Southern District of New York

Matthew Podolsky, the Acting 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 an Indictment charging ALBERT SANIGER, the former Chief Executive Officer of Nate, Inc. (“nate”), with engaging in a scheme to defraud investors and prospective investors of nate by making false and misleading statements about nate’s use of proprietary AI technology and its operational capabilities. 

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed. This type of deception not only victimizes innocent investors, it diverts capital from legitimate startups, makes investors skeptical of real breakthroughs, and ultimately impedes the progress of AI development. This Office and our partners at the FBI will continue to pursue those who seek to harm investors by touting false innovation.” 

FBI Assistant Director in Charge Christopher G. Raia said: "Albert Saniger allegedly defrauded investors with fabrications of his company's purported artificial intelligence capabilities while covertly employing personnel to satisfy the illusion of technological automation. Saniger allegedly abused the integrity associated with his former position as the CEO to perpetuate a scheme filled with smoke and mirrors. The FBI will continue to investigate any business owner who withholds material information to encourage additional investments." 

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

In or about 2018, SANIGER founded nate, an e-commerce company that launched the nate app. SANIGER marketed the nate app as a universal shopping cart app that simplified online shopping by enabling users to “skip the checkout” on retail website by reducing the checkout process to a “single tap.” For example, if a consumer found a pair of sneakers that they wanted to purchase on a particular e-commerce site, the user could buy the sneakers by opening the nate app and clicking “buy.” The nate app purported to take care of the remainder of the checkout process through AI: selecting the appropriate size, entering billing and shipping information, and confirming the purchase.

Nate distinguished itself from other e-commerce companies and apps through a single defining feature: the ability to intelligently and quickly complete retail transactions across all e-commerce sites through the use of AI technology. SANIGER repeatedly told investors and the public that the company’s app used proprietary AI technology to autonomously complete online purchases on behalf of users.

Based on representations about nate’s use of AI, SANIGER solicited investments from venture capital firms. In pitch materials transmitted to investors, SANIGER touted the company’s use of AI and represented that nate was “able to transact online without human intervention.” As prospective investors conducted due diligence, SANIGER repeatedly represented that—except for certain “edge cases” in which the AI failed to complete a customer transaction—the nate app was fully automated based on AI.

In reality, nate did not use AI to autonomously navigate the checkout process of e-commerce websites and complete purchases on behalf of users. While SANIGER had acquired AI technology from a third party and hired a team of data scientists to develop it, nate’s AI never achieved the ability to consistently complete e-commerce purchases. As SANIGER knew, at the time nate was claiming to use AI to automate online purchases, the app’s actual automation rate was effectively zero percent. SANIGER concealed that reality from investors and most nate employees: he told employees to keep nate’s automation rate secret; he restricted access to nate’s “automation rate dashboard,” which displayed automation metrics; and he provided false explanations for his secrecy, such as the automation data was a “trade secret.”

In truth, nate relied heavily on teams of human workers—primarily located overseas—to manually process transactions in secret, mimicking what users believed was being done by automation. SANIGER used hundreds of contractors, or “purchasing assistants,” in a call center located in the Philippines to manually complete purchases occurring over the nate app. In or about the fall of 2021, with the busy holiday shopping approaching, and despite his numerous prior representations that nate did not use bots (or “dumb bots”, as he referred to them), SANIGER directed nate’s engineering team to develop “bots” to automate some transactions on the nate app.  After creating the bots, nate used bots in addition to the manual teams to complete purchases that were purportedly being completed by AI technology.

SANIGER raised more than $40 million from multiple investors based in part on his representations to investors about nate’s development and deployment of AI.

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SANIGER, 35, of Barcelona, Spain, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which also carries a maximum sentence of 20 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. Podolsky praised the outstanding investigative work of the Special Agents from the FBI.  Mr. Podolsky 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 and the Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Alexandra Messiter, and Sarah Mortazavi 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 descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that HERMAN CALVIN BRIGHTMAN, a/k/a “Nazir Griffiths,” a/k/a “Nazir Luckett,” was sentenced today to 10 years in prison for repeatedly stalking and assaulting several women he met online while posing as a nurse.  BRIGHTMAN previously pled guilty to traveling in interstate commerce to commit a crime of violence and sending interstate threats.  U.S. District Judge John P. Cronan imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “Herman Brightman preyed on women he met through online dating websites. By posing as a nurse, Brightman earned the trust of his victims, and then stalked, assaulted, and threatened them. With today’s lengthy prison sentence, Brightman can no longer inflict pain or fear in his victims. I commend the brave women who spoke out against Brightman to ensure that he was held accountable for his crimes.”

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

From at least January 2022 through September 2023, BRIGHTMAN used social media platforms such as Facebook and the dating application Hinge to meet, and occasionally date, women under false pretenses. Specifically, BRIGHTMAN often used an alias, created false identities for himself, and posed as a nurse or nurse practitioner working at New York City-area hospitals.  To convince women of his lies, BRIGHTMAN sent pictures and videos of himself wearing scrubs and lab coats, some examples of which are included below:

Shortly after he began dating his victims, BRIGHTMAN began to act violently towards them, especially when they attempted to end the relationship.  Court filings detailed how BRIGHTMAN brutalized at least four such women.

In July 2022, BRIGHTMAN traveled from New Jersey to the Bronx, where he brandished a knife at a woman (“Victim-1”) and her minor child, after Victim-1 decided to break up with him.  BRIGHTMAN then forced Victim-1 and her child to travel from Westchester County to BRIGHTMAN’s home in New Jersey.  Upon arriving at BRIGHTMAN’s residence, BRIGHTMAN threatened Victim-1 if she tried to escape.  Eventually, Victim-1 was able to call 911, and police officers arrived and freed her and her child from BRIGHTMAN’s apartment.

In August 2023, BRIGHTMAN brutally attacked and held at knifepoint a Queens woman he had been dating (“Victim-2”).  The attack occurred inside Victim-2’s home, and BRIGHTMAN threatened to use the knife to “gut” Victim-2 “like a fish.”  BRIGHTMAN also bound Victim-2’s hands and attempted to tape Victim-2’s mouth.  Approximately one week after this incident, Victim-2 ended her relationship with BRIGHTMAN. In the 24 hours that followed, BRIGHTMAN called Victim-2 over 20 times, including from private blocked numbers.  During one phone call, BRIGHTMAN repeatedly threatened Victim-2. 

In early September 2023, BRIGHTMAN traveled from New Jersey to the Bronx and lured a third woman he was dating (“Victim-3”) to his car.  While in BRIGHTMAN’s car, BRIGHTMAN forced Victim-3 to call Victim-2.  BRIGHTMAN then punched Victim-3, leaving a bruise on her arm.  When Victim-3 attempted to escape, BRIGHTMAN chased after her and put her in a choke hold.  Victim-3 was eventually able to run into her building and call the police. 

Several days later, BRIGHTMAN confronted Victim-3 while she was waiting for a bus home from work.  During the confrontation, BRIGHTMAN repeatedly asked Victim-3 if she had contacted the police about him.  BRIGHTMAN then followed Victim-3 home, where BRIGHTMAN assaulted her again, pushing Victim-3 to the ground and throwing a traffic cone at her.

In or about late September 2023, BRIGHTMAN traveled to the Bronx and convinced a fourth woman (“Victim-4”), who had previously ended her relationship with BRIGHTMAN, to allow him into her home.  Inside Victim-4’s home, BRIGHTMAN assaulted and strangled Victim-4, leaving her with bruising on her neck.  BRIGHTMAN also repeatedly threatened to kill Victim-4 and watched her while she showered. Victim-4 was discretely able to contact a friend, who eventually arrived at the apartment and helped free her.

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In addition to his prison term, BRIGHTMAN, 31, of New Jersey, was sentenced to three years of supervised release.

Mr. Podolsky praised the outstanding investigative work of the New York City Police Department. 

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Ni Qian, Patrick Moroney, and Elizabeth Daniels are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that CALVIN DARDEN, JR., was sentenced to 151 months in prison by U.S. District Judge Vernon S. Broderick for defrauding former National Basketball Association (“NBA”) players Dwight Howard and Chandler Parsons out of $8 million.  DARDEN was previously convicted at trial of conspiracy to commit wire and bank fraud, wire fraud, bank fraud, conspiracy to launder money, and money laundering.

Acting U.S. Attorney Matthew Podolsky said: “Calvin Darden, Jr., stole millions of dollars from former NBA players and used the money to buy a mansion, a fleet of luxury cars, and expensive artwork.  This conviction—his third—and sentence make clear that severe consequences await those who take advantage of others by fraud.” 

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

In the fraud against Howard, DARDEN, JR. deceived Howard into sending him $7 million, purportedly for the purpose of buying the Atlanta Dream (the “Dream”), a team in the Women’s National Basketball Association.  DARDEN, JR. worked with Charles Briscoe, Howard’s agent to perpetrate the fraud.  DARDEN, JR. sent a “Vision Plan” to Howard about the purported purchase of the Dream.  The Vision Plan falsely claimed that a number of celebrities and companies—including Tyler Perry, Issa Rae, Naomi Osaka, Aflac, and Starbucks—had agreed to be advisors to the Dream or to sponsor the Dream after Howard purchased it. In truth and in fact, those individuals and companies had never agreed to be advisors or corporate sponsors to the Dream and many had never even heard of DARDEN, JR. or any purported plan by DARDEN, JR. to purchase the Dream.

DARDEN, JR.’s father (“Relative-1”) is a prominent businessman.  DARDEN, JR. repeatedly impersonated Relative-1 in an attempt to add credibility to his fraud scheme.

DARDEN, JR. directed Howard to send the $7 million to a shell company he controlled, in order to effectuate the purported purchase of the Dream.  DARDEN, JR. then laundered the money through a number of different bank accounts he controlled.  DARDEN, JR. did not spend any money on the purchase of the Dream.  Instead, he spent the money on a $3.7 million mansion, a Rolls-Royce, a Lamborghini, a Porsche, artwork by Jean-Michel Basquiat, and other luxury goods for himself.

Howard learned that he did not in fact own the Dream only when ESPN reported that the Dream had in fact been sold to someone else.

In the fraud against Parsons, DARDEN, JR. deceived Parsons into sending him $1 million, purportedly for the purpose of loaning the money to James Wiseman, a prospect in the 2020 NBA draft.  DARDEN, JR. and Briscoe falsely claimed to know Wiseman, and forged a document stating that Wiseman had agreed that Briscoe would be his agent in order to convince Parsons to send the money.  In truth and in fact, DARDEN, JR. and Briscoe did not know Wiseman and did not send any of the money to Wiseman.  Instead, DARDEN, JR. spent his cut of the fraud proceeds on watches, a Mercedes, and other personal expenses.

DARDEN, JR. was previously convicted of fraud in New York state in 2005.  He was also convicted of fraud in the Southern District of New York in 2015. In the 2015 case, DARDEN, JR. committed frauds involving a purported purchase of Maxim magazine and a purported NBA exhibition game in Taiwan.  In that prior fraud, DARDEN, JR. also impersonated Relative-1 in an attempt to add credibility to his fraud scheme.

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In addition to the prison term, DARDEN, JR., 50, of Atlanta, Georgia, was sentenced to five years of supervised release.   DARDEN, JR. was ordered to forfeit $8,000,000 and a number of other items, including a Lamborghini, a Rolls-Royce, $600,000 of artwork by Jean-Michel Basquiat, and an Atlanta mansion.  DARDEN, JR. was also ordered to make restitution in the amount of $8,000,000.

Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Kevin Mead, Brandon C. Thompson, and William C. Kinder are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that JONATHAN DELAURA, a/k/a “Jon Dulak,” was sentenced yesterday by U.S. District Judge Kenneth M. Karas to 485 months in prison for receiving, distributing and possessing child pornography, sending obscene material to a fifteen-year-old boy, and sending that obscene material while being a person required by law to register as a sex offender. DELAURA previously pled guilty on July 1, 2024. 

Acting U.S. Attorney Matthew Podolsky said: “DeLaura possessed large quantities of child pornography and took advantage of a fifteen-year-old child, all while he was required by law to register as a sex offender. This case underscores the urgent need for law enforcement to continue its efforts to protect children from those who prey on them.  As yesterday’s sentencing demonstrates, we will use every tool available to prosecute and punish those who sexually exploit children.” 

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

On or about October 7, 2009, DELAURA was convicted, upon a guilty plea, of Sexual Misconduct: Engage in Oral/Anal Sexual Conduct Without Consent, in Bronx County Court.  He was sentenced on December 16, 2009 to a term of 60 days’ in prison and six years’ probation, and he was required to register with the New York State Sex Offender Registry.

In December 2010, following DELAURA’s violation of probation, he was resentenced to a term of one year in prison.  He was released from prison in April 2011.

From at least on or about May 5, 2011, through on or about May 10, 2011, DELAURA received and distributed files containing images and videos of child pornography, in Westchester County, using a file-sharing program. 

In or about November 2011, DELAURA contacted a 15-year-old boy (the “Victim”) in an Internet chat room claiming to be a 17-year-old girl and using the screen name “sillyrabbit.”  After an exchange of messages, DELAURA sent sexually explicit photographs to the Victim. Thereafter, DELAURA met the Victim on two occasions and engaged in sexual activity with him.  On February 2, 2012, when DELAURA tried to meet the Victim for a third time to engage in sexual activity, he was arrested by officers of the Putnam County Sheriff’s Department (“PCSD”).  After DELAURA was arrested, a search warrant was executed at his residence and PCSD officers recovered an iPod, which contained approximately 162 videos containing images of child pornography and approximately 5 still photos of images containing child pornography.  The iPod also contained the sexually explicit photographs DELAURA sent to the Victim.

On February 3, 2012, DELAURA was convicted of two counts of Criminal Sexual Act in the 3rd degree in Putnam County Court and sentenced to a term of 32 months to 8 years in prison.  DELAURA completed that sentence on January 2, 2020, and has been incarcerated on the federal charges since then.

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In addition to the prison term, DELAURA, 50, was sentenced to ten years of supervised release.

Mr. Podolsky praised the efforts of Homeland Security Investigations, the Putnam County Sheriff’s Department, the Yorktown Police Department, the Putnam County District Attorney’s Office, the Westchester County District Attorney’s Office, and the Edison Police Department in New Jersey in connection with this investigation. 

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.   

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JERRIN PENA, a/k/a “Rooga,” a/k/a “Perry,” was sentenced yesterday to 25 years in prison for his participation in several acts of violence as a member of the Own Every Dollar (“OED”) gang, including the April 14, 2019, murder of Hector Cruz.  PENA previously pled guilty to racketeering conspiracy, assault with a dangerous weapon, Hobbs Act robbery, discharging a firearm in furtherance of Hobbs Act robbery, narcotics conspiracy, and firearms trafficking.  U.S. District Judge J. Paul Oetken imposed yesterday's sentence.

Acting U.S. Attorney Matthew Podolsky said: “Jerrin Pena, a leader of the violent OED gang, murdered an innocent bystander, Hector Cruz, while trying to shoot at a rival gang member on April 14, 2019.  Then, when in federal custody on these charges, Pena stabbed another inmate in an attempt to kill him. Yesterday’s lengthy prison sentence hopefully brings some measure of comfort to the family of Hector Cruz, and reinforces this Office’s commitment to ending gang violence throughout New York City.”

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

PENA was a leader of the violent OED gang, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan.  The indictments in this case charge 24 members and associates of OED with numerous violent crimes, including five murders and 15 attempted murders.

On April 14, 2019, in the early evening, PENA and others drove to West 135th Street in Manhattan to shoot at members of a rival gang.  PENA exited the car and shot at a rival gang member on West 135th Street and Amsterdam Avenue. He missed the rival gang member, but struck bystander Hector Cruz—then age 57—in the liver. Cruz died of the gunshot wound approximately one month later.

PENA also committed an attempted murder on February 28, 2023, when he and several other inmates stabbed another inmate in the Metropolitan Detention Center; committed a gunpoint robbery of a drug dealer on January 22, 2022, in the vicinity of Riverside Drive and West 145th Street in Manhattan; conspired to traffic more than four kilograms of fentanyl; and trafficked firearms from Pennsylvania to New York.

16 other defendants have previously pled guilty in the case.

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In addition to his prison term, PENA, 23, of New York, New York, was sentenced to five years of supervised release.

Mr. Podolsky praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.

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

Matthew Podolsky, the Acting 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 RANDY MILLER, former Chairman and President of Legacy Sports, and his son, CHAD MILLER, former CEO of Legacy Sports, with engaging in a scheme to defraud investors of more than $280 million in two municipal bond offerings. RANDY MILLER and CHAD MILLER were arrested today and will be presented tomorrow in the U.S. District Court for the District of Arizona. The case has been assigned to U.S. District Judge Lewis A. Kaplan. 

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Randy Miller and Chad Miller swindled investors out of over a quarter of a billion dollars by selling municipal bonds they knew were backed by forgeries and lies. Municipal bonds fund critical public projects and investors rely on accurate financial disclosures to make informed decisions. This Office is committed to protecting the integrity of the public finance system. When individuals abuse that system and investors’ trust, we will hold them accountable.”

FBI Assistant Director in Charge Christopher G. Raia said: “Fathers and sons have found shared bonds in sports for generation. Randy and Chad Miller allegedly chose to use a planned sports complex as a means to exploit and defraud investors.  The Millers allegedly executed the scheme using fraudulent documents to lie about the status of the proposed project in order to raise hundreds of millions of dollars which they used to enrich themselves.  The FBI will continue to ensure a level playing field by holding fraudsters accountable in the criminal justice system.”

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

From November 2019 through May 2023, RANDY MILLER and CHAD MILLER engaged in a scheme to defraud investors in municipal bonds used to fund the development of a major sports complex in Mesa, Arizona called Legacy Park. The defendants worked together and with others to lie to potential bond 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 used some of the proceeds to pay for personal expenses such as a home and SUVs. The defendants also paid themselves inflated salaries and withdrew hundreds of thousands of dollars in addition to their salaries.

While the defendants enriched themselves, Legacy Park struggled to survive. The park opened in 2022, but within months failed to generate enough revenue to make the monthly bond payments, and by October 2022 it was in default. On May 1, 2023, the project filed for bankruptcy and was later sold 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. Accordingly, because of the defendants’ fraud, bondholders were left with near total losses.

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RANDY MILLER, 70, and CHAD MILLER, 41, both of Phoenix, Arizona, were both charged in the Indictment with one count of conspiracy to commit wire fraud and securities fraud, which carries a maximum term of five years in prison; one count of securities fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.

The mandatory minimum and 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 a judge. 

Mr. Podolsky praised the outstanding work of the FBI. Mr. Podolsky 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 Courtney L. Heavey and Matthew R. Shahabian are in charge of the prosecution.

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

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that BRIAN CORDASCO was sentenced to 20 months in prison for participating in a conspiracy to solicit and receive bribes in his role as a Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”).  CORDASCO previously pled guilty on October 8, 2024, before U.S. District Judge Lewis J. Liman, who also imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “As a chief of the Bureau of Fire Prevention, Brian Cordasco was entrusted to protect the people of New York City and to fairly represent their interests.  Instead, he repeatedly abused his position of power by expediting fire inspection services for those who paid him thousands of dollars in bribes.  The sentence imposed today sends a clear message that government officials who betray the public trust to line their own pockets will be met with just punishment.”

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

From 2021 to 2023, CORDASCO repeatedly abused his position as a Chief of the BFP by participating in a scheme 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, CORDASCO used his authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers.  CORDASCO personally profited $57,000 as part of this scheme.  To carry out this conspiracy, CORDASCO lied to his BFP subordinates to justify otherwise improper expediting requests.  CORDASCO also lied to law enforcement when interviewed about his involvement in the scheme. 

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, CORDASCO, 49, of Staten Island, New York, was sentenced to two years of supervised release and ordered to pay forfeiture of $57,000 and a fine of $100,000.

Mr. Podolsky 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.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that BRANDON BECKER, the former CEO of CardReady, LLC (“CardReady”), was sentenced today to seven years in prison for operating a credit card laundering scheme in which BECKER and his co-conspirators stole over $19 million based on false promises that they could reduce thousands of customers’ debt burdens. As part of this scheme, BECKER and his co-conspirators created dozens of sham merchant accounts and false merchant applications, defrauding a credit card processing company and federally insured bank into processing victim payments. BECKER previously pled guilty before U.S. District Judge Loretta A. Preska, who also imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “Over a two-year period, Brandon Becker and his co-conspirators preyed on nearly 20,000 victims who were trying to reduce their debt burdens. Becker tasked co-conspirators at CardReady to recruit straw owners for shell companies, and deceived credit card payment processors into fraudulently processing more than $19 million in stolen funds. With today’s sentence, Becker faces the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes.”

According to the Superseding Indictment, court filings, and statements made in Court:

BECKER was the CEO of CardReady, a Los-Angeles based company acting as a sales agent in the credit card processing industry.  As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, and submitted merchant applications on behalf of those merchants to an Independent Sales Organization (“ISO”), referred to in the Indictment as the “New York ISO.”  The New York ISO then evaluated the merchant applications, and referred acceptable merchant accounts for processing up the chain to Payment Processor-1 and to Bank-1.  Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.

In or about 2012, BECKER negotiated a deal with co-defendant STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”).  Under this deal, CardReady would retain approximately one-third of E.M. Systems’ credit card sale transactions in exchange for providing E.M. Systems access to the credit card processing network.  For roughly the next two years, SHORT and telemarketers working in boiler rooms for E.M. Systems cold-called customers and offered services, including debt consolidation and interest-rate reduction, which were prohibited by the applicable guidelines from Bank-1 and other associated processing entities (the “Guidelines”), and which – as BECKER knew – would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.

In securing payment card processing for E.M. Systems, BECKER concealed that E.M. Systems was the true underlying merchant.  Instead, BECKER and his subordinates and co-conspirators, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”).  The 26 signers for the 26 Sham Merchants typically had no business of their own, and lacked knowledge of E.M. Systems’ business.  In return for signing the paperwork provided to them, the signers were paid a nominal fee from CardReady. 

BECKER and his co-conspirators prepared and coordinated fraudulent merchant applications for each of the Sham Merchants, through merchant applications that falsely described the Sham Merchants to make them look like legitimate independent businesses and to make it more likely that the associated Sham Merchant Account would be approved for processing by the New York ISO, Payment Processor-1, and Bank-1.  The merchant application for each Sham Merchant also concealed the Sham Merchant’s true association with E.M. Systems.

By steering E.M. Systems’s payment processing through these Sham Merchant Accounts, BECKER accomplished a number of fraudulent purposes.  First, the use of these Sham Merchant Accounts made it possible for E.M. Systems and other high-risk merchants to conceal their identities from Payment Processor-1 and Bank-1 and to maintain payment card processing.  This was particularly relevant, as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services.  BECKER then caused CardReady to quickly replace the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of E.M. Systems and other high-risk merchants.  Second, the fraudulent processing scheme enabled E.M. Systems and other high-risk merchants to spread out their charges, refunds, and chargebacks across multiple Sham Merchant Accounts.  This enabled them to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.

