eastern District of New York; Raymond A. Tierney, Suffolk County District Attorney; James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF NY); and Kevin Catalina, Commissioner, Suffolk County Police Department (SCPD), announced the arrest and charges.

“With these new and very serious charges, law enforcement continues its objective of dismantling the Bloods on Long Island, and of prosecuting gang members who are drivers of gun violence and numerous other crimes in Suffolk County,” stated United States Attorney Durham.  “My Office and our federal and local partners will not relent in our efforts to remove this threat in order to make our communities safer.” 

Mr. Durham expressed his appreciation to the U.S. Attorney’s Office for the Southern District of Georgia and FBI’s Resident Agency in Augusta, Georgia, for their assistance with the case.

“The crimes alleged here strike at the very fabric of our community through violence, intimidation and corruption. Each count in this indictment, from murder to firearms trafficking, represents not just a crime, but a family traumatized, a neighborhood living in fear, or young people pulled into a cycle of violence,” stated Suffolk County District Attorney Tierney.  “My office will continue working alongside our federal and local partners to dismantle all such criminal enterprises and restore safety to the communities they have terrorized.”

FBI Assistant Director in Charge Dennehy stated: “These three gang members allegedly engaged in an array of criminal activity –murders, armed robberies, and narcotics trafficking – designed to bolster their financial and internal social statuses as well as punish rival entities. This series of new charges emphasizes the various extreme measures the defendants will allegedly implement to support their gang’s operations. Alongside our law enforcement partners, the FBI remains steadfast in its mission to eradicate the gang violence and criminality polluting our communities.”

“This indictment underscores the collective commitment with ATF NY and our law enforcement partners,” stated ATF NY Special Agent in Charge Miller. “Dismantling violent gangs that terrorize our communities and threaten public safety remain a top priority. It is our obligation to bring every resource to bear in the face of brazen acts of violence. We remain fully committed to enhancing public safety through identifying and eliminating the key drivers of violence. Thank you to the efforts of the men and women of ATF NY Long Island Joint Firearms Task Force, FBI, Suffolk County Police Department and EDNY.”

“These defendants have terrorized the community for years, committing a spree of violent crimes,” stated SCPD Commissioner Catalina.  “It is through the diligent work of investigators from multiple agencies that we are able to levy new charges. The department along with our law enforcement partners remains committed to working together to fight the brutality of gang members.”

As alleged in court filings, the defendants engaged in numerous acts of violence on behalf of the Bloods gang, including robberies, home invasions, numerous shootings and four murders.  The defendants are members of a Bloods set known as the Gorilla Stone Bloods (GSB), which have “kaves” located in various towns on Long Island.  Murray and Ramsey-Davis were the leaders of the “Money Gang Kave.”  The second superseding indictment adds charges stemming from the defendants’ years-long use of violence to target their rivals and armed robberies to enrich the members of the gang.

Specifically, on September 26, 2016, Murray, who was the leader of a set of the Bloods, shot a victim multiple times to increase his own status within the Bloods.  On May 28, 2020, Ramsey-Davis, at Murray’s direction, fired numerous shots at two individuals believed to be associated with a rival gang who were seated in a parked car in front of a residence in Bellport. Murray, Seymore and Ramsey-Davis, along with other gang members, also routinely scouted lucrative robbery targets and committed several armed robberies and home invasions in Suffolk County in 2020 and 2021.  In addition, Ramsey-Davis and his co-conspirators sold large amounts of narcotics, including fentanyl. They also engaged in numerous fraud schemes, including identity theft, credit card and bank fraud and defrauding state unemployment systems. Ramsey-Davis also purchased and sold firearms, and supplied lower-level members of the gang with guns. 

Previously, Murray and Seymore were charged with racketeering, murder, attempted murder, firearms offenses and narcotics trafficking, and Wilson was charged with attempted murder, firearms offenses and narcotics trafficking. 

The charges in the second superseding indictment are allegations, and the defendants are presumed to be 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 Mark E. Misorek and Andrew P. Wenzel and Special Assistant United States Attorneys Donald N. Barclay and Dena C. Rizopoulos are in charge of the prosecution, along with Paralegal Specialist Dejah Turla.

The Defendants:

DWAYNE MURRAY (also known as “Wayno”)
Age:  33
Residence: Coram, Long Island

SHEIM TEVIN RAMSEY-DAVIS (also known as “KG”)
Age:  26
Residence: Augusta, Georgia

KENDRICK SEYMORE (also known as “KR”)
Age:  22
Residence: Coram, Long Island   

LAVALLE WILSON (also known as “Val,” Skip,” “Flip” and “Wes”)
Age:  30
Residence: Shirley, Long Island   

E.D.N.Y. Docket No. 22-CR-401 (S-2) (JMA)

Earlier today, an indictment was filed in federal court in Brooklyn charging Sergei Zharnovnikov, an arms dealer and citizen of Kyrgyzstan, with conspiring to export firearms from the United States to Russia without the necessary licenses and with illegal smuggling.  Zharnovnikov traveled from Kyrgyzstan to the United States last month and was arrested on January 24, 2025 in Las Vegas, Nevada, where he was attending the Shooting, Hunting, and Outdoor Trade (SHOT) Show to meet with U.S. arms dealers.  Zharnovnikov has been detained pending trial and 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, Devin DeBacker, head of the Justice Department’s National Security Division, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (BIS-OEE), announced the arrest and charges.

“As alleged, the defendant operated a sophisticated scheme to circumvent export controls and to export semi-automatic firearms and send them to Russia,” stated United States Attorney Durham.  “Today’s indictment sends a message to the world that we will vigorously enforce statutes that control and restrict the export of items that could be detrimental to the foreign policy or national security of the United States, in this case, preventing U.S.-made firearms from getting into the wrong hands.”

Mr. Durham thanked the U.S. Attorney’s Office for the District of Nevada for its assistance with the case.

“Violations of export control laws carry significant consequences for perpetrators in the U.S. and abroad,” said DeBacker, head of the Justice Department’s National Security Division.  “The Department of Justice is committed to working with our partners to hold accountable those who violate our laws to smuggle firearms to prohibited destinations such as Russia.”

“Attempting to illegally sell arms to Russia using multiple companies may seem like a method to evade United States sanctions, it is however a definite way to end up under arrest.  Sergei Zharnovnikov is alleged to have knowingly conspired with others to violate the export control laws of the United States to provide U.S made firearms to Russian companies.  The FBI will continue to enforce the export control laws enacted to safeguard our national security,” stated FBI Assistant Director in Charge Dennehy.

“The Bureau of Industry and Security is committed to aggressively investigating the illegal transshipment of US firearms to adversaries like Russia through third countries,” said BIS-OEE Special Agent in Charge Carson.  “Companies that provide false information to BIS to obtain export authorizations to circumvent our controls will be found out and held accountable.”

As alleged in the indictment and other court filings, since at least March 2020, the defendant, together with others, conspired to export firearms on the United States DOC Control List from the U.S. to Russia.  The defendant, the General Director and owner of an arms dealer located in Bishkek, Kyrgyzstan (Kyrgyzstan Company-1), entered into a five-year, $900,000 contract with a company located in Chesapeake, Virginia (U.S. Company‑1) to purchase and export U.S. Company-1 firearms to Kyrgyzstan.  DOC issued a license for U.S. Company-1 to export firearms to Kyrgyzstan Company-1, but the license prohibited the export or re-export of the firearms to Russia.  Nevertheless, the defendant exported and re-exported U.S. Company‑1 firearms to Russia via Kyrgyzstan.  These illegally exported firearms included semi‑automatic hybrid rifle-pistols from U.S. Company-1.

As alleged, after Kyrgyzstan Company-1 entered into a contract with U.S. Company-1, a second arms dealer company in Bishkek associated with the defendant (Kyrgyzstan Company-2) entered a contract with a Russian arms dealer (Russian Company-1) located in Moscow.  The contract between Russian Company-1 and Kyrgyzstan Company-2 provided that Kyrgyzstan Company‑2 would export “Goods” to Russian Company-1 in the amount of $10 million and noted that the “Goods” could be delivered in batches.  In correspondence in 2018, Russian Company-1 described the defendant’s company, Kyrgyzstan Company-1, as its “partner company.” 

On or about February 3, 2021, U.S. Company-1 received an export license from DOC to export over $800,000 worth of firearms and parts to Kyrgyzstan Company-1.  The license stated that items within the scope of the license “may not be reexported or transferred (in-country),” subject to certain exceptions not applicable here.

On or about July 2, 2022, the defendant emailed his banker: “Make payment according to the invoice attached to the letter,” and attached a commercial invoice from U.S. Company-1, which listed, among other things, 25 semi-automatic rifle-pistols with 25 unique serial numbers.  Two days later, on or about July 4, 2022, Kyrgyzstan Company‑2, sent $67,000 to Kyrgyzstan Company-1.  The next day, on or about July 5, 2022, Kyrgyzstan Company‑1 paid U.S. Company-1 $65,564—the full amount listed in the invoice from U.S. Company-1.

According to an Electronic Export Information (EEI) made on July 7, 2022, Company-1 exported semi-automatic rifles from John F. Kennedy International Airport to Kyrgyzstan Company-1 pursuant to its February 3, 2021 export license on or about July 10, 2022. According to the EEI filing, the value of the export from U.S. Company-1 to Kyrgyzstan Company-1 was over $59,000.  The EEI filing’s corresponding license application indicated that the firearms were for “commercial resale in Kyrgyzstan.”

On or about August 8, 2022, the defendant received a spreadsheet titled “Supply [U.S. Company-1] ([Russian Company-1]) weapon numbers.”  Russian Company-1 is a Russian company, and the DOC license did not authorize the export or re-export of the U.S. Company-1 firearms to Russia.  The spreadsheet listed the same semi-automatic rifle-pistol the defendant purchased from U.S. Company-1 and serial numbers matching the U.S. Company‑1 Invoice.

On or about November 14, 2022, the General Director of Russian Company‑1 executed a form used by tax authorities of the member states of the Eurasian Economic Union, which includes both Kyrgyzstan and Russia.  The form listed the seller as Kyrgyzstan Company‑2 and the buyer as Russian Company-1 with an address in Moscow, Russia, and identified the goods as the same semi‑automatic rifle‑pistols that U.S. Company-1 exported to Kyrgyzstan Company‑1, the defendant’s company.  The defendant did not apply for, obtain or possess a license to export or re-export the semi‑automatic pistol-rifles to Russia.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges, the defendant faces up to 30 years’ imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States  Attorney Ellen H. Sise is in charge of the prosecution, along with Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section (CES), with assistance from Litigation Analyst Rebecca Roth and CES Trial Attorney Scott Claffee.

The case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine.  Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

The Defendant:

SERGEI ZHARNOVNIKOV
Age:  46
Bishkek, Kyrgyzstan

E.D.N.Y. Docket No. 25-CR-45 (ENV)

Earlier today, in federal court in Brooklyn, defendant Olabanji Otufale, a former New York City Department of Homeless Services fraud investigator, was sentenced by United States District Judge Kiyo A. Matsumoto to 27 months in prison for conspiracy to commit wire fraud and aggravated identity theft.  Otufale and co-conspirator Marc Lazarre pleaded guilty in July 2024. 

John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI) announced the sentence.

“The defendant abused his position of trust as a fraud investigator to access and steal vulnerable homeless victims’ personal identifying information for his personal benefit,” stated United States Attorney John J. Durham.  “Otufale betrayed the public trust and conspired to use his access for illicit financial gain.  Today’s sentence should serve as a lesson to this defendant and all public employees that exploiting positions of power for personal financial gain will be punished.”

“Olabanji Otufale exploited his position within the Department of Homeless Services to steal the identities of homeless individuals and furtively reaped their allocated social services benefits. These abhorrent actions violate the trust and expected privacy placed in local agencies responsible for storing sensitive information. The FBI will never tolerate public service employees who prey upon our city’s vulnerable populations for fiscal profits,” stated FBI Assistant Director in Charge Dennehy.

DOI Commissioner Jocelyn E. Strauber said, “The defendant, a City fraud investigator with the Department of Homeless Services, had a duty to protect DHS and the vulnerable New Yorkers it serves from fraud.  Instead, he used his access and position to steal personal information of applicants for social services, in a scheme to illegally obtain unemployment benefits. The sentence imposed today makes clear that we and our law enforcement partners will hold accountable those who misuse their City positions for personal profit.  I thank the United States Attorney’s Office for the Eastern District of New York and the FBI for their continued partnership in the effort to protect critical public funds.”

In the fall of 2020, Otufale conspired with others to steal the personal identifying information of more than ten homeless individuals and use that stolen information to fraudulently apply for unemployment insurance benefits in the names of those homeless individuals without their knowledge or consent.

At the time of the scheme, Otufale was a fraud investigator with the New York City Department of Homeless Services (the Department).  In that role, Otufale was responsible for ensuring individuals who applied for homeless services—such as housing in homeless shelters—were qualified to receive services from the Department.

Otufale, however, used his access to a database maintained by the Department to commit fraud himself, stealing the personal identifying information—names, social security numbers, dates of birth—of vulnerable victims who had given that personal information to the Department when they applied for services.  Otufale then texted this victim information to a co-conspirator, Marc Lazarre, who applied online for unemployment benefits in the names of the homeless victims. Otufale and Lazarre conspired to split the fraudulent benefits they received.  Lazarre is scheduled to be sentenced on March 4, 2025.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Sara K. Winik, Laura Zuckerwise and Katherine P. Onyshko are in charge of the prosecution, with assistance from Paralegal Specialist Nadya Osman.

The Defendants:

Olabanji Otufale
Age: 41
Brooklyn, NY

Marc Lazarre
Age: 39
Secaucus, NJ

E.D.N.Y. Docket No. 24-CR-170 (KAM)

Earlier today, at the federal court in Brooklyn, an indictment was unsealed charging Dimitriy Nezhinskiy and Juan Villar with conspiracy to receive stolen property related to their purchasing of stolen goods that traveled across state lines. The defendants were arrested today, Nezhinskiy in New Jersey and Villar in Manhattan. They will be arraigned tomorrow before United States Magistrate Judge Lara K. Eshkenazi.

