Southern District of New York

Jay Clayton, the United States Attorney for the Southern District of New York; Michael Alfonso, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that SUZETTE TRIMMINGHAM, a former New York City Police Department (“NYPD”) traffic safety officer, and MERVIN RHYMES, the owner and operator of an accident victim call center, both pled guilty to participating in a bribery scheme.  Specifically, TRIMMINGHAM and RHYMES admitted to participating in a scheme in which TRIMMINGHAM provided information of automobile accident victims contained in a non-public NYPD database to RHYMES in exchange for bribes of money and other things of value.  TRIMMINGHAM pled guilty yesterday before U.S. District Judge John G. Koeltl, and RHYMES pled guilty today before U.S. District Judge Ronnie Abrams.

“Suzette Trimmingham abused her position as an NYPD traffic safety officer and, in exchange for bribes, sent Mervin Rhymes information about automobile accident victims so that Rhymes’s call center could profit by referring those victims to lawyers and doctors,” said U.S. Attorney Jay Clayton.  “Trimmingham and Rhymes made hundreds of thousands of dollars from their scheme.  Their pleas highlight this Office’s commitment to pursuing those, including members of law enforcement, who seek to profit by abusing their positions of public trust.”

HSI New York Acting Special Agent in Charge Michael Alfonso said: “Suzette Trimmingham exploited her position of public trust and in turn profited handsomely, alongside her domestic partner Mervin Rhymes, by targeting victims of recent vehicle accidents.  Whether at work, off-duty and even on vacation, she took steps to access individuals’ personal details from non-public government databases, and then shared with Rhymes that private, sensitive information so they could further enrich their lifestyle.  HSI New York, alongside the FBI and the NYPD, will always place the public’s wellbeing above all else, and will relentlessly pursue bad actors willing to shamelessly betray their sworn duties for their own selfish gains.”          

FBI Assistant Director in Charge Christopher G. Raia said: “Suzette Trimmingham, a former NYPD traffic safety officer, abused her position by providing Mervin Rhymes with non-public personal details of automobile accident victims.  The defendants prioritized personal greed over safeguarding sensitive victim data.  The FBI will never permit any individual, especially a public servant, to share confidential information in exchange for financial incentives.”

According to the allegations contained in the Informations, court records, and statements made in Court: 

From at least in or about January 2020 through at least in or about June 2024, while at work as an NYPD traffic safety officer, TRIMMINGHAM reviewed police accident reports (“PARs”), which contained the personally identifiable information of automobile accident victims, for NYPD precincts that were not part of her law enforcement duties.  At times, TRIMMINGHAM also reviewed PARs while she was off duty and while on vacation.  TRIMMINGHAM then provided the personally identifiable information of accident victims to RHYMES.  For example, in or about April 2024, while at work, TRIMMINGHAM reviewed PARs and copied and pasted into a Word document the names and phone numbers of automobile accident victims mentioned in the PARs.  That same month, TRIMMINGHAM sent RHYMES dozens of images of documents, each containing dozens of names and phone numbers of automobile accident victims.

RHYMES paid bribes to TRIMMINGHAM in exchange for her providing the personally identifiable information of automobile accident victims to him.  For example, on or about January 18, 2021, TRIMMINGHAM told RHYMES, in sum and substance, that she had sent him PARs and that RHYMES was supposed to pay TRIMMINGHAM for the PARs.  In response, RHYMES told TRIMMINGHAM that he had paid TRIMMINGHAM for the PARs a few days earlier.  TRIMMINGHAM and RHYMES made at least $900,000 from the scheme.

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TRIMMINGHAM, 54, and RHYMES, 61, both of Queens, New York, each pled guilty to one count of conspiracy to commit federal program bribery, which carries a maximum sentence of five years in prison.  TRIMMINGHAM is scheduled to be sentenced by Judge Koeltl on October 8, 2025, at 4:30 p.m., and RHYMES is scheduled to be sentenced by Judge Abrams on October 8, 2025, at 11:30 a.m.  

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as the sentencing of the defendants will be determined by the judges. 

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and Homeland Security Investigations.  Mr. Clayton also thanked the NYPD for its assistance.            

The case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Connie L. Dang and Rebecca T. Dell are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced that RAFAEL ALVAREZ, a/k/a “the Magician,” was sentenced today by U.S. District Judge J. Paul Oetken to four years in prison in connection with his orchestration of a decade-long, $145 million tax fraud scheme.  As part of the scheme, ALVAREZ oversaw the filing of tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce his clients’ tax burden.  ALVAREZ previously pled guilty to conspiracy to defraud the U.S. and steal government funds and aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return before Judge Oetken on December 17, 2024.

“Rafael Alvarez was touted as ‘the Magician’ when, in reality, he was an elaborate fraudster, depriving the IRS of $145 million in tax revenue and penalizing many honest taxpayers,” said U.S. Attorney Jay Clayton.  “All Americans bear the burden of tax fraud and want scamsters of this type brought to justice.”

As alleged in the Indictment and Superseding Information and statements made in public filings and court proceedings:

From at least in or about 2010, up to and including in or about 2020, ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”).  ATAX was a high-volume tax preparation company located in the Bronx, New York, which prepared approximately 90,000 federal income tax returns for its customers during this period.  ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers.  During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the Internal Revenue Service (“IRS”) in ATAX customers’ tax returns.  This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS.

In order to further his scheme and limit scrutiny, ALVAREZ specifically recruited to ATAX and personally trained as tax preparers impressionable, easily intimidated workers.  When certain ATAX employees questioned ALVAREZ about his fraudulent preparation of returns, ALVAREZ intimidated and threatened these employees to dissuade them from reporting his fraud scheme to authorities.

In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of $145 million in tax revenue.  ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.”  Additionally, ALVAREZ was a leader of the scheme and attempted to obstruct or impede the administration of justice with respect to the investigation of the tax fraud scheme when he and an ATAX employee made false statements to an IRS Revenue Agent.  ALVAREZ’s operation of ATAX helped the company generate approximately $12 million in fraudulent proceeds over the duration of the fraud.

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In addition to the prison term, ALVAREZ, 61, of Cortland Manor, New York, was sentenced to three years of supervised release.  ALVAREZ was also ordered to pay the IRS $145 million in restitution and forfeit over $11.84 million in fraudulent proceeds.

Mr. Clayton praised the outstanding investigative work of the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration in this case.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney David R. Felton is in charge of the prosecution. 

Jay Clayton, United States Attorney for the Southern District of New York, announced that COREY GILMORE, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to one year and one day in prison for soliciting and accepting approximately $32,000 in bribes from contractors in exchange for awarding repair contracts or approving repair work worth at least approximately $215,000.  GILMORE’s sentence was imposed by U.S. District Judge Lewis J. Liman, who also presided over a one-week trial at which GILMORE was convicted of bribery and extortion under color of official right. 

“Corey Gilmore abused his position at NYCHA to demand bribes from contractors for his personal gain,” said U.S. Attorney Jay Clayton.  “The women and men of this Office are committed to pursuing those who abuse the public’s trust.”

According to the Indictment, public court filings, statements made in court, and evidence presented during trial:

NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year.  When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process.  However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids.

GILMORE, who held multiple superintendent positions at NYCHA developments in the Bronx between 2016 and 2023, demanded and accepted cash in exchange for NYCHA contracts.  He required contractors to pay bribes in order to be awarded the contracts.  GILMORE typically demanded approximately $1,000—between 10% or 20% of the contract value—depending on the size of the contract.  In total, GILMORE demanded and accepted approximately $32,000 dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth approximately $215,000.

Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 63 have pled guilty, and three have been convicted after trial.  GILMORE is the third of the NYCHA employees convicted after trial to be sentenced.  The cases of the four remaining defendants, who are each presumed innocent unless and until proven guilty, remain pending.

If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact OIGNYCHA@doi.nyc.gov or (212) 306-3356.  If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

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In addition to the prison term, GILMORE, 47, of West Haverstraw, New York, was sentenced to two years of supervised release and ordered to pay restitution in the amount of $32,000 and forfeit $32,000. 

Mr. Clayton praised the outstanding investigative work of the New York City Department of Investigation, the U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.

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

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jacob R. Fiddelman, Catherine Ghosh, Emily Deininger, and Matthew King are in charge of the prosecution, with the assistance of Paralegal Specialist Braden Florczyk.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that RANDY MILLER and CHAD MILLER pled guilty to securities fraud and aggravated identity theft in connection with their scheme to defraud municipal bond investors.  The defendants pled guilty before U.S. Magistrate Judge Robyn F. Tarnofsky and will be sentenced before U.S. District Judge Lewis A. Kaplan at a later date.

“Randy and Chad Miller’s fraudulent actions resulted in nearly total losses for investors,” said U.S. Attorney Jay Clayton.  “As today’s guilty pleas make clear, this Office remains committed to protecting the integrity of the public finance system and holding accountable those who exploit investors’ trust.  This case demonstrates the strength of our partnership with the FBI, whose diligent investigation uncovered the defendants’ fraud.”

According to the allegations contained in the Indictment, the Superseding Information, public filings, and statements made in court:

RANDY MILLER and CHAD MILLER defrauded investors in municipal bonds used to fund the development of a major sports complex in Mesa, Arizona called Legacy Park.  In connection with the initial $250 million bond offering in August 2020 and supplemental bond offering in June 2021, the defendants lied to potential investors about the interest sports organizations and other potential customers had in using or relocating to Legacy Park.  The defendants and their associates forged and altered purported “binding” letters of intent and other documents from those potential customers to make it appear that the customers were committing to holding many events at Legacy Park, with a significant number of spectators, and agreeing to pay large fees – all far beyond what the organizations were considering, if they were considering Legacy Park at all.  In some instances, RANDY MILLER and CHAD MILLER signed and directed others to sign customers’ names without the customers’ knowledge or permission.  At other times, the defendants copied and directed others to copy the signatures of other customers onto the fabricated letters, again without the customers’ knowledge or permission.  As part of their scheme, the defendants forged documents on behalf of numerous persons and organizations, including an organization that promotes sports for disabled athletes.

RANDY MILLER and CHAD MILLER presented the fraudulent documents to prospective bond investors and incorporated them into their solicitation materials by claiming that Legacy Park would be 100% occupied at opening and would generate nearly $100 million in revenue in its first year of operations, more than enough to cover the bond payments. 

After the Legacy Park bonds were sold to investors, RANDY MILLER and CHAD MILLER profited personally from the bond proceeds raised.  Legacy Park opened in 2022 and failed shortly thereafter, defaulting on its bonds in October 2022 and filing for bankruptcy in May 2023.  The project was later sold in bankruptcy for less than $26 million.  Of those proceeds, less than $2.5 million went to repay the approximately $284 million owed to Legacy Park bondholders.

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RANDY MILLER, 70, and CHAD MILLER, 41, both of Phoenix, Arizona, pled guilty to one count of securities offering fraud, which carries a maximum sentence of five years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.  As part of their guilty pleas, money judgments in the amounts of $7,289,134.89 and $4,798,980.19 were entered against RANDY MILLER and CHAD MILLER, respectively.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. 

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action. 

The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew R. Shahabian and Courtney L. Heavey are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that JOSE GARCIA was sentenced to 27 months in prison for committing two lengthy fraud crimes—a $4.5 million embezzlement crime and a $2.1 million tax evasion crime.  In the embezzlement scheme, GARCIA had a lucrative no-show job with a technology company from 2012 to 2019.  GARCIA did no work for the technology company, but GARCIA’s co-conspirator, a technology executive, approved millions in payments to GARCIA and GARCIA’s shell entities.  In the tax evasion scheme, GARCIA neither filed tax returns nor paid income taxes from 2011 through 2019.  GARCIA previously pled guilty to wire fraud conspiracy and tax evasion before U.S. District Judge Dale E. Ho, who imposed today’s sentence.  Three other members of the embezzlement conspiracy have also pled guilty to date.

“Jose Garcia engaged in a lengthy embezzlement scheme that involved a no-show job, fraudulent billings, and largescale cash kickbacks,” said U.S. Attorney Jay Clayton. “Garcia then doubled-down and sought to conceal his embezzlement activities by committing another crime – tax evasion.  In all, Garcia stole millions at the expense of hard-working, tax-paying Americans.  He then used the proceeds of his frauds to fund a lavish lifestyle.  For these brazen crimes, Garcia has been sentenced to prison.”

According to the allegations contained in the Indictment, the Superseding Information to which GARCIA pled guilty, and statements made in public filings and in public court proceedings:

The Embezzlement Scheme

From approximately May 2010 through February 2019, GARCIA’s co-defendant, Mark Angarola, spearheaded a large fraud scheme to unlawfully enrich himself and his co-conspirators (the “Conspirators”) by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which Angarola was employed in a senior position. In total, the embezzlement scheme caused a loss of more than $7 million.  GARCIA received the majority of the scheme’s fraud proceeds: $4,554,950.

Angarola was a New York-based Global Account General Manager at the Contractor.  He was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”).  The Contractor had a service contract with the Client, pursuant to which the Contractor provided IT support services to the Client at locations across the U.S.  The Contractor subcontracted certain of this work to a technology solutions company (the “Subcontractor”).  Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor.  Angarola was responsible for oversight of the Subcontractor’s performance on the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract.

Angarola abused his position to fraudulently enrich himself, his family, and his friends.  For instance, he arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals lacked apparent qualifications to perform deskside IT work.  He arranged for the Subcontractor to hire, among others, his wife (a homemaker); his former college roommate (a police sergeant); and his close friends, including GARCIA (a construction manager) and GARCIA’s wife (a schoolteacher).  Thereafter, various Conspirators falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses.  The Subcontractor submitted invoices to the Contractor for the hours purportedly worked and business expenses purportedly incurred by several of the Conspirators, and Angarola, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices.  The purported business expenses incurred by several Conspirators, and ultimately paid for by the Contractor at the direction of Angarola, included restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs.  In fact, the expenses were personal expenses and were not reimbursable under the Contractor’s policy.

GARCIA was a central beneficiary of the embezzlement scheme and received the majority of the fraud proceeds.  These fraud proceeds were paid in part to GARCIA personally, and in part to his shell entities.  GARCIA did no work whatsoever for the Contractor or Subcontractor, but invoiced the Subcontractor, month after month, requesting payment for purported “Management Fees.” For instance, at different points in the scheme, GARCIA requested monthly payment of $36,000, $45,000, $51,000, or $60,000.  Angarola approved these payments to GARCIA on behalf of his employer, the Contractor. In return, GARCIA paid Angarola cash kickbacks exceeding $1 million.  GARCIA participated in the embezzlement scheme despite having fulltime, gainful employment elsewhere as a consultant and project manager in the construction industry.

Financial records reveal that GARCIA spent fraud proceeds on, among other things, private school tuition, rent, luxury travel, luxury items, gym memberships, and sports memorabilia.  For instance, GARCIA paid for stays at luxury hotels such as the Ritz Carlton (in four different cities), the Waldorf Astoria, and the Plaza.  And GARCIA spent more than $50,000 on luxury items, including expensive purchases at Cartier, Hermes, Gucci, Louis Vuitton, Bulgari, Burberry, Bianca Jewelers, a glass blower in Venice, and a violin shop specializing in Stradivarius models.

Tax Evasion

From 2011 through 2019, GARCIA also committed tax evasion, resulting in a tax loss to the Internal Revenue Service (“IRS”) of approximately $2,116,605.  For this nine-year period, GARCIA neither filed tax returns nor paid income taxes. As such, GARCIA failed to report to the IRS the income he derived from the embezzlement scheme as well as the income he derived from other business interests and sources.   GARCIA used shell entities to conceal his receipt of income, including by creating such entities, diverting income to such entities, and using entity bank accounts to pay for his personal expenses.

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In addition to his prison term, GARCIA, 53, of New York, New York, was sentenced to three years of supervised release.  GARCIA was also ordered to forfeit $4,554,950 and pay restitution in the amount of $7,007,055.

Mr. Clayton praised the outstanding investigative efforts of the Federal Bureau of Investigation, New York Field Office; the IRS-Criminal Investigation, New York Field Office; and the U.S. Department of Labor – Office of Inspector General, Northeast Regional Office.

This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit, along with the Justice Department’s Tax Division.  Assistant U.S. Attorneys Michael D. Neff, Timothy V. Capozzi, and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.

Jay Clayton, United States Attorney for the Southern District of New York, announced today that NADINE JAZIMNE WADE was sentenced to 63 months in prison for laundering more than $2 million in fraud proceeds acquired from the victims of romance fraud schemes.  WADE’s sentence was imposed by U.S. District Judge Katherine Polk Failla who also presided over a two-week trial at which WADE was convicted of money laundering and bank fraud charges.

“Nadine Wade used lies and deception to launder over two million dollars for scam artists in Nigeria and South Africa,” said U.S. Attorney Jay Clayton.  “Those funds were stolen from our most vulnerable – elderly men and women — as part of a cruel romance scam.  Today’s sentence should be a reminder that this Office will pursue all persons who participate in online scams targeting our elderly.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

From in or about 2016 through in or about 2021, co-conspirators of WADE based in Nigeria and South Africa committed a series of romance scams against individuals located across the U.S.  Those co-conspirators used aliases, including the names “Diego Francisco” and “Richard Francisco” (the “Francisco Alias”), to meet victims on various dating websites.  After engaging in romantic conversations with the victims via phone, text, and email, those co-conspirators, posing as the Francisco Alias, asked victims for money.  The Francisco Alias then instructed the victims to transfer funds to bank accounts controlled by WADE and others.

WADE received fraud proceeds from victims of the Francisco Alias in personal bank accounts and business bank accounts for her shell company Royal Treasure Chest LLC, a company purportedly involved in, among other things, the sale of women’s clothing and accessories.  Once WADE received fraud proceeds, she rapidly depleted her bank accounts of those funds through cash withdrawals, cashier’s checks, and the purchase of vehicles, among other means.  After taking her own cut of the money, WADE transferred the bulk of the funds to other members of the scheme.   

From in or about 2016 through in or about 2021, WADE controlled more than 18 bank accounts that had deposits totaling over $2 million.  Most of those deposits consisted of wire transfers and check or cash deposits from U.S.-based individuals who were victims of the romance fraud scam described above.   

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In addition to the prison term, WADE, 30, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,772,618 and forfeit $2,261,791.

Mr. Clayton praised the outstanding work of the U.S. Secret Service and the Internal Revenue Service, Criminal Investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Micah F. Fergenson, Matthew J. King, and Dina McLeod are in charge of the prosecution, with assistance from Paralegal Specialist Jayda Foote.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that JONATHAN WHITESIDES, DANIEL MCCORMICK, and BRENT CRANMER pled guilty to committing securities fraud in connection with a scheme to trade in securities of Kaman, Corporation (“Kaman”) using inside information. WHITESIDES and MCCORMICK pled guilty today before U.S. District Judge Margaret Garnett. CRANMER pled guilty before Judge Garnett on May 12, 2025.

“The three defendants engaged in a classic insider trading scheme—buying call options on the stock of a company where insiders know the trading price is about to increase substantially, but the market does not know yet.  Investors expect, and our law requires, that insiders will not misuse confidential information for personal gain,” said U.S. Attorney Jay Clayton. “This Office is committed to prosecuting securities fraud and maintaining a level playing field for all investors.  We will continue working closely with our law enforcement partners to detect, investigate, and bring to justice those who act to undermine the integrity of our financial markets.”

FBI Assistant Director in Charge Christopher G. Raia said: “The defendants admitted to using material nonpublic information for their benefit—more than one million dollars in illicit gains. Insider trading is insidious, damaging the integrity of our financial institutions. The FBI will hold accountable those who attempt to illegally profit from securities fraud schemes in the criminal justice system.”

According to the allegations contained in the Information and Superseding Information and statements made in public filings and in public court proceedings:

WHITESIDES, MCCORMICK, and CRANMER engaged in a scheme to reap illegal profits by misappropriating and trading on material nonpublic information concerning the planned acquisition of Kaman, a publicly-traded company, in violation of duties of trust and confidence owed to the company and its shareholders.

Beginning December 18, 2023, CRANMER, who was an executive at a Kaman subsidiary, learned that Kaman was negotiating an all-cash acquisition at a premium price. CRANMER promptly shared this confidential information with his friend, WHITESIDES, intending for it to be used to purchase Kaman securities before the public announcement of the acquisition. Acting on this information, WHITESIDES acquired Kaman call options in both his own account and in an account in the name of a family member. WHITESIDES subsequently shared the confidential information with his friend, MCCORMICK, who then purchased Kaman stock and call options. Both WHITESIDES and MCCORMICK knew they were trading on confidential information obtained through a breach of a duty owed to Kaman.