BECKER’s use of signers to deceive payment processors was not limited to the E.M. Systems scheme. BECKER and his agents and employees at CardReady systematized the recruitment of over 270 signers and the creation of over 800 Sham Merchant Accounts to be used by more than 30 high risk clients other than E.M. Systems between approximately 2012 and 2016, both before and after the E.M. Systems scheme.

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BECKER, 53, of Los Angeles, California, pled guilty on August 30, 2024, to one count of conspiracy to commit wire fraud and bank fraud.  In addition to the prison sentence, BECKER was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,910,600.05, and forfeiture of $11,405,964.00.

STEVEN SHORT, 48, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud.  On May 2, 2023, SHORT was sentenced to 78 months in prison and three years of supervised release and ordered to pay restitution in the amount of $1,910,600.05 and forfeiture of $8,833,889.69.

Mr. Podolsky praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Vladislav Vainberg and Timothy Capozzi are in charge of the prosecution.

“Today, a unanimous jury found Charlie Javice and Olivier Amar guilty of orchestrating a brazen fraud. Javice, the founder and CEO of Frank, falsely claimed that her company had millions of customers when, in reality, it had just a fraction of that number. She and Amar, the Chief Growth Officer, fabricated data, lied to major financial institutions, and sold their business for $175 million. And while Javice and Amar may have thought that they could lie and cheat their way to a huge payday, their lies caught up with them, and they now stand convicted by a jury of their peers in federal court. 

This Office will continue to pursue financial fraud aggressively and hold accountable those who put greed above honesty. I commend the career prosecutors of this Office and our law enforcement partners who worked tirelessly to bring this case to trial and secure today’s verdict. Thanks to their efforts, Javice and Amar will now pay a steep price for their lies. ”

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that GORAZD FILIMONOVIC and GASPER URBANC, were sentenced to 10 years and 13 years in prison, respectively, for conspiring to import hundreds of kilograms of heroin into the United States.  FILIMONOVIC and URBANC, who are both Slovenian nationals, were sentenced by U.S. District Judge Gregory H. Woods, before whom they previously pled guilty. 

Acting U.S. Attorney Matthew Podolsky said: “Gorazd Filimonovic, Gasper Urbanc, and their co-conspirators agreed to send a staggering amount of heroin to the United States.  The defendants boasted of their connections to other drug traffickers in Europe, and claimed they had experience in trafficking thousands of kilograms of drugs. But today, all of that comes to an end as Filimonovic and Urbanc will serve lengthy prison sentences. This Office, through its longstanding partnership with the DEA’s Special Operations Division, Bilateral Investigations Unit, will continue to prosecute those who seek to harm our communities by flooding our streets with dangerous drugs.” 

As reflected in the Indictment, other filings, and statements made in court:

From at least November 2020 through approximately April 2021, FILIMONOVIC and URBANC conspired to distribute multi-hundred-kilogram quantities of heroin from Austria and elsewhere for importation into the U.S.

The Drug Enforcement Administration (“DEA”) had been investigating FILIMONOVIC, URBANC, and certain of their co-conspirators since at least 2019, when a Confidential Source (the “CS”) identified URBANC as a significant international cocaine trafficker who was responsible for coordinating drug transportation logistics on behalf of a drug trafficking organization (“DTO”).  In a subsequent series of meetings and electronic communications, confidential sources (the “CSes”) negotiated the purchase of large quantities of cocaine and heroin for distribution in the U.S.  FILIMONOVIC, URBANC, and their co-conspirators explained to the CSes that they had experience in the international trafficking of thousands of kilograms of cocaine and heroin and could act as direct conduits to drug production facilities that they controlled.  FILIMONOVIC, URBANC, and their co-conspirators met with the CSes multiple times throughout the world, including in the Czech Republic, Croatia, Slovenia, and Colombia, to coordinate large-scale drug shipments and to discuss alternative routes as they sought methods to evade law enforcement.

After early discussions regarding a potential cocaine shipment, the parties began discussing large scale heroin shipments.  When a CS expressed interest in kilogram-quantity samples of heroin for potential future drug transactions, URBANC informed the CS that he could provide heroin immediately from multiple locations throughout Europe.  By February 2021, FILIMONOVIC, URBANC, and their co-conspirators agreed to supply the CSes with high-quality heroin to be delivered by the DTO to a location in Austria with the understanding that the heroin would then be flown by the CSes from Europe to New York City for further distribution in the United States.

In March 2021, the parties agreed on a price between €18,000 and €19,000  (approximately $21,600 and $22,800 at the time) per kilogram.  Around this time, FILIMONOVIC and a co-conspirator met with one of the CSes and explained how the heroin would be transported, and that the heroin would be exchanged with the CSes in Graz, Austria.  By April 2021, FILIMONOVIC, URBANC, and their co-conspirators agreed to provide up to 135 kilograms of heroin in segments of approximately 30 to 40 kilograms to the CSes in exchange for approximately €2.6 million (approximately $3.1 million at the time).  During meetings in April 2021 and in ensuing encrypted communications, the CSes showed FILIMONOVIC, URBANC, and their co-conspirators that they had secured payment for the heroin.  The parties continued to discuss the proposed heroin transaction until FILIMONOVIC and URBANC were arrested in Croatia on May 21, 2021.

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Mr. Podolsky praised the outstanding efforts of the DEA’s Special Operations Division, Bilateral Investigations Unit as well as the Slovenia National Bureau of Investigation, the Austrian Federal and State Criminal Police, and the Croatian National Police for their assistance.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sam Adelsberg, Matthew J.C. Hellman, and Nicholas S. Bradley, and Special Assistant U.S. Attorney Julie Isaacson are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that PAUL BIELECKI, a/k/a “Paul HRH Saxe-Coburg-Gotha,” a Manhattan-based Franciscan friar, was sentenced to five years in prison for perpetrating a multi-year scheme to obtain donations for a fake medical charity purportedly operating in Beirut, Lebanon.  BIELECKI previously pled guilty to wire fraud on November 11, 2024, before U.S. District Judge Vincent Briccetti, who imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “Paul Bielecki exploited his position as a friar to defraud hundreds of innocent victims. He faked a charity to rake in hundreds of thousands of dollars, and then used these stolen funds to live the high life. But Bielecki’s days of luxury and lies are over. Let today’s sentence be a lesson to all — if you abuse your position of trust to take advantage of others, you will be held accountable.”

According to the Complaint, Information, public court filings, and statements made in court:

BIELECKI is a friar in the Capuchin Order, a Catholic order of priests and brothers, based out of a friary in New York City.  BIELECKI engaged in a fraudulent scheme related to fake medical clinics he claimed to operate in Lebanon.

Specifically, for nearly a decade, BIELECKI fraudulently raised money from victims by falsely claiming that he operated two medical clinics in Lebanon and was raising money for medicine, medical equipment, baby incubators, food, and an ambulance for those clinics.  BIELECKI also lied to victims by falsely stating that he was a physician, vascular surgeon, cardiac surgeon, and/or general surgeon, who had earned multiple Ph.D. degrees, and by falsely claiming to have been badly injured—and his fake clinics badly damaged—by a widely reported August 2020 explosion in Beirut, Lebanon.

BIELECKI reached victims by fraudulently soliciting donations at church masses and through other church events, by appearing as a guest or through advertisements on radio programs and online podcasts, and through various other means, including campaigns on crowdfunding websites.  Through his scheme, BIELECKI fraudulently obtained more than $560,000 in donations from more than 350 victims for his fake medical clinics.  Despite taking a vow of poverty as a friar in the Capuchin Order, BIELECKI used the donations he fraudulently received to fund lavish personal spending, including first-class travel, a $334.40 per month membership at a luxury gym chain, multiple trips to the Hamptons, numerous meals at high-end restaurants, and aesthetic plastic surgery costing thousands of dollars.

If you believe you are a victim of fraud perpetrated by BIELECKI, please contact Special Agent Sean Smyth, U.S. Attorney’s Office for the Southern District of New York, at (914) 993‑1900 or by following the instructions available at https://www.justice.gov/usao-sdny/report-crime. 

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In addition to the prison term, BIELECKI, 48, of New York, New York, was sentenced to three years of supervised release, ordered to pay forfeiture of $563,448, and ordered to pay restitution.

Mr. Podolsky praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service – Criminal Division. Mr. Podolsky also thanked the New York Field Office of U.S. Customs and Border Protection for their assistance in the investigation.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Benjamin Levander and Ryan W. Allison are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JUNYI LIU, a/k/a “Jenny,” pled guilty today to one count of conspiracy to commit health care fraud in connection with a scheme to fraudulently bill insurance providers for acupuncture and physical therapy services that were unnecessary or never performed at medical offices in Manhattan, Brooklyn, and Queens.  LIU, a licensed acupuncturist and leader of this scheme, pled guilty before Chief U.S. District Judge Laura Taylor Swain.

Acting U.S. Attorney Matthew Podolsky said: “Junyi Liu led a fraud scheme in which she and her co-conspirators bilked Medicare and other insurers out of millions of dollars by submitting fraudulent claims for acupuncture and physical therapy services.  Liu took advantage of our health care system—and abused her licensing as an acupuncturist—and she now awaits sentencing for her crime. This Office will continue to work with our law enforcement partners to detect and dismantle fraud schemes, including schemes that seek to siphon money from our health care system.”

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

Between 2018 and 2021, LIU, a licensed acupuncturist, operated medical offices (the “Offices”) from which LIU and her partners fraudulently billed Medicare and other insurance providers (collectively, the “Insurance Providers”) for physical therapy and acupuncture services that were not rendered in the manner represented or not rendered at all.  During the scheme, LIU partnered with other licensed medical professionals, including licensed physical therapists and at least one other licensed acupuncturist (collectively, the “Partners”).  The Partners’ roles in the scheme typically included: allowing the Offices to use their enrollments with the Insurance Providers to submit to the Insurance Providers materially false and fraudulent claims for reimbursement for physical therapy and acupuncture services that were not rendered in the manner represented or were not rendered at all; creating materially false medical documentation, which stated that certain physical therapy and acupuncture services had been rendered, when such services in fact were not rendered in the manner represented or were not rendered at all; and contributing financing for the Offices, including for the payment of cash kickbacks to patients (the “Paid Patients”) to induce those patients to provide their insurance information and receive medically unnecessary and/or non-existent services at the Offices. LIU and certain of the Partners also agreed to give kickbacks, including cash and expensive wine, to employees of Insurance Providers to enable the scheme to continue.

In furtherance of the scheme, LIU employed receptionists, cashiers, marketers, financial and billing personnel, acupuncturists, massagists, and other personnel.  The cashiers distributed tens of thousands of dollars in cash kickbacks to the Paid Patients.  In some instances, these Paid Patients visited the Offices, signed in, and received unnecessary physical therapy and acupuncture services.  In other instances, the Paid Patients visited the Offices, signed a sign-in sheet and other documents, and then left without receiving any services at all.  In yet other instances, the Paid Patients did not visit the Offices at all and instead signed sign-in sheets and other documents brought to them elsewhere. Regardless of whether the Paid Patients received any services or even visited the Offices at all, the conspirators used the Paid Patients’ insurance information to fraudulently bill the Insurance Providers for unnecessary and/or never rendered services.

While LIU and her Partners were defrauding the Insurance Providers of millions of dollars, from April 2020 through September 2021, LIU also engaged in a scheme to obtain COVID-19 unemployment benefits for herself and a family member (the “Family Member”) by fraudulently submitting and causing to be submitted to the New York Department of Labor materially false online applications and certifications for COVID-19 benefits.  Among other things, the applications and/or certifications represented that LIU was unemployed when she continued to operate the Offices for all or nearly all of this period and that LIU’s Family Member was unable to work because of COVID-19 during a five-month period when the Family Member was in China.  In connection with her guilty plea, LIU agreed to pay back the misappropriated COVID-19 unemployment benefits received by her and the Family Member.

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JUNYI LIU, 70, of Great Neck, New York, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison.  As part of her plea agreement with the Government, LIU agreed to pay $23,855,425 in restitution to the Insurance Providers and $40,075 to the New York State Department of Labor.  She additionally agreed to forfeiture of $15,368,171.

In addition to LIU, NOEMI ALGODON, MOHAMED ELMANDOUH, GERARD ESTRELLA, RAMON GARCIA, III, HENLER DATU TAHIL, JONATHAN LAQUI, and MITZY BALDOVINO have also pled guilty in connection with their participation in the health care fraud scheme.   

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

Mr. Podolsky praised the outstanding investigative work of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Office and the New York Field Office of the Internal Revenue Service, Criminal Investigation.  Mr. Podolsky also thanked the New York State Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Labor, Office of Inspector General, for their assistance.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Timothy V. Capozzi and Jerry Fang are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has filed and simultaneously settled a civil fraud lawsuit against COMMUNITY OPTIONS, INC. (“COI”) and COMMUNITY OPTIONS NEW YORK, INC. (“CONY”, and together with COI, the “Defendants” or “Community Options”).

CONY is a New York not-for-profit corporation that, among other things, operates a network of residential and non-residential facilities and programs for adults with developmental or intellectual disabilities throughout the State of New York. As part of its operations, CONY provides Day Habilitation services—which are programs intended to help adults with developmental or intellectual disabilities improve their independence and skills in daily activities. COI is a New Jersey not-for-profit corporation that, among other things, oversees CONY’s operations in New York and provides administrative support, including a centralized billing team that handles CONY’s submission of claims for reimbursement to the New York Medicaid Program. The settlement resolves claims that the Defendants fraudulently billed Medicaid by submitting claims for Day Habilitation services that did not meet applicable requirements, and improperly avoiding the return of overpayments received from the Medicaid program for Day Habilitation services that failed to meet those requirements.

Under the settlement agreement approved today by U.S. District Judge Valerie E. Caproni, the Defendants will pay the U.S. $2,148,540.37 and have admitted and accepted responsibility for certain conduct alleged in the Complaint as further described below. The Defendants have also agreed to pay $2,868,085.74 to the State of New York to resolve the State of New York’s claims, for a total recovery of $5,016,626.11.

In connection with the settlement agreement, the Defendants have also entered into a Corporate Integrity Agreement with HHS-OIG. The Corporate Integrity Agreement requires that the Defendants maintain a compliance program designed to foster adherence to federal health care program requirements and thereby protect the programs, and that they engage an independent organization to review claims they submit to Medicaid to ensure they comply with applicable requirements.

Acting U.S. Attorney Matthew Podolsky said: “Community Options billed Medicaid for services that failed to meet program requirements and retained potential overpayments received from Medicaid when it had an obligation to report and return those funds. Community Options has now admitted and accepted responsibility for its conduct. This Office will continue to ensure that our most vulnerable New Yorkers receive the services they deserve, and that our federal health care programs are protected against fraud and abuse.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate services to patients. The settlement in this case involves a provider that is responsible for a vulnerable population, for which it should be prioritizing quality services.”

As alleged in the Complaint filed in Manhattan federal court:

In order to receive payment from the New York Medicaid Program for the provision of Day Habilitation services, COI was required to ensure that such services were delivered and documented in compliance with applicable program requirements promulgated by the New York State Office for People With Developmental Disabilities (the “OPWDD Requirements”).

However, between January 1, 2017, and September 13, 2024, (the “Relevant Period”), COI failed to maintain adequate policies concerning the provision and documentation of Day Habilitation services consistent with the OPWDD Requirements and failed to adequately train their employees on compliance with the OPWDD Requirements. As a result, COI’s employees failed to document CONY’s provision of Day Habilitation services in accordance with the OPWDD requirements.

COI understood that they were prohibited from submitting claims for reimbursement to New York’s Medicaid program for Day Habilitation services if the OPWDD Requirements were not met. Nonetheless, COI frequently submitted claims to Medicaid for Day Habilitation services that did not meet these requirements.

COI further understood that, as a provider of services under New York’s Medicaid Program, they were required to report and return identified overpayments to the New York Medicaid Program. During the Relevant Period, COI conducted non-routine reviews that identified their receipt and retention of Medicaid overpayments associated with Day Habilitation services. Nevertheless, COI failed to report and return those overpayments to the New York Medicaid Program.

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

• In order to receive payment from the New York Medicaid Program for the provision of Day Habilitation services, the Defendants were required to ensure that such services were delivered and documented in compliance with the OPWDD Requirements.
• During the Relevant Period, the Defendants failed to maintain adequate policies concerning the provision and documentation of Day Habilitation services consistent with the OPWDD Requirements and failed to adequately train their employees on compliance with the OPWDD Requirements. As a result, the Defendants’ employees failed to document CONY’s provision of Day Habilitation services in accordance with the OPWDD Requirements.
• Nonetheless, the Defendants submitted claims for, and received, reimbursement from the New York Medicaid Program for Day Habilitation services that did not meet OPWDD Requirements.
• CONY was required to report and return overpayments associated with Day Habilitation services that did not meet the OPWDD Requirements to the New York Medicaid Program. Nonetheless, when the Defendants conducted non-routine reviews that identified their receipt and retention of overpayments associated with Day Habilitation services, they failed to report and return those overpayments to the New York Medicaid Program. 

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.

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Mr. Podolsky thanked both HHS-OIG for its investigative efforts and assistance with the case, and the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its collaboration in the resolution of this case.

The case is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorney David E. Farber is in charge of the case.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today the unsealing of a Complaint charging KEVIN WILLIAMS and BYRON WILSON with the robbery of a jewelry store in Hartsdale, New York, on December 16, 2024, in which the defendants stole approximately $1.7 million of jewelry. WILLIAMS and WILSON were arrested this morning in New Jersey, and are expected to be presented this afternoon before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Kevin Williams and Byron Wilson, along with their co-conspirators, carried out the violent robbery of a jewelry store in broad daylight. Armed with sledgehammers, the defendants smashed their way in and then plundered the store of about $1.7 million in jewelry, diamonds, and luxury watches, all while innocent customers and employees hid for their safety. Today’s arrests should make clear that if you commit such brazen and dangerous crimes in this District, we will find you and hold you responsible.”

As alleged in the Complaint:[1]

On December 16, 2024, WILLIAMS, WILSON, and their co-conspirators drove a stolen vehicle with a stolen license plate from New Jersey to New York. At around 11:07 a.m., they arrived at a jewelry store in the Westchester Square shopping plaza in Hartsdale, New York, got out of the vehicle, and sledgehammered their way into the store. Once inside, and while innocent customers cowered in fear for their safety, the robbers smashed jewelry display cases and stole around $1.7 million in jewelry, diamonds, and luxury watches. Soon after, they returned to their vehicle with bags of stolen goods and drove back to New Jersey. Surveillance images of the robbery are below. 

Once they arrived in New Jersey, WILLIAMS drove to the Diamond District in New York City, while WILSON returned to their shared residence. A few hours later, WILLIAMS, WILSON, and their co-conspirators took photographs of themselves holding large stacks of cash.

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KEVIN WILLIAMS, 26, and BYRON WILSON, 24, both of Irvington, New Jersey, are charged with conspiracy to commit Hobbs Act robbery and Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.

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. Podolsky praised the outstanding work of the Federal Bureau of Investigation’s Westchester Safe Streets Task Force and Newark Field Office, as well as the Nassau County Police Major Case Squad, the Town of Greenburgh Police Department, and the Newark 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 defendants are 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.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Louis A. D’Ambrosio, the Special Agent in Charge of the Special Operations Division of the Drug Enforcement Administration (“DEA”), announced that OSCAR HENAO-MONTOYA, a Colombian national, was sentenced today to 24 years in prison for conspiring to import cocaine into the United States.  HENAO-MONTOYA was sentenced by U.S. District Judge Valerie E. Caproni, before whom he previously pled guilty to one count of cocaine importation conspiracy.  Two of HENAO-MONTOYA’s charged co-conspirators, REHINNER MONTOYA-GARCIA and JUAN FELIPE SANTIBANEZ-CARDONA, also previously pled guilty to one count of cocaine importation conspiracy and were sentenced by Judge Caproni to 20 years and 15 years in prison, respectively. 

Acting U.S. Attorney Matthew Podolsky said: “Oscar Henao-Montoya and his co-conspirators sought to send a staggering quantity of cocaine from Colombia to the United States.  Today’s sentence, and those previously imposed in this case, send a clear message that those who seek to traffic cocaine into the United States will pay a steep price for their actions.  This Office, through its longstanding partnership with the DEA’s Special Operations Division, Bilateral Investigations Unit, will hold accountable those who seek to break our narcotics laws and harm our communities, regardless of where in the world they may hide.” 

As reflected in the Indictment, other filings in Manhattan federal court, and statements made in open court:

HENAO-MONTOYA is a Colombian drug trafficker with longstanding familial connections to international cocaine distribution.  HENAO-MONTOYA is the younger brother of Orlando Henao-Montoya, a/k/a “El Hombre Overol,” the former leader of the Norte del Valle Cartel, the notorious drug cartel which operated principally in the Valle del Cauca region of Colombia and rose to prominence in the late 1990s after the Cali and Medellin cartels fragmented. HENAO-MONTOYA’s siblings also include Arcángel Henao Montoya, a/k/a “El Mocho,” Fernando Henao-Montoya, and Lorena Henao-Montoya, a/k/a “La Viuda De La Mafia.”  Together, the Henao-Montoya siblings ran the Norte del Valle Cartel, until Orlando and Lorena were murdered, and Arcángel Henao Montoya was deported from Panama to the U.S. 

Between October 2020 and August 2021, HENAO-MONTOYA and co-conspirators who worked for HENAO-MONTOYA, including MONTOYA-GARCIA and SANTIBANEZ-CARDONA, participated in a series of meetings in Colombia with DEA confidential sources (the “CSes”), who were acting at the direction of the DEA, to discuss their plans to import tons of cocaine into the U.S.  During those meetings, many of which were recorded, HENAO-MONTOYA discussed, among other things, his ability to export large quantities of cocaine from Colombia via control of airstrips (clandestine and overt) and ports in Colombia, as well as his relationships with corrupt members of the Colombian Air Force.  HENAO-MONTOYA and his co-conspirators also discussed various shipping routes to transport cocaine out of Colombia to the U.S. and, specifically, New York.  During certain of the meetings described above, HENAO-MONTOYA and individuals working for HENAO-MONTOYA were armed with firearms.

During meetings with the CSes, HENAO-MONTOYA also discussed his access to and control of cocaine laboratories that could produce over one ton of cocaine, including a laboratory that HENAO-MONTOYA said could produce 2,000 to 3,000 kilograms of cocaine at a time. On one occasion, MONTOYA-GARCIA brought one of the CSes to territory controlled by the Revolution Armed Forces of Colombia (“FARC”), which MONTOYA-GARCIA said was where HENAO-MONTOYA had drug laboratories, and that these laboratories were guarded by FARC members.