John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) announced the charges.

“As alleged, the defendants created an illicit market and fueled demand for burglaries by South American Theft Groups and other crews around the country by purchasing stolen watches, jewelry and other luxury items, and then re-selling them in their New York City store,” stated United States Attorney Durham.  “My Office will continue to pursue organized groups who engage, enable, or encourage the pillaging of residential homes and businesses that has a corrosive effect on the sense of security in our communities.”

“For almost five years, Dimitriy Nezhinskiy and Juan Villar allegedly served as unlawful brokers to perpetuate the sale of stolen luxury items by purchasing them from burglary crews. The defendants’ alleged actions incentivized highly organized South American Theft Groups to continue their meticulous looting scheme against a myriad of affluent residences and businesses across the country. With our law enforcement partners, the FBI will continue to dismantle any criminal activity curated to capitalize on victims’ losses and establish an economic demand for ill-obtained merchandise within our city,” stated FBI Assistant Director in Charge Dennehy.

“We will not tolerate crime of any kind in New York, whether it be street crime, retail theft, or these organized operations that target residential homes to steal and resell luxury goods,” said NYPD Commissioner Tisch.  “Today’s indictment is the result of our strong work with our law enforcement partners and our commitment to cracking down on these crime rings that threaten our communities.”

“We want to thank our partners in federal law enforcement for this collaborative effort to bring this criminal to justice,” stated NCPD Commissioner Ryder. “The men and women of the Nassau County Police Department, particularly the dedicated Detectives of the Major Case Squad, work tirelessly to investigate crimes and arrest those who prey upon our citizens.”

As alleged in the indictment, between approximately 2020 and 2025, the defendants conspired with each another and others to receive and purchase stolen property, including jewelry, watches, handbags and assorted luxury items that had been stolen outside of the state of New York and transported into New York.  As detailed in court filings, Nezhinskiy and Villar regularly served as “fences” for burglary crews based out of South America who traveled around the United States committing burglaries, typically targeting wealthier neighborhoods or jewelry vendors, and stealing luxury accessories. Nezhinskiy and Villar’s operation provided an essential market for the stolen goods, perpetuating the dangerous criminal activities of the burglary and theft crews composed largely of foreign nationals.

For example, evidence links Nezhinskiy and Villar to thefts around the country, including crimes committed by Bryan Leandro Herrera Maldonado, a prolific burglar who committed at least 16 residential burglaries across the United States between 2019 and 2020.  Additionally, phone records and video surveillance links Nezhinskiy to at least two members of a four-man burglary crew believed to be involved in the December 9, 2024 burglary of a high-profile athlete in Ohio, and showed Nezhinskiy in contact with that crew less than one week before the burglary in Ohio.

In addition, between October 2022 and January 2024, an undercover detective conducted seven controlled sales of purported stolen property, including high-end handbags and luxury accessories, to Nezhinskiy or Villar, or both, at their business location in Manhattan’s Diamond District.  During these controlled sales, the undercover detective provided the defendants with items that the undercover told the defendants had been stolen, and received cash in exchange for the stolen goods.

Today, law enforcement executed a search warrant at the location on 47th Street in Manhattan where Nezhinskiy and Villar operate a pawn shop and seized large quantities of suspected stolen property, including dozens of high-end watches and jewelry. Law enforcement also recovered large quantities of cash and marijuana.  Simultaneously, law enforcement executed a search warrant at storage units belonging to Nezhinskiy in New Jersey where an additional cache of suspected stolen property was found.  From inside Nezhinskiy’s storage units, law enforcement recovered large quantities of luxury goods and clothing, including high-end handbags, wine, sports memorabilia, jewelry, artwork and power tools consistent with those commonly used in burglaries and opening safes.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted of receipt of stolen goods, the defendants face up to 10 years in prison.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Office’s General Crimes Section.  Assistant United States  Attorneys Michael R. Maffei, Katherine P. Onyshko and Sean M. Sherman are in charge of the prosecution.

The Defendants:

DIMITRIY NEZHINSKIY
Age:  43
North Bergen, New Jersey

JUAN VILLAR
Age:  48
Queens, New York

E.D.N.Y. Docket No. 25-CR-40 (WFK)

Earlier today, in federal court in Brooklyn, disbarred attorney Hyun W. Lee, also known as “Michael Lee,” was sentenced by United States District Judge Pamela K. Chen to 54 months in prison for wire fraud in connection with a scheme to defraud his real estate clients and their counterparties of funds held in his attorney escrow account.  As part of the sentence, Lee was ordered to pay the government $3.27 million in forfeiture and restitution to the victims in the amount of $3.29 million.  Lee pleaded guilty to wire fraud in December 2023.

John J. Durham, United States Attorney for the Eastern District of New York, announced the sentence.

“The defendant was disbarred from the practice of law for reprehensible misconduct, but that severe penalty did not deter him from continuing to abuse the trust of clients, so it is my hope that he will get the message after serving a term of imprisonment for his crimes,” stated United States Attorney Durham.  “It is particularly egregious that Lee committed these crimes by holding himself out as a trusted lawyer to clients within the Korean-American community in Queens, where many immigrants have little experience with the legal system and place an enormous amount of trust in the hands of individuals like the defendant who profess to represent their interests in legal proceedings.”

Mr. Durham thanked the Queens County District Attorney’s Office for their assistance in this matter.

Lee was an attorney licensed by the State of New York admitted to practice in 2003.  He maintained an office in Flushing, Queens, where he represented buyers and sellers in connection with the purchase and sale of real property.  On March 11, 2020, Lee was disbarred as a result of charges brought by the Grievance Committee that he had engaged in a pattern and practice of misappropriating client and third-party funds.  As a result, Lee was not permitted to accept funds from clients and third parties.

Between February 2018 and May 2023, Lee induced clients and counterparties to entrust funds to him for the purchase of real estate based on misrepresentations that he would release the funds deposited into his escrow account.  Instead, Lee misappropriated these funds and used them for his own benefit, which included gambling at casinos and to pay expenses at a restaurant that he was a part-owner.  Lee misrepresented that he was an attorney authorized to represent clients in connection with the purchase and sale of real estate, and to receive and hold funds in his escrow account in connection with real estate transactions. 

In furtherance of the scheme, Lee misled clients about the status of funds held in his escrow account by fabricating documents leading them to believe their funds were secure.  While documentation Lee showed to clients reflected a balance in Lee’s escrow account of nearly $3 million, in reality Lee had depleted the escrow account down to only approximately $25,000.  Lee failed to honor requests by clients and their counterparties to release funds from his escrow account, falsely claiming that he was in the process of working out an equitable distribution of funds that remained. In reality, Lee had already spent virtually all of the funds in the account.

Victims who suffered losses as a result of the conduct of Lee, or other New York lawyers who engage in misconduct, may be eligible to receive compensation by filing a claim with the Lawyer’s Fund for Client Protection, which may be reached by calling (800) 442-3863 or e-mailing info@nylawfund.org

The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Hiral D. Mehta is in charge of the prosecution with assistance from Special Agent Martin Sullivan.

The Defendant:

HYUN W. LEE (also known as “Michael Lee”)
Age:  51  
Closter, New Jersey

E.D.N.Y. Docket No. 23-CR-465 (PKC)

An indictment was unsealed today in federal court in Brooklyn charging Andean Medjedovic with wire fraud, computer hacking and attempted extortion for stealing approximately $65 million in cryptocurrency from the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, which are sophisticated financial platforms residing on cryptocurrency blockchains.  Medjedovic is also charged with laundering the proceeds of the theft.  He is currently at large.

John J. Durham, United States Attorney for the Eastern District of New York; Antoinette Bacon, Supervisory Official of the Justice Department’s Criminal Division; Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the indictment.

“As alleged, the defendant executed a highly sophisticated scheme to exploit two decentralized finance protocols and steal tens of millions of dollars’ worth of cryptocurrency from investors,” stated United States Attorney Durham.  “My Office remains at the forefront in prosecuting cutting-edge cases involving new and emerging technologies, demonstrating our commitment to protecting all financial markets, including the digital assets markets.  Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.”   

Mr. Durham expressed his appreciation to the United States Securities and Exchange Commission’s Crypto Assets and Cyber Unit for their valuable assistance during the investigation. 

“This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” stated IRS-CI New York Special Agent in Charge Chavis.  “It’s alleged that Medjedovic executed a hack that stole nearly $65 million in crypto between two schemes, leaving liquidity pool investors in the red.  In investigating this case, IRS-CI New York’s Cyber group worked closely with its federal partners while leveraging resources from IRS-CI’s Cyber Attaché at Europol and the J5 Cyber Group. Even with the complexities of DeFi, we tracked down who is responsible for this large-scale theft, and he is now a wanted man.”

“Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They're stealing money that isn't theirs, and they're breaking the laws of this country. We allege Andean Medjedovic violated several of those laws, and he, along with all the other cyber criminals who believe they're untouchable, will face justice,” stated FBI Assistant Director in Charge Dennehy.

“These charges are a result of HSI New York’s determination to disrupt Andean Medjedovic’s alleged sophisticated far-reaching transnational cybercrime and seek justice for the millions of dollars syphoned from financial platforms,” stated HSI New York Special Agent in Charge Walker.  “Our global reach, experience and extensive knowledge of the cyber domain allow us to rapidly develop investigations into bad actors who seek to exploit the cryptocurrency market. Our federal partnerships across the globe made this investigation a success to include support from the HSI attaché offices in the Netherlands.”

KyberSwap and Indexed Finance were developers of automated market-making services called “liquidity pools” that allowed users to swap cryptocurrency tokens with each other.  The liquidity pools were managed by computer code called “smart contracts” and relied on investor contributions of cryptocurrency.  As alleged, Medjedovic used manipulative trading to exploit vulnerabilities in the KyberSwap and Indexed Finance smart contracts. These manipulative trades enabled Medjedovic to drain approximately $65 million in cryptocurrency that belonged to investors from the KyberSwap and Indexed Finance liquidity pools.

The KyberSwap Exploit

As alleged in the indictment, in 2023, Medjedovic planned and executed a scheme to exploit vulnerabilities in the KyberSwap protocol.  KyberSwap was a DeFi protocol and developer of liquidity pools on several public blockchains, including the Ethereum and Arbitrum networks. Liquidity pools use user-contributed cryptocurrency to facilitate trading and market-making in cryptocurrencies. The KyberSwap liquidity pools were managed by computer code or “smart contracts” called automated market makers or “AMMs,” which set prices in the KyberSwap liquidity pools.

In November 2023, Medjedovic exploited vulnerabilities in the KyberSwap computer code to drain the KyberSwap liquidity pools.  Medjedovic used hundreds of millions of dollars in borrowed cryptocurrency to create artificial prices in the KyberSwap liquidity pools.  Medjedovic then calculated precise combinations of trades that would cause the KyberSwap AMM to “glitch,” in his words, allowing him to steal tens of millions of dollars in cryptocurrency from the liquidity pools. In total, Medjedovic stole approximately $48.8 million in investors’ cryptocurrency from 77 KyberSwap liquidity pools on six public blockchains.

Following the exploit, Medjedovic attempted to extort the developers of the KyberSwap protocol, as well as KyberSwap’s investors and the members of the de-centralized autonomous organization or “DAO” that governed the KyberSwap protocol.  Medjedovic demanded control of the KyberSwap protocol and the KyberSwap DAO in exchange for which he would return approximately 50% of the cryptocurrency that he had stolen.

Medjedovic also attempted to launder the proceeds of his theft, including through “bridge” protocols used to transfer cryptocurrency from one blockchain to another, and through a cryptocurrency “mixer” used to conceal the source of digital assets. After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency.

The Indexed Finance Exploit

As alleged in the indictment, Medjedovic committed a similar exploit of the Indexed Finance DeFi protocol.  Indexed Finance liquidity pools are referred to as “index pools,” and function similarly to a mutual fund or exchange-traded fund in traditional finance.  Instead of holding a basket of traditional equities, the index pools held an index of digital tokens contributed by users.

In October 2021, Medjedovic used manipulative trading to exploit two Indexed Finance liquidity pools on the Ethereum network.  Medjedovic used hundreds of millions of dollars in borrowed cryptocurrencies to distort a process called “re-indexing,” which was used by the Indexed Finance smart contracts to add a new token to the liquidity pools.  Medjedovic used the borrowed cryptocurrency to engage in manipulative trading to cause the Indexed Finance smart contracts to set artificial prices during the re-indexing process.  He then stole approximately $16.5 million in investor cryptocurrency from the liquidity pools.

Beginning after the Indexed Finance exploit, in or around 2022, Medjedovic conspired with another person to launder the proceeds of his illegal conduct through cryptocurrency exchange accounts that were opened using false information, and by using a cryptocurrency mixer.  Among other things, Medjedovic maintained a step-by-step playbook for moving large amounts of cryptocurrency through the mixer, which he titled a “moneyMovementSystem.” In other documents, Medjedovic discussed circumventing “know your customer” or “KYC” procedures and using cryptocurrency exchange accounts opened with false KYC information for “hacks and cashing out.”

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

The government’s case is being handled by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections, with the Justice Department Criminal Division’s National Cryptocurrency Enforcement Team (NCET). Assistant U.S. Attorneys Nick M. Axelrod and Andrew D. Reich of the Eastern District of New York and NCET Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case with assistance from Paralegal Specialists Liam McNett and Madison Bates.  SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

Valuable assistance was provided by the Justice Department’s Office of International Affairs.  The Office thanks the Netherlands’ Public Prosecution Service and the Dutch National Police’s Cybercrime Unit in The Hague and United States Customs and Border Protection, New York Field Office.

The Defendant:

ANDEAN MEDJEDOVIC
Age: 22
Canada

E.D.N.Y. Docket No. 24-CR-529 (NGG)

Note: View the indictment here.