Dissatisfied with his anticipated compensation from the acquisition, CRANMER expressed interest in purchasing Kaman securities through an intermediary before the public announcement of the acquisition, acknowledging he was restricted from trading directly. WHITESIDES attempted to arrange a nominee trader for CRANMER, asking MCCORMICK if he would be “comfortable trading on behalf of others” and “using others[’] money.”  CRANMER provided WHITESIDES with $10,000 to fund purchases of Kaman options through MCCORMICK. However, no trades were executed on CRANMER’s behalf before the acquisition announcement.

When Kaman publicly announced on January 19, 2024, that it had agreed to be acquired by a private equity firm in a premium, all-cash transaction, Kaman’s share price rose considerably.  WHITESIDES and MCCORMICK sold their Kaman securities that same day, collectively generating more than $1 million in illegal profits. Afterwards, WHITESIDES attempted to conceal evidence by deleting incriminating text messages.

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JONATHAN WHITESIDES, 46, of Mission Viejo, California, DANIEL MCCORMICK, 61, of Coto de Caza, California, and BRENT CRANMER, 52, of Mission Viejo, California, were each charged with securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WHITESIDES is scheduled to be sentenced by Judge Garnett on October 3, 2025, at 10:30 a.m. MCCORMICK is scheduled to be sentenced by Judge Garnett on September 26, 2025, at 10:30 a.m. CRANMER is scheduled to be sentenced by Judge Garnett on November 10, 2025.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission.

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson and Justin V. Rodriguez are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today the arrest of THOMAS JAMES PUCCINI, 28.  PUCCINI is charged with the sexual exploitation of three minors and with receiving and distributing child pornography.  PUCCINI was arrested today and presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.

“Thomas James Puccini’s alleged crimes are every parent’s nightmare,” said U.S. Attorney Jay Clayton. “Puccini, a football coach, held himself out as a trusted member of his school community, yet he was preying on our most innocent and vulnerable. The women and men of the Southern District will use every tool available to bring to justice those who exploit our children.”

HSI New York Acting Special Agent in Charge James Manning said: “As alleged, the defendant violated parents’ and students’ trust through his vile acts against children. A wolf in sheep’s clothing, he worked closely with kids and teenagers nearly every day, all allegedly while hiding his shameful dark side of exploitation, and committing crimes against the same minors placed under his care. The abhorrent crimes of which he is accused have no place in our society, and I commend HSI New York’s Hudson Valley investigators, alongside our law enforcement partners, for placing the safety of vulnerable New Yorkers above all else.”

Westchester County District Attorney Susan Cacace said: “For months, our criminal investigators worked hard to build the strongest possible case against the defendant, and today’s federal charges are the product of these efforts. I extend my thanks to U.S. Attorney for the Southern District of New York Jay Clayton for his collaboration and partnership on this case. Our office will continue to assist S.D.N.Y. throughout all phases of Mr. Puccini’s prosecution.”

As alleged in the Complaint filed on May 20, 2025 in White Plains federal court and statements made in court[1]:

THOMAS JAMES PUCCINI worked as a football coach for a high school (“School-1”) in Westchester County. In July of 2024, PUCCINI became the interim athletic director for the school district in which the high school was located. 

Victim-1:  In November 2021, Victim-1, who was 17 years old and a student at School-1, was contacted by a Snapchat account with the name “alex_fundi2.”  Victim-1 received a nude image of a female from “alex_fundi2” and believed that he was communicating with a female.  “She” told him that she knew him and went to School-1. Victim-1 sent “her” nude photos of himself, including photos showing his penis. After sending images for approximately a week or two, Victim-1 blocked the “alex_fundi2” account.  Then, Victim-1 received messages from a CashApp account (“CashTag-1”) directing Victim-1 to add “alex_fundi2” back. The messages stated, among other things, “I have your pics and vids,” and told Victim-1 to “add me or I send your pics.”  Victim-1 unblocked “alex_fundi2” and sent “alex_fundi2” sexually explicit images of Victim-1. 

Victim-1 continued to send sexually explicit images to “alex_fundi2” until in or about 2023, when Victim-1 was a freshman in college. 

The user of CashTag-1 provided CashApp with the name "Thomas Puccini," PUCCINI’s date of birth, and PUCCINI’s address in Westchester. Records from Snapchat relating to the “alex_fundi2” account show that an IP address that returned to PUCCINI’s residence in Westchester County was used over 13,000 times to access the "alex_fundi2" account. Further, the “alex_fundi2” account is associated with an email that begins with “puccini01” and ends in “.edu.”

Victim-2: Victim-2 and other middle-schoolers used School-1’s weight room to prepare for Junior Varsity football. PUCCINI supervised them in the weight room. Beginning when Victim-2 was 13 years old and in eighth grade, PUCCINI communicated with Victim-2 through Snapchat, using a Snapchat account with the user name, “tommytutts66,” and requested that Victim-2 take and send PUCCINI photos and videos of Victim-2’s penis.  PUCCINI also sent Victim-2 photos of his penis. PUCCINI specified exactly what he wanted Victim-2 to show him, and, based on his instructions, Victim-2, on numerous occasions, took and sent PUCCINI photos and videos showing various angles of Victim-2’s penis, showing Victim-2 masturbating, showing Victim-2 “finishing” (i.e., ejaculating) with the audio on, and showing Victim-2 laying with his semen on his chest. On numerous occasions, at PUCCINI’s request, PUCCINI and Victim-2 would “race” to see who could masturbate to ejaculation first. The winner would have to send a video or photo capturing the “finish.” 

A search warrant executed at PUCCINI’s residence on November 1, 2024 resulted in the seizure of, among other things, PUCCINI’s desktop computer. The computer contained an iCloud backup with approximately 8000 messages to or from Victim-2 between January 2017 and December 2020.  In hundreds of these messages, PUCCINI referred to masturbating, to Victim-2’s penis, and/or requested that Victim-2 take and send him photos of his penis.

Victim-3: Victim-3, who was 16 years old, and “alex_fundi2” communicated via Snapchat in 2023.  Victim-3 took and transmitted sexually explicit images to “alex_fundi2” in exchange for the promise of expensive gifts.  On January 10, 2023, at approximately 11:24 p.m., “alex_fundi2” told Victim-3, “If I send you for the jacket, I’m going to need you to send those 2 vids and then…. As many vids as I want and of anything that I want until Monday.”  At 11:25 p.m., Victim-3 responded, “monday” and “jesus” and “and as long as it doesn’t involve ass stuff.” Thereafter, Victim-3 transmitted numerous files to “alex_fundi2” containing sexually explicit images of Victim-3.

Victim-4: Victim-4 and “alex_fundi2” communicated via Snapchat in 2023.  Victim-4 told “alex_fundi2” that he was 18 years old and “alex_fundi2” told Victim-4 that he was similarly aged.  “Alex_fundi2” asked Victim-4 for sexually explicit images of Victim-4 when he was 15 or 16.  On June 11, 2023, at approximately 1:50 p.m., Victim-4 transmitted a sexually explicit photo and a sexually explicit video of Victim-4 to “alex_fundi2.”  In both the photo and video, Victim-4 was 15. 

In November 2024, PUCCINI was charged in Westchester County, New York with Grand Larceny in the Fourth Degree.

On an occasion in February 2022, the “alex_fundi2” account engaged in a conversation with a user (“User-1”) on Snapchat and asked, “Can I give you a snapchat to add and you try to get pics/vids from the account?” User-1 told “alex_fundi2,” “Sure” and “I don’t mind being yo undercover bud.” Thereafter, “alex_fundi2” transmitted a Snapchat user name to User-1.  The Snapchat user name belonged to a student who had attended School-1 from 2015 to 2019.  PUCCINI’s desk top computer contained thousands of messages with that student from in or about August 2015 to September 2020. Many of the messages contained requests for sexually explicit images from the student.         

PUCCINI changed the display name of the “alex_fundi2” account on multiple occasions and the various display names he used included, Young & Horny,” “Young NY Vers Bottom Horny,” “Zach,” “Alexandra Fundi,” “Alex Fundi,” “Horny Twink,” and “zach _parker0.”

There may be more victims of this alleged conduct. If you have information to report or you had contact with the Snapchat accounts, “alex_fundi2,” “tommytuts66,” or any of the display names described above contact Homeland Security Investigations through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.  Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199.  Hearing-impaired users can call TTY 802-872-6196.

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PUCCINI, 28, of Eastchester, New York is charged in Counts One, Two and Three with sexual exploitation of a minor. Counts One, Two and Three each carry a maximum sentence of thirty years’ imprisonment and a mandatory minimum of fifteen years’ imprisonment. Count Four carries a maximum of twenty years’ imprisonment and a mandatory minimum of five years. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Clayton praised the efforts of Homeland Security Investigations, the Westchester County District Attorney’s Office, the Westchester County Police Department, the Eastchester Police Department, the Rockland Police Department, the Lake Forest Police Department, and the Cullman County Sheriff’s Office. 

The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.   

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JEREMY JORDAN-JONES, the self-styled “founder” of a purported technology company, with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft.  JORDAN-JONES was arrested today and is expected to be presented before U.S. Magistrate Judge Robert W. Lehrburger.  The case is assigned to U.S. District Judge Arun Subramanian.

“As alleged, Jordan-Jones, capitalizing on the publicity around blockchain technology, perpetrated a brazen scheme to defraud investors,” said U.S. Attorney Jay Clayton.  “He touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships. In reality, Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.  This should be an example to would be financial fraudsters that the women and men of the Southern District and the FBI are watching and to the investing public that fraudsters often use the promise of new technology to cloak their schemes.”

FBI Assistant Director in Charge Christopher G. Raia said: “Jeremy Jordan-Jones allegedly defrauded investors of more than one million dollars through misrepresentations of his purported company's capabilities, partnerships, and investment intentions. Jordan-Jones's alleged blatant lies funded his personal lifestyle at the expense of unknowing victims. The FBI is committed to apprehending any individual who employs deceitful tactics and illusionary business models to steal from trusted investors.”

As alleged in the Indictment unsealed today in Manhattan federal court:[1]

From at least in or about January 2021 through at least in or about November 2022, JORDAN-JONES engaged in a scheme to defraud investors in Amalgam Capital Ventures (“Amalgam”), a technology startup that purported to offer point-of-sale systems and blockchain-based payment and security solutions.  JORDAN-JONES misrepresented that Amalgam had developed functioning software products, falsely claimed that it had lucrative high-profile partnerships with major-league sports teams and prominent payment-processing platforms, and made misleading statements about Amalgam’s financial condition. In perpetrating his fraudulent scheme, JORDAN-JONES submitted falsified financial documents to a bank.  He also falsely represented to investors that their money would be used for listing a proprietary cryptocurrency coin on global cryptocurrency exchanges, as well as for hardware, software, and other expenses associated with the Amalgam’s operations.

All the while, JORDAN-JONES well knew that Amalgam had no operable products, few—if any—customers, and zero legitimate business partnerships.  Based on his materially false and fraudulent representations, JORDAN-JONES obtained over $1 million from investors and lenders, much of which he used for his personal benefit.  Ultimately, Amalgam ceased operations, and investors and lenders suffered significant financial losses.

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JORDAN-JONES is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; one count of false statements to a financial institution, which carries a maximum sentence of 30 years in prison; and one  count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

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

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.

The case is being prosecuted by the Office’s Securities and Commodities Task Force.   Assistant U.S. Attorney Marguerite B. Colson is in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation. 

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging business man and diamond dealer EDWARD CARLOS ST. MARY III with wire fraud in connection with his scheme to fraudulently obtain diamonds belonging to an international exporter and manufacturer of natural diamonds (the “Diamond Company”).  ST. MARY was arrested yesterday morning and was presented yesterday in the U.S. District Court for the Southern District of Texas.

“As alleged, Edward Carlos St. Mary orchestrated an international scheme to steal over $3 million of uncut diamonds,” said U.S. Attorney Jay Clayton.  “He falsified bank records and repeatedly lied to line his own pockets.  New York’s Diamond District is one of the world’s foremost destinations for the sale of precious gems, and this Office and its law enforcement partners are committed to ensuring both wholesale and retail buyers can engage in the market free from fraud.”

FBI Assistant Director in Charge Christopher G. Raia said: “Edward Carlos St. Mary allegedly unlawfully procured hundreds of carats of diamonds worth millions of dollars with fabricated documents and promises of payment that were never upheld. The defendant allegedly disrupted the operations of an international company, and utilized our city to do so. The FBI remains committed to investigating anyone who orchestrates illicit surreptitious schemes to enrich themselves.”

As alleged in the Complaint:[1]

In or about April 2021, ST. MARY met with the owner of the Diamond Company in India and agreed to purchase uncut diamonds from the Diamond Company.  Between in or about April 2021 and in or about June 2021, ST. MARY and the owner of the Diamond Company exchanged numerous messages regarding the sale of diamonds to ST. MARY.  They eventually agreed that ST. MARY would buy approximately 287 carats of diamonds (the “Diamonds”) from the Diamond Company for approximately $3.275 million.  During that time, ST. MARY sent fraudulent documents and made numerous misrepresentations to the owner of the Diamond Company regarding his communications with his bank (“Bank-1”), the funds in his accounts at Bank-1, and his ability to pay the Diamond Company for uncut diamonds. 

On or about June 11, 2021, the owner of the Diamond Company delivered the Diamonds to a company specializing in secure transportation and the handling of valuable goods (the “Security Company”) to transport the Diamonds to the U.S. and provide them to ST. MARY once he made the necessary payments.  The Diamonds arrived in the U.S. the following week.  After the Diamonds arrived in the U.S., ST. MARY made numerous false statements to the owner of the Diamond Company to explain why he had not yet paid for or picked up the Diamonds. 

On or about August 4, 2021, ST. MARY picked up the Diamonds from the Security Company’s New York City location—without paying for them and without the Diamond Company’s knowledge or authorization.  Thereafter, ST. MARY continued to make false statements to the owner of the Diamond Company to suggest that the Diamonds were still in the care of the Security Company and to provide various explanations for why he had not yet paid the Diamond Company.  By November 2021, ST. MARY began making false statements to suggest that he had, in fact, paid for the Diamonds and sent the owner of the Diamond Company a   fraudulent account statement purporting to show a wire transfer of over $3 million from ST. MARY to the Diamond Company.  No such wire transfer was ever made. 

On or about December 7, 2021, ST. MARY sent a message to the owner of the Diamond Company admitting that he had not paid for the Diamonds and falsely stating, in substance and in part, “this entire time my banker has told me that the funds were in your account. He assured me that you had already been paid.  I will have it done as quick as I possibly can.”  However, there are no records of ST. MARY communicating with anyone at Bank-1 about a payment for the Diamonds. 

To date, ST. MARY has neither paid for nor returned the Diamonds.

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ST. MARY, 55, of Houston, Texas, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. 

Mr. Clayton praised the outstanding work of the FBI on this case. 

This case is being handled by the Office’s General Crimes Division.  Assistant U.S. Attorneys Remy Grosbard and Ariana Bloom are in charge of the prosecution. 

[1] The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.   

The United States Attorney for the Southern District of New York announced today that RONALD BAUER was sentenced to 20 months in prison for manipulating seven different stocks in a “pump-and-dump” scheme designed to fraudulently inflate the value of BAUER’s own shares in those companies.  BAUER pled guilty on November 4, 2024, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.

“From overseas, Bauer manipulated stock prices to enrich himself at the expense of unsuspecting investors,” said U.S. Attorney Jay Clayton.  “Today’s sentencing sends a clear message:  those who seek to manipulate U.S. markets from outside the United States will face justice.  We thank our domestic and overseas partners and will continue to work with them to keep our markets fair.”

According to the Indictment, public filings, and statements made in court proceedings:

BAUER, a Canadian-UK citizen, orchestrated multiple “pump-and-dump” schemes after previously being sanctioned by the SEC in 2006, when he received a five-year ban from serving as an officer of public companies or participating in penny stock offerings.  In his guilty plea, BAUER admitted to securities fraud involving seven issuers. His sophisticated scheme involved gaining controlling interest of unrestricted stock, then concealing ownership by distributing shares among nominee entities through a Swiss corporation called Blacklight, S.A.  While maintaining behind-the-scenes trading authority and significant influence over company management, BAUER and his co-conspirators orchestrated purposeless “match trades” —i.e., placing buy and sell orders in the same stock on the same day—and funded promotional campaigns without disclosing their controlling interest or intent to sell. They took deliberate steps to hide that nominee entities were funding these promotions.  During or shortly after generating market interest, BAUER sold large percentages of holdings and collected the proceeds through the elaborate network of nominee entities he controlled.​​​​​​​​​​​​​​​​

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In addition to his prison term, BAUER, 49, of London, United Kingdom, was sentenced to three years of supervised release and ordered to forfeit approximately $4,377,228.74.

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation.  He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom, in particular the Crown Prosecution Service and the National Crime Agency’s National Extradition Unit.  Finally, Mr. Clayton also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against BAUER. 

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.   Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, and Vladislav Vainberg are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); and Lucy Lang, the Inspector General for the State of New York, announced today the unsealing of three Indictments charging one current and two former correction officers employed by the New York City Department of Correction (“DOC”) at Rikers Island with healthcare fraud, mail fraud, and false statements related to healthcare matters.  TODD FAUSTIN, JOVANNY CONCEPCION, and STEVEN MURPHY were arrested earlier today and presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.  Their cases are assigned to U.S. District Judges Loretta A. Preska and Lewis J. Liman.

U.S. Attorney Jay Clayton said: “As alleged, the defendants defrauded New Yorkers by making hundreds of thousands of dollars in fraudulent workers compensation claims.  Today’s arrests demonstrate this Office’s continuing commitment to protecting New Yorkers from corruption at Rikers Island.”

DOI Commissioner Jocelyn E. Strauber said: “New York City’s workers’ compensation system is a vital resource for City employees injured on the job.  These three current and former Department of Correction officers, as charged, defrauded that system of almost $1 million in total, through false claims about physical injuries.  To reduce the risk of future fraud, DOI recommends reforms to the DOC and the New York City Law Department’s policies and procedures, set forth in a report issued today.  I thank the Law Department for referring concerns about workers’ compensation claims to DOI, and for its assistance in this investigation.  I also thank the U.S. Attorney’s Office for the Southern District of New York and our other law enforcement partners for their continuing commitment to protect City funds.”

New York State Inspector General Lucy Lang said: “Public trust in government requires that law enforcement acts with the utmost integrity. Lying about an ongoing injury to get workers’ compensation benefits while engaging in strenuous employment and activities, as alleged here, is an affront to the honest workers whom the system is built to protect.  With thanks in this case to our partnership with the Southern District of New York and the NYC Department of Investigation, we will continue to seek accountability for anyone who undermines New Yorkers’ trust by defrauding the workers’ compensation system.”

As alleged in the Indictments:1

The New York State Worker’s Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including DOC employees.  Payments by the Board made to DOC employees are paid from the New York City Treasury.  For years, FAUSTIN, a current DOC employee, and CONCEPCION and MURPHY, who were both formally employed by DOC, were  DOC correction officers assigned to work at Rikers Island.  During that time period, each defendant engaged in a years-long scheme to falsely claim that they were injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force. To effectuate this scheme, each defendant made false statements to the Board, their own physicians, and independent medical examiners claiming these fake injuries.  In total, FAUSTIN received $469,705.39 in benefits to which he was not entitled; CONCEPCION received $232,427.97; and MURPHY received $294,037.83.

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CONCEPCION, 33, of New York, New York, is charged with one count of healthcare fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.

MURPHY, 31, of New York, New York, is charged with one count of healthcare fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.

FAUSTIN, 43, of New York, New York, is charged with one count of healthcare fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of DOI, the New York State Office of Inspector General, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.  Mr. Clayton also thanked the New York City Police Department’s Internal Affairs Bureau and New York State Police for its cooperation and assistance.

The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division and the Public Corruption Unit.  Assistant U.S. Attorneys Kaiya Arroyo, Frank Balsamello, and Alexie Rothman are in charge of the prosecution.

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

1 As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York, and Frank A. Tarentino, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced today the presentment of PEDRO MARTE in White Plains federal court on a Complaint charging MARTE with two counts of possession with intent to distribute controlled substances. 

U.S. Attorney Jay Clayton said: “As alleged, Pedro Marte turned a New Rochelle hotel room into a dangerous drug lab.  A law enforcement investigation revealed that Marte possessed large quantities of cocaine, and deadly fentanyl.  We should all be able to stay in a hotel without worrying about exposure to dangerous and potentially lethal drug trafficking.  The Women and Men of the Southern District, together with our law enforcement partners, will do everything in our power to protect our community from those who put innocent lives at risk.”