To ensure that their plan to import cocaine into the U.S. would be successful, HENAO-MONTOYA and his co-conspirators tested and provided cocaine samples for the CSes.  For example, in October 2020, MONTOYA-GARCIA and SANTIBANEZ-CARDONA provided a one-kilogram sample of cocaine to one of the CSes to test its quality.  After expressing satisfaction with the quality of the cocaine, the CS told MONTOYA-GARCIA and SANTIBANEZ-CARDONA that “the Americans will go crazy in the United States” for the cocaine.  In addition, in April 2021, at HENAO-MONTOYA’s direction, MONTOYA-GARCIA provided an eight-kilogram sample of cocaine to undercover agents working for the Colombian National Police in exchange for approximately $16,000, which was intended to serve as a sample for the contemplated ton-quantity cocaine shipments that HENAO-MONTOYA and his co-conspirators sought to send to the U.S.

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In addition to the prison term, HENAO-MONTOYA, 58, of Colombia, was sentenced to four years of supervised release.

Mr. Podolsky praised the outstanding efforts of the DEA’s Special Operations Division, Bilateral Investigations Unit, as well as the U.S. Department of Justice’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogota and the Colombian National Police for their assistance.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sam Adelsberg, Matthew J.C. Hellman, David J. Robles, and Chelsea L. Scism are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that AUSTIN MORRISHOW pled guilty today to illegally possessing multiple rounds of ammunition in connection with a June 30, 2023, shooting in which MORRISHOW and his co-defendant, CURTIS WHITE, fired multiple shots on a residential street in the Bronx, striking and seriously injuring a five-year-old girl.  MORRISHOW pled guilty before U.S. District Judge Loretta A. Preska, who also presided over WHITE’s guilty plea on February 5, 2025.  

Acting U.S. Attorney Matthew Podolsky said: “On June 30, 2023, Austin Morrishow and his co-defendant, Curtis White, engaged in a brazen act of violence by firing several shots onto a busy residential street in the Bronx. As these shots rang out, panicked bystanders rushed for cover, and one child—a five-year-old girl—was struck by a bullet and seriously injured. Morrishow then tried to evade arrest, but he was tracked down by our law enforcement partners, and now faces time in prison for endangering our city with senseless gun violence.”

According to court filings and statements made in court proceedings:

On June 30, 2023, MORRISHOW, WHITE, and several others were gathered on a residential sidewalk in the Bronx.  After a car engine backfired, MORRISHOW took cover behind a parked vehicle, assumed a shooting stance, and fired several shots from a .40 caliber pistol at three cars idling nearby, which began fleeing from the gunfire.  WHITE ran after the fleeing cars, firing shots from a .380 caliber pistol.

The shots fired by MORRISHOW and WHITE left at least seven .40 caliber shell casings, two .380 caliber shell casings, and two fired bullets in the street, as well as two bullet fragments, bullet holes, and shattered windows in vehicles parked on the street.  One of these shots hit the five-year-old girl sitting in the back of a car, and she was rushed to the hospital.

MORRISHOW was not permitted to possess a firearm or ammunition because of his prior federal conviction for using and carrying a firearm during and in relation to a narcotics conspiracy, and WHITE was not permitted to possess a firearm or ammunition because of his prior state conviction for attempted first-degree assault with intent to cause serious injury with a weapon.

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MORRISHOW, 27, and WHITE, 27, both of the Bronx, New York, each pled guilty to one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.  MORRISHOW is scheduled to be sentenced on June 25, 2025, and WHITE is scheduled to be sentenced on May 20, 2025.   

The statutory maximum penalty is prescribed by Congress and 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 the New York City Police Department, and also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service for their assistance with the investigation.

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.

A federal jury returned guilty verdicts yesterday on all five counts in the superseding indictment against Rafat Amirov, also known as Farkhaddin Mirzoev, Pᴎᴍ, and Rome, 46, of Iran; and Polad Omarov, also known as Araz Aliyev, Polad Qaqa, and Haci Qaqa, 40, of Georgia. The defendants were convicted of murder-for-hire and attempted murder in aid of racketeering charges, in a trial before U.S. District Judge Colleen McMahon. Amirov and Omarov are scheduled to be sentenced on Sept. 17.

“The Iranian regime’s brazen plot to silence and murder Americans will not be tolerated,” said Sue J. Bai, head of the Justice Department’s National Security Division. “This verdict underscores the Department’s commitment to finding and holding accountable those who threaten our citizens and our freedoms. With the great work of our prosecutors and law enforcement partners, we are now one step closer to justice.”

“For years, the Government of Iran has attempted to silence an outspoken Iranian journalist, author, activist and critic of their regime through any means necessary, including harassment, violence, intimidation, and even attempted murder,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York. “Chillingly, the plot to murder this Iranian dissident culminated over 6,000 miles from Iran, on U.S. soil, right here in New York, when a hitman with an AK-47 camped outside her home to kill her. I commend the career prosecutors of this office, and our law enforcement partners at the FBI’s Counterintelligence Division for their tireless work in bringing these defendants to justice. This verdict should send a clear message around the world: if you target U.S. citizens, we will find you, no matter where you are, and bring you to justice.”

“The defendants participated in a brazen plot to kill an Iranian American dissident in New York who criticized the regime in Iran,” said Acting Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division. “Thanks to the good work of the FBI and our partners their plan failed. This verdict demonstrates the FBI will not tolerate Iran’s attempts to threaten, silence, or harm American citizens.”

According to court documents, Amirov and Omarov were high-ranking members of an Eastern European organized crime group (the Organization) who worked with other members of the Organization to attempt to kill Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (IRGC). Alinejad has previously been the target of plots by the Government of Iran to intimidate, harass, and kidnap her for her work as a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses around the world. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Alinejad from within the U.S. for rendition to Iran in an effort to silence her criticism of the Iranian regime.

After these brazen efforts to kidnap Alinejad from the U.S. failed, the IRGC turned to Amirov and Omarov to locate, surveil, and murder her. Beginning in approximately July 2022, Amirov sent targeting information—which he had received directly from IRGC officials in Iran—about Alinejad to Omarov. In turn, Omarov communicated this information to Khalid Mehdiyev, another member of the Organization who had been residing in Yonkers, New York, so that Mehdiyev could surveil Alinejad and murder her. In turn, Mehdiyev sent photographs and videos of Alinejad’s residence to Omarov, who shared these materials with Amirov and the IRGC officials who orchestrated the plot in Iran. Amirov and Omarov then arranged for a $30,000 cash payment to Mehdiyev, who used a portion of this payment to buy an AK-47 style assault rifle, two magazines, and at least 66 rounds of ammunition; as Mehdiyev boasted in electronic communications, a “war machine” he could use to kill Alinejad.

In late July 2022, Mehdiyev repeatedly traveled to Alinejad’s neighborhood to surveil her. Mehdiyev sent reports of his surveillance to Omarov, who passed them to Amirov. On July 24, 2022, Mehdiyev reported to Omarov from Alinejad’s residence that he was “at the crime scene.” On July 27, 2022, Omarov told Amirov that Mehdiyev was ready to kill Alinejad, writing “this matter will be over today. I told them to make a birthday present for me. I pressured them, they will sleep there this night.”  On July 28, 2022, Mehdiyev sent Omarov a video taken from inside the car that Mehdiyev was driving with the assault rifle and a message reading “we are ready.” Amirov sent an image of the interior of Alinejad’s home to Omarov to be forwarded to Mehdiyev, writing “this is the house where she stays.”  As Omarov continued to update Amirov about Mehdiyev’s readiness, Amirov cautioned Omarov “let him keep the car clean.”  When Mehdiyev subsequently drove from where he was surveilling the residence, he was stopped after a traffic violation and, during a subsequent search of the vehicle, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.

After Mehdiyev was arrested and placed into custody, Omarov contacted Mehdiyev’s mother and threatened to kill her and her other son if she did not locate Mehdiyev.

Amirov and Omarov were convicted on five counts: murder-for-hire, which carries a maximum penalty of 10 years in prison (Count One); conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison (Count Two); conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison (Count Three); attempted murder in aid of racketeering, which carries a maximum penalty of 10 years in prison (Count Four); and possession and use of a firearm in connection with the attempted murder, which carries a maximum penalty of life in prison and a mandatory minimum penalty of five years in prison (Count Five).

The FBI New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force are investigating the case, with assistance from the New York City Police Department (NYPD) and the NYPD Intelligence Bureau. The Department of Justice’s Office of International Affairs provided valuable assistance. The Justice Department thanked the authorities in the Czech Republic for their assistance.

Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman for the Southern District of New York are prosecuting the case with assistance from paralegal specialist Owen Foley and Trial Attorneys Christopher Rigali and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that a jury convicted CHRISTOPHER REESE, a/k/a “Christopher Eugene Thomas,” yesterday for his participation in a scheme to defraud criminal defendants and their family members out of hundreds of thousands of dollars in legal fees paid to REESE, who is not a lawyer, to perform unlicensed legal services in federal court. REESE, who is already in federal custody in connection with a separate case, will be sentenced on June 26, 2025, by U.S. District Judge Valerie E. Caproni.

Acting U.S. Attorney Matthew Podolsky said: “Christopher Reese committed fraud through his bogus legal practice. He promised his victims that he would get their family members out of prison when he knew he had no way to guarantee that outcome, and induced them into paying him for legal services he knew he wasn’t authorized to provide. As a unanimous jury has now found, Reese’s promises were lies designed to enrich Reese at the expense of his victims. Running an unlicensed law business is a crime, and Reese now faces serious federal prison time for his fraudulent conduct.”

According to the Indictment and the evidence at trial:

For years, REESE ran a scam targeting federal inmates, their family members, and friends. To carry out his fraud scheme, REESE promised favorable results in criminal cases that he could not actually obtain, rendering legal services he was not authorized to provide in exchange for hefty fees. REESE styled himself as a “legal assistant” or “paralegal,” but worked without the supervision of a licensed lawyer and offers services that only a lawyer is authorized to provide, including drafting and submitting legal filings in federal courts. REESE brought in business by promising beneficial outcomes to prisoners and their family members that he cannot guarantee, while knowing—but failing to disclose—that his unlicensed legal practice was illegal.

REESE induced victims—criminal defendants and their family members—to pay him thousands of dollars per legal filing. He did this, for example, by promising that defendants would be “immediately released” based on motions REESE would file in exchange for fees in the thousands of dollars. Sometimes REESE also offered to provide a refund if his motions were unsuccessful; but when they failed, REESE kept the money. And when his fraud succeeded, and inmates or their family members paid REESE his fees, REESE engaged in the unauthorized practice of law, by making a business of drafting and filing legal motions and briefs in federal cases, including cases heard by the U.S. District Court for the Southern District of New York and the U.S. Court of Appeals for the Second Circuit at 40 Foley Square in Manhattan, a federal enclave where New York State’s prohibition on the unauthorized practice of law applies via the Assimilative Crimes Act. 

REESE earned hundreds of thousands of dollars from this scheme. And REESE committed additional crimes in connection with these fraud proceeds. First, REESE was on supervised release in connection with a separate federal criminal case in this District during most of the scheme. And in connection with his supervision, and in order to avoid paying criminal restitution that he owed, REESE made false statements to the U.S. Probation Office. Second, REESE laundered the proceeds of his scheme by using a co-conspirator to engage in financial transactions designed to conceal the source and movement of the fees REESE collected from his victims.

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REESE, 57, of East Meadow, New York, was convicted of wire fraud, which carries a maximum sentence of 20 years in prison; unauthorized practice of law in a federal enclave, which carries a maximum sentence of four years in prison; making false statements to the U.S. Probation Office, which carries a maximum sentence of five years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. REESE was found not guilty of conspiracy to commit wire fraud.

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 a judge.

Mr. Podolsky praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. 

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Josiah Pertz, Kingdar Prussien and James McMahon are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that a jury returned guilty verdicts against RAFAT AMIROV, a/k/a “Farkhaddin Mirzoev,” a/k/a “Pᴎᴍ,”  a/k/a “Rome,” and POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” on all five counts in the Superseding Indictment, which included murder-for-hire and attempted murder in aid of racketeering charges, in a trial before U.S. District Judge Colleen McMahon.  AMIROV and OMAROV are scheduled to be sentenced on September 17, 2025.

Acting U.S. Attorney Matthew Podolsky said: “For years, the Government of Iran has attempted to silence an outspoken Iranian journalist, author, activist and critic of their regime through any means necessary, including harassment, violence, intimidation, and even attempted murder.  Chillingly, the plot to murder this Iranian dissident culminated over 6,000 miles from Iran, on U.S. soil, right here in New York, when a hitman with an AK-47 camped outside her home to kill her.  I commend the career prosecutors of this Office and our law enforcement partners at the FBI’s Counterintelligence Division for their tireless work in bringing these defendants to justice.  This verdict should send a clear message around the world:  if you target U.S. citizens, we will find you, no matter where you are, and bring you to justice.”

FBI Acting Assistant Director in Charge Leslie R. Backschies said: “The convictions of Rafat Amirov and Polad Omarov send a clear message to all foreign governments who violate our laws and attempt to commit violence against Americans — they and their proxies will face justice for any attempt to silence Americans on U.S. soil.  The Iranian government’s shameless conduct and attempt to violate our laws and assassinate a critic of their human rights atrocities will not be tolerated.  The FBI is determined to disrupt any effort by foreign governments to use violence to repress our citizens’ freedoms, here or abroad.”

As reflected in the Superseding Indictment and the evidence presented at trial:

AMIROV and OMAROV were high-ranking members of an Azeri faction of the Russian Mob (the “Organization”) who worked with other members of the Organization to attempt to kill Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (“IRGC”). Alinejad has previously been the target of plots by the Government of Iran to intimidate, harass, and kidnap her for her work as a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses around the world.  As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Alinejad from within the U.S. for rendition to Iran in an effort to silence her criticism of the Iranian regime.

After these brazen efforts to kidnap Alinejad from the U.S. failed, the IRGC turned to AMIROV and OMAROV to locate, surveil, and murder her.  Beginning in approximately July 2022, AMIROV sent targeting information—which he had received directly from IRGC officials in Iran—about Alinejad to OMAROV.  In turn, OMAROV communicated this information to Khalid Mehdiyev, another member of the Organization who had been residing in Yonkers, New York, so that Mehdiyev could surveil Alinejad and murder her. In turn, Mehdiyev sent photographs and videos of Alinejad’s residence to OMAROV, who shared these materials with AMIROV and the IRGC officials who orchestrated the plot in Iran.  AMIROV and OMAROV then arranged for a $30,000 cash payment to Mehdiyev, who used a portion of this payment to buy an AK-47 style assault rifle, two magazines, and at least 66 rounds of ammunition; as Mehdiyev boasted in electronic communications, a “war machine” he could use to kill Alinejad.

In late July 2022, Mehdiyev repeatedly traveled to Alinejad’s neighborhood to surveil her.  Mehdiyev sent reports of his surveillance to OMAROV, who passed them to AMIROV.  On July 24, 2022, Mehdiyev reported to OMAROV from Alinejad’s residence that he was “at the crime scene.”  On July 27, 2022, OMAROV told AMIROV that Mehdiyev was ready to kill Alinejad, writing “this matter will be over today.  I told them to make a birthday present for me.  I pressured them, they will sleep there this night.”  On July 28, 2022, Mehdiyev sent OMAROV a video taken from inside the car that Mehdiyev was driving with the assault rifle and a message reading “we are ready.”  AMIROV sent an image of the interior of Alinejad’s home to OMAROV to be forwarded to Mehdiyev, writing “this is the house where she stays.”  As OMAROV continued to update AMIROV about Mehdiyev’s readiness, AMIROV cautioned OMAROV “let him keep the car clean.”  When Mehdiyev subsequently drove from where he was surveilling the residence, he was stopped after a traffic violation and, during a subsequent search of the vehicle, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.

After Mehdiyev was arrested and placed into custody, OMAROV contacted Mehdiyev’s mother and threatened to kill her and her other son if she did not locate Mehdiyev. 

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AMIROV, 46, of Iran; OMAROV, 40, of the country of Georgia, were convicted on five counts:  murder-for-hire, which carries a maximum sentence of 10 years in prison (Count One); conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison (Count Two); conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison (Count Three); attempted murder in aid of racketeering, which carries a maximum sentence of 10 years in prison (Count Four); and possession and use of a firearm in connection with the attempted murder, which carries a maximum sentence of life in prison and a mandatory minimum sentence of five years in prison (Count Five).

Mr. Podolsky praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force.  Mr. Podolsky also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, as well as the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs, for their assistance. Mr. Podolsky also thanked the authorities in the Czech Republic.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from paralegal specialists Owen Foley and Sabrina Jim Munoz, and Trial Attorneys Christopher Rigali and Leslie Esbrook of the Counterintelligence and Export Control Section. 

“Kevin Perez, a/k/a “Kay Flock,” was the leader of a neighborhood street gang known as Sev Side / DOA, and with that gang, he committed a series of gang-motivated shootings.  Perez, a drill rapper, instilled fear across the community with his violent actions, and then threatened rivals, bragged about shootings, and taunted victims in his rap lyrics. But as a unanimous jury has now found, Perez can no longer hide behind his music, and instead will be held to account for his violent crimes. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, the cycle of violence that Perez engaged in is over.  This Office remains resolute in its commitment to prosecuting gang members who sow fear and spread violence on our city streets.” 

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Harry T. Chavez, Jr., the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced the unsealing of a four-count criminal Indictment charging SHAN ANAND, NOSAKHARE NOBORE, NICHOLAS PAPPAS, LEONARD UJKIC, SOLOMON ALUKO, a/k/a “D1 ReallyRich,” and JORGE GONZALEZ with a scheme to fraudulently obtain checks and launder the proceeds. Many of the checks were funds provided by the government for COVID-19 relief that the defendants stole before depositing into bank accounts opened using sham businesses or stolen or fake identities. In total, the defendants attempted to steal approximately $80 million and succeeded in depositing approximately $50 million.

Acting U.S. Attorney Matthew Podolsky said: “We allege that the defendants stole tens of millions of dollars in COVID-19 relief and other checks, and even used a ‘Fraud Bible’ containing instructions for committing fraud. This Office will not tolerate the exploitation of programs designed to support the public in times of crisis, and we and our law enforcement partners will hold those responsible to full account.” 

FBI Acting Assistant Director Leslie R. Backschies said: “These six defendants allegedly used sham businesses, stolen, and fake identities to operate a multi-year check fraud scheme, resulting in $50 million in illicit funds being deposited into their accounts. The defendants brazenly attempted to exploit multiple United States government programs in their attempts to illegally enrich themselves. The FBI will continue to ensure fraudsters attempting to lie, cheat, and steal from the Government answer for their crimes in the criminal justice system.”

IRS Special Agent in Charge Harry T. Chavis, Jr. said: “This group of suspects openly communicated about their fraud, taking pride in the multiple schemes that stole nearly $50 million from the American public. They lied and cheated a benefits system meant to help struggling businesses that need it, all while stealing checks from agencies who assist the elderly and veterans. This gang of ‘bag hunters’ will now face justice for multiple charges.  This time, the U.S. government were the hunters, and the arrests in this massive fraud case are ‘in the bag.’”

As alleged in the Indictment:[1]

From 2021 to 2025, the six defendants worked together to steal money from the U.S. government, banks, and individuals. The defendants opened bank accounts using fake or stolen identity information for individuals or businesses, and were assisted in doing so by one of the defendants who was a teller at a major bank. From the inside, he worked to open or alter bank accounts to advance the defendants’ fraud.

The defendants then deposited fraudulently obtained or counterfeit checks into the  accounts. Many of the checks were issued by the U.S. Treasury (the “Treasury”) based on false and fraudulent filings with the Internal Revenue Service (“IRS”) in connection with the Employee Retention Credit (“ERC”) and Qualified Sick Leave Wages (“QSLW”) credit. The ERC is a refundable tax credit for businesses and tax-exempt organizations that had employees during and were affected by the COVID-19 pandemic. Employers must have paid qualified wages to claim the credit. The QSLW credit is a related credit that was also established in response to the COVID-19 pandemic. The defendants did not operate businesses that would have qualified for these credits. The businesses they used to open bank accounts and apply for the credits were fake or sham businesses.

Other Treasury checks passed as part of the defendants’ scheme were payments for different tax refunds, including personal and corporate income tax refunds. Still other Treasury checks were associated with programs at other government agencies such as the Department of Veterans of Affairs and the Social Security Administration. Some of the checks involved in the scheme—both Treasury checks and other business or individual checks—were stolen from the mail or elsewhere. Other checks were partially or completely forged.

Once the checks were deposited, the defendants withdrew the fraudulently obtained funds in cash or transferred them to other banks accounts under their control. Over the course of their scheme, the defendants attempted to obtain approximately $80 million in total. They succeeded in depositing approximately $50 million.

The defendants communicated openly about their fraud. One defendant sent another a video of a screen recording of a document or documents titled “✅ 2021 Fraud Bible ✅”, shown in the following image:

This “Fraud Bible” contained instructions on how to engage in various forms of fraud, including credit card fraud, ATM fraud, and mobile cash transfer fraud.

Since at least 2021, some members of the conspiracy have worn clothing items bearing a logo depicting a sack of money running along with the phrase “Bag Hunter.”

Certain members of the conspiracy wore this logo while engaging in criminal conduct. For example, the following image shows NOBORE withdrawing fraudulently obtained funds while prominently displaying the Bag Hunters logo:

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ANAND, 34, of Queens, New York; NOBORE, 29, of Edgewater, New Jersey; PAPPAS, 28, of Miami, Florida; UJKIC, 44, of Ft. Lauderdale, Florida; ALUKO, 29, of Hackensack, New Jersey; and GONZALEZ, 28, of North Bergen, New Jersey, are each charged with conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to commit money laundering and engaging in a monetary transaction in property derived from specific unlawful activity, which carries a maximum sentence of 20 years in prison; conspiracy to defraud the government, which carries a maximum sentence of 10 years in prison; and 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 defendants will be determined by a judge.

Mr. Podolsky praised the outstanding work of the FBI and IRS-CI. Mr. Podolsky also thanked the U.S. Postal Inspection Service and the New York City Police Department for their assistance.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime and Illicit Finance and Money Laundering Units. Assistant U.S. Attorneys Maggie Lynaugh, Steven J. Kochevar, and Qais Ghafary are in charge of the prosecution.

The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that PAUL ROBERTS, the founder, former Chief Executive Officer, and former Chairman of the Board of Directors of Kubient, Inc., a publicly traded digital advertising technology company, was sentenced today to one year and one day in prison. ROBERTS previously pled guilty to securities fraud for his execution of a scheme to defraud investors and auditors of Kubient, during which he caused Kubient to improperly recognize more than $1.3 million in fraudulent revenue in financial statements at the time of Kubient’s initial public offering and made material misrepresentations about the efficacy of Kubient’s proprietary fraud detection tool, Kubient Artificial Intelligence (“KAI”). ROBERTS’s sentence was imposed by U.S. District Judge Jennifer L. Rochon.

Acting U.S. Attorney Matthew Podolsky said: “Paul Roberts cooked the books. He lied to investors and auditors about his company’s revenue and about his company’s premier product: an AI-powered tool that, ironically, was supposed to detect fraud in the digital advertising industry. This Office is committed to holding corporate executives who defraud the investing public accountable for their crimes.”

