Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, announced that VINOTH PONMARAN was sentenced to seven years in prison for participating in a fraud conspiracy that exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services that they did not need and which were never actually provided.  In total, the conspiracy generated more than $6 million in criminal proceeds from at least approximately 6,500 victims.  PONMARAN previously pled guilty before U.S. District Judge Vernon S. Broderick, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Vinoth Ponmaran was a leader of a sophisticated fraud scheme that preyed on over 6,000 victims, including the elderly.  This conspiracy caused pop-up windows to appear on victims’ computers—pop-up windows which claimed, falsely, that a virus had infected the victim’s computer.  Through this and other misrepresentations, Ponmaran's fraud scheme deceived his many victims, including some of society’s most vulnerable members, into paying a total of more than $6 million.  Today’s sentence sends a clear message: those who exploit the vulnerable for financial gain will pay a heavy price.”

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

From approximately March 2015 through July 2018, PONMARAN was a member of a criminal fraud ring (the “Fraud Ring”) based in the U.S. and India that committed a technical support fraud scheme targeting elderly victims located across the U.S. and Canada, including in the Southern District of New York.  The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services.  Over the course of the conspiracy, the Fraud Ring generated more than $6 million in proceeds from at least 6,500 victims.

The scheme generally worked as follows.  First, the Fraud Ring caused pop-up windows to appear on victims’ computers.  The pop-up windows claimed, falsely, that a virus had infected the victims’ computers.  The pop-up windows directed the victims to call a particular telephone number to obtain technical support.  In at least some instances, the pop-up windows threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.”  In an attempt to give the false appearance of legitimacy, in some instances the pop-up windows included, without authorization, the corporate logo of a well-known, legitimate technology company.  In fact, no virus had infected victims’ computers, and the technical support phone numbers in the pop-up windows were not associated with the legitimate technology company.  Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist.  And while the purported “virus” was a hoax, the pop-up windows themselves did cause various victims’ computers to completely “freeze,” thereby preventing these victims from accessing the data and files in their computer—which caused some victims to call the phone number listed in the pop-up windows.  In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technicians remotely accessed the victim’s computers and ran an anti-virus tool, which is free and available on the Internet. 

PONMARAN was an India-based leader of the Fraud Ring.  Among other things, PONMARAN managed a call center in India that was used to provide purported computer repair services to victims of the scheme.  PONMARAN also recruited co-conspirators in the U.S. to register fraudulent corporate entities and open bank accounts that were used to receive fraud proceeds from victims of the scheme.  PONMARAN also laundered fraud proceeds in multiple ways, including by directing co-conspirators to wire fraud proceeds to accounts in India and the U.S.

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In addition to his prison sentence, PONMARAN, 36, a citizen of India, was sentenced to three years of supervised release and forfeiture of $6,110,884.51.

PONMARAN’s co-defendants, Romana Leyva and Ariful Haque, were both sentenced by Judge Paul A. Crotty in 2022, following their respective guilty pleas.  Leyva was sentenced to 100 months in prison and three years of supervised release, and she was ordered to forfeit $4,679,586.93 and to pay restitution of $2,707,882.91.  Haque was sentenced to one year and one day in prison and three years of supervised release, and he was ordered to forfeit $38,886.32 and to pay restitution of $470,672.16.

Mr. Williams praised the outstanding work of the New York Office of the Homeland Security Investigations’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group.  Mr. Williams also thanked the New York City Police Department for its assistance on this case. 

This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit on behalf of teacher and U.S. Army National Guard member John Chewens against LIBERTY CENTRAL SCHOOL DISTRICT (“LIBERTY”) under the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”).  The Complaint alleges that LIBERTY, which is in Sullivan County, New York, willfully violated USERRA by refusing to compensate Chewens at the proper rate because of his absence from the school during a military deployment.