DEA Special Agent in Charge Frank A. Tarentino said: “Pedro Marte’s use of his hotel room as a clandestine drug lab not only placed the lives of innocent guests in danger but was reckless and unconscionable.  We are thankful to our law enforcement partners and our first responders for their quick actions.  Without their immediate response, the results could have been catastrophic.” 

As alleged in the Complaint:[1] 

On or about the evening of April 6, 2025, law enforcement and fire department personnel responded to reports of an incident in a hotel in New Rochelle. Upon entering the hotel, they observed damage to 27 rooms.  Law enforcement then entered the room where the hotel’s sprinkler systems had first been activated and observed evidence of a significant fire, as well as equipment and materials consistent with a clandestine drug lab for converting powder cocaine into crack cocaine.  After determining that MARTE had rented the room in question, law enforcement officers searched the storage locker that MARTE had visited immediately prior to arriving at the Residence Inn, where they found approximately three kilograms of a substance that tested positive for cocaine, 12.2 grams of a substance that tested positive for fentanyl, and drug distribution paraphernalia.

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MARTE, 47, of New York, New York, is charged with one count of possession with intent to distribute cocaine, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison, and one count of possession with intent to distribute fentanyl, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the DEA, the New Rochelle Police Department, and the New Rochelle Fire Department. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Carmi Schickler is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that SKYE XU was sentenced to two years in prison by U.S. District Judge Jesse M. Furman for his part in a scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of more than $32 million dollars in revenue.  XU previously pled guilty to conspiracy to commit wire fraud and honest services wire fraud, wire fraud, and conspiracy to commit money laundering.

U.S. Attorney Jay Clayton said: “During the COVID-19 pandemic, Skye Xu paid approximately $4.4 million in kickbacks to Polar executives to obtain highly lucrative business from Polar.  The Polar executives concealed the kickbacks from Polar using shell companies.  Corruption of this type has costs that extend way beyond Polar’s or any one company’s bottom line. Today’s sentence should be a reminder that commercial bribery has no place in America.

According to the charging documents and other public filings and statements made in public court proceedings:

From at least in or about November 2020 through in or about July 2021, XU operated Sky X Airlines, LLC, a cargo airline company based in California. During those nine months, and without Polar’s knowledge, XU paid approximately $4.4 million in kickbacks to shell companies controlled by three senior executives of Polar (the “Executive Defendants”) in exchange for two lucrative business contracts with Polar. These fraudulently obtained contracts earned XU and his cargo airline approximately $46 million in gross revenue and nearly $10 million in net revenue based on the sales of unused space on passenger airlines to transport cargo during the COVID-19 pandemic.

The approximately $4.4 million in kickbacks that XU paid to the Executive Defendants in a nine-month span was part of more than $20 million in kickbacks and other financial benefits that the Executive Defendants and other co-conspirators received from certain Polar customers and vendors from at least 2009 to at least 2021 in exchange for ensuring that those vendors and customers received favorable business arrangements with Polar.  The fraud that XU and his coconspirators perpetrated—which involved a substantial portion of Polar’s senior management and at least ten customers and vendors of Polar—led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade.

XU was the last of 10 defendants charged in this case to be convicted. Five of the 10 charged defendants have previously been sentenced.

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In addition to the prison term, XU, 43, of West Covina, California, was sentenced to three years of supervised release.  XU was also ordered to forfeit $4,487,830 and to make restitution to Polar in the amount of $1,390,000. 

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla, Kevin Mead, Qais Ghafary, and Jerry J. Fang are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that ANTHONY SACCAVINO was sentenced to 36 months in prison for participating in a conspiracy to solicit and receive bribes in his role as the Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”).  SACCAVINO previously pled guilty on January 29, 2025, before U.S. District Judge Lewis J. Liman, who also imposed today’s sentence.

U.S. Attorney Jay Clayton said: “Anthony Saccavino undermined the New York City Fire Department, an institution he swore to serve. Chief Saccavino led a pay-to-play bribery scheme that would offend the sensibilities of every hard-working New Yorker. Public officials who violate the public trust for financial gain will be pursued vigorously by our Office and our law enforcement partners.”

According to the Indictment, plea agreement, and statements made in court:

From 2021 to 2023, SACCAVINO was the leader of a conspiracy to solicit and receive $190,000 in total bribe payments from a former FDNY firefighter named Henry Santiago, Jr. In exchange for those bribe payments, SACCAVINO and another high-ranking official at the FDNY, Brian Cordasco, used their authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers.  SACCAVINO personally profited $57,000 as part of this scheme.  To carry out this conspiracy, SACCAVINO lied to his BFP subordinates to justify otherwise improper expediting requests.  SACCAVINO also lied to law enforcement when interviewed about his involvement in the scheme.

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If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact squad6complaint@doi.nyc.gov or (212) 825-2402. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

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In addition to the prison term, SACCAVINO, 61, of New York, New York, was sentenced to two years of supervised release and ordered to pay forfeiture of $57,000 and a fine of $150,000.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.

The prosecution of this case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.

The Court’s findings and appointment of a remediation manager are a welcomed and much needed milestone.  Rikers is not working, for its over 7,000 people in custody, the correction officers and staff who work there, or the people of New York.  The Constitutional rights of people in custody are not being protected.  The Court’s order provides the manager with broad authority, requires consultation and cooperation between the manager and the Commissioner of the Department of Correction, and, importantly, requires the development of a benchmarked plan for improvement and returning authority to the City.  The women and men of the Southern District stand ready to work with the Court Monitor, the new manager, and the Commissioner to finally achieve sustainable and lasting reform of the City’s jail system. 

nunez_opinion.pdf

Jay Clayton, the United States Attorney for the Southern District of New York, announced that LUIS FILPO was sentenced today to 25 years in prison for murdering 24-year-old Roberto Vasquez, an innocent bystander who was mistaken for a gang rival.  FILPO previously pled guilty to conspiracy to commit murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering.  U.S. District Judge Paul A. Engelmayer imposed today’s sentence which was imposed to run consecutively to a state sentence the defendant is serving.

U.S. Attorney Jay Clayton said: “Luis Filpo walked up to a car and opened fire, killing Vasquez and wounding another occupant.  What makes this brazen and senseless crime even more tragic is that Filpo wrongly believed Vasquez was a gang rival. Thanks to the hard work of the women and men of the Office and our law enforcement partners, Filpo will be held accountable for his crimes, and gang members are on notice that combatting gang-related crime is a priority of Federal law enforcement.”  

As detailed in public filings and public court proceedings:

From at least 2016 through March 2020, FILPO was a member of “the 200s,” a street gang based in the Inwood neighborhood of Manhattan.  In order to fund the gang, protect its territory, and promote its standing, members of the 200s engaged in, among other things, narcotics trafficking and other acts of violence, including murder.  Members of the 200s sold narcotics in the gang’s territory and engaged in shootings as part of their gang membership.

On January 31, 2019, FILPO saw Vasquez and believed he was a gang rival, even though Vasquez was not.  FILPO and other 200s gang members followed a car in which Vasquez was a passenger. When Vasquez’s vehicle parked, FILPO walked up to the car and opened fire, killing Vasquez and wounding another occupant in the car.  Vasquez was 24 years old.

In imposing the sentence, Judge Engelmayer remarked that FILPO’s crime was “as serious as it gets,” adding that FILPO made himself “judge, jury, and executioner.”

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In addition to his prison term, FILPO, 25, of New York, New York, was sentenced to three years of supervised release. 

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Mathew S. Andrews, Frank J. Balsamello, Patrick R. Moroney, and Thomas J. Wright are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, and Edward Gallashaw, the Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced today the filing of an Information charging BARRY BREEMAN with engaging in a scheme to defraud investors who believed they were investing in real estate developments.  BREEMAN also entered a guilty plea to the Information in a proceeding today before U.S. Magistrate Judge Stewart D. Aaron.  The case has been assigned to U.S. District Judge Gregory H. Woods.  

U.S. Attorney Jay Clayton said: “As he admitted today in federal court, Barry Breeman stole more than $13 million dollars from dozens of investors. He falsely represented to investors that they were investing in valuable real estate projects, but in reality, Breeman had no connection to these investments and pocketed their money.  Breeman’s conduct has led to his conviction, and he now faces serious time in federal prison for his fraud scheme.”

USPIS Acting Inspector in Charge Edward Gallashaw said: “Investors placed their trust in Breeman, who devised a scheme to mislead and defraud investors out of more than $13 million.  His arrest demonstrates that the U.S. Postal Inspection Service is dedicated to investigating fraud and bringing to justice those who break the rule of law.”

According to the allegations contained in the Information:

From at least in or about 2018, up to and including at least in or about 2024, BREEMAN solicited investments in various real estate projects through false and misleading statements and then misappropriated investor funds by diverting them for personal use.

For years, BREEMAN worked as a real estate developer specializing in projects in Latin America.  In or about 2018, after suffering a professional setback in his legitimate real estate business, BREEMAN began to solicit investments in sham real estate projects to make up for the loss of income in his legitimate business.  In particular, BREEMAN encouraged prospective investors to buy limited partnership interests in certain Latin American real estate deals by sending them promotional photographs, prospectuses, and business projections and by promising quarterly distributions. BREEMAN, however, fabricated these investment opportunities and, in fact, often had neither a connection to the projects he promoted nor authority to sell partnership interests in them.

When investors did send BREEMAN money, he applied their funds to personal expenses, among other things, and did not use investor funds to develop the real estate projects he had described.  BREEMAN obtained more than $13 million from approximately 30 investors during the course of his fraud scheme.

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BREEMAN, 75, of Tuxedo Park, New York, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the outstanding work of the USPIS. 

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest and filing of a criminal complaint charging DAVID MORRIS with trafficking 47 firearms and numerous rounds of ammunition from Georgia to Lower Manhattan.  MORRIS was arrested earlier today while following the sale of 17 firearms and cocaine to undercover officers.  The defendant is expected to be presented this afternoon before U.S. Magistrate Judge Stewart D. Aaron.

U.S. Attorney Jay Clayton said: “As alleged, David Morris illegally trafficked dangerous drugs and 47 firearms from Georgia to New York City.  The unchecked flow of illegal firearms is a threat to every New Yorker.  Anyone who is thinking about illegally trafficking guns to New York City should know that our Office and our law enforcement partners are watching, and we will hold you accountable for jeopardizing the safety of our streets.”

ATF Special Agent in Charge Bryan Miller said: “Today’s arrest serves as a notice to those who think they are above the law and can illegally traffic guns into our communities.  The men and women of ATF NY will never waver in our commitment to protect the public and to aggressively target firearms traffickers.  I thank our partners at NYPD and SDNY for their diligent work and tireless dedication to our shared public safety mission.”

NYPD Commissioner Jessica S. Tisch said: “David Morris trafficked illegal firearms, ammunition, and narcotics into our city—but our brave officers were one step ahead, stopping these weapons and drugs from ever reaching the streets.  Gun traffickers fuel violence in our communities, and the NYPD will never stop working to shut down these pipelines.  I’m grateful to the ATF and the U.S. Attorney’s Office for their partnership in this critical case.”

According to the allegations contained in the Complaint:

On or about March 28, April 18, and May 9, 2025, MORRIS sold 47 firearms and numerous rounds of ammunition to undercover law enforcement officers with the New York City Police Department in the vicinity of Catherine Slip and South Street in Lower Manhattan.  MORRIS transported the firearms from Georgia and stated that he works with a team of other individuals in Georgia, has been selling firearms for approximately ten years, and has access to machine gun conversion devices, which are used to convert semiautomatic pistols into fully automatic weapons.

MORRIS also trafficked narcotics to the undercover officers on or about April 18 and May 9, 2025. On or about April 18, MORRIS provided one of the undercover law enforcement officers a “sample” of a substance that contained cocaine.  On or about May 9, MORRIS sold to one of the undercover officers’ plastic baggies of white powder consistent with, and that MORRIS represented to be, cocaine.  A photograph of the contraband seized from MORRIS is depicted below:

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MORRIS, 31, of Georgia, is charged with one count of unlicensed dealing of firearms, which carries a maximum sentence of five years in prison; one count of firearms trafficking, which carries a maximum sentence of 15 years in prison; and one count of using and carrying a firearm in furtherance of drug trafficking, which carries a maximum sentence of life and a mandatory minimum of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the ATF and the NYPD’s Joint Firearms Task Force and the 5th Precinct’s Field Intelligence Office.

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

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorney Kathryn Wheelock is in charge of the prosecution.

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

Jay Clayton, the United States Attorney for the Southern District of New York; Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging NASIA CARSON, a/k/a “Nas,” ELIJAH SANTIAGO, a/k/a “Eli,” and PHILIP MOSCA, a/k/a “90,” with participating in a racketeering conspiracy involving a Bronx-based gang known as “Feva” and committing multiple violent crimes in aid of racketeering, including the murder of a 21-year-old named Jesse Bynum on April 12, 2022.  CARSON and MOSCA were previously taken into custody on related charges, and SANTIAGO was arrested earlier today.  All three defendants are expected to be presented before U.S. Magistrate Judge Valerie Figueredo.  The case is assigned to U.S. District Judge Victor Marrero.

U.S. Attorney Jay Clayton said: “As alleged, these three defendants brutally murdered 21-year-old Jesse Bynum, and left three others seriously wounded.  New York families should not have to live in fear of gang-motivated violence.  The women and men of the Southern District and our law enforcement partners are committed to holding accountable those who terrorize our communities with gang-motivated violence.  We hope that commitment and the charges brought today bring some measure of comfort to the family of Jesse Bynum and others who have suffered needless losses from gang-motivated crimes.”

FBI Assistant Director in Charge Christopher G. Raia said: "These three Feva gang members allegedly engaged in violence to retaliate against their rivals, including firing a gun into a crowded street and killing Jesse Bynum. The defendants’ alleged relentless attempts to fuel a feud with a rival cost the life of a bystander caught in the crosshairs. With our law enforcement partners, the FBI remains committed to protecting our city from unnecessary gun violence and murders." 

NYPD Commissioner Jessica S. Tisch said: "These three individuals allegedly carried out a cold-blooded shooting that killed a 21-year-old New Yorker and seriously injured three others. They showed no regard for human life, and their senseless act of violence has no place in our city. We are committed to identifying and dismantling the street gangs threatening the safety of our communities. I want to thank the NYPD investigators and our partners at the FBI and the U.S. Attorney’s Office for their tireless work to bring them to justice.”

As alleged in the Indictment unsealed today in Manhattan federal court:[1]

From at least in or about 2022, through at least in or about 2023, CARSON, SANTIAGO, and MOSCA were members and associates of a criminal organization known as Feva that operated principally in the vicinity of the Pelham Parkway Houses and 2250 Wallace Avenue in the Bronx, New York.  Members and associates of Feva engaged in, among other activities, drug trafficking, acts involving murder, attempted murder, and assault.

On or about April 12, 2022, CARSON, SANTIAGO, and MOSCA shot into a small crowd of people gathered on a street in an attempt to retaliate against a rival gang.  The shooting resulted in the murder of 21-year-old Bynum, and serious physical injury to three others.

If you believe that you have additional information about this murder, please contact the U.S. Attorney’s Office for the Southern District of New York at 1-866-874-8900 and reference this case.

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A chart containing the names, ages, charges, and maximum penalties against the defendants is set forth below.

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

Mr. Clayton praised the outstanding investigative work of the FBI and the NYPD.

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

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Ni Qian, Marguerite B. Colson, and Brandon D. Harper are in charge of the prosecution.

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

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

Racketeering conspiracy

18 U.S.C. § 1962(d)

NASIA CARSON, a/k/a “Nas,” 21;

ELIJAH SANTIAGO, a/k/a “Eli,” 22;

PHILIP MOSACA, a/k/a “90,” 22;

(“All Defendants”)

Murder in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

Attempted murder and assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3), (a)(5), and 2

Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence

18 U.S.C. §§ 924(c) and 2

Life in prison

Mandatory minimum sentence of 10 years in prison

Attempted murder and assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3), (a)(5), and 2

Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence

18 U.S.C. §§ 924(c) and 2

Life in prison

Mandatory minimum sentence of 10 years in prison

Assault with a dangerous weapon and assault in aid of racketeering

18 U.S.C. §§ 1959(a)(3), (a)(5), and 2

Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence

18 U.S.C. §§ 924(c) and 2

Life in prison

Mandatory minimum sentence of 10 years in prison

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation. 

Jay Clayton, the United States Attorney for the Southern District of New York, announced the convictions at trial yesterday of JOWENKY NUNEZ, JR., a/k/a “Juju,” BRIAN HERNANDEZ, a/k/a “Malikai,” and IYAURY RODRIGUEZ-ROSARIO, a/k/a “Bricha,” for their roles as members of the violent gang Own Every Dollar (“OED”), including four murders and 10 attempted murders.  NUNEZ, HERNANDEZ, and RODRIGUEZ-ROSARIO were convicted by a jury of 25 counts after a five-week trial before U.S. District Judge J. Paul Oetken.

U.S. Attorney Jay Clayton said: “Jowenky Nunez, Jr. murdered Nicolas Vargas and Hector Cruz, and all three defendants murdered Richard Dominguez and Israel Cabrera. Nunez, Hernandez, Rodriguez-Rosario, and other members of OED tried to murder many others.  Public safety is one of our top priorities, and thanks to the career prosecutors of my office and our law enforcement partners, these three men have been held accountable for their senseless violence.  I hope this verdict brings some measure of consolation to the victims and their families.”

As alleged in the Indictment and statements made in public filings and public court proceedings:

NUNEZ is a leader of the violent gang OED, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan.  HERNANDEZ and RODRIGUEZ-ROSARIO are members of OED as well.  The Indictments in this case charge 24 members and associates of OED with numerous violent crimes, including five murders and 15 attempted murders.

On August 31, 2018, NUNEZ shot Nicolas Vargas in the head and killed him near an IHOP at 232nd Street in the Bronx.

On April 14, 2019, NUNEZ and other OED members drove to West 135th Street in Manhattan to shoot at members of a rival gang.  They shot at a rival gang member on West 135th Street and Amsterdam Avenue, but missed and instead struck bystander Hector Cruz—then age 57—in the liver.  Cruz died of the gunshot wound approximately one month later.

On July 2, 2020, NUNEZ, HERNANDEZ, and RODRIGUEZ-ROSARIO committed an execution-style double murder of Richard Dominguez and Israel Cabrera near Sedgewick Avenue in the Bronx, shooting both victims in the head from the backseat of a parked car.

NUNEZ also committed nine other attempted murders, including a stabbing at the Metropolitan Detention Center in Brooklyn, New York, while he was facing charges in this case. HERNANDEZ committed three attempted murders, and RODRIGUEZ-ROSARIO committed two attempted murders.  Several of NUNEZ’s attempted murders were captured on video, including the following:   

March 30, 2020 Shooting

March 4, 2022 Shooting

All three defendants were also convicted of conspiring to traffic narcotics, including large amounts of fentanyl and heroin, and NUNEZ and RODRIGUEZ-ROSARIO were convicted of transporting guns from Pennsylvania to New York.

17 other OED defendants have previously pled guilty in the case, including MAYOVANEX RODRIGUEZ, a/k/a “Menorcito,” who was sentenced to a 25-year term of imprisonment for a 2022 murder; JERRIN PENA, a/k/a “Rooga,” a/k/a “Perry, who was sentenced to a 20-year term of imprisonment for the 2019 murder of Hector Cruz; and HUGO RODRIGUEZ, a/k/a “Juice,” the current “Duarte,” or leader, of OED.

A trial against defendants JESUS ZAPATA, a/k/a “Jeezy” and BRAYAN LLORET, a/k/a “ET,” two leaders of OED who committed multiple stabbings and slashings at Rikers Island, is scheduled for October 6, 2025.  A trial against defendant JOWENKY NUNEZ SR., a/k/a “Bala,” a leader of the gang and the father of NUNEZ, is scheduled for February 2, 2026.

