Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Complaint charging GHISLAINE BARRIENTOS with conspiracy to commit honest services fraud, conspiracy to distribute controlled substances, and false statements as part of a scheme to smuggle narcotics into Rikers Island.  BARRIENTOS was arrested today and will be presented before Chief U.S. Magistrate Judge Sarah Netburn later today.

U.S. Attorney Damian Williams said: “Rikers Island is less safe, for inmates and officers alike, when corrections officers and others in positions of public trust accept bribes to smuggle contraband. As alleged, the defendant in this case engaged in corruption for her own enrichment.  In our relentless pursuit of justice, we leave no stone unturned, especially within the confines of jails and prisons, where the safety and dignity of all individuals must be safeguarded.  We will not tolerate any breach of trust or corruption that jeopardizes the well-being of inmates and staff.”

DOI Commissioner Jocelyn E. Strauber said: “The contraband trade destabilizes the City’s jails, and City Correction Officers play a vital role in maintaining order and keeping persons in custody, and their fellow officers, safe.  But this defendant, as charged, ignored her obligations and violated the trust the City placed in her when she took bribes in exchange for smuggling dangerous narcotics and other contraband into Rikers Island jail facilities.   I thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their partnership with DOI in the effort to stop illegal contraband smuggling in the City’s jails.”

As alleged in the Complaint:[1]

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

For example, on April 11, 2024, CC-1, an associate of an inmate (“Inmate-1”), and BARRIENTOS discussed CC-1 sending BARRIENTOS a package through a delivery service.  On April 15, 2024, surveillance footage showed BARRIENTOS entering Inmate-1’s cell, where surveillance footage could not capture her actions.  Two days later, DOC searched Inmate-1’s cell and recovered sheets of paper that tested positive for the presence of cocaine.

On April 24, 2024, CC-1 sent BARRIENTOS another package using the delivery service.  When BARRIENTOS went to work later that day, a drug-detecting canine alerted for the presence of narcotics.  DOC employees searched BARRIENTOS’s belongings and found approximately 10 sheets of paper that tested positive for the presence of K2.  In an interview with law enforcement, BARRIENTOS falsely stated, among other things, that no inmate had ever asked her to bring them contraband.  Law enforcement officers then searched BARRIENTOS’s vehicle and recovered additional sheets of paper, as well as approximately $2,466 in cash, as shown in the following photographs:

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BARRIENTOS, 37, of Mount Vernon, New York, is charged with one count of conspiracy to commit honest services wire fraud and one count of conspiracy to distribute controlled substances, each of which carries a maximum sentence of 20 years in prison; and one count of false statements, which carries a maximum sentence of five years in prison.

The statutory maximum 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. Williams praised the outstanding investigative work of the FBI and DOI.

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABILASH KURIEN was sentenced to 32 months in prison by U.S. District Judge Jesse M. Furman in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of more than $32 million dollars in revenue.  KURIEN previously pled guilty to conspiracy to commit wire fraud and money laundering.

U.S. Attorney Damian Williams said: “Abilash Kurien betrayed his employer’s trust.  Over the course of more than a decade, Kurien took millions of dollars in kickbacks for himself and caused tens of millions in dollars in losses to the company he worked for.  This Office and our law enforcement partners will not stop in rooting out corporate fraud.”

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

From at least in or about 2009 through in or about July 2021, KURIEN and at least nine other individuals participated in a massive scheme to defraud Polar.  At all relevant times, KURIEN and three codefendants were senior executives of Polar (the “Executive Defendants”), and six codefendants (the “Vendor Defendants”) owned and operated various Polar vendors and customers.

The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants, and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar.  The fraud they perpetrated—which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar—led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade.

As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements as a result of their ownership of conflicted companies.

KURIEN was Polar’s Vice President of Marketing, Revenue Management, and Network Planning.  He personally received kickbacks totaling over $7 million.

Nine of the defendants charged in this case have pleaded guilty.  Skye Xu, the remaining defendant, is scheduled for trial on October 28, 2024.

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In addition to the prison term, KURIEN, 46, of Wilton, Connecticut, was sentenced to 3 years of supervised release.   KURIEN was also ordered to forfeit $7,192,064.41 and to make restitution to Polar in the amount of $22,956,341.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator of Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States filed a civil lawsuit against ROSE DEMOLITION & CARTING INC. (“ROSE”), alleging violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”), and simultaneously entered into a Consent Decree resolving that lawsuit.  The Consent Decree includes a $100,000 civil penalty and requires ROSE to take steps to mitigate potential harms caused by its conduct.

A link to the Consent Decree is here.

U.S. Attorney Damian Williams said: “Rose’s failure to contain actual or potential lead dust in the course of demolition work threatened to expose people, including children, to lead poisoning in communities that already suffer disproportionately from public health and environmental hazards.  Through this lawsuit and consent decree, we are holding Rose accountable for its misconduct and preventing future violations.”

EPA Regional Administrator Lisa F. Garcia stated: “This settlement underscores the importance of following the laws designed to protect communities, especially young children, from lead paint hazards.  Under the Renovation, Repair, and Painting Rule, work must be conducted by certified firms and individuals who are properly trained and equipped to handle toxic lead paint that could pose a serious threat to families and workers.”

TSCA and the RRP Rule impose safety requirements to minimize the risk that young children, tenants, and renovation workers are exposed to toxic lead dust during renovations of residential buildings.  Exposure to lead dust is the most common cause of lead poisoning, which can lead to severe, irreversible health problems, particularly in children.  Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems.

As alleged in the United States’ complaint filed in Manhattan federal court:

ROSE is a company that performed demolition work in at least 668 residential properties in New York City between 2016 and 2019.  In February 2018, the New York City Department of Health and Mental Hygiene inspected a worksite two days after ROSE had completed demolition work and found that ROSE had failed to contain or clean lead dust, resulting in lead dust exceeding federal standards in public hallways, in violation of the RRP Rule. EPA determined that ROSE failed to assign properly certified managers to direct the demolition work, failed to train its workers on lead-safe work practices, and failed to inform the building owner and occupants of the risks of lead poisoning during that renovation.  Many of ROSE’s alleged violations occurred in areas of New York City with low-income populations that are already disproportionately burdened by other environmental hazards, raising environmental justice concerns.

In the Consent Decree, ROSE admits, acknowledges, and accepts responsibility for the following conduct:

• Failing to assign a Certified Renovator to direct the demolition work and discharge all of the Certified Renovator responsibilities identified in the RRP Rule;
• Failing to ensure that all workers performing the renovations were Certified Renovators or had received training on lead-safe work practices required by the RRP Rule;
• Failing to adequately contain construction dust, including dust containing high concentrations of lead, in violation of the RRP Rule;
• Failing to post signs clearly defining its work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area in violation of the RRP Rule;
• Failing to provide a lead-hazard information pamphlet to the owner or occupants of the building before commencing work in violation of the RRP Rule; and
• Failing to maintain documentation showing that it provided lead-hazard information pamphlets to the owners or occupants of the building or that it had posted warning signs in the building, in violation of the RRP Rule.

Pursuant to the Consent Decree, ROSE will pay a penalty of $100,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable, and ROSE must comply with safe work practices and other RRP Rule requirements in the future. Additionally, the Consent Decree requires ROSE to notify residents or owners of the 668 affected properties as well as ROSE employees who worked on the affected properties of potential lead exposure and offer lead-dust inspection, cleanup, and clearance testing.  Failure to comply with the Consent Decree will give rise to significant additional penalties.

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To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.

Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter.

This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Mónica P. Folch is in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York; Katrina W. Berger, the Executive Associate Director of Homeland Security Investigations (“HSI”); Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”); William S. Walker, the Special Agent in Charge of the New York Field Office of HSI; Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the DEA; and Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of charges against FRANCISCO ALBERTO LOPEZ REYES, a/k/a “Frank,” and 17 other defendants located in the United States, Dominican Republic, and India for their involvement in a scheme to advertise, sell, manufacture, and ship millions of deadly pills disguised as legitimate pharmaceuticals.  These counterfeit pills were purchased by tens of thousands of victims from fake online pharmacies run by LOPEZ REYES and his co-conspirators.  At least nine of those victims later died of narcotics poisoning.  Federal authorities have seized nine website domains used by the defendants and their co-conspirators to sell counterfeit pills, four of which are named in the Indictment.  The case is assigned to U.S. District Judge John P. Cronan.

U.S. Attorney Damian Williams said: “The proliferation of fake online pharmacies is fueling this nation’s fentanyl epidemic.  As alleged, Francisco Lopez Reyes, a/k/a “Frank,” and his lieutenants have run a global network of these websites and aggressively marketed, manufactured, sold, and distributed millions of deadly fentanyl pills meant to mimic legitimate prescription drugs.  The victims of the scheme include people from all walks of life—people of all ages and occupations—from all 50 states, the U.S. Virgin Islands, Puerto Rico, Germany, and Slovenia.  At least nine victims who purchased counterfeit pills from the defendants died of narcotics poisoning, including a 45-year-old army veteran who thought she was purchasing real oxycodone.  Today’s charges show this Office’s unrelenting commitment to fighting the proliferation of fentanyl and counterfeit pharmaceuticals.  I commend the career prosecutors of the Southern District of New York and our partners at the Drug Enforcement Administration, Homeland Security Investigations, and the United States Postal Inspection Service for their tireless efforts to bring those poisoning our communities to justice.”

HSI Executive Associate Director Katrina W. Berger said: “Trafficking counterfeit pharmaceuticals is not just a crime; it is a threat to public health.  HSI is committed to working with our partners to stop those who poison our neighborhoods for the sake of profit.”

DEA Administrator Anne Milgram said: “The 18 defendants in this case operated a sophisticated network of fake online pharmacies and pill mills in India, the Dominican Republic, and the United States that preyed on Americans who believed they were purchasing legitimate medications from legitimate pharmacies.  The defendants exploited the online pharmacy market to sell counterfeit pills laced with fentanyl and methamphetamine to unsuspecting victims.  These individuals sold millions of dangerous fake pills to victims in every U.S. state and the District of Columbia.  The defendants did this to make money by driving addiction with deadly, highly-addictive fentanyl.  The DEA is relentlessly focused on saving lives by finding these criminal networks and shutting them down.”

HSI Special Agent in Charge William S. Walker said: “In just the last few months, Homeland Security Investigations agents, analysts, and task force officers in New York City have intercepted hundreds of pounds of fentanyl and other deadly narcotics. Investigators uncovered illicit clandestine drug labs operating in residential basements, and seized fentanyl from parcel facilities where day-to-day mail is processed.  We further uncovered strategies allegedly used by those who deal death to exploit parcel systems in furtherance their illegal enterprise.  HSI is on the frontlines of the fentanyl epidemic, doing everything in our power to prevent the deadly narcotic from reaching just one more victim.  We stand shoulder-to-shoulder with grieving families who were forced to say goodbye to their loved ones too soon.”

DEA Special Agent in Charge Frank A. Tarentino III said: “Over the past year, our DEA New York team, along with our law enforcement partners, targeted those individuals involved in the operation of illegal pill mills in the Bronx and Manhattan, producing deadly fake pills made up of fentanyl and methamphetamine.  This investigation demonstrates the complexity and global influence that predatory drug trafficking organizations have on our communities, families, and young people; many times, leaving a trail of devastation in its path.”

USPIS Inspector in Charge Daniel B. Brubaker said: “We are proud to be working with our law enforcement partners on this impactful case. These arrests represent the progress we have made to disrupt and ultimately dismantle this illegal narcotics distribution network.  The defendants allegedly took advantage of the online pharmaceutical space and preyed upon innocent victims who were in need of medication, people suffering with legitimate ailments.  Postal Inspectors will constantly be vigilant in this fight against fentanyl and all illicit drugs, to preserve the integrity of the mail and most importantly to keep our employees and the American public safe.”

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

The proliferation of unregulated online pharmacies has fueled the nation’s fentanyl epidemic, enabling drug traffickers to peddle direct-to-consumer counterfeit pharmaceuticals, which are devoid of the medication they purport to contain and are instead comprised of deadly narcotics like fentanyl and its analogues.

For at least the last two and a half years, a network of individuals located in the U.S., the Dominican Republic, India, and elsewhere have exploited Americans’ reliance on online pharmacies by advertising, selling, manufacturing, and shipping through the mail millions of unregulated counterfeit prescription pills to tens of thousands of victims.  Instead of prescription drugs at a bargain, what customers actually received were phony pills made of fentanyl, para-fluorofentanyl—an analogue of fentanyl—and methamphetamine.  Shaped, dyed, and stamped to be indistinguishable from actual prescription medication, these tablets were in fact manufactured by the defendants in industrial-scale milling facilities, or pill mills, located in the basements of several residential buildings in, among other places, Manhattan and the Bronx, New York.

As part of this scheme, the defendants shipped counterfeit pharmaceuticals to victims across the United States and around the world, including in all 50 U.S. states, Washington, D.C., the U.S. Virgin Islands, Puerto Rico, Germany, and Slovenia.  The victims of this criminal enterprise range in age from at least 23 to 77 years old. They include veterans, doctors, lawyers, musicians, artists, politicians, economists, restaurant managers, personal trainers, dancers, former schoolteachers, administrative executives, and first responders, among others.

Between in or about August 2023 and in or about June 2024, at least nine victims—all of whom purchased counterfeit prescription pills from the defendants—died of narcotics poisoning.  One victim, Victim-1, a 45-year-old woman, was a veteran who had served for 12 years in the U.S. Army National Guard.  Victim-1 believed she was purchasing 30-milligram oxycodone, also known as “M30s,” from the defendants’ online pharmacy, but the pills were, in fact, made of fentanyl and para-fluorofentanyl.  After receiving the pills, Victim-1 conducted research to attempt to learn whether the pills were genuine, but, because the defendants made the pills look real, Victim-1 was unable to tell the difference.  Five days after receiving counterfeit oxycodone pills advertised, sold, manufactured, and shipped by the defendants, Victim-1 died from acute fentanyl intoxication.  The fake oxycodone pills that killed Victim-1, which were recovered from her bedside, are pictured below:

LOPEZ REYES led the enterprise, orchestrating and controlling every facet of the scheme from the Dominican Republic.  With his co-conspirators, LOPEZ REYES set up dozens of online pharmacy websites, designed to appear legitimate in order to lure customers into buying, at reduced prices, tablets of fentanyl, para-fluorofentanyl, and methamphetamine disguised as real prescription medications, including oxycodone, hydrocodone, Adderall, and Xanax, among others.  LOPEZ REYES also relied on others, including SADIQ ABBAS HABIB SAYYED, a/k/a “Rakesh Sharma,” a/k/a “Jonathan Acosta,” KHIZAR MOHAMMAD IQBAL SHAIKH, and ALBA GONZALEZ to sell counterfeit pills to Americans over the internet and through encrypted messaging platforms.  The homepage of one such website, Curecog.com (“Curecog”), is pictured below.  Curecog purported to be a “US-based online pharma store” that was “approved” by the U.S. Food and Drug Administration (“FDA”), which “serve[s] affordable medicines . . . approved by specialists and manufactured by trusted brands.”  Curecog, however, was neither legitimate nor FDA approved.  Instead, Curecog was a fraudulent storefront that peddled the defendants’ controlled substances, including fentanyl.

To fulfill pill orders, LOPEZ REYES enlisted JUAN EFREN PAULINO, a/k/a “Freddy,” and JUAN MOISES PEREZ MENDEZ, a/k/a “Caballero,” as his principal lieutenants to oversee the operation of multiple pill mills in New York City.  At those pill mills, workers used dyes with specific colors and specialized equipment with custom molds to press powdered narcotics so as to mimic the color, shape, size, and markings of commercially manufactured prescription pills, at rates of up to 100,000 pills every 12 hours.  Law enforcement raided at least three of these pill mills and two other narcotics storage locations, seizing approximately 625,000 counterfeit pills—the majority of which contained fentanyl, para-fluorofentanyl, and/or methamphetamine—10 industrial pill presses, commercial mixers, industrial-grade gas masks, and more.  At these facilities, law enforcement also seized staggering quantities of not yet processed narcotics.  In total, law enforcement seized approximately 255 pounds of para-fluorofentanyl, 100 pounds of fentanyl, and 215 pounds of methamphetamine, in pill, powder, and crystal form.  Each of these seizures were a mere snapshot in time, representing only a single day’s working supply at these pill mills and storage locations.  Multiple defendants—including EFREN PAULINO, PEREZ MENDEZ, WELLINGTON EUSTATE ESPINAL, a/k/a “Roni,” HERIBERTO EUSTATE ESPINAL, a/k/a “Daulin,” EUSEBIO PERALTA BAUTISTA, a/k/a “Luis Collazo Santos,” HECTOR BIENVENIDO FELIZ FELIZ, a/k/a “Tacoma,” and LUIS PAULINO—worked at these pill mills day and night.  A photograph of the over 190,000 pills seized from just one of the defendants’ pill mills is pictured below:

After the defendants manufactured the counterfeit pills containing fentanyl and methamphetamine, a network of shippers, including MIGUEL CONCEPCION BRITO, CYNTHIA ONEGA, EDWARD EUSTATE JIMENEZ, a/k/a “Chino,” ROBERT JUNIOR RAMOS HENRIQUEZ, a/k/a “Junior,” a/k/a “Kiko,” JOSE CONCEPCION BRITO, ANGEL VALDEZ BRITO, and WILIANYI ALMANZAR POLANCO, packaged and mailed the pills to customers across the country at the direction of LOPEZ REYES, who specified to whom and where to ship particular types and quantities of pills.  After orders were delivered, the defendants and their co-conspirators bombarded customers with aggressive and manipulative marketing tactics to pressure their victims to order more illegal pills, including by providing unsolicited free samples via mail of counterfeit pills containing addictive and deadly fentanyl and near-daily outreach by phone call or text message.  One victim had to block up to 30 phone numbers in an effort to stop the harassment.

Information about safe, legal internet pharmacies is available.  According to the FDA, a safe, legal internet pharmacy:

• always requires a doctor’s prescription;
• has a physical address and telephone number in the United States;
• is licensed in the state(s) in which they are operating;
• is licensed in all states in which they do business; and
• has a state-licensed pharmacist on staff to answer patient questions.

The FDA also maintains the BeSafeRx campaign, with resources and tools to help make safer, more informed decisions when purchasing prescription medicine from an online pharmacy.  That resource is available at: https://www.fda.gov/drugs/quick-tips-buying-medicines-over-internet/besaferx-your-source-online-pharmacy-information.

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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 will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the El Dorado Task Force International Narcotics and Money Laundering Unit, which is comprised of law enforcement officers and investigators from the DEA, HSI, the New York City Police Department, the New York State Police, the USPIS, the Internal Revenue Service, and the Kings County District Attorney’s Office; the New York City Border Enforcement Security Task Force Contraband Group; the Organized Crime Drug Enforcement Task Forces’ (“OCDETF”) New York Strike Force; the USPIS New York Division Contraband Interdiction and Investigations Team; HSI New York; and the DEA New York Field Division.  Mr. Williams also thanked HSI Santo Domingo, the DEA Dominican Republic Country Office, the U.S. Marshals Service Dominican Republic Foreign Field Office, the U.S. Attorney’s Office for the District of New Jersey, and the Department of Justice’s Office of International Affairs for their assistance.

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 U.S., and bring criminals to justice. 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 Maggie Lynaugh, Adam Sowlati, Chelsea Scism, Katherine Cheng, Camille Fletcher, and Lisa Daniels 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.

Defendant

Age

Charges

Minimum and Maximum Penalties

FRANCISCO ALBERTO LOPEZ REYES, a/k/a “Frank”

JUAN EFREN PAULINO, a/k/a “Freddy”

JUAN MOISES PEREZ MENDEZ, a/k/a “Caballero”

Damian Williams, the United States Attorney for the Southern District of New York, announced that, on Friday, September 27, 2024, a jury found JAMIE ORSINI and NICHOLAS ORSINI guilty of carjacking resulting in death and conspiracy to commit carjacking. The ORSINIs were found guilty following a two-week trial before U.S. District Judge Philip M. Halpern.

U.S. Attorney Damian Williams said: “Over four years ago, in Beacon, New York, Jamie and Nicholas Orsini killed Jamie’s ex-husband, Steven Kraft, and engaged in a sophisticated scheme to hide their crime. Indeed, Kraft’s body still has not been found.  For more than four years, Kraft’s family has waited for justice.  Their wait is now over. With its verdict, the jury has now held Kraft’s ex-wife—Jamie Orsini—and her husband—Nicholas Orsini—responsible for that murder and subsequent cover-up.  This should serve as a lesson: if you commit a crime—if you commit a murder—it does not matter how well you cover your tracks, or how successfully you think you destroyed the evidence, law enforcement will not give up, and the career prosecutors of this Office and our law enforcement partners will never stop investigating and prosecuting these righteous cases.  If any member of the public has information that they wish to share with us about any unsolved murder, then we encourage you to come forward.”

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

In 2020, JAMIE and NICHOLAS ORSINI plotted the murder of JAMIE ORSINI’s ex-husband, Steven Kraft. As part of that murder, they planned a sophisticated cover-up, involving the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence.  Among other things, they purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, they repeatedly practiced “dry runs” for how they would move Kraft’s car, and they purchased a “burner phone” to use without law enforcement being able to trace the phone to them.  On April 28, 2020, in Beacon, New York, after Kraft dropped his daughters off with the ORSINIs, who had custody of their children, the ORSINIs killed Kraft and took his car and cellphone.  NICHOLAS ORSINI then drove the car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi.

After the murder, the ORSINIs managed to destroy or dispose of evidence—including Steven Kraft’s body—buying a new burner phone to use when they repeatedly drove to and from upstate New York, and creating large homemade incinerators.  JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, but kept hinting that, maybe if Kraft went to Newburgh after leaving her home, something might have happened to him there.

If you believe you have information related to the ORSINIs, or the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.

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JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were each convicted of: carjacking resulting in death; and participating in a conspiracy to commit carjacking.  The carjacking count carries a maximum sentence of life in prison, and the conspiracy count carries a maximum sentence of five years in prison.

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

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the New York State Police, which also supported the prosecution through trial.  He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Kaiya Arroyo, Michael D. Maimin, and Kathryn P. Wheelock are in charge of the prosecution, with the assistance of Paralegal Specialists Shannon Becker and Liam Ronan.

Damian Williams, the 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 Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of an Indictment charging ERIC ADAMS, the Mayor of New York City, with bribery, campaign finance, and conspiracy offenses.  The case is assigned to U.S. District Judge Dale E. Ho.

U.S. Attorney Damian Williams said: “As alleged, Mayor Adams abused his position as this City’s highest elected official, and before that as Brooklyn Borough President, to take bribes and solicit illegal campaign contributions.  By allegedly taking improper and illegal benefits from foreign nationals—including to allow a Manhattan skyscraper to open without a fire inspection—Adams put the interests of his benefactors, including a foreign official, above those of his constituents.  This Office and our partners at the FBI and DOI will continue to pursue corruption anywhere in this City, especially when that corruption takes the form of illegal foreign influence on our democratic system.”

FBI Assistant Director James E. Dennehy said: “Today’s indictment serves as a sobering moment but also sends a powerful message to every elected official in this country: public service is a profound responsibility, and it should be a noble calling.  When that’s perverted by greed and dishonesty, it robs us of our trust.  This is a reminder that no one is above the law or beyond reproach.”