U.S. Attorney Damian Williams said: “Federal law ensures that our brave soldiers, who sacrifice so much to keep us safe, are not punished by employers when they return to the workforce after completing their military service.  This Office is dedicated to giving full force to USERRA’s protections to ensure that service members like Captain John Chewens receive all the benefits to which they are legally entitled.”

According to the pleadings filed in Manhattan federal court:

LIBERTY pays teachers according to a salary schedule by which a teacher’s base annual salary is determined by the teacher’s step.  Teachers typically progress one step per school year, which results in an increase in the teacher’s compensation.

Chewens began teaching at LIBERTY in the 2016–17 school year, and he was paid at step 1.  At the start of the 2017–18 year, he progressed to step 2.  Subsequently, he was ordered to report for active duty starting in March 2018, in support of Operation Enduring Freedom.  As a result of his deployment, he did not return to teaching until April 2019.

Because of his absence during his deployment, when Chewens returned to teaching, LIBERTY denied him the step increase that he would have otherwise received.  As a result, his annual base salary was repeatedly less than it would have been but for his military service.

USERRA guarantees that service members whose employment is interrupted by more than 90 days of military service are, upon their return to the employer, paid at the same rate that they would have earned absent their military service.

The Complaint seeks, among other things, compensation for Chewens’s lost wages and liquidated damages.

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This case is being handled by the Office’s Civil Rights Unit in the Civil Division.  Assistant U.S. Attorney Mark Osmond is 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 arrest of NADER AL-NAJI, the founder and promoter of the “BitClout” token.  AL-NAJI was charged with defrauding a “BitClout” purchaser by making false and misleading representations disclaiming control over the use of the investment funds.  AL-NAJI was taken into custody on Saturday, July 27, 2024, and was presented yesterday before a U.S. Magistrate Judge in California.

U.S. Attorney Damian Williams said: “BitClout may have been a new token, but Nader Al-Naji’s alleged fraud was nothing new.  He allegedly lied to get access to millions of dollars, then gave the money away to family and friends.  Today’s arrest signifies this Office’s commitment to holding to account people who use deception to enrich themselves.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: “Nader Al-Naji, founder of the BitClout protocol, allegedly lied to investors and misappropriated investments in the protocol for personal expenses and gifts.  Failing to properly disclose the use of invested funds disrupts the integrity vital to investing and can breed distrust for future opportunities.  The FBI does not tolerate individuals who use false promises and half-truths to exploit well-intended investors of their funds.

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

AL-NAJI is the founder of BitClout, a social media and cryptocurrency trading platform that purportedly allowed users to purchase BitClout tokens using Bitcoin, ostensibly through a decentralized protocol without any centralized issuer, for the purpose of trading BitClout tokens in connection with the social media profiles of other BitClout users.

BitClout held itself out as a “cross between a financial app and a social app.”  Specifically, BitClout was touted as “a social network built from the ground up as its own custom blockchain.  It’s not a company, it has no employees—it’s just code and coins . . . . [W]e refer to BitClout as a ‘protocol’—it is ultimately nothing more than an open-source piece of code running on machines all over the world.  No company, just code and coins.”

In or about January 2021, AL-NAJI contacted representatives of a prospective investor (“Investor-1”) to discuss the BitClout project and provided Investor-1 with BitClout’s marketing material.  On or about January 18, 2021, AL-NAJI met with representatives of Investor-1 and stated, in substance and in part, his intent to use the Bitcoin raised from selling BitClout to develop the BitClout protocol.  As part of negotiations with Investor-1, AL-NAJI claimed, in substance, that the role played by his entity was merely to purchase BitClout tokens from the protocol, and that he did not have any control over the funds after the purchase was complete.

In fact, contrary to AL-NAJI’s representations to Investor-1, AL-NAJI did maintain control over the proceeds provided by Investor-1 and used them for, among other things, personal expenses and gifts to AL-NAJI’s family members.  After inducing Investor-1 to invest approximately $3 million, AL-NAJI routed the funds through multiple accounts for the ultimate benefit of himself and family members.