A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.

According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.

Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.

Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.

IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation.

Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

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, a federal jury in Brooklyn convicted Charles Powell, Brian Castro and Musah Coward on four counts of a superseding indictment charging them with the firearm-related murder of Rodney Maxwell, discharging a firearm during a crime of violence, Hobbs Act robbery conspiracy and Hobbs Act robbery. Powell was also convicted of being a felon in possession of ammunition.  The charges stem from an armed robbery carried out by the defendants inside an illegal gambling spot located at 181 Hegeman Avenue in the Brownsville section of Brooklyn.  The verdict followed a three-week trial before U.S. District Judge Eric R. Komitee. When sentenced, the defendants each face a sentence of up to life in prison, with a mandatory minimum sentence of 10 years in prison.

John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, 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 verdicts.

“Today’s verdict delivers justice for the victims of this vicious and senseless crime that was driven by greed and carried out with a complete disregard for human life,” stated United States Attorney Durham. “The defendants are responsible for murdering Rodney Maxwell, who was gunned down in cold blood, and the carnage could have been even worse with the wanton shooting of terrified bystanders. I commend the prosecutors in my Office, our law enforcement partners and the jury for holding the defendants accountable for this violent robbery.”

The evidence at trial proved that the defendants planned and carried out an armed robbery of an illegal gambling spot in Brownsville on October 7, 2020.  The defendants were driven to the Brooklyn location from New Jersey by Coward.  Powell and Castro entered the location while Coward waited outside in the car.  During the robbery, Powell and Castro each shot Maxwell, who had been providing security for location.  Castro shot Maxwell once in the back with a 9-millimeter pistol; and Powell shot him once in the chest with a .380 caliber pistol.  Maxwell later died from his gunshot wounds.  In addition, Powell indiscriminately fired into a crowd of individuals as they desperately attempted to escape the violence, hitting three men, all of whom ultimately survived their wounds. Castro later confessed to the robbery and murder to a friend who, unbeknownst to Castro, was a confidential source for the FBI and recorded the conversation.  In the recording, Castro described how the defendants made off with thousands of dollars and mocked the sound that Maxwell made when he was fatally shot.

Powell, who has a prior conviction in New Jersey for felony possession of a weapon, was found guilty by the jury of possessing three .380 caliber cartridges on October 7, 2020 corresponding to the shots he fired at the gambling spot.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Andy Palacio, Raffaela Belizaire and Megan Larkin are in charge of the prosecution, with the assistance of Paralegal Specialist Theodore Rader.

The Defendants:

CHARLES POWELL (also known as “Payback”)
Age:  26
Newark, New Jersey

BRIAN CASTRO (also known as “Morenaje”)
Age:  24
Paterson, New Jersey

MUSAH COWARD (also known as “General Mecka” and “Red” and “General Red”)
Age:  33 
Paterson, New Jersey

E.D.N.Y. Docket No. 21-CR-572 (EK)

Earlier today and throughout the past few weeks, in federal court in Brooklyn, five members and associates of the Luchese organized crime family of La Cosa Nostra pleaded guilty to multiple crimes, including racketeering, money laundering and illegal gambling related to criminal activities throughout New York City. The proceedings were held before United States District Judge Kiyo A. Matsumoto.  Today, Luchese crime family soldier Anthony Villani pleaded guilty to racketeering, money laundering and illegal gambling.  As part of Villani’s plea agreement, he will pay $4 million in forfeiture.  His co-defendants have agreed to pay an additional approximately $1 million in forfeiture.  Villani and his co-defendants operated a large-scale, illegal online gambling business (the Gambling Business) that operated under the protection of the Luchese crime family across the New York metropolitan area.  The gambling business, known as “Rhino Sports,” operated since the early 2000s and brought millions in illicit profits annually.   

John J. Durham, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.

“These guilty pleas represent a victory for the rule of law over the pernicious activities of organized crime that undermine the safety of our communities,” stated United States Attorney Durham.  “Illegal gambling businesses require enforcement and protection from mob rivals that carry the persistent threat of violence.  However, the defendants’ luck ran out and, thanks to the hard work of the team of prosecutors and investigators, they will be held accountable for their crimes and pay their debt to society.”

FBI Assistant Director in Charge Dennehy stated: “Our investigations involving members of the Five Families don't make the same headlines as they have historically. However, the men pleading guilty in this case illustrate how entrenched the traditional mafia are in their noxious and familiar criminality. They are less flashy these days - and a lot of that is due to the incredible cunning and tenacity agents and investigators on our FBI New York Westchester Organized Crime Task Force use to pursue members of these organizations.”

As detailed in the indictment and court filings, for over 25 years, Villani has been involved in significant gambling operations, principally based in the Bronx and Westchester, New York, that were affiliated with multiple organized crime families.  Villani owned and operated the Gambling Business since at least 2004.  The Gambling Business was hosted using servers in Costa Rica and employed local bookmakers to pay and collect winnings.  Villani’s bookmakers included members and associates of the Luchese crime family and other La Cosa Nostra families.  As part of the scheme, Villani employed trusted individuals, including defendants Louis Tucci, Jr. and Dennis Filizzola, to assist in operating the business and collecting at least $1 million annually.  Records obtained of the Gambling Business’s website indicated that Villani’s illegal gambling operation regularly took bets from between 400 and 1,300 bettors each week, most of whom were based in New York City and the metropolitan area. At Villani’s direction, Filizzola took proceeds from the Gambling Business and used them to purchase U.S. Postal Service money orders in false names, which were then made payable to one of Villani’s property companies to appear as legitimate rental payments.   

When sentenced, Villani faces up to 20 years in prison.  Louis Tucci, Jr., pleaded guilty on January 27, 2025 to illegal sports betting and faces up to five years in prison.  Filizzola pleaded guilty on January 21, 2025 to illegal sports betting and money laundering and faces up to five years in prison and up to 20 years in prison on those counts respectively.  James Coumoutsos pleaded guilty on January 21, 2025 to illegal sports betting and faces up to five years in prison.  Michael Praino pleaded guilty on January 10, 2025 to illegal sports gambling and faces up to five years in prison.  A sixth defendant remains at large.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Antoinette N. Rangel is in charge of the prosecution.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

The Defendants:

ANTHONY VILLANI
Age:  60
Elmsford, NY

JAMES COUMOUTSOS (also known as “Quick”)
Age:  62
Bronx, NY

DENNIS FILIZZOLA
Age:  61
Cortlandt Manor, NY

MICHAEL PRAINO (also known as “Platinum”)
Age:  47
Lake Worth, Florida

LOUIS TUCCI, JR. (also known as “Tooch”)
Age:  61
Tuckahoe, NY

E.D.N.Y. Docket No. 22-CR-405 (KAM)

Earlier today, a complaint was unsealed in federal court in Brooklyn charging former federal correctional officer Najee Jackson with attempting to smuggle contraband into the Metropolitan Detention Center in Brooklyn (MDC-Brooklyn).  Jackson was arrested this morning and is scheduled for an initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.

John J. Durham, United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General (DOJ-OIG), announced the arrest.

“As alleged, Najee Jackson violated his duty and abused his position of trust as a correctional officer by attempting to smuggle contraband into the very institution he was sworn to protect,” stated United States Attorney Durham.  “The smuggling of contraband into a jail endangers correctional officers and inmates.  Disrupting corruption in any form at MDC-Brooklyn will continue to be a priority of my Office, working in tandem with our federal law enforcement partners.”

“Jackson’s alleged attempt to smuggle contraband into the Brooklyn prison compromised the safety and security of the institution,” stated DOJ-OIG Geach,  “The Department of Justice Office of the Inspector General is committed to bringing to justice any Federal Bureau of Prisons employee who abuses their authority and attempts to smuggle illegal contraband into federal prisons.”

As alleged in the complaint, Jackson became a correctional officer at MDC-Brooklyn in November 2023.  On January 21, 2025, Jackson arrived at the jail around 12:15 a.m. to begin working a night shift.  Before entering MDC-Brooklyn, staff members are required to pass through a screening area consisting of a metal detector and a conveyor belt that passes through an x-ray machine.  Staff members entering the facility are also required to place their personal belongings on the conveyor belt to pass through the x-ray machine, and to walk through the metal detector.  Jackson placed various personal belongings into a bin on the conveyor belt, and then walked through the metal detector, triggering the alarm. After making several failed attempts to clear the metal detector, Jackson removed his Bureau of Prisons-issued protective vest, which was found to contain vacuum‑sealed bags of marijuana, cigarettes, two lighters and rolling papers.  Two days later, Jackson resigned from the Bureau of Prisons.

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

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

The Defendant:

NAJEE JACKSON
Age:  32
Brooklyn, New York

E.D.N.Y. Docket No. 25-MJ-18 (VMS)

Earlier today, an indictment was unsealed charging Ramel Warner with sexual exploitation of a child.  The defendant was arrested this morning and arraigned before Magistrate Judge Vera M. Scanlon. He was detained pending trial.

John J. Durham, United States Attorney for the Eastern District of New York, and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.

“As alleged, while babysitting a seven-year-old boy, the defendant horrifically abused him, filmed the acts and subsequently distributed it on the dark web,” stated United States Attorney Durham.  “Our Office will continue to work tirelessly with our law enforcement partners to bring to justice anyone who abuses children.”

Mr. Durham expressed his appreciation to the New York City Police Department for their assistance on the case.

“Ramel Warner is alleged to have used his access to a young child, while babysitting him at his own home, to film himself sexually assaulting the child. Warner's alleged actions are unconscionable, and we believe there may be more victims. We ask anyone with information regarding his actions to please come forward, so that we can further investigate and aid his victims.  The FBI is committed to ensuring the safety of children and holding their abusers accountable in the criminal justice system,” stated FBI Assistant Director in Charge Dennehy.

As set forth in court filings, in approximately 2022, the defendant raped the young son of a family friend in the child’s own home when he was supposed to be babysitting him.  The defendant recorded six videos of his sexual abuse of the child, one of which was over four minutes long.  The videos the defendant created depict him anally penetrating the child and performing oral sex on him.  Those videos were subsequently distributed on the dark web.

The government believes the defendant has worked at afterschool programs in Brooklyn public schools, including a dance group for minor children operating out of a Brooklyn middle school. Anyone with information about sexual exploitation by the defendant should contact the FBI at RWarnerCase@fbi.gov.

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, the defendant faces a minimum sentence of 15 years and a maximum sentence of 30 years.

The government’s case is being prosecuted by the Office’s General Crimes Section.  Assistant United States Attorney Vincent Chiappini is in charge of the prosecution.

The Defendant:

Ramel Warner
Age: 23
Brooklyn, New York

E.D.N.Y. Docket No. 25-CR-32

Earlier today, at the federal court in Central Islip, an indictment was unsealed charging Keith Williams, Janine Davis, Morais Dicks, James Hames, Jr., Jamari Lewis, Ewendra Mathurin, and Tiffany Williams with conspiracy to defraud the United States, wire fraud, and aiding and assisting the preparation of false tax returns.  Six defendants were arrested this morning in New York and will be arraigned this afternoon before United States District Judge Gary R. Brown. Jamari Lewis is not in custody and 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, Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI ), Brendan Donahue, Acting Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS) and William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI), announced the arrests and charges.

“As alleged, the defendants shamefully took advantage of a global health emergency to line their pockets with millions of dollars that were intended for struggling families and small businesses just trying to stay afloat and lavished themselves with luxury goods while shamefully boasting about their criminal activity,” stated United States Attorney Durham.  “My Office will continue to investigate and prosecute those who stole taxpayer dollars intended to assist Americans coping with the impacts of the COVID-19 pandemic.”

“Criminals have found ways to exploit every iteration of aid offered through the COVID-19 pandemic relief funds.  The ERC was created to help businesses keep themselves and their employees afloat. Yet, the defendants allegedly stole $44 million from the relief pool and chose to spend their illicit gains on jewelry, designer clothing, and luxury cars. IRS-CI worked this case with our law enforcement partners to make sure that the egregious acts of those arrested today do not go unpunished.  It’s time they face justice,” stated IRS-CI New York Special Agent in Charge Chavis.

“This program was created to aide struggling small businesses during the pandemic, instead these individuals exploited it to fraudulently take money from taxpayers for their financial gain. USPIS will continue to aggressively investigate individuals who defraud the government,” stated USPIS Acting Inspector in Charge Donahue.  “The outstanding work done by USPIS New York Division, HSI, IRS, DOJ Tax and the United States Attorney’s Office for the Eastern District of New York ensures individuals are brought to justice for their crimes.”

“As alleged in the indictment, an astonishing amount of taxpayer funds were illegally siphoned by a criminal organization from a needs-based government fund.  As a result of the close coordination on this investigation, those defendants ultimately found guilty for perpetrating this fraudulent scheme will pay for their greed,” said HSI New York Special Agent in Charge William S. Walker. “HSI continues to work side-by-side with our law enforcement partners to ensure justice is brought to fraudsters who shamelessly steal from our nation’s economic assistance programs.”

Congress created the Employee Retention Credit (ERC) and the Sick and Family Leave Credit (SFLC) to provide emergency financial assistance in connection with the economic effects of the COVID-19 pandemic.  The ERC was introduced in 2020 to incentivize businesses to continue paying employees by providing, at first, for a 50% credit on up to $10,000 in wages paid to each employee for the calendar year for businesses closed by government order or who had a 50% drop in gross receipts due to the pandemic. By 2021, the percentage credit increased to 70% per employee per quarter.  The SFLC provided a dollar-for-dollar tax credit to businesses that paid wages to employees on sick leave and a two-thirds credit on wages paid to employees on family leave due to COVID-19.  Through the PPP, Congress authorized over $600 billion in forgivable loans to small businesses for job retention and other expenses.

According to court documents, between November 2021 and June 2023, the defendants filed over 8,000 quarterly payroll tax returns claiming over $600 million in COVID-19 pandemic relief funds.  On behalf of themselves and their clients, the defendants submitted filings seeking payment under the ERC and the SFLC.  Several of the defendants also filed fraudulent Paycheck Protection Program (PPP) loan applications.