According to information in court filings:

From October 2019 through March 2021, ROBERTS knowingly caused Kubient to improperly recognize more than $1.3 million in fraudulent revenue in Kubient’s financial statements, which was over 94% of Kubient’s reported revenue for 2020 at the time of its initial public offering (“IPO”) in August 2020. With his scheme, ROBERTS misled Kubient’s auditors and deceived the investing public about Kubient’s financial condition.

At the core of ROBERTS’s accounting fraud scheme was a fraudulent $1.3 million transaction that ROBERTS arranged between Kubient and another digital advertising technology company (“Company-1”). Kubient and Company-1 agreed to provide certain services to the other for nearly identical fees. For its part, Kubient agreed to use its proprietary fraud detection tool, KAI, to scan data provided by Company-1 and an affiliate for instances of digital ad fraud and then deliver the results of KAI’s findings to Company-1 and its affiliate. Neither Kubient nor Company-1, however, provided the agreed-upon services, yet they still paid each other $1.3 million, which Kubient improperly recognized as revenue.

To conceal his fraudulent scheme, ROBERTS directed Kubient employees to generate fake KAI reports based on made-up metrics and no underlying data at all. ROBERTS used the fake reports to mislead Kubient’s independent certified public accountants (the “Audit Firm”) into believing that Kubient had performed its contractual obligations when, in fact, Kubient had not, so that Kubient could recognize the associated revenue in its financial statements.

ROBERTS repeatedly made material misrepresentations in U.S. Securities and Exchange Commission (“SEC”) filings and in management representation letters submitted to the Audit Firm relating to Kubient’s KAI revenue recognition. ROBERTS also repeatedly made material misrepresentations in SEC filings about the efficacy of KAI in identifying and preventing digital ad fraud, including in connection with Kubient’s initial and secondary public offerings when Kubient was touting KAI as one of the company’s premier products that would differentiate it from its competitors.

Fueled by the misrepresentations about Kubient’s KAI revenue recognition and the efficacy of KAI in identifying and preventing digital ad fraud that ROBERTS made in Kubient’s SEC filings and elsewhere, Kubient raised more than $12.5 million in its IPO in August 2020, resulting in its shares being publicly traded on the Nasdaq stock exchange, and more than $20 million in its secondary public offering in December 2020. Now, Kubient is in Chapter 7 bankruptcy proceedings.

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In addition to the prison term, ROBERTS, 48, of Melville, New York, was sentenced to one year of supervised release.

Mr. Podolsky praised the outstanding work of the U.S. Postal Inspection Service. Mr. Podolsky also thanked the SEC, which filed a civil action against ROBERTS after he pled guilty, for its assistance and cooperation in the investigation.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Justin V. Rodriguez is in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced the unsealing of a Complaint charging DIOR JAY-JARRETT with a scheme to defraud a major airline carrier of nearly $70,000 in free or discounted flights by claiming to be on military leave for years after he retired from the U.S. Marine Corps.  JAY-JARRETT was arrested this morning and was presented today before U.S. Magistrate Judge Katharine H. Parker.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Jay-Jarrett—a federal law enforcement officer who currently serves as a Federal Air Marshal for the Department of Homeland Security—racked up thousands of dollars in free or discounted flights while pretending to be deployed on military missions around the world. He did so while simultaneously swearing an oath to protect and serve the public.  Federal law enforcement officers are responsible for upholding our laws, and they will be held responsible when they break them.”

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

JAY-JARRETT served on active-duty in the U.S. Marine Corps from on or about December 9, 2013, until on or about November 29, 2022.  While still on active-duty, on or about October 20, 2021, JAY-JARRETT also began employment as a baggage handler for a major airline carrier (“Airline-1”). After completing approximately one week of training, JAY-JARRETT requested and received from Airline-1 an approximately eight-month period of military leave by submitting falsified documents purporting to be Marine Corps orders for deployment that he in fact had never been issued.

In or about June 2023, JAY-JARRETT again submitted falsified documents to Airline-1 in order to receive another extended, approximately two-and-a-half-year long period of further military leave.  In those documents, JAY-JARRETT claimed to still be in active-duty military service, when in fact he had already retired from the military in or about November 2022. On or about July 17, 2024, JAY-JARRETT again submitted falsified military orders to Airline-1, forwarding the same orders he provided the previous year.

JAY-JARRETT remained on military leave at Airline-1 even when he became a Federal Air Marshal with the Department of Homeland Security in or about October 2022, shortly before he retired from the Marine Corps.  By remaining on supposed long-term military leave at Airline-1, JAY-JARRETT remained entitled to travel benefits including the ability to take unlimited, free flights on Airline-1, alongside ticketed family members or travel companions. From in or about November 2021 through September 2024, JAY-JARRETT took at least 130 such flights at a value of nearly $70,000.

Over the course of the scheme, from at least in or about December 2021 through in or about September 2024, JAY-JARRETT took free first-class flights to Los Angeles, London, San Diego, St. George’s, Las Vegas, and Dublin, and dozens more standard class flights to destinations including Antigua (five times), Aruba (three times), Bermuda (three times), Curaçao (twice), Barbados (twice), Belize (twice), the Grand Caymans (twice), Grenada (twice), Guatemala (twice), and a variety of other destinations including Mexico, Trinidad and Tobago, Peru, Jamaica, Turks and Caicos, the Dominican Republic, and St. Maarten.

On or about September 29, 2024, during an interview with law enforcement officials, JAY-JARRETT admitted, in sum and substance, that he had retired from the Marine Corps in November 2022 without notifying Airline-1 that he had done so, and that he had submitted falsified military orders to Airline-1 stating that he was on military leave even after he had retired from the Marine Corps.

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JAY-JARRETT, 29, of Queens, New York, is charged with one count of wire fraud, 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 a judge.

Mr. Podolsky praised the outstanding investigative work of the Naval Criminal Investigative Service Northeast Field Office, the Transportation Security Administration – Investigations, the U.S. Customs and Border Protection – New York Field Office, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.  Mr. Podolsky also thanked the Department of Homeland Security – Office of Inspector General and the Department of Veterans Affairs – Office of Inspector General for their assistance in the investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Ryan T. Nees is in charge of the prosecution.

The charge contained in the Complaint is merely an accusation 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 below constitute only allegations, and every fact described should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that LISA SCHIFF, a Manhattan-based art advisor focused on contemporary art, was sentenced today to 30 months in prison by U.S. District Judge J. Paul Oetken for perpetrating a multi-year scheme in which she defrauded the clients of her art advisory business of approximately $6.5 million in connection with the purchase and sale of approximately fifty-five artworks. 

Acting U.S. Attorney Matthew Podolsky said: “For five years, Lisa Schiff breached the trust of her art advisory clients by diverting millions of dollars to pay her own business and personal expenses, and to fund a lavish lifestyle. Because of Schiff’s lies, and her illusory art advisory scam, Schiff will now serve a substantial sentence in prison.”   

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

From 2018 through May 2023, SCHIFF engaged in a scheme to defraud clients of her art advisory business, Schiff Fine Art (“SFA”) by diverting her clients’ funds—profits from the sale of her clients’ artworks or payments they made to purchase artwork—to pay her own personal and business expenses. SCHIFF advised clients regarding the purchase and sale of artworks and bought and sold artworks on behalf of clients in exchange for a commission. In her role as an art advisor, SCHIFF acted as an intermediary between art galleries and auction houses, and her clients, who were art collectors. Typically, when SCHIFF’s clients bought or sold artworks, payments were routed through SCHIFF’s business, SFA. In addition, when SCHIFF sold artworks on behalf of a client, she often had custody or control of the artworks to coordinate the sale. At times, SCHIFF, through SFA, also sold artwork on consignment on behalf of artists and other galleries.   

Starting in about 2018, SCHIFF began defrauding her clients in two ways: not remitting payments to her clients when she sold their artwork while not disclosing to her clients that their artworks had, in fact, been sold; and not purchasing artworks on behalf of clients despite representing to her clients that she would purchase certain artworks on their behalf using their funds. Instead of using client funds as promised, SCHIFF diverted her clients’ money to pay her business and personal expenses. SCHIFF lied to her clients and galleries in furtherance of her fraud scheme. For example, when defrauding clients in connection with selling their artwork, SCHIFF at times lied to clients, claiming she had not sold the artwork, or the buyer was delayed in making the payment and SCHIFF still had custody of the artwork when, in fact, SCHIFF had sold the artwork, received payment from the buyer, and delivered the artwork to the buyer. When defrauding clients in connection with purchasing artwork on their behalf, SCHIFF lied to galleries from which she was supposed to purchase artwork on behalf clients, blaming delays in payment on clients when, in fact, clients had already paid SCHIFF for the purchase of the artwork and she had diverted the funds for her own use. In 2020, SCHIFF considered admitting to at least two of her victims that she had stolen millions from them, drafting letters of confession to them, but she never sent the letters and instead continued to defraud these two victims and others for three more years. Over approximately five years, SCHIFF defrauded at least 12 clients, one artist, the estate of another artist, and one gallery, collectively, of at least approximately $6.5 million. During her fraud, SCHIFF lived lavishly and incurred substantial debts, which she paid in part using her victims’ diverted funds.

In about May 2023, SCHIFF could no longer conceal her scheme due to mounting debts. SCHIFF confessed to several clients that she had stolen their money.

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SCHIFF, 54, of New York, New York, was sentenced to two years of supervised release. SCHIFF was further ordered to pay forfeiture of $6,408,538.20 and restitution of $9,147,789.26.

Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation’s Art Crime Team.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Cecilia Vogel and Jennifer Ong are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that ARIE RANGOTT was sentenced today to 27 months in prison for conspiring to defraud the federal Head Start program, to submit a false document to the federal government, and to obstruct a federal administrative investigation. RANGOTT was convicted following a two-and-a-half-week trial before U.S. District Judge Jennifer H. Rearden, who also imposed today’s sentence. 

Acting U.S. Attorney Matthew Podolsky said:  “Arie Rangott defrauded a vital federal childcare program that aims to serve one of society’s most vulnerable populations. This Office is committed to bringing to justice those who place greed above their responsibility to be stewards of federal funds, and I commend our law enforcement partners and the dedicated team of career prosecutors for their outstanding work.”

According to the Indictment, public court filings, and the evidence presented at trial:

Between 2021 and January 2023, RANGOTT was the shadow executive director of a non-profit entity, Project Social Care Head Start Inc. (“PSCHS”), that operated in the New York City area. The U.S. Department of Health and Human Services (“HHS”), which administers the federal Head Start program, annually granted to PSCHS millions of dollars that were supposed to be overseen by an independent board of directors, to be used exclusively on the Head Start program, and from which earning a profit is prohibited by law. RANGOTT and others conspired to submit numerous fictitious documents to HHS that fraudulently asserted PSCHS had an independent board of directors and had in place controls to guard against fraud, waste, and abuse. In truth, PSCHS had neither an independent board nor sufficient controls in place. RANGOTT and his co-conspirators used their control over PSCHS to impermissibly direct PSCHS’s Head Start funding to for-profit companies owned by co-conspirators through rampant undisclosed self-dealing.

In December 2021, HHS sent a letter to PSCHS detailing several complaints about self-dealing at PSCHS, among other things. In response, RANGOTT and his co-conspirators prepared and submitted to HHS a report that falsely denied the self-dealing and made other misstatements. Then, in August and September 2022, the HHS Office of the Inspector General opened an investigation into related issues at PSCHS. RANGOTT and his co-conspirators agreed to obstruct that investigation by lying to the investigators, coordinating stories, and submitting false documents.

Several of RANGOTT’s co-conspirators have pled guilty and been sentenced. Among others, Martin Handler and Menachem Lieberman, each of whom secretly controlled PSCHS and directed PSCHS to steer federal funds to their own for-profit companies, pled guilty in March 2024, and Martin Handler was sentenced in October 2024 to 58 months in prison. Isidore Handler, who played a significant role in falsifying documents submitted to HHS, pled guilty in September 2023 and was sentenced in December 2024 to 18 months in prison. Lieberman is awaiting sentencing.

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In addition to today’s prison sentence, RANGOTT, 54, of Toms River, New Jersey, was sentenced to two years of supervised release.

Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the HHS Office of the Inspector General. Mr. Podolsky also thanked the U.S. Department of Agriculture Office of the Inspector General and the New York City Department of Investigation for their assistance.

The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jacob R. Fiddelman, Catherine Ghosh, Stephanie Simon, and Daniel H. Wolf are in charge of the prosecution, with the assistance of Paralegal Specialist Jayda Foote.  

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie Backschies, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a seven-count Indictment charging CARL ERIK RINSCH for engaging in a scheme to defraud a subscription video on-demand streaming service (“Streaming Company-1”) in connection with a planned science fiction television show called “White Horse.”  RINSCH was arrested today in West Hollywood, California, and will be presented later today in the Central District of California.  The case is assigned to U.S. District Judge Jed S. Rakoff.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading. Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.”

FBI Assistant Director Leslie Backschies said: “Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series. The FBI will continue to reel in any individual who seeks to defraud businesses.”

As alleged in the Indictment:[1]

RINSCH is a film and television writer and director who partially completed a science fiction television show called “White Horse.”  In 2018, RINSCH reached an agreement with Streaming Company-1 in which Streaming Company-1 would both pay RINSCH for the existing episodes of White Horse and also fund completion of the rest of the show.  Between 2018 and 2019, Streaming Company-1 paid approximately $44 million for White Horse.

Between late 2019 and early 2020, RINSCH demanded even more money from Streaming Company-1 to complete White Horse.  Streaming Company-1 ultimately agreed to pay another $11 million, and transferred those funds to a company RINSCH controlled on or about March 6, 2020.  The entirety of those funds was to be spent on the completion of White Horse.

But RINSCH did not use those funds to complete White Horse.  Instead, within days, RINSCH began transferring the funds he received through a number of different bank accounts before consolidating them in a personal brokerage account.  RINSCH then used those funds to make a number of personal and speculative purchases of securities.  His trading was unsuccessful, and in less than two months after receiving $11 million from Streaming Company-1, RINSCH had lost more than half of those funds.

Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse.  Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including approximately $1,787,000 on credit card bills; approximately $1,073,000 on lawyers to sue Streaming Company-1 for even more money, and for lawyers related to his divorce; approximately $395,000 to stay at the Four Seasons hotel and at various luxury rental properties; approximately $3,787,000 on furniture and antiques, including approximately $638,000 to purchase two mattresses and approximately $295,000 on luxury bedding and linens; approximately $2,417,000 to purchase five Rolls-Royces and one Ferrari; and approximately $652,000 on watches and clothing.

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RINSCH, 47, of Los Angeles, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and five counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum sentence of 10 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. Podolsky praised the outstanding work of the FBI and Internal Revenue Service - Criminal Investigation. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jackie Delligatti, David A. Markewitz, and Kevin Mead 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, constitutes only allegations, and every fact described therein should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JONATHAN MOYNAHAN LARMORE was sentenced today to five years in prison for manipulating the stock price of WeWork, Inc. (“WeWork”) with a fake tender offer designed to fraudulently inflate the value of LARMORE’s own WeWork securities. LARMORE’s sentence was imposed by U.S. District Judge Paul A. Engelmayer, who also presided over a one-week trial after which LARMORE was convicted of one count of tender offer fraud and one count of securities fraud.

Acting U.S. Attorney Matthew Podolsky said: “Jonathan Larmore treated the stock market like a game he could rig to obtain instant riches at the expense of innocent investors. As today’s sentence shows, this Office will continue to advocate for significant penalties against those who manipulate our markets and defraud investors.”

According to the evidence presented in court during the trial:

LARMORE is the former CEO of Arciterra Companies LLC, a real estate investment and management firm. In the fall of 2023, LARMORE perpetrated a scheme to use a false and fraudulent tender offer to manipulate the stock price of WeWork, a co-working space company that was publicly traded on the New York Stock Exchange.

To execute his scheme, LARMORE created a sham real estate investment firm called Cole Capital Funds LLC (“Cole Capital”). LARMORE then spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options and hundreds of thousands of shares of WeWork common stock. On November 3, 2023, LARMORE published a fake press release announcing that Cole Capital proposed to acquire 51% of all outstanding shares owned by minority shareholders of WeWork at a more-than-700% premium in an all-cash offer worth more than $77 million. At the time, WeWork was on the verge of bankruptcy. The press release itself contained a number of false and misleading claims about LARMORE and Cole Capital, and their ability to carry through with the purported tender offer.

In fact, neither LARMORE nor Cole Capital had the intent or ability to execute the announced tender offer. Instead, LARMORE intended for news of the tender offer to fraudulently inflate WeWork’s share price and, thereby, to increase the value of LARMORE’s newly acquired WeWork call options and shares.

Approximately one minute after LARMORE’s press release about his fraudulent tender offer was published, WeWork’s share price quickly increased during after-hours trading by more than 70% and continued to rise to a high of more than 150% over the stock price prior to the publication of the press release. The WeWork call options LARMORE purchased could have made him tens of millions of dollars with a big enough spike to WeWork’s stock price, but the vast majority of the options expired before LARMORE could publish his manipulative press release. The following Monday, November 6, 2023, WeWork filed for Chapter 11 bankruptcy protection. LARMORE never followed through on his fraudulent tender offer.

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In addition to the prison term, LARMORE, 51, of Syracuse, Indiana, was sentenced to three years of supervised release during which the defendant must perform 500 hours of community service.

Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation. Mr. Podolsky also thanked the U.S. Securities and Exchange Commission, which filed a civil action against LARMORE, for its assistance and cooperation in the investigation.

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

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced the sentences imposed on VAZHA GABADADZE, TEIMURAZ TAVBERIDZE, KAKHA KATSADZE, and DAVIT TIKARADZE for extortion offenses.  The defendants include the leader of a criminal enterprise from the Republic of Georgia and his associates.  The last of the defendants to be sentenced, TAVBERIDZE, was sentenced to 21 months in prison today by U.S. District Judge Jed S. Rakoff after having been convicted on December 9, 2024, following a one-week jury trial.  The remaining three defendants were previously sentenced to terms of prison ranging from 12 to 30 months.

Acting U.S. Attorney Matthew Podolsky said:  “Vazha Gabadadze and his associates threatened to mutilate and kill a victim if he did not provide them with money.  They intimidated the victim, relying on their connections to violent organized crime, to obtain thousands of dollars.  But thanks to the dedication of the FBI and the career prosecutors of this Office, all four defendants have been brought to justice and will serve federal prison time for their crimes.” 

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

GABADADZE is a crowned “vor v zakone” and the leader of a criminal enterprise from the Republic of Georgia.  A vor v zakone, which is a Russian phrase that translates to “thief-in-law” or “thief within the code,” is part of a fraternal order of criminals that dates back to the time of the czars.  The vor stands at the highest level of Russian and Georgian organized criminal groups.  Traditionally, vory demand and receive tribute from criminals and laypersons, license criminal activity by others, and resolve disputes between members of the criminal community.  Payment demands are enforced by violence and threats of violence.  TAVBERIDZE, KATSADZE, and TIKARADZE each worked under GABADADZE’s supervision and control.

In 2017, in Georgia, GABADADZE approached an individual (the “Victim”) and demanded $15,000, claiming that the Victim’s friend owed GABADADZE the money.  The Victim subsequently moved to the U.S. 

In 2022, GABADADZE followed the Victim to the U.S. and reinitiated the extortion.  GABADADZE and the other defendants pursued, harassed, and threatened to kill and maim the Victim and his family if he did not pay.  Those threats were particularly violent and included, among others, that one or more of the defendants would “break [the Victim’s] spine over his knee,” “peel out [the Victim’s] eyes,” that the Victim would be beaten beyond recognition to his family, and that the Victim’s dead body would be found “when the snow melts.” 

Each of the defendants played a particular role in executing the extortion. GABADADZE was the leader of the scheme and ultimate beneficiary of the extortion payments.  TAVBERIDZE was primarily responsible for pursuing and communicating with the Victim and, in that capacity, personally threatened the Victim and collected extortion funds from the Victim.  KATSADZE managed the collection of the extortion payments, receiving such payments from TAVBERIDZE and passing them along to GABADADZE. TIKARADZE served as GABADADZE’s secretary and threatened the Victim on at least one occasion.  In total, the defendants received approximately $19,000 during the course of the extortion.

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GABADADZE and KATSADZE each pled guilty to one count of Hobbs Act extortion.  TIKARADZE pled guilty to one count of conspiracy to commit Hobbs Act extortion. TAVBERIDZE was convicted of one count of conspiracy to commit Hobbs Act extortion and one count of Hobbs Act extortion after trial.  A chart containing the sentences that each of the defendants received is set forth below.

Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation.  Mr. Podolsky also thanked U.S. Customs and Border Protection and the New York City Police Department for their assistance in the investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Getzel Berger, Varun Gumaste, Chelsea Scism, and Daniel Richenthal are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARCO TULIO FERNANDEZ-RODRIGUEZ, was extradited from the Dominican Republic and arrived in the United States this afternoon. FERNANDEZ-RODRIGUEZ was extradited on murder, narcotics, and firearms charges in connection with an attempted gunpoint robbery of a Mount Vernon, New York, warehouse that sold various unlicensed marijuana and nicotine products. Two people—one employee of the warehouse and one member of the roughly 15-man robbery crew—were shot and killed during the failed robbery attempt.  FERNANDEZ-RODRIGUEZ will be presented tomorrow in White Plains federal court before U.S. Magistrate Judge Andrew E. Krause.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Marco Tulio Fernandez-Rodriguez and his co-conspirators attempted a violent armed robbery that left two dead in Mount Vernon. The persistence and dedication of our law enforcement partners led to locating the defendant in the Dominican Republic, where he was arrested. This Office and our partners will not rest until every individual responsible for these senseless deaths is brought to justice.”

FBI Acting Assistant Director in Charge Leslie R. Backschies said: “Last year, Marco Tulio Fernandez-Rodriguez allegedly fled the country after participating in a robbery and massive gunfight which culminated in the murder of two individuals. Not only did his alleged involvement contribute to a highly violent episode which threatened the community’s safety, but Fernandez-Rodriguez also attempted to avoid responsibility by running. Today’s extradition and indictment reflects the FBI’s tireless commitment to ensuring all criminals face accountability for their behavior, regardless of where they may hide.”

As alleged in the Complaint unsealed today in White Plains federal court:[1]

On or about March 18, 2024, at approximately 10:00 p.m., two customers arrived at a wholesale warehouse in Mount Vernon that sold unlicensed marijuana products. The two customers placed an order for a large quantity of merchandise from the warehouse, and it took warehouse employees about two hours to prepare their order. A little after midnight, after the customers’ order was prepared, two employees from the warehouse helped the customers carry the boxes containing the customers’ merchandise from the warehouse to the customers’ vehicle. At that point, at least 11 members of the robbery crew—including FERNANDEZ-RODRIGUEZ—got out of a large cargo van that had been parked near the warehouse, many brandishing firearms. Some of the robbers, including FERNANDEZ-RODRIGUEZ, ran over to the two employees and the customers, some pointed firearms at them, and others forced them back inside the warehouse. Other robbers who also got out of the van ran inside the warehouse to steal the merchandise, including marijuana. A still image from video surveillance outside the warehouse is depicted below:

Shortly after the robbers got inside the warehouse, a gunfight broke out between the robbers and a warehouse employee. As a result, the warehouse employee and one of the robbers were killed. The robbers fled the scene, failing to steal anything.