DOI Commissioner Jocelyn E. Strauber said: “The indictment unsealed today alleges that Mayor Adams abused his power and position for nearly a decade, obtaining personal benefits and illegal campaign contributions from foreign nationals, and others, giving them undue influence over him.  As charged, this illegal conduct compromised his integrity as an elected official and New Yorkers expect better.  I thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their commitment to partner with DOI to root out corruption in City government.”

As alleged in the Indictment:[1]

For nearly a decade, ADAMS has used his prominent positions in New York City government to obtain illegal campaign contributions and luxury travel. ADAMS solicited and accepted these benefits from foreign nationals, businessmen, and others.  ADAMS then pressured the New York City Fire Department to facilitate the opening of a foreign government’s Manhattan skyscraper that had not passed a fire inspection.  To conceal this criminal conduct, ADAMS took steps to hide his receipt of improper benefits from the public and law enforcement.

In 2014, ADAMS was elected Brooklyn Borough President.   Thereafter, ADAMS sought  and accepted improper valuable benefits, such as luxury international travel, including from wealthy foreign businesspeople and at least one Turkish government official seeking to gain influence over him.  By 2018, ADAMS—who had by then made known his plans to run for Mayor of New York City—not only accepted, but sought illegal campaign contributions to his 2021 mayoral campaign from foreign nationals, as well as other things of value.  As ADAMS’s prominence and power grew, his foreign-national benefactors sought to cash-in on their corrupt relationships with him, particularly when it became clear that ADAMS would become New York City’s mayor in 2021.  ADAMS agreed, providing favorable treatment in exchange for the illicit benefits he received.  After his inauguration as Mayor of New York City, ADAMS soon began preparing for his next election, including by planning to solicit more illegal contributions and granting requests from those who supported his 2021 mayoral campaign with such donations.

ADAMS sought and accepted illegal campaign contributions in the form of “nominee” or “straw” contributions, meaning that the true contributors conveyed their money through nominal donors, who falsely certified they were contributing their own money. By smuggling their contributions to ADAMS through U.S.-based straw donors, ADAMS’s overseas contributors defeated federal laws that serve to prevent foreign influence on U.S. elections. Wealthy individuals evaded laws designed to limit their power over elected officials by restricting the amount any one person can donate to a candidate.  And businesses circumvented New York City’s ban on corporate contributions by funneling their donations through multiple employees, frustrating a law which seeks to reduce corporate power in politics.  ADAMS increased his fundraising by accepting these concealed, illegal donations—at the cost of giving his secret patrons the undue influence over him that the law tries to prevent.

ADAMS compounded his gains from the straw contributions by using them to defraud New York City and steal public funds.  New York City has a matching funds program that matches small-dollar contributions from individual City residents with up to eight times their amount in public funds, to give New Yorkers a greater voice in elections.  ADAMS’s campaigns applied for matching funds based on known straw donations, fraudulently obtaining as much as $2,000 in public funds for each illegal contribution. ADAMS and those working at his direction falsely certified compliance with applicable campaign finance regulations despite ADAMS’s repeated acceptance of straw donations, relying on the concealed nature of these illegal contributions to falsely portray his campaigns as law-abiding.  As a result of those false certifications, ADAMS’s 2021 mayoral campaign received more than $10,000,000 in public funds.

ADAMS also sought and received other improper benefits from some of the same co-conspirators who funneled straw donations to his campaigns.  In particular, a senior official in the Turkish diplomatic establishment (the “Turkish Official”), who facilitated many straw donations to ADAMS, also arranged for ADAMS and his companions to receive free or discounted travel on Turkey’s national airline (the “Turkish Airline”), which is owned in significant part by the Turkish Government, to destinations including France, China, Sri Lanka, India, Hungary, and Turkey itself.  The Turkish Official and other Turkish nationals further arranged for ADAMS and his companions to receive, among other things, free rooms at opulent hotels, free meals at high-end restaurants, and free luxurious entertainment—while in Turkey.

ADAMS and others working at his direction repeatedly took steps to shield his solicitation and acceptance of these benefits from public scrutiny.  ADAMS did not disclose the travel benefits he had obtained in annual financial disclosures he was required to file as a New York City employee.  Sometimes, ADAMS agreed to pay a nominal fee, to create the appearance of having paid for travel that was heavily discounted.  Other times, ADAMS created and instructed others to create fake paper trails, falsely suggesting that he had paid, or planned to pay, for travel benefits that were actually free.  And ADAMS deleted messages with others involved in his misconduct, including, in one instance, assuring a co-conspirator in writing that he “always” deleted her messages.

In September 2021, the Turkish Official told ADAMS that it was his turn to repay the Turkish Official, by pressuring the New York City Fire Department (“FDNY”) to facilitate the opening of a new Turkish consular building—a 36-story skyscraper—without a fire inspection, in time for a high-profile visit by Turkey’s president. At the time, the building would have failed an FDNY inspection.  In exchange for free travel and other travel-related bribes in 2021 and 2022 arranged by the Turkish Official, ADAMS did as instructed.  Because of ADAMS’s pressure on the FDNY, the FDNY official responsible for the FDNY’s assessment of the skyscraper’s fire safety was told that he would lose his job if he failed to acquiesce, and, after ADAMS intervened, the skyscraper opened as requested by the Turkish Official.

If you believe you have information related to bribery, fraud, or any other illegal conduct by ADAMS or any other New York City employees, please contact DOI at tipline@doi.nyc.gov or (212) 825-2828. 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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ADAMS, 64, of Brooklyn, New York, is charged with one count of conspiracy to receive campaign contributions from foreign nationals and commit wire fraud and bribery, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; two counts of soliciting campaign contributions from foreign nationals, which each carry a maximum sentence of five years in prison; and one count of soliciting and accepting a bribe, which carries a maximum sentence of 10 years in prison. 

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

Mr. Williams praised the outstanding work of the FBI and DOI.

The prosecution of this case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Hagan Scotten, Celia V. Cohen, Andrew Rohrbach, and Derek Wikstrom 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.

A link to the Indictment is here. 

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin” (“AUSTIN”) was convicted Tuesday, September 24, 2024, of three criminal counts stemming from his participation in a conspiracy to commit wire fraud, money laundering, and the interstate transportation of stolen property.  The defendant and his son, BRANDON AUSTIN (“BRANDON”), were responsible for defrauding numerous victims across the country of millions of dollars.  AUSTIN was convicted after a jury trial before U.S. District Judge P. Kevin Castel.  The defendant’s son, BRANDON, previously pled guilty to conspiracy to commit money laundering and was sentenced principally to 4 years in prison. 

U.S. Attorney Damian Williams said: “A unanimous jury has found that Hugh Austin engaged in a yearslong fraud and money laundering scheme. Austin’s scheming caused millions of dollars of losses.  Austin even conspired with his own son to rip off his victims.  Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Austin’s crime spree has come to an end, and he will be held accountable for his conduct.”    

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

AUSTIN participated in a scheme with his son BRANDON and others to steal money from entrepreneurs, investors, and other victims by fraudulently offering to, among other things: serve as a broker for sales of large quantities of cryptocurrency; provide short-term investments in cryptocurrency for purportedly high returns; and secure investors for startups and other small businesses from their purported network of high-net-worth individuals.  AUSTIN also frequently sought personal loans from friends and acquaintances in connection with AUSTIN’s purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest.  In each instance, investors and lenders lost their money, and AUSTIN and BRANDON frequently spent investors’ funds on personal expenses, including airline travel, luxury hotels, restaurants, shopping, transfers of money to relatives, as well as nominal payments to victims to prolong the scheme.  Over the course of the scheme, AUSTIN and BRANDON have caused millions of dollars in losses to numerous victims all over the country.  Below are several examples of victims defrauded by AUSTIN and BRANDON.

• In or about August 2018, AUSTIN and BRANDON fraudulently induced a California-based investment firm to send an interstate wire transfer of approximately $5 million to a Manhattan-based attorney for the purported purchase of cryptocurrency, which was never provided to the victim.
• In or about September 2018, AUSTIN and BRANDON fraudulently induced a cryptocurrency start-up company to send an interstate wire transfer of approximately $100,000 as a short-term loan for a purported cryptocurrency transaction; instead of using the funds as promised, AUSTIN and BRANDON used the money to fund their lifestyle.
• In or about June 2020, AUSTIN and BRANDON laundered approximately $567,000 that had been sent via an interstate wire transfer to the trust account of a New York-based real estate attorney for a purported cryptocurrency transaction.
• In or about October 2021, AUSTIN and BRANDON stole approximately $528,000 that had been sent via an interstate wire transfer to the bank account of a Manhattan-based company for the purported purchase of Bitcoin.

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AUSTIN, 62, of Port Jefferson, New York, was convicted by a jury of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 year in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to receive stolen property, which carries a maximum sentence of five years in prison.  AUSTIN will be sentenced before Judge Castel on February 20, 2025.

The maximum potential 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. Williams praised the outstanding investigative work of Homeland Security Investigations.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that ISAIAH OKERE plead guilty today before U.S. District Judge Lewis Liman to charges stemming from his participation in an international conspiracy to defraud at least 15 victims of romance schemes, lottery scams, and business email compromise schemes.

U.S. Attorney Damian Williams said: “Isaiah Okere and his co-conspirators preyed on elderly and vulnerable victims, some of whom lost their entire life savings.  Even though he operated his scams from a country halfway around the world, this Office’s global reach ensures that he will be held accountable in the United States for his crimes.” 

According to Count One of the Information to which OKERE pled guilty and other statements and submissions made in Court:         

From at least in or about 2015 up to and including November 2019, OKERE and co-conspirator Timy Hakim conspired with members of the “Black Axe” transnational criminal organization to engage in fraudulent schemes that left at least 15 people and entities with over a million dollars in losses.  OKERE facilitated the laundering of proceeds of three types of fraud schemes, a “Romance Scheme,” a “Lottery Scheme,” and a “BEC Fraud Scheme.” Through the Romance Scheme, a vulnerable individual was led to believe she or he was in a romantic online relationship with a perpetrator of the Scheme when, in fact, the perpetrator merely used this as a mechanism to build the victim’s trust and solicit the victim’s money.  Through the Lottery Scheme, the scheme participants informed certain victims that they had won a cash prize but first needed to make certain payments to access the funds.  Through the BEC Fraud Scheme, the scheme participants induced a corporate victim located in Manhattan to release company funds under fraudulent pretenses by impersonating the founder of the company.

OKERE used accounts under false identities to communicate directly with his U.S. victims.  He also controlled multiple foreign bank accounts in South Africa that received funds from victims targeted by these schemes.  

At least 15 individual and corporate victims lost money as part of OKERE, Hakim, and their co-conspirators’ schemes.  They include vulnerable, isolated, and elderly victims who entered into relationships after the deaths of their spouses and, over a period of several years, were induced to drain their entire retirement savings and take out loans from family and friends.  Many victims experienced severe emotional harm, including a woman who reported becoming suicidal after losing her retirement savings to this scheme.

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OKERE, 42, a citizen of the Republic of Nigeria, was arrested in South Africa on the basis of a provisional arrest warrant in December 2021 and was extradited on August 23, 2024.  He pled guilty today to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.  

On September 27, 2023, co-defendant Timy Hakim was sentenced to two years in prison and was ordered to pay $1,414,043 in restitution and forfeit $671,452.

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 the judge.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the South African Department of Justice and Constitutional Development, National Prosecuting Authority of South Africa, and the South African Police Service.  The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.

The criminal case is being prosecuted by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and James Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging LUIS FILPO with racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm.  These charges relate to FILPO’s alleged membership in a street gang known as “the 200s,” operating in and around upper Manhattan.  As alleged, on January 31, 2019, FILPO and other 200s members shot and killed Roberto Vasquez, an innocent bystander who was mistaken for a gang rival.  FILPO, who was in New York State custody, was transferred to federal custody yesterday and made his initial appearance in federal court in Manhattan.  The case has been assigned to U.S. District Judge Paul A. Engelmayer.

U.S. Attorney Damian Williams said: “As alleged, Luis Filpo murdered Roberto Vasquez after mistaking him for a gang rival.  Thanks to the hard work of the prosecutors in this Office and our law enforcement partners, Filpo will finally be held to account for this heinous crime. We hope that these charges bring some measure of comfort to Mr. Vasquez’s family and make clear that this Office and our law enforcement partners will never stop investigating those who commit violence on our streets.”

According to the allegations in the Indictment unsealed yesterday in Manhattan federal court[1] and other court documents:

From at least in or about 2016 up to and including March 2022, in the Southern District of New York and elsewhere, FILPO was a member of the 200s street gang.  In order to fund the gang, protect its territory, and promote its standing, members of the 200s engaged in, among other things, narcotics trafficking and other acts of violence, including murder.  Members of the 200s sold narcotics in the gang’s territory and engaged in shootings as part of their gang membership.  In particular, on January 31, 2019, FILPO shot and killed Roberto Vasquez, an innocent bystander mistaken for a rival gang member, in the vicinity of 158th Street and Broadway Avenue, in Manhattan, New York.

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FILPO, 25, of New York, New York, is charged with one count of racketeering conspiracy, which carries a maximum term of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; and one count of causing death through use of a firearm, which carries a maximum term of life in prison or death.

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

Mr. Williams praised the outstanding investigative work of the FBI and New York City Police Department.

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Mathew Andrews and Patrick Moroney 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. 

Damian Williams, the United States Attorney for the Southern District of New York, announced that on Friday, September 20, 2024, a jury found CARLOS RAMIREZ, a/k/a “Guerra” guilty of racketeering conspiracy, murder, and firearms-related charges. RAMIREZ was found guilty following a two-week trial before U.S. District Judge Jesse M. Furman and is scheduled to be sentenced on January 9, 2025. 

U.S. Attorney Damian Williams said: “For more than a decade, the family members of Michael Beltre and Jordanny Correa have waited for justice.  Their wait is now over.  With its verdict, the jury has now held Carlos Ramirez, a/k/a “Guerra,” a leader of the Sunset Trinitarios, responsible for nearly a decade of drug trafficking, robberies, and violence, including the murder of these two young men, both teenagers at the time that they were shot to death.  It does not matter how long ago their lives were lost to the scourge of gang violence in this city.  I promise you that the career prosecutors of this Office and our law enforcement partners will never stop investigating and prosecuting these righteous cases.  If any member of the public has information that they wish to share with us about any unsolved murder in this city, then we encourage you to come forward.”

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

From 2010 to 2024, members of the Sunset Trinitarios, a violent drug trafficking organization and street gang founded in Sunset Park in Brooklyn, New York, committed a terrifying number of violent crimes, including multiple murders and attempted murders and numerous gunpoint robberies all across the metropolitan area.  RAMIREZ was one of the members of the Sunset Trinitarios during this period, and he rose to multiple positions of leadership within the gang, both out on the street and when he was incarcerated in the custody of state and federal detention facilities in New York City.  As a “devil soldier messenger” of the Sunset Trinitarios, which came to celebrate the murder of innocent victims and their purported delivery to the devil, RAMIREZ obtained two identical tattoos memorializing the two murders he committed on behalf of the gang.

On October 23, 2013, RAMIREZ participated in the murder of Michael Beltre, who was seventeen years old.  Beltre was shot multiple times on the street in the Bronx after RAMIREZ struck him and held him for another gang member to shoot.

On November 2, 2014, RAMIREZ murdered Jordanny Correa, who was nineteen years old.  RAMIREZ shot Correa multiple times at point-blank range inside an apartment in the Bronx.  

On February 28, 2023, RAMIREZ attempted to murder a former leader of the Sunset Trinitarios inside the Metropolitan Detention Center in Brooklyn.  RAMIREZ committed this attack because he believed that this former leader had previously supplied information to law enforcement.  With the help of others, RAMIREZ slashed and stabbed the victim with a knife, causing severe injuries to the victim’s face and the rest of his body in multiple locations.

10 others of RAMIREZ’s co-conspirators and fellow members of the Sunset Trinitarios previously pled guilty and are awaiting sentencing or have been sentenced, receiving sentences to date that have ranged from multiple years through life in prison.

If you believe you have information related to RAMIREZ or the Sunset Trinitarios, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.

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RAMIREZ, 29, of the Dominican Republic, was convicted of conspiracy to commit racketeering, murder in aid of racketeering, and the use of a firearm to commit murder. Each of the three offenses carries a maximum sentence of life in prison, and murder in aid of racketeering carries a mandatory sentence of life in prison.

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

Mr. Williams praised the outstanding work of the Drug Enforcement Administration’s Drug Enforcement Task Force and the New York City Police Department, which also supported the prosecution through trial.  Mr. Williams also thanked the Bureau of Prisons and the New York City Department of Correction for their assistance.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Thomas John Wright, Brandon D. Harper, and Timothy Ly are in charge of the prosecution, with the assistance of Paralegal Specialists William Coleman and Kiersten Luger.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSHUA HENNER was sentenced Friday, September 20, 2024, to 30 months in prison by U.S. District Judge John G. Koeltl for running two separate fraud schemes that stole over $2.4 million from victims.   HENNER previously pled guilty to one count of wire fraud before U.S. District Judge John G. Koeltl.  

U.S. Attorney Damian Williams said: “Joshua Henner deceived victims into loaning him millions of dollars across not one, but two fraud schemes.   Henner’s crimes ruined the lives of his victims: some have postponed retirement, others lost their life savings, while others have been forced to change professions or work multiple jobs to account for their significant financial losses.  This sentence sends the message that those who defraud others will receive significant prison sentences.”

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

From at least in or about March 2022 through at least in or about December 2022, HENNER ran two schemes that defrauded victims out of at least $2.4 million.  In the first scheme, HENNER solicited and obtained funds from victims based on representations that he had been an angel investor in a start-up (the “Company”) and that he needed funds to purchase additional shares in the Company to maintain his investment position.

To induce victims to give him funds, HENNER routinely made materially false oral and written statements, including lies about his previous investment in the Company and his ownership interest in the Company.  Without their knowledge or authorization, HENNER misappropriated his victims’ funds by, among other things, transferring the funds to himself and other individuals.   

HENNER also used, without authorization, the name and email address of a lawyer purportedly involved in the investments to communicate via email with his victims and foster the illusion that he was using the funds that his victims lent him for their intended purposes. 

In a second scheme, HENNER also induced at least six victims to lend him money to renovate an apartment that he did not own.  To carry out this fraud, HENNER, among other things, informed victims that he had contracted with a renovations company and created a fraudulent email address with the real name of an employee of the renovation company.  In truth and in fact, HENNER rented and did not own the apartment, HENNER was prohibited from renovating the apartment, and HENNER did not use the funds that his victims gave him to renovate the apartment.

*                *                *

In addition to the prison term, HENNER, 37, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $2,452,480 and make restitution in an amount to be determined.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and William S. Walker, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that SEAN COMBS, a/k/a “Puff Daddy,” a/k/a “P. Diddy,” a/k/a “PD,” a/k/a “Love,” was arrested last night and charged in a three count Indictment with racketeering conspiracy, sex trafficking, and transportation to engage in prostitution.  The Indictment unsealed today alleges that between 2008 and the present, COMBS abused, threatened, and coerced women and others, and led a racketeering conspiracy that engaged in sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice, among other crimes.  COMBS is expected to be presented in Manhattan federal court this afternoon before Magistrate Judge Robyn F. Tarnofsky. 

U.S. Attorney Damian Williams said: “As alleged in the Indictment, for years, Sean Combs used the business empire he controlled to sexually abuse and exploit women, as well as to commit other acts of violence and obstruction of justice.  Today, he is charged with racketeering and sex trafficking offenses.  If you have been a victim of Combs’ alleged abuse – or if you know anything about his alleged crimes – we urge you to come forward.  This investigation is far from over.”

HSI Acting Special Agent in Charge William S. Walker said: “Today, we shatter any false notion of impunity as we uncover the defendant's alleged pattern of manipulation, exploitation, and outright abuse.  Make no mistake: we are here today only because of the unwavering strength of victims and witnesses who have already endured unspeakable hardships.  I commend them for their courage and urge anyone who believes they are a victim of sex trafficking to contact HSI by email at Sextrafficking_outreach@hsi.dhs.gov, or via our mobile tip-line: 1-877-4-HSITIP.”

According to the Indictment unsealed today:[1]

From at least 2008 through the present, COMBS led a criminal enterprise that existed to facilitate his abuse and exploitation of women, to protect his reputation, and to conceal his conduct.  As part of that criminal enterprise, COMBS, along with other members and associates of the enterprise, committed crimes including sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice. 

Among other things, COMBS’ sexual abuse of women included causing them to engage in frequent, days-long sexual activity with male commercial sex workers, some of whom were transported over state lines.  These events, which COMBS referred to as “Freak Offs,” were elaborate sex performances that COMBS arranged, directed, and often electronically recorded.  To ensure participation in Freak Offs, COMBS used violence and intimidation, and leveraged his power over victims—power he obtained through obtaining and distributing narcotics to them, exploiting his financial support to them and threatening to cut off the same, and controlling their careers.  COMBS also threatened his victims, including by threatening to expose the embarrassing and sensitive recordings he made of Freak Offs if the women did not comply with his demands.   

COMBS’ efforts to control women included repeated physical abuse.  COMBS assaulted women by, among other things, striking, punching, dragging, throwing objects at, and kicking them.  COMBS similarly assaulted witnesses to his abuse.  These assaults often resulted in injuries to the victims, which took days or weeks to heal. 

To commit these crimes, COMBS relied on his power as the leader of a multi-faceted business empire.  Employees of COMBS' businesses—including high ranking supervisors, security staff, personal assistants, and household staff—acted as COMBS’ intermediaries to, among other things, arrange travel and hotel rooms; stock the hotel rooms for COMBS’ commercial sex activity; contact or locate women and other individuals whom he targeted for abuse; and conceal and cover up the abuse.  This criminal concealment included efforts to prevent law enforcement from learning about his abuse.

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

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COMBS, 54, of Miami, Florida, is charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; and one count of transportation for purposes of prostitution, which carries a maximum sentence of 10 years in prison. 

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

Mr. Williams praised the outstanding investigative work of HSI and the Southern District of New York Special Agents, Digital Forensic Unit, and the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area. 

This case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Meredith Foster, Emily A. Johnson, Christy Slavik, Madison Reddick Smyser and Mitzi Steiner.

The charges contained in the Indictment are merely accusations.  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.

Damian Williams, the United States Attorney for the Southern District of New York, announced that KYLE TSUI was sentenced today to 41 months in prison by U.S. District Judge Kenneth M. Karas for conducting a fraud scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to tens of thousands of customers.  TSUI previously pled guilty to wire fraud and mail fraud before U.S. Magistrate Judge Judith C. McCarthy, following his extradition from Spain in November 2023.  As part of his guilty plea, TSUI was ordered to forfeit the fraudulent proceeds he received from the scheme—more than $4.1 million—which TSUI paid in full in advance of sentencing and which may now be used to compensate victims of the scheme.   

U.S. Attorney Damian Williams said: “Kyle Tsui defrauded tens of thousands of innocent victims, whose health was put at risk with false allergy and sensitivity testing results.  Tsui’s company advertised ‘highly-rated’ allergy and sensitivity testing services but didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage.  Today’s sentence—and the recovery of all the money Tsui stole from victims of the scheme—sends a message that brazen schemes like Tsui’s do not pay.”

According to the allegations contained in the Indictment, court filings, and statements made in court, including during TSUI’s plea proceeding and sentencing:

From September 2018 through April 2019, TSUI orchestrated a scheme to defraud customers of his company, the “Allergy Testing Company,” by purporting to sell food and environmental sensitivity testing services that TSUI knew were not, in fact, being performed.  In total, TSUI sold fabricated tests worth approximately $5.9 million to more than 88,000 victims through an online marketplace. 