The scheme primarily operated out of Williams’s purported credit repair business, which was called “Credit Reset.”  To claim the ERC and SFLC funds, the defendants and their co-conspirators submitted tax returns to the IRS on behalf of shell businesses that, in the vast majority of cases, had no legitimate operations or employees.  In total, the defendants and their co-conspirators successfully secured over $44 million in government funds through this scheme, which they then spent on goods including jewelry, electronics, designer clothing, and luxury automobiles. The defendants flaunted their criminal activity openly.  For example, Lewis, an aspiring rapper who uses the stage-name, “Mr. Chaketah,” posted on social media a recording of song he wrote that was entitled, “I’m Really Sophisticated (IRS)” and the album cover for his song featured the logo of the Internal Revenue Service.  In a recorded call with a co-conspirator, Williams compared the fraud scheme to “taking candy from a baby.”  When investigators executed a search warrant at Williams’s home, they seized millions of dollars’ worth of luxury goods that appear to have been purchased using proceeds of the fraud scheme, including designer items from Rolex, Gucci, Louis Vuitton, Fendi, Balenciaga, and Versace, as well as high-end vehicles, including a Land Rover, a Polaris Slingshot, and a Tesla Model Y.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The defendants each face up to 20 years in prison if convicted of wire fraud, up to five years in prison for conspiracy and up to three years in prison on aiding and assisting in the preparation of false tax returns.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Department of Justice’s Tax Division.  Assistant United States  Attorneys Adam R. Toporovsky and James R. Simmons of the Eastern District of New York, along with Trial Attorney Richard J. Kelley are in charge of the prosecution, with the assistance of Paralegal Specialist Janelle Robinson. Trial Attorney Samuel B. Bean, formerly of the Tax Division, also assisted on the investigation.

The Defendants:

KEITH WILLIAMS
Age:  46
West Hempstead, New York

JANINE DAVIS (also known as “Holiday”)
Age:  41
Wheatley Heights, New York

MORAIS DICKS
Age:  55
Dix Hills, New York

JAMES HAMES, JR. (also known as “Poppa”)
Age:  65
Campbell Hall, New York

JAMARI LEWIS (also known as “Mr. Chaketah”)
Age:  26
Queens, New York

EWENDRA MATHURIN (also known as “Rayda”)
Age:  32
Queens Village, New York

TIFFANY WILLIAMS (also known as “Joy”)
Age:  41
Brooklyn, New York

E.D.N.Y. Docket No. 25-CR-20 (GRB)

Jacob Israel Walden was arraigned this afternoon at the federal courthouse in Central Islip on a six-count indictment charging him with sexual exploitation of children, receipt of child pornography, possession of child pornography and access with intent to view child pornography.  Walden was arrested on a complaint on July 31, 2024.  Today’s proceeding was held before United States District Judge Gary R. Brown who ordered the defendant detained pending trial.

John J. Durham, United States Attorney for the Eastern District of New York and Spiros Karabinas, Acting Special Agent in Charge, Homeland Security Investigations, New Jersey (HSI), announced the indictment. 

“As alleged, the defendant enticed minors to produce sexually explicit photographs and videos of themselves and send them to him via the internet in exchange for payment,” stated United States Attorney Durham. “Protecting children from predators who sexually exploit them will always be a priority of my Office.” 

“We are determined to dismantle the insidious network of online child sexual exploitation and abuse – no child’s innocence should be for sale,” stated HSI Newark Acting Special Agent in Charge Karabinas.  “Every day HSI Newark and our partners work tirelessly to protect children from exploitation by predators who produce, distribute and possess child sexual abuse material. The public can help us in that fight by notifying HSI immediately if they suspect someone is exploiting or abusing a child by calling our HSI tip line, 1-877-4-HSI-TIP.”

As set forth in court filings, law enforcement first identified Walden, a healthcare executive and Long Island resident, as a repeat purchaser of child sexual abuse material (CSAM) from a large-scale production and distribution ring that advertised, sold and distributed CSAM to adult male buyers.  Subsequent investigation determined that Walden also used social media and encrypted messaging services to engage in sexually explicit conversations with minors.  During these conversations, Walden enticed the minors to produce child pornography of themselves for payment.  In his chat conversations with these victims, Walden insisted that he be addressed as “daddy,” provided directions for what content the minors were to produce (e.g., “take off your top”) and paid the minors via electronic payment after he received the requested content. Walden was also a prolific purchaser of CSAM from online producers and distributors of child pornography.  Law enforcement agents recovered numerous images and videos of child pornography from the defendant’s iPhone.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Walden 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 Office’s Criminal Section of the Long Island Criminal Division.  Assistant U.S. Attorney Leonid Sandlar is in charge of the prosecution.

The Defendant:

JACOB ISRAEL WALDEN
Age: 38
Valley Stream, New York

E.D.N.Y. Docket No.: 24-CR-521 (GRB) 

John J. Durham, United States Attorney for the Eastern District of New York and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced today that Dubai-based Wall Street Exchange (WSE) entered into a non-prosecution agreement (the NPA) on January 19, 2025 with the United States Attorney’s Office for the Eastern District of New York (the Office) and the Department of Justice’s Money Laundering and Asset Recovery Section (MLARS), and has agreed to pay more than $9 million to resolve a bank fraud investigation into false statements that it made to a U.S. financial institution concerning the anti-money laundering compliance of WSE and its United Kingdom (U.K.)-based subsidiary, Wall Street Forex London Limited (Forex).

Under the terms of the NPA, WSE agreed to pay to the United States a criminal monetary fine of $3,920,000, and forfeiture in the amount of $5,326,648.  The NPA also requires WSE to continue to cooperate with and provide information to the United States for the term of the agreement.

“With this agreement, WSE admits that it is responsible under U.S. law for the past acts of its former officers, directors, employees and agents which constitute a violation of law, specifically bank fraud, and has implemented a program to detect and prevent money laundering violations,” stated United States Attorney Durham.  “My Office is committed to holding foreign actors accountable for abusing our financial system and ensures that we protect the integrity of U.S. banks.”   

Mr. Durham expressed his appreciation to the Drug Enforcement Administration, New York Division, for their work on the case.

“WSE’s failure to inform the US bank of an open investigation in the UK left the bank vulnerable to regulatory scrutiny. Anti-money laundering compliance is not only necessary to protect the sovereignty of our financial institutions but also that of our nation.  IRS-CI worked closely with our federal partners to ensure that there is accountability in this case, and now WSE will pay the US government more than $9 million in fines and forfeiture,” stated IRS-CI New York Special Agent in Charge Chavis.

WSE and its Subsidiary, Forex

WSE is a money exchange service provider headquartered in Dubai, United Arab Emirates (UAE).  Forex was incorporated in the United Kingdom in 1992 and was a wholly owned subsidiary of WSE.  Prior to 2018, three of WSE’s most senior executives (collectively, WSE Executives) were also directly involved in directing and managing Forex.  Two of the WSE Executives – Officer 1 and Officer 2— simultaneously served as executives of WSE and directors of Forex. 

Between 2009 and 2018, WSE had a U.S. dollar correspondent bank account in New York with Bank A, which allowed WSE to execute transactions in U.S. dollars, access the U.S. financial system, and remit funds globally.  Between 2012 and 2017, Forex had a similar trading account with Bank A in London. 

Prior to 2016, Forex’s business included facilitating international dollar-denominated wires for money service businesses (MSBs) that could not wire funds internationally on their own. Forex was required to register with U.K. financial authorities, including His Majesty’s Revenue and Customs (HMRC) and the U.K. Financial Conduct Authority (FCA).  Forex was also required to comply with U.K. money laundering regulations, including having to establish internal controls to prevent its clients from laundering money through its business. 

Through its external compliance consultant and its own employees and directors, Forex was aware that its money services business clients were using Forex’s operations to engage in suspicious money laundering activities.  For example, Forex’s external consultant alerted Forex that several of its clients were providing demonstrably false information to Forex.  At least one Forex employee also raised concerns about the inadequacy of Forex’s internal controls and by extension, Forex’s potential facilitation of money laundering.  These concerns were raised and elevated to one or more of the WSE Executives.        

In 2016, HMRC revoked the “fit and proper” status of all of Forex’s directors, including the “fit and proper” status of Officer 1 and Officer 2.  In withdrawing the directors’ “fit and proper” status, HMRC concluded that Forex repeatedly engaged in non-compliant financial activities and persistently failed to comply with key aspects of the requisite money laundering regulations and that among other deficiencies, Forex and its directors failed to establish and maintain appropriate internal controls to detect money laundering activities. HMRC also canceled Forex’s registration and notified Forex that it could not continue to do business in the U.K. After HMRC’s revocation, Forex subsequently ceased its U.K. operations in 2016.

Bank Fraud 

Despite the above-described regulatory action against Forex, Forex and WSE never disclosed to Bank A negative findings regarding Forex’s money laundering controls and compliance, the regulatory action by HMRC, and the reason that Forex ceased operations in the U.K.  Instead, Forex and WSE reported in multiple communications between 2015 and 2018, including in WSE’s and Forex’s audited financial statements for 2015, that Forex’s agents were the subjects of both an internal investigation and an investigation by U.K. authorities, while omitting that Forex itself was also a subject of both investigations.  For example, when Bank A was conducting its due diligence review on WSE in 2015 and 2016, and asked WSE whether WSE had identified “any issues” in “internal/external audits,” each time, WSE responded, “No.”  Moreover, in 2016, when Bank A asked whether WSE had any “regulatory action regarding any AML [anti-money laundering] issues” that year, WSE also reported “No,” –even though weeks prior, HMRC had revoked the “fit and proper” status of Forex’s directors, including officers of WSE, for AML issues and had notified Forex it could no longer operate as an MSB in the U.K. WSE repeated this misrepresentation to Bank A in 2017.  Between 2016 and 2018, WSE also misrepresented to Bank A that Forex was voluntarily withdrawing from the U.K. and surrendering its license, characterizing the move as a “business decision” rather than the result of the HMRC regulatory action.         

WSE, through its former officers and directors, failed between 2015 and 2018 to disclose information regarding Forex and made material misrepresentations to Bank A.  WSE was able to maintain its banking relationships with Bank A until September 2018, when Bank A terminated its banking relationships with WSE globally.                     

The Non-Prosecution Agreement

The Justice Department reached this resolution with WSE based on a number of factors, including, among others: (i) the nature and seriousness of the offense, including that the events relevant to this matter largely related to a WSE affiliate no longer in operation and occurred under former WSE management and that WSE has had no bank accounts in the United States since 2018; (ii) WSE’s remedial measures to enhance its compliance program; and (iii) WSE’s lack of a criminal history in the United States.  In addition, WSE received credit for cooperating with the department including by providing documents and information not otherwise available to the department.   

The government’s case is being handled by the Office’s Business and Securities Fraud Section and MLARS, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act.  Assistant U.S. Attorney Hiral D. Mehta, former Assistant U.S. Attorneys Genny Ngai and Brian Morris of the Eastern District of New York, and Trial Attorneys Elizabeth Carr and Michael P. Grady of MLARS' Bank Integrity Unit, are in charge of the prosecution, with the assistance of MLARS Paralegal Specialist Nicholas Aholt.  The Justice Department’s Office of International Affairs provided substantial assistance.

The Defendant:

Wall Street Exchange
Dubai, United Arab Emirates

John J. Durham has begun serving as Interim United States Attorney for the Eastern District of New York as per the authority of Acting United States Attorney General James R. McHenry III.  Mr. Durham was sworn in on Tuesday, January 21, 2025 by United States District Judge Joanna Seybert.  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.  Mr. Durham has served as Chief of the Long Island Division and Chief of the Criminal Section of the Long Island Division since June 2024 to the present.

“As someone who has served this Office for nearly 20 years, it is truly an honor to be appointed as Interim United States Attorney for the Eastern District of New York,” stated John J. Durham. “Our mission remains steadfast and vital: to combat the greatest threats to this district – from violent crime, terrorism and drug trafficking to cybercrime, corruption, white-collar fraud and civil litigation – uphold the rule of law and pursue justice.  I, along with my team of dedicated public servants in this great Office will never waver in our mission to protect the over eight million residents of this district, and the nation at large.”

Mr. Durham joined the Office in October 2005 and has served in the General Crimes and Long Island Criminal Sections. He has been appointed to several leadership positions in the Office and the Department of Justice, including Deputy Chief for the Long Island Criminal Section, the Office’s Capital Case Coordinator, the Attorney General’s Review Committee on Capital Cases and Chair of the MS-13 Subcommittee of the Attorney General’s Transnational Organized Crime Task Force. In August 2019, Mr. Durham was appointed to serve as the Director of Joint Task Force Vulcan (JTFV), a Department of Justice initiative to combat La Mara Salvatrucha (MS-13), where he spearheaded indictments against MS-13’s highest-ranking international leaders.

During his time in the Office, Mr. Durham has investigated, prosecuted, and supervised a broad range of federal offenses, including racketeering, murders, terrorism, civil rights, obstruction of justice, armed robberies, narcotics trafficking, money laundering, firearms and public corruption. Most significantly, he has directed the Office’s efforts to dismantle the operations of MS-13 in the EDNY, as well as nationally and internationally. In a series of EDNY indictments, he has led teams of AUSAs and investigators that have arrested and convicted hundreds of MS-13 leaders, members and associates on charges related to more than 70 murders committed in this district between January 2008 and the present.