On or about December 4, 2024, FERNANDEZ-RODRIGUEZ was arrested in the Dominican Republic.  To date, 12 individuals have been arrested in connection with this crime.

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FERNANDEZ-RODRIGUEZ, 24, a citizen of the Dominican Republic, is charged with one count of murder through use of a firearm, which carries a maximum possible sentence of death or life in prison; one count of firearms use, carrying, and possession, which carries a maximum possible sentence of life in prison; one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison; and one count of conspiracy to commit Hobbs Act robbery, which carries a maximum sentence of 20 years in prison.

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

Mr. Podolsky praised the work of the FBI’s Westchester County Safe Streets Task Force and the Mount Vernon Police Department. Mr. Podolsky also thanked the Westchester County District Attorney’s Office, the Westchester County Police Department, the New York City Police Department, the Westchester Real Time Crime Center, the FBI Legal Attaché in Santo Domingo, and the Dominican authorities for their invaluable assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in the Dominican Republic to secure the arrest and extradition of FERNANDEZ-RODRIGUEZ. 

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jared D. Hoffman and Justin L. Brooke are 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] As the introductory phrase signifies, the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Frank A. Tarentino, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”); Leslie R. Backschies, the Acting 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 the unsealing today of an Indictment charging EDWIN CARRASQUILLO, a/k/a “Malo”; HECTOR HERNANDEZ, a/k/a “Hec”; JOSE HERNANDEZ, a/k/a “Nene,” a/k/a “Little”; NATHANIEL MANNING, a/k/a “Tio”; DAMEL MARCUS, a/k/a “Shank”; EDWARDO MORENO, a/k/a “AR”; JERMAINE SAMUELS, a/k/a “Maine”; CHRISTIAN SERRANO, a/k/a “Chris”; JOHNNIE CAPELES a/k/a “Jon Boy”; JAMIL BANKS a/k/a “Mel”; EMILIO BARRERA, a/k/a “Colombia,” a/k/a “E”; JASON RIVERA, a/k/a “Colombo”; HECTOR CEREZO, a/k/a “Red”; JOSUE VARGAS, a/k/a “Leo”; JUAN KUANG, a/k/a “Jo Jo,” a/k/a “Jay,” a/k/a “Blanco”; STEVEN SANTIAGO, a/k/a “Swizz”; VICTOR MENDENG, a/k/a “Cali”; ANGEL VILLAFANE, YADIRA REYNOSO, a/k/a “Yadi”; ERIKA DAWSON; ARIYAN LABELLA, a/k/a “Ari”; DELILAH CARRIEL; ROSEMARIE SANCHEZ, a/k/a “Rosie”; JOHANA ALCANTARA; JUAN CALDERON, a/k/a “Jazzo,” a/k/a “Juanito”; KAREEM SMITH, a/k/a “K”; and CHRISTOPHER MEADOWS with participating in a racketeering enterprise, committing multiple violent crimes in aid of racketeering, including murder, engaging in a continuing criminal enterprise, distributing narcotics, and carrying and using firearms in connection with an armed drug trafficking operation based on Valentine Avenue in the Bronx, New York for well over three decades from 1993 to the present.  CARASQUILLO and ALCANTARA are also charged with the June 25, 2020, murder of Jozei Hullex.

CARRASQUILLO, HECTOR HERNANDEZ, JOSE HERNANDEZ, MANNING, MARCUS, MORENO, BANKS, RIVERA, CEREZO, VARGAS, KUANG, SANTIAGO, MENDENG, VILLAFANE, CARRIEL, SANCHEZ, ALCANTARA, CALDERON, and MEADOWS were previously taken into custody on related charges.  SAMUELS, SERRANO, CAPELES, REYNOSO, DAWSON, LABELLA, and SMITH were arrested either yesterday evening or earlier today.  BARRERA is still at large.  All seven of the defendants arrested yesterday or today are expected to be presented before U.S. Magistrate Judge Robert W. Lehrburger later this afternoon.  The case is assigned to U.S. District Judge Victor Marrero.

Acting U.S. Attorney Matthew Podolsky said: “Today, we have filed charges against twenty-eight alleged members of a violent drug trafficking gang that held an entire neighborhood of this city hostage for over three decades.  On a daily basis, this street crew, including those arrested today, allegedly distributed fentanyl, heroin, cocaine, and crack along several blocks on Valentine Avenue, creating an open-air drug market in the middle of a Bronx neighborhood.  And to protect their territory, they allegedly carried guns, extorted people with substance abuse issues through violence, and attacked rivals and anyone else attempting to weaken their control on their block. This violence resulted in multiple shootings, as well as the murder of Jozei Hullex.  It is a brutal reality that has lasted for far too long.  It ends now.  The streets of this great city belong to its people, and the career prosecutors of this Office will not stop until our streets are returned to the law-abiding people of New York City and their families.”

DEA Special Agent in Charge Frank A. Tarentino said: “Today’s indictment against the Valentine Avenue Crew and its members, shows the commitment the Drug Enforcement Administration and our law enforcement partners have when targeting drug trafficking organizations and individuals who routinely use threats, violence, extortion, robbery, and murder in order to run their criminal enterprise and flood our neighborhoods with illicit and synthetic drugs. The DEA remains committed to ensuring our citizens and communities remain healthy and safe.”

FBI Acting Assistant Director in Charge Leslie R. Backschies said: “For over three decades, these 28 Valentine Avenue Crew members allegedly protected their illicit narcotics distribution scheme and the enterprise’s dangerous reputation through violent gunfights and murder. Their alleged commandeering of a Bronx neighborhood allowed criminality and violence to flourish, threatening the lives of innocent residents. The FBI remains committed to dismantling all criminal organizations that utilize our city as their personal playground to promote illegal racketeering operations and endanger our communities.”

NYPD Commissioner Jessica S. Tisch said: “The Valentine Avenue Crew created immense fear within their community for decades, fueling our streets with senseless gun violence, polluting our sidewalks with deadly poisons, and costing lives through their ruthless gang behavior. These indictments send a clear message: this era of lawlessness ends today. The NYPD remains steadfast in its mission to remove illegal firearms from the hands of criminals—having already seized over 1,000 firearms this year alone—and to dismantle the illicit drug trade they are so often associated with. I commend the relentless NYPD investigators and our law enforcement partners in the FBI, DEA, and the U.S. Attorney’s Office for the Southern District of New York for their unwavering commitment to placing members of organized networks such as these behind bars.”

As alleged in the Indictment:[1]

CARRASQUILLO, HECTOR HERNANDEZ,  JOSE HERNANDEZ, MANNING, MARCUS, MORENO, SAMUELS, SERRANO, CAPELES, BANKS, BARRERA, RIVERA, CEREZO, VARGAS, KUANG, SANTIAGO, MENDENG, VILLAFANE, REYNOSO, DAWSON, LABELLA, CARRIEL, SANCHEZ, ALCANTARA, CALDERON, SMITH, and MEADOWS are charged for their involvement in an armed drug trafficking organization (the “Valentine Avenue Crew”) that took over the block of Valentine Avenue between East 194th Street and East 196th Street in the Bronx (the “Block”) and its surrounding neighborhood.

Since the mid-1990s, for multiple decades, the members and associates of the Valentine Avenue Crew, including the defendants, operated as a drug trafficking gang that was organized in a hierarchal structure and that took over and controlled the Block, working in shifts throughout the day and night to distribute fentanyl, heroin, cocaine, and cocaine base, in a form commonly known as “crack.”  These drugs were often manufactured and packaged elsewhere and then delivered to the Block, where members and associates of the Valentine Avenue Crew, many of whom were typically armed with firearms and other weapons, sold them to a large base of end-user customers.  In control of the sidewalks and the street of the Block, as well as the public spaces of multiple buildings along the Block, the Valentine Avenue Crew and its members and associates, including the defendants, worked freely, creating an open market for drugs, in which they extorted payments, including in-kind sexual acts, from customers through violence and the threat of violence. The members and associates of the Valentine Avenue Crew, including the defendants, also used violence—including multiple shootings—to compete with rival drug traffickers and within the Valentine Avenue Crew itself, principally to maintain dominance over the drug trade on the Block and control of the Valentine Avenue Crew.

On or about June 25, 2020, CARRASQUILLO, one of the leaders of the Valentine Avenue Crew, and ALCANTARA used fentanyl to poison and murder Jozei Hullex, a disfavored member of the Valentine Avenue Crew.

On or about June 25, 2020, CARRASQUILLO, HECTOR HERNANDEZ, JOSE HERNANDEZ, MANNING, MARCUS, and SAMUELS participated in a shootout for control of the Valentine Avenue Crew and in turn the Block.

On or about September 22, 2020, CARRASQUILLO and CEREZO participated in shooting at a rival gang member.

On or about January 1, 2021, CARRASQUILLO, MARCUS, MORENO, and SAMUELS used a chain and one or more firearms to assault a disfavored member of the Valentine Avenue Crew, who was seriously injured and hospitalized following the attack.

In addition, VILLAFANE remains charged for his commission of two non-fatal shootings in Manhattan in July 2020 and January 2021.  Specifically, in or about July 2020, VILLAFANE paid a co-conspirator (“CC-1”) to lure a victim to a location in Manhattan where VILLAFANE attempted to murder the victim over a drug debt, resulting in personal injury to the victim.  Additionally, on or about January 8, 2021, VILLAFANE committed another non-fatal shooting in Manhattan.

*                *                *

A chart containing the names, 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 the DEA, FBI, and NYPD.  Today’s operation was conducted by the Trident Task Force, a joint task force of the DEA and FBI, among other federal, state, and local law-enforcement authorities, which is working on this case together with the NYPD.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Michael R. Herman, Timothy Ly, and Thomas John Wright are in charge of the prosecution.

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

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

1

Racketeering

conspiracy

18 U.S.C. § 1962(d)

2

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

EDWIN CARRASQUILLO,

a/k/a “Malo,” and

JOHANA ALCANTARA

3

Murder in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

EDWIN CARRASQUILLO,

a/k/a “Malo,” and

JOHANA ALCANTARA

4

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

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

EDWIN CARRASQUILLO,

a/k/a “Malo,”

HECTOR HERNANDEZ,

a/k/a “Hec,”

JOSE HERNANDEZ,

a/k/a “Nene,”

a/k/a “Little,”

NATHANIEL MANNING,

a/k/a “Tio,”

DAMEL MARCUS,

a/k/a “Shank,” and

JERMAINE SAMUELS,

a/k/a “Maine”

5

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

18 U.S.C. §§ 924(c) and 2

EDWIN CARRASQUILLO,

a/k/a “Malo,”

HECTOR HERNANDEZ,

a/k/a “Hec,”

JOSE HERNANDEZ,

a/k/a “Nene,”

a/k/a “Little,”

NATHANIEL MANNING,

a/k/a “Tio,”

DAMEL MARCUS,

a/k/a “Shank,” and

JERMAINE SAMUELS,

a/k/a “Maine”

Life in prison

Mandatory minimum sentence of 10 years in prison

6

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

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

EDWIN CARRASQUILLO,

a/k/a “Malo,” and

HECTOR CEREZO,

a/k/a “Red”

7

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

18 U.S.C. §§ 924(c) and 2

EDWIN CARRASQUILLO,

a/k/a “Malo”

Life in prison

Mandatory minimum sentence of 10 years in prison

8

EDWIN CARRASQUILLO,

a/k/a “Malo,”

DAMEL MARCUS,

a/k/a “Shank,”

EDWARDO MORENO,

a/k/a “AR,”

and JERMAINE SAMUELS,

a/k/a “Maine”

9

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

18 U.S.C. §§ 924(c) and 2

EDWIN CARRASQUILLO,

a/k/a “Malo,”

DAMEL MARCUS,

a/k/a “Shank,”

EDWARDO MORENO,

a/k/a “AR,”

and JERMAINE SAMUELS,

a/k/a “Maine”

Life in prison

Mandatory minimum sentence of 7 years in prison

10

Narcotics conspiracy

21 U.S.C. § 846

EDWIN CARRASQUILLO,

a/k/a “Malo,”

HECTOR HERNANDEZ,

a/k/a “Hec,”

JOSE HERNANDEZ,

a/k/a “Nene,”

a/k/a “Little,”

NATHANIEL MANNING,

a/k/a “Tio,”

DAMEL MARCUS,

a/k/a “Shank,”

EDWARDO MORENO,

a/k/a “AR,”

JERMAINE SAMUELS,

a/k/a “Maine,”

CHRISTIAN SERRANO,

a/k/a “Chris,”

JOHNNIE CAPELES

a/k/a “Jon Boy,”

EMILIO BARRERA,

a/k/a “Colombia,”

a/k/a “E,”

JASON RIVERA,

a/k/a “Colombo,”

HECTOR CEREZO

a/k/a “Red,”

JOSUE VARGAS,

a/k/a “Leo,”

JUAN KUANG,

a/k/a “Jo Jo,”

a/k/a “Jay,”

a/k/a “Blanco,”

STEVEN SANTIAGO,

a/k/a “Swizz,”

VICTOR MENDENG,

a/k/a “Cali,”

ANGEL VILLAFANE

YADIRA REYNOSO,

a/k/a “Yadi,”

ERIKA DAWSON,

ARIYAN LABELLA,

a/k/a “Ari,”

DELILAH CARRIEL,

ROSEMARIE SANCHEZ,

a/k/a “Rosie,”

JOHANA ALCANTARA,

JUAN CALDERON,

a/k/a “Jazzo,”

a/k/a “Juanito,”

KAREEM SMITH,

a/k/a “K,” and

CHRISTOPHER MEADOWS

Life in prison

Mandatory minimum sentence of 10 years in prison

11

EDWIN CARRASQUILLO,

a/k/a “Malo,”

HECTOR HERNANDEZ,

a/k/a “Hec,”

JOSE HERNANDEZ,

a/k/a “Nene,”

a/k/a “Little,”

NATHANIEL MANNING,

a/k/a “Tio,”

DAMEL MARCUS,

a/k/a “Shank,”

EDWARDO MORENO,

a/k/a “AR,”

JERMAINE SAMUELS,

a/k/a “Maine,”

CHRISTIAN SERRANO,

a/k/a “Chris,”

JOHNNIE CAPELES,

a/k/a “Jon Boy,”

JAMIL BANKS,

a/k/a “Mel,”

EMILIO BARRERA,

a/k/a “Colombia,”

a/k/a “E,”

JASON RIVERA,

a/k/a “Colombo,”

JOSUE VARGAS,

a/k/a “Leo,”

JUN KUANG,

a/k/a “Jo Jo,”

a/k/a “Jay,”

a/k/a “Blanco,”

and STEVEN SANTIAGO,

a/k/a “Swizz”

Life in prison

Mandatory sentence of life in prison for CARRASQUILLO and HERNANDEZ

Mandatory minimum sentence of 20 years in prison for other defendants

12

Murder while engaged in a narcotics conspiracy

21 U.S.C. § 848(e)(1)(A)

EDWIN CARRASQUILLO,

a/k/a “Malo,” and

JOHANA ALCANTARA

Death or life in prison

Mandatory minimum sentence of 20 years in prison

13

EDWIN CARRASQUILLO,

a/k/a “Malo”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

14

HECTOR HERNANDEZ,

a/k/a “Hec”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

15

JOSE HERNANDEZ,

a/k/a “Nene,”

a/k/a “Little”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

16

NATHANIEL MANNING,

a/k/a “Tio”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

17

DAMEL MARCUS,

a/k/a “Shank”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

18

EDWARDO MORENO,

a/k/a “AR”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

19

JERMAINE SAMUELS,

a/k/a “Maine”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

20

HECTOR CEREZO,

a/k/a “Red”

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

21

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

22

CHRISTIAN SERRANO,

a/k/a “Chris,”

JOHNNIE CAPELES,

a/k/a “Jon Boy,”

JAMIL BANKS,

a/k/a “Mel,”

EMILIO BARRERA,

a/k/a “Colombia,”

a/k/a “E,”

JASON RIVERA,

a/k/a “Colombo,”

JOSUE VARGAS,

a/k/a “Leo,”

JUAN KUANG,

a/k/a “Jo Jo,”

a/k/a “Jay,”

a/k/a “Blanco,”

STEVEN SANTIAGO,

a/k/a “Swizz,”

VICTOR MENDENG,

a/k/a “Cali,”

YADIRA REYNOSO,

a/k/a “Yadi,”

ERIKA DAWSON,

ARIYAN LABELLA,

a/k/a “Ari,”

DELILAH CARRIEL,

ROSEMARIE SANCHEZ,

a/k/a “Rosie,”

JOHANA ALCANTARA,

JUAN CALDERON,

a/k/a “Jazzo,”

a/k/a “Juanito,”

KAREEM SMITH,

a/k/a “K,” and

CHRISTOPHER MEADOWS

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

23

24

Life in prison

Mandatory minimum consecutive sentence 10 years in prison

25

[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.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced the sentences imposed on former Rikers Island corrections officers JASON SKEET, CHANTAL DE LOS SANTOS, and STEPHANIE DAVILA; former Rikers Island program counselor SHANEQUA WASHINGTON; former Rikers Island contractor KENNETH WEBSTER; and former Rikers Island inmate KRISTOPHER FRANCISCO, each for conspiring to commit honest services wire fraud in connection with their involvement in corruption at Rikers Island.  The last of the defendants to be sentenced, DAVILA, was sentenced to 12 months and a day in prison today by U.S. District Judge Lorna G. Schofield.  The remaining five defendants were previously sentenced to terms of prison ranging from 12 months to 40 months. 

Acting U.S. Attorney Matthew Podolsky said: “The defendants—former Rikers Island employees, a Rikers Island contractor, and an inmate—engaged in corruption on Rikers Island by agreeing to have contraband smuggled into the Rikers Island jail facilities in exchange for tens of thousands of dollars in bribes.  The defendants’ crimes contributed to a dangerous contraband market within Rikers Island, making Rikers Island less safe for inmates and officers alike.  The sentences imposed in this case demonstrate this Office’s commitment to hold accountable those who criminally abuse their positions of public trust and undermine the security of jails for their own benefit.”

According to the Complaints, Informations, public court filings, and statements made in court:

SKEET, DE LOS SANTOS, DAVILA, WASHINGTON, WEBSTER, and FRANCISCO engaged in conspiracies to smuggle contraband, including, among other things, controlled substances—such as fentanyl, marijuana, and synthetic cannabinoids, commonly known as “K2”—cellphones, and cigarettes, into Rikers Island in exchange for thousands of dollars in bribe payments.  Each of the charged conspiracies involved a Rikers Island insider—either a corrections officer, program counselor, or contractor—who was responsible for smuggling contraband into the facility; a co-conspirator outside of Rikers Island who provided the contraband and/or bribe payments to the insider; and an inmate co-conspirator who received the contraband smuggled by the insider.  The inmate who received the contraband from the insider typically sold at least part of the contraband to other inmates inside Rikers Island, in exchange for thousands of dollars in payments to the inmate or the inmate’s co-conspirators. In particular:

From at least January 2020 through June 2022, SKEET, who was then a corrections officer assigned to the Northern Infirmary Command on Rikers Island, smuggled contraband into Rikers Island approximately 100 times in exchange for more than $45,000.

From at least March 2022 through April 2022, WASHINGTON, who was then a program counselor assigned to the Robert N. Davoren Center on Rikers Island, smuggled contraband into Rikers Island in exchange for approximately $13,000.

From at least May 2022 through September 2022, WEBSTER, who was then an employee of a Rikers Island contractor and a former Rikers Island inmate , smuggled contraband into Rikers Island in exchange for more than $64,000.

From at least March 2022 through June 2022, DE LOS SANTOS, who was then a former Rikers Island corrections officer, passed contraband and made bribe payments to WASHINGTON and WEBSTER, so that they would smuggle the contraband to inmates inside Rikers Island.

From at least July 2021 through August 2021, DAVILA, who was then a former Rikers Island corrections officer, passed contraband and made bribe payments to a Rikers Island corrections officer (“CC-1”), so that CC-1 would smuggle the contraband to FRANCISCO inside Rikers Island.

From at least July 2021 through August 2021, FRANCISCO, who was then an inmate incarcerated in the Anna M. Kross Center on Rikers Island, directed DAVILA to provide bribe payments and contraband to CC-1, so that CC-1 would smuggle contraband to FRANCISCO inside Rikers Island.

*                      *                      *

Each of the defendants pled guilty to one count of conspiracy to commit honest services wire fraud.  A chart containing the sentences that the defendants received is set forth below.

Mr. Podolsky praised the outstanding 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 Adam Z. Margulies and Jonathan Rebold are in charge of the prosecution.         

Age

31

31

29

47

40

43

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JAMES DINNIGAN, a/k/a “Charlie Ward,” and MARTIN MAUGHAN, a/k/a “Lawrence Rogers,” with conspiracy to commit wire fraud for their participation in a multi-year, multi-state organized construction fraud scheme that targeted at least 24 victims, including numerous elderly and vulnerable victims. MAUGHAN was transferred from state custody to federal custody this afternoon and will be presented today before U.S. Magistrate Robyn Tarnofsky.  DINNIGAN is in federal immigration custody and will be transferred to the Southern District of New York.  

Acting U.S. Attorney Matthew Podolsky said: “As alleged, these defendants and their co-conspirators carried out a brazen scheme to defraud vulnerable members of our community by posing as legitimate home repair contractors and tricking homeowners into paying for thousands of dollars in unnecessary and unwanted home repairs.  Today’s charges should serve as a reminder that this Office and its law enforcement partners are committed to investigating and bringing to justice those who seek to enrich themselves by victimizing vulnerable members of our community.”

Acting Assistant Director in Charge Leslie R. Backschies said: “James Dinnigan and Martin Maughan allegedly enticed prospective consumers with illegitimate home improvement advertisements before intentionally destroying their property to extort unanticipated additional costs. These illegal foreign nationals allegedly laid the foundation to prey upon a vulnerable population across the northeast, ultimately stealing a significant sum from elderly victims. The FBI remains committed to protecting our citizens from any fraudulent company attempting to cement false promises to garner illicit profits.”

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

Between at least in or around October 2023 through at least in or about February 2025, DINNIGAN and MAUGHAN participated in a construction fraud scheme involving dozens of victims in New York, New Jersey, Connecticut, Pennsylvania, and several other states.  Participants in the scheme were usually foreign nationals from Ireland and the United Kingdom who were illegally in the U.S. and falsely posed as legitimate home repair contractors.

The scheme generally proceeded as follows: To get hired by the victims, members of the scheme made false statements to victims about their operation of legitimate home repair businesses, their occupation as contractors or engineers, and about home improvement and construction projects the victims needed to obtain. After being hired, members of the scheme tricked victims into paying for additional unwanted or unnecessary home repairs and other construction, including by purposefully damaging or destroying the victims’ property. The perpetrators of the scheme then forced victims, including through threats, into paying them tens or even hundreds of thousands of dollars. 