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NUNEZ, 22, of New York, New York, HERNANDEZ, 25, of New York, New York, and RODRIGUEZ-ROSARIO, 43, of Reading, Pennsylvania, were convicted of 25 total counts, and are each subject to mandatory terms of life in prison.  A chart summarizing the counts of conviction and potential penalties is below:

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

Mr. Clayton praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.  Mr. Clayton also thanked the Manhattan District Attorney’s Office, the Bronx District Attorney’s Office, the Office of the Special Narcotics Prosecutor, the New York State Police, and the NYPD Task Force Officers assigned to this Office for their assistance in the investigation.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Sarah L. Kushner, Kevin Mead, Alexandra S. Messiter, and Ashley C. Nicolas are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that ALEXANDER MASHINSKY, the founder and former Chief Executive Officer of Celsius Network LLC and their affiliated entities (collectively, “Celsius”), was sentenced to 12 years for committing commodities fraud and securities fraud at Celsius.  MASHINSKY previously pled guilty on December 3, 2024, before U.S. District Judge John G. Koeltl, who imposed today’s sentence.

U.S. Attorney Jay Clayton said: “Alexander Mashinsky targeted retail investors with promises that he would keep their “digital assets” safer than a bank, when in fact he used those assets to place risky bets and to line his own pockets.  In the end, Mashinsky made tens of millions of dollars while his customers lost billions.  America’s investors deserve better.  The case for tokenization and the use of digital assets is strong but it is not a license to deceive.  The rules against fraud still apply, and the SDNY will hold those who flout them accountable for their crimes.”

According to the allegations contained in the Indictment and statements made in public filings and in public court proceedings:

Celsius, a crypto asset platform, offered customers “rewards” on deposited assets, secured loans, and custody services.  Marketing itself as the “safest place for your crypto,” Celsius encouraged customers to “unbank” themselves by transferring crypto assets to its platform.  Celsius’s primary offering, “Earn” program, promised to deploy customer assets to generate investment returns.  Celsius also provided “Custody” and “Borrow” programs, the latter allowing customers to obtain loans by posting crypto assets as collateral.  MASHINSKY, as CEO, directly marketed Celsius to retail customers globally.  Throughout his tenure, he repeatedly misrepresented key aspects of Celsius’s business and finances to attract customers and retain their assets.  His false claims covered the safety of Celsius’s yield-generating activities, its profitability, the sustainability of high rewards rates, and the risks associated with depositing crypto assets on the platform.  As MASHINSKY portrayed Celsius as secure, the platform grew exponentially.  By the fall of 2021, Celsius had become one of the largest crypto platforms in the world, holding approximately $25 billion in assets at its peak.

MASHINSKY and others orchestrated a yearslong scheme to mislead customers about Celsius’s proprietary crypto token CEL.  They manipulated CEL’s price by spending hundreds of millions purchasing it on the open market to artificially inflate its value.  At times, they used customer deposits to fund these market purchases, without disclosing that to customers.  Without aggressive manipulation, CEL’s price would have been significantly lower.  As Roni Cohen-Pavon, Celsius’s Chief Revenue Officer who later pled guilty to illegally manipulating CEL’s price, privately told MASHINSKY, “the value was fake and was based on us spending millions.”

To further the manipulation scheme, MASHINSKY repeatedly made false public statements about Celsius’s market activity and role in supporting and inflating CEL’s.  In some instances, MASHINSKY and other executives personally purchased CEL to artificially support its value.  The artificial price inflation allowed MASHINSKY to profit approximately $48 million from his own sales of CEL.  He publicly claimed he was not selling CEL, while actually selling large quantities, sometimes to Celsius itself.

Before Celsius halted customer withdrawals on June 12, 2022, MASHINSKY continued assuring customers of Celsius’s strong financial position and liquidity.  Meanwhile, he withdrew $8 million worth of his own non-CEL assets from Celsius.  When Celsius announced it was halting customer withdrawals, hundreds of thousands of Celsius customers had $4.7 billion in inaccessible assets on the platform.  Celsius filed for bankruptcy on July 13, 2022.

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In addition to the prison term, MASHINSKY, 59, of New York, New York, was sentenced to three years of supervised release and ordered to pay a $50,000 fine and forfeiture of $48,393,446.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, each of which has filed a parallel civil action.

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Peter J. Davis, Adam S. Hobson, and Allison Nichols are in charge of the prosecution.

Today, a jury held three violent members of a Manhattan-based gang, “Own Every Dollar,” or OED, responsible for four murders, 10 attempted murders, drug trafficking, and gun running.  Gang violence is a plague on our city, and today’s convictions make clear that rival gang members are not the only victims.  All too often, innocent bystanders are caught in the crossfire, and entire communities are terrorized by gangs, guns, and deadly drugs.  This prosecution, in which 24 members of OED have been charged with committing senseless acts of violence, is a testament to the commitment of the Federal Government, this Office, and our law enforcement partners to ending the gang and gun violence that has kept New Yorkers in fear for far too long.  Because of the excellent work of our prosecutors and partners, Jowenky Nunez, Jr., Brian Hernandez, and Iyaury Rodriguez-Rosario face mandatory life sentences.  They will never again terrorize this city.  Other gang members are on notice.

Jay Clayton, the United States Attorney for the Southern District of New York, announced that ELIJAH BERMUDEZ, a/k/a “Quiet,” was sentenced today by U.S. District Judge Nelson S. Román to 34 years in prison in connection with his criminal activities as a member of the violent gang Bully Hard Hunna Blood (“Bully Hard”) for racketeering and firearms offenses.  As part of his participation in the Bully Hard racketeering conspiracy, on June 20, 2020, BERMUDEZ stabbed a teenager and shot and killed a second teenager: 16-year-old bystander Frederick Wells, known to his friends and family as “Khabir.”  BERMUDEZ’s murder of Wells arose out of a dispute between Bully Hard gang members and members of a rival set of Bloods called the Untouchable Gorilla Stone Nation (“Gorilla Stone”), which led to, three months later, a retaliatory September 21, 2020, broad daylight murder of a second minor victim, 15-year-old Jalani Jones, in Poughkeepsie.  Previously, Gorilla Stone leader Brandon Soto was convicted and sentenced to 35 years in prison for his role in planning and ordering the retaliatory September 21, 2020, murder of Jones.  BERMUDEZ previously pled guilty on July 9, 2024, before Judge Román.  

U.S. Attorney Jay Clayton said: “Elijah Bermudez murdered Frederick Wells, an innocent 16-year-old bystander who spent his last moments running for his life, trying to escape Bermudez’s gunfire.  Tragically, Wells lost his life for simply being at the wrong place at the wrong time.  Today’s significant sentence holds Bermudez accountable for this senseless murder, as well as for his participation in the wide range of crimes committed by the Bully Hard gang, including Bermudez’s stabbing of a second teenage victim.  Together with our law enforcement partners, we will continue to relentlessly pursue any gangs who threaten the safety of New Yorkers.”

According to allegations in the Indictment and Information and statements made in public filings and public court proceedings:

From early 2020 to April 2022, BERMUDEZ was a member or associate of a racketeering enterprise known as Bully Hard, a criminal organization whose members and associates engaged in, among other things, murder, robberies, narcotics trafficking, and fraud.  Bully Hard operated in New York City and Upstate New York, including in Poughkeepsie.  Members and associates of Bully Hard engaged in a series of violent disputes with rivals, as well as those within Bully Hard who they deemed disloyal.  During these disputes, members and associates of Bully Hard committed murder, shootings, and assaults against their rivals.  They also distributed heroin and marijuana.

On June 20, 2020, BERMUDEZ shot and killed 16-year-old bystander Wells in the vicinity of Charles Street in Poughkeepsie in furtherance of his membership in the Bully Hard racketeering enterprise.  Specifically, on the night of June 20, 2020, BERMUDEZ and another member of Bully Hard (“Bully Hard Member-1”) got into a physical fight with members of Gorilla Stone, a rival set of Bloods.  During the fight, Bully Hard Member-1 confronted a 17-year-old Gorilla Stone member (“Gorilla Stone Member-1”).  At the time, Gorilla Stone Member-1 was standing with Wells, who was Gorilla Stone Member-1’s friend from school, was not in a gang, and was a bystander to the altercation.  BERMUDEZ then stabbed Gorilla Stone Member-1, picked up Bully Hard Member-1’s gun, which had dropped to the ground, and shot Wells as Wells tried to run away.   Wells was found dead with a gunshot wound to his head. 

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In addition to the prison term, BERMUDEZ, 32, of New York, New York, was sentenced to three years of supervised release.  On July 9, 2024, BERMUDEZ pled guilty to one count of racketeering conspiracy, one count of being a felon in possession of ammunition, and one count of conspiracy to possess ammunition after a felony conviction.

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation Westchester County Safe Streets Task Force.  Mr. Clayton also thanked the City of Poughkeepsie Police Department and Dutchess County District Attorney’s Office for their assistance in the case.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys David R. Felton, Courtney L. Heavey, Shiva H. Logarajah, and Kevin T. Sullivan are in charge of the prosecution.

An indictment was unsealed today in the Southern District of New York charging Tarek Bazrouk 20, of New York, New York, with three counts of committing hate crimes in connection with his repeated assaults of Jewish victims in New York City between 2024 and 2025. Bazrouk was arrested this morning and will be presented later today before U.S. Magistrate Judge Stewart D. Aaron. The case is assigned to U.S. District Judge Richard M. Berman.

“The Civil Rights Division will continue to relentlessly pursue allegations of antisemitic violence and will not stop until justice is served for the victims and their families,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Under Attorney General Pam Bondi’s leadership, we will use all available resources to investigate and charge those who target and assault others because of their faith.”

“As alleged, on three separate occasions, Tarek Bazrouk deliberately targeted and assaulted Jewish victims at protests relating to the Israel/Gaza war,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Despite being arrested after each incident, Bazrouk allegedly remained undeterred and quickly returned to using violence to target Jews in New York City. This Office is dedicated to seeking justice for victims of hate crimes and will aggressively prosecute those who spread bigotry and discrimination through violence.”

According to court documents, other public filings, and statements previously made on the record in this case, over the course of approximately nine months, Bazrouk physically assaulted three Jewish individuals at protests concerning the Israel/Gaza war. First, on April 15, 2024, Bazrouk — while wearing a green headband typically worn by Hamas terrorists — attended a protest concerning the Israel/Gaza war in Lower Manhattan, outside the New York Stock Exchange.  During the protest, Bazrouk was arrested by officers from the New York City Police Department (NYPD) after lunging at a group of pro-Israel protestors. As Bazrouk was being escorted to an NYPD vehicle, Bazrouk kicked a different individual — Victim-1, a Jewish college student — in the stomach. At the time of the assault, Victim-1 was standing near other Jewish protestors, who were wearing kippahs (that is, brimless skullcaps traditionally worn by Jewish men), carrying Israeli flags, and singing Jewish songs.

Approximately eight months later, on Dec. 9, 2024, Bazrouk assaulted another individual at a protest relating to the Israel/Gaza war next to a university campus in upper Manhattan. The victim of the second assault — Victim-2 — is a Jewish student who attended the nearby university. On the date of the assault, Victim-2 and his brother were wearing kippahs, Victim-2 had an Israeli flag draped around his shoulders, and Victim-2 was singing Jewish songs. As the protest continued, Bazrouk — with his mouth covered — stole an Israeli flag from Victim-2’s brother and fled. After Victim-2 and his brother followed Bazrouk through a crowd to retrieve the flag, Bazrouk snuck up beside Victim-2 and struck him in the face with a closed fist.

Roughly one month later, on Jan. 6, 2025, Bazrouk assaulted a third Jewish victim — Victim-3 — at a protest concerning the Israel/Gaza war near 1st Avenue and East 18th Street in Manhattan. At this protest, Victim-3 was wearing an Israeli flag around his shoulders, a hat with an Israeli flag, and a chain with a Jewish star. During the protest, Bazrouk, who was wearing a keffiyeh on his face, made contact with Victim-3’s shoulder and wrapped his foot around Victim-3’s ankle.  Victim-3 attempted to push BAZROUK away and cursed at him. Bazrouk then punched Victim-3 in the nose with a closed fist.

“Over the course of nine months, Tarek Bazrouk allegedly targeted and violently attacked multiple Jewish victims in a series of physical assaults, while demonstrating a pattern of supporting anti-Semitic terrorist organizations,” said Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office. “These alleged hate crimes not only violated the victims’ ability to exercise their first amendment rights, but also intimidated and sparked fear among a broader population. The FBI won’t tolerate this behavior and will apprehend any individual who commits a federal crime seeking to harm others for their religious beliefs.”

“As alleged, Tarek Bazrouk deliberately set out to harm Jewish New Yorkers — targeting them at protests, singling them out, and assaulting them for nothing more than their identity,” said NYPD Commissioner Jessica S. Tisch. “The NYPD worked closely with the FBI and the U.S. Attorney’s Office to track him down and ensure he faces real consequences. Antisemitism and all forms of bigotry have no home here in New York — period. New Yorkers of all faiths are welcome to live and worship in our city freely, and we will never stop fighting to protect that right.”

According to court documents, pursuant to judicially authorized warrants, law enforcement subsequently searched a cellphone used by Bazrouk. Evidence from that device revealed Bazrouk’s anti-Semitic bias and his support for anti-Jewish terrorist groups including Hamas, demonstrating his motivation for repeatedly assaulting Jewish victims. In text messages, for example, Bazrouk identified himself as a “Jew hater,” labeled Jews as “worthless,” extorted “Allah” to “get us rid of [Jews],” called an acquittance a “Fucking Jew,” and told a friend to “slap that bitch” in reference to a woman with an Israeli sticker on her laptop. Bazrouk also told a friend that he was “mad happy” to have learned that certain of his family members overseas are part of Hamas. Bazrouk’s phone was also littered with pro-Hamas and pro-Hizballah propaganda, showing his support for organizations that have murdered thousands of Jews and Israelis.

Bazrouk is charged with three counts of committing hate crimes, each of which carries a maximum penalty of 10 years in prison.

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

U.S. Attorney Jay Clayton for the Southern District of New York praised the outstanding investigative work of the FBI and thanked the Manhattan District Attorney’s Office and the NYPD for their assistance.

The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Sam Adelsberg and Jim Ligtenberg for the Southern District of New York are in charge of the prosecution.

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

Jay Clayton, the United States Attorney for the Southern District of New York; Harmeet K. Dhillon, the Assistant Attorney General of the United States; Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging TAREK BAZROUK with three counts of committing hate crimes in connection with his repeated assaults of Jewish victims in New York City between 2024 and 2025.  BAZROUK was arrested this morning and will be presented later today before U.S. Magistrate Judge Stewart D. Aaron.  The case is assigned to U.S. District Judge Richard M. Berman.

U.S. Attorney Jay Clayton said: “As alleged, on three separate occasions, Tarek Bazrouk deliberately targeted and assaulted Jewish victims at protests relating to the Israel/Gaza war.  Despite being arrested after each incident, Bazrouk allegedly remained undeterred and quickly returned to violently targeting Jews in New York City.  This Office is dedicated to seeking justice for victims of hate-based crimes and will aggressively prosecute those who spread bigotry and discrimination through violence. ”

Assistant Attorney General Harmeet K. Dhillon said: “The Civil Rights Division will continue to relentlessly pursue allegations of antisemitic violence and will not stop until justice is served for the victims and their families. Under Attorney General Pam Bondi’s leadership, we will use all available resources to investigate and charge those who target and assault others because of their faith.”

FBI Assistant Director in Charge Christopher G. Raia said: “Over the course of nine months, Tarek Bazrouk allegedly targeted and violently attacked multiple Jewish victims in a series of physical assaults, while demonstrating a pattern of supporting anti-Semitic terrorist organizations. These alleged hate crimes not only violated the victims’ ability to exercise their first amendment rights, but also intimidated and sparked fear among a broader population. The FBI won’t tolerate this behavior and will apprehend any individual who commits a federal crime seeking to harm others for their religious beliefs.”

NYPD Commissioner Jessica S. Tisch said: “As alleged, Tarek Bazrouk deliberately set out to harm Jewish New Yorkers — targeting them at protests, singling them out, and assaulting them for nothing more than their identity. The NYPD worked closely with the FBI and the U.S. Attorney’s Office to track him down and ensure he faces real consequences. Antisemitism and all forms of bigotry have no home here in New York — period. New Yorkers of all faiths are welcome to live and worship in our city freely, and we will never stop fighting to protect that right.”

According to the allegations in the Indictment unsealed today, other public filings, and statements previously made on the record in this case[1]:

Over the course of approximately nine months, BAZROUK physically assaulted three Jewish individuals at protests concerning the Israel/Gaza war.  First, on April 15, 2024, BAZROUK—while wearing a green headband typically worn by Hamas terrorists—attended a protest concerning the Israel/Gaza war in Lower Manhattan, outside the New York Stock Exchange.  During the protest, BAZROUK was arrested by officers from the New York City Police Department (“NYPD”) after lunging at a group of pro-Israel protestors.  As BAZROUK was being escorted to an NYPD vehicle, BAZROUK kicked a different individual—Victim-1, a Jewish college student—in the stomach.  At the time of the assault, Victim-1 was standing near other Jewish protestors, who were wearing kippahs (that is, brimless skullcaps traditionally worn by Jewish men), carrying Israeli flags, and singing Jewish songs.

Approximately eight months later, on December 9, 2024, BAZROUK assaulted another individual at a protest relating to the Israel/Gaza war next to a university campus in upper Manhattan.  The victim of the second assault—Victim-2—is a Jewish student who attended the nearby university.  On the date of the assault, Victim-2 and his brother were wearing kippahs, Victim-2 had an Israeli flag draped around his shoulders, and Victim-2 was singing Jewish songs.  As the protest continued, BAZROUK—with his mouth covered—stole an Israeli flag from Victim-2’s brother and fled.  After Victim-2 and his brother followed BAZROUK through a crowd to retrieve the flag, BAZROUK snuck up beside Victim-2 and struck him in the face with a closed fist.

Roughly one month later, on January 6, 2025, BAZROUK assaulted a third Jewish victim—Victim-3—at a protest concerning the Israel/Gaza war near 1st Avenue and East 18th Street in Manhattan.  At this protest, Victim-3 was wearing an Israeli flag around his shoulders, a hat with an Israeli flag, and a chain with a Jewish star.  During the protest, BAZROUK, who was wearing a keffiyeh on his face, made contact with Victim-3’s shoulder and wrapped his foot around Victim-3’s ankle.  Victim-3 attempted to push BAZROUK away and cursed at him.  BAZROUK then punched Victim-3 in the nose with a closed fist. 

Pursuant to judicially authorized warrants, law enforcement subsequently searched cellphones used by BAZROUK.  Evidence from those devices revealed BAZROUK’s anti-Semitic bias and his support for anti-Jewish terrorist groups including Hamas, demonstrating his motivation for repeatedly assaulting Jewish victims.  In text messages, for example, BAZROUK identified himself as a “Jew hater,” labeled Jews as “worthless,” extorted “Allah” to “get us rid of [Jews],” called an acquittance a “Fucking Jew,” and told a friend to “slap that bitch” in reference to a woman with an Israeli sticker on her laptop.  BAZROUK also told a friend that he was “mad happy” to have learned that certain of his family members overseas are part of Hamas.  BAZROUK’s phones also contained extensive pro-Hamas and pro-Hizballah propaganda, showing his support for organizations that have murdered thousands of Jews and Israelis.

*                *                *

BAZROUK, 20, of New York, New York, is charged with three counts of committing hate crimes, each of which carries a maximum sentence of 10 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI and thanked the Manhattan District Attorney’s Office and the NYPD for their assistance.

The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Sam Adelsberg and Jim Ligtenberg are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.    

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. 

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOSHUA SCHUSTER with engaging in a scheme to defraud investors in large real estate development projects located in New York City.  SCHUSTER was arrested today and will be presented in the U.S. District Court for the Southern District of Florida.  The case has been assigned to U.S. District Judge Valerie E. Caproni.  

U.S. Attorney Jay Clayton said: “As alleged, Joshua Schuster stole more than $10 million from his investors to fund his own lifestyle, pay off other investors in a Ponzi fashion, and maintain the appearance of success.  The women and men of our Office are committed to protecting investors and our markets from fraud and abuse.”

FBI Assistant Director in Charge Christopher G. Raia said: “Joshua Schuster allegedly stole more than ten million dollars from New York City real estate investors through inaccurate statements of fund usage and exaggerated portrayals of his business’s reputation.  This alleged scheme betrayed prospective buyers’ trust and pockets to finance his lifestyle and cover personal delinquent debts.  The FBI will never permit any individual to unlawfully profit off false promises—even when those promises result in actual buildings on the city’s skyline.”

According to the allegations contained in the Indictment1:

From at least in or about 2018, up through and including at least in or about 2022, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City.  SCHUSTER worked through his real estate development business, Silverback Development, which was based in Manhattan.  SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific projects in Gramercy Park, Long Island City, the Bronx, and other locations.  SCHUSTER marketed Silverback and its affiliated real estate ventures as elite investment opportunities backed by his market expertise.