As the Director of JTFV, Mr. Durham led a team of prosecutors and law enforcement officers from across the country and secured significant indictments against MS-13’s command and control structure across the United States, Central America and Mexico, including the first use of national security charges against MS-13 leaders. In addition to his work combatting MS-13, Mr. Durham has prosecuted defendants who attempted to travel to Yemen for the purpose of joining al-Qaeda in the Arabian Peninsula and fighting jihad against United States allies, and members of numerous other violent criminal organizations, including the Bloods, 18th Street gang, Crips, Salvadorans With Pride and violent narcotics trafficking and robbery crews. In addition to his violent crime work, Mr. Durham has prosecuted several significant and sensitive public corruption and civil rights matters, including cases brought against the former Chief of Department for the Suffolk County Police Department, the former Suffolk County District Attorney and former Chief of Investigations and Chief of the Government Corruption Bureau for the Suffolk County District Attorney’s Office, a then-sitting Nassau County Legislator, a New York City Police Department sergeant and a Food and Drug Administration official.

Among other awards, John is the recipient of the Charles E. Rose Award; Henry L. Stimson Medal; EOUSA Director’s Award for Superior Performance; National Association of Former United States Attorneys Exceptional Service Award; and several Federal Law Enforcement Foundation Awards.

John graduated from the College of the Holy Cross in 1998 and from the University of Connecticut School of Law in 2001. He clerked for U.S. District Judge Stephen C. Robinson in the Southern District of New York.

Earlier today and on January 16, 2025, in federal court in Central Islip, three members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, pleaded guilty to multiple crimes, including nine murders committed on Long Island and elsewhere between 2016 and 2017.  David Sosa-Guevara, also known as “Risky,” the New York regional leader of the Hollywood Locos Salvatruchas (Hollywood) clique of MS-13, and Victor Lopez-Morales, also known as “Persa,” a high-ranking member of the Hollywood clique, pleaded guilty on January 16, 2025.  Kevin Torres, also known as “Inquieto” and “Quieto,” the New York regional leader of the Sailors Locos Salvatruchas Westside (Sailors) clique of MS-13, pleaded guilty on January 17, 2025.  

Collectively, the three defendants pleaded guilty to racketeering charges in connection with their respective roles in nine MS-13 driven murders: (1) the April 26, 2016 murder of Samuel Martinez-Sandoval in Freeport; (2) the April 29, 2016 murder of Oscar Acosta in Brentwood; (3) the May 21, 2016 murder of Kerin Pineda in Freeport; (4) the September 4, 2016 murder of Josue Amaya-Leonor in Roosevelt; (5) the September 5, 2016 murder of Marcus Bohannon in Central Islip; (6) the October 10, 2016 murder of Javier Castillo in Freeport; (7) the October 14, 2016 murder of Carlos Ventura-Zelaya in Roosevelt; (8) the July 21, 2017 murder of Angel Soler in Roosevelt; and (9) the August 29, 2017 murder of David Rivera in Maryland, as well as narcotics trafficking. Additionally, Sosa-Guevara and Lopez-Morales pleaded guilty to participating in an August 2017 conspiracy to kidnap an individual identified in the superseding indictment as “John Doe #3.”

The three guilty plea proceedings were held before United States Magistrate Judge Lee G. Dunst.  When sentenced by United States District Judge Joan M. Azrack, pursuant to the terms of their plea agreements, Sosa-Guevara and Torres each face up to 65 years in prison, and a minimum sentence of 40 years in prison.  Victor Lopez-Morales faces up to 60 years in prison and minimum sentence of 40 years. 

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) and Anne T. Donnelly, Nassau County District Attorney, announced the guilty pleas.

“The defendants have admitted to their participation in numerous murders savagely committed with machetes and guns, all on behalf of the MS-13 and to increase their status in that depraved criminal organization,” stated Acting United States Attorney Pokorny.  “As a result of the guilty pleas, the defendants will be severely punished by serving decades in prison and provide some measure of relief and closure to the families of the many victims.” 

FBI Assistant Director in Charge Dennehy stated: “MS-13 callously used murder in an attempt to exert control over territory for their ruthless gang operations.   As demonstrated by the guilty pleas of these three, high-ranking MS-13 members for their roles in nine murders, this type of extreme and senseless violence will not go unpunished. The FBI’s Long Island Gang Task Force, along with our law enforcement partners, will continue to bring to justice members of MS-13 or any other violent gang using violence and murder to terrorize our communities.”

"These defendants used their rank in the gang to help orchestrate multiple brutal murders and other crimes,” stated SCPD Acting Commissioner Waring.  “We in law enforcement will never stop working to fight the pervasive violence sowed throughout these gangs.”

“The charges brought forth is a clear example of the results when Law Enforcement Personnel from Federal and Local Agencies combine their efforts and resources,” stated NCPD Commissioner Ryder.  “Their relentless and continued investigations resulted with the charging of these criminals who were responsible for committing these murders. This combined investigation demonstrates the diligence of the well trained and determined investigators.  The Nassau County Police Department remains committed in working with our law enforcement partners halting any gang activity on our streets and keeping our residents safe.  I would like to thank all of the assisting agencies and their investigators on a job well done.”

“These defendants carried out vicious and senseless violence to instill fear and assert their dominance. Today’s guilty pleas bring us one step closer to ridding this dangerous gang activity from Nassau County communities,” stated Nassau County District Attorney Donnelly.  “Together with our partners, we remain committed to protecting Long Island from this criminal organization’s brutality and ensuring individuals involved in these devastating acts are held accountable for their crimes.”  

According to court filings and statements made during the guilty plea proceedings, Torres was the New York regional leader of the Sailors clique, Sosa-Guevara was the New York regional leader of the Hollywood clique, and Lopez-Morales was a high-ranking member of the Hollywood clique.  The defendants admitted to committing the crimes set forth below in order to maintain and increase their membership and status within the gang, and to further the mission of the MS-13.

April 26, 2016 Murder of Samuel Martinez-Sandoval

The defendants pleaded guilty to the murder of 20-year-old Martinez-Sandoval, which was carried out in April 2016, by the defendants and other members from the Sailors, Hollywood and Normandie Locos Salvatruchas cliques, who planned a joint operation to lure and kill Martinez-Sandoval because they believed that he was a member of the rival Sureños gang.   

On April 26, 2016, MS-13 members convinced Martinez-Sandoval to drive with them to a secluded, wooded area near Freeport Lake in Roosevelt, under the guise of smoking marijuana.  Separately, more than a half dozen MS-13 members, including the defendants, armed with machetes and other weapons, had gathered at a designated location along Freeport Lake where it was agreed that the other gang members would bring the victim.  When Martinez-Sandoval arrived, Sosa-Guevara, Torres, Lopez-Morales and the other MS-13 members surrounded and attacked the victim, each taking turns hacking him with a machete and other weapons.  After the victim was killed, the MS-13 members dug a shallow grave and buried the victim.  However, because the initial hole was not deep enough to conceal Martinez-Sandoval’s body, a group of MS-13 members went back the following day, reburied the victim and covered his body with cement and dirt.  Martinez-Sandoval’s body was not found until September 2024.

April 29, 2016 Murder of Oscar Acosta

Torres pleaded guilty to the murder of 19-year-old Acosta.  In early 2016, Torres, as leader, ordered a “greenlight” authorizing other gang members to murder Acosta because the gang suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  Torres assigned roles as to which members would take the lead in planning and carrying out the murder. 

 On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members who arrived in two cars.  The MS-13 members loaded Acosta into the trunk of one of the cars and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  The MS-13 members then removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by the local leaders of the Sailors clique who reported back to Torres once completed.  After killing Acosta, the MS-13 members buried his body in a shallow grave.

Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

May 21, 2016 Murder of Kerin Pineda

The defendants also pleaded guilty to the murder of 20-year-old Pineda, who, like Acosta, was killed because of his suspected membership in the 18th Street gang. Torres, again, ordered the “greenlight” for Pineda, marking him for death.  In response, MS-13 members from the Sailors and Hollywood cliques, including Sosa-Guevara and Lopez-Morales, devised a plan to kill Pineda.

On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border.  Torres, Lopez-Morales, and Sosa-Guevara acted as lookouts for police and coordinated the attack, staying in contact with the MS-13 members in the woods while they waited for Pineda.  When Pineda arrived, he was surrounded and violently attacked by the group of MS-13 members, each of whom took turns hacking and slashing him with the machetes. Pineda’s body was then buried in a hole that had been dug in the ground the day before, in anticipation of the murder. Before leaving the scene, the MS-13 members contacted the lookouts – Torres, Lopez-Morales, and Sosa-Guevara – who advised them that they could safely come out of the woods and drove them away from the scene.

September 4, 2016 Murder of Josue Amaya-Leonor

Sosa-Guevara and Lopez-Morales pleaded guilty for their roles in the murder of 19 year-old Amaya-Leonor on September 4, 2016.  Like the other victims, Amaya-Leonor was lured to a secluded wooded area and killed because of his perceived association with the 18th Street gang.  On the evening of the murder, MS-13 members convinced Amaya-Leonor to venture deep into the Roosevelt Preserve, in Roosevelt, to smoke marijuana.  Sosa-Guevara was in communication with the gang members by cell phone and was directing them on where to bring the victim.  Once there, Amaya-Leonor was surrounded by the MS-13 members who were armed with machetes; he was struck repeatedly, and killed.  Thereafter, Lopez-Morales, who was in the immediate area of the murder looking out for police, arrived on the scene and supervised the other MS-13 members as they dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018 – over a year and a half after the murder had occurred.

September 5, 2016 Murder of Marcus Bohannon

Torres pleaded guilty to authorizing the murder of 27-year-old Marcus Bohannon.  On September 4, 2016, members of the Sailors clique met at the house of local clique leaders Alexi Saenz and Jairo Saenz, in Central Islip, where Torres directed the gang members to go out hunting for rival gang members to kill.  The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until one of the cars spotted Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting. Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

October 10, 2016 Murder of Javier Castillo

Torres also pleaded guilty to the murder of 15-year-old Javier Castillo.  In October 2016, the MS-13 targeted Castillo because he was believed to be a member of the 18th Street gang.  On October 10, 2016, members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana.  Torres authorized the members of the clique operating in Brentwood to bring Castillo to his territory in Freeport to be killed.  The MS-13 members took Castillo to an isolated marsh area along the water in Cow Meadow Park, in Freeport, where they attacked and killed him, taking turns hacking him with a machete.  Torres also served as the lookout for police in the area during the murder. Thereafter, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017.

October 14, 2016 Murder of Carlos Ventura-Zelaya

Sosa-Guevara and Lopez-Morales pleaded guilty to the murder of 24-year-old Ventura-Zelaya, who had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang.  On the day of the murder, Ventura-Zelaya was observed at a deli in Roosevelt by a member of the Hollywood clique. Sosa-Guevara mobilized other members of the clique to kill Ventura-Zelaya and conducted surveillance of the victim until the other gang members arrived.  The gang members tasked with carrying out the murder first drove to pick up a gun from Lopez-Morales.  After obtaining the weapon, the group drove in the direction of the deli to look for and kill the victim.  Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, two MS-13 members got out of the car, approached him and one

of them fired multiple times, striking and killing the victim.  They then ran back to the car and drove away from the scene.  

July 21, 2017 Murder of Angel Soler

Sosa-Guevara and Lopez-Morales also pleaded guilty to the murder of 15-year-old Soler. The MS-13 suspected Soler was an 18th Street gang member, and Sosa-Guevara ordered his murder. Lopez-Morales and other MS-13 members carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana.  The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave.  The following day, MS-13 members went back to lay cement over Soler’s body, in order to better conceal it.  Soler’s remains were recovered in October 2017.

August 2017 Conspiracy to Kidnap John Doe #3

Lopez-Morales and Sosa-Guevara also admitted that, just weeks after the Soler murder, they and other MS-13 members planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara assigned Lopez-Morales and two other MS-13 members to carry out the kidnapping and attack. Lopez-Morales was instructed that, once they had John Doe #3, to wait for further guidance from MS-13 leadership as to whether to kill or brutally assault him.  On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, pursuant to court-ordered wiretaps of certain MS-13 members’ cell phones, and Lopez-Morales was taken into custody.

August 29, 2017 Murder of David Rivera

Sosa-Guevara also admitted to his participation in the murder of 16-year-old Rivera in Maryland.  To avoid law enforcement in New York, Sosa-Guevara and another Hollywood member from Long Island relocated to Maryland where they connected with the local Hollywood clique.  After arriving, Sosa-Guevara learned of a plan to kill a rival gang member and directed the other Long Island member of his clique to participate.  On August 29, 2017, Sosa-Guevara drove the other gang member to a park outside of Edgewater, Maryland, for him to participate in the Rivera murder.  The victim was brought to that location by other MS-13 members, attacked with machetes and killed.  After the murder, Sosa-Guevara drove the member of his clique away from the scene. Rivera’s body was not found until June 7, 2024.

Narcotics Trafficking Conspiracies

Finally, Torres pleaded guilty to conspiring with the members of the Sailors clique to distribute cocaine and marijuana, and Sosa-Guevara and Lopez-Morales pleaded guilty to conspiring with members of the Hollywood clique to distribute marijuana. These charges stemmed from the MS-13 cliques’ street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.

                                                              *          *          *          *

These guilty pleas are the latest achievements in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 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, NCPD, 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 prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using 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 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 assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office and Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

The Defendants:

VICTOR LOPEZ-MORALES (also known as “Persa”)
Age:  36
Roosevelt, New York

DAVID SOSA-GUEVARA (also known as “Risky”)
Age:  33
Roosevelt, New York

KEVIN TORRES (also known as “Quieto” and “Inquieto”)
Age:  29
Freeport, New York

E.D.N.Y. Docket No. 20-CR-251 (S-1)(JMA)

The former Finance Minister of Mozambique was sentenced today to 102 months in prison for his role in a $2 billion international fraud, bribery, and money laundering scheme, in which he received $7 million in bribes to approve fraudulent loans.

According to court documents and evidence presented at trial, Manuel Chang, 69, of Mozambique, received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. As part of the scheme, Chang and his co-conspirators falsely told banks and investors that the loan proceeds would be used for the projects and not to pay bribes to government officials. In fact, however, Chang and his co-conspirators diverted more than $200 million of the loan proceeds that were used, among other things, to pay bribes and kickbacks to Chang and others.