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Al-NAJI, 32, of Los Angeles, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Williams praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant, for its assistance in the investigation.

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Sarah Mortazavi and Nicholas Folly are in charge of the prosecution.

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

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

John Chen, 71, of the People's Republic of China (PRC) and Los Angeles, California, and Lin Feng, 44, a PRC citizen and resident of Los Angeles, California, pleaded guilty to acting as unregistered agents of the PRC and bribing an IRS agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.

According to court documents, from at least approximately January 2023 to May 2023, Chen and Feng worked inside the United States at the direction of the PRC government, including PRC government official identified as PRC Official-1, to further the PRC's campaign to repress and harass Falun Gong practitioners. The PRC designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the Chinese government, including imprisonment.

As part of the PRC's campaign against the Falun Gong, Chen and Feng engaged in a PRC government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners (Entity-1). After Chen filed a defective whistleblower complaint with the IRS, Chen and Feng paid $5,000 in cash bribes and promised to pay substantially more to a purported IRS agent (Agent-1) who was, in fact, an undercover officer, in exchange for Agent-1’s assistance in advancing the complaint. Neither Chen nor Feng notified the Attorney General that they were acting as agents of the PRC in the United States.

In the course of the scheme, Chen, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC, was to carry out the PRC government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, Chen and Feng discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if Chen and Feng’s meetings to bribe Agent-1 did not go as planned. Chen and Feng also discussed that PRC Official-1 was the PRC government official “in charge” of the bribery scheme targeting the Falun Gong.

As part of this scheme, Chen and Feng met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, Chen gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. Chen further offered to pay Agent-1 a total of $50,000 for opening an audit of Entity-1, as well as 60% of any whistleblower award from the IRS if the Chen whistleblower complaint were successful. On May 18, 2023, Feng paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme. 

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 R. Wells of the FBI’s National Security Branch made the announcement.  

Chen and Feng each pleaded guilty to one count of acting as an unregistered agent of a foreign government and one count of bribing a public official. Chen pleaded guilty yesterday and is scheduled to be sentenced on Oct. 30. Feng pleaded guilty today and is scheduled to be sentenced on Oct. 31. Chen and Feng each face a maximum penalty of 25 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 and the Office of the Treasury Inspector General for Tax Administration are investigating the case.

Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard and Kathryn Wheelock for the Southern District of New York and Trial Attorney Christina Clark of the Counterintelligence and Export Control Section are prosecuting the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN CHEN and LIN FENG pled guilty to acting as unregistered agents of the government of the People’s Republic of China (“PRC”) and bribing an Internal Revenue Service (“IRS”) agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.  CHEN pled guilty yesterday before U.S. Magistrate Judge Andrew E. Krause and is scheduled to be sentenced on October 30, 2024, before U.S. District Judge Nelson S. Román.  FENG pled guilty today before Judge Krause and will be sentenced on October 31, 2024, before Judge Román.

U.S. Attorney Damian Williams said: “John Chen and Lin Feng brazenly attempted to bribe an undercover agent they believed to be an IRS agent here in the United States on behalf of the PRC Government in order to harass and intimidate the Falun Gong, a target of PRC repression.  Efforts such as this to repress free speech by targeting critics of the PRC in the United States will not be tolerated.  This Office remains committed to thwarting malicious transnational repression attempts by foreign influences on American soil.”

According to Indictment and other court documents:

From at least approximately January 2023 to May 2023, CHEN and FENG worked inside the United States at the direction of the PRC Government, including an identified PRC Government official (“PRC Official-1”), to further the PRC Government’s campaign to repress and harass Falun Gong practitioners.  The PRC Government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule.  In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC Government, including imprisonment.