DINNIGAN, MAUGHAN, and other perpetrators of the scheme communicated with victims using cellphones and email.  The victims frequently wrote checks and transferred money to bank accounts controlled by members of the scheme, including into an account at a particular financial institution in Manhattan, New York.  The perpetrators of the scheme also operated websites in the names of at least two purported construction companies:  Local Masonry and Construction and Pine Valley Home Improvements, Inc.  Below are screenshots from websites that the perpetrators used to lure victims into the scheme:

The FBI has identified more than two dozen victims—many who are elderly individuals—who have lost at least $1 million as a result of this scheme. 

DINNIGAN entered the U.S. on or about April 4, 2023, using a tourist visa.  A review of relevant records has revealed no known documentation showing that DINNIGAN departed the U.S. as required, or that DINNIGAN applied for and received authorization to legally remain in the U.S.  On or about February 25, 2025, DINNIGAN was encountered by U.S. Customs and Border Protection (“CBP”) in Champlain, New York.

On or about August 9, 2023, MAUGHAN was encountered by CBP officers in the vicinity of Laredo, Texas.  MAUGHAN was subsequently ordered removed from the U.S. to the United Kingdom on or about October 30, 2023.  According to MAUGHAN’s order of removal, he was prohibited from reentering or attempting to reenter the U.S. for a period of five years.  On or about February 7, 2025, MAUGHAN was found inside the U.S. when he was arrested at the Boston Logan International Airport moments before departing on a flight to Dublin, Ireland. 

If you believe that you have additional information about this scheme or if you believe you have been a victim of the defendants or their co-conspirators, please contact the FBI at tips.fbi.gov, and reference this case.

*               *                *

DINNIGAN, 27, of Ireland, and MAUGHAN, 31, of the United Kingdom, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum term 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 defendants will be determined by a judge. 

Mr. Podolsky praised the outstanding investigative work of the FBI’s New York and Philadelphia field offices.  Mr. Podolsky also thanked CBP; U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations; Lower Merion Police Department; Cheltenham Police Department; Bernards Township Police Department; and Lambertville Police Department for their assistance in the investigation. 

The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Brandon D. Harper is in charge of the prosecution, with assistance from paralegal specialist William A. Coleman IV.

The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation. 

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Sue J. Bai, the Head of the U.S. Department of Justice’s National Security Division; and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a two-count criminal Indictment charging 10 defendants with a years-long hacking scheme committed through the Chinese company i-Soon.  At the direction of the People’s Republic of China (“PRC”) government, i-Soon employees hacked and attempted to hack victims across the globe, including a large religious organization in the U.S., critics and dissidents of the PRC government, a state legislative body, U.S. government agencies, the ministries of foreign affairs of multiple governments in Asia, and news organizations. i-Soon’s victims were of interest to the PRC government because, among other reasons, they were prominent overseas critics of the PRC government or because the PRC government considered them threatening to the rule of the Chinese Communist Party.  The 10 defendants remain at large.

Acting U.S. Attorney Matthew Podolsky said: “State-sponsored hacking is an acute threat to our community and national security. For years, these 10 defendants—two of whom we allege are PRC officials—used sophisticated hacking techniques to target religious organizations, journalists, and Government agencies, all to gather sensitive information for the use of the PRC. These charges will help stop these state-sponsored hackers and protect our national security. The career prosecutors of this Office and our law enforcement partners will continue to uncover alleged state-sponsored hacking schemes, disrupt them, and bring those responsible to justice.”

National Security Division Head Sue J. Bai said: “The Department of Justice will relentlessly pursue those who threaten our cybersecurity by stealing from our government and our people. Today, we are exposing the Chinese government agents directing and fostering indiscriminate and reckless attacks against computers and networks worldwide, as well as the enabling companies and individual hackers that they have unleashed. We will continue to fight to dismantle this ecosystem of cyber mercenaries and protect our national security.”  

Acting Assistant Director in Charge Leslie R. Backschies said: “The charges announced today expose the PRC’s continued attempts to spy on and silence anyone it deems threatening to the Chinese Communist Party. As alleged in the indictment, the Chinese government tried to conceal its efforts by working through a private company, but their actions amount to years of state-sponsored hacking of religious and media organizations, numerous government agencies in multiple countries, and dissidents around the world who dared criticize the regime. The FBI will continue to work tirelessly to disrupt our adversaries’ use of emerging technology to silence dissent and undermine the rule of law across the globe.”

As alleged in the Indictment:[1]

The PRC’s Ministry of State Security (“MSS”) had responsibility for the PRC’s domestic counterintelligence, non-military foreign intelligence, and aspects of the PRC’s political and domestic security. The PRC’s Ministry of Public Security (“MPS”) had responsibility for the PRC’s public and political security, including responsibility for law enforcement. To acquire information of interest to the PRC government in a manner that obscured their involvement, the PRC’s MSS and MPS used an extensive network of private companies and contractors in China to conduct unauthorized computer intrusions (“hacks”) in the U.S. and elsewhere.

One of those private companies was i-Soon.  From approximately 2016 through 2023, i-Soon and its personnel engaged in the numerous and widespread hacking of email accounts, cell phones, servers, and websites at the direction of, and in close coordination with, the PRC’s MSS and MPS. i-Soon generated tens of millions of dollars in revenue and at times had over 100 employees.

i-Soon’s primary customers were PRC government agencies.  It worked with at least 43 different MSS or MPS bureaus and charged the MSS and MPS between approximately $10,000 and $75,000 for each email inbox it successfully hacked.

The victims of i-Soon’s hacking included:

• A newspaper based in New York, New York, that publishes news related to China and is opposed to the Chinese Communist Party.
• An additional newspaper based in New York, New York.
• The U.S. Defense Intelligence Agency, an agency within the Department of Defense that specializes in defense and military intelligence.
• The U.S. Department of Commerce and the International Trade Administration, an agency within the Department of Commerce that promotes U.S. exports and defends against unfair trade practices.
• A religious organization based in the U.S. that has thousands of churches and congregations and millions of members.
• A Texas-based organization founded by a prominent critic of the PRC government focused on promoting human rights and religious freedom in China.
• A news service funded by the U.S. government that delivers uncensored domestic news to audiences in Asian countries, including China, and is headquartered in Washington, D.C.
• A state research university in the U.S.
• The New York State Assembly, a part of the legislature of the state of New York.
• A religious leader who lived outside of China and the U.S.
• A newspaper based in Hong Kong, China, that has actively covered the politics of Hong Kong and continues to do so today.
• The foreign ministry of Taiwan.
• The foreign ministry of India.
• The foreign ministry of South Korea.
• The foreign ministry of Indonesia.

In many instances, the PRC government was particularly interested in these victims because they had criticized the PRC government.  In other instances, the PRC government was particularly interested in foreign ministries because those foreign ministries were in communication with the U.S.

In some instances, i-Soon conducted its hacking at the direct request of the MSS or MPS. In other instances, i-Soon conducted hacks on its own initiative and then sold, or attempted to sell, the stolen data to different bureaus of the MSS or MPS.

i-Soon also trained MPS employees how to hack independently of i-Soon and offered a variety of hacking methods for sale to its customers.  i-Soon touted what it called a “industry-leading offensive and defensive technology” and a “zero-day vulnerability arsenal” used to successfully hack computer systems.  One of i-Soon’s products was software called the “Automated Penetration Testing Platform.” i-Soon advertised the platform’s ability to send email phishing attacks, to create files with malware that could provide access to victims’ computers if opened, and to clone websites of victims in order to induce them to submit personal information. An image of the interface for the Automated Penetration Testing Platform is below:

Another of i-Soon’s products was software that allowed the user to gain unauthorized access to online accounts or computer systems by deciphering passwords—also called “password cracking.” This platform was called the “Divine Mathematician Password Cracking Platform.” An image of the interface for the Divine Mathematician Password Cracking Platform is below:

i-Soon also sold software specifically designed to target victim accounts on a variety of computer systems and applications, including Microsoft Outlook; Gmail, the email service provided by Google LLC; the social media network X, formerly known as Twitter; the cellphone operating system Android; and the computer operating systems Windows, Macintosh, and Linux. i-Soon advertised its bespoke software as being able to overcome the unique defenses of these systems.

For example, with respect to Twitter, i-Soon sold software with the capability to send a victim a spear phishing link and then to obtain access to and control over the victim’s Twitter account. The software had the ability to access Twitter even without the victim’s password and to bypass multi-factor authentication. After a victim’s Twitter was compromised, the software could send tweets, delete tweets, forward tweets, make comments, and like tweets. The purpose of this software was to help i-Soon’s customers, including the PRC government, use hacked Twitter accounts to understand public opinion outside of China. For example, the software could be set to keep track of keywords appearing in tweets or messages. i-Soon referred to this software as its “Public Opinion Guidance and Control Platform (Overseas).” An image from the “Public Opinion Guidance and Control Platform (Overseas)” is below:

The 10 defendants charged are WU HAIBO, a/k/a “shutd0wn,” a/k/a “Boss Wu,” a/k/a “吴海波,” the Chief Executive Officer, and leader, of i-Soon; CHEN CHENG, a/k/a “lengmo,” a/k/a “Chief C,” a/k/a “Jesse Chen,” a/k/a “陈诚,” the Chief Operating Officer of i-Soon; WANG YAN, a/k/a “crysolo,” a/k/a “王堰,” the leader of one of i-Soon’s “penetration testing” teams; WANG ZHE, a/k/a “ken73224,” a/k/a “王哲,” the Sales Director of i-Soon; ZHOU WEIWEI, a/k/a “nullroot,” a/k/a “周伟伟,” the leader of i-Soon’s “Technology Research and Development Center”; WANG LIYU, a/k/a “PICNIC350116,” a/k/a “王立宇,” an MPS officer based in Chengdu, China; and SHENG JING, a/k/a “sjbible,” “盛晶,” the defendant, an MPS officer based in Shenzhen, China.

If you have information leading to the identification or location of these 10 defendants, please reach out to the Department of State at rewardsforjustice.net.

*               *                *

HAIBO, 43; CHENG, 40; GUODONG, 32; LI, 31; YAN, 35; ZHE, 44; WEIWEI, 37; LIANG, 28; LIYU, 36; and JING, 36, all nationals of China, are charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. 

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 a judge.

Mr. Podolsky praised the outstanding work of the FBI.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel, Steven J. Kochevar, and Kevin Mead are in charge of the prosecution.  Trial Attorney Gregory J. Nicosia Jr. of the National Security Division’s National Security Cyber Section provided valuable assistance.

The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that GREI MENDEZ was sentenced to 45 years in prison for trafficking fentanyl out of a daycare in the Bronx, New York, which resulted in the death of one child and the poisoning of three others.  Mendez pled guilty on October 29, 2024, before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.  

Acting U.S. Attorney Matthew Podolsky said: “Grei Mendez operated a daycare out of a basement apartment in the Bronx in which large quantities of deadly fentanyl were mixed, packaged, and stored.  She put babies as young as eight months old directly in harm’s way as they slept, played, and ate in a room where over 11 kilograms of fentanyl was hidden underneath their feet, leading to the death of one child and the poisoning of others.  No punishment can make up for a child lost, but today’s sentence sends the message that this Office and our law enforcement partners will work tirelessly to bring to justice anyone who uses children as a shield in the drug trade.”

According to the Complaint, the Indictment, and other documents in the public record:

From at least in or about June 2022 through September 2023, MENDEZ and others conspired to distribute narcotics out of Divino Niño Daycare in the Bronx.  There, MENDEZ and her co-conspirators maintained more than 11 kilograms of fentanyl and heroin in secret compartments, or traps, located underneath the floor tiles in the playroom of the Daycare.    

As a consequence of the drug conspiracy perpetrated by MENDEZ and her co-conspirators, on or about September 15, 2023, four children at the Daycare, all of whom were under three years of age, experienced the effects of poisoning from exposure to fentanyl.  Three of the children were hospitalized.  The fourth child, a 22-month-old boy, died.

*               *                *

In addition to the prison term, MENDEZ, 37, of the Bronx, New York, was sentenced to five years of supervised release. 

Mr. Podolsky praised the outstanding investigative work of the Drug Enforcement Administration (“DEA”), the New York City Police Department (“NYPD”), the Southern District of New York Digital Forensic Unit, the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, and the U.S. Marshals Service (“USMS”).  Mr. Podolsky also thanked the NY/NJ Regional Fugitive Task Force of the USMS; the USMS Office of International Operations; the USMS for the Southern District of New York; the USMS for the Southern District of Texas; the USMS for the Southern District of California; the USMS Mexico Field Office; the USMS Investigative Operations Division; the DEA New York Strike Force; the DEA Regional Office in Allentown, Pennsylvania; the DEA Regional Office in McAllen, Texas; the DEA Regional Office in Mexico City, Mexico; the DEA Regional Office in Hermosillo, Mexico; the DEA Regional Office in Monterrey, Mexico; the DEA Special Operations Division; the NYPD 52nd Precinct’s Detective Squad; the NYPD Bronx Homicide Squad; the NYPD Laboratory; the Office of International Affairs of the Justice Department’s Criminal Division; the U.S. Attorney’s Office for the Southern District of Texas; the U.S. Attorney’s Office for the Southern District of California; U.S. Customs and Border Protection; and Mexican Federal and State authorities.

This prosecution is part of an 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.  The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.  The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice.

This case is being prosecuted by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Maggie Lynaugh and Brandon C. Thompson, as well as Special Assistant U.S. Attorney Karl P. Miller of the Office of the Bronx County District Attorney’s Homicide Bureau, are in charge of the prosecution. 

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Derek S. Maltz, the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that ITIEL PALACIOS GARCIA, a/k/a “El Playa,” a/k/a “El Compa Playa,” was extradited yesterday from Mexico to the United States.  PALACIOS GARCIA is charged with conspiracy to import cocaine into the U.S., possession of machineguns and destructive devices, and conspiracy to possess machineguns and destructive devices. PALACIOS GARCIA was presented today before U.S. Magistrate Judge Henry J. Ricardo and detained without bail.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, for years, Itiel Palacios Garcia led a violent drug trafficking organization in Mexico that directed vast quantities of cocaine into communities in the United States. Palacios Garcia and his organization allegedly used assault rifles, grenades, and other heavy weapons to protect his drug trafficking territory and to battle drug rivals. This Office and our law enforcement partners stand committed to cutting off the flow of dangerous drugs into our country and bringing international drug traffickers to justice.”

According to the allegations contained in the Complaint, Indictment, and other court filings:[1]

PALACIOS GARCIA was the leader of a drug trafficking organization based in Guerrero, Mexico.  Between at least 2012 and 2020, PALACIOS GARCIA trafficked ton quantities of cocaine, including from Guatemala, that he then transported through his territory and into the U.S.  PALACIOS GARCIA and his co-conspirators used weapons like firearms, assault rifles, and grenades to protect their drug trafficking activities and to fight violent drug wars with rival groups, such as the Los Zetas drug cartel.

For example, in or about 2016, PALACIOS GARCIA and his associates purchased an aircraft, which they used to successfully transport approximately 800 kilograms of cocaine from Colombia to Venezuela, and then from Venezuela to Guatemala, where the cocaine was unloaded and transported by land to Mexico and finally the U.S.  As another example, in or about 2020, PALACIOS GARCIA and his associates organized another plane load of cocaine, which crashed in the El Petén region of Guatemala in or about April 2020. Both pilots died upon impact, and Guatemalan law enforcement authorities recovered approximately 800 kilograms of cocaine from the wreckage.

*               *                *

PALACIOS GARCIA, 42, of Mexico, is charged with: conspiring to import cocaine into the U.S. and to traffic it on board an aircraft registered in the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison (Count One); possessing machineguns and destructive devices in connection with the importation conspiracy charged in Count One, which carries a mandatory minimum consecutive sentence of 30 years in prison and a maximum sentence of life in prison (Count Two); and conspiring to use, carry, and possess machineguns and destructive devices in connection with the importation conspiracy charged in Count One, which carries a maximum sentence of life in prison (Count Three).

The mandatory 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 the judge.

Mr. Podolsky praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit and multiple DEA offices throughout Mexico, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division and the U.S. Marshals Service.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas S. Bradley, Jane Y. Chong, Sarah L. Kushner, Alexander Li, Daniel G. Nessim, David J. Robles, and Kyle A. Wirshba are in charge of the prosecution.

The charges contained in the Complaint and 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 Complaint and Indictment, and the description of the other court filings set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Matthew Podolsky, the Acting 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 U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of an Indictment charging JESUS MENDEZ-VARGAS, a/k/a “Chango,” with conspiring to import cocaine and methamphetamine into the U.S.  MENDEZ-VARGAS was taken into U.S. custody from Mexico and was presented on the charge contained in the Indictment today before U.S. Magistrate Judge Henry J. Ricardo. The case is assigned to U.S. District Judge John G. Koeltl. 

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Jesus Mendez-Vargas was a leader of the violent drug trafficking organization, La Familia Michoacana, based in Mexico, with primary responsibility for the organization’s drug trafficking activities from approximately 2006 to 2011.  La Familia imported vast quantities of cocaine and methamphetamine into the United States from Mexico and engaged in extensive violence in furtherance of its drug trafficking activities, including against those Mexican law enforcement officials who stood in its way.  This Office and our law enforcement partners will not stop working to see that those who lead violent drug trafficking organizations are met with the consequences of their actions. Mendez-Vargas will now face justice in an American courtroom.”

DEA Special Agent in Charge Frank A. Tarentino said: “The indictment against Jesus Mendez-Vargas, leader of La Familia Michoacana cartel is another example of the DEA’s determination to identify, target and eliminate drug traffickers poisoning our communities with fentanyl and methamphetamine. This removal demonstrates the New York Division’s relentless pursuit and unwavering commitment to hold accountable those who endanger our communities and traffic violence and drugs across our borders.”

According to the allegations contained in the Indictment:1

MENDEZ-VARGAS was a leader in La Familia Michoacana (“LFM”), a powerful, violent drug trafficking organization based in the state of Michoacan, in southwestern Mexico.  LFM controlled drug manufacturing and distribution within and around the state of Michoacan, as well as the port of Lazaro Cardenas, a key drug transshipment point.  LFM imported vast quantities of cocaine and methamphetamine into the U.S. from Mexico. LFM leadership forbade the sale or use of methamphetamine in the areas under its control in Mexico, and instructed LFM members that its methamphetamine was solely for export to the U.S.  From approximately 2006 to 2011, MENDEZ-VARGAS was a leader of LFM, with primary responsibility for LFM’s drug trafficking activities.

LFM engaged in violence, including assault, murder, and kidnapping to support its narcotics trafficking activities.  LFM also used heavy weaponry, including military-grade weapons, assault weapons, and ammunition smuggled from the U.S. to Mexico by LFM’s associates for use by LFM.  On or about July 14, 2009, approximately two days after the arrest of a high-level LFM leader, the bodies of 12 Mexican federal police officers believed to have been murdered were discovered in Michoacan.  Days later, another member of LFM contacted a local television station in Michoacan and, among other things, claimed that LFM was in a battle against the Mexican federal police and prosecutors, and that LFM kidnaps people who owed LFM money and those whose family members worked in state and federal governments.

*               *                *

MENDEZ-VARGAS, 51, of Mexico, is charged with conspiring to import cocaine and methamphetamine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

The mandatory 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 the judge.

Mr. Podolsky praised the outstanding investigative work of the DEA’s New York Field Division, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division and the U.S. Marshals Service.

This prosecution is part of an 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.  The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.  The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas S. Bradley, Jane Y. Chong, Sarah L. Kushner, Alexander N. Li, Daniel G. Nessim, David J. Robles, and Kyle A. Wirshba are in charge of the prosecution.

The charge 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.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Francis J. Russo, the Director of Field Operations for the New York Field Office of U.S. Customs and Border Protection, announced today the unsealing of an Indictment charging seven defendants with narcotics trafficking and firearms offenses. The case is assigned to U.S. District Judge Edgardo Ramos.

Since at least in or about October 2023, SHEHNAZ SINGH, a/k/a “SHAWN,” along with his co-conspirators, AMRITPAL SINGH, a/k/a “AMRIT,” a/k/a “Bal,” AMRITPAL SINGH, a/k/a “CHEEMA,” TAKDIR SINGH, a/k/a “ROMY,” SARBSIT SINGH, a/k/a “SABI,” and GURLAL SINGH (“GURLAL”), operated a transnational conspiracy to import cocaine into the U.S. from Colombia and distribute the drug in cities across the U.S. and into Canada.  Beginning in or about April 2024, a subset of these conspirators—led by ROMY and SABI, and joined by co-conspirators including FERNANDO VALLADARES, a/k/a “FRANCO”—stole a cache of cocaine from their original co-conspirators and agreed to distribute it out of, among other places, hotels in New York City.  Members of the two armed drug trafficking conspiracies hunted each other down, brandished a firearm, and threatened the lives of each other and innocent family members. 

Four defendants are in custody after arrests made on the morning of February 26, 2025.  Searches of various of the defendants’ residences and vehicles conducted at the time of arrest resulted in the seizure of four firearms, approximately 391 kilograms of methamphetamine, and approximately 109 kilograms of cocaine. CHEEMA was arrested in the Eastern District of California and was presented before U.S. Magistrate Judge Christopher D. Baker and detained; ROMY and SABI were arrested in the Northern District of Ohio and were presented before U.S. Magistrate Judge James E. Grimes Jr. and detained; and FRANCO was arrested in the Eastern District of New York, presented before U.S. Magistrate Judge Henry J. Ricardo, and released on certain conditions.  AMRIT and GURLAL are in custody in Pennsylvania after prior arrests.  SHAWN remains at large. 

Acting U.S. Attorney Matthew Podolsky said: “For more than a year, Shehnaz Singh and his associates not only imported dangerous drugs to sell across the United States but also armed themselves with deadly weapons and endangered communities here in New York City and around the country.  This week, we and our law enforcement partners halted that dangerous activity and took drugs and guns off the street.  I commend the career prosecutors of the Southern District of New York, and our partners at the Federal Bureau of Investigation and U.S. Customs and Border Protection, for their tireless efforts to disrupt this dangerous distribution network and to keep communities safe for our country and our neighbors, too.  We hope that today’s charges bring accountability to those who push drugs and use violence to protect their criminal organizations.”

FBI Assistant Director in Charge James E. Dennehy said: "These seven defendants allegedly established an international trade route to distribute hundreds of kilograms of lethal narcotics across the Western Hemisphere before it collapsed amidst threats of inter-retaliatory violence and death. This alleged conspiracy exposed our communities to significant quantities of highly dangerous drugs simply to bolster illicit profits. May today's arrests reaffirm the FBI's commitment to dismantling any criminal enterprise that exploits our country's transportation network and risks the wellbeing of our citizens."