“Manuel Chang abused his position as Finance Minister of Mozambique by obtaining $7 million in bribe payments in exchange for helping secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”

“Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “My office will continue to pursue those who violate our laws and harm U.S. investors regardless of their power, position or title.”

“Manuel Chang abused his authority as the former Mozambique Finance Minister by helping to obtain billions of dollars in loans, a large portion of which was diverted from its intended purposes to satisfy bribe payments, ultimately causing significant financial loss to U.S. and global investors,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “With the support of his co-conspirators, Chang violated the trust of his office and wielded his position to enrich himself and other Mozambican officials. May today’s sentencing reiterate the FBI’s commitment to dismantling all corruptive malpractices orchestrated by foreign governments, especially those targeting our country as their personal piggy-bank.”

Between approximately 2013 and 2015, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators — including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company — ensured that Credit Suisse AG, through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.

Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks. These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used. Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.

On Aug. 8, 2024, Chang was convicted at trial of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. In addition to the term of imprisonment, Chang was ordered to forfeit $7 million. A restitution amount will be determined at a later date.

In October 2021, Credit Suisse AG and CSSEL (together, Credit Suisse) admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and the U.S. Attorney’s Office for the Eastern District of New York. As a part of the resolution, Credit Suisse paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

The FBI New York Field Office investigated the case.

Fraud Section Trial Attorney Peter Cooch, MLARS Trial Attorney Morgan Cohen, and Assistant U.S. Attorneys Hiral D. Mehta and Jonathan Siegel for the Eastern District of New York prosecuted the case.

The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain, and Portugal.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Manuel Chang, the former Finance Minister of Mozambique, was sentenced by United States District Judge Nicholas G. Garaufis to a term of imprisonment of 102 months and ordered to pay $7 million in forfeiture.  The restitution amount will be determined at a later date.   Chang was convicted after a four-week trial in July and August 2024 of conspiring to commit wire fraud and money laundering in connection with his role in a $2 billion international fraud, bribery and money laundering scheme that victimized investors in the United States and elsewhere.  He was arrested in December 2018 in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States and extradited to the Eastern District of New York in July 2023.

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, Brent S. Wible, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” stated Acting United States Attorney Pokorny.  “My Office will continue to pursue those who violate our laws and harm U.S. investors regardless of their power, position or title.”  

“Manuel Chang abused his position as Finance Minister of Mozambique by obtaining $7 million in bribe payments in exchange for helping secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”

“Manuel Chang abused his authority as the former Mozambique Finance Minister by helping to obtain billions of dollars in loans, a large portion of which was diverted from its intended purposes to satisfy bribe payments, ultimately causing significant financial loss to U.S. and global investors,” stated FBI Assistant Director in Charge Dennehy.  “With the support of his co-conspirators, Chang violated the trust of his office and wielded his position to enrich himself and other Mozambican officials. May today’s sentencing reiterate the FBI’s commitment to dismantling all corruptive malpractices orchestrated by foreign governments, especially those targeting our country as their personal piggy bank.”

As proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects.  As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials. In fact, however, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.

Between approximately 2013 and 2016, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government:  Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM).  The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.

Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks.  These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans.  The loans were subsequently sold in whole or in part to investors worldwide, including in the United States.  In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used.  Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.

In October 2021, Credit Suisse AG and CSSEL admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section (Fraud Section) and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).  As a part of the resolution, Credit Suisse AG and CSSEL paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

The Office’s Business & Securities Fraud Section is handling the case.  Assistant United States Attorneys Hiral D. Mehta, Genny Ngai and Jonathan Siegel, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS, are in charge of the prosecution, with assistance from Paralegal Specialist Timothy Migliaro.  The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain and Portugal.

The Defendant:

MANUEL CHANG
Age: 69
Mozambique

E.D.N.Y. Docket No. 18-CR-681 (NGG)

Judy Philips, Acting Attorney for the United States for the Eastern District of New York and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced today that American Express Company (AMEX) has entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Eastern District of New York (the Office), and has agreed to pay more than $138 million for engaging in sales practices that provided inaccurate tax advice to customers and potential customers of AMEX for two wire products, Payroll Rewards and Premium Wire (PR/PW).

Under the terms of the NPA, AMEX agreed to pay a criminal fine of $77,696,000 and forfeit a total of $60,700,000.  The NPA requires AMEX to continue to cooperate with and provide information to the Office for at least the 36-month term of the agreement.  In the event that AMEX violates the NPA, the Office may prosecute AMEX for any of the conduct that gave rise to the NPA and any newly discovered criminal activity.

Separately, AMEX has entered a civil settlement with the Department of Justice’s Civil Division Fraud Section (Civil Frauds) related to the tax-avoidance scheme, for which AMEX has agreed to pay a $60,700,000 civil penalty.  The Office and Civil Frauds have each agreed to credit approximately $30,350,000 of the forfeiture amount and civil fine to their respective resolutions.  

“Financial institutions like American Express have no business pitching inaccurate tax avoidance schemes to sell products and turn a quick profit,” stated Acting Attorney for the United States Philips. “This resolution ensures that American Express will be held financially accountable for the unacceptable conduct of its sales employees in misrepresenting the tax benefits of these products.”   

Ms. Philips expressed her appreciation to Civil Frauds and the Federal Reserve Board of Governors for their work on the case.

“American Express misled their customers by touting tax breaks that simply didn’t exist.  This deceitful marketing campaign that involved hundreds of employees defrauding their customers and the government, resulted in AMEX paying more than $138 million to cover their deceit.  Regardless of a company’s size, every business is required to comply with the laws of this nation, including all tax laws,” stated IRS-CI New York Special Agent in Charge Chavis.

The Improper Sales and Marketing of PR/PW

In approximately April 2018, AMEX launched “Payroll Rewards,” a wire product that allowed business customers to pay their payroll via a direct payment from an AMEX account.  AMEX charged a percentage-based fee—ranging from 1.77% to 3.5%—based on the size of the wire, even though, at the time, competitors offered wiring services for nominal fees of $0 to $50, irrespective of the size of the wire.  In exchange for AMEX’s fee, customers earned one Membership Reward (MR) point for each $1 of the wire, which could be deposited into any personal or business account at AMEX. In May 2019, Payroll Rewards was expanded to include Premium Wire, thereby allowing customers to use the products for wire payments beyond payroll.  Whereas Payroll Rewards underwent a compliance and legal review process at AMEX,  Premium Wire was determined to be a spin-off product, and only underwent a limited review process.

PR/PW were sold within the AMEX divisions Global Commercial Services, which offered corporate credit cards and financial services, and FX International Payments, which offered foreign and domestic wire transfer services.  AMEX’s official marketing material for PR/PW listed benefits of the products as being, chiefly, the ability to earn MR and utilize AMEX’s “white glove service” in connection with customer wiring needs. The official marketing materials also contained the disclaimer: “The value of the [MR] may be taxable income to the Card Member and the Card Member is responsible for any federal or state taxes resulting from the [MR].”

In practice, however, the products were marketed as a means to generate tax savings. The products were primarily marketed to small and mid-size businesses that valued a reduced tax burden over increased profitability.  Customers were advised: first, that the fees were tax-deductible as a business expense, and thereby had the effect of lowering their overall profit and taxable income; second, that they otherwise would have paid taxes on the fees, so the true cost of the fees had to be evaluated in the context of their effective tax rate; and, third, that the MR received in exchange for the transaction was earned tax-free (the Pitch).  As a result, the value of the MR outweighed the true cost of the fees adjusted to account for the tax savings they generated.

The Pitch relied on incorrect tax advice, namely, that the wiring fee was deductible in its entirety as a business expense.  Business expenses must be “ordinary” and “necessary.”  Incurring a wiring fee—far in excess of that offered by competitors in the marketplace—for the purpose of generating a personal benefit is not an “ordinary” and “necessary” business expense.  AMEX did not consult with tax professionals to verify the tax advice being offered.

In early 2021, as concerns grew regarding the way PR/PW was marketed, an internal investigation commenced, which ultimately resulted in the termination of approximately 200 employees.  In the summer of 2021, AMEX stopped enrolling new customers in the products.  In September 2021, a cap was instituted of $280,000 per wire sent.  In November 2021, the products were discontinued entirely.

The Non-Prosecution Agreement

AMEX has agreed to pay a fine of $77,696,000 and forfeit $60,700,000, which represents the net revenue that could reasonably be attributed to the sale of PR/PW.

The Office reached this resolution with AMEX after carefully weighing all the factors relevant to the appropriate corporate resolution, including the nature and seriousness of the offense.  The NPA recognizes that AMEX voluntarily took substantial remedial measures beginning in 2021 to mitigate and correct the sales and marketing practices described above and improving compliance measures, including terminating employees involved in the misconduct, discontinuing PR/PW, and making significant improvements to AMEX’s product approval and internal audit processes. AMEX also has no prior criminal history in the past 18 years.  Furthermore, AMEX has cooperated with the Office in its investigation and has agreed to continue to cooperate fully with the Office.

The agreement announced today is the result of an investigation conducted by IRS-CI. The government’s case is being handled by the Office’s Business and Securities Fraud Section in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act.  Assistant United States Attorneys Hiral D. Mehta, Gillian Kassner and Tara McGrath, and former Assistant U.S. Attorney Brian D. Morris prosecuted the case, with assistance from Paralegal Specialist Timothy Migliaro.

The Defendant:

AMERICAN EXPRESS COMPANY

The American Express Company (American Express), based in New York, New York, has agreed to pay a $108.7 million civil penalty to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by deceptively marketing credit card and wire transfer products and by entering “dummy” Employer Identification Numbers in the credit card accounts of its affiliate bank.

“When financial companies engage in deceptive sales tactics or falsify information to cover up a failure to follow applicable regulations, they threaten the integrity of our financial system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement makes clear that the department will hold accountable those who violate the trust placed in them to follow the rules governing our financial institutions and to be truthful about their business practices.”

The United States alleged that, from 2014 through 2017, American Express deceptively marketed credit cards through the conduct of an affiliated entity that initiated sales calls to small businesses. The alleged deceptive practices included misrepresenting the card rewards or fees and whether credit checks would be done without a customer’s consent and submitting falsified financial information for prospective customers, such as overstating a business’s income.  

The United States also alleged that American Express engaged in practices to deceive its federally insured financial institution into allowing certain small business customers to acquire American Express credit cards without the required employer identification numbers (EINs). EINs are required by law if the card recipient is a business entity such as a corporation or partnership; the requirement does not apply to sole proprietors. The United States alleged that American Express employees used “dummy” EINs such as “123456788” in opening small business credit cards in 2015 and the first half of 2016. These cards were sold to replace an American Express co-branded credit card that was being discontinued during that time period. American Express allegedly allowed these “dummy” EINs to remain on the credit card accounts for up to two years before remediating the problem. American Express allegedly knew that many of the small business applicants had previously acquired American Express-issued co-brand cards where the card application stated that EINs were required for corporations or partnerships, but if the applicants left the EIN line blank, American Express would assume they are sole proprietors. That practice exacerbated the effects of American Express’s failure to enter proper EINs when it sold these customers replacement cards.

Finally, the United States further contended that American Express employees deceptively marketed wire transfer products known as Payroll Rewards and Premium Wire to its small business customers from 2018 through 2021, making false assertions regarding these products’ tax benefits. As to both products, American Express allegedly would wire money for an above-market fee that was far in excess of that offered by competitors in the marketplace and award the businesses or the business owners credit card membership reward points. American Express sales employees allegedly told customers that the wire transfer fees were tax deductible as business expenses, while the reward points earned on the transaction were not taxable, and thereby afforded the customer tax-free benefits.  The United States contended, however, that the above-market wiring fee was not deductible as an ordinary or necessary business expense insofar as it was incurred by a customer solely for the purpose of generating a personal benefit.

Contemporaneous with the civil resolution, American Express will enter into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Eastern District of New York and pay a criminal fine and forfeiture. That agreement deals exclusively with the Payroll Rewards and Premium Wire programs referenced above. Under the terms of the civil settlement, American Express will receive a credit toward the satisfaction of the civil penalty in the amount of $30.35 million if it makes a full payment of the forfeiture and fine amounts due under the criminal resolution.

“This multi-million-dollar settlement holds American Express accountable for violating FIRREA through unlawful sales tactics and recordkeeping requirements, and deceiving small business customers who placed their trust in the Company,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Mid-Atlantic Region. “The FDIC-OIG will continue to work with our law enforcement partners to investigate financial crimes that harm customers and undermine the integrity of our Nation’s financial institutions.”

“Today’s multi-million dollar settlement should make clear that financial companies who engage in fraudulent and deceptive practices will be held accountable for their actions,” said Special Agent in Charge John T. Perez of Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked alongside our federal law enforcement partners to achieve this result.”

Attorneys Daniel Spiro and Mary Beth Hickcox-Howard of the Civil Division’s Commercial Litigation Branch, Fraud Section handled the matter with assistance from the Legal Division of the Federal Reserve Board of Governors and the Office of Comptroller of the Currency’s Chief Counsel’s Office. Senior Special Agent Brittany Harding of the Office of the Inspector General for the Department of Treasury, Special Agent Will Burmeister of the Office of the Inspector General for the Federal Reserve Board and Senior Special Agent Mike Serra from the Office of the Inspector General for the Federal Insurance Deposit Corporation investigated the matter.

Except for the conduct admitted in connection with the criminal resolution, the claims resolved by the settlement are allegations only. There has been no determination of liability.

View the settlement here

Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging broker David Cooper and traders Randy Grewal, John Lowe and Richard Ringel with conspiracy to commit securities fraud and securities fraud for their involvement in an insider trading scheme.  Cooper was arrested today in Westchester and will be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo.  Grewal was arrested in Anthem, Arizona and Lowe and Ringel were arrested in Stewart and Boca Raton, Florida, respectively.  They will be arraigned in the Eastern District of New York at a later date.