As part of the PRC Government’s campaign against the Falun Gong, CHEN and FENG engaged in a PRC Government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners (“Entity-1”).  After CHEN filed a defective whistleblower complaint with the IRS (the “Chen Whistleblower Complaint”), CHEN and FENG paid $5,000 in cash bribes, and promised to pay substantially more, to a purported IRS agent who was, in fact, an undercover officer (“Agent-1”) in exchange for Agent-1’s assistance in advancing the complaint.  Neither CHEN nor FENG notified the Attorney General that they were acting as agents of the PRC Government in the United States.

In the course of the scheme, CHEN, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC Government, was to carry out the PRC Government’s aim of “toppl[ing] . . . the Falun Gong.”  During a call intercepted pursuant to a judicially authorized wiretap, CHEN and FENG discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if CHEN and FENG’s meetings to bribe Agent-1 did not go as planned.  CHEN and FENG also discussed that PRC Official-1 was the PRC Government official “in charge” of the bribery scheme targeting the Falun Gong.

As part of this scheme, CHEN and FENG met with Agent-1 in Newburgh, New York, on May 14, 2023.  During the meeting, CHEN gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment.  CHEN further offered to pay Agent-1 a total of $50,000 for opening an audit of Entity-1, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful.  On May 18, 2023, FENG paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme. 

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CHEN, 71, of Chino, California, and FENG, 44, a PRC citizen and resident of Los Angeles, California, each pled guilty to one count of acting as an unregistered agent of a foreign government, which carries a maximum sentence of 10 years in prison, and one count of bribing a public official, which carries a maximum sentence of 15 years in prison.

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

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York and Los Angeles Field Offices and Counterintelligence Division and the Office of the U.S. Treasury Inspector General for Tax Administration.  Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.

The case is being handled by the Office’s White Plains Division and National Security and International Narcotics Unit.  Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock are in charge of the case, with assistance from Trial Attorney Christina Clark of the Counterintelligence and Export Control Section.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that BEVELYN BEATTY WILLIAMS was sentenced to 41 months in prison for violating the Freedom of Access to Clinic Entrances Act (the “FACE Act”) in June 2020 in connection with her interference, including by threats and force, with individuals seeking to obtain and provide lawful reproductive health services at a reproductive health center in Manhattan.  On February 22, 2024, WILLIAMS was convicted after a nine-day jury trial of one count of violating the FACE Act before U.S. District Judge Jennifer L. Rochon, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Bevelyn Beatty Williams repeatedly intimidated and interfered with individuals seeking and providing critical reproductive health services.  She did so by physically blocking access to clinics, threatening staff, and by force.  This Office and our law enforcement partners are committed to ensuring that patients exercising their legal right to obtain reproductive health services, and healthcare facilities and their staff providing those services, can do so without unlawful interference or fear of threats or violence.”

According to evidence admitted at trial and other public filings and statements made in Court:

On June 19, 2020, and June 20, 2020, WILLIAMS threatened and used force against patients and staff members at a reproductive health center located in lower Manhattan (the “Health Center”) and blocked patients and staff members from accessing the Health Center.  In one instance, and as captured on video, WILLIAMS pressed her body against the door of the Health Center’s patient entrance and refused to move, preventing a Health Center volunteer from entering the Health Center.  As a Health Center staff member (“Victim-1”) attempted to open the door for the volunteer, WILLIAMS purposefully leaned against the door, crushing Victim-1’s hand.  Victim-1 yelled, “She’s crushing my hand,” but WILLIAMS remained against the door, trapping Victim-1’s hand and injuring it. 

At various times on June 19 and 20, 2020, WILLIAMS stood directly in front of the Health Center entrances.  WILLIAMS initially blocked the main entrance used by patients, causing the Health Center to have to divert patients to enter through the staff entrance.  WILLIAMS responded by moving to block the staff entrance and directing others to do the same. 