TSUI’s company promoted its “[h]ighly-rated, top selling sensitivity and intolerance test” that “determines how your body responds to 800 different food and environmental items” with just “a small hair sample.”  But rather than actually test the hair samples as customers were promised, TSUI directed that the hair samples be discarded in the trash without any laboratory analysis.  Customers then received fabricated test results purporting to identify certain foods and environmental factors that were “safe” for them and others that the customers were supposedly “sensitive” to and should avoid.       

If you believe you are a victim of the Allergy Testing Company fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.

*                *                *

In addition to the prison term, TSUI, 41, of Ontario, Canada, was sentenced to one year of supervised release and ordered to forfeit $4,165,884.70.  

Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service.  Mr. Williams also thanked the Hyde Park Police Department, the New York State Troopers, the Toronto Police Service, the Department of Justice’s Office of International Affairs, the Canadian Anti-Fraud Centre, and the Government of Spain for their assistance in the investigation.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Qais Ghafary and Benjamin Levander are in charge of the prosecution, which was previously handled by former Assistant U.S. Attorney Daniel Loss.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that KOFI AMANKWAA, a Bronx-based former immigration attorney, pled guilty to 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 today before U.S. District Judge Katherine Polk Failla.

U.S. Attorney Damian Williams said: “For years, Kofi Amankwaa oversaw a massive immigration fraud scheme, filing thousands of immigration documents falsely alleging that his clients were victims of abuse by their children or other family members.  Amankwaa’s actions undermined our U.S. immigration system, exploited VAWA — a law that allows noncitizen victims of domestic abuse a path to lawful permanent residence status — and victimized vulnerable clients in the process.  Today’s guilty plea highlights this Office’s dedication to holding accountable those who abuse the trust placed in them as attorneys and fraudulently use our immigration system as a tool for their own financial gain.” 

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 ever 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.

As part of today’s plea, AMANKWAA has agreed to forfeit $13,389,000 and pay $16,503,425 in restitution to his victims. 

If you believe you or your family member is a victim of VAWA fraud perpetrated by AMANKWAA, please contact USANYS.VAWAFraud@usdoj.gov.

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AMANKWAA, 70, of South River, New Jersey, pled guilty to one count of immigration fraud, which carries a maximum sentence of 10 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. Williams praised the outstanding investigative work of the Newark Field Office of Homeland Security Investigations.  Mr. Williams 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.

Damian Williams, the United States Attorney for the Southern District of New York, Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), and 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 ANTHONY SACCAVINO and BRIAN CORDASCO, two former chiefs of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”) with bribery, corruption, and false statements offenses.  SACCAVINO and CORDASCO were arrested this morning and will be presented today before U.S. Magistrate Judge Robyn F. Tarnofsky.  The case is assigned to U.S. District Judge Lewis J. Liman.

U.S. Attorney Damian Williams said: “As alleged, Anthony Saccavino and Brian Cordasco abused their authority as chiefs of the FDNY’s Bureau of Fire Prevention to line their pockets in a pay-to-play bribery scheme.  By allegedly selling priority access to the BFP’s services, which are vital to preventing New York City businesses and homes from fire-related incidents, Saccavino and Cordasco undermined the public trust and put their own greed above the interests of the taxpayers they swore to serve.  This Office and our partners at the DOI and FBI will continue to ensure that City officials who put themselves over the public interest will be held accountable.”

DOI Commissioner Jocelyn E. Strauber said: “When senior City officials provide special treatment in exchange for money, they abuse their authority, fail to serve New Yorkers fairly and equitably, and undermine confidence in the integrity of City government.  As alleged, two senior leaders of the Bureau of Fire Prevention, responsible for fire safety approvals and inspections, and facing a significant backlog, fast-tracked dozens of projects in exchange for tens of thousands of dollars in bribe payments.  I thank the FDNY for referring allegations of possible criminal conduct to DOI, prompting this investigation, and the U.S. Attorney’s Office for the Southern District of New York and the FBI for working with us to pursue this important case.”

FBI Assistant Director in Charge James E. Dennehy said: “The FDNY officials charged today allegedly took bribes to expedite the inspection process, undermining the fairness and integrity that are fundamental to our system.  By doing so, they not only compromised public safety but also eroded the public’s trust in those who are sworn to protect us.  Additionally, they damaged the trust of the overwhelming majority of New York City firefighters who are honest, hardworking public servants who dedicate their lives to protecting our communities, often putting themselves in harm's way to ensure our safety.  These men and women embody the highest standards of integrity and service.  The actions of a few should not overshadow the dedication and bravery of the many who wear the badge with pride and honor.”

As alleged in the Indictment:[1]

SACCAVINO and CORDASCO repeatedly abused their positions of trust as high-ranking officials in the FDNY from at least in or about 2021 through in or about 2023 by soliciting and accepting tens of thousands of dollars in bribe payments in exchange for providing preferential treatment to certain individuals and companies with matters pending before the BFP.

SACCAVINO and CORDASCO were at relevant times Chiefs of the BFP, which is responsible for overseeing and approving the installation of fire safety and suppression systems in commercial and residential buildings in New York City.  The BFP ensures that these systems comply with fire safety regulations by, among other things, reviewing and approving design plans and conducting on-site inspections of installed systems.  In many cases, BFP approvals are required before a building can be occupied or opened to the public.  As Chiefs of Fire Prevention—and, ultimately, the top two ranking members of the BFP—during the relevant period, SACCAVINO and CORDASCO supervised the BFP personnel who conducted these plan reviews and inspections.  For nearly two years, SACCAVINO and CORDASCO misused their authority as Chiefs for their private financial gain.

Specifically, SACCAVINO and CORDASCO solicited and accepted bribes from a retired FDNY firefighter, Henry Santiago Jr., who ran an unsanctioned “expediting” business (the “Santiago Company”).  Acting in large part at the direction of SACCAVINO and CORDASCO, Santiago promised his customers that he could “expedite”—or fast-track—their plan reviews and inspection dates with the BFP, in exchange for payment.   Santiago made this claim even though the BFP generally addressed applications on a first-come, first-served basis, and notwithstanding the significant wait times that BFP applicants generally faced during the relevant period. 

Behind the scenes, after a customer had hired the Santiago Company, SACCAVINO and CORDASCO directed BFP personnel to prioritize that customer’s plan review or inspection request in exchange for bribe payments from Santiago and/or the Santiago Company.  In carrying out their official duties as Chiefs, SACCAVINO and CORDASCO justified the priority requests within the FDNY by lying to their BFP subordinates about the basis for their directions to prioritize certain projects over others.   Santiago was paid by the customers of his company for this “expediting” and, in turn, Santiago made bribe payments to SACCAVINO and CORDASCO to obtain preferential treatment by the BFP for the Santiago Company’s customers. 

Collectively, SACCAVINO, CORDASCO, and Santiago received more than $190,000 in payments in connection with this scheme.

As part of the investigation into this bribery scheme, in or about February 2024, SACCAVINO and CORDASCO each participated in voluntary interviews with the FBI.  During those interviews, SACCAVINO and CORDASCO each repeatedly made false statements in an effort to conceal their involvement in the bribery scheme.

*                *                *

If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact tipline@doi.nyc.gov or (212) 825-2828.  If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

SACCAVINO, 59, of New York, New York, and CORDASCO, 49, of Staten Island, New York, are each charged with one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of five years in prison; one count of solicitation and receipt of a bribe, which carries a maximum sentence of 10 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.

Santiago, 46, of Staten Island, New York, pled guilty on September 10, 2024, to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of bribery, which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison; and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.  His case is assigned to U.S. District Judge Andrew L. Carter.  Under the terms of his plea agreement, Santiago agreed to cooperate with the Government.

The statutory maximum penalties 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. Williams praised the outstanding work of the DOI and FBI.

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

The 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 Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the filing of an Information charging PAUL ROBERTS, the founder, former Chief Executive Officer, and former Chairman of the Board of Directors of Kubient, Inc, a digital advertising technology company, with securities fraud.  The charge results from ROBERTS’s 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 Kubient’s 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 plead guilty today before U.S. District Judge Jennifer L. Rochon and is scheduled to be sentenced on December 18, 2024.

U.S. Attorney Damian Williams said: “Paul Roberts, the founder and former CEO of Kubient, inflated his company’s revenue and lied about the performance of one of its signature products, an AI-powered tool that was supposed to detect ad fraud in the digital advertising industry.  To carry out his scheme, Roberts had fake documents created to mislead the independent certified public accountants engaged to audit Kubient’s financial statements.  Today’s charge and guilty plea sends a message that this Office is committed to holding corporate executives accountable when they resort to fraud.”

USPIS Inspector in Charge Daniel B. Brubaker said: “Mr. Roberts was caught lying about Kubient’s AI fraud detection tool.  And in this case, the only thing that was detected as fraudulent was what Mr. Roberts told investors to improperly bolster his company’s revenue during Kubient’s IPO.  This is our promise to the American public: Postal Inspectors along with our law enforcement partners will continue to protect investors from falling victim to greedy individuals.”

As alleged in the Information:

In or about May 2017, ROBERTS founded Kubient, Inc. (“Kubient”), a digital advertising technology company headquartered in New York, New York.  From in or about August 2020 to in or about November 2023, Kubient’s shares were publicly traded on the Nasdaq stock exchange under the ticker “KBNT.”  At various times relevant to the Information, ROBERTS was Kubient’s Chief Executive Officer, Chairman of the Board of Directors, Interim Chief Executive Officer, President, and Chief Strategy Officer.

From at least in or about October 2019 through at least in or about March 2021, ROBERTS executed an accounting fraud scheme at Kubient.  During that time, ROBERTS caused Kubient to improperly recognize more than $1.3 million in fraudulent revenue in Kubient’s financial statements (the “Fraudulent Revenue”).  The Fraudulent Revenue was over 94% of Kubient’s reported revenue for 2020 at the time of its initial public offering (“IPO”) in or about August 2020, over 74% of its reported revenue for 2020 at the time of its secondary public offering in or about December 2020, and approximately 45% of Kubient’s reported revenue for all of 2020, as reported in Kubient’s 2020 annual financial statement filed with the U.S. Securities and Exchange Commission (the “SEC”) on SEC Form 10-K in or about March 2021.  With his scheme, ROBERTS misled Kubient’s auditors and deceived the investing public about Kubient’s financial condition.

At the core of the accounting fraud scheme by ROBERTS was a fraudulent $1.3 million transaction that ROBERTS arranged between Kubient and another digital advertising technology company (“Company-1”) and one of Company-1’s affiliates (the “Company-1 Affiliate”).  In a set of three contracts negotiated and executed together in or about October 2019, Kubient and Company-1 agreed to provide certain services to the other for nearly identical fees.  Under the terms of two contracts, Kubient agreed to use its proprietary fraud detection tool Kubient Artificial Intelligence (“KAI”) to scan data provided by Company-1 and the Company-1 Affiliate for instances of digital ad fraud and then deliver the results of KAI’s findings to Company-1 and the Company-1 Affiliate (the “KAI Agreements” of the “KAI Transactions”).  At the same time, pursuant to a Data Services Agreement, Company-1 agreed to sell Kubient other data and provide certain data-related services.

From in or about January 2020 through in or about November 2020, Kubient paid Company-1 $1,300,336 and Company-1 paid Kubient $1,300,338.03 (which Kubient fraudulently recognized as revenue), but neither company ever provided any of the services they agreed to provide to the other company under the contracts.  For example, with respect to the KAI Transactions, Company-1 and the Company-1 Affiliate never sent Kubient any data to be scanned by KAI, Kubient never scanned any Company-1 or Company-1 Affiliate data with KAI, and Kubient never delivered any results or reports to Company-1 or the Company-1 Affiliate with any findings by KAI.

To conceal his fraudulent scheme, ROBERTS directed Kubient employees to generate fake KAI reports and misled them about how he intended to use such reports.  Rather than receive data from Company-1 or the Company-1 Affiliate to be scanned by KAI, ROBERTS had Kubient employees create “sample” KAI reports based, at first, on Kubient’s own data and then eventually based on made-up metrics and no underlying data at all.  ROBERTS told Kubient employees he needed these “samples” to demonstrate for bankers and potential investors the kind of reporting of which KAI was capable.  In fact, ROBERTS needed the “sample” KAI reports to mislead Kubient’s independent certified public accountants (the “Audit Firm”) into believing that Kubient had performed its contractual obligations to Company-1 and the Company-1 Affiliate under the KAI Agreements when, in fact, Kubient had not, so that Kubient could recognize the associated revenue in its financial statements.

ROBERTS repeatedly made material misrepresentations in SEC filings and in management representation letters submitted to the Audit Firm relating to Kubient’s KAI revenue recognition.  Contrary to representations ROBERTS made in these filings and letters, Kubient did not perform its obligations to Company-1 and the Company-1 Affiliate under the KAI Agreements and, consequently, none of the Fraudulent Revenue should have been recognized as revenue in Kubient’s financial statements.

In addition, ROBERTS 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.  For example, ROBERTS personally added language to Kubient’s SEC Form S-1 registration statements that ROBERTS signed and that Kubient filed in or about July, August, and December 2020, stating that, in 2020, KAI provided “two large enterprise clients” [i.e., Company-1 and the Company-1 Affiliate] “the ability to prevent the purchase of non-human or fraudulent advertising traffic” and that “KAI was identifying and preventing approximately 300% more digital ad fraud then [sic] the client’s current partners.”  ROBERTS made these statements knowing that they were false.  More specifically, ROBERTS knew that Kubient never received any data from Company-1 or the Company-1 Affiliate to scan with KAI pursuant to the KAI Agreements, that Kubient never scanned any of Company-1’s or the Company-1 Affiliate’s data with KAI, and that Kubient never delivered any results or reports to Company-1 or the Company-1 Affiliate with any findings by KAI, let alone that KAI was not “identifying and preventing approximately 300% more digital ad fraud” than Company-1’s and the Company-1 Affiliate’s “current partners.”

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 or about 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 or about December 2020.  Kubient’s IPO and its secondary public offering would not have been possible without ROBERTS’s fraudulent misrepresentations about KAI and the KAI Transactions.

*                *                *

ROBERTS, 48, of Melville, NY, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Williams praised the outstanding work of the USPIS.  Mr. Williams also thanked the SEC, which filed a civil action against ROBERTS after he pleaded 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. Attorneys Justin V. Rodriguez and Alex Rossmiller are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JIMMY SOLANO-ARIAS, a former armed security guard at the Jacob K. Javits Federal Office Building located at 26 Federal Plaza in Manhattan, was sentenced today to five years in prison by Judge Paul G. Gardephe in connection with SOLANO-ARIAS’s sexual assault of an asylum seeker (the “Victim”) on May 4, 2023.  On April 10, 2024, SOLANO-ARIAS pled guilty to lying to federal law enforcement agents following his sexual abuse of the Victim.  The sentencing today followed SOLANO-ARIAS’s guilty plea before U.S. Magistrate Judge Sarah Netburn.

U.S. Attorney Damian Williams said: “Jimmy Solano-Arias used his position as an armed security officer at a federal building to sexually assault a vulnerable asylum seeker.  In so doing, Solano-Arias abused a person he was charged with protecting, and then lied to cover up his crime.  Today’s sentencing demonstrates that those who exploit their position of public trust will be held accountable for their conduct.”

According to the Indictment, Superseding Information, other public court documents, and statements made during court proceedings:

On May 4, 2023, SOLANO-ARIAS was employed as a security guard by a company that contracts with the Federal Protective Service of the Department of Homeland Security to provide armed security services at 26 Federal Plaza, New York, New York.  On that date, SOLANO-ARIAS was on duty, wore a black and gray security guard uniform, and carried his employer-issued firearm.

Early in the morning on May 4, 2023, the Victim went to 26 Federal Plaza for the purpose of submitting an asylum application.  Once there, SOLANO-ARIAS offered to assist the Victim with his asylum paperwork.  Instead of providing assistance, however, SOLANO-ARIAS led the Victim through non-public areas of 26 Federal Plaza, eventually secluding the Victim in a locked office on the second floor.  Inside the locked office, SOLANO-ARIAS demanded that the Victim perform oral sex on SOLANO-ARIAS.  When the Victim attempted to resist SOLANO-ARIAS’s demands, SOLANO-ARIAS reached to the company-issued firearm on his person.  Fearing that SOLANO-ARIAS would harm the Victim, the Victim performed oral sex on SOLANO-ARIAS, which caused physical pain and injury to the Victim.  Following the assault, when the Victim was able to leave the office, the Victim immediately reported the sexual assault to law enforcement.

The following morning, when SOLANO-ARIAS arrived at 26 Federal Plaza for his shift, law enforcement agents with the Federal Bureau of Investigation (“FBI”) approached SOLANO-ARIAS and asked to speak with him.  SOLANO-ARIAS agreed to speak with the federal agents.  During the interview that followed, SOLANO-ARIAS lied to the federal agents about his sexual abuse of the Victim, initially disclaiming entirely that he had engaged in a sexual act with the Victim and then falsely claiming that the sexual act was consensual when it was not.  SOLANO-ARIAS was arrested after the interview. 

*                *                *

In addition to the prison term, SOLANO-ARIAS, 45, of the Bronx, New York, was sentenced to three years of supervised release. 

Mr. Williams praised the outstanding investigative work of the FBI.  

The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Elizabeth Espinosa and Mitzi Steiner are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that OLUSEUN MARTINS OMOLE, a/k/a “Seun Omole,” was sentenced today to 10 years in prison by U.S. District Judge Jesse M. Furman for participating in a large-scale fraud conspiracy involving more than $16 million in consumer electronics and other goods that were fraudulently obtained from thousands of victims in the U.S. and elsewhere.  OMOLE previously pled guilty to one count of conspiracy to commit wire fraud before U.S. Magistrate Judge Katharine H. Parker.

U.S. Attorney Damian Williams said: “For approximately five years, Oluseun Martins Omole used his satellite communications business as a front to receive more than 23,000 laptops, tablets, smartphones, smartwatches, and other consumer goods.  These items—worth more than $16 million—were bought and sent by thousands of victims nationwide who were defrauded by Omole and his associates.  Omole’s fraud devastated victims: some had to take out loans, others fell into debt or declared bankruptcy, and some even attempted suicide.  Today’s sentence sends the message that a lengthy prison sentence will await those who participate in these destructive fraud schemes.”  

According to the allegations contained in the Indictment and Complaint, the plea agreement, and other public filings and statements made in court:

From at least in or about February 2018 through at least in or about March 2023, OMOLE participated in a criminal enterprise (the “Enterprise”) that scammed thousands of victims in the U.S. and elsewhere of more than $16 million in consumer electronics, including smartphones, smartwatches, laptops, and tablets, among other items.  The scams included romance scams, in which Enterprise members sent electronic communications to victims pretending to be interested in a romantic relationship, gained the victim’s trust and affection, and took advantage of that goodwill to induce the victim into sending consumer electronics and other money or property to OMOLE; online marketplace scams, in which Enterprise members contacted victims who were selling consumer electronics on online marketplaces, falsely represented to the victim that the Enterprise members had bought and paid for the consumer electronics, and instructed the victim to send the consumer electronics to OMOLE; and employment scams, in which Enterprise members posted phony job positions online, falsely informed unwitting victims that they were hired for the non-existent positions, and instructing the victim to send electronics to OMOLE under the guise that those electronics were needed for the non-existent position (together, the “Fraudulent Electronics Scams”).

During the relevant time period, OMOLE owned and operated a Texas-based business corporation named Tobylink Impressions, Inc. (“Tobylink”), which purported to be a distributor, re-seller, and supplier of satellite communications equipment.  In reality, however, Tobylink was a front through which OMOLE received more than 23,000 fraudulently obtained laptops, tablets, smartphones, smartwatches, and other consumer goods sent by thousands of victims nationwide, which OMOLE then repackaged and shipped in bulk to other members of the Enterprise located in Nigeria.  From February 2018 to October 2021, OMOLE received items from victims at a storage unit in Richmond, Texas, and from August 2021 to March 2023, OMOLE received items from victims at a warehouse in Sugar Land, Texas. 

In total, OMOLE charged his co-conspirators at least approximately $623,894.50 in duty fees and weight-based shipping fees in exchange for receiving and shipping more than $16 million in fraudulently obtained consumer electronics and other consumer goods.  OMOLE and his co‑conspirators’ actions victimized thousands of innocent people and caused substantial financial and emotional harm to those victims.  For example, among the victims were: a victim who lost more than $350,000 and had to take out a $200,000 loan on her house that she was only $6,000 away from paying off; a victim who lost more than $75,000 and needed to file for bankruptcy; a victim who incurred more than $18,000 in credit card debt, had his credit score negatively affected, began suffering health issues, and considered committing suicide; and a victim who lost more than $220,000, had her cats taken away by county authorities due to the financial harm, and attempted suicide on two occasions. 

If you believe you are a victim of the Fraudulent Electronics Scams and that you may be entitled to restitution, you may visit the following website: http://fbi.gov/TobylinkFraudVictims, or contact the following email address: TobylinkFraudVictims@fbi.gov.  Any responses should be received by no later than December 1, 2024. 

*                *                *

In addition to the prison term, OMOLE, 58, of Sugar Land, Texas, was sentenced to three years of supervised release, ordered to forfeit $623,894.50 and various consumer electronics and other goods seized by law enforcement, and ordered to make restitution in an amount to be determined. 

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.  Mr. Williams also thanked Homeland Security Investigations for its 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.

Damian Williams, the United States Attorney for the Southern District of New York, announced that RICHARD ZEITLIN, the owner of a telemarketing call center business, pled guilty today to conspiracy to commit wire fraud in connection with his participation in a scheme to use his call centers to defraud donors of certain political action committees (“PACs”) through false and misleading statements.  ZEITLIN pled guilty before U.S. District Judge Lewis A. Kaplan. 

U.S. Attorney Damian Williams said: “Richard Zeitlin used his telemarketing business to deceive donors into believing they were contributing to charitable causes when, in reality, their money was diverted to political action committees.  Zeitlin’s fraudulent actions not only undermined the trust of donors but also exploited their goodwill for personal gain.  Today’s announcement highlights this Office’s dedication to holding accountable those who misuse charitable and political organizations to defraud and mislead the public.”

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

PACs are entities registered with the Federal Election Commission that may be tax-exempt and collect money to advocate on behalf of or against certain causes and political candidates.  By contrast, charities, unlike PACs, typically provide direct services to communities or causes. 

From at least in or about 2017 up to and including in or about 2020, ZEITLIN used his telemarketing call center business and various associated entities to defraud numerous donors by providing misleading and false information about how the donors’ money would be spent and the nature of the organizations to which they were giving.  Specifically, ZEITLIN directed his employees to alter the call scripts used when calling potential donors on behalf of certain PACs in order to mislead potential donors into believing that they would be giving to a direct-services organization (i.e., a charity), rather than to a political advocacy organization (i.e., a PAC).  ZEITLIN directed that these lies, misleading statements, and misrepresentations be made so that donors would be more likely to give money, thereby increasing the funds raised and profits for his businesses – which typically received approximately 90% of the funds donated.  In some instances, Zeitlin’s businesses retained 100% of the funds donated with none of the money going to the causes described in telemarketing calls to donors.  When one PAC treasurer confronted ZEITLIN with complaints from donors that solicitation calls falsely represented a PAC as a charity, ZEITLIN falsely denied that the calls were being made, acknowledged that such calls would be inappropriate, and refused to give the treasurer any call recordings that would have revealed his fraud.  In or about May 2022, after learning that ZEITLIN and his businesses were under federal investigation, ZEITLIN directed his employees to delete electronic messages relating to his businesses. 