Judy Philips, Acting Attorney for the United States for the Eastern District of New York, William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) and Brendan Donahue, Acting Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the arrests and charges.

“As alleged, the defendants exploited their access to inside information for years to gain an unfair advantage over the investing public for their own personal gain,” stated Acting Attorney for the United States Philips.  “The arrests and indictment demonstrate that this Office will protect the integrity of the securities markets and aggressively prosecute those who engage in insider trading.”

Ms. Philips expressed her appreciation to the U.S. Securities and Exchange Commission, New York Regional Office, and the Financial Industry Regulatory Authority for their significant cooperation and assistance during the investigation.

“Those who participate in illicit trading schemes undermine our U.S. Securities and Exchange Commission laws and regulations with selfish ambition,” stated HSI New York Special Agent in Charge Walker.  “HSI continues to work side-by-side with our law enforcement partners to ensure fraudsters who manipulate our legal financial systems are identified and prosecuted to the fullest extent.”

“This is a case of pure greed where individuals lied, obtained information illegally, and used it solely for their own personal financial gain. Postal Inspectors, along with our law enforcement partners, will continue to investigate fraud vigilantly and will protect investors from falling victim to predatory behavior,” stated USPIS Acting Inspector in Charge Donahue.

As alleged in the indictment, between approximately January 2018 and May 2024, the defendants conspired to obtain material non-public information (MNPI) about upcoming secondary stock offerings and to trade on that MNPI in advance of those offerings.  The defendants illegally obtained MNPI from numerous sources, including through Cooper, who obtained MNPI in his capacity as an employee of a broker-dealer (Broker-Dealer) with investment banks involved in and underwriting the secondary stock offerings.  The MNPI included specific deal information such as the identity of the public company issuing the secondary offering; the timing of the deal; the structure of the deal; and the price at which the company would offer its stock in the upcoming offering.  Cooper breached his duty of confidentiality to Broker-Dealer and misappropriated the information when he improperly disclosed it to Lowe, Ringel and others with knowledge that they intended to use the information to execute short sales in advance of the public announcement of the secondary offerings.  Cooper shared the MNPI to induce Broker-Dealer customers, including Lowe and Ringel, to commit to buy shares in the offerings so that Cooper and Broker-Dealer would receive compensation from the underwriters. Lowe, in turn, passed MNPI to Grewal. Lowe, Ringel and Grewal used MNPI to obtain more than $1 million in illegal profits on their short sales in advance of secondary offerings.

Evidence obtained from judicially authorized wiretaps revealed that in connection with numerous secondary offerings between approximately January 2023 and May 2023, Cooper and a co-conspirator (Co-Conspirator #1) obtained MNPI from investment firms that were underwriting the secondary offerings and provided MNPI to Lowe, Ringel and others, with knowledge that Lowe, Ringel and others intended to trade securities in advance of secondary offerings based on the MNPI.  Those secondary offerings included the companies Chicken Soul for the Soul Entertainment, Inc. (NASDAQ: CSSE), Revelation Biosciences, Inc. (NASDAQ: REVB) and Tivic Health Systems, Inc. (NASDAQ: TIVC). 

Fraudulent Trading on MNPI in the CSSE Secondary Offering

On or about March 30, 2023, Cooper obtained MNPI about the timing and pricing of the CSSE offering from the sole managing underwriter for the deal and shared that information with Ringel, who traded in CSSE in advance of the offering using the information, and Co-Conspirator #1, who gave the inside information to Lowe.  Lowe traded based on the MNPI and tipped Grewal, who also traded using the MNPI.

Fraudulent Trading on MNPI in the REVB Secondary Offering

Between February 6, 2023 and February 8, 2023, Lowe obtained MNPI about the timing of the REVB offering from a representative of the sole underwriter on the deal and passed it to Grewal, who traded in REVB using the information.  Between February 7, 2023 and February 9, 2023, Ringel traded REVB based on MNPI that Cooper received from another representative of the sole underwriter on the deal.

Fraudulent Trading on MNPI in the TIVC Secondary Offering

On or about February 6, 2023, Cooper called a representative of the sole managing underwriter for the TIVC offering.  The next day, Co-Conspirator #1 communicated to Lowe that TIVC intended to offer shares of its stock in a secondary offering. After learning this information, Lowe traded in TIVC and passed the MNPI he received from Co-Conspirator #1 to Grewal, who then also traded in TIVC.  Between February 6, 2023 and February 8, 2023, Ringel and Cooper spoke over the telephone numerous times and Cooper executed a number of short sales in TIVC.  In particular, on February 8, 2023 (after Co-Conspirator shared MNPI about the TIVC deal with Lowe), Cooper spoke with Co-Conspirator #1 and then with Ringel.  Approximately six minutes after Ringel and Cooper spoke, Ringel executed additional short sales in TIVC.

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The defendants face up to 25 years in prison if convicted of the charges.

The government’s case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Section of the Office’s Long Island Division.  Assistant United States  Attorneys Jessica K. Weigel, Sophia M. Suarez and Adam R. Toporovsky are in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett.

The Defendants:

DAVID COOPER
Age:  38
Larchmont, New York

RANDY GREWAL
Age:  54
Anthem, Arizona

JOHN LOWE (also known as “Clams”)
Age:  61
Sayville, New York

RICHARD RINGEL
Age:  54
Boca Raton, Florida

E.D.N.Y. Docket No. 25-CR-10 (DG)

Earlier today, at the federal courthouse in Central Islip, Joshua Lampley-Reid, also known as “Tio” and “Fendi,” and a member of the Makk Balla set of the Bloods street gang, was sentenced by United States District Judge Gary R. Brown to 23 years in prison for sex trafficking of minors.  Lampley-Reid operated as a “pimp,” using violence and the threat of violence to compel the commission of commercial sex acts for his financial benefit, including by minors as young as 15 years old.  Lampley-Reid pleaded guilty to the charge in August 2022.

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI) and Errol D. Toulon, Jr., Suffolk County Sheriff, announced the sentence.

“The defendant is a ruthless predator who exploited vulnerable minors without families or homes, and sexually trafficked them for his own financial gain,” stated Acting United States Attorney Pokorny.  “He is deserving of today’s significant jail sentence for the horrific physical and psychological abuse he inflicted on the victims, which, unfortunately, will continue to affect them for years to come.  It is my sincere hope that the justice meted out today will provide some measure of comfort to these young women and help them on their journey to healing.”

“This sentence brings some justice to the minors victimized by this dangerous predator who is now put away from causing any further harm to our community’s most vulnerable members,” stated HSI New York Special Agent in Charge Walker.  “Our children deserve to be protected from this violence and shielded from the lifelong trauma that accompanies it. HSI works collectively with our federal, state and local law enforcement partners to bring an end to child exploitation and sex trafficking. Prosecuting those who seek to exploit children for their own self-gratification or greed is one of our top priorities.”

“The sentencing of this dangerous gang member is a clear message that those who prey on the most vulnerable members of our community will be held accountable,” stated Suffolk County Sheriff Toulon.  “The Suffolk County Sheriff’s Office is committed to continuing to fight human trafficking and working tirelessly with our federal and local partners to ensure that justice is served and that survivors are supported in their journey toward recovery.”

As set forth in the government’s sentencing memorandum and other court documents, in December 2019, Lampley-Reid began recruiting females, including Jane Doe 1 and Jane Doe 2, to engage in commercial sex acts for his own financial benefit.  The defendant used social media and other internet applications to establish relationships with potential victims and groomed them by conveying a romantic interest in them, manipulating them into performing commercial sex acts and then effectively enslaving them through acts of force and coercion.  The defendant directed when, where and with whom the commercial sex acts would be performed.  The defendant met resistance to his commands, or failure to pay him, with violence or the threat of violence.  To maintain control over his victims, the defendant alternately showed affection and acted violently, not only beating and choking his victims, but also withholding food and other basic necessities.  This psychological and emotional abuse was depicted in videos recovered from the defendant’s cellular telephone.  He tracked his victims’ phones, threatened their families and stalked them after they left him.  The defendant used his association with the Makk Balla set of the Bloods street gang to terrorize them.  He also engaged in sexual intercourse with his minor victims, which he often video recorded, and managed his prostitution business over the Internet, posting sexually exploitative photos of minor victims that he took or persuaded them to take of themselves in order to further his trafficking business.  Although this conduct was concentrated in Nassau County, the defendant also transported certain victims to other states, including Florida, North Carolina and Maryland.   

If you are a victim or have information about sex trafficking, call HSI at 1-866-347-2423.  To get help from the National Human Trafficking Hotline, call 1-888-373-7888 or text HELP or INFO to BeFree (233733).  HSI is ready to work with you in your native language, regardless of your immigration status.           

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:

JOSHUA LAMPLEY-REID (also known as “Tio” and “Fendi”)
Age:  30
West Hempstead, Long Island

E.D.N.Y. Docket No. 21-CR-319 (S-1) (GRB)

Earlier today, in federal court in Brooklyn, Marvin Pippins, also known as “Mukk,” was sentenced by United States District Judge Pamela K. Chen to life imprisonment for murdering a rival gang member by shooting at him six times.  Following a three-week trial in April 2023, Pippins was convicted by a federal jury of racketeering conspiracy, murder conspiracy, murder in-aid-of racketeering, drug conspiracy and related firearms charges.  Pippins was also sentenced today to a concurrent term of 30 years for racketeering conspiracy and to a consecutive term of five years in prison for unlawful possession of a firearm, among other things.

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Marvin Pippins will deservedly spend the rest of his life in prison for this cold-blooded murder, undertaken in service of a years-long gang war,” stated Acting United States Attorney Pokorny. “Pippins committed predatory and deadly crimes on behalf of a violent street gang that, for years, polluted the streets with drugs, preyed on unsuspecting victims of financial fraud and subjected rivals and innocent civilians alike to acts of violence.  My Office is focused on dismantling violent criminal organizations, and today’s sentence should send a message that the most serious of crimes will be met with the most serious of consequences.”

Ms. Pokorny expressed her appreciation to the New York City Police Department for their outstanding work on this investigation.

“In 2015, Marvin Pippins, a 5-9 Brims gang member, ruthlessly murdered a rival associate in a twisted attempt to restore the gang’s honor and thwart future attacks,” stated FBI Assistant Director in Charge Dennehy.  “Pippins’ myriad of crimes strengthened the gang’s presence across Brooklyn and fueled persisting territorial disputes. May today’s lifelong sentence reflect the FBI’s renowned commitment to disrupting all criminal enterprises plaguing our city with violence and illicit substances.”

Between 2012 and 2020, Pippins was a member of the 5-9 Brims—a violent set of the Bloods street gang, responsible for sophisticated fraud schemes, prolific narcotics trafficking and violent crimes, including gunpoint robberies, shootings and murders. This crew of 5-9 Brims was also known as “Breadgang.” Pippins and his fellow members operated principally in and around the Marlboro Houses in the Gravesend section of Brooklyn.   Pippins personally engaged in a broad array of criminal activity and earned a reputation as a “shooter” and as someone who generated money for the gang.  He participated in financial fraud on behalf of the gang, sold drugs and carried guns to protect the gang’s criminal rackets. Pippins was also convicted of several crimes related to the gang’s violent rivalry with “Real Ryte,” a Canarsie-based rival crew.  In September 2015, the defendant’s brother Melvin Pippins, also known as “Melly,” was murdered. The defendant and his fellow gang members blamed Real Ryte for the murder, and there was an “expectation” that members of the 5-9 Brims would retaliate against Real Ryte with violence. On December 19, 2015, Pippins murdered Sean Peart, a member of Real Ryte, while the victim was alone and unarmed in his parked car on Dean Street outside the Weeksville Gardens housing development.  Peart tried to speed away but crashed his car before succumbing to his injuries.  After the murder, Pippins bragged to fellow members and associates of the gang admitting that he “did boy dirty.”  In rap lyrics, the defendant described Peart’s murder in detail, including references to the victim “hanging out the window” and giving him “shot after shot.”

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States  Attorneys Lindsey R. Oken and Dana Rehnquist are in charge of the prosecution, with assistance from Assistant United States Attorneys Nicholas J. Moscow and Drew G. Rolle.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The Defendant:

MARVIN PIPPINS (also known as “Mukk”)
Age: 34
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-378 (PKC)

Earlier today, in federal court in Central Islip, Jairo Saenz, also known as “Funny,” a high-ranking member of the Brentwood/Central Islip chapter of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in seven murders, namely, the January 28, 2016 murder of Michael Johnson; the April 29, 2016 murder of Oscar Acosta; the September 13, 2016 murders of Kayla Cuevas and Nisa Mickens; the October 10, 2016 murder of Javier Castillo; the October 13, 2016 murder of Dewann Stacks; and the January 30, 2017 murder of Esteban Alvarado-Bonilla.  Saenz also pleaded guilty to his participation in three attempted murders, arson, narcotics trafficking, firearms offenses and a conspiracy to kill Marcus Bohannon, who was murdered on September 5, 2016 by other members of the MS-13.

Today’s guilty plea proceeding was held before United States District Judge Gary R. Brown.  When sentenced, Jairo Saenz faces up to 60 years in prison, and a minimum sentence of 40 years in prison under the terms of his plea agreement. 

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“Today, Jairo Saenz pleaded guilty to seven murders that can only be described as barbaric, and multiple acts of senseless gang violence that had turned parts of Long Island into a war zone, with MS-13 gang members wielding guns, machetes, bats and fire that threatened the safety of our communities,” stated Acting United States Attorney Pokorny.  “I commend my Office’s prosecutors and the Long Island Gang Task Force who are committed to holding MS-13 gang members accountable for the crimes they have committed and harm they have caused.  It is my sincere hope that today’s guilty plea brings some measure of solace and closure to the families of the defendant’s victims who continue to mourn the deaths of their loved ones.”