In reality, the representations and promises SCHUSTER made to investors were false and misleading.  SCHUSTER misappropriated tens of millions of dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll.  In total, SCHUSTER fraudulently obtained and stole in excess of $10 million.

*               *                *

SCHUSTER, 41, of Boca Raton, Florida, is charged with one count of wire fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
 

1 As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York, today announced Amanda Houle as Chief of the Office’s Criminal Division.

Ms. Houle returns to the Office from the law firm of Sullivan & Cromwell LLP, where she was a partner.  From 2015 to 2023, she served as an Assistant U.S. Attorney in the Southern District of New York and served, from 2020 to 2021, as Chief of the Narcotics Unit, and from 2021 to 2023, as Chief of the National Security and International Narcotics Unit.  Amanda has also served in public service as a law clerk to the Honorable Denny Chin in the U.S. District Court for the Southern District of New York and the U.S. Court of Appeals for the Second Circuit and to the Honorable Cathy Seibel in the U.S. District Court for the Southern District of New York.  Amanda received her B.A. from Barnard College and her J.D. from Fordham University.  

In announcing this selection, Jay Clayton said: “I’m thrilled to announce Amanda as Chief of the Criminal Division, and the Office is thrilled to have her return.  During her prior tenure at SDNY, Amanda distinguished herself as an exceptional trial lawyer, a standout case maker, and a devoted colleague and public servant.  She led some of the Office’s most significant cases against terrorists, cartel leaders and their money launderers, sex traffickers, violent gang members, and those seeking to evade economic sanctions critical to protecting our national security.  Throughout her time in Government service and private practice, Amanda has been known to all as a dynamic and strategic advocate, a consummate professional, and a steady hand.  Amanda’s talents are matched by her love of the Office and deep commitment to the mission of protecting the public with our law enforcement partners.  She will make an outstanding leader of the Criminal Division, and we are grateful to have her return to serve.”

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that MANISHKUMAR PATEL was sentenced to 14 months in prison by U.S. District Judge Lorna G. Schofield for defrauding Medicare.  PATEL previously pled guilty to conspiring to commit health care fraud, wire fraud, and violating the Anti-Kickback Statute.

U.S. Attorney Jay Clayton said: “As he previously admitted, Manishkumar Patel bilked Medicare for nearly $50 million. Frauds on our Medicare system increase costs for all Americans, and worse yet, potentially restrict access to those in need of critical healthcare. Patel’s 14 month sentence in federal prison sends an important deterrent message to those who would seek to bilk our Medicare system.”

According to the charging documents and other filings and statements made in court:

Between 2019 and 2022, PATEL and a coconspirator (“CC-1”) fraudulently sold prescriptions and doctors’ orders for durable medical equipment, pharmaceuticals, and laboratory tests (collectively, “scripts”) to durable medical equipment suppliers, pharmacies, and laboratories (collectively, the “Medicare Providers”).

PATEL obtained the scripts from call centers that called Medicare beneficiaries and asked them perfunctory questions designed to justify a script that would be reimbursed by Medicare. PATEL turned the information from those calls into scripts by, variously: arranging cursory telemedicine appointments with the beneficiaries; a practice called “doctor chasing,” in which the information was sent to a doctor who signed the script without seeing the patient and who was frequently unaware of what they were signing; and obtaining forged scripts.  PATEL then sold the scripts to Medicare Providers, which filled the orders and billed Medicare.

Because the scripts were fraudulently obtained, many beneficiaries rejected the items they were sent by the Medicare Providers, many doctors threatened to report PATEL for fraud, and Medicare frequently refused to pay for the scripts.

The Medicare Providers made payments to PATEL for the scripts in violation of the Anti-Kickback Statute. PATEL and the Medicare Providers entered into sham contracts for generic marketing services at flat rates in an attempt to conceal their illegal kickback scheme.

PATEL was a leader of the scheme, which resulted in losses to Medicare of approximately $48 million.

*               *                *

In addition to the prison term, PATEL, 44, of Pelham Manor, New York, was sentenced to one year of home detention.   PATEL was also ordered to pay $48,150,692.49 in restitution to the U.S. Centers for Medicare and Medicaid Services, and to forfeit $6,839,900.

Mr. Clayton praised the outstanding work of the U.S. Department of Health and Human Services, Office of Inspector General. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.

Jay Clayton, United States Attorney for the Southern District of New York, announced that HECTOR COLON, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to 18 months in prison for soliciting and accepting approximately $30,000 in bribes from contractors in exchange for awarding repair contracts or approving repair work worth at least approximately $400,000.  COLON’s sentence was imposed by U.S. District Judge Lewis J. Liman, who also presided over a one-week trial at which COLON was convicted of bribery and extortion under color of official right. 

U.S. Attorney Jay Clayton said: “Hector Colon abused his position at NYCHA to demand bribes from contractors for his personal gain. The women and men of this Office are committed to pursuing those who abuse the public’s trust.”

According to the Indictment, public court filings, statements made in court, and evidence presented during trial:

NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA.

COLON, a superintendent at three different NYCHA developments in Manhattan between 2018 and 2022, demanded and accepted cash in exchange for NYCHA contracts.  He required contractors to pay bribes in order to be awarded the contracts or required bribe payments after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so that the contractor could be paid by NYCHA.  COLON typically demanded 10% of the contract value—between $500 and $1,000, depending on the size of the contract.  In total, COLON demanded and accepted approximately $30,000 dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth approximately $400,000.

Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 62 have pled guilty, and three have been convicted after trial.  COLON is the second of the three NYCHA employees convicted after trial to be sentenced.  The cases of the five remaining defendants, who are each presumed innocent unless and until proven guilty, remain pending.

If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact OIGNYCHA@doi.nyc.gov or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

*                *                *

In addition to the prison term, COLON, 47, of the Bronx, New York, was sentenced to two years of supervised release and ordered to pay restitution in the amount of $30,000 and to forfeit $30,000. 

Mr. Clayton praised the outstanding investigative work of the New York City Department of Investigation, the U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.

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

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jacob R. Fiddelman, Catherine Ghosh, Jane Kim, Jerry J. Fang, and Meredith C. Foster are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Shirel Garzon.

Jay Clayton, the United States Attorney for the Southern District of New York, and James Crowley, the Acting Special Agent in Charge of the Boston Field Division of the Federal Bureau of Investigation (“FBI”), announced today the arrest of DAVID FERNANDES III.  FERNANDES is charged with sending obscenity to a minor and being a registered sex offender when he sent obscenity to a minor.  FERNANDES was arrested Thursday, May 1, and presented Friday, May 2, before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.

U.S. Attorney Jay Clayton said: “Allegedly, David Fernandes III, a registered sex offender, was not deterred by his previous involvement with the criminal justice system. This case underlines the urgent need for law enforcement to continue its efforts to protect children. The women and men of the Southern District and the FBI will use every tool available to investigate and prosecute those who sexually exploit children.”   

FBI Acting Special Agent in Charge James Crowley said: “Anyone willing to sexually exploit children deserves to feel the full force of the law. The FBI has arrested David Fernandes, a registered sex offender, for sending sexually explicit material to an 11-year-old child in Massachusetts. Each time we’re able to step in and protect a child from further sexual exploitation, it’s a good day.”

As alleged in the Complaint filed on April 29, 2025, in White Plains federal court and statements made in court[1]:

On or about October 8, 2024, FERNANDES knowingly transmitted to an 11-year-old an obscene photo of an adult male hand holding a penis. At the time FERNANDES engaged in this felony offense involving a child, he was required to register as a sex offender.

On March 19, 2019, FERNANDES was convicted in New York state of Disseminating Indecent Material to a Minor, for which he received a sentence of five years’ probation. He completed this sentence on or about September 12, 2024.   

On or about October 11, 2024, the mother of an 11-year-old child (“Victim-1”) reported to the Holden Police Department, in Holden, Massachusetts, that she had discovered sexually explicit images and communications on Victim-1’s phone with a phone number ending in 4245 (the “4245-Phone”). She also reported that her daughter had advised her that her daughter’s 12-year-old friend (“Victim-2”) had been in communication with the user of the 4245-Phone. 

A forensic review of Victim-1’s phone revealed over 4000 messages exchanged between Victim-1’s phone and the 4245-Phone between October 4, 2024, and October 8, 2024. In the messages, the user of the 4245-Phone identified himself as a 26-year-old man and transmitted sexually explicit videos and photos of an adult man to Victim-1’s phone. At approximately 4:41 a.m. on October 4, 2024, the 4245-Phone transmitted a video to Victim-1’s phone revealing an adult holding an erect penis, masturbating and ejaculating. At approximately 3:58 a.m. on October 8, 2024, the 4245-Phone texted, “I wanna feel u,” “Like genuinely feel inside u” and “I wanna be all the way inside you.” At approximately 4:00 a.m. on October 8, 2024, the 4245-Phone transmitted a photo of a male hand holding an erect penis. Shortly thereafter, the 4245-Phone texted, "Imagine that inside u."

Victim-1 advised law enforcement that she first communicated with the 4245-Phone on or about October 4, 2024. Victim-2 advised law enforcement that she began communicating with the user of the 4245-Phone, who identified himself to her as “David,” in approximately September 2024 and communicated with him on Snapchat, Roblox, and through video chats on Google Meet. Victim-2 advised that “David” requested sexually explicit pictures and videos of Victim-2 and that she transmitted them to him, mostly via Snapchat. Victim-2 provided “David” with Victim-1’s phone number so that she and David could message one another.

Anyone who may have encountered FERNANDES, who used the Snapchat user names “tazjazz,” “diamondboy24k,” “itsmagikyouknow,” and “retrovxrse, or whose child may have had any communications with FERNANDES, is asked to contact the FBI at 1-800-CALL-FBI (225-5324).

*                *                *

FERNANDES, 27, of Lagrangeville, New York, is charged with one count off transferring obscene material to a minor, which carries a maximum sentence of 10 years in prison, and one count of committing the offense while being required to register as a sex offender, which carries a mandatory consecutive sentence of 10 years in prison. 

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

Mr. Clayton praised the efforts of the FBI, including the FBI New York Hudson Valley Safe Streets Task Force and FBI Boston; the Holden Police Department; the U.S. Attorney’s Office for the District of Massachusetts; the Dutchess County Sheriff’s Office; and the Town of Poughkeepsie Police Department in connection with this investigation.        

The prosecution is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.   

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging BRIAN LIAM FULLERTON with three counts of sexual exploitation of a child. FULLERTON was arrested this morning and presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court. 

U.S. Attorney Jay Clayton said: “As alleged, Brian Fullerton used Snapchat and other social media applications to manipulate and exploit numerous minor victims. We will deploy every resource at our disposal to protect the most vulnerable among us, and we will prosecute those who prey on our children to the fullest extent of the law.”

FBI Assistant Director in Charge Christopher G. Raia said: “Brian Fullerton allegedly directed several female minors to record and perform sexual acts, while requiring secrecy upon learning the victims’ underage status. The defendant allegedly engaged in unlawful sexual communications and induced the repeated production of explicit content, violating the victims’ privacy and preying upon their innocence. The FBI remains determined to apprehend any individual who sexually exploits minors to fulfill their perverted gratification.”

As alleged in the Complaint:[1] 

From as early as September 2022, FULLERTON used social messaging applications, including Snapchat, to prey on victims as young as 14 years old. FULLERTON got these victims to send him sexually explicit photos and videos of themselves. Among those FULLERTON targeted was a 14-year-old minor (“Victim-3”), from whom FULLERTON obtained several sexually explicit videos and to whom FULLERTON sent sexually explicit text messages, writing, among other things, “I wish you lived in New York, so I can f*** you for real … You want to be bred by a man three times your age you dirty little girl … I scrolled to make sure my face wasn’t in any pics don’t need them seeing how old I am ;).”

Photos depicting FULLERTON are below:

Any individuals with information concerning FULLERTON and any individuals who may have encountered someone using the Snapchat username “lomax518,” the Instagram username “BRADSMITH4187,” the Kik username “lomax518,” or the TikTok username “bradsddysza,” please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.

*                *                *

FULLERTON, 46, of Mahopac, New York, is charged with three counts of sexual exploitation of a child, each of which carries a 15-year mandatory minimum and a 30-year maximum sentence.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. 

Mr. Clayton praised the outstanding work of the FBI and the Warren County Sheriff’s Office. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Carmi Schickler is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging CARSEN MANSFIELD with extortionate interstate communications.  MANSFIELD was arrested on Tuesday, April 29 in Newburgh, New York, and was presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.

U.S. Attorney Jay Clayton said: “As alleged Carsen Mansfield used Discord to track down and exploit the minor female victim.  Protecting our children is central to our mission, and we will prosecute those who victimize them to the fullest extent of the law.”

FBI Assistant Director in Charge Christopher G. Raia said: “Carsen Mansfield allegedly extorted and threatened a minor in another state to provide sexually explicit images.  Mansfield’s alleged actions violated a vulnerable victim’s privacy to satiate his personal disturbing desires.  The FBI remains committed to protecting any minor from those who wish to inflict sexual harm, regardless of where they are located.”

As alleged in the Complaint:[1] 

On or about August 4, 2024, MANSFIELD, using the communication platform Discord, contacted a minor female victim (“Victim-1”) and sent her a series of photographs that Victim-1 recognized as nude photographs of her that she had taken previously.  MANSFIELD proceeded to threaten to send the nude photographs of Victim-1 to her friends and family if she did not send him more nude or otherwise sexually explicit materials, writing “Well I have these pictures and if you don’t send me more I’m going to send them to your friends and family . . . Your [sic] my slut now Andy [sic] failure to make me happy will end up exposed to your friends and family.” 

Any individuals with information concerning CARSEN MANSFIELD and any individuals who may have encountered someone using the Discord username “noname45.#0” or the X (formerly Twitter) username “expogirlsss” please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.

*                *                *

MANSFIELD, 23, of Newburgh, New York, is charged with one count of extortionate interstate communications, which carries a statutory maximum sentence of two years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Clayton praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force and Detroit Field Office, as well as the Town of Newburgh Police Department.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Margaret N. Vasu is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging LONNIE YOUMANS with sexual exploitation of a child, receipt and distribution of child pornography, and possession of child pornography. YOUMANS was arrested yesterday in Newburgh, New York, presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court, and ordered detained.

U.S. Attorney Jay Clayton said: “As alleged, Lonnie Youmans used Discord as a hunting ground to find, manipulate, and sextort our most vulnerable in a horrific scheme to obtain child pornography. Every New Yorker and every American loathes the exploitation of children.  Together with our partners, we will deploy every resource to relentlessly pursue and bring to justice those who prey on our children.”

FBI Assistant Director in Charge Christopher G. Raia said: “Lonnie Youmans allegedly devised a twisted scheme to obtain sexually explicit images of young children and extorted a minor to produce pornographic content with threats of blackmail. This alleged cyclical abuse groomed victims into submission, perpetuating increased victimization without reprieve. May this arrest highlight the FBI’s stout commitment to apprehending any individual who repeatedly sexually exploits children for depraved gratification.”

As alleged in the Complaint:[1]

From as early as January 2024, YOUMANS used an online messaging application called Discord to prey on victims as young as 12 years old. YOUMANS, who went by the Discord names “Zenheatsu” and “Leyley,” groomed vulnerable minors, got them to send him sexually explicit photos, and then threatened to leak those photos to coerce his victims into sending more images and recruiting additional victims. Among those YOUMANS targeted was a 15-year-old minor (“Victim-1”) from whom YOUMANS obtained dozens of sexually explicit photos, which YOUMANS distributed to others, including other minors. YOUMANS also manipulated Victim-1 into producing sexually explicit images for him as purported compensation for Victim-1 causing another 13-year-old minor to stop talking to YOUMANS. YOUMANS knew what he was doing was illegal, and once complained to another Discord user that Victim-1 “threatened me with fbi.”

On or about April 29, 2025, federal agents searched YOUMANS’ residence and found hundreds of unique files of child pornography on his phone, including multiple images of adults performing oral sex on toddlers and prepubescent children being penetrated by various objects. YOUMANS admitted that he knew the pornographic images he possessed were illegal.

A photo depicting YOUMANS is below:

If you are a victim of YOUMANS or have any information concerning YOUMANS, please call 1-800-CALL-FBI (1-800-225-5324) or you can report a tip online at tips.fbi.gov.

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YOUMANS, 22, of Newburgh, New York, is charged with sexual exploitation of a child, which carries a 15-year mandatory minimum and a 30-year maximum sentence; receipt and distribution of child pornography, which carries a five-year mandatory minimum and 20-year maximum sentence, and possession of child pornography, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI Hudson Valley Safe Streets Task Force, the Pennsylvania State Police, Town of Wallkill Police Department, and the Town of Newburgh Police Department.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Reyhan Watson is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York; Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”); Christopher M. Silvestro, the Acting Special Agent in Charge of the Northeast Field Office of the Defense Criminal Investigative Service (“DCIS”), the law enforcement arm of the Department of Defense’s Office of Inspector General (“DOD-OIG”); and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that the U.S. has settled a civil fraud lawsuit against GILEAD SCIENCES, INC (“GILEAD”), a large pharmaceutical manufacturer, that, among other things, develops, manufactures, and sells drugs for the treatment of infectious diseases, including HIV/AIDS. The settlement resolves claims that GILEAD offered and paid kickbacks in the form of honoraria payments, meals, and travel expenses to healthcare practitioners who spoke at or attended Gilead speaker events to induce them to prescribe Stribild®, Genvoya®, Complera®, Odefsey®, Descovy®, and Biktarvy® (the “Gilead HIV Drugs”) in violation of the Anti-Kickback Statute (“AKS”) and thereby caused false claims for the Gilead HIV Drugs to be submitted to and paid by federal healthcare programs in violation of the False Claims Act.

Under the settlement, which was approved yesterday by U.S. District Judge Paul A. Engelmayer, GILEAD agreed to pay a total sum of $202 million, of which $176,927,889.28 will be paid to the U.S. and the remainder will be paid to various states.  As part of the settlement, GILEAD also made extensive factual admissions regarding its conduct.

U.S. Attorney Jay Clayton said: “For years, Gilead unlawfully sought to increase sales of its HIV drugs, by using its speaker programs to funnel kickbacks to doctors.  As alleged, Gilead spent tens of millions of dollars on these programs, including over $20 million in speaking fees and millions more in exorbitant meals, alcohol and travel, all in an effort to induce doctors to prescribe Gilead’s HIV drugs and drive up sales.  With this settlement, Gilead has taken responsibility for its conduct and agreed to pay a significant financial penalty.  The message is clear, companies that illegally drain taxpayer dollars from federal healthcare programs will be held accountable.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “This impactful settlement is the result of collaborative work by law enforcement partners, revealing Gilead’s unlawful practice of providing kickbacks to physicians under the guise of its HIV educational speaker programs.  Violations of the Anti-Kickback Statute, which in this case involved expensive HIV medications, can inappropriately influence physicians’ decision-making and divert the monies of taxpayer-funded federal healthcare programs.”

DCIS Acting Special Agent in Charge Christopher M. Silvestro: “This settlement is the result of the partnership among law enforcement and the Department of Justice to aggressively investigate and hold accountable companies and their employees who value greed over healthcare.  Protecting TRICARE, the healthcare system for Service members and their families, and investigating kickback schemes are priorities for DCIS.”

FBI Assistant Director in Charge Christopher G. Raia said: “This settlement ensures Gilead is held accountable for their illicit use of perks and kickbacks to entice doctors to prescribe the company’s medicine.  These types of schemes are not victimless - illegal kickbacks directly affect taxpayer funded healthcare programs.  The FBI will continue to investigate and stop healthcare companies attempting to benefit from deceitful and illegal practices.”

As alleged in the Complaint filed in Manhattan federal court:

The Gilead HIV Drugs are antiretroviral drugs (i.e., drugs that act against retroviruses such as HIV) used for the treatment of HIV.  These drugs are very expensive—Medicare typically paid well in excess of a thousand dollars for a one-month supply of Complera®, and significantly more for many of the other Gilead HIV Drugs.

As part of its marketing efforts and to increase sales, Gilead conducted events known as “HIV Speaker Programs” at which a healthcare provider involved in the treatment of HIV was engaged to present a slide deck (prepared by Gilead) and facilitate discussion about one of the drugs or a topic concerning HIV (an “HIV Disease State Topic”) to other healthcare providers involved in the treatment of HIV (“Attendees”).  Gilead’s HIV Speaker Programs were often held in the evening at restaurants (“HIV Dinner Programs”).