If you believe you are a victim of fraud perpetrated by ZEITLIN, please contact USANYS.PACFraud@usdoj.gov or the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or tips.fbi.gov, and find more information here: https://www.justice.gov/usao-sdny/united-states-v-richard-zeitlin. 

*                *                *

ZEITLIN, 54, of Las Vegas, Nevada, pled guilty to one count of conspiracy to commit wire fraud in connection with telemarketing, which carries a maximum sentence of 25 years in prison.

The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  ZEITLIN is scheduled to be sentenced by Judge Kaplan on December 10, 2024. 

Mr. Williams praised the outstanding investigative work of the FBI.   

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jane Kim, Emily Deininger, and Rebecca T. Dell are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that JESUS CONCEPCION was sentenced to 30 years in prison by U.S. District Judge Loretta A. Preska in connection with his sexual abuse of five minor victims who had been his students.  CONCEPCION previously pled guilty to five counts of child enticement, four counts of transportation of a minor with intent to engage in illegal sexual activity, and one count of travel with intent to engage in illegal sexual activity with a minor.

U.S. Attorney Damian Williams said: “Today, Jesus Concepcion was sentenced to decades in prison for his horrific exploitation of children placed into his care as students.  The victims of these crimes have waited almost twenty years for Concepcion to be held accountable for the devastating harm and trauma he inflicted on them and their families.  Today’s sentencing is a reminder that it is never too late for justice to be served and that the Southern District of New York will work tirelessly to protect children from abuse and exploitation.”   

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

CONCEPCION was a music teacher and orchestra instructor at a public charter middle school located in the Bronx, New York (“School-1”) from in or about 2000 up to and including in or about 2007.  During that same period, CONCEPCION abused his position as a teacher to induce and attempt to induce five of his students (“Minor Victim-1,” “Minor Victim-2,” “Minor Victim-3,” “Minor Victim-4,” and “Minor Victim-5,” and together the “Minor Victims”) to engage in sexual acts.  The Minor Victims were as young as 12 years old at the time of the abuse.

To carry out his sexual abuse of the Minor Victims, CONCEPCION singled out the Minor Victims for personal attention; he gave them money, clothing, jewelry, and other gifts, and he provided certain Minor Victims with alcohol to facilitate the abuse.  He persuaded the Minor Victims to believe that they were in romantic relationships with him and provided certain Minor Victims with cellphones so that he could communicate with them to arrange sexual encounters.

CONCEPCION engaged in sexual acts including, oral and vaginal sex, with Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4 in various locations on multiple occasions, including in School-1’s music room, in the back room of School-1’s auditorium, in his car, at motels, and at his residences.  On numerous occasions, CONCEPCION brought Minor Victims from School-1 or other locations in the Bronx to motels in New Jersey to sexually abuse them.  On at least one occasion, after Minor Victim-1 graduated from middle school, CONCEPCION traveled to Minor Victim-1’s high school in Connecticut to have sexual intercourse with her.  CONCEPCION also paid, on multiple occasions, for Minor Victim-2 to travel from her high school in Pennsylvania to visit him in New York, where he had sexual intercourse with her.  To continue his abuse, CONCEPCION threatened to physically harm Minor Victim-3 and her family if she told anyone about his sexual abuse of her and her younger sister, Minor Victim-4.

CONCEPCION similarly pursued Minor Victim-5 and sent hundreds of text messages over the course of several months to Minor Victim-5, who was then 13 years old, leading her to believe that they were in a romantic relationship.  CONCEPCION arranged to meet Minor Victim-5 during school hours at School-1 and kissed Minor Victim-5 on the mouth.  The abuse stopped only after Minor Victim-5’s parents discovered CONCEPCION’s communications and reported him.

*                *                *

In addition to the prison term, CONCEPCION, 51, of Simpsonville, South Carolina, was sentenced to 10 years of supervised release and ordered to pay a total of $1000 in assessments and restitution in an amount to be determined.

Mr. Williams praised the efforts of the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Alexandra S. Messiter, and Jacqueline Kelly are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a nine-count indictment charging four individuals—KELVIN FERNANDEZ, DEIVID PEREZ, a/k/a “Bujia,” JUAN LOPEZ, a/k/a “Secreto,” and MOISES HERNANDEZ DE LA CRUZ, a/k/a “Flaco”—with several federal crimes, including robbery, carjacking, and firearms offenses stemming from their roles in the Shooting Boys gang.  The defendants were arrested this morning and will be presented today before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court.  The case is assigned to U.S. District Judge George B. Daniels. 

U.S. Attorney Damian Williams said: “As alleged, the defendants went on a crime spree in Manhattan and the Bronx.  Their alleged violent robberies and car thefts—committed using a firearm, machete, and BB gun—left terrified New Yorkers in their wake.  Let these charges be a message to any gang members who think they can get away with perpetrating violence in our city: this Office will prosecute you to the fullest extent of the law.”

NYPD Commissioner Edward A. Caban said: “These arrests underscore the NYPD’s relentless efforts to identify and investigate the alleged members of ruthless gangs and crews plaguing our neighborhoods.  I commend our NYPD detectives and our partners in the office of the U.S. Attorney for the Southern District of New York for their ongoing work to eradicate gun violence in New York City and their commitment to preserving the safety of all New Yorkers.”

As alleged in the Indictment and other documents filed in federal court:[1]

The “Shooting Boys” gang is a criminal organization based in the University Heights section of the Bronx.  Since at least 2017, gang members have sold drugs, used guns, and committed numerous acts of violence against members of rival gangs.  Originally associated with the “Trinitarios” gang, the Shooting Boys broke off from the “Sunset” chapter of the Trinitarios in about 2018.  The defendants are members and associates of the Shooting Boys.

Between April 25 and May 10, 2022, the defendants committed gunpoint robberies of two convenience stores in Manhattan and the Bronx, robbed a third convenience store in the Bronx using a machete and a BB gun, committed an armed carjacking of a victim’s BMW in the Bronx, and forcibly stole a Jeep Cherokee from a victim in Queens, New York.  Still images from surveillance video capturing certain of these incidents are pictured below:

April 25, 2022, Gunpoint Convenience Store Robbery

April 30, 2022, Gunpoint Convenience Store Robbery

May 10, 2022, Machete and BB Gun Convenience Store Robbery

FERNANDEZ provided the other defendants with the firearm—a .357 revolver—and BB gun that were used during the charged incidents.  The .357 revolver was recovered by law enforcement and is pictured below.

*                *                *

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

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

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

This case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Dominic A. Gentile and Chelsea L. Scism 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.

Charge

Defendants

Maximum and Minimum Penalties

Count One

Conspiracy to Commit Hobbs Act Robbery

18 U.S.C. § 1951

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

MOISES HERNANDEZ DE LA CRUZ

Maximum: 20 years in prison

Count Two

Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

Maximum: 20 years in prison

Count Three

Firearms Offense

18 U.S.C. §§ 924(c) and 2

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

Maximum: Life in prison

Minimum: 7 years in prison, which must be consecutive to any other term imposed

Count Four

Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

Maximum: 20 years in prison

Count Five

Firearms Offense

18 U.S.C. §§ 924(c) and 2

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

Maximum: Life in prison

Minimum: 7 years in prison, which must be consecutive to any other term imposed

Count Six

Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KELVIN FERNANDEZ

MOISES HERNANDEZ DE LA CRUZ

DEIVID PEREZ

Maximum: 20 years in prison

Count Seven

Carjacking

18 U.S.C. §§ 2119 and 2

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

Maximum: 15 years in prison

Count Eight

Firearms Offense

18 U.S.C. § 924(c) and 2

KELVIN FERNANDEZ

JUAN LOPEZ

DEIVID PEREZ

Maximum: Life in prison

Minimum: 7 years in prison, which must be consecutive to any other term imposed

Count Nine

Interstate Transportation of a Stolen Vehicle

18 U.S.C. §§ 2312 and 2

MOISES HERNANDEZ DE LA CRUZ

DEIVID PEREZ

Maximum: 10 years in prison

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

Note: View the complaint here.

A Pakistani citizen residing in Canada, Muhammad Shahzeb Khan, 20, also known as Shahzeb Jadoon, was arrested on Sept. 4 in Canada in connection with a complaint filed in the Southern District of New York. Khan was charged with attempting to provide material support and resources to a designated foreign terrorist organization (FTO), the Islamic State of Iraq and al-Sham (ISIS).

“The defendant is alleged to have planned a terrorist attack in New York City around October 7th of this year with the stated goal of slaughtering, in the name of ISIS, as many Jewish people as possible,” said Attorney General Merrick B. Garland. “Thanks to the investigative work of the FBI, and the quick action of our Canadian law enforcement partners, the defendant was taken into custody. As I said to Canada’s Minister of Public Safety yesterday, we are deeply grateful to our Canadian partners for their critical law enforcement actions in this matter. Jewish communities — like all communities in this country — should not have to fear that they will be targeted by a hate-fueled terrorist attack. The Justice Department will continue to work closely with our domestic and international partners to aggressively counter the threat posed by ISIS and other terrorist organizations and their supporters.”

“The defendant was allegedly determined to kill Jewish people here in the United States, nearly one year after Hamas’ horrific attack on Israel. This investigation was led by the FBI, and I am proud of the terrific work by the FBI team and our partners to disrupt Khan's plan.” said FBI Director Christopher Wray. “The FBI will continue to work closely with our partners to investigate and hold accountable those who seek to commit violence in the name of ISIS or other terrorist organizations. Fighting terrorism remains the FBI’s top priority.”

As alleged in the complaint, Khan, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York. Khan began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, Khan distributed ISIS propaganda videos and literature. Subsequently, Khan began communicating with two undercover law enforcement officers (collectively, the UCs).

During those conversations, Khan confirmed that he and a U.S.-based ISIS supporter (Associate-1) had been planning to carry out an attack in a particular U.S. city (City-1). Among other things, Khan said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].” During subsequent conversations, Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place. Khan also provided details about how he would cross the border from Canada into the United States to conduct the attacks. During these conversations with the UCs, Khan emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”

On or about Aug. 20, Khan changed his target location from City-1 to New York City. After initially suggesting certain neighborhoods in New York City to the UCs, Khan decided to target Location-1, a Jewish center located in Brooklyn, New York. Khan told the UCs that he planned to carry out this attack on or around Oct. 7, 2024 — which Khan recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated FTO, which, on Oct. 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel. In support of his choice of New York City as his target location, Khan boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack. 

Thereafter, Khan continued to urge the UCs to acquire AR-style rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.” Khan repeatedly reiterated his desire to carry out the attack in support of ISIS, and discussed planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the United States. During one communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”

On or about Sept. 4, as Khan said he planned to do in connection with his attack, Khan attempted to reach the U.S-Canada border. To do so, Khan used three separate cars to travel across Canada towards the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.

Khan is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization. If convicted, he faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York, Chicago, and Los Angeles Field Offices are investigating the case. The Justice Department is grateful to Canadian law enforcement for their actions in this matter. The Office of International Affairs of the Department of Justice’s Criminal Division is seeking the extradition of Khan from Canada. 

Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York and Trial Attorney Kevin C. Nunnally of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.

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

Note: View the complaint here.

A Pakistani citizen residing in Canada, Muhammad Shahzeb Khan, 20, also known as Shahzeb Jadoon, was arrested on Sept. 4 in Canada in connection with a complaint filed in the Southern District of New York. Khan was charged with attempting to provide material support and resources to a designated foreign terrorist organization (FTO), the Islamic State of Iraq and al-Sham (ISIS).

“The defendant is alleged to have planned a terrorist attack in New York City around October 7th of this year with the stated goal of slaughtering, in the name of ISIS, as many Jewish people as possible,” said Attorney General Merrick B. Garland. “Thanks to the investigative work of the FBI, and the quick action of our Canadian law enforcement partners, the defendant was taken into custody. As I said to Canada’s Minister of Public Safety yesterday, we are deeply grateful to our Canadian partners for their critical law enforcement actions in this matter. Jewish communities — like all communities in this country — should not have to fear that they will be targeted by a hate-fueled terrorist attack. The Justice Department will continue to work closely with our domestic and international partners to aggressively counter the threat posed by ISIS and other terrorist organizations and their supporters.”

“The defendant was allegedly determined to kill Jewish people here in the United States, nearly one year after Hamas’ horrific attack on Israel. This investigation was led by the FBI, and I am proud of the terrific work by the FBI team and our partners to disrupt Khan's plan.” said FBI Director Christopher Wray. “The FBI will continue to work closely with our partners to investigate and hold accountable those who seek to commit violence in the name of ISIS or other terrorist organizations. Fighting terrorism remains the FBI’s top priority.”

As alleged in the complaint, Khan, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York. Khan began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, Khan distributed ISIS propaganda videos and literature. Subsequently, Khan began communicating with two undercover law enforcement officers (collectively, the UCs).

During those conversations, Khan confirmed that he and a U.S.-based ISIS supporter (Associate-1) had been planning to carry out an attack in a particular U.S. city (City-1). Among other things, Khan said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].” During subsequent conversations, Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place. Khan also provided details about how he would cross the border from Canada into the United States to conduct the attacks. During these conversations with the UCs, Khan emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”

On or about Aug. 20, Khan changed his target location from City-1 to New York City. After initially suggesting certain neighborhoods in New York City to the UCs, Khan decided to target Location-1, a Jewish center located in Brooklyn, New York. Khan told the UCs that he planned to carry out this attack on or around Oct. 7, 2024 — which Khan recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated FTO, which, on Oct. 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel. In support of his choice of New York City as his target location, Khan boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack. 

Thereafter, Khan continued to urge the UCs to acquire AR-style rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.” Khan repeatedly reiterated his desire to carry out the attack in support of ISIS, and discussed planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the United States. During one communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”

On or about Sept. 4, as Khan said he planned to do in connection with his attack, Khan attempted to reach the U.S-Canada border. To do so, Khan used three separate cars to travel across Canada towards the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.

Khan is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization. If convicted, he faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York, Chicago, and Los Angeles Field Offices are investigating the case. The Justice Department is grateful to Canadian law enforcement for their actions in this matter. The Office of International Affairs of the Department of Justice’s Criminal Division is seeking the extradition of Khan from Canada. 

Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York and Trial Attorney Kevin C. Nunnally of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.

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

Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Christopher Wray, the Director of the Federal Bureau of Investigation (“FBI”); and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the FBI, announced today that Muhammad Shahzeb Khan, a/k/a “Shahzeb Jadoon,” was arrested on September 4, 2024 in Canada in connection with a Complaint filed in the Southern District of New York charging KHAN with attempting to provide material support and resources to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”).  As alleged in the Complaint, KHAN, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York.  The U.S. Attorney’s Office for the Southern District of New York plans to seek the extradition of KHAN from Canada. 

U.S. Attorney Damian Williams said: “As alleged, Khan attempted to travel to the United States to carry out a terrorist attack and murder as many Jewish people as possible, all in support of ISIS.  Khan’s alleged crimes are a vivid reminder that we must remain vigilant in the fight against antisemitism and terror.  Thanks to our law enforcement partners and the career prosecutors of this Office, Khan’s alleged plan was disrupted before he reached the United States.  Let this be a reminder to anyone who seeks to harm our community:  This Office will stop at nothing to root you out and bring you to justice.”

Attorney General Merrick B. Garland said: “The defendant is alleged to have planned a terrorist attack in New York City around October 7th of this year with the stated goal of slaughtering, in the name of ISIS, as many Jewish people as possible.  Thanks to the investigative work of the FBI, and the quick action of our Canadian law enforcement partners, the defendant was taken into custody.  As I said to Canada’s Minister of Public Safety yesterday, we are deeply grateful to our Canadian partners for their critical law enforcement actions in this matter. Jewish communities – like all communities in this country – should not have to fear that they will be targeted by a hate-fueled terrorist attack.  The Justice Department will continue to work closely with our domestic and international partners to aggressively counter the threat posed by ISIS and other terrorist organizations and their supporters.”

FBI Director Christopher Wray said: “The defendant was allegedly determined to kill Jewish people here in the United States, nearly one year after Hamas’s horrific attack on Israel.  This investigation was led by the FBI and I am proud of the terrific work by the FBI team and our partners to disrupt Khan's plan.  The FBI will continue to work closely with our partners to investigate and hold accountable those who seek to commit violence in the name of ISIS or other terrorist organizations.  Fighting terrorism remains the FBI’s top priority.”

Acting FBI Assistant Director in Charge Christie M. Curtis said: “Terrorism has no place in our society, and today’s arrest sends a powerful message: if you attempt to provide support to ISIS or any terrorist group, the FBI will bring you to justice.  This case underscores the commitment of our Joint Terrorism Task Force in New York City, whose extraordinary and often unnoticed efforts continue to prevent deadly plots before they can be carried out.  Our partners are on the front lines every day, united to protect our nation from those who threaten our safety and way of life.”

As alleged in the Complaint unsealed today:[1]

KHAN, a Pakistani national residing in Canada, began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, KHAN distributed ISIS propaganda videos and literature.  Subsequently, KHAN began communicating with two undercover law enforcement officers (collectively, the “UCs”).  During those conversations, KHAN confirmed that he and a U.S.-based associate (“Associate-1”) had been planning to carry out an attack in a particular U.S. city (“City-1”).  Among other things, KHAN said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style assault rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].”  During subsequent conversations, KHAN repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place.  KHAN also provided details about how he would cross the border from Canada into the U.S. to conduct the attacks.  During these conversations with the UCs, KHAN emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”

On or about August 20, 2024, KHAN changed his target location from City-1 to New York City.  After initially suggesting certain neighborhoods in New York City to the UCs, KHAN decided to target Location-1, a Jewish center located in Brooklyn, New York.  KHAN told the UCs that he planned to carry out this attack on or around October 7, 2024—which KHAN recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated foreign terrorist organization, which, on October 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel.  In support of his choice of New York City as his target location, KHAN boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.”  KHAN proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack. 

Thereafter, KHAN continued to urge the UCs to acquire AR-style assault rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.”  KHAN repeatedly reiterated his desire to carry out the attack in support of ISIS, and continued planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the U.S.  During one communication, KHAN noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”

On or about September 4, 2024, as KHAN said he planned to do in connection with his attack, KHAN attempted to reach the U.S-Canada border.  To do so, KHAN traveled from the vicinity of Toronto, Canada towards the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.

*                *                *

KHAN, 20, a Pakistani citizen residing in Canada, is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. 

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

Mr. Williams praised the outstanding efforts of the New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, the FBI Field Offices in Chicago and Los Angeles, the New York City Police Department, and over 50 other federal, state, and local agencies, and thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the Office of International Affairs of the Department of Justice’s Criminal Division, and our law enforcement partners in Canada, including the Royal Canadian Mounted Police and Department of Justice Canada, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that VICTOR BYRNE was sentenced to 220 months in prison by U.S. District Judge Nelson S. Román for transporting two minors to engage in illegal sexual activity in 2006 and 2008.  The sentencing today followed BYRNE’s guilty plea on March 14, 2024.

U.S. Attorney Damian Williams said: “Victor Byrne used his position as a diving coach to sexually exploit young athletes.  Byrne’s conduct is the nightmare of every parent who entrusts their child to a coach.  Today’s sentencing demonstrates that the passage of years will not prevent us from holding child predators accountable for their conduct.”   

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

In or about July 2006, BYRNE transported a 16-year-old minor (“Victim-1”) from Cape Cod, Massachusetts, to Rockland County, New York, and, once in New York, engaged in illegal sexual activity with Victim-1.

 In or about February 2008, BYRNE arranged for a 16-year-old minor (“Victim-2”) to be transported from New Jersey to Rockland County, New York, and, thereafter, engaged in illegal sexual activity with Victim-2.

From in or about 2001 through at least 2009, BYRNE was a diving coach for competitive youth divers.  He coached several teams of youth divers in and around Rockland County, New York.  BYRNE began abusing Victim-1 when she was 14 years old.  For Victim-2, the abuse began when she was 16.  To gain the trust of his victims and their families and others he coached, BYRNE falsely held himself out as a police officer.

*                *                *

In addition to the prison term, BYRNE, 58, was sentenced to a lifetime of supervised release.

Mr. Williams praised the efforts of Homeland Security Investigations, the U.S. Marshal Service, the U.S. Attorney’s Office for the Middle District of Florida, and the New York City Police Department Special Victims Unit assigned to the HSI Human Trafficking Task Force in connection with this investigation.  He added that the investigation is ongoing.

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

Note: View the indictment here. 

An indictment charging Russian nationals Kostiantyn Kalashnikov, 31, also known as Kostya, and Elena Afanasyeva, 27, also known as Lena, with conspiracy to violate the Foreign Agents Registration Act (FARA) and conspiracy to commit money laundering was unsealed today in the Southern District of New York. Kalashnikov and Afanasyeva are at large. 

“The Justice Department has charged two employees of RT, a Russian state-controlled media outlet, in a $10 million scheme to create and distribute content to U.S. audiences with hidden Russian government messaging,” said Attorney General Merrick B. Garland. “The Justice Department will not tolerate attempts by an authoritarian regime to exploit our country’s free exchange of ideas in order to covertly further its own propaganda efforts, and our investigation into this matter remains ongoing.”

“Our approach to combating foreign malign influence is actor-driven, exposing the hidden hand of adversaries pulling strings of influence from behind the curtain," said Deputy Attorney General Lisa Monaco. “As alleged in today’s indictment, Russian state broadcaster RT and its employees, including the charged defendants, co-opted online commentators by funneling them nearly $10 million to pump pro-Russia propaganda and disinformation across social media to U.S. audiences. The Department will not tolerate foreign efforts to illegally manipulate American public opinion by sowing discord and division.”

“Covert attempts to sow division and trick Americans into unwittingly consuming foreign propaganda represents attacks on our democracy,” said FBI Director Christopher A. Wray. “Today’s actions show that as long as foreign adversaries like Russia keep engaging in hostile influence campaigns, they are going to keep running into the FBI. We will continue to do everything we can to expose the hidden hand of foreign adversaries like Russia and disrupt their efforts to meddle in our free and open society.”

“The Russian government has long sought to sow discord and chaos in the United States through propaganda and foreign malign influence campaigns,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As alleged, the covert operations by RT employees exploited our free and open press and targeted millions of Americans as unwitting victims of Russia’s psychological warfare.”

“As alleged, the Russian state broadcaster RT orchestrated a massive scheme to influence the American public by secretly planting and financing a content creation company on U.S. soil,” said U.S. Attorney Damian Williams for the Southern District of New York. “The instruments of the scheme were RT employees Kostiantyn Kalashnikov and Elena Afanasyeva, who managed the operation from Moscow using fake personas and shell companies, and the victims of the scheme were the American people, who received Russian messaging without knowing it. As the charges unsealed today demonstrate, this Office will work with our law enforcement partners to unmask and hold accountable all those who conduct malign influence campaigns in the United States, no matter how hard they try to hide their tracks.”

According to the court documents, RT, formerly known as Russia Today, is a state-controlled media outlet funded and directed by the Government of Russia. Over at least the past year, RT and its employees, including Kalashnikov and Afanasyeva, deployed nearly $10 million to covertly finance and direct a Tennessee-based online content creation company (U.S. Company-1). In turn, U.S. Company-1 published English-language videos on multiple social media channels, including TikTok, Instagram, X, and YouTube. Since publicly launching in or about November 2023, U.S. Company-1 has posted nearly 2,000 videos that have garnered more than 16 million views on YouTube alone. Many of the videos posted by U.S. Company-1 contain commentary on events and issues in the U.S., such as immigration, inflation, and other topics related to domestic and foreign policy. While the views expressed in the videos are not uniform, most are directed to the publicly stated goals of the Government of Russia and RT — to amplify domestic divisions in the United States. 