WILLIAMS livestreamed some of her conduct on June 19 and 20, 2020, on a social media account.  On the livestream on June 19, 2020, WILLIAMS stood within inches of the Health Center’s chief administrative officer and threatened to “terrorize this place” and warned that “we’re gonna terrorize you so good, your business is gonna be over mama.”  Similarly, WILLIAMS stood within inches of a Health Center security officer and threatened “war.”  WILLIAMS also stated that she would act by “any means necessary.” 

In addition to WILLIAMS’s conduct in Manhattan, on multiple other occasions from at least 2019 to 2022, WILLIAMS and others intimidated and interfered with individuals seeking to obtain or provide reproductive health services at other health clinics across the country, including in Florida, Tennessee, Georgia, and Brooklyn, New York.  For example, in January 2022, WILLIAMS travelled to a health center in Fort Myers, Florida, where she directed other individuals to block health center entrances.  As a result of the blockade, medical staff was delayed in treating at least a dozen patients, three of whom were scheduled for time-sensitive procedures that could have resulted in bleeding, infection, or significant pain without timely treatment.  In addition, in July 2022, WILLIAMS invaded a health center in Atlanta, Georgia, where she screamed through the door at patients attempting to enter the facility until they were forced to leave.  Among other things, WILLIAMS shouted that she’d go to jail before letting patients enter the facility for an abortion and that she was “not afraid to get arrested.” 

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In addition to the prison term, WILLIAMS, 33, of Ooltewah, Tennessee, was sentenced to two years of supervised release.

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

The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Emily A. Johnson, Mitzi Steiner, and Jamie Bagliebter, with the assistance of Paralegal Specialist Isabel Loftus, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York; Christopher A. Scharf, the Special Agent in Charge of the Northeast Region of the U.S. Department of Transportation, Office of the Inspector General (“DOT-OIG”); and Daniel Cort, the Inspector General of the Metropolitan Transportation Authority (“MTA-IG”), announced that international bus parts supplier CBM entered into a non-prosecution agreement (the “NPA”) with the U.S. Attorney’s Office.  Under the NPA, CBM agreed to pay significant monetary penalties for engaging in a scheme to defraud U.S. transit authority customers through false and misleading statements about the sources of contracted-for bus parts during the period from approximately 2010 to April 2021.  Specifically, the NPA requires CBM to forfeit $463,243.41 to the United States, representing its profits from the scheme, and pay a fine of $1,500,000.  In addition, CBM has agreed to pay restitution to victims who submit claims and to revert unclaimed funds up to $438,859.52 to the Crime Victims Fund, administered by the Department of Justice’s Office for Victims of Crime.  The NPA also requires that for at least two years from the date of the agreement, CBM will further cooperate with the United States, self-report any future violations of U.S. law, and continue its ongoing efforts to implement and maintain an adequate compliance program.  In the event that CBM violates the NPA, the U.S. Attorney’s Office may prosecute CBM for any newly discovered criminal activity and for the conduct that gives rise to the NPA.

This corporate action reflects a careful weighing of factors relevant to the appropriate corporate resolution.  The NPA recognizes that, although CBM’s serious misconduct was reported to the U.S. Attorney’s Office before CBM self-disclosed it, (i) CBM US cooperated extensively with the U.S. Attorney’s Office, including through detailed disclosures and accountings of conduct not already known when CBM’s cooperation began; (ii) the most serious wrongdoing at CBM was limited to two individuals, though they were at the highest levels of the company; (iii) CBM has no history of criminal conduct, including any resolved through prior NPAs or deferred prosecution agreements; (iv) CBM has undertaken extensive remedial measures to ensure that similar conduct does not occur or go undetected in the future; and (v) CBM has taken full responsibility and agreed to make full restitution to all victims that seek compensation.