CBP Director of Field Operations Francis J. Russo said: “Every day our CBP officers and law enforcement partners relentlessly pursue the most vicious and brutal criminal drug organizations in the world who do business globally and right here in our local communities and neighborhoods. We will not stop until networks such as this one and their criminal facilitators are off the street and brought to justice. CBP will continue its unwavering commitment to keeping Americans safe from the dangers of drugs and the violence they often bring.”

According to the allegations contained in the Indictments, other court filings, and statements made during court proceedings:[1]

Since at least in or about October 2023, a group of conspirators led by SHAWN—a Canada-based drug trafficker who holds himself out as a corrupt police officer—operated a drug trafficking organization that imported cocaine into the U.S., transported it to stash houses and other distribution sites using networks of trucking companies and drivers, and sold it in communities across the U.S. and into Canada (the “Original Cocaine Conspiracy”). AMRIT and CHEEMA, served as, among other things, SHAWN’s enforcers, and helped operated the drug trafficking organization by safekeeping and distributing cocaine while armed with guns.

Members of the Original Cocaine Conspiracy imported cocaine into the U.S. from Colombia and delivered the drug to coconspirators in the midwestern U.S., including a vacant home used by AMRIT and others in Indiana. From there, the cocaine was distributed across the U.S. and to Canada, including through and to California, Michigan, Indiana, Ohio, Pennsylvania, New Jersey, and New York.  This cross-border trade, from Colombia to the U.S. and Canada, was lucrative. As AMRIT described it: “It costs roughly about two, four, or five thousand dollars per [kilo in Colombia]. When it reaches America, it’s worth twelve to thirteen thousand. When it reaches Canada, it’s thirty thousand.”  In total, this organization was moving more than 600 kilograms of cocaine and methamphetamine a week.

Beginning in or about April 2024, a subset of the Original Cocaine Conspiracy’s members—ROMY and SABI—stole a large cache of cocaine from their co-conspirators in the Original Cocaine Conspiracy and worked with others, including FRANCO—to distribute the stolen cocaine from, among other places, two hotels in New York City (the “Stolen Cocaine Conspiracy”).  After a co-conspirator (“CC-1”) crashed a truck carrying approximately 10 kilograms of the group’s cocaine and abandoned his cargo, members of the Original Cocaine Conspiracy announced plans to travel to New York with weapons to reclaim their stolen drugs and serve vengeance on members of the Stolen Cocaine Conspiracy and their families.  As AMRIT put it: “We need our stuff.  We aren’t letting anyone go.  We are going to kill them all.”  The day before arriving in New York City, AMRIT and CHEEMA, took photos of themselves displaying weapons over a large cache of stacked cocaine.

Once in New York, AMRIT and CHEEMA threatened members of the Stolen Cocaine Conspiracy and their family members with violence.  In just one such incident, at a meeting in front of a home on suburban Long Island, AMRIT thrust a handgun into CC-1’s teenage brother’s neck while demanding to know the location of the stolen cocaine.

While executing arrests of certain of the defendants and searches of various residences and vehicles, law enforcement agents seized four firearms, approximately 391 kilograms of methamphetamine, and approximately 109 kilograms of cocaine.  CHEEMA was stopped while fleeing a residence in Bakersfield, California, and arrested in possession of a loaded handgun.  Three additional firearms were seized from residences or vehicles belonging to or controlled by ROMY and SABI in Cleveland, Ohio, where agents also seized approximately 391 kilograms of methamphetamine and approximately 109 kilograms of cocaine.  The seized firearms and narcotics are shown below.

Cocaine intercepted en route to ROMY and SABI

Methamphetamine seized from SABI’s residence

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A chart containing the charges and minimum and maximum penalties each defendant faces is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.

Mr. Podolsky praised the outstanding investigative work of the FBI and CBP. Mr. Podolsky further thanked the New York City Police Department, the U.S. Attorney’s Office for the Northern District of Ohio, the Cleveland Organized Crime Drug Enforcement Task Forces (“OCDETF”) Strike Force, the Cleveland Division of Police, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Field Office and Bakersfield Resident Agency, the FBI’s Cartel, Gang, Narcotics, & Laundering Task Force, the Cleveland Division of Police Coast Guard Investigative Service, and the Bakersfield (Calif.) Police Department, for their assistance and cooperation in the investigation.

This prosecution is part of an 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 Narcotics Unit.  Assistant U.S. Attorneys William C. Kinder and Justin Horton are in charge of the prosecution.

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

Defendant

Age

Charges

Minimum and Maximum Sentences

34

30

26

33

32

29

36

[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.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JACOB CARTER, who led a scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $7.6 million, was sentenced by U.S. District Judge Nelson S. Román to 11 years in prison.  CARTER and co-defendants Quadri Salahuddin and Anwar Salahuddin were convicted at trial on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.

Acting U.S. Attorney Matthew Podolsky said: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic.  Some small businesses that were eligible for and deserving of this money did not get it because funds ran out.  Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini.  Thanks to the work of our law enforcement partners at the FBI and the career prosecutors of this Office, Carter has now received just punishment.”

According to the Indictment, publics filings, public court proceedings and filings, and the evidence presented at trial and in connection with sentencing:

The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program.  In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19.  Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.

From March through July 2020, CARTER and co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom, used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees.  However, that was a lie – the individuals did not own businesses or employ people.  Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom.  After the defendants collected millions of dollars in kickback payments, CARTER took photographs of his stacks of cash, purchased expensive jewelry, and leased a Lamborghini.

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In addition to the prison term, CARTER, 39, of Capitol Heights, Maryland, was sentenced to three years of supervised release.  CARTER was also ordered to pay restitution in the amount of $7,737,000 to the SBA and forfeiture in the amount of $1,720,950.

Ransom pled guilty to conspiracy to commit wire fraud and was sentenced on April 24, 2024, to two years in prison to be followed by three years of supervised release with the first six months under home confinement. The Court also ordered that Ransom pay restitution in the amount of $7,577,000 to the SBA and forfeiture in the amount of $99,000. Quadri Salahuddin and Anwar Salahuddin are scheduled to be sentenced on March 26, 2025.

Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the Air Force Office of Special Investigations.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JAMES KELLY was sentenced today to 160 months in prison for robbing two delis in the Bronx, New York, and pointing a gun at deli workers during one of the robberies.  KELLY’s sentence was imposed by U.S. District Judge Gregory H. Woods, who also presided over a four-day trial after which KELLY was convicted of two counts of Hobbs Act robbery and one count of brandishing a firearm in connection with one of the robberies.

Acting U.S. Attorney Matthew Podolsky said:  “James Kelly terrorized workers at local delis in the Bronx by threatening to shoot them, pointing a gun at them, and robbing them at their workplace.  As today’s sentence shows, violent offenders who commit these heinous crimes will face harsh penalties.  We thank our law enforcement partners for their determination in holding those who commit violent crimes, like Kelly, accountable and for their tireless pursuit of justice for victims.”

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

On October 10, 2021, KELLY entered a deli in the Bronx with his hands in his pocket, purporting to have a gun.  KELLY approached a deli employee working alone in the store, threatened to shoot him, and demanded cash.  After the deli employee gave KELLY cash, KELLY ordered the deli employee to get down on the ground and said that if the employee moved, he would “shoot the shit” out of the employee.  15 months later, on January 15, 2023, KELLY robbed another deli in the Bronx, pointed a gun at two deli employees, again demanded cash and threatened to shoot them, and again ordered them to get on the ground. 

*                *                *

In addition to the prison term, KELLY, 32, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,900 and forfeit $1,900.

Mr. Podolsky praised the outstanding investigative work of the New York City Police Department Bronx Violent Crimes Squad and the investigators of the Office.

This case is being supervised by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Connie L. Dang, Adam Z. Margulies, Georgia V. Kostopoulos, Katherine Cheng, and David R. Felton are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade. 

Matthew Podolsky, the Acting 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 Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging TERRY BROOKS with three counts of possessing firearms and ammunition after a felony conviction. The charges relate to a November 12, 2023, shooting and the subsequent seizures of the defendant’s firearms and ammunition on August 14 and August 21, 2024. The case is assigned to U.S. District Judge Margaret M. Garnett.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, on November 12, 2023, while on a public sidewalk in the Bronx, Terry Brooks reached into his waistband, pulled out a gun, and began shooting. Brooks missed his target but struck a nearby bystander, causing serious injury. Brooks had purchased more than 50 firearm components online and possessed privately manufactured and unregistered ‘ghost guns,’ but this did not stop law enforcement from catching him. Thanks to the work of the career prosecutors in this Office and our partners at HSI and the NYPD, Brooks has been arrested and will face trial.”

HSI Acting Special Agent in Charge Michael Alfonso said: “The defendant’s indictment today underscores the HSI New York El Dorado Task Force’s ability to aggressively pursue investigative leads in whatever forms they take. Violent crime precursors no longer fit one specific mold, and HSI, alongside the NYPD, continues to adapt to target alleged bad actors and predicate felons determined to commit crimes.  New York City is a safer place with Terry Brooks off the streets.”

NYPD Police Commissioner Jessica S. Tisch said: “This indictment makes one thing clear: Untraceable ghost guns will not be tolerated in our city. Thanks to the meticulous work of the NYPD investigators, along with our law enforcement partners at HSI and the office of the U.S. Attorney for the Southern District of New York, this armed perpetrator—who terrorized our streets and injured an innocent bystander—will be held fully accountable. Every New Yorker deserves to feel safe, and removing every illegal firearm, whether trackable or disguised, brings us one step closer to achieving that goal.”

As alleged in the Indictment returned today and the Complaint unsealed on January 30, 2025:[1]

On November 12, 2023, a man—subsequently identified as BROOKS—fired a gun in the Bronx, New York, near the corner of E. 180th St. and Bathgate Ave.  The bullet struck a bystander, who was rushed to a hospital, received medical treatment, and survived.  Approximately three minutes after the shooting, officers responded.  Officers immediately found a shell casing at the scene of the crime.

After obtaining surveillance video footage from several sources, officers were able to track the shooter, together with a female companion, from a particular hotel room to the scene of the shooting and back to the same hotel room.  Hotel records identify BROOKS as someone who was staying in the hotel room at that time.  BROOKS drove a red Toyota Corolla to and from the scene of the shooting, and the license plate is visible in some of the surveillance footage.  BROOKS has received moving violations while driving that Corolla, which is registered to a woman with whom BROOKS sometimes resides.

Officers obtained search warrants for two premises where BROOKS sometimes resides.  On August 14, 2024, while executing the warrants, officers encountered guns, firearm parts, and ammunition in close proximity to objects and documents bearing BROOKS’s name and likeness.  Ballistics testing established that the shell casing found immediately after the shooting in November 2023 had been fired by one of the ghost guns recovered pursuant to these warrants. 

Finally, on August 21, 2024, officers arrested BROOKS in the same hotel where he had been staying on the night of the shooting. The officers recovered yet another firearm, which was in plain view on a nightstand.

*                *                *

BROOKS, 58, of New York, New York, is charged with one count of possessing ammunition on or about November 12, 2023; one count of possessing firearms and ammunition on or about August 14, 2024; and one count of possessing a firearm and ammunition on or about August 21, 2024.  Each count carries a maximum sentence of 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 a judge.

Mr. Podolsky praised the outstanding investigative work of HSI and the NYPD. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Kevin Grossinger and James Mandilk are in charge of the prosecution.

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

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JOY HARRIS, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to 41 months in prison for soliciting and accepting over $50,000 in bribes from contractors in exchange for awarding those contractors at least approximately $500,000 in contract work.  HARRIS’s sentence was imposed by U.S. District Judge Lewis A. Kaplan, who also presided over a one-week trial after which HARRIS was convicted of bribery and extortion under color of official right. 

Acting U.S. Attorney Matthew Podolsky said: “Joy Harris was given a position of public trust in New York City.  She used that position to demand bribes in exchange for approving important repair work at NYCHA buildings.  As today’s sentence shows, those who abuse positions of public trust—at any level of government—to seek personal gain will face a harsh penalty.”

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.

HARRIS, an assistant superintendent and superintendent at four different NYCHA developments in Manhattan from 2015 through 2021, demanded and accepted cash bribes in exchange for NYCHA contracts.  She demanded contractors to pay bribes up front in order to be awarded the contracts and accepted 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.  HARRIS typically demanded 10% of the contract value—between $500 and $1,000 depending on the size of the contract.  In total, HARRIS demanded and accepted more than $54,150 of dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth more than $500,000.

Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 61 have pled guilty, and three have been convicted after trial.  HARRIS is the first of the three NYCHA employees convicted after trial to be sentenced.  The cases of the six 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, HARRIS, 49, of Bushkill, Pennsylvania, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $54,150 and forfeit $54,150. 

Mr. Podolsky praised the outstanding investigative work of the New York City Department of Investigation, 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 Jerry J. Fang, Jacob R. Fiddelman, Catherine Ghosh, and Meredith C. Foster are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Nandita Vasantha.

Matthew Podolsky, Acting United States Attorney for the Southern District of New York, announced today that KOFI AMANKWAA, a Bronx-based former immigration attorney, was sentenced to 70 months in prison for immigration fraud in connection with his supervision of a multi-year scheme to file fraudulent immigration documents under the Violence Against Women Act (“VAWA”).   AMANKWAA pled guilty on September 17, 2024, before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “Kofi Amankwaa, a former immigration attorney,made a mockery of the U.S. immigration system and VAWA — a law that provides noncitizen victims of domestic abuse a path to lawful permanent residence status — by filing thousands of immigration documents falsely alleging that his clients were victims of abuse by their children or other family members. Amankwaa repeatedly filed these false applications without telling his clients that he was doing so, and pocketed thousands of dollars from each client he victimized.  Amankwaa now faces a significant prison sentence for his crimes.”

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

From September 2016 through November 2023, AMANKWAA and others at his direction met with clients and instructed them to sign fraudulent Form I-360 VAWA Petitions falsely stating that the clients were abused by their U.S. citizen children.  AMANKWAA also signed the petitions, under penalty of perjury, as the attorney preparer.

AMANKWAA used the filing of the fraudulent Form I-360 VAWA Petitions, among other filings, as a basis to request for his clients advance parole travel documents — documents that enable individuals without legal status in the U.S. to travel abroad temporarily and return.  AMANKWAA then directed his clients, upon obtaining the advance parole travel documents, to travel abroad and return to the U.S.  Last, AMANKWAA used the fraudulently procured advance parole as a basis for his clients to apply for lawful permanent resident status.

AMANKWAA carried out this illegal scheme knowing that his clients had not, in fact, been abused by their children or without asking whether any such abuse occurred.  Moreover, AMANKWAA was often unsuccessful in obtaining lawful permanent resident status for his clients because the clients’ immigration applications were denied on the basis of fraud, among other reasons. AMANKWAA typically charged his clients between $3,000 and $6,000 for his services, plus administrative fees.

In November 2023, following numerous complaints by clients regarding the fraudulent abuse allegations, AMANKWAA’s license to practice law in the State of New York was suspended, and in August 2024, AMANKWAA was disbarred.

*                *                *

In addition to the prison term, AMANKWAA, 70, of South River, New Jersey, was sentenced to three years of supervised release, and ordered to forfeit $13,389,000.  As part of his plea agreement, AMANKWAA has also agreed to pay $16,503,425 in restitution to his victims.  If you believe you or your family member is a victim of VAWA fraud who may be entitled to restitution from AMANKWAA, please contact USANYS.VAWAFraud@usdoj.gov.

Mr. Podolsky praised the outstanding investigative work of the Newark Field Office of Homeland Security Investigations.  Mr. Podolsky also thanked the U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security for their support in this investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Adam Z. Margulies is in charge of the prosecution, with assistance from Paralegal Specialist Samantha Roberts.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX” (“OKX”), a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. In connection with today’s guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million.  The case was assigned to U.S. District Judge Katherine Polk Failla, who presided over today’s guilty plea and sentencing.

Acting U.S. Attorney Matthew Podolsky said: “For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.  Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”

FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures. Furthermore, in their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”

According to court documents and admissions: 

OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform.  OKX allows registered users to place orders for spot trades in over three hundred cryptocurrencies, including Bitcoin and Ethereum. OKX users can also place orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies. 

Financial institutions that operate wholly or in substantial part in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”) and comply with federal anti-money laundering (“AML”) laws, including the Bank Secrecy Act.  These laws require the filing of suspicious activity reports and the maintenance of an adequate AML program, including an effective know-your-customer (“KYC”) program. AML programs are critical to ensure that entry-points into the U.S. financial system do not become tools criminals can use to profit from illicit activity.

Since 2017, OKX has had an official policy preventing U.S. persons from transacting on its exchange. But contrary to this official policy, OKX sought out customers in the United States, including in the Southern District of New York. 

From in or about 2018 through in or about at least early 2024, OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX. Transactions from those U.S. customers generated hundreds of millions of dollars in trading fees and profits for OKX. 

Because OKX served U.S. retail and institutional customers, OKX knew it was required by U.S. law to register as a money services business with FinCEN, but OKX chose not to do so.[1] In fact, despite OKX’s official policy prohibiting U.S. persons from transacting on the exchange, OKX was fully aware that individuals in the United States could, and did, easily create and use OKX trading accounts.  From OKX’s founding in approximately 2017 through approximately November 2022, OKX allowed retail customers the option to create an account, receive and transfer funds, and place trades without completing a KYC process. This meant that OKX, a large financial institution, facilitated transactions on behalf of customers that it could not identify. Further, while OKX implemented a policy blocking customers with U.S.-located IP addresses from trading or depositing assets onto OKX (the “IP Ban”), OKX knew that the IP Ban could be circumvented through cheap, widely available VPN technology.  Also, through at least early 2023, OKX allowed existing accounts to continue to receive and transfer funds, and place trades, all without completing a KYC process.  And until approximately early 2024, OKX also allowed customers to place trades on the exchange through third-party entities known as “non-disclosure brokers” without the third-party entity disclosing any identifying information to OKX about the customers on whose behalf the trades were placed. 

Even after OKX began requiring all customers to provide some KYC information to trade, OKX employees on certain occasions advised customers how to provide false information to circumvent the company’s KYC process and official policy prohibiting U.S. customers.  For example, in April 2023, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about the customer’s nationality during the KYC processing, writing “I know you’re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put United Arab Emirates and random numbers for the ID number.”  At that time, OKX did not verify the information that customers provided to open an account to trade.  In January 2024, the same employee wrote to another potential U.S. customer and asked if the individual had “any workaround on KYC outside of the US to make it potentially work.”

During the relevant period, OKX advertised in the United States, sponsoring the Tribeca Film Festival, for example, and used affiliate marketers based in the United States to promote the exchange. OKX also allowed existing customers to promote the exchange, and provided such customers benefits for recruiting additional users. At least one such OKX customer produced a publicly-available, step-by-step instructional video educating U.S. customers about how to register with OKX using a VPN to conceal their U.S. presence.

OKX also focused its efforts on attracting and retaining certain U.S. institutional customers, including large institutions who could provide liquidity and help OKX become one of the world’s largest cryptocurrency exchanges by making a broad range of cryptocurrencies available at competitive rates.  OKX’s U.S. institutional customers were some of OKX’s largest customers, with one such firm alone generating more than a trillion dollars in spot and derivatives transactions on OKX during the relevant period.  They provided significant liquidity, volume and trading fees for the platform, despite OKX’s knowing failure to register as an MSB and OKX’s “official” policy banning U.S. customers.

Until approximately May 2023, OKX did not adequately or consistently use commercially available software to monitor and detect suspicious activity, including money laundering, and OKX did not have adequate controls to determine whether either party to transactions on the exchange was potentially subject to sanctions imposed by the U.S. Treasury Department. As a result, through at least early 2024, OKX was used by numerous customers as a vehicle for laundering the proceeds of suspicious and criminal activities, including more than five billion dollars of suspicious transactions and illicit proceeds, based on a review of third-party transaction data.

In early 2024, OKX retained an external compliance consultant (the “Consultant”) to advise OKX on policies and controls reasonably designed to prevent U.S. persons from engaging in transactions on OKX’s platform through accounts held at OKX.  As part of the plea agreement, OKX is continuing to retain the Consultant, at its own cost, through February 2027, and has agreed to continue to cooperate with the United States Attorney’s Office.

*                *                *

In addition to the guilty plea, OKX, a Seychelles-based entity, also agreed to criminally forfeit $420.3 million and pay a criminal fine of approximately $84.4 million.  OKX received credit for its cooperation with the investigation and timely engaging in remedial measures, resulting in a 25% reduction off the bottom of the otherwise applicable recommended fine range.

Mr. Podolsky praised the outstanding investigative work of the FBI New York Field Office. 

This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are in charge of the prosecution.

[1] OKX has an affiliate U.S.-based cryptocurrency exchange named OKCoin USA, Inc. (“OKCoin”) which, in contrast with OKX, has registered with FinCEN as a MSB. OKCoin serves customers globally, including in the United States, and offers retail and institutional customers the ability to spot trade, including purchasing cryptocurrency using U.S. dollars. The conduct described herein that gives rise to the charge in the Information, and to which OKX pled guilty, is solely that of the unregistered MSB, Aux Cayes Fintech Co. Ltd., d/b/a “OKEx,” d/b/a “OKX,” the defendant.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that MICHAEL HABIB, an associate of the Canadian criminal organization known as the Wolfpack Alliance, was sentenced to 17 and a half years in prison for trafficking narcotics. HABIB pled guilty on December 20, 2023, before U.S. District Judge John P. Cronan, who imposed today’s sentence.  HABIB’s sentencing follows the imposition of sentences of 18 years, 17 and a half years, and four and half years on his co-defendants, SURINDER SINGH CHEEMA, BHUPINDER SINGH VIRK, and CHRISTOPHER BURGOS, on December 19, 2024, July 17, 2024, and December 16, 2024, respectively.

Acting U.S. Attorney Matthew Podolsky said: “Wolfpack and its associates have spread drugs and violence in the United States and in Canada. Michael Habib and his co-conspirators are responsible for transporting thousands of kilograms of cocaine and methamphetamine across our northern border, ordering drug-related shootings and kidnappings, and attempting to smuggle wanted international hitmen into the United States from Canada.  Today’s prison sentence will help protect the public from wanton violence and dangerous narcotics, and demonstrates our resolve to root out transnational criminal organizations like Wolfpack.”

FBI Assistant Director in Charge James E. Dennehy said: “The associates of the Wolfpack Alliance have all been rightly sentenced for establishing an international drug trafficking route to assist the flow of thousands of kilograms of methamphetamine and cocaine through our country into Canada. This conspiracy caused significant amounts of dangerous drugs to enter the United States, endangering the public’s safety. The FBI will continue to dismantle and hold accountable any criminal enterprise member, regardless of their origin, which utilizes our nation as an economic foothold and throughfare for their illegal operations.”