In order to carry out RT’s secret influence campaign in the United States, Kalashnikov and Afanasyeva operated under covert identities at U.S. Company-1. Posing as an outside editor, Kalashnikov edited U.S. Company-1 content, monitored U.S. Company-1’s funding and hiring, and introduced Afanasyeva as a member of his purported editing team. Using the fake personas Helena Shudra and Victoria Pesti, Afanasyeva posted and directed the posting by U.S. Company-1 of hundreds of videos. Afanasyeva also collected information from and gave instructions to U.S. Company-1  staff. For example, after the March 22, 2024, terrorist attack on a music venue in Moscow, Afanasyeva asked one of U.S. Company-1’s founders to blame Ukraine and the United States for the attack, writing: “I think we can focus on the Ukraine/U.S. angle. . . . [T]he mainstream media spread fake news that ISIS claimed responsibility for the attack yet ISIS itself never made such statements. All terrorists are now detained while they were heading to the border with Ukraine which makes it even more suspicious why they would want to go to Ukraine to hide.” 

Between in or about October 2023 and in or about August 2024, RT sent wire transfers to U.S. Company-1 totaling approximately $9.7 million, which represented nearly 90% of U.S. Company-1’s bank deposits from all sources combined. The wires were sent from shell companies in Turkey, the United Arab Emirates, and Mauritius, and were often accompanied by wire notes ascribing the payments to the purchase of electronics. For example, the wire note for a $318,800 wire payment from a shell entity in Turkey to U.S. Company-1 on March 1, read: “BUYING GOODS-INV.013-IPHONE 15 PRO MAX 512GB.” 

U.S. Company-1 never disclosed to its viewers that it was funded and directed by RT. Nor did U.S. Company-1 or its two founders register with the Attorney General as an agent of a foreign principal.

Kalashnikov and Afanasyeva both of Russia, are charged with conspiracy to violate FARA, 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. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorneys Alexander Li and Juliana Murray for the Southern District of New York and Trial Attorney Brett Reynolds of the Justice Department’s National Security Division Counterintelligence and Export Control Section are prosecuting the case.

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

Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Lisa Monaco, the Deputy Attorney General of the United States; Matthew G. Olsen, the Assistant Attorney General for National Security; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); and Christie M. Curtis, the Acting Assistant Director in Charge of the FBI’s New York Field Office, announced today the unsealing of an Indictment charging Russian nationals KOSTIANTYN KALASHNIKOV, a/k/a “Kostya,” and ELENA AFANASYEVA, a/k/a “Lena,” with conspiracy to violate the Foreign Agents Registration Act (“FARA”) and conspiracy to commit money laundering.  KALASHNIKOV and AFANASYEVA are at large. 

U.S. Attorney Damian Williams said: “As alleged, the Russian state broadcaster RT orchestrated a massive scheme to influence the American public by secretly planting and financing a content creation company on U.S. soil.  The instruments of the scheme were RT employees Kostiantyn Kalashnikov and Elena Afanasyeva, who managed the operation from Moscow using fake personas and shell companies, and the victims of the scheme were the American people, who received Russian messaging without knowing it.  As the charges unsealed today demonstrate, this Office will work with our law enforcement partners to unmask and hold accountable all those who conduct malign influence campaigns in the United States, no matter how hard they try to hide their tracks.”

Attorney General Merrick B. Garland said: “The Justice Department has charged two employees of RT, a Russian state-controlled media outlet, in a $10 million scheme to create and distribute content to U.S. audiences with hidden Russian government messaging.  The Justice Department will not tolerate attempts by an authoritarian regime to exploit our country’s free exchange of ideas in order to covertly further its own propaganda efforts, and our investigation into this matter remains ongoing.”

Deputy Attorney General Lisa Monaco said: “Our approach to combating foreign malign influence is actor-driven, exposing the hidden hand of adversaries pulling strings of influence from behind the curtain.  As alleged in today’s indictment, Russian state broadcaster RT and its employees, including the charged defendants, co-opted online commentators by funneling them nearly $10 million to pump pro-Russia propaganda and disinformation across social media to U.S. audiences.  The Department will not tolerate foreign efforts to illegally manipulate American public opinion by sowing discord and division.” 

FBI Director Christopher A. Wray said: “Covert attempts to sow division and trick Americans into unwittingly consuming foreign propaganda represent attacks on our democracy.  Today’s actions show that as long as foreign adversaries like Russia keep engaging in hostile influence campaigns, they are going to keep running into the FBI.  We will continue to do everything we can to expose the hidden hand of foreign adversaries like Russia and disrupt their efforts to meddle in our free and open society.”

Assistant Attorney General Matthew G. Olsen said: “The Russian government has long sought to sow discord and chaos in the United States through propaganda and foreign malign influence campaigns.  As alleged, the covert operations by RT employees exploited our free and open press and targeted millions of Americans as unwitting victims of Russia’s psychological warfare.”

FBI Acting Assistant Director Christie M. Curtis said: “As alleged in the indictment, Kostiantyn Kalashnikov and Elena Afanasyeva conspired with others to build a U.S.-based content creation company, which was secretly funded, directed, and controlled by RT – a Russian state-owned media enterprise.  They concealed the true nature of the company in order to covertly influence millions of American viewers.  The American public deserves to know when the online content it sees is generated and paid for by a hostile foreign government.  Investigating and dismantling foreign malign influence operations attempting to manipulate public opinion is central to the FBI's work to protect the American people.”

As alleged in the Indictment:[1] 

RT, formerly known as “Russia Today,” is a state-controlled media outlet funded and directed by the Government of Russia.  Over at least the past year, RT and its employees, including KALASHNIKOV and AFANASYEVA, deployed nearly $10 million to covertly finance and direct a Tennessee-based online content creation company (“U.S. Company-1”).  In turn, U.S. Company-1 published English-language videos on multiple social media channels, including TikTok, Instagram, X, and YouTube.  Since publicly launching in or about November 2023, U.S. Company-1 has posted nearly 2,000 videos that have garnered more than 16 million views on YouTube alone.  Many of the videos posted by U.S. Company-1 contain commentary on events and issues in the U.S., such as immigration, inflation, and other topics related to domestic and foreign policy.  While the views expressed in the videos are not uniform, most are directed to the publicly stated goals of the Government of Russia and RT — to amplify domestic divisions in the U.S. 

In order to carry out RT’s secret influence campaign in the U.S., KALASHNIKOV and AFANASYEVA operated under covert identities at U.S. Company-1.  Posing as an outside editor, KALASHNIKOV edited U.S. Company-1’s content, monitored U.S. Company-1’s funding and hiring, and introduced AFANASYEVA as a member of his purported editing team.  Using the fake personas “Helena Shudra” and “Victoria Pesti,” AFANASYEVA posted and directed the posting by U.S. Company-1 of hundreds of videos.  AFANASYEVA also collected information from and gave instructions to U.S. Company-1 staff.  For example, after the March 22, 2024, terrorist attack on a music venue in Moscow, AFANASYEVA asked one of U.S. Company-1’s founders to blame Ukraine and the U.S. for the attack, writing: “I think we can focus on the Ukraine/U.S. angle. . . . [T]he mainstream media spread fake news that ISIS claimed responsibility for the attack yet ISIS itself never made such statements.  All terrorists are now detained while they were heading to the border with Ukraine which makes it even more suspicious why they would want to go to Ukraine to hide.” 

Between in or about October 2023 and in or about August 2024, RT sent wire transfers to U.S. Company-1 totaling approximately $9.7 million, which represented nearly 90% of U.S. Company-1’s bank deposits from all sources combined.  The wires were sent from shell companies in Turkey, the United Arab Emirates, and Mauritius, and were often accompanied by wire notes ascribing the payments to the purchase of electronics.  For example, the wire note for a $318,800 wire payment from a shell entity in Turkey to U.S. Company-1 on March 1, 2024, read: “BUYING GOODS-INV.013-IPHONE 15 PRO MAX 512GB.” 

Neither U.S. Company-1, nor Founder-1, nor Founder-2 has ever registered with the Attorney General as an agent of a foreign principal.

*                *                *

KALASHNIKOV, 31, and AFANASYEVA, 27, both of Russia, are charged with conspiracy to violate FARA, 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.

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. Williams praised the outstanding investigative work of the Counterintelligence Division of the FBI’s New York Field Office.  Mr. Williams also thanked the FBI’s Memphis Field Office, the FBI’s Miami Field Office, the financial investigators of the U.S. Attorney’s Office, and the Department of Justice’s National Security Division for their assistance. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Alexander Li and Juliana Murray are in charge of the prosecution, with assistance from Trial Attorney Brett Reynolds of the Justice Department’s National Security Division Counterintelligence and Export Control Section.

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 constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a three-count criminal Indictment charging MICHAEL SMITH in connection with a scheme to create hundreds of thousands of songs with artificial intelligence and use automated programs called “bots” to stream the AI-generated songs billions of times.  SMITH fraudulently obtained more than $10 million in royalty payments through his scheme.  SMITH was arrested today and will be presented before a U.S. Magistrate Judge in North Carolina.

U.S. Attorney Damian Williams said: “As alleged, Michael Smith fraudulently streamed songs created with artificial intelligence billions of times in order to steal royalties.  Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed.   Today, thanks to the work of the FBI and the career prosecutors of this Office, it’s time for Smith to face the music.”

FBI Acting Assistant Director Christie M. Curtis said: “Michael Smith allegedly produced hundreds of thousands of songs with artificial intelligence and utilized automatic features to repeatedly stream the music to generate unlawful royalties to the tune of $10 million.  The defendant’s alleged scheme played upon the integrity of the music industry by a concerted attempt to circumvent the streaming platforms’ policies.  The FBI remains dedicated to plucking out those who manipulate advanced technology to receive illicit profits and infringe on the genuine artistic talent of others.”

As alleged in the Indictment:[1]

Music can be streamed through music streaming platforms such as Amazon Music, Apple Music, Spotify, and YouTube Music (the “Streaming Platforms”).  Each time a song is streamed through one of the Streaming Platforms, the songwriter who composed the song, the musician who performed it, and in certain cases other rights holders, are entitled to small royalty payments.  Royalty payments are made proportionately to musicians and songwriters, so that streaming fraud diverts funds from musicians and songwriters whose songs were legitimately streamed by real consumers to those who use automation to falsely create the appearance of legitimate streaming.

SMITH created thousands of accounts on the Streaming Platforms (the “Bot Accounts”) that he could use to stream songs.  He then used software to cause the Bot Accounts to continuously stream songs that he owned.  At a certain point in the charged time period, SMITH estimated that he could use the Bot Accounts to generate approximately 661,440 streams per day, yielding annual royalties of $1,207,128.

SMITH spread his automated streams across thousands of songs to avoid anomalous streaming as to any single song.  SMITH was aware that if, for example, a single song was streamed one billion times, it would raise suspicions at the Streaming Platforms and the music distribution companies that those streams were the result of streaming manipulation.  A billion fake streams spread across tens of thousands of songs, however, would be more difficult to detect, because each song would only be streamed a much smaller number of times.  As a result, SMITH repeatedly identified the need for more songs as crucial for facilitating the fraud scheme.  For example, on or about December 26, 2018, SMITH emailed two coconspirators that, “We need to get a TON of songs fast to make this work around the anti-fraud policies these guys are all using now.”

To obtain the necessary number of songs for his scheme to succeed, SMITH eventually turned to artificial intelligence.  In or about 2018, SMITH began working with the Chief Executive Officer of an AI music company (“CC-3”) and a music promoter (“CC-4”) to create hundreds of thousands of songs using artificial intelligence that SMITH could then fraudulently stream.  CC-3 soon began providing SMITH with thousands of songs each week that SMITH could upload to the Streaming Platforms and manipulate the streams for.  In a 2019 email to SMITH, CC-3 wrote: “Keep in mind what we’re doing musically here... this is not ‘music,’ it’s ‘instant music’ ;).” 

CC-3 ultimately provided SMITH with hundreds of thousands of AI songs for which he could manipulate the streams.  CC-3’s songs were typically given file names that were a randomized list of letters and numbers, such as “n_7a2b2d74-1621-4385-895d-b1e4af78d860.mp3.” 

SMITH then created randomly generated song and artist names for audio files so that they would appear to have been created by real artists rather than artificial intelligence.  For example, an alphabetically consecutive selection of 25 of the names of the AI songs SMITH used is as follows: “Zygophyceae,” “Zygophyllaceae,” “Zygophyllum,” “Zygopteraceae,” “Zygopteris,” “Zygopteron,” “Zygopterous,” “Zygosporic,” “Zygotenes,” “Zygotes,” “Zygotic,” “Zygotic Lanie,” “Zygotic Washstands,” “Zyme Bedewing,” “Zymes,” “Zymite,” “Zymo Phyte,” “Zymogenes,” “Zymogenic,” “Zymologies,” “Zymoplastic,” “Zymopure,” “Zymotechnical,” “Zymotechny,” and “Zyzomys.” 

Similarly, an alphabetically consecutive selection of 25 of the names of the “artists” of the AI songs SMITH used is as follows: “Calliope Bloom,” “Calliope Erratum,” “Callous,” “Callous Humane,” “Callous Post,” “Callousness,” “Calm Baseball,” “Calm Connected,” “Calm Force,” “Calm Identity,” “Calm Innovation,” “Calm Knuckles,” “Calm Market,” “Calm The Super,” “Calm Weary,” “Calms Scorching,” “Calorie Event,” “Calorie Screams,” “Calvin Mann,” “Calvinistic Dust,” “Calypso Xored,” “Camalus Disen,” “Camaxtli Minerva,” “Cambists Cagelings,” and “Camel Edible.”

SMITH made numerous misrepresentations to the Streaming Platforms in furtherance of the fraud scheme.  For example, SMITH repeatedly lied to the Streaming Platforms when he used false names and other information to create the Bot Accounts and when he agreed to abide by terms and conditions that prohibited streaming manipulation.  SMITH also deceived the Streaming Platforms by making it appear as if legitimate users were in control of the Bot Accounts and streaming music when, in fact, the Bot Accounts were hard coded to stream SMITH’s music billions of times.  SMITH also caused the Streaming Platforms to falsely report billions of streams of his music, even though SMITH knew that those streams were in fact caused by the Bot Accounts rather than real human listeners. 

SMITH’s hundreds of thousands of AI-generated songs were streamed by his Bot Accounts billions of times, which allowed him to fraudulently obtain more than $10 million in royalties.

*                *                *

SMITH, 52, of Cornelius, North Carolina, is charged with wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and money laundering conspiracy, 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 defendant will be determined by a judge.

Mr. Williams 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 Nicholas W. Chiuchiolo 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.

Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Lisa O. Monaco, the Deputy Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Matthew G. Olsen, the Assistant Attorney General for National Security, and Sanjay Virmani, Special Agent in Charge of the FBI Washington Field Office, announced today the unsealing of terrorism, murder conspiracy, and sanctions-evasion charges against six senior leaders of Hamas, a designated foreign terrorist organization.  The charges relate to the defendants’ central roles in planning, supporting, and perpetrating the terrorist atrocities that Hamas committed in Israel on October 7, 2023 (the “October 7 Hamas Massacres”), involving the murders and kidnappings of countless innocent civilians, including American citizens, which was the culmination of Hamas’s decades-long campaign of terrorism and violence against Israel and its allies, including American citizens.  The defendants are either deceased or remain at large.[1]

U.S. Attorney Damian Williams said: “For decades, Hamas and its leadership have dedicated themselves to the eradication of the State of Israel, and to murdering, maiming, and brutalizing anyone—including dozens of Americans—who stood in their way.  The October 7 Hamas Massacres, a depraved act of savagery carried out by Hamas, has, to date, resulted in over 40 American citizens being murdered.  This Office has long been dedicated to serving as a bulwark against terrorism and striking blows against its leaders.  Our commitment is clear: if you hurt one member of our community, you hurt all of us—and we stand with all victims of Hamas’s reign of terror.”

Attorney General Merrick B. Garland said: “The Justice Department has charged Yahya Sinwar and other senior leaders of Hamas for financing, directing, and overseeing a decades-long campaign to murder American citizens and endanger the national security of the United States. On October 7th, Hamas terrorists, led by these defendants, murdered nearly 1200 people, including over 40 Americans, and kidnapped hundreds of civilians. This weekend, we learned that Hamas murdered an additional six people they had kidnapped and held captive for nearly a year, including Hersh Goldberg-Polin, a 23 year old Israeli American. We are investigating Hersh’s murder, and each and every one of Hamas’ brutal murders of Americans, as an act of terrorism. The charges unsealed today are just one part of our effort to target every aspect of Hamas’ operations. These actions will not be our last.”

Deputy Attorney General Lisa O. Monaco said: “Yahya Sinwar and the other senior leaders of Hamas are charged today with orchestrating this terrorist organization’s decades-long campaign of mass violence and terror—including on October 7th.  On that horrible day, Hamas terrorists viciously massacred nearly 1,200 innocent men, women, and children, including over 40 Americans, kidnapped hundreds more, and used sexual violence as a weapon of brutality. Since that horrific day, we have worked to investigate and hold accountable those responsible, and we will not rest until all those who kidnapped or murdered Americans are brought to justice. Our thoughts continue to be with the families of all the victims of this barbaric terrorist attack.”

FBI Director Christopher A. Wray said: “From the moment Hamas launched its horrific attack on October 7, the FBI has been dedicated to identifying and charging those responsible for these heinous crimes. The FBI has and will continue to relentlessly investigate these attacks on civilians, including Americans.  Hamas is a Foreign Terrorist Organization with a long history of violence, and the group’s actions have resulted in increased terrorism threats in the U.S. and against American interests throughout the world. Countering terrorism remains our number one priority, and our work continues.”

Assistant Attorney General Matthew G. Olsen said: “The core mission of the National Security Division is to protect Americans from violent terrorists and extremist organizations like Hamas. The atrocities committed by Hamas in Israel on October 7 are intolerable, and the Justice Department will not rest in our pursuit to hold Hamas accountable for perpetrating its campaign of terror, death, and destruction.”

FBI Special Agent in Charge Sanjay Virmani said: “Hamas’s October 7 attack on Israel was a violent massacre in the long history of Hamas’s brutal terrorist reign. The FBI Washington Field Office is determined to continue its work to dismantle Hamas and hold its senior leaders responsible for their conspiracy to plan and perpetrate these heinous acts of terror, including the murder and kidnapping of American citizens.”

According to the allegations contained in the Complaint:[2] 

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (“FTO”) by the United States since 1997.  From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad.  Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. 

The defendants charged in the Complaint are all senior leaders of Hamas who have orchestrated, overseen, and supported Hamas’s decades-long campaign of terrorism, including the October 7 Hamas Massacres.  They control all aspects of the terrorist organization, including its political and military branches, known as the Politburo and the Izz al-Din al-Qassam Brigades (“al-Qassam Brigades”).

ISMAIL HANIYEH, was the chairman of Hamas’s Politburo from 2017 until his reported death on or about July 31, 2024.  Prior to 2017, HANIYEH was the deputy chairman of the Politburo and the leader of Hamas in the Gaza Strip.  HANIYEH was based principally in Turkey and Qatar.    

YAHYA SINWAR, a/k/a “Abu Ibrahim,” 61, is the leader of Hamas.  Previously, beginning in approximately 2017, he was the leader of Hamas in the Gaza Strip, and is one of the founders of the al-Qassam Brigades.  SINWAR is based principally in the Gaza Strip.

MOHAMMAD AL-MASRI, a/k/a “Mohammed Deif,” a/k/a “al Khalid al-Deif,” was the commander in chief of the al-Qassam Brigades, a position he held from in or about 2002 until his reported death on or about July 13, 2024.  AL-MASRI was based principally in the Gaza Strip. 

MARWAN ISSA, a/k/a “Abu Baraa,” was the deputy commander of the al-Qassam Brigades from approximately 2007 until his reported death on or about March 10, 2024.  ISSA was based principally in the Gaza Strip.    

KHALED MESHAAL, a/k/a “Abu al-Waleed,” 68, was the chairman of Hamas’s Politburo from approximately 2004 to 2017, and is now the head of Hamas’s diaspora office—effectively responsible for Hamas’s official presence outside of the Gaza Strip and the West Bank.  MESHAAL is based principally in Qatar.    

ALI BARAKA, 57, has been Hamas’s head of National Relations Abroad since approximately 2019, and was previously Hamas’s representative in Lebanon.  BARAKA is based principally in Lebanon. 

Hamas has pursued its objectives through innumerable acts of brutal terrorist violence, including launching thousands of rockets specifically targeting civilian populations; suicide bombings of restaurants, markets, public transportation systems, and other public spaces; and military-style attacks on towns and residential communities.  Hamas’s campaign of terrorism has killed and wounded citizens of Israel, the United States, and many other countries. 

On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date—the October 7 Hamas Massacres.  Hamas targeted civilian populations with a barrage of rockets, before waves of Hamas terrorists breached the border between the Gaza Strip and Israel, infiltrated Israel, and launched attacks on civilians, by land, sea, and air.  Hamas sent thousands of armed fighters into southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others.  Hamas terrorists attacked civilians, firing handguns, assault rifles, and handheld rocket launchers, in small residential communities in Kfar Aza, Be’eri, Nir Oz, Nahal Oz, Re’im, Holit, Zikim, Kerem Shalom, Sufa, and others; the Israeli town of Sderot; and a music festival held near Re’im; among other places.  Armed Hamas operatives attacked and shot civilians, including children, sometimes with machineguns and sometimes at point blank range, and weaponized sexual violence against Israeli women, including through rape and genital mutilation.  Hundreds of civilians, including Americans, and Israeli soldiers, were killed and wounded; other victims, including Americans, were kidnapped, taken hostage, and brought into Gaza by Hamas.  As of the date of the Complaint, over 40 American citizens were among those murdered, and at least eight American citizens were taken hostage or remain unaccounted for.[3]  Most recently, Hamas executed a U.S. citizen who was taken hostage by Hamas during the October 7 Hamas Massacres and remained in captivity until he was murdered.

Hamas raises money to fund its terrorist activities through a variety of methods, including by soliciting and receiving cryptocurrency payments, advertising the ostensible anonymity of such transactions.  Since 2019, Hamas’s military wing has used social media and other platforms to call for cryptocurrency contributions from supporters abroad, including in the United States, to Hamas-controlled virtual wallets, explicitly acknowledging that those payments would be used to fund Hamas’s campaign of violence.  Through these mechanisms, Hamas has received tens of millions of dollars in cryptocurrency payments to fund its activities. 

*                *                *

The Complaint unsealed today charges each of the defendants with: (1) conspiring to provide material support to a foreign terrorist organization resulting in death, which carries a maximum penalty of life in prison; (2) conspiring to provide material support for acts of terrorism resulting in death, which carries a maximum penalty of life in prison; (3) conspiring to murder U.S. nationals outside the United States, which carries a maximum penalty of life in prison; (4) conspiring to bomb a place of public use resulting in death, which carries a maximum penalty of death or life in prison; (5) conspiring to use weapons of mass destruction resulting in death, which carries a maximum penalty of death or life in prison; (6) conspiring to finance terrorism, which carries a maximum penalty of 20 years in prison; and (7) conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty 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 would be imposed by a judge.