U.S. Attorney Damian Williams said: “CBM, primarily through the actions of a limited number of managers outside of the United States, represented to U.S. transit authorities that CBM was providing bus parts from specific suppliers and under specific brand names.  Fortunately, none of the transactions at issue involved parts that bear on the safety of any affected buses.  Since this Office’s investigation came to CBM’s attention, the company has cooperated fully and taken significant and commendable steps to remediate the institutional failures that allowed this situation to occur in the first place.  But this NPA also ensures that CBM is held financially accountable for its conduct and that victims will be made whole.  It should serve as a reminder to all companies that it will lose its profits, and then some, when this Office becomes aware of business practices like CBM’s in this case.”

DOT-OIG Special Agent in Charge Christopher A. Scharf said: “This NPA is an important step in remedying the harm caused by CBM when it misled U.S. transit authority customers.  DOT OIG remains committed to holding transportation industry suppliers accountable for their actions that compromise the integrity of contracted goods and services.”

MTA Inspector General Daniel Cort said: "The MTA must have faith in the integrity of its supply chain, and any breach of that trust is unacceptable.  I thank our federal partners for holding vendors accountable for deceptive behavior."

As part of the NPA, CBM agreed to a statement of facts describing its conduct and the remedial measures that it took in response to learning of that conduct.

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Mr. Williams praised the outstanding investigative work of the DOT-OIG and thanked the MTA-IG for its assistance.  

This matter is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorney Frank Balsamello is in charge of the matter.

Damian Williams, the United States Attorney for the Southern District of New York, announced that KONRAD BICHER was sentenced today by U.S. District Judge Lorna G. Schofield to 51 months in prison in connection with his fraudulent operation of real estate businesses, including by entering into lease agreements for residential apartment units in Manhattan on false and fraudulent pretenses and by making false statements to obtain loans guaranteed by the U.S. government.  BICHER previously pled guilty to one count of wire fraud in connection with the scheme.

U.S. Attorney Damian Williams said: “For years, Bicher schemed to defraud New York City landlords and the U.S. Government.  Bicher enriched himself by abusing Government programs and tenant protections intended to benefit people and businesses in need during one of the worst economic and public health crises in history.  He bragged about his schemes to his friends and the media, proudly referring to himself as the ‘Wolf of Airbnb,’ but as today’s sentence underscores, those who partake in such callous and fraudulent conduct will answer for their crimes, no matter their self-given title.”

According to the allegations in the Complaint, Indictment, other court documents, and statements made in Court:

Beginning in at least February 2019, BICHER and/or individuals working in concert with BICHER, began renting apartment units (the “Units”) in Manhattan.  The Units were leased pursuant to lease agreements which required that the lessee make monthly rental payments and also included clauses that prohibited the lessee from renting the Units to third parties on a short-term basis and/or included clauses that prohibited the lessee from subletting the Units to third parties without written consent of the owner.  Despite the requirement to make monthly rental payments, BICHER failed to make payments as required by the lease agreements.  For many of the Units, BICHER also refused to vacate the Units after the expiration of the lease agreements.  During the period of time that BICHER failed to make required rental payments, including the period of time after a lease agreement expired and the premises had not been vacated, BICHER derived income by renting the Units on a short-term basis, including by posting the Units for rent on various online marketplaces, including Airbnb, Inc. (“Airbnb”). 

Between in or about July 2019, and in or about April 2022, BICHER and his associates failed to make more than $1,000,000 in payments pursuant to the Lease Agreements or, for the period of time after the expiration of the Lease Agreements, based on the estimated fair market value for the Units.  During this period, BICHER caused the Units to be listed for short-term rent on Airbnb and at least one other online marketplace for short-term rentals, resulting in at least $1,170,000 in rental income to BICHER and his associates.

Throughout the course of this scheme, the lessors of the Units made numerous efforts to recover rental payments from BICHER and/or to stop BICHER from continuing to rent the Units on a short-term basis, including by initiating civil litigation against BICHER.  BICHER relied on legal protections intended to benefit tenants, including tenant protections adopted in connection with the COVID-19 pandemic, in order to oppose the lawsuits.  Despite relying on tenant protections for New Yorkers in need, BICHER continued to generate revenue by renting certain Units on a short-term basis. 