From January 2011 to November 2017 (the “Relevant Time Period”), Gilead conducted HIV Speaker Programs in order to promote and increase the sales of the Gilead HIV Drugs.  The HIV Speaker Programs were supposed to be educational in nature and the cost of any meals provided was supposed to be modest.  But in practice, during the Relevant Time Period, Gilead’s HIV Speaker Programs provided kickbacks to healthcare providers by: holding HIV Dinner Programs at high-end restaurants that were wholly inappropriate for educational events; allowing Attendees to attend HIV Dinner Programs on the exact same topic again and again and, thereby, obtain free lavish meals for events that held minimal educational value for them; and paying for HIV Speakers to travel to speak at desirable destinations—at times at the HIV Speaker’s request.  Further, Gilead’s compliance program failed to prevent these improper practices, even though Gilead knew that it had to comply with the AKS and the company’s own data should have put Gilead on notice of many of these abuses. 

Many healthcare providers who received these improper kickbacks then prescribed the Gilead HIV Drugs.  As a result, federal healthcare programs paid millions of dollars in reimbursements for tainted prescriptions.

As part of the settlement, GILEAD admitted and accepted responsibility for certain conduct alleged by the U.S., including the following:

• Gilead paid many high-volume prescribers of HIV drugs tens or hundreds of thousands of dollars in honoraria to prepare and present as HIV Speakers.  For instance, one HIV Speaker, who received over $300,000 in total honorarium payments, wrote prescriptions for Gilead HIV Drugs that resulted in over $6 million in Medicare, Medicaid, and TRICARE payments.
• On many occasions, Gilead covered the travel costs of HIV Speakers who traveled long distances to speak at HIV Speaker Programs at desirable travel destinations, such as Hawaii, Miami, and New Orleans.  This was sometimes in response to an HIV Speaker’s request to be booked for an HIV Speaker Program in that city.
• Sales representatives in Gilead’s HIV therapeutic area (“Sales Representatives”) organized HIV Speaker Programs at high-end restaurants across the country.  For instance, a significant percentage of the HIV Speaker Programs held in New York City were held at expensive restaurants, such as the James Beard House, Del Posto, Asiate, Palma, Vaucluse, Ilili, and Limani.  In particular, Gilead held 157 HIV Speaker Programs at the James Beard House, making it one of Gilead’s most used venues for HIV Speaker Programs.  A dinner at the James Beard House typically included approximately six courses with alcoholic beverage pairings.
• Sales Representatives repeatedly invited numerous doctors and other healthcare providers to attend the same HIV program over and over.  Many repeatedly attended HIV Speaker Programs covering the exact same topic, often within a short period of time.
• Over 250 prescribers of the Gilead HIV Drugs attended HIV Dinner Programs on the same topic three times or more within a six-month period.  And over 80 of them attended five or more HIV Dinner Programs on the same topic within a six-month period.
• Further, many healthcare providers who were paid to be HIV Speakers on a particular topic also attended HIV Dinner Programs on exactly the same topic, often within less than six months after speaking.
• In certain instances, the same group of doctors repeatedly attended the same HIV Speaker Programs together at various restaurants.  In many instances, they attended a HIV Dinner Program less than two weeks after speaking on the same topic.
• During the Relevant Time Period, Gilead’s policies and procedures failed to prevent Sales Representatives and Regional Directors in its HIV therapeutic area from improperly providing honoraria payments, meals, and travel expenses to healthcare providers who spoke at or attended HIV Speaker Programs to induce them to prescribe the Gilead HIV Drugs. 

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.

*                *                *

Mr. Clayton thanked the New York Medicaid Fraud Control Unit for their extensive collaboration in the investigation and resolution of this case, and also praised the outstanding investigative work of the FBI, HHS-OIG and DCIS.

The case is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorneys Jacob M. Bergman, Allison M. Rovner, Rebecca S. Tinio, and Lucas Issacharoff are in charge of the case.

False claims in the healthcare industry cost every American.  Today, a unanimous jury found Omnicare, the country’s largest long-term care pharmacy, liable for fraudulently dispensing drugs without valid prescriptions to elderly and disabled people in assisted living facilities and other residential long-term care facilities.  After a four-week trial, the jury found that Omnicare billed Medicare, Medicaid, and TRICARE for over three million false claims resulting in $135,592,814 in damages.  Under the federal False Claims Act, the Government is entitled to three times the amount of these assessed damages, or $406,778,442, plus statutory penalties to be determined by the Court.  This is one of the largest damages verdicts rendered by a jury in a False Claims Act case.  The jury also found CVS Health Corporation, Omnicare’s parent, liable for causing Omnicare to submit false claims.  I thank the women and men of our Civil Division for continuing to pursue those who seek to exploit the healthcare system.  I also thank the U.S. Department of Health and Human Services and the Department of Defense for their support and assistance throughout this case.

Jay Clayton, the United States Attorney for the Southern District of New York, and Edward Gallashaw, the Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced today charges against MICHEAL PENA, HARRINGTON DELAHOZ, JOSHUA GUTIERREZ, and JAYSEN DORSEY.  The defendants are charged with conspiracy to commit bank fraud and wire fraud and aggravated identity theft.  PENA and GUTIERREZ were arrested this morning.  GUTIERREZ will be presented later today before U.S. Magistrate Judge Barbara Moses.  PENA will be presented before U.S. Magistrate Judge Daniel C. Irick in the Middle District of Florida.  DELAHOZ and DORSEY remain at large.   

U.S. Attorney Jay Clayton said: “As alleged, Micheal Pena and his co-defendants orchestrated a massive, multimillion-dollar scheme to steal innocent victims’ money.  The defendants obtained real checks, including from the mail, forged the checks, falsified identities, sold the checks to others, and took advantage of multiple financial institutions.  The defendants’ fraudulent scheme affected real people and the millions of Americans who rely on the United States banking system and the United States mail.” 

USPIS Acting Inspector in Charge Edward Gallashaw said: “These individuals allegedly devised a scheme to steal checks from the U.S. Mail and then, in some cases, sell the personal identifiable information on these stolen checks via an encrypted messaging platform to colluding individuals. They furthered their scheme by altering the payee and amount originally written on these checks, stealing from the unsuspecting public. Let today’s arrest serve as an example for those trying to make quick money while financially preying on the American public, Postal Inspectors will put an end to your criminal enterprise. We will vigorously pursue you and bring you to justice for your illegal acts against our customers and the Postal Service. We are thankful for the United States Attorney’s Office for the Southern District of New York for their dedication on this case.”

According to the allegations contained in the Complaint:[1]

From at least in or about April 2023 up to and including at least in or about October 2024, PENA, DELAHOZ, GUTIERREZ, and DORSEY carried out a national scheme to sell more than $53 million in stolen checks and fraudulently alter stolen checks that they then deposited at various financial institutions.  As part of that scheme, PENA operated and used a channel on a particular messaging platform, which went by the moniker “White House Vibez” and had thousands of subscribers, to sell checks that had been stolen from the U.S. Postal Service. Below is an image that was posted on White House Vibez on or about February 19, 2024, depicting what appears to be numerous pieces of stolen mail and checks and advertising a forthcoming batch of checks for sale.

Purchasers of checks were directed to send payments to several accounts on a popular mobile payment platform, at least two of which were set up by GUTIERREZ and DELAHOZ using false identification. Along with the stolen checks, purchasers were also sometimes offered personal identifying information of the victim-payors of the stolen checks.  As an example, below is a check posted for sale, and listed as sold, on White House Vibez, along with an offer to sell the social security number and date of birth of the victim-payor.  

Additionally, during this period, PENA, DELAHOZ, GUTIERREZ, and DORSEY deposited hundreds of thousands of dollars in stolen checks at various financial institutions, including checks that had been previously posted for sale on White House Vibez.  Before such checks were deposited, they were “washed,” which is a process by which the payee’s information and amount on the check are removed and rewritten to reflect another payee’s identity and amount. The defendants flaunted their success on White House Vibez, posting images of check deposit receipts and large cash withdrawals.

*                *                *

PENA, 26, formerly of Woodridge, New Jersey; DELAHOZ, 46, of Bronx, New York; GUTIERREZ, 30, of New York, New York; and DORSEY, 28, of New York, New York, are each charged with conspiracy to commit bank fraud and wire fraud, which carries a maximum sentence of 30 years in prison, and aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.

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

Mr. Clayton praised the outstanding investigative work of the USPIS.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Varun A. Gumaste is in charge of the prosecution.

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

[1] The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

Jay Clayton, the United States Attorney for the Southern District of New York and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”) announced today the arrest of SAMUEL GONZALEZ, a former teacher at an acting school in New York City.  GONZALEZ is charged with distributing and possessing child pornography, including videos depicting the sexual abuse of infants and toddlers.  GONZALEZ will be presented later today before U.S. Magistrate Judge Barbara Moses.

U.S. Attorney Jay Clayton said: “As alleged, Samuel Gonzalez distributed a large volume of child pornography, including images of sexual abuse of children as young as a few months old.  The lasting scars from the horrific abuse of children are deeply troubling to all New Yorkers.  Together with our partners, we will relentlessly pursue those who victimize children and prosecute them to the fullest extent of the law.”

FBI Assistant Director in Charge Christopher G. Raia said: “Samuel Gonzalez allegedly distributed thousands of pornographic images of infants and minors to an undercover federal agent over a brief period.  Gonzalez’s alleged actions grossly disregarded the victims’ welfare and repeatedly violated their privacy by sharing this twisted material.  The FBI is deeply committed to preventing crimes against children and will continue to apprehend any individual who supplies these explicit images.”   

According to the allegations contained in the Complaint:[1]

GONZALEZ is an actor, dancer, theater producer, and former teacher at an acting school in New York City.  In or about January 2023 and April 2023, GONZALEZ used an online messaging application to send links containing over 1,500 files of child pornography to a federal law enforcement agent acting in an undercover capacity.   In addition, in or about June 2023, federal agents executed a judicially-authorized search warrant of GONZALEZ’s apartment.  Pursuant to that warrant, federal agents seized and searched GONZALEZ’s phone and laptop, which were found to contain over 80 unique files of child pornography, including videos and images of infants and prepubescent adolescents who had not attained 12 years of age.

*                *                *   

GONZALEZ, 31, of Brooklyn, New York, is charged with one count of distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison.  GONZALEZ is further charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison.

The statutory maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Clayton praised the outstanding investigative work of the FBI and the FBI/New York City Police Department Child Exploitation and Human Trafficking Task Force. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Katherine Cheng and Diarra M. Guthrie are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that HAJI NAJIBULLAH, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah,” a/k/a “Nesar Ahmad Mohammad,” pled guilty to hostage taking and providing material support for acts of terrorism resulting in death in connection with NAJIBULLAH’s role in the hostage taking of an American journalist and two Afghan nationals in Afghanistan and Pakistan in 2008 and 2009, and his leadership of Taliban fighters who carried out attacks on U.S. servicemembers in Afghanistan between 2007 and 2009, resulting in the deaths of American soldiers.  NAJIBULLAH pled guilty today before U.S. District Judge Katherine Polk Failla.

U.S. Attorney Jay Clayton said: “Haji Najibullah was a Taliban commander who committed acts of terrorism against U.S. servicemembers and civilians in Afghanistan. His vicious acts of terrorism included taking hostage multiple civilians and providing material support for attacks that resulted in the deaths of brave Americans.  Najibullah committed his crimes in Afghanistan over 15 years ago, and now faces justice in an American courtroom.  Today’s guilty plea serves as an emphatic reminder that this Office, and our law enforcement partners, will aggressively pursue those who harm Americans through acts of terror, no matter where in the world they may be, and no matter how long it may take to achieve justice for their victims.  I thank the career prosecutors of this Office, and our dedicated partners, for their work in holding Najibullah accountable for his heinous crimes.”

FBI Assistant Director in Charge Christopher G. Raia said: “For years, the FBI New York JTTF and our law enforcement partners tirelessly sought justice for the hostage taking of civilians, and also for the deaths of United States service members at the hands of Taliban fighters under Najibullah’s command.  These terrorist attacks demonstrated utter disregard for humanity, and Najibullah finally admitted to his role in these premature deaths of our citizens.  Today’s plea emphasizes the FBI New York JTTF’s unwavering resolve to disrupting all acts of terrorism and ensuring any individual who targets our country will be held accountable.”

As alleged in the charging instruments, court filings, and statements in the public record:

Between approximately 1996 and 2001, the Taliban controlled Afghanistan and harbored and supported terrorists, including terrorists involved in perpetrating the September 11, 2001, terrorist attacks on the U.S.  After losing power in approximately October 2001 as a result of the U.S. and NATO-led invasion of Afghanistan, the Taliban engaged in a deadly insurgency campaign to regain control of the country.  Beginning in the early 2000s, as part of that campaign of violence, the Taliban conducted numerous suicide bombings, targeted killings, assassinations, improvised explosive device (“IED”) attacks, paramilitary ambushes, and hostage takings against the then-government of Afghanistan, U.S. military forces and their NATO and Afghan partners, and American civilians in Afghanistan.

Between in or around 2007 and 2009, NAJIBULLAH served as a Taliban commander in Afghanistan’s Wardak Province, which borders Kabul.  During that time, Taliban fighters under NAJIBULLAH’s command carried out deadly attacks against American and NATO troops and their Afghan allies, using, among other things, suicide bombers, automatic weapons, IEDs, and rocket-propelled grenades (“RPGs”) and other anti-tank weapons and explosives, including against U.S. military helicopters. 

For example, on or about June 26, 2008, Taliban fighters under NAJIBULLAH’s command ambushed and attacked a U.S. military convoy in the vicinity of Wardak Province, Afghanistan, with IEDs, RPGs, and automatic weapons, killing three U.S. Army servicemembers: Sergeants First Class Matthew L. Hilton and Joseph A. McKay, and Sergeant Mark Palmateer, and their Afghan interpreter. Several other servicemembers were also injured in the attack.  

In or about November 2007 and September 2008, NAJIBULLAH participated in two videorecorded interviews with a French reporter in Afghanistan.  NAJIBULLAH and fighters under his command discussed how they targeted American and French troops—including a specific attack they conducted against French troops in or around August 2008.  They also identified a particular location where they had used IEDs and anti-tank weaponry to destroy American military vehicles.  During the interview, NAJIBULLAH further demonstrated how to operate a rocket-propelled grenade launcher to shoot troops guarding checkpoints and boasted that fighters under his command were ready to fight the “holy war,” including that they were “ready to be suicide bombers” and “put on a belt and blow themselves up if we ask them.”  In September 2008, in the French reporter’s presence, NAJIBULLAH and fighters under his command attacked and destroyed an Afghan National Police outpost using automatic weapons and rockets.

On or about November 10, 2008, NAJIBULLAH and other Taliban fighters took hostage an American journalist (“U.S. Hostage-1”) and two Afghan nationals who were assisting U.S. Hostage-1 (together with U.S. Hostage-1, the “Hostages”) at gunpoint in Afghanistan.  Shortly thereafter, NAJIBULLAH and his co-conspirators forced the Hostages to hike across the border from Afghanistan to Pakistan, where NAJIBULLAH and his co-conspirators detained the Hostages.  For the next approximately seven months, NAJIBULLAH and his co-conspirators held the Hostages captive in Pakistan.  NAJIBULLAH and his co-conspirators forced the Hostages to make numerous calls and videos seeking help, in an attempt to compel ransom payments and the release of Taliban prisoners by the U.S. Government.

*                *                 *

NAJIBULLAH, 49, pled guilty to providing material support for acts of terrorism resulting in death, which carries a maximum sentence of life in prison, and to hostage taking, which also carries a maximum sentence of life in prison.  

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

Mr. Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.  He also thanked the New York and New Jersey Port Authority Police, the Department of Defense, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance with this investigation, as well as the Ukrainian authorities and the Justice Department’s Office of International Affairs for their assistance in the arrest and extradition of the defendant.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.

Jay Clayton, the United States Attorney for the Southern District of New York, announced that MOHANAD AL-ZUBAIDI and SHAKER SALEH MOHAMMED HAUTER were both sentenced to three years in prison for operating an unlicensed money transmitting business that was responsible for illicitly moving more than $65 million between the United States and countries in the Middle East, including Yemen, Turkey, Iraq, the United Arab Emirates, and Jordan.  AL-ZUBAIDI and HAUTER previously pled guilty on January 15, 2025, before U.S. District Judge P. Kevin Castel, who imposed yesterday’s sentence.

U.S. Attorney Jay Clayton said: “Mohanad Al-Zubaidi and Shaker Saleh Mohammed Hauter ran an underground financial network that illegally transferred tens of millions of dollars between the United States and the Middle East. The sentences imposed yesterday send a clear message that those who operate these unlawful financing networks will be held accountable.”

According to the Indictment, plea agreements, and statements made in court:

Between in or about 2018 through at least in or about 2022, AL-ZUBAIDI and HAUTER operated an unlicensed money transfer business that was responsible for illicitly moving more than $65 million between the U.S. and countries in the Middle East. AL-ZUBAIDI and HAUTER facilitated hundreds of illicit money transfers, with each transfer ranging from thousands to hundreds of thousands of dollars. For the illicit transactions they completed, AL-ZUBAIDI and HAUTER typically earned a commission of between one and six percent of the total amount transferred. To facilitate these illicit transfers, AL-ZUBAIDI and HAUTER worked with other members of an international network of money brokers to transfer money through an informal money transmitting system known as “hawala,” which is frequently used by money launderers and other criminals to transfer criminal proceeds abroad.

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In addition to the prison terms, AL-ZUBAIDI, 37, of Piscataway, New Jersey, and HAUTER, 52, of the Bronx, New York, were both sentenced to two years of supervised release and ordered to pay forfeiture of $385,000 and $430,000, respectively.

Mr. Clayton praised the outstanding investigative work of the Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service.  Mr. Clayton also recognized the assistance of U.S. Customs and Border Protection.

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Matthew J. King and Amanda C. Weingarten are in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced that EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin” (“AUSTIN”) was sentenced today to 18 years in prison.  AUSTIN was convicted following a jury trial in September 2024 of conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit interstate transportation of stolen property.  The defendant’s son, BRANDON AUSTIN (“BRANDON”), was previously sentenced to four years in prison in connection with his role in the scheme.  U.S. District Judge P. Kevin Castel imposed both sentences.

U.S. Attorney Jay Clayton said:  “For years, Hugh Austin was the leader of a fraud and money laundering scheme that stole more than $12 million from more than two dozen victims.  Austin involved his own son in his crimes, working with him to rip off victims and spending investor money on personal expenses, like luxury hotels.  Thanks to the work of the career prosecutors of this Office and our law enforcement partners, Austin will now be held accountable for the harm he caused to individual investors and others.”      

As reflected in the evidence presented at trial and other public filings:

AUSTIN was the leader of a scheme with his son BRANDON and others to steal money from entrepreneurs, investors, and other victims by fraudulently offering to, among other things: serve as a broker for sales of large quantities of cryptocurrency; provide short-term investments in cryptocurrency for purportedly high returns; and secure investors for startups and other small businesses from their network of high net worth individuals.  AUSTIN also frequently sought personal loans from friends and acquaintances in connection with AUSTIN’s purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest.  In each instance, investors and lenders lost their money.  AUSTIN and BRANDON frequently spent investors’ funds on personal expenses, including airline travel, luxury hotels, restaurants, shopping, as well as nominal payments to victims to prolong the scheme.  In total, AUSTIN and BRANDON have caused more than $12 million in losses to more than two dozen victims. 

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In addition to the prison term, AUSTIN, 62, of Port Jefferson, New York, was sentenced to three years of supervised release and ordered to forfeit $6,062,564 and pay restitution in the amount of $12,662,564.

Mr. Clayton praised the outstanding investigative work of Homeland Security Investigations.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Olga I. Zverovich, Matthew Weinberg, and Andrew K. Chan are in charge of the prosecution, with assistance from Paralegal Specialists Chanel-Ashley Foster, Frank Mastroianni, and Christine Woods.

I am honored to serve as United States Attorney for the Southern District of New York, alongside the women and men of the U.S. Attorney’s Office, an institution synonymous with excellence and integrity.  I would like to thank President Trump and Attorney General Bondi for this remarkable opportunity.  Along with the talented prosecutors of this Office and our law enforcement partners, I look forward to protecting public safety, combatting fraud, particularly on the elderly and most vulnerable, ensuring the integrity of our financial system, and defending our national security. Finally, I want to thank Acting United States Attorney Matthew Podolsky for his leadership and service.