Mr. Williams praised the outstanding investigative work of the FBI Washington Field Office, Counterterrorism Division, and the FBI’s New York Joint Terrorism Task Force.  Mr. Williams also thanked the FBI Legal Attaché Office in Tel Aviv, Israel, the FBI Victim Services Division, and the Department of Justice’s National Security Division, Counterterrorism Section for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit and Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, Sarah L. Kushner, Michael D. Lockard, Ben Arad, and Samuel L. Raymond are in charge of the prosecution, with assistance from Trial Attorneys Alicia Cook and C. Alexandria Bogle of the Counterterrorism Section.

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

[1] Since the filing of this Complaint, three of the defendants—Ismail Haniyeh, Mohammad Al-Masri, a/k/a “Mohammed Deif,” a/k/a “al Khalid al-Deif,” and Marwan Issa, a/k/a “Abu Baraa”—are reported to have been killed.

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

[3] Since the filing of this Complaint, two of the original ten individuals believed to have been taken hostage or who otherwise were unaccounted for have been confirmed to have been murdered.

Damian Williams, the United States Attorney for the Southern District of New York, announced that RESHMA MASSARONE, a former New York bank manager, was sentenced yesterday to 114 months in prison for plotting to hire a hitman to murder her own brother-in-law.  MASSARONE previously pled guilty to murder-for-hire before U.S. District Judge Cathy Seibel, who imposed the sentence.

U.S. Attorney Damian Williams said: “The defendant devised a chilling plan to have a member of her own family murdered for the low price of ten thousand dollars.  Her plan was unthinkably heartless.  For this depraved crime, Reshma Massarone will spend 114 months in federal prison.”

According to the Complaint and the Indictment filed against the defendant, other documents filed in federal court, and statements made in public court proceedings:

Between July 20, 2023, and August 16, 2023, the defendant plotted with an individual (“Individual-1”) to hire a hitman to murder her own brother-in-law (the “Victim”), in exchange for $10,000.  But Individual-1 was a member of a foreign police force, and he became an undercover law enforcement agent to develop evidence against MASSARONE that she was plotting to hire a hitman to have the Victim murdered. 

MASSARONE exchanged with Individual-1 dozens of messages on social media and participated in numerous phone calls with Individual-1, imploring Individual-1 to murder the Victim or hire someone who would.  For example, in Facebook Messenger communications, when Individual-1 told MASSARONE that the plan to murder her brother-in-law was set for the next day, MASSARONE responded that if Individual-1 “take[s] care of business,” then Individual-1 would get paid.  MASSARONE also told Individual-1 that she had other “jobs” for him, and swore on her kids’ lives that Individual-1 would get paid if he “[got] rid” of the Victim for her.  After that, MASSARONE told the Individual-1, “No more text.”

As part of MASSARONE’s plan, she wired $2,500 to Individual-1 to give to the hitman as a down payment for the Victim’s murder.  Video surveillance at a Western Union captured MASSARONE counting 25 $100 bills, for a total amount of $2,500.

After MASSARONE wired the money to Individual-1, MASSARONE continued to plan the Victim’s murder.  When Individual-1 told MASSARONE that the hitman’s plan was to shoot the Victim and that there was “no turning back,” MASSARONE replied, “Right.  No turning back.”

The Victim was never murdered.  As time passed and the Victim remained alive, MASSARONE grew impatient with Individual-1. MASSARONE urged Individual-1 to murder the Victim, suggesting that “rat poison can do a great job.”  MASSARONE told Individual-1, “You is all talk and no action,” and “Come on do the thing and I will take care of you.”  MASSARONE threatened to find someone else to murder the Victim, stating, “Either way, if I find somebody to do the job you’re going to get blame, so cut the bullshit and let’s get it done.”

*                *                *

In addition to the prison sentence, MASSARONE, 40, of Pine Bush, New York, was sentenced to three years of supervised release.

Mr. Williams praised the outstanding work of the Drug Enforcement Administration, New York City Police Department, New York State Police, Homeland Security Investigations, and Internal Revenue Service.

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

Damian Williams, the United States Attorney for the Southern District of New York; Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing of an Indictment charging NICOLE TORRES, an elected district leader in the Bronx and an employee of the New York City Board of Elections (the “NYC-BOE”), with illegally demanding payments from Bronx residents to herself and a local organization (the “Bronx Organization”) in exchange for selecting those individuals as poll workers.  TORRES is also charged with falsifying documents to make it appear that certain individuals had worked as poll workers on particular dates, when, in truth and fact, they had not.  TORRES and other members of the scheme then allegedly split the fraudulently obtained paychecks issued to the no‑show poll workers.  TORRES was arrested yesterday morning and presented yesterday afternoon before U.S. Magistrate Judge Stewart D. Aaron.  The case has been assigned to U.S. District Judge Mary Kay Vyskocil.

U.S. Attorney Damian Williams said: “As alleged, Nicole Torres, an elected official and City employee, brazenly abused her power and lined her own pockets for over five years by demanding that poll workers pay her bribes in order to work as a poll worker and by falsifying records to make it look like certain individuals worked as poll workers during an election even though they never did.   This Office is committed to holding elected officials and public employees accountable if they abuse their positions of trust and break the law.”

Acting Assistant Director in Charge Christie M. Curtis said: “For at least five years, District Leader Nicole Torres allegedly abused her position within the Board of Elections by charging Bronx residents a fee to work as poll workers and misrepresenting poll workers’ presence on assigned shifts to fraudulently collect their salaries.  Elected officials have a duty to act within the community’s best interests, not steal thousands of dollars from this city’s government and its citizens.  The FBI will never tolerate corrupt individuals who selfishly manipulate their authority at the cost of those they are expected to serve.”

DOI Commissioner Jocelyn E. Strauber said: “As charged, this City Board of Elections employee and elected district leader abused her authority for personal profit.  She allegedly demanded payments from prospective poll workers whom she was responsible for selecting, and pocketed salaries that were paid to no-show poll workers based on documents that she falsified, according to the indictment.  When a City employee uses their trusted position to illegally enrich themselves, as alleged here, they undermine public trust and confidence in government and unfairly tarnish the reputations of those who do their jobs with integrity each and every day.   I thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their partnership on this important investigation.”

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

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

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

Second, from at least in or around 2018, up to and including in or about August 2024, TORRES agreed to falsify the Forms Booklet—which is a NYC‑BOE record in which poll workers record their attendance at a particular poll site—to make it appear that certain individuals (the “No‑Show Poll Workers”) worked as poll workers during early voting and election day when, in truth and fact and as TORRES well knew, those individuals did not work on those dates.  TORRES often worked with coordinators who oversaw the Forms Booklets at specific poll sites.  These coordinators signed in No-Show Poll Workers in the Forms Booklets, frequently at TORRES’s direction.  TORRES and her co‑conspirators then received the salaries for the No‑Show Poll Workers—sometimes through the mail—and split the fraudulently obtained salaries among themselves.  While working at the NYC‑BOE, at relevant times, TORRES was responsible for ensuring that poll workers, including the No-Show Poll Workers, were paid.  In furtherance of the scheme, TORRES communicated with her co-conspirators in person, on phone calls, and through text messages.  Through these communications, TORRES and her co-conspirators, among other things, shared the personal identifying information of the No-Show Poll Workers, discussed which co-conspirator should falsely sign the No-Show Poll Workers’ names in the Forms Booklets, and discussed how to split the fraudulently obtained salaries of the No-Show Poll Workers.  Based on her participation in the scheme, TORRES personally obtained at least approximately $36,000 in fraud proceeds, and her co-conspirators personally obtained money as well.   

From in or about March 2021 through in or about April 2021, TORRES and a co‑conspirator (“CC-1”) used, transferred, and possessed the name of a No‑Show Poll Worker when they listed that No‑Show Poll Worker as having worked as a poll worker in March 2021 even though that No‑Show Poll Worker did not work in that month.  Torres and CC-1 then split the purported salary that the NYC‑BOE issued to that No‑Show Poll Worker.

*                *                *

TORRES, 43, of Bronx, New York, is charged with one count of conspiracy to commit extortion under color of official right, one count of extortion under color of official right, one count of conspiracy to commit honest services wire fraud, one count of honest services wire fraud, one count of conspiracy to commit mail fraud, one count of mail fraud, and one count of aggravated identity theft.  The first six counts each carry a maximum sentence of 20 years in prison, and the seventh count carries a mandatory term of imprisonment of two years.

Mr. Williams praised the outstanding investigative work of FBI and DOI.

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

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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of GLENN GRIFFIN, the owner, president, and principal of Griffin’s Landscaping Corporation, and ROBERT DYCKMAN, the former Assistant General Foreman for the Town of Cortlandt, in a scheme in which DYCKMAN gave GRIFFIN unauthorized access to the Town of Cortlandt’s Arlo Lane facility to dump loads of unauthorized materials.  After dumping these loads, GRIFFIN received payments from the Town for hauling away the very materials that GRIFFIN had illegally dumped.  GRIFFIN also pled guilty to a separate bid-rigging scheme.  GRIFFIN and DYCKMAN pled guilty today before U.S. Magistrate Judge Victoria Reznik.

U.S. Attorney Damian Williams said:  “Robert Dyckman, a former Town of Cortlandt employee, used his important public position to enrich himself and damage public land and fragile wetlands by allowing Glenn Griffin, a business owner and president, to illegally dump harmful, unauthorized materials on public property.  Brazenly, Griffin then billed and received payments from the Town for removing and hauling away the very materials that he had illegally dumped.  Today, thanks to our law enforcement partners and the dedicated prosecutors of this Office, Griffin and Dyckman have admitted to their crimes and must pay $2.4 million in restitution to their victims. Today’s pleas are a reminder that this Office will bring to justice any public official or business leader who defrauds the public and causes damage to our environment.” 

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

Illegal Dumping Scheme

From 2018 until February 2020, GRIFFIN and DYCKMAN engaged in an unauthorized dumping scheme.  DYCKMAN gave GRIFFIN and his employees unauthorized access to Arlo Lane, a Cortlandt facility, to dump hundreds of large truckloads of unauthorized materials such as thick concrete, cement with rebar, tiles, bricks, large rocks, and soil.  After the illegal dumping, GRIFFIN billed and received payments from the Town of Cortlandt for removing and hauling away the very materials that GRIFFIN had illegally dumped at Arlo Lane with DYCKMAN’s assistance.

            DYCKMAN generally allowed GRIFFIN and his employees access to Arlo Lane on Saturdays or after working hours.  To carry out the scheme, DYCKMAN would attempt to clear senior Town of Cortlandt management away from Arlo Lane around the time of the unauthorized dumping.  When DYCKMAN arranged for a subordinate Town of Cortlandt worker to work overtime when GRIFFIN was dumping unauthorized loads, DYCKMAN would falsely record the worker’s overtime as having occurred during the week in order to conceal the scheme.

In exchange for access to Arlo Lane, GRIFFIN paid DYCKMAN cash bribes.

GRIFFIN and DYCKMAN have agreed to pay the Town of Cortlandt and the Westchester Land Trust, a 501(c)(3) tax-exempt organization which owns damaged wetlands abutting the Town of Cortlandt’s Arlo Lane property, a total of $2.4 million to remediate and restore their property following GRIFFIN and DYCKMAN’s criminal conduct.

Bid-Rigging Scheme

Between 2015 and 2018, GRIFFIN also engaged in a bid-rigging scheme.  GRIFFIN defrauded the village of Croton-on-Hudson for work on its schools, and the hamlet of Verplanck for work at its fire department.  GRIFFIN made sham, non-competitive, and inflated bids on behalf of entities that GRIFFIN did not work for or have authorization to submit bids on behalf of, so that GRIFFIN would be the low bidder in a pool of purportedly competitive bids and receive public money for work on the projects.  Based on these sham, non-competitive, and inflated bids, GRIFFIN was awarded contracts with a combined value exceeding $133,000. 

*                *                *

GRIFFIN, 55, of Cortlandt Manor, New York pled guilty to one count of conspiracy to commit bribery and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 5 years in prison.  DYCKMAN, 52, of Verplanck, New York, pled guilty to one count of conspiracy to commit mail fraud, which carries a maximum sentence of 5 years in prison.  GRIFFIN and DYCKMAN are both scheduled to be sentenced by U.S. District Judge Vincent L. Briccetti on December 5, 2024.  

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. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Westchester County Police Department in this investigation.  Mr. Williams also thanked the Westchester County District Attorney’s Office and the New York City Department of Investigation for their assistance in the investigation.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys David R. Felton and James McMahon are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States filed a civil lawsuit against LEGACY BUILDERS/DEVELOPERS CORP. (“LEGACY”) alleging violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”).  The U.S. simultaneously entered into a Consent Decree resolving that lawsuit.  The Consent Decree includes a $168,000 civil penalty and requires LEGACY to take steps to mitigate potential harms caused by its conduct.

U.S. Attorney Damian Williams said: “Legacy Builders failed to follow lead-safe work regulations designed to protect building occupants—including children—and workers from toxic lead paint dust generated during apartment renovations.  This lawsuit is another example of our commitment to ensure that renovation firms are held responsible for violating these important safety rules.”

EPA Regional Administrator Lisa F. Garcia said: “Legacy Builders/Developers Corp. is being held accountable for not complying with rules that are designed to protect residents as well as workers and are a key part of protecting public health.  The company’s activities put tenants, the public, and its employees at risk of exposure to lead dust hazards. Exposure to lead-based paint can have serious health impacts and remains a common source of lead poisoning in children. EPA will continue to be vigilant and ensure we reduce all risk of lead exposure.”

TSCA and the RRP Rule impose safety requirements to minimize the risk that young children, tenants, and renovation workers are exposed to toxic lead paint dust during renovations of residential buildings.  Exposure to lead dust is the most common cause of lead poisoning, which can lead to severe, irreversible health problems, particularly in children.  Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems.

As alleged in the U.S. Complaint filed in the district court:

LEGACY performed renovation work at hundreds of residential apartments across five building sites in Manhattan between 2016 and 2020.  In September 2017, EPA inspected a LEGACY worksite and found that LEGACY had failed to contain lead dust.  This was consistent with inspections in April and August 2017 of the same LEGACY worksite by the New York City Department of Health and Mental Hygiene, where inspectors observed dust and debris in hallways, common areas, and the vacant apartments being renovated, and collected dust wipe samples containing lead in excess of federal standards.  Following further investigation, EPA determined that LEGACY lacked required RRP Rule certifications and, at multiple worksites, failed to train its workers on lead-safe work practices, failed to follow lead-safe work practices, failed to inform building owners and occupants of the risks of lead poisoning during that renovation, and failed to maintain records necessary to demonstrate compliance with lead-safe work practice rules.  When LEGACY was informed of these issues, it provided the EPA with inaccurate information about its RRP Rule compliance.

In the Consent Decree, LEGACY admits, acknowledges, and accepts responsibility for the following conduct:

• Between 2016 and 2020, LEGACY performed renovation work at more than one hundred residential apartments at five different building sites in Manhattan.  LEGACY failed to comply with requirements of the RRP Rule on numerous occasions at these renovation projects.  Among other things:
  • LEGACY failed to provide on-the-job lead safety training to workers, in violation of the RRP rule.
  • LEGACY failed to adequately contain construction dust, including dust containing lead in excess of levels permitted under the RRP Rule, and failed to conduct the required post-renovation cleaning verification, in violation of the RRP rule.
  • LEGACY failed to post signs clearly defining its work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area, in violation of the RRP Rule.
  • LEGACY failed to provide a lead-hazard information pamphlet to the owner or occupants of the building before commencing work, in violation of the RRP Rule.
  • LEGACY failed to maintain documentation showing that it complied with lead-safe work practices, in violation of the RRP Rule.
• Additionally, between June 2016 and August 2017, LEGACY performed renovation work covered by the RRP Rule at two of these worksites without possessing the firm certification required by the RRP Rule for renovation firms performing such work and without assigning a certified renovator to oversee those projects.

*                *                *

Pursuant to the Consent Decree, LEGACY will pay a penalty of $168,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable.  The Consent Decree requires LEGACY to comply with safe work practices and other RRP Rule requirements in the future.  Additionally, to mitigate the effects of the violations, among other things, LEGACY will conduct education sessions for residents of the five buildings on the hazards of lead-based paint and methods of minimizing potential exposures, and LEGACY will offer to conduct training for maintenance staff at these buildings on lead-hazard reduction and common issues pertaining to the use of lead-safe work practices in day-to-day operations.   Failure to comply with the Consent Decree will give rise to significant additional penalties.

To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.

Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work on this matter.

This case is being handled by the Environmental Protection Unit of the Office’s Civil Division.  Assistant U.S. Attorneys Ilan Stein and Samuel Dolinger are in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment today charging MICHELLE BOND with conspiring to cause and causing unlawful campaign contributions in connection with her unsuccessful run for Congress in 2022.  BOND will be presented today before U.S. Magistrate Judge Ona T. Wang.  

U.S. Attorney Damian Williams said: “As alleged, Michelle Bond and her co-conspirator romantic partner attempted to fund her campaign for the U.S. House of Representatives by illegally using hundreds of thousands of dollars from corporate coffers, among other sources, and then lying to Congress and others to cover it all up.  Misconduct by those campaigning for public office undermines public trust in American elections and in representative government more broadly.  This Office is committed to holding elected officials and candidates accountable if they break the law.”

FBI Acting Assistant Director Christie M. Curtis said: “Michelle Bond, a former congressional candidate, allegedly financed her campaign with illicitly obtained funds then made calculated efforts to conceal her misconduct, including lying to Congress about the deposits’ origin.  Attempting to start a hopeful career in our government using unlawful transactions and lies erodes the integrity and credibility of our legislative system.  Investigating all forms of corruption remains a top priority of the FBI, as those seeking to hold governing positions are expected to comport themselves honestly and transparently to preserve public confidence.”

As alleged in the Indictment:[1]

In 2022, BOND—then a high-level executive at a digital assets trade group (the “Trade Group”)—ran for a seat in the U.S. House of Representatives.  BOND sought to represent New York’s first congressional district, which comprises the eastern portion of Long Island. 

Shortly after launching her congressional campaign in May 2022, BOND’s romantic partner (“CC-1”)—then a high-level executive at a Bahamas-based subsidiary of a now-defunct cryptocurrency exchange (the “Exchange”)—orchestrated a sham consulting agreement between BOND and the Exchange, pursuant to which BOND was paid $400,000.  BOND then used that money to illegally finance her campaign.  Further, between June and August 2022, CC-1 wired hundreds of thousands of dollars to BOND’s personal bank account, which BOND then used to illegally fund her campaign.  CC-1 and BOND discussed how CC-1 would pay the expenses for BOND’s campaign, and CC-1 was aware that BOND was using CC-1’s money to make large loans and contributions to her campaign.

BOND and CC-1’s conduct violated federal campaign finance laws prohibiting corporate contributions, excessive contributions by an individual, and conduit (or straw) contributions.  BOND attempted to conceal her and CC-1’s conduct by, among other things, making false statements to a congressional committee and the Federal Election Commission, and lying to her employer at that time.  For example, in a financial disclosure form filed with the House Ethics Committee, BOND described the $400,000 Exchange Payment as consulting income.  However, in talking points BOND prepared for a meeting with the board of her Trade Group, BOND acknowledged that she did not work for the Exchange and that the Exchange gave the money for her campaign.

*                *                *

BOND, 45, of Potomac, Maryland, is charged with one count of conspiracy to cause unlawful campaign contributions; one count of causing and accepting excessive campaign contributions; one count of causing and receiving an unlawful corporate contribution; and one count of causing and receiving a conduit contribution.  Each of the crimes charged carries a maximum sentence of five years in prison. 

The statutory maximum 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. Williams praised the outstanding investigative work of the FBI. 

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Stephanie Simon and Sheb Swett 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 constitutes only allegations, and every fact described herein should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, 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 charging YUANJUN TANG, a naturalized citizen of the U.S. and resident of Flushing, Queens, with acting and conspiring to act in the U.S. as an unregistered agent of the People’s Republic of China (“PRC”) and making materially false statements to the FBI.  TANG was arrested today in Flushing, Queens, and was presented this afternoon before U.S. Magistrate Judge Ona T. Wang.

U.S. Attorney Damian Williams said: “As alleged, for years, Yuanjun Tang used his position as a leader among pro-democracy activists in the U.S. to collect information for the Chinese government and to report on people critical of the PRC and events conducted in support of democracy.  Today’s charges reflect this Office’s commitment to combating the repressive and illegal use of foreign agents in the U.S. to sow fear and distrust within our communities and subvert our country’s most basic freedoms.”

Acting Assistant Director in Charge Christie Curtis said: “Yuanjun Tang conspired with the PRC's Ministry of State Security, operating covertly to further the interests of a foreign power at the expense of our nation's security.  This behavior is not just illegal; it is harmful to the sovereignty of the United States, and we will not stand for it.  Let this serve as a clear warning: the FBI will hunt down and hold accountable those who seek to betray our country.”

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

TANG is a former PRC citizen who was imprisoned in the PRC for his activities as a dissident opposing the one-party authoritarian political system controlled by the Chinese Communist Party (“CCP”), the PRC’s sole ruling party.  In or about 2002, TANG defected to Taiwan; he was subsequently granted political asylum in the U.S. and has since resided in New York City, where he has regularly participated in events with fellow PRC dissidents and leads a nonprofit dedicated to promoting democracy in China.

Between at least in or about 2018 and in or about June 2023, TANG acted in the U.S. as an agent of the PRC by completing tasks at the direction of the PRC’s Ministry of State Security (“MSS”), which is the PRC’s principal civilian intelligence agency.  The MSS is responsible for, among other things, the PRC’s foreign intelligence, counterintelligence, espionage, and political security functions.

Specifically, through a particular email account, encrypted chats, text messages, and audio and video calls, TANG regularly received instructions from and reported to an MSS intelligence officer regarding individuals and groups viewed by the PRC as potentially adverse to the PRC’s interests, including prominent U.S.-based Chinese democracy activists and dissidents.  He also traveled at least three times for face-to-face meetings with MSS intelligence officers and helped the MSS infiltrate a group chat on an encrypted messaging application used by numerous PRC dissidents and pro-democracy activists to communicate about pro-democracy issues and express criticism of the PRC government.  Law enforcement recovered instructions TANG received from the MSS and photographs, videos, and documents that he collected or created for transmission to the MSS from numerous electronic devices and accounts belonging to TANG.

TANG also made materially false statements to the FBI. He falsely claimed that he was no longer able to access an email account through which he had communicated with his MSS handler through draft emails.

*                *                *

TANG, 67, of Flushing, Queens, is charged with one count of conspiring to act as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of five years in prison; one count of acting as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of 10 years in prison; and one count of false statements, which carries a maximum sentence of five 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. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Trafficking Unit.  Assistant U.S. Attorney Jane Yumi Chong is in charge of the prosecution, with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.

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

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

Yuanjun Tang, 67, a naturalized citizen of the United States and resident of Queens, New York, was charged by criminal complaint with acting and conspiring to act in the United States as an unregistered agent of the People’s Republic of China (PRC) and making materially false statements to the FBI. Tang was arrested today in Flushing, Queens, and will be presented this afternoon.

According to court documents, Tang is a former PRC citizen who was imprisoned in the PRC for his activities as a dissident opposing the one-party authoritarian political system controlled by the Chinese Communist Party (CCP), the PRC’s sole ruling party. In or about 2002, Tang defected to Taiwan; he was subsequently granted political asylum in the United States and has since resided in New York City, where he has regularly participated in events with fellow PRC dissidents and leads a nonprofit dedicated to promoting democracy in China.