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

From at least in or about February 2022 through at least in or about November 2022, HABIB, CHEEMA, VIRK, BURGOS and others conspired to distribute narcotics by shipping thousands of kilograms of methamphetamine and cocaine across the U.S. and into Canada. In or about March 2022, law enforcement seized approximately 400 kilograms of cocaine shipped by the conspirators from a warehouse in New Jersey, and approximately 96 kilograms of cocaine and 86 kilograms of methamphetamine in the vicinity of Kansas City, Kansas. In connection with their guilty pleas, HABIB admitted to conspiring to distribute at least approximately 400 kilograms of cocaine; CHEEMA admitted to conspiring to distribute at least approximately 1.3 metric tons of methamphetamine and 764 kilograms of cocaine; VIRK admitted to conspiring to distribute at least approximately 1.1 metric tons of methamphetamine and 480 kilograms of cocaine; and BURGOS admitted to conspiring to distribute at least approximately 400 kilograms of cocaine.

The defendants engaged in additional criminal activities. HABIB and BURGOS, on behalf of the Wolfpack Alliance, assisted two Wolfpack-aligned hitmen, Gene Lahrkamp and Duncan Bailey, in their attempt to escape Canada and evade Canadian law enforcement, until Lahrkamp and Bailey were killed in an accidental plane crash in Canada on or about April 30, 2022. CHEEMA, in or about the spring of 2024, subsequent to his guilty plea and while awaiting sentencing at the Metropolitan Detention Center in Brooklyn, New York, directed his confederates in the greater Toronto, Canada area to conduct shootings and issue threats of violence in connection with drug debts. VIRK was arrested in or about November 2022 in California with three unregistered “ghost” guns and approximately $487,900 in cash.

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In addition to their prison terms, HABIB, 38, of Toronto, Canada; CHEEMA, 31, of Brampton, Canada; VIRK, 31, of Fresno, California; and BURGOS, 36, of Brooklyn, New York, were sentenced to five, four, four, and three years of supervised release, respectively, and were ordered to forfeit $487,900 and a 2020 Mercedes Benz AMG GT63.

Mr. Podolsky praised the outstanding investigative work of the FBI and U.S. Customs and Border Protection. Mr. Podolsky further thanked the Royal Canadian Mounted Police and Peel Ontario Regional Police for their assistance and cooperation in the investigation.

This prosecution is part of an Organized Crime Drug Enforcement Task Force (“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 Narcotics Unit. Assistant U.S. Attorneys Thomas S. Burnett, Jane Y. Chong, and Matthew R. Shahabian are in charge of the prosecution. 

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that JUSTIN TURNICK was sentenced by U.S. District Judge Philip M. Halpern to over 21 years in prison.  TURNICK previously pled guilty to conspiring to distribute fentanyl.  In his plea agreement, TURNICK took responsibility for distributing fentanyl that resulted in three fatal fentanyl poisonings and three non-fatal fentanyl poisonings of teenagers and young adults between February 2020 and April 2022 in Rockland County, New York. 

Acting U.S. Attorney Matthew Podolsky said: “Justin Turnick’s actions didn’t just facilitate addiction—they fueled a crisis that has claimed lives and inflicted unimaginable suffering.  The career prosecutors of this Office and our partners at the Drug Enforcement Administration and in local law enforcement remain resolute in our mission to combat the fentanyl epidemic and to seek justice for those who have suffered.” 

According to the allegations in the Indictment, Court filings, and statements made in Court:

TURNICK engaged in the regular distribution of narcotics to members of his community in Rockland County, New York, including his friends, partners, and acquaintances.  TURNICK knowingly distributed fentanyl — a deadly and highly potent opioid — in various forms, including fentanyl that had been packaged into pills, pure fentanyl, and fentanyl-laced powder.

TURNICK distributed fentanyl that resulted in three fatal and three non-fatal poisonings:

1. On or about February 3, 2020, Gustaf Olsen died at age 19 as a result of fentanyl received from TURNICK.
2. On or about July 11, 2020, Jonathan Shashoua died at age 22 as a result of fentanyl received from TURNICK.
3. On or about January 5, 2021, an 18-year-old girl experienced a non-fatal poisoning as a result of fentanyl received from TURNICK.
4. On or about July 30, 2021, Ione Koenig experienced a non-fatal poisoning as a result of fentanyl received from TURNICK.
5. On or about July 31, 2021, Ione Koenig died at age 18 as a result of fentanyl received from TURNICK.
6. On or about April 19, 2022, a 23-year-old man experienced a non-fatal poisoning as a result of fentanyl received from TURNICK.

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In addition to the prison sentence, TURNICK, 26, of Congers, New York, was sentenced to 5 years of supervised release.

Mr. Podolsky praised the outstanding work of the Drug Enforcement Administration, the Clarkstown Police Department, and the Rockland County Sheriff’s Office.  He also thanked the Ramapo Police Department, the Westchester County Police Department, the Yonkers Police Department, the Putnam County Sherriff’s Department, and the Rockland County District Attorney’s Office for their support and assistance in this matter.

The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Ryan W. Allison and Kathryn Wheelock are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that NORMAN GRAY, the founder and CEO of a biomedical company (the “Biomedical Company”), who defrauded investors of over $13 million, was sentenced today by U.S. District Judge Paul A. Engelmayer to 10 years in prison.  GRAY was convicted of wire fraud at trial on May 29, 2024.

Acting U.S. Attorney Matthew Podolsky said: “Norman Gray preyed upon people who wanted to invest in developing life-saving medicine for children with a rare and generally fatal disease.  Gray gained his victims’ trust by lying about everything from his educational background and to his supposed access to off-shore trusts he could use to fund his company alongside the investors.  He even submitted false patent applications, invented a fake mortgage company, and forged FBI background check records.  Thanks to the work of the career prosecutors of this Office and our law enforcement partners, Gray has now received just punishment.”

According to the Superseding Indictment, public filings, public court proceedings, the evidence presented at trial and in connection with sentencing:

At all relevant times, GRAY was the founder and CEO of the Biomedical Company, which is headquartered in Hamden, Connecticut.  GRAY presented himself to investors (including “Victim-1” and “Victim-2”) and others as a billionaire scientist and successful entrepreneur with a Ph.D. from MIT at the helm of a company he was personally funding that was potentially worth hundreds of millions of dollars.  GRAY claimed to have previously created a successful medical equipment company (“Prior Company”) with over 1,000 employees, which was earning approximately $900 million in revenues before GRAY sold it to a foreign pharmaceutical company.  GRAY claimed that he put the profits from the sale of the Prior Company into his offshore trust (“Offshore Trust”), which he claimed held more than $300 million, and which he was using to self-fund the Biomedical Company.  In reality, GRAY did not have a Ph.D., had not created or sold a nearly billion-dollar company, did not have access to hundreds of millions of dollars to fund Biomedical Company, and, as of 2020, both he and the Biomedical Company were in significant debt. 

Beginning in 2016, GRAY also claimed to employees and investors in Biomedical Company, including Victim-1 and Victim-2, and in written investment materials, that a flagship medication being developed by Biomedical Company was approved for compassionate treatment in Saudi Arabia, where it was saving the lives of two specific children who were suffering from a rare and generally fatal disease known as MVID.  Victim-2 sent $200,000 to GRAY to continue funding this supposed program.  GRAY submitted treatment data from the supposed program in patent applications for the flagship drug.  But the program did not exist.

Based on GRAY’s misrepresentations, between 2018 and 2020, Victim-2 invested approximately $7.6 million in the Biomedical Company through wire transfers into accounts controlled by GRAY.  In May 2020, at the outset of the COVID-19 pandemic, GRAY fraudulently induced Victim-2 to invest into a joint venture with GRAY to purchase personal protective equipment (“PPE”) and resell it to hospitals and universities in the United States and Spain. GRAY provided Victim-2 with fabricated purchase orders from two New York-area hospitals purporting to show that he had close to $8 million of committed sales. Victim-2 sent three wire transfers totaling $1,751,342 to GRAY’s account.  Ultimately, the PPE that GRAY purchased  could not be sold, because it was defective or otherwise not fit for market, and Victim-2 lost the $1.75 million supposedly invested by GRAY into the PPE project.

In or about August 2020, GRAY induced Victim-1 to send him $250,000 as a purported investment in the Biomedical Company.  Rather than purchase equity for Victim-1, GRAY used nearly all of Victim-1’s $250,000 payment to repay a loan that GRAY had taken out from a tenant in the same building where the Biomedical Company is headquartered in order to make payroll. In the ensuing weeks, GRAY extracted an additional $1,217,000 from Victim-1, representing that Victim-1’s funds would be invested in deals involving the procurement of PPE for two major universities in the tristate area who committed to close to $8 million in sales in essentially the same amounts as GRAY’s prior fabricated purchase orders sent to Victim-2.  Notwithstanding the losses Victim-2 had already experienced through GRAY’s venture, GRAY falsely represented to Victim-1 that his prior PPE deals had turned a 40% profit within 90 days, that he already had purchase orders in hand for PPE worth nearly $8 million, and that, therefore, the risk was “virtually zero.” In reality, over the preceding months, GRAY had accumulated a vast inventory of unsellable PPE, the purported purchase orders were recycled fakes, and GRAY did not invest Victim-1’s funds in PPE. Instead, GRAY misappropriated Victim-1’s funds, in part, to purchase himself a nearly $1 million home, a $50,000 luxury SUV, and to pay down $200,000 of his and his family’s credit card debt.

As part of his scheme to defraud Victim-1, and as a means of dispelling Victim-1’s concern that an investment with GRAY might require Victim-1 to forego the purchase of a home, GRAY offered Victim-1 a mortgage from a purported boutique mortgage company of which he was the sole investor.  GRAY directed Victim-1 to a purported mortgage broker that worked for this boutique mortgage company.  In reality, both the mortgage company and the mortgage broker were completely fabricated by GRAY and did not exist.  To further this aspect of the fraud on Victim-1, GRAY registered an internet domain in the name of the purported mortgage company and created an email address in the name of the invented mortgage broker contemporaneously with making his false representations to Victim-1.   As GRAY’s fraud began to unravel in or about early November 2020, GRAY promised to return all of Victim-1’s money.  Ultimately, GRAY never returned any money to Victim-1 and, after Victim-1 asked GRAY to provide her with the purported PPE purchase orders from the two universities, she never heard from GRAY again.

Victim-2 was a board member of the Biomedical Company at the time that GRAY defrauded Victim-1.  Following Victim-1’s report of GRAY’s fraud to the board in November 2020, accompanied by publicly available evidence of GRAY’s prior criminal history, GRAY reassured Victim-2 that he had no criminal history beyond driving infractions.  GRAY also produced to the board a fraudulent record purportedly from the FBI disclaiming any criminal history and falsely asserting that GRAY had a “top secret” clearance status renewed on November 14, 2016.  After being reassured by GRAY that Victim-1’s allegations were meritless, Victim-2 provided approximately over $2.3 million in loans separate from his over $7.5 million of Vanessa investments and $1.75 million of PPE investments.

At trial, GRAY obstructed justice by attempting to introduce into evidence a false document supposedly drafted after GRAY’s fraud on Victim-1 was complete and purporting to memorialize an agreement by Victim-1 to “convert” her PPE investment into shares of Biomedical Company.

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In addition to the prison term, GRAY, 69, of Hamden, Connecticut, was sentenced to 3 years of supervised release.  GRAY also was ordered to pay forfeiture in the amount of $1,467,000 and to forfeit his interest in the home and luxury vehicle discussed above.  The Court also ordered restitution of $1,533,675 to Victim-1.

Mr. Podolsky praised the outstanding investigative work of the Special Agents of Homeland Security Investigations.  Mr. Podolsky also thanked the New Haven Police Department, as well as law enforcement authorities in the United Kingdom and Spain and the Justice Department’s Office of International Affairs, for their assistance.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Benjamin A. Gianforti, Vladislav Vainberg, and Jessica Greenwood are in charge of the prosecution.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, 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 VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), with engaging in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information. KOMISSAROV was arrested yesterday evening and will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.  The case has been assigned to U.S. District Judge Alvin K. Hellerstein.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Vadim Komissarov, the former CEO of Trident Acquisitions Corp., engineered sham transactions and reported false and misleading revenue, all to ensure his SPAC merger went through and to make himself wealthy. To make matters worse, he tried to cover up his crimes by lying to the SEC under oath. This Office, and our partners at the FBI, will continue to pursue executives of public companies, including executives of SPACs, who defraud unsuspecting investors.”

FBI Assistant Director in Charge James E. Dennehy said: “Vadim Komissarov allegedly tried to secure a winning ticket by developing an elaborate scheme comprised of inflated profits, falsified transactions, and perjurious statements to sell company shares. Komissarov allegedly abused his authority as the company’s CEO to conjure a façade of success and interfere with an investigation into his suspected misconduct. The FBI will never permit any individual who attempts to unlawfully cash out at the expense of their investors’ money and trust.”

According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:

From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information about a prospective acquisition target and by profiting from the effect of the deception by selling shares of Lottery.com before other market participants realized the true state of the company (the “Revenue Scheme”).

The Revenue Scheme arose from an effort by KOMISSAROV to identify a suitable target for TDAC before TDAC reached a deadline to either use or return investor funds that had been raised to support an acquisition.  In November 2020, KOMISSAROV settled on AutoLotto, Inc., d/b/a Lottery.com as a target for TDAC.  To deceive TDAC shareholders about the nature of AutoLotto’s business, and to thereby secure their approval for TDAC’s acquisition of AutoLotto (the “Business Combination”), KOMISSAROV worked with others to improperly and misleadingly inflate AutoLotto’s revenue and to report those inflated figures to TDAC’s shareholders through public filings with the Securities and Exchange Commission (“SEC”), which KOMISSAROV signed or caused to be filed as the principal executive, financial, and accounting officer of TDAC.

The Revenue Scheme created the false appearance of revenue-generating business activity for AutoLotto and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”

In April 2022 and May 2022, KOMISSAROV sold almost 300,000 Lottery.com shares for more than $600,000, months before Lottery.com disclosed to investors that it had identified errors in the company’s reported revenue and available cash.

By June 2023 and August 2023, the enforcement staff of the SEC had begun to investigate TDAC and Lottery.com. After receiving a subpoena from the SEC for documents and testimony in connection with the SEC’s investigation, KOMISSAROV schemed to obstruct the SEC’s investigation. For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme. KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . .  if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.”

KOMISSAROV also personally tried to obstruct the SEC’s investigation. On November 20, 2024, KOMISSAROV provided sworn testimony to the SEC in connection with the SEC investigation into TDAC and Lottery.com. During his testimony, KOMISSAROV gave false and misleading answers about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.

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KOMISSAROV, 53, of New York, New York, was charged in the Indictment with one count of conspiracy to commit securities fraud, to make false and misleading statements in proxy statements, and to make false filings with the SEC; one count of securities fraud; five counts of making false and misleading statements in proxy statements; one count of obstruction of justice; and one count of perjury. The conspiracy charge and the perjury charge each carry a maximum term of imprisonment of five years. The charges of securities fraud, making false and misleading statements in proxy statements, and obstruction of justice each carry a maximum prison term of 20 years.   

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

Mr. Podolsky praised the outstanding work of the FBI.  Mr. Podolsky also thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in the investigation.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorneys Justin V. Rodriguez and Matthew R. Shahabian 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 descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and HSI Acting Special Agent in Charge Michael Alfonso announced today the unsealing of an Indictment charging Rubin Moye, a/k/a “Nut,” with ordering murders in 2011 and 2015.  As alleged, MOYE, a member of the Santana Block Crips set that operated around 2000 Valentine Avenue in the Bronx, ordered the murders of rival gang members or associates, leading fellow Crips to shoot and kill Phillip Richards on August 4, 2011, and Michelle Cox on March 4, 2015, neither of whom was a member of the rival gang.  In between those murders, MOYE himself shot a gang rival’s mother.  MOYE, who was previously detained in federal custody on separate charges, will be presented today before U.S. Magistrate Judge Sarah Netburn.  The case is assigned to U.S. District Judge J. Paul Oetken.  

Acting U.S. Attorney Matthew Podolsky said: “Rubin Moye allegedly terrorized his community for years, engaging in gang warfare on the streets and in apartment buildings in the Bronx.  As alleged in the Indictment, Moye ordered fellow Crips gang members to murder rivals resulting in the shooting deaths of two people, and he personally attempted to kill a rival’s mother by shooting her in the head.  These vicious crimes occurred years ago, but this Office and our partners at HSI and the NYPD do not forget the victims of violent crime, and we will not stop pursuing justice for them.”

Acting Special Agent in Charge Michael Alfonso said: “The defendant’s indictment for the 2011 and 2015 murders of innocent victims underscores HSI New York’s commitment to its enduring mission: the safety of our public regardless of how much time has passed. Together with our law enforcement partners, we refuse to let lawlessness run unchecked on the streets of New York City. I commend HSI’s Violent Gang Task Force, together with the NYPD and the Southern District of New York, for its unwavering pursuit of justice on behalf of our communities.”          

According to the allegations in the Indictment,1 MOYE was a member of the Santana Block Crips set that sold drugs and engaged in violent crimes around 2000 Valentine Avenue in the Bronx—a building known as “Two Stacks.” This Crips set engaged in racketeering activity to enrich its members, preserve and protect its power, and promote and enhance its activities in that neighborhood, and they did so through drug sales, firearms offenses, robberies, and acts involving murder.  On August 4, 2011, MOYE directed a co-conspirator (“CC-1”) to kill a rival gang member (“Rival-1”) or someone associated with that rival gang member, and in the course of trying to do so, the co-conspirator shot and killed Phillip Richards, an innocent bystander, near East 181st and Lafontaine Avenue in the Bronx.  On November 19, 2011, MOYE shot Rival-1’s mother in the chest and head in retaliation for Rival-1’s alleged murder of MOYE’s brother, who was a leader of MOYE’s Crips set.  Rival-1’s mother survived the shooting.  Additionally, on March 4, 2015, MOYE directed CC-1 and a second co-conspirator (“CC-2”) to find and kill someone associated with Rival-1.  CC-1 and CC-2 then located Michelle Cox, a/k/a “Destiny,” who was a friend of Rival-1, in the stairwell of an apartment building, and CC-2 shot her in the head, killing her.

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MOYE, 42, of the Bronx, New York, is charged with two counts of murder in aid of racketeering, which carries a mandatory minimum sentence of life in prison; two counts of murder while engaged in a narcotics conspiracy, which carries a mandatory minimum sentence of twenty years’ imprisonment and a maximum sentence of life; and two counts of murder through the use of a firearm, which carries a maximum sentence of life.

The statutory minimum and 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. Podolsky praised the outstanding work of the Homeland Security Investigations’ Violent Gangs Task Force and the New York City Police Department’s Bronx Violent Crimes Squad.   

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Frank Balsamello, Matthew Hellman, Michael Herman, and Ashley Nicolas 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.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that RAUL SILVA was sentenced today by U.S. District Judge P. Kevin Castel to 12 years in prison for selling thousands of doses of deadly narcotics, including fentanyl, acetyl fentanyl, and heroin, the use of which resulted in the July 2019 death of a 66-year-old woman (the “Victim”), to whom SILVA had sold drugs for years. 

Acting U.S. Attorney Matthew Podolsky said: “Raul Silva made a career of endangering lives by distributing illegal narcotics, some of which were laced with deadly fentanyl and acetyl.  Silva’s disregard for others eventually caused the tragic and untimely death of a 66-year-old woman, who overdosed on a laced dose supplied by Silva. I thank our career prosecutors and agency partners for their determination and vigilance in holding Silva, and dealers like him, accountable.”     

As reflected in the Indictment, court filings, the evidence presented in court, and the Court’s determinations at the sentencing hearing:

Between February 2019 and July 2019, SILVA and his co-defendant conspired to sell to an undercover New York City Police Department (“NYPD”) officer, on eight separate occasions, more than 4,000 glassines containing varying combinations of fentanyl, acetyl fentanyl, heroin, and other drugs.  These repeated drug sales followed years of narcotics trafficking and other criminal activity by SILVA, which resulted in 14 prior criminal convictions, including 10 prior narcotics convictions dating back to 1987.

In addition, SILVA was the longtime drug supplier of the Victim, a 66-year-old woman residing in the Chelsea area of Manhattan.  On July 11, 2019, SILVA met the Victim near her residence to sell her several glassines containing fentanyl, acetyl fentanyl, and heroin.  The Victim died in her apartment shortly thereafter, after consuming the narcotics sold to her by SILVA.  The Victim’s body was discovered two days later by her daughter, who was completing her medical residency in Virginia at the time, and who traveled to the Victim’s apartment on the evening of July 13, 2019, after being repeatedly unable to reach her mother.

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In addition to the prison term, SILVA, 55, of New York, New York, was sentenced to five years of supervised release. 

Mr. Podolsky praised the outstanding investigative work of the NYPD.

The prosecution of this case is being handled by the Office’s Narcotics Unit.  Assistant United States Attorneys Jonathan L. Bodansky and Matthew Weinberg are in charge of the prosecution, with assistance from Paralegal Specialist Owen Foley.

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Anatasia Coleman, the Special  Commissioner for Investigation for the Office of the Special Commissioner of Investigation for the NYC School District ("SCI"), announced today the arrest of ROSS LANVIN for possession of child pornography.  LANVIN is charged with possessing hundreds of images and videos of child pornography that depict children ranging from approximately 3 to 4 years old to pre-pubescent children engaging in sexually explicit conduct.  LANVIN was presented before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Ross Lanvin, who had close contact with students as a teacher at a public school in Manhattan, possessed hundreds of images and videos of child pornography.  Together with our partners at the NYPD and Office of the Special Commissioner of Investigations for the NYC School District, we will continue to work to root out those who possess child pornography, especially when those individuals work in positions that give them access to children—some of the most vulnerable members of our community.  Our investigation into Lanvin is ongoing, and we encourage anyone with information to contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office of the Southern District of New York, at 866-874-8900 or wendy.olsen@usdoj.gov.”

SCI Special Commissioner for Investigation Anatasia Coleman said: "SCI is grateful for the efforts of its investigators and the opportunity to work alongside all of our partners at the DOJ and NYPD to root out child sex abuse wherever it may occur. This type of crime, as alleged, is always troubling, but when it involves someone entrusted with the daily enrichment of our children, it makes its investigation and prosecution even more urgent."

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

LANVIN is currently a math teacher at a public middle school located in Manhattan, New York (“School-1”).  He was employed by the New York City Department of Education from in or about 2006 through in or about 2013, and again beginning in or about 2016.

From at least in or about September 2021 through in or about December 2024, LANVIN possessed hundreds of images and videos constituting child pornography on a Google account held under a fake name.  On or about December 20, 2024, Google terminated access to this account upon finding that it contained suspected child pornography.

On February 13, 2025, law enforcement executed a search warrant at LANVIN’s Manhattan apartment and found child pornography on at least one of LANVIN’s electronic devices.   

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LANVIN, 41, of New York, New York, is charged with two counts of possession of child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age, which carries a maximum sentence of 20 years in prison.  

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

Mr. Podolsky praised the outstanding investigative work of the New York City Police Department Special Investigations Unit, Computer Crimes Squad, SCI, as well as the Task Force Officers and Investigative Analysts of the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Lauren E. Phillips 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] As the introductory phrase signifies, the entirety of the texts 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.