U.S. Foreign Terrorist Organization MS-13 leader Yulan Andony Archaga Carías, also known as “Alexander Mendoza” and “Porky,” 43, is the highest-ranking member of MS-13, a U.S.-designated Foreign Terrorist Organization (FTO), in Honduras and was previously charged in 2021 in a superseding indictment in the Southern District of New York with racketeering, narcotics trafficking, and firearms offenses. Archaga Carías, a Honduran national, was subsequently placed on the FBI’s 10 Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI)’s Most Wanted Fugitives List. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs is offering a reward under the Transnational Organized Crime Rewards Program (TOCRP) of up to $5 million for information leading to his arrest and/or conviction in any country.

“This terrorist leader can no longer be allowed to live free as MS-13’s evil devastates communities in America and throughout the western hemisphere,” said Attorney General Pamela Bondi. “If you can contribute information leading to his arrest – come forward now.”

Archaga Carías remains at large. If you have information, please contact the FBI by email at archaga-carias_tips@fbi.gov, or via WhatsApp at +1-832-267-1688. If you are outside the United States, you may also contact the nearest U.S. Embassy or Consulate. If you are in the United States, you may also contact the local FBI, DEA, or HSI office in your city. Only tips sent to U.S. Government will be considered for reward.

“Dismantling and ultimately eliminating MS-13 continues to be one of the FBI's highest priorities, and we're not stopping until that mission is complete,” said FBI Director Kash Patel. “Alongside our dedicated law enforcement partners, the FBI will find Archaga Carías — a terrorist whose reign of terror at the helm of MS-13 is coming to an end.”

“With MS-13 now officially designated as a Foreign Terrorist Organization, the rules have changed — and so has the mission,” said DEA Acting Administrator Derek Maltz. “Archaga Carías isn't just a fugitive — he's a foreign terrorist waging war on innocent Americans through murder, trafficking, and terror. Let me be clear: under this Administration, we will dismantle MS-13 piece by piece—and anyone protecting him will fall with him. A $5 million is on the table. Turn him in. End this threat.”

A co-defendant, David Campbell, aka “Viejo Dan” and “Don David,” a Honduran national, is currently in custody in the United States facing the charges contained in the superseding indictment. In addition to Archaga Carías and Campbell, the superseding indictment charges three other MS-13 leaders, Juan Carlos Portillo Santos also known as “Juancy;” Victor Eduardo Morales Zelaya also known as “Cuervo;” and Jorge Alberto Velasquez Paz also known as “Chacarron,” with racketeering, narcotics trafficking, and firearms offenses. Portillo Santos, a Honduran national, is in custody in Honduras serving a lengthy prison sentence. Morales Zelaya and Velasquez Paz, both Honduran nationals, remain at large. The case is assigned to U.S. District Court Judge Gregory H. Woods for the Southern District of New York.   

“MS-13 remains one of the most dangerous criminal organizations in the world, and the recent designation of MS-13 as a Foreign Terrorist Organization underscores this reality,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York. “This Office, working closely with our law enforcement partners, will continue to investigate, prosecute and track down MS-13’s leadership, no matter where in the world they may be hiding.”

As alleged in the superseding indictment previously unsealed in Manhattan federal court, Mara Salvatrucha, commonly known as MS-13 is a transnational criminal and foreign terrorist organization that engages in acts of violence, including murders, kidnapping, and assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States. Archaga Carías is the highest-ranking member of MS-13 in Honduras. As the leader and highest-ranking member of MS-13 in Honduras, Archaga Carías is in charge of, among other things, the gang’s drug trafficking operations, ordering and coordinating acts of violence, including numerous murders, and the laundering of drug proceeds. MS-13’s drug trafficking operations led by Archaga Carías include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States.

“President Trump has been very clear — we will not allow criminal groups and their members like Porky to threaten Americans,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs. “We will work with our international partners to find these criminals wherever they may be hiding.”

Archaga Carías and other MS-13 members and associates acting at his direction also provided protection to drug trafficking organizations (DTOs) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States. Archaga Carías contracted out members of MS-13 as “Sicarios,” or hit men, to DTOs for payment. Members of MS-13 committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States. Archaga Carías and MS-13 also supplied DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere. Archaga Carías also ordered multiple murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 whom Archaga Carías believed had been disloyal to the gang.

Campbell was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13. As an associate of MS-13 and close confidant of Archaga Carías, Campbell planned and coordinated retaliatory acts of violence with Archaga Carías, and assisted MS-13 and Archaga Carías in establishing businesses to launder the gang’s drug proceeds. Campbell and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.

Morales Zelaya was a national leader of MS-13 in Honduras and a close associate of Archaga Carías. Morales Zelaya coordinated the gang’s drug trafficking business, acts of violence (including murders) against rivals, and the movement of proceeds from the gang’s illicit activities.

Portillo Santos was a high-ranking member of MS-13 in Honduras who reported to Morales Zelaya. Portillo Santos was responsible for leading MS-13 in one of the largest sectors in Honduras, which included the distribution and movement of large shipments of cocaine, acts of violence (including murders and kidnappings) of rival gang members, and contract murders carried out against rival drug dealers. Campbell, 58, of Honduras, is currently in Federal Bureau of Prisons (FBOP) custody facing the charges in the superseding indictment. Portillo Santos, 36, of Honduras, is currently in custody in Honduras on local charges. Archaga Carías, 43, and Morales Zelaya, 50, of Honduras, remains at large.

If convicted, Archaga Carías faces a maximum penalty of life in prison and a mandatory minimum penalty of 40 years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Joint Task Force Vulcan (JTFV) and the Southern District of New York’s National Security and International Narcotics Unit are handling the case. Assistant U.S. Attorney David J. Robles and Special Assistant U.S. Attorney Christopher Eason, and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are in charge of the prosecution.

This case was brought by JTFV, which was created in 2019 to destroy MS-13 and now expanded to target Tren de Aragua and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; HSI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the FBOP have been essential law enforcement partners and spearheaded JTFV’s investigations.

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

The charges contained in the superseding indictment are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Moments ago, a unanimous jury convicted Nadine Menendez for her critical role in a corruption and foreign influence scheme involving her husband, convicted former Senator Robert Menendez. Nadine Menendez and Senator Menendez were partners in crime. Over the span of five years, Nadine Menendez agreed to accept and accepted all sorts of bribes – including gold bars, cash, a Mercedes-Benz convertible, and a no-show job – all in exchange for the Senator’s corrupt official acts. Together, Nadine Menendez and the Senator placed their own interests and greed ahead of the interests of the citizens the Senator was elected to serve. Today’s verdict sends the clear message that the power of government officials may not be put up for sale, and that all those who facilitate corruption will be held accountable for their actions. I thank the career prosecutors of this Office and the special agents of the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigation for their unwavering commitment to this case, and for their extraordinary efforts in ensuring that justice was done.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against SHYMELL EPHRON, a/k/a “Shy,” on two counts of enticement of a minor to engage in unlawful sexual activity, one count of conspiring to distribute methamphetamine and cocaine, and two counts of distributing methamphetamine to a minor, in a trial before U.S. District Judge Margaret M. Garnett.  EPHRON is scheduled to be sentenced on September 19, 2025.

Acting U.S. Attorney Matthew Podolsky said: “As a unanimous jury found, Shymell Ephron lured two runaway teenagers back to his apartment in Harlem, where he repeatedly raped and sexually abused them for five days while plying them with methamphetamine and alcohol.  Thanks to the FBI and the NYPD, the girls were eventually found and returned to their parents.  I commend these young women for the bravery they showed by testifying at trial.  This Office is committed to keeping the children of New York City safe from sexual predators, and thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, the support of victim services specialists of this Office, and the willingness of the victims to speak up, Ephron has now been convicted for his egregious conduct and will face justice for the harm he caused.” 

As reflected in the evidence presented at trial:

Between approximately May 2024 and July 2024, EPHRON worked with others to distribute narcotics, including methamphetamine and cocaine, in Times Square and other locations in New York City.  On or about May 17, 2024, EPHRON approached two teenage girls in Times Square while he was selling drugs.  The girls had run away from home.  EPHRON convinced the two girls to follow him to his residence in Harlem, where they stayed with EPHRON for several days.

EPHRON engaged in multiple acts of forcible rape, forcible touching, sexual abuse, and illegal sex with a minor while the girls were staying in EPHRON’s apartment.  EPHRON repeatedly provided the girls with methamphetamine, marijuana, and alcohol.  EPHRON also provided a cellphone to the girls to monitor their whereabouts, communicate with them about narcotics, and to persuade, induce, and entice them to return to his apartment each night so he could engage in unlawful sex with them.  Law enforcement agents with the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) eventually rescued the two girls and returned them to their parents.

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EPHRON, 35, of New York, New York, was convicted of two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of narcotics conspiracy, which carries a maximum potential sentence of 20 years in prison; and two counts of distributing narcotics to a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 40 years in prison.

The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.

Mr. Podolsky praised the work of the FBI’s Westchester Safe Streets Task Force and the NYPD.  Mr. Podolsky also thanked the New York State Police and the Yorktown Police Department for their assistance in the investigation.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Ryan W. Allison, Lisa Daniels, Michael R. Herman, and Andrew W. Jones are in charge of the prosecution.

Note: A copy of the Anti-Tren indictment can be found here.

Today, two superseding indictments were unsealed charging 27 individuals currently or formerly associated with the designated foreign terrorist organization Tren de Aragua (TdA) with racketeering conspiracy, sex trafficking conspiracy, drug trafficking conspiracy, robbery, and firearms offenses. The first superseding indictment (the “TdA Indictment”) charges six alleged members of TdA. The second superseding indictment (the “Anti-Tren Indictment”) charges 19 alleged members of “Anti-Tren,” a splinter faction comprised of former TdA members, along with two additional associates of Anti-Tren. Of the 27 defendants, 21 are in federal custody, including 16 who were already in federal criminal, immigration, or state custody and five who were arrested last night and today in operations in New York and other jurisdictions.

“As alleged, Tren de Aragua is not just a street gang – it is a highly structured terrorist organization that has destroyed American families with brutal violence, engaged in human trafficking, and spread deadly drugs through our communities,” said Attorney General Pamela Bondi. “Today’s indictments and arrests span three states and will devastate TdA’s infrastructure as we work to completely dismantle and purge this organization from our country.”

“Today, we have filed charges against 27 alleged members, former members, and associates of Tren de Aragua, for committing murders and shootings, forcing young women trafficked from Venezuela into commercial sex work, robbing and extorting small businesses, and selling ‘tusi,’ a pink powdery drug that has become their calling card,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York.  “Today’s Indictments make clear that this Office will work tirelessly to keep the law-abiding residents of New York City safe, and hold accountable those who bring violence to our streets.”“Tren de Aragua is one of the most dangerous gangs in the country, and the NYPD has taken significant action to shut down their operations in New York City,” said New York City Police Department (NYPD) Commissioner Jessica S. Tisch.  “For the first time ever, TdA is being named and charged as the criminal enterprise that it is. This isn’t just street crime—it’s organized racketeering, and this gang has shown zero regard for the safety of New Yorkers. As alleged in the indictment, these defendants wreaked havoc in our communities, trafficking women for sexual exploitation, flooding our streets with drugs, and committing violent crimes with illegal guns.  Thanks to the dedicated members of the NYPD and the important work of our federal partners, their time is up.”

According to the allegations contained in the Indictments:

The TdA Indictment

TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere. The purposes of TdA included:

• Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
• Enriching the members and associates of TdA through, among other things:
  • The unlawful smuggling of individuals, including young women from Venezuela, into Peru and the United States;
  • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the United States;
  • The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine; and
  • Armed robberies.
• Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
• Promoting and enhancing TdA and the reputation and activities of its members and associates.
• Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
• Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.

Members and associates of TdA transported “multadas” from Venezuela into Peru and the United States in exchange for debts that the “multadas” would pay back to TdA by engaging in commercial sex work. Members of TdA enforced compliance among “multadas” by, among other things:

• Threatening to kill “multadas” and their families,
• Assaulting “multadas,”
• Shooting or killing “multadas,” and
• Tracking down and kidnapping “multadas” who tried to flee.

Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims. TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

The TdA Indictment charges Jarwin Valero-Calderon, also known as “La Fama,” 29; Samuel Gonzalez Castro, also known as “Klei” and “Kley, ” 28; Eferson Morillo-Gomez, also known as “Jefferson” and “Efe Trebol,” 20; Brayan Oliveros-Chero, 28; Sandro Oliveros-Chero, 25; and Armando Jose Perez Gonzalez, also known as “Biblia,” 30, (the “TdA Defendants”) with conspiring to participate in the TdA racketeering enterprise. Various of the TdA defendants are also charged with participating in offenses relating to drug trafficking, carjacking, robbery, and extortion, as well as firearms offenses. This case is assigned U.S. District Judge Denise L. Cote for the Southern District of New York.

If convicted of racketeering conspiracy, Valero-Calderon, Gonzalez Castro, Morillo-Gomez, Brayan Oliveros-Chero, Sandro Oliveros-Chero, and Perez Gonzalez face up to life in prison. If convicted of drug trafficking conspiracy, Valero-Calderon, Brayan Oliveros-Chero, Sandro Oliveros-Chero, and Perez Gonzalez face up to 20 years in prison. If convicted of carjacking conspiracy, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to five years in prison. If convicted of carjacking, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to 15 years in prison. If convicted of Hobbs Act robbery, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to 20 years in prison. If convicted of firearm use, carrying, and possession, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to life in prison with a mandatory minimum sentence of seven years in prison. If convicted of attempted Hobbs Act extortion, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to 20 years in prison. If convicted of firearm use, carrying, and possession – conspiracy, Valero-Calderon, Gonzalez Castro, Morillo-Gomez, Brayan Oliveros-Chero, and Sandro Oliveros-Chero face up to 20 years in prison. If convicted of possession of ammunition by an illegal alien, Brayan Oliveros-Chero faces up to 15 years in prison. If convicted of possession of a firearm and ammunition by an illegal alien, Sandro Oliveros-Chero faces up to 15 years in prison. If convicted of firearm use, carrying, and possession, Perez Gonzalez faces up to life in prison with a mandatory minimum sentence of five years in prison. If convicted of possession of a firearm and ammunition by an illegal alien, Perez Gonzalez faces up to 15 years in prison.

The Anti-Tren Indictment

Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TdA. Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere. Like TdA, the purposes of Anti-Tren included:

• Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TdA.
• Enriching the members and associates of Anti-Tren through, among other things:
  • The unlawful smuggling of individuals, including women and girls from Venezuela, into the United States;
  • The sex trafficking of “multadas” who had been unlawfully smuggled into the United States;
  • The trafficking of controlled substances, including “tusi”; and
  • Armed robberies.
• Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence.
• Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates.
• Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained.
• Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

Like TdA, Anti-Tren engaged in human smuggling and sex trafficking of “multadas,” into the United States in exchange for debts that the “multadas” would pay back by engaging in commercial sex work. And like TdA, members of Anti-Tren enforced compliance among “multadas” by, among other things:

• Threatening to kill “multadas” and their families,
• Assaulting “multadas,”
• Shooting or killing “multadas,” and
• Tracking down and kidnapping “multadas” who tried to flee.

Members of Anti-Tren also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and to expand Anti-Tren’s criminal operations, resolve disputes within Anti-Tren, to retaliate against rival organizations, including Tren de Aragua, and to maintain control over sex trafficking victims. Anti-Tren members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

The Anti-Tren Indictment charges Reinaldo Rafael Gonzales-Valdez, also known as “Mariguana” and “Marijuana,” 41; Jose Manuel Guerrero-Zarate, also known as “Mantequilla,” 29; Jose David Valencia-De La Rosa, 27; Johan Carlos Mujica-Urpin, also known as “Sobrino,” 27; Luis Jose Velasquez-Hurtado, also known as “Chito,” 30; Stefano Said Pachon-Romero, 21; Guillermo Freites Velazquez, 26; Jesus David Barrios Garcia, also known as “Morocho,” 27; Giovanny Valentin Blanco Luciano, also known as “Cachorrito,” 20; Anderson Jesus Duran Berroteran, also known as “Cachorro, ” 22; Roiman Noe Bello Ferrer, 37; Luis Miguel Rodriguez-Tapia, 25; Mario Andres Pereda, also known as “Cara de Hombre,” 44; Anderson Smith Zambrano-Pacheco, 26; Yeferson Alejandro Prieto Galviz, also known as “Flaco T” and“Flacote,” 24; Jhonkennedy Bravo-Castro, also known as  “Negrito,” 27; Yender Maykier Mata, 36; Kellen Alejandro Jaspe Bustamante, 20; and Luis Andres Bello-Chacon, also known as  “Care de Peo,” 31 (the “Anti-Tren Defendants”) with conspiring to participate in an Anti-Tren racketeering enterprise. Various of the Anti-Tren Defendants, along with co-defendants Wilfredo Jose Avendaño Carrizalez and Carlos Gabriel Santos Mogollon, are also charged with participating in offenses relating to sex trafficking, conspiracy to import and harbor aliens, drug trafficking, obstruction of justice, and firearms offenses. This case is assigned U.S. District Judge Mary Kay Vyskocil of the Southern District of New York.

If convicted of racketeering conspiracy, Gonzales-Valdez, Guerrero-Zarate, Valencia-De La Rosa, Mujica-Urpin, Velasquez-Hurtado, Pachon-Romero, Freites Velazquez, Barrios Garcia, Blanco Luciano, Duran Berroteran, Bello Ferrer, Rodriguez-Tapia, Pereda, Zambrano-Pacheco, Prieto Galviz, Bravo-Castro, Maykier Mata, Jaspe Bustamante, and Bello-Chacon face up to life in prison. If convicted of sex trafficking conspiracy, Gonzales-Valdez, Guerrero-Zarate, Valencia-De La Rosa, Mujica-Urpin, Velasquez-Hurtado, Pachon-Romero, Freites Velazquez, Barrios Garcia, Duran Berroteran, Rodriguez-Tapia, Pereda, Zambrano-Pacheco, and Bravo-Castro face up to life in prison. If convicted of alien importation and harboring for immoral purpose – conspiracy, Gonzales-Valdez, Guerrero-Zarate, Valencia-De La Rosa, Mujica-Urpin, Velasquez-Hurtado, Pachon-Romero, Freites Velazquez, Barrios Garcia, Duran Berroteran, Rodriguez-Tapia, Pereda, Zambrano-Pacheco, and Bravo-Castro face up to five years in prison. If convicted of drug trafficking conspiracy, Gonzales-Valdez, Guerrero-Zarate, Mujica-Urpin, Freites Velazquez, Barrios Garcia, Blanco Luciano, Duran Berroteran, Prieto Galviz, Maykier Mata, Jaspe Bustamante, and Bello-Chacon face up to 20 years in prison. If convicted of firearm use, carrying, and possession, Gonzales-Valdez, Guerrero-Zarate, Mujica-Urpin, Freites Velazquez, Barrios Garcia, Blanco Luciano, Zambrano-Pacheco, Prieto Galviz, Maykier Mata, Jaspe Bustamante, and Bello-Chacon face up to life in prison with a mandatory minimum sentence of five years in prison. If convicted of obstruction of justice, Velasquez-Hurtado faces up to 20 years in prison. If convicted of unlicensed dealing of firearms, Pachon-Romero faces up to five years in prison. If convicted of possession of a firearm and ammunition by a fugitive from justice and illegal alien, Zambrano-Pacheco, faces up to 15 years in prison. If convicted of possession of a firearm and ammunition by an illegal alien, Bravo-Castro, Avendaño Carrizalez and Santos Mogollonface up to 15 years in prison.

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

Attorney General Bondi and Acting U.S. Attorney Podolsky praised the outstanding investigative work of HSI and NYPD. They also thanked the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (USMS); the HSI National Gang Unit and New York Human Intelligence Division; ICE’s Enforcement and Removal Operations New York; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

This case received significant support from Joint Task Force Vulcan (JTFV), which was created in 2019 to eradicate MS-13 and now expanded to target Tren de Aragua, and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; the Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; the Southern District of Texas; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; DEA; HSI; ATF; USMS; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). In February 2025, Tren de Aragua was designated a Foreign Terrorist Organization.

Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, and Timothy Ly of the U.S. Attorney’s Office for the Southern District of New York’s Violent and Organized Crime Unit are in charge of the prosecution.