Between at least in or about 2018 and in or about June 2023, Tang acted in the United States as an agent of the PRC by completing tasks at the direction of the PRC’s Ministry of State Security (MSS), which is the PRC’s principal civilian intelligence agency. The MSS is responsible for, among other things, the PRC’s foreign intelligence, counterintelligence, espionage and political security functions.

Specifically, through a particular email account, encrypted chats, text messages and audio and video calls, Tang regularly received instructions from and reported to an MSS intelligence officer regarding individuals and groups viewed by the PRC as potentially adverse to the PRC’s interests, including prominent U.S.-based Chinese democracy activists and dissidents. He also traveled at least three times for face-to-face meetings with MSS intelligence officers and helped the MSS infiltrate a group chat on an encrypted messaging application used by numerous PRC dissidents and pro-democracy activists to communicate about pro-democracy issues and express criticism of the PRC government. Law enforcement recovered instructions Tang received from the MSS and photographs, videos and documents that he collected or created for transmission to the MSS from numerous electronic devices and accounts belonging to Tang.

Tang also made materially false statements to the FBI. He falsely claimed that he was no longer able to access an email account through which he had communicated with his MSS handler through draft emails.

Tang is charged with one count of conspiring to act as an agent of a foreign government without notifying the Attorney General, which carries a maximum penalty of five years in prison; one count of acting as an agent of a foreign government without notifying the Attorney General, which carries a maximum penalty of 10 years in prison; and one count of making false statements, which carries a maximum penalty of five years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.

The FBI is investigating the case.

Assistant U.S. Attorney Jane Yumi Chong for the Southern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ANTHONY RICCARDI, an owner and manager of the Connecticut insurance firm Employee Benefit Solutions LLC (“EBS”), was sentenced to 10 years in prison for conspiring to commit wire fraud and bank fraud.  Between 2015 and 2019, RICCARDI and his co-conspirators used EBS as part of a widespread, $40 million scheme to misappropriate and steal client healthcare funds and defraud multiple lenders.  RICCARDI previously pled guilty on February 21, 2023, before U.S. District Judge Philip M. Halpern, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “For years, Anthony Riccardi schemed to abuse his position of trust by stealing millions in fiduciary money that was meant to pay for important employee healthcare expenses.  He used this stolen money to fund a lavish lifestyle that included luxury cars and a sprawling mansion.  To keep the scheme going, Riccardi also defrauded lenders out of millions.  Today’s sentence underscores that no matter how complex the scheme, those who use their positions defraud others and enrich themselves will answer for their crimes.

According to the Indictment, the Complaint, other court filings, and statements made during court proceedings:

From at least 2015 and continuing through 2019, RICCARDI was the 50% co-owner and Executive Vice President of EBS, which offered a variety of healthcare insurance-related services to clients.  EBS, among other things, provided third party healthcare claims administration (“TPA”) services to clients that elected to “self-fund” (or self-insure) their employee healthcare plans.  As a TPA, EBS would purportedly administer, process, and pay healthcare claims for its clients’ employees in exchange for an administrative fee.

Between at least 2015 and continuing through 2019, EBS represented an automobile dealership chain (“Company-1”) headquartered in Westchester County, New York.  EBS served as a TPA for Company-1’s self-funded employee healthcare program and purported to process and pay claims to medical providers that treated Company-1’s employees.  To do this, EBS generated bimonthly “check register” invoices for Company-1 that listed all employee healthcare expenses from healthcare providers during that two-week period.  EBS also administered a bank account on Company-1’s behalf for the express purpose of paying Company-1 healthcare claims.  Company-1 would fund each check register by paying the invoiced amount, expecting that EBS would promptly pay the claims to the healthcare providers.  During this period, Company-1 transferred approximately $26 million to EBS for the payment of healthcare claims.

In reality, a significant number of purported checks listed on the EBS “check register” invoices were never actually deposited by the healthcare providers.  Instead, approximately $17.87 million in Company-1 healthcare payments were misappropriated with the overwhelming majority simply transferred by EBS into its own operating account, where they were used for non-healthcare expenses by the managers and owners of EBS.  For example, a review of bank records indicates that Company-1 healthcare funds were used by RICCARDI and his co-conspirators to pay their home mortgage expenses as well as a personal credit card account with expenses relating to boating, luxury cars, and golf.

EBS, through RICCARDI and his co-conspirators, made decisions on what few Company-1 healthcare claims they did pay based on which healthcare providers were likely to complain if they did not receive payment or if the claims were connected to Company-1 executives.

The “check registers” sent to Company-1 also contained millions of dollars in fraudulent or inflated healthcare claims that were eventually paid by Company-1.  EBS routinely inflated the Company-1 check registers at the direction of RICCARDI and his co-conspirators.  Such efforts were typically accomplished through RICCARDI and his co-conspirators instructing others to manually create fraudulent entries in the EBS claims processing software, including fake claims under the name of a business controlled by RICCARDI.  RICCARDI and his co-conspirators also took steps to conceal their fraud from Company-1 by creating and sending manipulated and fabricated bank statements and checks to create the appearance that healthcare claims were being paid by EBS, when in reality, they were not.   

By mid-2017, as EBS buckled under mounting outstanding fiduciary obligations, RICCARDI and his co-conspirators began an elaborate effort to conceal and perpetuate the ongoing fraud on Company-1 by applying for multiple fraudulent bank loans and merchant cash advances designed in part to pay various fiduciary obligations that EBS owed to Company-1.  RICCARDI and his co-conspirators fraudulently applied for and received millions of dollars in loans under the auspices of financing the purchase of upgraded billing software for EBS, which included RICCARDI and his co-conspirators submitting fabricated invoices from a fake company that supposedly sold the billing software.

*                *                *

In addition to the prison term, RICCARDI, 46, of New Canaan, Connecticut, was sentenced to three years of supervised release.  He was additionally ordered to pay $14,870,653.36 in restitution and forfeit $2,000,000.00.

RICCARDI’s co-defendant, Patricia Riccardi, was previously sentenced to 30 months in prison following her guilty plea to one count of conspiring to commit wire fraud and bank fraud before Judge Halpern.

RICCARDI’s co-conspirator, Erin Verespy, was previously sentenced to 66 months in prison following her guilty plea to one count of conspiring to commit wire fraud and bank fraud before U.S. District Judge Cathy Seibel.

Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office.  Mr. Williams also thanked the U.S. Department of Labor, Employee Benefits Security Administration; the U.S. Department of Labor, Office of Inspector General; and the U.S. Secret Service, which are assisting in the investigation, as well as the U.S. Attorney’s Office for the District of Connecticut.

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

Damian Williams, the 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 ORANGE MEDICAL CARE, P.C. (“ORANGE MEDICAL”) and its owners, ASHIKKUMAR A. RAVAL and MANISH A. RAVAL (together, the “RAVALS” and with ORANGE MEDICAL, the “Defendants”).

The RAVALS are physicians who own and operate ORANGE MEDICAL, a family medicine practice that provides primary care services to patients in Newburgh, New York.  The settlement resolves claims that ORANGE MEDICAL and the RAVALS fraudulently billed Medicare and Medicaid by submitting claims for primary care services that were not rendered or supervised by the physician identified in the claim for payment and had, in fact, been rendered by non-credentialed providers.

Under the settlement approved Saturday, August 17, 2024, by U.S. District Judge Paul Gardephe, ORANGE MEDICAL and the RAVALS will pay $268,800 to the U.S. and have admitted and accepted responsibility for conduct alleged in the Complaint as further described below.  ORANGE MEDICAL and the RAVALS have also agreed to pay $331,200 to the State of New York to resolve the State of New York’s claims, for a total recovery of $600,000.  The settlement amount is based on the Office’s and the State of New York’s assessment of ORANGE MEDICAL’s and the RAVALS’ ability to pay based on the financial information they provided.  The parties have also executed a Consent Judgment in the amount of $1,646,835, which may be enforced if the Defendants do not make the payments required under the settlement agreement.

U.S. Attorney Damian Williams said: “Orange Medical and the Ravals submitted false claims to Medicare and Medicaid, failing to accurately identify who was involved in their patients’ treatment.  This Office is committed to ensuring that individuals and entities billing federal health care programs do so in an honest manner.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “As a part of this settlement, the defendants acknowledged that Orange Medical obtained funds from the Medicare and Medicaid programs for claims that did not comply with those programs’ billing rules.  Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

As alleged in the Complaint filed in Manhattan federal court: 

From November 2006 through December 2022, ORANGE MEDICAL and the RAVALS submitted claims to Medicare and Medicaid that listed one of the RAVALS as the rendering provider even though the services had been rendered by non-credentialed providers, without the direct supervision of the RAVALS.  On many such occasions, the RAVALS were traveling outside of the U.S. at the time the patient received the treatment.

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

• ORANGE MEDICAL and the RAVALS understood that they were prohibited by relevant federal healthcare program rules from submitting claims for reimbursement to Medicaid in the State of New York for primary care services if the physician listed as the rendering provider on the claim for reimbursement had not actually rendered the services and, with respect to Medicare, if the services were not, at minimum, rendered “incident to” medical services actually provided by the physician listed on the claim. ORANGE MEDICAL and the RAVALS further understood that, in order to receive reimbursement from Medicaid, a healthcare provider must be enrolled as a provider in the Medicare or Medicaid program at the time the services are rendered.

• Nonetheless, ORANGE MEDICAL and the RAVALS frequently submitted claims to Medicaid and Medicare for primary care services that listed Manish Raval or Ashikkumar Raval as the rendering provider, even though they had not rendered the services for which reimbursement had been sought.  In fact, the services had been performed by providers who had not enrolled in the Medicare or Medicaid programs.  Further, the providers that had rendered the services were often not physicians, but instead nurse practitioners or physician assistants.  On many such occasions, the RAVALS had no personal involvement or supervision in the treatment of the patient and were traveling outside of the U.S. at the time that the services were furnished.
• ORANGE MEDICAL and the RAVALS also altered patient records to reflect falsely that one of the RAVALS had seen a patient when, in fact, the patient had been seen by a different provider. 

• As a result of the conduct described above, ORANGE MEDICAL received reimbursements from Medicare and Medicaid for primary care claims that did not comply with those programs’ billing rules.

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

*                *                *

Mr. Williams praised the outstanding investigative work of HHS-OIG, and he thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation and 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.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that, on Saturday, August 17, 2024, PAWEL BIELECKI, a/k/a “Paul Bielecki,” a/k/a “Paul HRH Saxe-Coburg-Gotha,” a/k/a “Dr. Phaakon Sonderburg-Glucksburg,” a/k/a “Father Paul,” a/k/a “Father Kowal,” was arrested on charges of wire fraud and mail fraud.  BIELECKI will be presented in White Plains federal court later today before U.S. Magistrate Judge Andrew E. Krause.

U.S. Attorney Damian Williams said: “As alleged, Pawel Bielecki exploited his position as a friar to gain the trust of victims across the country and steal hundreds of thousands of dollars from them.  Bielecki is now facing federal charges for allegedly illegally profiteering on the trust his victims placed in him.”  

As alleged in the Complaint:[1] 

BIELECKI is a friar in the Capuchin Order, a Catholic order of priests and brothers.  BIELECKI is a brother in a Province based in White Plains (the “Province”), which operates friaries in, among other places, New York City.  To become a Capuchin friar, BIELECKI took a vow of poverty that requires him to renounce and not to hold any property or bank accounts in his name for his personal benefit.  The Province provides friars, including BIELECKI, with a monthly stipend of approximately $250 for personal expenses, as well as a credit card, paid for by the Province, for friary-related expenses.[2]

BIELECKI has engaged in an ongoing fraudulent scheme related to fake medical clinics he claims to operate in Lebanon.  As described further in the Complaint, through appearances and advertisements on radio programs and online podcasts, as well as various other media, including campaigns on various crowdfunding websites, BIELECKI has fraudulently obtained donations from victims by claiming, among other misrepresentations, to run medical clinics in Beirut, Lebanon, when in fact BIELECKI was keeping victims’ donations for his personal use.

For example, from at least in or about June 2015 through at least in or about December 2023, BIELECKI repeatedly appeared as a guest or through advertisements on a particular local New York radio show (“Radio Program‑1”).  During these appearances and advertisements, BIELECKI repeatedly represented that he was a Catholic priest and physician living in Lebanon and running medical clinics there, with the goal of assisting Christians living in the Middle East.  BIELECKI also made similar appearances on other radio programs and electronic media.  For example, on or about April 1, 2023, BIELECKI appeared on a second radio show (“Radio Program-2”) to tell his “story” and to solicit donations for his purported medical clinics.  Radio Program-2 continued to solicit donations on behalf of BIELECKI on numerous occasions from at least in or around June 2023 through at least in or around August 2024.

In these radio and media appearances, BIELECKI falsely represented, in sum and substance, among other things, the following:

• BIELECKI is a physician, vascular surgeon, cardiac surgeon, and/or general surgeon, and he has also earned multiple Ph.D. degrees;
• BIELECKI runs two medical clinics in Lebanon and is raising money for medicine, medical equipment, baby incubators, food, and an ambulance for his clinics in Lebanon;
• And BIELECKI, at the time of recording certain shows, was physically present in Lebanon, and he was badly injured and his clinics badly damaged by a widely reported August 2020 explosion in Beirut, Lebanon.

These representations were false.  In fact, BIELECKI is not a physician or surgeon of any kind, he has not also earned multiple Ph.D. degrees, and he does not operate any medical clinics in Lebanon.  In fact, travel records show that BIELECKI was in the U.S. continuously from in or around December 2019 through in or around April 2022, and on specific dates when he claimed during media appearances to be in Lebanon working on behalf of his medical clinics, BIELECKI was actually present in New York.  Indeed, on and around the date of the explosion in Beirut in which BIELECKI told victims he was injured, BIELECKI made several purchases at coffee shops, restaurants, and other businesses in New York, New York.

BIELECKI has caused victims of his fraud scheme to send him donations through various means.  Between approximately 2016 and 2019, BIELECKI directed victims from New York, New Jersey, Connecticut, Georgia, and Florida, among other locations, to send checks to the Province with “Fr. Paul Bielecki’s Mission” or a similar endorsement in the memo line.  From at least April 2021, BIELECKI directed victims to send donations by mail to “St. Francis in Beirut Inc.”—a non-profit entity established in or about March 2021—at the address of a particular Capuchin Order friary in New York, New York, where BIELECKI resides.  At various times during the fraudulent scheme, BIELECKI also obtained donations through crowdfunding websites and directly provided his bank account and Zell payment information to victims via email and other means of communication.

Despite his vow of poverty, BIELECKI maintained multiple credit or debit card accounts and multiple bank accounts.  Dozens of victims have cumulatively provided BIELECKI with at least hundreds of thousands of dollars in donations as a result of BIELECKI’s fraudulent misrepresentations.  Between approximately December 2017 and approximately February 2024, BIELECKI withdrew almost $50,000 in cash from his bank accounts; transferred more than $600,000 to two credit card companies to pay for personal expenses, including spending up to $334.40 per month for a membership at a luxury gym chain, and paying for multiple trips to the Hamptons and numerous meals at high-end restaurants; spent thousands of dollars on an aesthetic plastic surgery procedure at a liposuction clinic; and paid for numerous other personal expenses through debit card payments and other means.

There may be more victims of this alleged conduct.  If you have information to report, 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.  

*                *                *

BIELECKI, 48, of New York, New York, is charged with one count of wire fraud and one count of mail fraud, each of which carries a maximum potential 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 the sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and of the Internal Revenue Service – Criminal Division. Mr. Williams 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.

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

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

[2] The Province conducted an internal investigation of BIELECKI’s fraudulent scheme, referred the matter to law enforcement, and has since provided assistance in the law enforcement’s investigation.

Damian Williams, the United States Attorney for the Southern District of New York, announced the entry today of a Consent Decree with the RUTHERFORD TENANTS CORP. (“RUTHERFORD”) resolving the United States’ lawsuit against RUTHERFORD and its former Board President James Ramadei under the Fair Housing Act (“FHA”).  The lawsuit alleged that RUTHERFORD discriminated against a shareholder (the “Complainant”) in its co-operative building by refusing to permit her to live with emotional support animals to accommodate her disability and by retaliating against the Complainant when she filed a Complaint with the U.S. Department of Housing and Urban Development (“HUD”).  U.S. District Judge Jennifer H. Rearden approved the Consent Decree on August 16, 2024.

U.S. Attorney Damian Williams said: “This is the largest recovery the Department of Justice has ever obtained for a person with disabilities whose housing provider denied them their right to have an assistance animal.  This outcome should prompt all housing providers to consider carefully whether their policies and procedures comply with federal law.  We greatly appreciate our partners at HUD who provided invaluable assistance in the investigation and resolution of this matter.”  

According to documents filed by the Government in federal court:

The Rutherford is a residential cooperative apartment building that contains 175 units and is located at 230 East 15th Street in New York, New York.  Defendant RUTHERFORD is the shareholder cooperative association.  The Complainant moved into the building in 1999.  At the time, RUTHERFORD did not have a reasonable accommodation policy of any kind, whether for people with disabilities generally or for assistance animals specifically.

The Complainant maintained parrots in her home as emotional support animals to assist her with her disabilities and did so without incident until March 2015, when one of her neighbors began complaining about alleged noise.  In response, the New York City Department of Environmental Protection (“DEP”) visited the building and/or the Complainant’s apartment on 15 occasions over the course of a year and conducted inspections of these noise complaints.  DEP issued zero notices of noise violations.  RUTHERFORD never conducted any decibel testing or other objective evaluation of the alleged noise complaints.  Similarly, RUTHERFORD never retained the services of a noise prevention consultant, architect, engineer, or anyone with qualifications or experience in soundproofing to address the neighbor’s complaints.

In March 2016, the Complainant asked RUTHERFORD to allow her to maintain her parrots as support animals as a reasonable accommodation under the FHA, supporting her request with a letter from her treating psychiatrist.  

The FHA makes it unlawful to discriminate in the terms and conditions of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter’s disability.  The FHA also mandates that reasonable accommodations in rules, policies, practices, and services be provided when necessary to afford equal housing opportunities to persons with disabilities.  The assistance animals that must be allowed in private dwellings under the FHA are different from those that must be allowed in places of public accommodation under the Americans with Disabilities Act, which is limited to dogs and miniature horses.  Under the FHA and its applicable regulations, persons with disabilities may maintain in their homes a wide array of animals as support animals, provided the animal does not pose a direct threat to the health or safety of others, and does not physically damage the property.

Despite being aware that the Complainant was a person with a disability who needed the parrots as support animals, RUTHERFORD commenced eviction proceedings against the Complainant in May 2016.  The Complainant began to suffer severe emotional harm because of the eviction proceedings and left her apartment in July 2016.  Despite the fact that the Complainant left the building in 2016, RUTHERFORD continued to maintain the eviction proceeding against her well into 2024.

In May 2018, the Complainant filed a Complaint with HUD, alleging that the eviction proceeding interfered with her fair housing rights.  While HUD was investigating the Complaint, the Complainant obtained an offer to purchase the shares appurtenant to her unit for $467,500, but RUTHERFORD rejected the application from the proposed purchaser, thereby prolonging the dispute and, as alleged by the Government, engaging in retaliation against the Complainant for asserting her rights.

HUD completed its investigation and, in January 2021, found probable cause to believe that RUTHERFORD violated the FHA, at which juncture the parties had the opportunity to settle the matter, or, failing that, either the Complainant or RUTHERFORD could elect to proceed to federal court with the dispute.  RUTHERFORD chose to proceed to federal court, thereby triggering the statutory requirement that the Department of Justice file suit against it to resolve the matter in federal court.

Under the consent decree approved by Judge Rearden, RUTHERFORD must:

• Pay the Complainant $165,000 in damages, upon receipt of a release from the Complainant;

• Offer $585,000 to purchase the Complainant’s shares in the co-operative at a time when similarly situated units in the building are valued at approximately $500,000;

• In the event that the closing of the sale of the Complainant’s unit does not occur, provide the Complainant with additional accommodations, including a right to sublet the unit for 10 years;

• Adopt a reasonable accommodation policy regarding requests for assistance animals;

• Comply with certain notice, training, and recordkeeping requirements to ensure that its

agents and officers are knowledgeable about and comply with the requirements of the FHA;

• Allow the U.S. to monitor compliance with the Consent Decree;

• Dismiss the eviction proceedings against the Complainant in Housing Court.

This is the tenth case brought in recent years by the Southern District of New York to vindicate the rights of tenants and co-operative shareholders to maintain support animals in their homes, and the tenth case to end with an agreement compensating the victims of the alleged discriminatory acts and requiring the adoption of reasonable accommodation policies to protect future residents and co-operative shareholders from discrimination.  The monetary recovery for the Complainant in this case, above and beyond the value of her shares, is the largest recovery by the Government for a victim of housing discrimination denied the right to an assistance animal.

Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, by email to SDNY.Rights@usdoj.gov, or may contact the Department of Housing and Urban Development at 1-800-669-9777 or www.hud.gov.

The case is being handled by the Office’s Civil Rights Unit in the Civil Division.  Assistant U.S. Attorney David J. Kennedy is in charge of the case. 

Damian Williams, the United States Attorney for the Southern District of New York, announced today that FRED MASTROIANNI was sentenced to 35 years in prison by U.S. District Judge Philip M. Halpern for sexual exploitation of a child and distribution and possession of child sex abuse material.  MASTROIANNI previously pled guilty to one count of receiving and distributing child sex abuse material and one count of sexual exploitation of a child.

U.S. Attorney Damian Williams said: “The sentencing of Fred Mastroianni holds him accountable for years of horrific sexual abuse of children and for distributing and possessing a massive collection of child sex abuse material.  Mastroianni is being punished for the devastating harm and trauma he inflicted on his minor victims and their families.  This Office will do everything in its power to protect children and bring those who sexually exploit them to justice.”

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

MASTROIANNI repeatedly victimized a young child (“Victim-1”) for his own sexual gratification.  MASTROIANNI’s sexual abuse of Victim-1 began when Victim-1 was just 10 years old and continued until MASTROIANNI’s arrest.  On multiple occasions until Victim-1 turned 14 years old, MASTROIANNI directed ISMET KORAC to coerce Victim-1 to engage in sexual activities on live video calls with MASTROIANNI.  MASTROIANNI recorded that abuse and kept the recordings, as well as other nude photographs of Victim-1, for years.  MASTROIANNI broke Victim-1’s will and spirit to resist the abuse through a combination of threats and promises of gifts.

When Victim-1 was 17 years old, MASTROIANNI continued offering Victim-1 money and clothes in exchange for more photos and videos of Victim-1 engaging in sex acts.  After years of victimizing and grooming Victim-1, as soon as Victim-1 turned 18, MASTROIANNI, who was 48 years old at the time, began paying Victim-1 to have sex with himself and other men, which continued until MASTROIANNI’s arrest.

In addition, for more than a decade, MASTROIANNI amassed and maintained an extensive collection of child sex abuse material, which he shared with others online.  These videos involved rape, incest, and unspeakable abuse to very young children.

*                *                *

In addition to the prison term, MASTROIANNI, 53, of White Plains, New York, was sentenced to a lifetime of supervised release and ordered to pay a total of $10,000 in assessments and restitution in an amount to be determined.

Co-defendant ISMET KORAC, 49, of White Plains, New York, previously pled guilty to enticing a minor to engage in sexual activity and was sentenced to 25 years in prison by U.S. District Judge Kenneth M. Karas on April 16, 2024.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation.

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

Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of FAREED DABIDAH for possessing numerous fully automatic firearms, semi-automatic firearms, silencers, and dozens of machinegun conversion devices in the Bronx.  DABIDAH was arrested this morning and will be presented later today in front of U.S. Magistrate Judge Sarah L. Cave. 