According to court filings and statements made during today’s guilty plea proceeding, Jairo Saenz was a high-ranking member of the Brentwood/Central Islip chapter of the Sailors clique of the MS-13 – one of the more powerful, violent and well-established cliques on the East Coast of the United States.  At the time, he was second in command to his brother, Alexi Saenz, who pleaded guilty to the same crimes on July 10, 2024.  Jairo Saenz committed the following crimes in order to maintain and increase his membership and status within the gang, and to further the mission of the MS-13:

January 28, 2016 Murder of Michael Johnson

On January 28, 2016, Alexi Saenz and other MS-13 members and associates were at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang.  At that point, Johnson was marked as their “food” – a reference to their intention to kill him. 

After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Alexi Saenz contacted Jairo Saenz and several other MS-13 members, informed them of the plan to kill Johnson and instructed them to bring weapons, including a machete and a baseball bat, to a wooded area in Brentwood.  Alexi Saenz then lured Johnson to that secluded meeting location under the guise of smoking marijuana.  The MS-13 members and associates, including Jairo Saenz, ambushed Johnson from behind – striking Johnson with the baseball bat, stabbing him with a knife and taking turns hacking him with the machete.  They fled after hearing police sirens in the area.   

Johnson was reported missing by family members.  Less than one week after his murder, on February 2, 2016, members of the SCPD responded to a 911 call about a body found in the woods by a passerby and recovered Johnson’s body.  An autopsy determined Johnson’s cause of death to be sharp and blunt force injuries.   

April 29, 2016 Murder of Oscar Acosta

In early 2016, Alexi Saenz, Jairo Saenz and their fellow Sailors clique members decided to “green light,” or approve, the murder of 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  The New York Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder. 

On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members, including Alexi Saenz and Jairo Saenz, who arrived together.  The MS-13 members loaded Acosta into the trunk of the Saenz brothers’ car, and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  At the direction of Alexi Saenz, the MS-13 members removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by the Saenz brothers.  The MS-13 members then buried Acosta’s body in a shallow grave. 

Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

July 18, 2016 Attempted Murders of John Doe #1 and John Doe #2

On July 18, 2016, during a Sailors clique meeting at the Saenz brothers’ house in Central Islip, Alexi Saenz instructed the group to hunt for rival gang members who had been disrespectful to the MS-13, in order to attack and kill them.

Later that evening, Jairo Saenz and other members of the MS-13, who were driving around Brentwood armed with firearms and a machete, spotted a group of men on Apple Street.  Believing these men to be members of a rival gang, three MS-13 members got out of the car driven by Jairo Saenz and attacked the group, firing rounds from two different guns, and then using a machete to hack at one of the men who had fallen to the ground.

Two individuals were injured as a result of this attack.  John Doe #1 was struck with a bullet, but survived.  John Doe #2 was attacked with a machete, and was permanently disfigured.

August 10, 2016 Attempted Murders of Suspected Rival Gang Members

In 2016, members of the MS-13 were engaged in a series of disputes with members of the Goon Squad, a rival gang in Brentwood. 

On August 10, 2016, Alexi Saenz and another MS-13 member drove through the neighborhood around Lukens Avenue in Brentwood, and spotted several men who they believed were members of the Goon Squad.  They then rallied other members of the Sailors clique, including Jairo Saenz, to come kill the rivals. 

The MS-13 members divided into two vehicles and drove towards the house where the suspected Goon Squad members had been spotted. The Saenz brothers’ car kept watch for the police, while two other MS-13 members, each armed with a gun, approached the group of suspected rivals and fired numerous shots in their direction. No one was hit, although a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping.

September 5, 2016 Murder of Marcus Bohannon

On September 4, 2016, after a Sailors clique meeting at the Saenz brothers’ house in Central Islip, Jairo Saenz, Alexi Saenz and other MS-13 members went out hunting for rival gang members to kill.

The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until Alexi Saenz’s group spotted 27-year old Marcus Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting.  Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

September 12, 2016 Arson

During the summer of 2016, Sailors clique members of the MS-13 were regularly having altercations with local gang members based in a neighborhood on Freeman Avenue in Brentwood.

On September 12, 2016, the MS-13 members retaliated by setting fire to a car parked in the driveway of one of the houses in that rival gang neighborhood.  Alexi Saenz directed other gang members to purchase gasoline and carry out the arson, while he drove around watching for police. Jairo Saenz drove the other MS-13 gang members to that house, where they poured gasoline on a car parked in the driveway, and set it on fire.  The car exploded and set another parked car on fire.   

September 13, 2016 Murders of Kayla Cuevas and Nisa Mickens

On September 13, 2016, Sailors clique members brutally murdered 15-year-old Nisa Mickens and 16-year-old Kayla Cuevas, both students at Brentwood High School.

In the months leading up to the murders, Cuevas was involved in a series of disputes with members and associates of the MS-13.  Approximately one week before the murders, these disputes escalated when Cuevas and several friends were involved in an altercation with MS-13 members at Brentwood High School.  After that incident, the MS-13 members vowed to seek revenge against Cuevas.

On the evening of September 13, 2016, the Saenz brothers and other members of the Sailors clique of the MS-13 were driving in separate cars around Brentwood in search of rival gang members to attack and kill.  One group of MS-13 members spotted Cuevas and Mickens walking down residential Stahley Street.  Recognizing Cuevas, they called the Saenz brothers and were granted permission to kill the girls.  Several MS-13 members then chased down and attacked both Cuevas and Mickens, wielding baseball bats and a machete, striking each of the girls numerous times in their heads and bodies, while the Saenz brothers’ car drove around watching for police.  After the murders, the group retreated to the Saenz brothers’ home in Central Islip, where they changed clothes and hid the weapons.   

Mickens, whose body was discovered later that evening on Stahley Street, not far from Cuevas’s home, sustained significant sharp force trauma to her face and blunt force trauma to her head.  Cuevas, whose body was discovered the following day behind a house adjacent to where Mickens’s body was found, sustained significant blunt force trauma to her head and body and multiple lacerations.

October 10, 2016 Murder of Javier Castillo

In October 2016, the MS-13 targeted 15-year-old Javier Castillo because he was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. 

On October 10, 2016, Jairo Saenz and other members of the Sailors clique convinced Castillo, who lived in Central Islip, to drive with them to Freeport – approximately 30 miles away – to smoke marijuana.  Once there, they met Alexi Saenz and other Sailors clique members.  The group then lured Castillo to an isolated marsh area in Cow Meadow Park, where they attacked him, taking turns hacking him to death with a machete. 

Afterwards, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in late October 2017.  Castillo was determined to have suffered multiple sharp force injuries to his head, neck, torso and extremities.

October 13, 2016 Murder of Dewann Stacks

On the evening of October 13, 2016, the Saenz brothers and other members of the Sailors clique of MS-13 were driving around Central Islip and Brentwood in search of rival gang members to attack and kill.

That night, they spotted 34-year-old Dewann Stacks and, believing him to be a rival gang member, Alexi Saenz authorized his murder.  While Alexi Saenz drove around watching for police presence, Jairo Saenz drove three MS-13 members, armed with two machetes and a baseball bat, to attack Stacks.  The three armed MS-13 members got out of the car, and beat and hacked Stacks to death on American Boulevard, a residential street in Brentwood.  Stacks sustained severe sharp and blunt force trauma to his face and head, leaving his body nearly unrecognizable.

January 30, 2017 Murder of Esteban Alvarado-Bonilla

On the morning of January 30, 2017, Alexi Saenz and other members of the Sailors clique of MS-13 spotted 29-year-old Esteban Alvarado-Bonilla inside El Campesino Deli in Central Islip.  Alvarado-Bonilla was wearing a football jersey bearing the number “18,” which led the MS-13 to conclude that he was a member of a rival gang, and they plotted to kill him.

After Alvarado-Bonilla was observed in the Deli, Jairo Saenz drove MS-13 members to get a mask and another vehicle, both of which would be used when committing the murder.  Alexi Saenz provided the clique’s 9-millimeter handgun for use in the murder.

At approximately 10:30 a.m., a masked MS-13 member entered the deli, approached Alvarado-Bonilla from behind, and shot him multiple times, killing him.  One of the bullets pierced through Alvarado-Bonilla’s head and struck the chest of a female employee of the deli, who was standing directly in front of him.  The deli employee survived the gunshot wound.   

Narcotics Trafficking Conspiracy

For a year and a half, from approximately April 2016 through March 2017, in order to finance the illegal operations of the Sailors clique, the Saenz brothers obtained wholesale quantities of cocaine and marijuana, which they distributed to other Sailors clique members and associates for street-level sales in Brentwood and its surrounding areas.  After the sales, the profits were turned over to the Saenz brothers, for use in, among other things, purchasing firearms for use by clique members, wiring money to MS-13 leaders in El Salvador and buying additional narcotics for further distribution.     

Today’s guilty plea is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 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 prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using 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 Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with the assistance of Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

The Defendant:

JAIRO SAENZ (also known as “Funny”)
Age: 28
El Divisadero, Morazán, El Salvador; and Central Islip, New York

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

Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with the Queens Borough Public Library (QBPL) and the City of New York (the City) to resolve violations of the Americans with Disabilities Act (the ADA) at the Hunters Point Library Branch of the QBPL (the HPL Branch).   The ADA applies to QBPL because it is a “public accommodation” as defined by Title III of the ADA and to the City because it is a “public entity.” Title II and Title III of the ADA require that newly constructed public accommodations are accessible to individuals with mobility impairments.

“The design and construction of the Hunters Point Library Branch of the Queens Borough Public Library blatantly violated the ADA’s requirement that individuals with disabilities have equal access to public accommodations,” stated United States Attorney Peace.  “Today’s settlement agreement ensures that access.  My Office will continue to enforce the ADA and its protections against discrimination for people with disabilities.”

The HPL Branch, located at 47-40 Center Boulevard in Long Island City, Queens, was designed by Steven Holl Architects pursuant to a contract with the City.  Construction was completed in the fall of 2019.  Among the library’s unique architectural features is a two-story high, five-tiered mezzanine area intended to house HPL’s periodical and adult fiction sections.  However, only the top and bottom tiers are accessible to individuals with mobility impairments, in violation of the ADA.

The United States conducted an ADA compliance review in December 2019 of the HPL Branch shortly after it opened.  That review identified approximately 95 violations of the ADA’s accessibility requirements which the City and QBPL have now agreed to remediate.  Among the work that the City and QBPL will perform is construction of a platform lift from the fifth tier to the fourth tier of the Mezzanine area and a skywalk/skybridge to the third tier.  The platform lift and skywalk/skybridge will provide stair-free access to the third and fourth tiers.  QBPL will not house any portion of the HPL collection on the second tier of the Mezzanine Tiers so long as that tier remains inaccessible to people with mobility disabilities. 

Additional remediation will include creating wheelchair accessible spaces in the children’s area and the rooftop terrace. Under the terms of the agreement, all remediation work will be completed within five years.

This matter is being handled by the Office’s Civil Division Civil Rights Chief Michael J. Goldberger.

Breon Peace, United States Attorney for the Eastern District of New York, and Lisa Garcia, Regional Administrator of the U.S. Environmental Protection Agency, Region 2 (EPA), today announced the filing of a civil complaint in federal court in Central Islip against Long Island-based company Spectrum Wholesale, Inc. (Spectrum) and Thomas J. Ciccarelli, Spectrum’s principal, alleging the defendants’ illicit sale of hundreds of products designed to remove, bypass, defeat, or render inoperative the emissions controls that vehicle and engine manufacturers use to meet emission standards, is in violation of the Clean Air Act.

The complaint seeks a court order finding that defendants’ sales violate the Clean Air Act, injunctive relief enjoining Defendants from further violations, as well as civil penalties for each violation.

“These sales have put the public health and the environment at risk by defeating critical vehicle emission controls on hundreds of vehicles,” stated United States Attorney Peace.  “My Office will continue to rigorously enforce the Clean Air Act against those who degrade the public health and environment to make a fast dollar.”

“The increased air pollution resulting from these devices threatens the health of everyone, especially those with pre-existing health conditions, children and older adults,” stated EPA Regional Administrator Garcia.  “To protect public health, EPA is enforcing measures to eliminate the manufacture and sale of such devices to ensure that the vehicles on our roads meet required emission standards.”

The Clean Air Act prohibits selling, offering for sale, or causing the sale or offer of aftermarket parts that defeat motor vehicle emission controls (commonly known as “aftermarket defeat devices”).  The complaint alleges that between October 18, 2019 and September 2, 2020, primarily through online transactions, the defendants sold, offered for sale, or caused the sale of approximately 672 such devices.  By enabling vehicle emission controls to be evaded, aftermarket defeat devices contribute to air pollution and harm to public health.  They also impede efforts by the EPA, states, tribes, and local agencies to plan for and meet air quality standards.  The use of defeat devices can exponentially increase emissions of particulate matter (PM), carbon monoxide (CO), nitrogen oxides (NOx), and nonmethane hydrocarbons (NMHC).  For example, EPA testing has found that deleting a motor vehicle's emissions controls can increase tailpipe emissions of NOx by a factor of up to 300 times, CO by a factor of approximately 130 times, NMHC by a factor of approximately 1,000 times, and PM by a factor of up to 37 times.

The lawsuit is being handled by Assistant United States Attorney Matthew Silverman and Paralegal Specialist Annabelle Duval of the Eastern District of New York, along with EPA Office of Regional Counsel, Assistant Regional Counsels Cassandra Basile and Erick Ihlenburg, with assistance from the EPA Office of the Inspector General.

In June 2021, the United States Attorney’s Office for the Eastern District of New York created an Environmental Justice Team within the Office’s Civil Division.  The focus of the Environmental Justice Team is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards.  Additional information concerning the Office’s Environmental Justice Team can be found at:  https://www.justice.gov/usao-edny/environmental-justice-and-enforcement

The Defendants:

SPECTRUM WHOLESALE INC.
Oakdale, Long Island

THOMAS J. CICCARELLI
Oakdale, Long Island

E.D.N.Y. Docket No. 25-CV-127 (JMA)