The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Pamela Bondi, the Attorney General of the United States; Kristi Noem, the Secretary of the Department of Homeland Security (“DHS”); Todd M. Lyons, the Acting Director of U.S. Immigration and Customs Enforcement ("ICE"); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today two Superseding Indictments charging 27 individuals currently or formerly associated with the designated foreign terrorist organization Tren de Aragua (“TdA”) with racketeering conspiracy, sex trafficking conspiracy, drug trafficking conspiracy, robbery, and firearms offenses.  The first Superseding Indictment (the “TdA Indictment”) charges six alleged members of TdA.  The second Superseding Indictment (the “Anti-Tren Indictment”) charges 19 alleged members of “Anti-Tren,” a splinter faction comprised of former TdA members, along with two additional associates of Anti-Tren.  Of the 27 defendants, 21 are in federal custody, including 16 who were already in federal criminal, immigration, or state custody and five who were arrested last night and today in operations in New York and other jurisdictions.

Acting U.S. Attorney Matthew Podolsky said: “Today, we have filed charges against 27 alleged members, former members, and associates of Tren de Aragua, for committing murders and shootings, forcing young women trafficked from Venezuela into commercial sex work, robbing and extorting small businesses, and selling ‘tusi,’ a pink powdery drug that has become their calling card.  Today’s Indictments make clear that this Office will work tirelessly to keep the law-abiding residents of New York City safe, and hold accountable those who bring violence to our streets.”

Attorney General Pam Bondi said: “As alleged, Tren de Aragua is not just a street gang – it is a highly structured terrorist organization that has destroyed American families with brutal violence, engaged in human trafficking, and spread deadly drugs through our communities.  Today’s indictments and arrests span three states and will devastate TdA’s infrastructure as we work to completely dismantle and purge this organization from our country.” 

ICE Acting Director Todd M. Lyons said: “We are at the forefront of efforts to identify, disrupt and dismantle transnational criminal gangs like Tren de Aragua from operating in our cities and around the world.  I commend the members of our New York-based Homeland Security Investigations Violent Gang Task Force; without their efforts these indictments wouldn’t be possible.  Together with our partners, ICE HSI is committed to addressing the threats posed by illicit narcotics, weapons and human smuggling networks, and ensuring these violent criminals are prosecuted to the maximum extent of the law.”

NYPD Commissioner Jessica S. Tisch said: “Tren de Aragua is one of the most dangerous gangs in the country, and the NYPD has taken significant action to shut down their operations in New York City.  For the first time ever, TdA is being named and charged as the criminal enterprise that it is.  This isn’t just street crime—it’s organized racketeering, and this gang has shown zero regard for the safety of New Yorkers.  As alleged in the indictment, these defendants wreaked havoc in our communities, trafficking women for sexual exploitation, flooding our streets with drugs, and committing violent crimes with illegal guns.  Thanks to the dedicated members of the NYPD and the important work of our federal partners, their time is up.”

According to the allegations contained in the Indictments:[1]

The TdA Indictment

TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere.  The purposes of TdA included:

• Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
• Enriching the members and associates of TdA through, among other things:
  • The unlawful smuggling of individuals, including young women from Venezuela, into Peru and the U.S.;
  • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the U.S.;
  • The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine; and
  • Armed robberies.
• Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
• Promoting and enhancing TdA and the reputation and activities of its members and associates.
• Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
• Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.

Members and associates of TdA transported “multadas” from Venezuela into Peru and the U.S. in exchange for debts that the “multadas” would pay back to TdA by engaging in commercial sex work.  Members of TdA enforced compliance among “multadas” by, among other things:

• Threatening to kill “multadas” and their families,
• Assaulting “multadas,”
• Shooting or killing “multadas,” and
• Tracking down and kidnapping “multadas” who tried to flee.

Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims.  TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

The TdA Indictment charges JARWIN VALERO-CALDERON, a/k/a “La Fama”; SAMUEL GONZALEZ CASTRO, a/k/a “Klei,” a/k/a “Kley”; EFERSON MORILLO-GOMEZ, a/k/a “Jefferson,” a/k/a “Efe Trebol”; BRAYAN OLIVEROS-CHERO; SANDRO OLIVEROS-CHERO; and ARMANDO JOSE PEREZ GONZALEZ, a/k/a “Biblia” (the “TdA Defendants”) with conspiring to participate in the TdA racketeering enterprise.  Various of the TdA Defendants are also charged with participating in offenses relating to drug trafficking, carjacking, robbery, and extortion, as well as firearms offenses.  This case is assigned U.S. District Judge Denise L. Cote.

The Anti-Tren Indictment

Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TdA.  Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere.  Like TdA, the purposes of Anti-Tren included:

• Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TdA.
• Enriching the members and associates of Anti-Tren through, among other things:
  • The unlawful smuggling of individuals, including women and girls from Venezuela, into the U.S.;
  • The sex trafficking of “multadas” who had been unlawfully smuggled into the U.S.;
  • The trafficking of controlled substances, including “tusi”; and
  • Armed robberies.
• Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence.
• Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates.
• Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained.
• Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

Like TdA,  Anti-Tren engaged in human smuggling and sex trafficking of “multadas,” into the U.S. in exchange for debts that the “multadas” would pay back by engaging in commercial sex work. And like TdA, members of Anti-Tren enforced compliance among “multadas” by, among other things:

• Threatening to kill “multadas” and their families,
• Assaulting “multadas,”
• Shooting or killing “multadas,” and
• Tracking down and kidnapping “multadas” who tried to flee.

Members of Anti-Tren also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and to expand Anti-Tren’s criminal operations, resolve disputes within Anti-Tren, to retaliate against rival organizations, including Tren de Aragua, and to maintain control over sex trafficking victims.  Anti-Tren members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

The Anti-Tren Indictment charges REINALDO RAFAEL GONZALES-VALDEZ, a/k/a “Mariguana,” a/k/a “Marijuana”; JOSE MANUEL GUERRERO-ZARATE, a/k/a “Mantequilla”; JOSE DAVID VALENCIA-DE LA ROSA; JOHAN CARLOS MUJICA-URPIN, a/k/a “Sobrino”; LUIS JOSE VELASQUEZ-HURTADO, a/k/a “Chito”; STEFANO SAID PACHON-ROMERO; GUILLERMO FREITES VELAZQUEZ; JESUS DAVID BARRIOS GARCIA, a/k/a “Morocho”; GIOVANNY VALENTIN BLANCO LUCIANO, a/k/a “Cachorrito”; ANDERSON JESUS DURAN BERROTERAN, a/k/a “Cachorro”; ROIMAN NOE BELLO FERRER; LUIS MIGUEL RODRIGUEZ-TAPIA; MARIO ANDRES PEREDA, a/k/a “Cara de Hombre”; ANDERSON SMITH ZAMBRANO-PACHECO; YEFERSON ALEJANDRO PRIETO GALVIZ, a/k/a “Flaco T,” a/k/a “Flacote”; JHONKENNEDY BRAVO-CASTRO, a/k/a “Negrito”; YENDER MAYKIER MATA; KELLEN ALEJANDRO JASPE BUSTAMANTE; and LUIS ANDRES BELLO-CHACON, a/k/a “Care de Peo” (the “Anti-Tren Defendants”) with conspiring to participate in an Anti-Tren racketeering enterprise.  Various of the Anti-Tren Defendants, along with co-defendants WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON, are also charged with participating in offenses relating to sex trafficking, conspiracy to import and harbor aliens, drug trafficking, obstruction of justice, and firearms offenses.  This case is assigned U.S. District Judge Mary Kay Vyskocil.

*                *                *

A chart containing the names, ages, charges, and maximum penalties for the defendants is set forth below.

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

Mr. Podolsky praised the outstanding investigative work of Homeland Security Investigations (“HSI”) and NYPD.  He also thanked the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); the Homeland Security Investigations National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); and the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

This case received significant support from Joint Task Force Vulcan (“JTFV”), which was created in 2019 to eradicate MS-13 and now expanded to target Tren de Aragua, and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; the Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; the Southern District of Texas; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; DEA; HSI; ATF; USMS; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). In February 2025, Tren de Aragua was designated a Foreign Terrorist Organization.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, and Timothy Ly are in charge of the prosecution.

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

The Tren de Aragua Indictment

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

1

Racketeering

conspiracy

18 U.S.C. § 1962(d)

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,” 29;

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” 28;

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol,” 20;

BRAYAN OLIVEROS-CHERO, 28;

SANDRO OLIVEROS-CHERO, 25; and

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia,” 30

2

Drug trafficking conspiracy

21 U.S.C. §  846

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

BRAYAN OLIVEROS-CHERO,

SANDRO OLIVEROS-CHERO, and

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia”

3

Carjacking conspiracy

18 U.S.C. § 371

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

4

Carjacking

18 U.S.C. § 2119

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

5

Hobbs Act robbery

18 U.S.C. §§  1951 and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

6

Firearm use, carrying, and possession

18 U.S.C. §§  924(c)(1)(A)(i) and (ii), and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

Life in prison

Mandatory minimum sentence of 7 years in prison

7

Attempted Hobbs Act extortion

18 U.S.C. §§  1951 and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

8

Firearm use, carrying, and possession – conspiracy

18 U.S.C. §  924(o)

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

9

Firearm use, carrying, and possession – conspiracy

18 U.S.C. §  924(o)

BRAYAN OLIVEROS-CHERO, and

SANDRO OLIVEROS-CHERO

10

Firearm use, carrying, and possession

18 U.S.C. §  924(c)(1)(A)(i) and 2

BRAYAN OLIVEROS-CHERO, and

SANDRO OLIVEROS-CHERO

11

Possession of ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

12

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

13

Firearm use, carrying, and possession

18 U.S.C. §§  924(c)(1)(A)(i) and 2

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia,”

Life in prison

Mandatory minimum sentence of 5 years in prison

14

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia,”

The Anti-Tren Indictment

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

1

Racketeering

conspiracy

18 U.S.C. § 1962(d)

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a “Mariguana,” 

     a/k/a “Marijuana,” 41;

JOSE MANUEL GUERRERO-ZARATE,

     a/k/a “Mantequilla,” 29;

JOSE DAVID VALENCIA-DE LA ROSA, 27;

JOHAN CARLOS MUJICA-URPIN,

      a/k/a “Sobrino,” 27;

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,” 30;

STEFANO SAID PACHON-ROMERO, 21;

GUILLERMO ENRIQUE FREITES-VELAZQUEZ, 26;

JESUS DAVID BARRIOS GARCIA,

     a/k/a “Morocho,” 27;

GIOVANNY VALENTIN BLANCO LUCIANO,

     a/k/a “Cachorrito,” 20;

ANDERSON JESUS DURAN BERROTERAN,

     a/k/a “Cachorro,” 22;

ROIMAN NOE BELLO FERRER, 37;

LUIS MIGUEL RODRIGUEZ-TAPIA, 25;

MARIO ANDRES PEREDA,

     a/k/a “Cara de Hombre,” 44;

ANDERSON SMITH ZAMBRANO-PACHECO, 26;

YEFERSON ALEJANDRO PRIETO GALVIZ,

     a/k/a “Flaco T,” 

     a/k/a “Flacote,” 24;

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito,” 27;

YENDER MAYKIER MATA, 36;

KELLEN ALEJANDRO JASPE BUSTAMANTE, 20; and

LUIS ANDRES BELLO-CHACON,

    a/k/a “Care de Peo,” 31

2

Sex trafficking conspiracy

18 U.S.C. § 1594(c)

REINALDO RAFAEL GONZALES-VALDEZ, 

      a/k/a “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

      a/k/a “Mantequilla,”  

JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN, 

      a/k/a “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

      a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

      a/k/a “Morocho,”

ANDERSON JESUS DURAN BERROTERAN,        a/k/a “Cachorro,”

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA, 

      a/k/a “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO, and

JHONKENNEDY BRAVO-CASTRO,

      a/k/a “Negrito”

3

Alien importation and harboring for immoral purpose – conspiracy

18 U.S.C. § 371

REINALDO RAFAEL GONZALES-VALDEZ, 

      a/k/a “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

      a/k/a “Mantequilla,” JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN, 

      a/k/a “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

      a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

      a/k/a “Morocho,”

ANDERSON JESUS DURAN BERROTERAN,        a/k/a “Cachorro,”

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA, 

      a/k/a “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO, and

JHONKENNEDY BRAVO-CASTRO,

      a/k/a “Negrito”

4

Drug trafficking conspiracy

21 U.S.C. §  846

REINALDO RAFAEL GONZALES-VALDEZ,

      a/k/a “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

      a/k/a “Mantequilla,”  

JOHAN CARLOS MUJICA-URPIN, 

      a/k/a “Sobrino,”

GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

      a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO, 

      a/k/a “Cachorrito,”  

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,        a/k/a “Flaco T,” a/k/a “Flacote,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON, 

      a/k/a “Care de Peo”

5

Firearm use, carrying, and possession

18 U.S.C. §§ 924(c)(1)(A)(i) and 2

REINALDO RAFAEL GONZALES-VALDEZ,

      a/k/a “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

      a/k/a “Mantequilla,”  

JOHAN CARLOS MUJICA-URPIN, 

      a/k/a “Sobrino,”

GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

      a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO, 

      a/k/a “Cachorrito,”  

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,        a/k/a “Flaco T,” a/k/a “Flacote,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON, 

           a/k/a “Care de Peo”

Life in prison

Mandatory minimum sentence of 5 years in prison

6

Obstruction of justice

18 U.S.C. §§ 1512(c) and 2

LUIS JOSE VELASQUEZ-HURTADO,

      a/k/a “Chito,”

7

Unlicensed dealing of firearms

18 U.S.C. §§   922(a)(1)(A) and 2

8

Possession of a firearm and ammunition by a fugitive from justice and illegal alien

18 U.S.C. §§ 922(g)(2) and (5), and 2

9

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

JHONKENNEDY BRAVO-CASTRO,

           a/k/a “Negrito,”

10

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

WILFREDO JOSE AVENDAÑO CARRIZALEZ, 26; and

CARLOS GABRIEL SANTOS MOGOLLON, 31

[1] The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that NICOLE TORRES, an elected district leader in the Bronx and former employee of the New York City Board of Elections, (the “NYC-BOE”), pled guilty today to conspiracy to commit extortion and mail fraud for illegally demanding payments from Bronx residents in exchange for selecting those individuals as poll workers and for agreeing with others to falsify documents to make it appear that certain individuals had worked as poll workers when they had not.  TORRES pled guilty before U.S. District Judge Mary Kay Vyskocil.

Acting U.S. Attorney Matthew Podolsky said: “For five years, Nicole Torres abused her position of public trust as an elected official and City employee by taking bribes and falsifying records in connection with the selection and placement of poll workers in the Bronx.  Today’s plea highlights this Office’s commitment to rooting out corruption in local government, and to protecting the integrity of poll workers and our elections.”

According to the allegations contained in the Indictment:

From at least 2019 through at least 2024, TORRES was a district leader for New York’s 81st Assembly District in the Bronx, New York.  In addition, from at least 2016 through at least 2024, TORRES was an employee of the NYC-BOE.  While working at the NYC-BOE, TORRES had, at times, been responsible for ensuring that poll workers were paid for their work during early voting and election day. TORRES abused her power as a district leader and a NYC-BOE employee to engage in two illegal schemes. 

First, from at least 2019 through August 2024, TORRES agreed to require and required Bronx residents to pay a sum of money, usually $150, either to her or to a local organization (the “Bronx Organization”) in exchange for TORRES selecting those individuals as poll workers for upcoming elections.  Both the Bronx Organization and TORRES profited from the scheme.  TORRES personally obtained at least approximately $28,000 in illegal payments.  TORRES received the payments, often in the amount of $150, through mobile payment applications, money orders, and checks.  In certain instances, TORRES received money orders or checks that were written out to the Bronx Organization, and TORRES altered the payee line on those money orders or checks to say “Nicole Torres” so that she could deposit that money into her personal bank account. 

Second, from at least 2018 through August 2024, TORRES agreed to falsify the Forms Booklet—which is a NYC-BOE record in which poll workers record their attendance at a particular poll site—to make it appear that certain individuals (the “NoShow Poll Workers”) worked as poll workers during early voting and election day when, in truth and fact, and as TORRES well knew, those individuals did not work on those dates.  TORRES often worked with coordinators who oversaw the Forms Booklets at specific poll sites.  These coordinators signed in No-Show Poll Workers in the Forms Booklets, frequently at TORRES’s direction. TORRES and her coconspirators then received the salaries for the NoShow Poll Workers—sometimes through the mail—and split the fraudulently obtained salaries among themselves.  Based on her participation in the scheme, TORRES personally obtained at least approximately $36,000 in fraud proceeds.   

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TORRES, 44, of the Bronx, New York, pled guilty to one count of conspiracy to commit extortion under color of official right and one count of conspiracy to commit mail fraud, which each carry a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  TORRES is scheduled to be sentenced by Judge Vyskocil on July 8, 2025. 

Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Department of Investigation. 

The case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Benjamin M. Burkett and Rebecca T. Dell are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that GHISLAINE BARRIENTOS, a former corrections officer, was sentenced today to six months in prison, to be followed by six months of home detention, for her participation in a scheme to accept bribes in exchange for smuggling narcotics and other contraband into Rikers Island.  BARRIENTOS previously pled guilty before U.S. District Judge Gregory H. Woods, who imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “Ghislaine Barrientos smuggled drugs and other contraband into Rikers Island in exchange for more than ten thousand dollars in bribes. Barrientos not only abused her position of public trust as a corrections officer, she made Rikers Island less safe for inmates and officers alike.  Corrupt corrections officers have no place in our jail facilities, and this Office will continue to work to rid our jails of those who take advantage of their positions to enrich themselves.”

As reflected in the Complaint, Information, and statements made in court:

BARRIENTOS, a former New York City Department of Correction (“DOC”) correction officer, conspired with others to smuggle contraband, including cocaine, smokeable synthetic cannabinoids (known as “K2”), and food to inmates housed at the Robert N. Davoren Complex on Rikers Island in exchange for thousands of dollars in bribe payments.

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In addition to the prison sentence, BARRIENTOS, 37, of Mount Vernon, New York, was ordered to forfeit $11,866.

Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Department of Investigation.

This case is being handled by the Office’s Public Corruption and Narcotics Units.  Assistant U.S. Attorney Jeffrey Coyle is in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Michael Alfonso, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging RALPH WALLACE, a/k/a “Chase,” a/k/a “Prize,” with sex trafficking multiple women by force, fraud, and coercion.  WALLACE was arrested this morning in Fort Lee, New Jersey, and will be presented before U.S. Magistrate Judge Sarah L. Cave in Manhattan federal court.  The case has been assigned to U.S. District Judge Lewis J. Liman. 

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Ralph Wallace systematically exploited and abused women, using horrific violence to force women to engage in prostitution against their will.  Together with our law enforcement partners, we will relentlessly pursue those who engage in sex trafficking.  If you have been a victim of the alleged crimes perpetrated by Wallace, we urge you to come forward by contacting 1-877-4-HSI-TIP.”

HSI Acting Special Agent in Charge Michael Alfonso said: “This defendant’s arrest signals the beginning of a long journey toward freedom for women who for years have endured unimaginably cruel violence and abuse.  Today’s charges are a direct result of these victims’ continued strength, despite Ralph Wallace’s alleged inhumane treatment and manipulation.  I thank them for their bravery when faced with the unknown, and pledge that HSI New York and our law enforcement partners will do everything in our power to ensure justice is served.” 

According to the allegations contained in the Indictment:[1]

Between at least in or about 2021 and in or about 2025, WALLACE, a self-declared “pimp,”  recruited multiple women to engage in commercial sex for his personal benefit and enrichment.  WALLACE took nude photographs of the women and posted advertisements.  He instructed the women how to dress, how to act, and how much to charge and then he took all of the proceeds.

On multiple occasions, including when women did not want to engage in commercial sex, WALLACE used violence and coercion to force them to continue doing so.  This included, for example, beating, punching, choking, and dragging women on multiple occasions.  WALLACE also withheld from the women money for basic necessities, such as food and toiletries, unless they agreed to continue engaging in commercial sex on his behalf.

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WALLACE, 36, of the Bronx, New York, is charged with two counts of sex trafficking by force, fraud, or coercion, each carrying a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison, and one count of transportation to engage in prostitution, which carries a maximum sentence of 10 years in prison.   

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

Mr. Podolsky praised the outstanding investigative work of the HSI New York/New York City Police Department Human Trafficking Task Force.

If you believe you are victim of a crime perpetrated by WALLACE, please contact HSI at Sextrafficking_outreach@hsi.dhs.gov or via their mobile tip-line at 1-877-4-HSI-TIP and reference this case.

This case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Madison Reddick Smyser and Getzel Berger are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.