U.S. Attorney Damian Williams said: “As alleged, Fareed Dabidah built dozens of ghost guns – some by using 3D printing – at his apartment in the Bronx.  He allegedly converted many of the ghost guns into fully automatic weapons and had everything he needed to convert many more.  Machinegun conversion devices, like the 39 the defendant possessed, are particularly dangerous gun accessories that turn ordinary firearms into fully automatic weapons.  Removing these extraordinarily dangerous devices from our streets is an important law enforcement goal, and this Office will keep working diligently with our law enforcement partners to keep these devices and other illegal guns out of New York City.”

NYPD Commissioner Edward A. Caban said: “NYPD investigators’ meticulous work in this case underscores our efforts to eradicate gun violence by stopping homemade, untraceable ghost guns and other illegal firearms from ever reaching New York City streets.  I thank our federal colleagues for their partnership and their continued dedication to our shared public safety mission.”         

According to the allegations in the Complaint:1

Beginning as early as October 2022, DABIDAH ordered from various online retailers the components needed to 3D print and assemble numerous privately made firearms, which are commonly referred to as “ghost guns.”  On August 15, 2024, law enforcement agents conducted a search of DABIDAH’s apartment, pursuant to a judicially authorized search warrant.  During the execution of the warrant, law enforcement officers found, among other things, approximately 39 machinegun conversion devices; 14 completed ghost guns, including six with machinegun conversion devices installed; five partially assembled, 3D printed assault rifles, including two with machinegun conversion devices installed; two firearms silencers; two 3D printers; and various magazines and ammunition for use in the recovered firearms.

A “machinegun conversion device” is an item that converts a semi-automatic firearm into a fully automatic weapon by circumventing the weapon’s intended cycle.  Colloquially, machinegun conversion devices for handguns are frequently referred to as “Glock switches” and ones for assault rifles are referred to as “auto sears.”  Federal law prohibits the unlicensed possession of machineguns, a term that includes machinegun conversion devices.

The photographs below show many of the firearms recovered during the search of DABIDAH’s residence this morning, including 3D printed handguns and assault rifles, and a handgun and assault rifle with machinegun conversion devices installed.

3D Printed Handguns and Assault Rifles

9mm Ghost Gun with Glock Switch

Assault Rifle with Auto Sear

*                *                *

DABIDAH, 22, of the Bronx, New York, is charged with one count of possession of a machinegun, which carries a maximum potential sentence of 10 years in prison.

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

Mr. Williams praised the outstanding work the NYPD and further thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Postal Inspection Service; U.S. Customs and Border Protection; and Homeland Security Investigations for their assistance in the investigation.

The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Andrew Jones is in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that four flight attendants charged in connection with smuggling drug money to the Dominican Republic have pled guilty to operating an unlicensed money transmission business.  SARAH VALERIO PUJOLS pled guilty before U.S. District Judge Naomi Reice Buchwald on July 23, 2024; CHARLIE HERNANDEZ pled guilty before U.S. District Judge Ronnie Abrams on July 25, 2024; EMMANUEL TORRES pled guilty before U.S. Magistrate Judge Sarah Cave on August 12, 2024; and JAROL FABIO pled guilty before U.S. District Judge Arun Subramanian on August 13, 2024.

U.S. Attorney Damian Williams said: “These four flight attendants abused their privileges as flight attendants to move money for drug traffickers.  My Office is committed to staunching the illicit flow of narcotics proceeds in all of its forms.  These guilty pleas show that the sky is not the limit when it comes to law enforcement’s reach.”

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

During the relevant period, all of the defendants were employed as flight attendants with different international airlines that operated routes between New York City and the Dominican Republic.  All of the defendants had “Known Crewmember” (“KCM”) status with the Transportation Security Administration, which allowed them to pass through a special security lane at John F. Kennedy International Airport and other airports with less scrutiny than normal passengers.

Before or in about October 2021, a cooperating witness (“CW-1”) operated a significant money laundering organization (“MLO”) in New York City, specializing in the movement of cash proceeds from narcotics sales from New York City to the Dominican Republic.  One method that CW-1 used in furtherance of their MLO was corrupting flight attendants, like the defendants, who worked routes between New York City and the Dominican Republic.  In exchange for a fee – which generally amounted to a small percentage of the amount of money that they would be smuggling – the defendants accepted bulk cash from CW-1 in New York City, got it past airport security via the KCM lane, and passed it off to other members of CW-1’s MLO in the Dominican Republic, including another cooperating witness (“CW-2”).  After CW-1 and CW-2 began cooperating with law enforcement, Homeland Security Investigations (“HSI”) and the New York City Police Department (“NYPD”) orchestrated a number of sting operations in which CW-1 provided law enforcement funds represented to be narcotics proceeds to the defendants, who then smuggled it down to the Dominican Republic and handed it off to CW-2, who returned the funds to law enforcement.

*                *                *

PUJOLS, 42, of the Bronx, New York; HERNANDEZ, 42, of West New York, New Jersey; EMMANUEL TORRES, 34, of Brooklyn, New York; and JAROL FABIO, 35, of New York, New York, each respectively pled guilty to one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison.  PUJOLS will be sentenced by Judge Buchwald on November 14, 2024; HERNANDEZ will be sentenced by Judge Abrams on November 15, 2024; TORRES will be sentenced by U.S. District Judge Colleen McMahon on January 6, 2025; and FABIO will be sentenced by Judge Subramanian on November 15, 2024.  As part of their guilty pleas, PUJOLS, HERNANDEZ, TORRES, and FABIO each agreed to forfeit property involved in their commission of the offense.

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. Williams praised the investigative work of HSI and the NYPD.

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

Damian Williams, the United States Attorney for the Southern District of New York, and Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that JUAN TOMAS DIAZ was arrested yesterday and charged with one count of possessing child pornography.  DIAZ will be presented later today before U.S. Magistrate Judge Sarah L. Cave. 

U.S. Attorney Damian Williams said: “As alleged, Juan Tomas Diaz, who had access to and lived in the same building as a daycare run by a family member, possessed at least one hundred images of child pornography.  Among those were graphic videos and images of children, ranging from infants to young teenagers, being raped and engaging in other sexual conduct.   Our investigation into Diaz is ongoing, and we urge anyone with information about Diaz’s conduct to call HSI at 1-877-4-HSI-TIP.  We will continue to tirelessly work together with our law enforcement partners to detect predators and protect our community’s children.” 

Acting Special Agent in Charge Erin Keegan said: “As alleged, Juan Tomas Diaz was found to have been in possession of over 100 images and videos of child pornography at his home mere steps from a daycare.  Every parent's worst nightmare, the defendant had access to a childcare facility where toddlers' and young adolescents' loved ones expected they would be safe.  This arrest underscores the urgency of our commitment to collaborate with our partners in the relentless fight of safeguarding our communities.  I commend HSI New York's Child Exploitation Investigations Team and the U.S. Attorney's Office for the Southern District of New York for confronting this alarming reality directly.”

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

DIAZ lives in a basement apartment in the Bronx, located below a daycare.  11 children are currently enrolled at the daycare.  DIAZ has access to the daycare, which is run by a family member of DIAZ. 

On or about August 13, 2024, federal agents executed a judicially authorized search warrant of DIAZ’s apartment.  Pursuant to that warrant, federal agents seized and searched DIAZ’s phone, which was found to contain what appears to be over 100 images of child pornography.  DIAZ, after waving his Miranda rights and signing a written Miranda consent form, voluntarily spoke to law enforcement and admitted to having viewed videos and images of minors engaged in sexual activity.

*                *                *

DIAZ, 46, of the Bronx, New York, is charged with one count of possession of child pornography, which carries a maximum sentence of 10 years in prison.   

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

Mr. Williams praised the outstanding investigative work of HSI.  

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Lauren E. Phillips is in charge of the prosecution.

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

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

Arthur Petrov Allegedly Participated in a Russia-Based Illicit Procurement Network That, Subsequent to Russia’s Invasion of Ukraine, Illegally Procured Large Quantities of Sensitive Microelectronics for a Russian Company That Supplies Manufacturers for the Russian Military

Arthur Petrov, 33, a dual Russian and German national, made his initial appearance in federal court today, following his extradition from the Republic of Cyprus for criminal offenses related to export control violations, smuggling, wire fraud and money laundering. Petrov allegedly participated in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov was arrested on Aug. 26, 2023, in the Republic of Cyprus at the request of the United States.

“Today’s extradition demonstrates the Justice Department’s enduring commitment to cutting Russia off from the western technologies that fuel President Putin’s war machine,” said Deputy Attorney General Lisa Monaco. “Together with global partners, the Department’s Disruptive Technology Strike Force and Task Force KleptoCapture will vigorously investigate and prosecute efforts to evade the global sanctions and export controls imposed to counter Russia’s brutal war in Ukraine. The defendant’s extradition is a vital step towards holding Russia accountable, and I am grateful to our Cypriot partners for their assistance in this matter.”

“Our charges allege that, after Russia’s full-scale invasion of Ukraine, the defendant and his co-conspirators formed an elaborate tech-trafficking syndicate to supply microelectronics to Russia’s military-industrial complex,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Together with our international law enforcement partners, the Justice Department will now hold Petrov to account in a U.S. courtroom and continue dismantling criminal networks that threaten our collective security.”

“As demonstrated by today’s extradition, just because you’re located overseas doesn’t mean we won’t find you,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “If you procure sensitive U.S. microelectronics with military applications for Russia, you risk the very real threat of facing justice in a U.S. courtroom.”

“Arthur Petrov is alleged to have conspired to smuggle shipments from U.S. distributors of microelectronics with military applications through intermediary countries to Russia as part of an illicit Russian-based procurement network,” said U.S. Attorney Damian Williams for the Southern District of New York. “As alleged, he concealed the ultimate destination of these sensitive materials, and he knew that these transactions and shipments were in violation of U.S. export controls relating to Russia. Thanks to the efforts of our law enforcement partners here and abroad, Petrov is now in U.S. custody and will face justice in a U.S. courtroom. This case demonstrates that we will work tirelessly with our law enforcement partners to protect national security and disrupt and prosecute the illicit supply of U.S.-sourced military technology to Russia.”

“The extradition of Arthur Petrov and the allegations laid out in a criminal complaint send a strong message about the resolve and commitment of the FBI and its partners to stop the illegal transfer of sensitive, military-use technology,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “In the hands of hostile nations, such technology presents a significant threat to U.S. national security. Today’s actions demonstrate the power and reach of law enforcement partnerships to dismantle even the most elaborate schemes while keeping Americans safe in the process.”

According to court documents, Petrov worked for LLC Electrocom VPK (Electrocom), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov and two co-conspirators (CC-1 and CC-2), who are Russian nationals also working for Electrocom, operated an illicit procurement network in Russia and elsewhere overseas. They fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom. To carry out the scheme, Petrov, CC-1, and CC-2 used shell companies and other deceptive means to conceal that the electronics components were destined for Russia. The technology that Petrov and his co-conspirators have procured in contravention of export controls during the course of the conspiracy have significant military applications and include various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones and electronic warfare and communications devices.

To perpetrate the scheme, Petrov first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (Astrafteros), which he operates. Petrov procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact, the components are destined for Electrocom in Russia, which supplies manufacturers for the Russian military. The microelectronics that Petrov has procured as part of the conspiracy include, among other things, microcontrollers and integrated circuits that are on the Commerce Control List maintained by the Commerce Department and cannot lawfully be exported or reexported to Russia without a license from the Commerce Department. Invoices provided to Petrov by the U.S. distributors expressly noted that these microcontrollers and integrated circuits are subject to U.S. export controls.

To evade these controls, Petrov, CC-1, and CC-2 worked together to transship the controlled items procured by Petrov using pass-through entities operated by CC-1 and CC-2 in third countries. CC-1 and CC-2 then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia. At all times, Petrov, CC-1, and CC-2 concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia. During the course of the conspiracy, Petrov, CC-1, and CC-2 procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.

On Aug. 26, 2023, Petrov was arrested and detained by the Cypriot authorities at the request of the United States. The United States thereafter submitted a formal extradition request. On July 18, after extradition proceedings in the Cypriot courts concluded with extradition being approved, the Cypriot Minister of Justice and Public Order issued the extradition order.

Petrov is charged with one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison; one count of conspiracy to violate the Export Control Reform Act (ECRA), which carries a maximum penalty of 20 years in prison; three counts of violating the ECRA, each of which carries a maximum penalty of 20 years in prison; one count of conspiracy to smuggle goods from the United States, which carries a maximum penalty of five years in prison; three counts of smuggling goods from the United States, which each carry a maximum penalty of 10 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorney Kevin Sullivan for the Southern District of New York and Trial Attorney Maria Fedor of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

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

Damian Williams, the United States Attorney for the Southern District of New York; Lisa Monaco, the Deputy Attorney General of the United States; Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Matthew S. Axelrod, the Assistant Secretary for Export Enforcement of the Commerce Department, announced today that ARTHUR PETROV, a dual Russian and German national, was extradited from the Republic of Cyprus after having been charged with export control violations, smuggling, wire fraud, and money laundering offenses in connection with his alleged participation in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.  PETROV was arrested on August 26, 2023, in the Republic of Cyprus at the request of the U.S.  He arrived in the Southern District of New York yesterday and will be presented later today before U.S. Magistrate Judge Jennifer E. Willis.

U.S. Attorney Damian Williams said: “Arthur Petrov is charged with conspiring to smuggle microelectronics with military applications from U.S. distributors to Russia as part of an illicit Russian-based procurement network that supplies manufacturers for the Russian military.  As alleged, he concealed the ultimate destination of these sensitive materials, and he knew that these transactions and shipments were in violation of U.S. export controls relating to Russia.  Thanks to the efforts of our law enforcement partners here and abroad, Petrov is now in U.S. custody and will face justice in a U.S. courtroom.  This case demonstrates that we will work tirelessly with our law enforcement partners to protect national security and disrupt and prosecute the illicit supply of U.S.-sourced military technology to Russia.”

Deputy Attorney General Lisa Monaco said: “Today’s extradition demonstrates the Justice Department’s enduring commitment to cutting Russia off from the western technologies that fuel President Putin’s war machine.  Together with global partners, the Department’s Disruptive Technology Strike Force and Task Force KleptoCapture will vigorously investigate and prosecute efforts to evade the global sanctions and export controls imposed to counter Russia’s brutal war in Ukraine.  The defendant’s extradition is a vital step towards holding Russia accountable, and I am grateful to our Cypriot partners for their assistance in this matter.”

Assistant Attorney General Matthew G. Olsen said: “Our charges allege that, after Russia’s full-scale invasion of Ukraine, the defendant and his co-conspirators formed an elaborate tech-trafficking syndicate to supply microelectronics to Russia’s military-industrial complex.  Together with our international law enforcement partners, the Justice Department will now hold Petrov to account in a U.S. courtroom and continue dismantling criminal networks that threaten our collective security.”

Acting Assistant Director in Charge Christie M. Curtis said: “Arthur Petrov was brought to the United States to answer for allegedly participating in a global procurement scheme which secretly supplied Russia’s military industrial complex with critical U.S. technology, including the same types of microelectronics recovered from Russian weapons on Ukrainian battlefields.  This extradition underscores the dedication of the FBI and our international partners to maintaining the rule of law and holding accountable anyone attempting to evade international sanctions.  The FBI is committed to protecting our national security and bringing to justice anyone who attempts to undermine it, no matter where they are in the world.”

Assistant Secretary for Export Enforcement Matthew S. Axelrod said: “As demonstrated by today’s extradition, just because you’re located overseas doesn’t mean we won’t find you.  If you procure sensitive U.S. microelectronics with military applications for Russia, you risk the very real threat of facing justice in a U.S. courtroom.” 

According to the allegations contained in the Complaint and statements made during Court proceedings:[1]

PETROV is a dual Russian-German national who resided in Russia and Cyprus and worked for LLC Electrocom VPK (“Electrocom”), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.  PETROV and two co-conspirators (“CC-1” and “CC-2”), who are Russian nationals also working for Electrocom, operated an illicit procurement network in Russia and elsewhere overseas.  They have fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom.  To carry out the scheme, PETROV, CC-1, and CC-2 used shell companies and other deceptive means to conceal that the electronics components were destined for Russia.  The technology that PETROV and his co-conspirators have procured in contravention of export controls during the course of the conspiracy have significant military applications and include various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.

To perpetrate the scheme, PETROV first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (“Astrafteros”), which he operates.  PETROV procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact the components are destined for Electrocom in Russia, which supplies manufacturers for the Russian military.  The microelectronics that PETROV has procured as part of the conspiracy include, among other things, microcontrollers and integrated circuits that are on the Commerce Control List maintained by the Commerce Department and cannot lawfully be exported or reexported to Russia without a license from the Commerce Department.  Invoices provided to PETROV by the U.S. distributors expressly noted that these microcontrollers and integrated circuits are subject to U.S. export controls.

To evade these controls, PETROV, CC-1, and CC-2 worked together to transship the controlled items procured by PETROV using pass-through entities operated by CC-1 and CC-2 in third countries.  CC-1 and CC-2 then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia.  At all times, PETROV, CC-1, and CC-2 concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia.  During the course of the conspiracy, PETROV, CC-1, and CC-2 procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.

On August 26, 2023, PETROV was arrested and detained by the Cypriot authorities at the request of the U.S.  The U.S. thereafter submitted a formal extradition request.  On July 18, 2024, after extradition proceedings in the Cypriot courts concluded with extradition being approved, the Cypriot Minister of Justice and Public Order issued the extradition order.

*                *                *

PETROV, 33, a dual Russian-German citizen who has resided in Russia and Cyprus, is charged with one count of conspiracy to defraud the U.S., which carries a maximum sentence of five years in prison; one count of conspiracy to violate the Export Control Reform Act (“ECRA”), which carries a maximum sentence of 20 years in prison; three counts of violating the ECRA, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to smuggle goods from the U.S., which carries a maximum sentence of five years in prison; three counts of smuggling goods from the U.S., which each carry a maximum sentence of 10 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.

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

Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the Bureau of Industry and Security of the Department of Commerce.  Mr. Williams also thanked the FBI’s Legal Attaché offices in Poland, Germany, and Athens, Greece; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; the Department of Justice’s Office of International Affairs; the Republic of Cyprus Ministry of Justice and Public Order; and the Law Office of the Republic for their assistance.  The Republic of Cyprus National Police also provided critical assistance in effecting the defendant’s arrest and detention at the request of the U.S.

This prosecution is coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force.  Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the U.S. has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution, with assistance from Trial Attorney Maria Fedor of the Counterintelligence and Export Control Section.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that JUSTIN TURNICK pled guilty to conspiring to distribute fentanyl.  TURNICK distributed fentanyl that resulted in three fatal fentanyl poisonings and three non-fatal fentanyl poisonings between February 2020 and April 2022 in Rockland County, New York.  TURNICK pled guilty earlier today before U.S. District Judge Philip M. Halpern.

U.S. Attorney Damian Williams said: “Justin Turnick’s actions didn’t just facilitate addiction—they fueled a crisis that claimed lives and inflicted unimaginable suffering.  As we move forward, this Office remains resolute in its mission to combat the fentanyl epidemic and seek justice for the families and individuals affected by these deadly substances.”

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 to Gustaf Olsen, resulting in his death, on or about February 3, 2020; to Jonathan Shashoua, resulting in his death, on or about July 11, 2020; to a female victim, resulting in her poisoning and serious bodily injury, on or about January 5, 2021; to Ione Koenig, resulting in her poisoning and serious bodily injury, on or about July 30, 2021; to Ione Koenig, resulting in her death, on or about July 31, 2021; and to a male victim, resulting in his poisoning and serious bodily injury, on or about on or about April 19, 2022.

*                *                *

TURNICK, 25, of Congers, New York, pled guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison.  As part of his guilty plea, TURNICK stipulated that the substances he conspired to distribute and possess with intent to distribute resulted in the fatal fentanyl poisonings of Gustaf Olsen, Jonathan Shashoua, and Ione Koenig, and the non-fatal fentanyl poisonings of a female victim, a male victim, and Ione Koenig.

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

Mr. Williams 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.

Damian Williams, the United States Attorney for the Southern District of New York, announced that on Friday, August 2, 2024, a jury found ARIE RANGOTT guilty of conspiring to defraud the federal Head Start program, to submit a false document to the federal government, and to obstruct a federal administrative proceeding.  RANGOTT was found guilty following a two-week trial before U.S. District Judge Jennifer H. Rearden and is scheduled to be sentenced on December 10, 2024.

U.S. Attorney Damian Williams said: “By secretly exploiting a non-profit entity for personal gain, Arie Rangott defrauded the federal government and undermined the public’s trust in the Head Start program.  This Office is committed to pursuing justice against 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 of this Office 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 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 a report to HHS 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.  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.  Isidore Handler, who played a significant role in falsifying documents submitted to HHS, pled guilty in September 2023.  All three await sentencing.

*                *                *

RANGOTT, 54, of Toms River, New Jersey, was convicted of conspiracy to defraud the U.S., conspiracy to falsify documents and records, and conspiracy to obstruct an agency proceeding.  Each of the three offenses carries a maximum sentence of five years in prison.

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

Mr. Williams 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. Williams 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.  

“Haji Abdul Satar Abdul Manaf, an international drug trafficker with deep ties to terrorist organizations, attempted to import large quantities of heroin into the United States while paying the Taliban and attempting to provide financial support to the Haqqani Network, another terrorist organization responsible for acts of terrorism against this country. After he was arrested and extradited to the United States, Manaf worked with others in Afghanistan to kidnap and intimidate a witness at gunpoint. Today, Manaf has been found guilty on all counts, and now faces significant time in prison for his attempts to exploit the heroin trade, fuel terrorism, and kidnap and threaten a witness. This verdict brings justice to the countless lives endangered by Manaf’s actions and hope to the many others under threat of terrorist organizations. It is thanks to the exceptional work of the career national security prosecutors of this Office, the DEA, and our international partners that Manaf has been brought to justice. This Office remains resolute in its mission to dismantle such dangerous networks and protect those fighting against terrorism.”

Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of a Complaint charging OSCAR LEMUS with sexual exploitation and enticement of a minor to engage in unlawful sexual activity.  LEMUS was presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.

U.S. Attorney Damian Williams said: “This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them.  As today’s arrest shows, we will use every tool available to law enforcement to investigate and prosecute those alleged to have sexually exploited children.” 

As alleged in the Complaint:[1]

From at least on or about April 20, 2024, up to and including April 23, 2024, LEMUS, who used the screen name “lemus.xp,” met a 14-year-old minor on social media and persuaded her to meet him in Rockland County, New York, to engage in sexual activity.

On or about March 16, 2024, LEMUS engaged in sexual activity with a 14-year-old minor in the Bronx, New York, and video-recorded the sexual activity using a cellphone.

On or about August 20, 2023, LEMUS persuaded a 16-year-old minor in Mississippi to engage in sexual activity during a live video chat with LEMUS.

Anyone who may have encountered LEMUS or whose child may have had any communications with LEMUS is asked to contact the FBI at 1-800-CALL-FBI (225-5324).

*                *                *

LEMUS, 23, of Haverstraw, New York, is charged with one count of enticing a minor to engage in unlawful sexual activity, which carries a maximum sentence of life in prison.  He is also charged with two counts of sexual exploitation of a minor, each of which carries a maximum sentence of 30 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 a judge.

Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Ramapo Police Department, the Rockland County District Attorney’s Office, and the Rockland County Sheriff’s Department in connection with this investigation.

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

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

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