In addition, between at least in or about April 2021, until in or about July 2021, BICHER obtained Government-guaranteed loans through a loan program of the U.S. Small Business Administration designed to provide relief to small businesses during the COVID-19 pandemic, namely the Paycheck Protection Program (“PPP”).  In furtherance of this scheme, BICHER submitted at least four applications for PPP loans on behalf of at least three entities and obtained over $565,000 in loan proceeds.  These PPP applications contained fraudulent documents and false information.  For example, in connection with the PPP applications, BICHER submitted tax documents which were purportedly filed with the Internal Revenue Service (“IRS”).  These documents were falsified, in that the entities seeking PPP loans had not actually filed the purported tax returns with the IRS, and BICHER had not otherwise reported the purported income to the IRS.

During the course of the scheme, BICHER referred to himself as the “Wolf of Airbnb” and explained to media outlets that this nickname referred to the fact that he was “hungry and ruthless enough to get on top of the financial ladder” and had the “ferocity…of a wolf, because wolves are territorial, vicious, and show no mercy when provoked.”

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In addition to the prison term, BICHER, 32, of Hialeah, Florida, was sentenced to three years of supervised release.  He was additionally ordered to forfeit $1,740,407.12 and pay restitution in the amount of $2,227,371.58. 

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 Matthew Weinberg is in charge of the prosecution.

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 that ANTHONY ALFANO was arrested after he made a series of graphic and violent threats to kill U.S. Postal Service (“USPS”) employees and burn down U.S. post offices in Ossining, New York.  ALFANO was arrested in Yorktown Heights, New York, this morning and is expected to appear this afternoon in White Plains federal court before U.S. Magistrate Judge Victoria Reznik.

U.S. Attorney Damian Williams said: “The charges against the defendant underscore this Office’s unwavering commitment to swiftly collaborate with our law enforcement partners to neutralize threats against the U.S. mail system.  Any individual who dares to cross the line and threaten our postal employees and facilities with violence and destruction will be stopped in their tracks, and we will ensure they are held accountable for their actions.”

USPIS Inspector in Charge Daniel B. Brubaker said: “The U.S. Postal Inspection Service does not take lightly any threats of violence against USPS employees.  This behavior will never be tolerated, and we will work with our local and federal law enforcement partners to maintain a safe working environment for the postal employees we protect.  That is our mission, and that is our unwavering commitment to the people we serve.”

As alleged in the Complaint:[1]

On Saturday, June 22, 2024, ANTHONY ALFANO was awaiting the delivery of a parcel that had been mailed out via USPS from Florida the evening before.  According to ALFANO, the parcel contained cremated remains.  In a series of phone calls with USPS call center representatives before the package was scheduled to arrive, ALFANO threatened to kill USPS employees and burn down U.S. post offices because he apparently believed the parcel was not going to arrive when he wanted it to.  ALFANO’s threats included the following:

• ALFANO threatened, “I am gonna start killing you guys one by one.”  He also said, “people are going to die,” and that there would be “a lot of dead bodies,” “hurt people,” and people who would “not be returning home.”  ALFANO also swore to kill his local mail carrier, stating that he would “walk up to him” and “blow his brains out.”  Referencing a notorious “massacre,” ALFANO warned that it would not “have shit on what I’m about to do” and that his actions would go down “in history.”

• ALFANO also made threats to kill members of the postal police by using incendiary ammunition, as well as threats to burn down U.S. post offices.  For example, he welcomed the arrival of the postal police and said, “as soon as they show up at my door they’re gonna catch a hot one,” referring to shooting them with a “napalm round” from his 12-gauge shotgun.  “I’m going to kill every one of those motherfuckers,” he said.  He further threatened, “I’m gonna burn all the post offices down to the ground” and said he would go to his local post office and “burn it down to the fucking ground.”

Underscoring his commitment to carry out his threats, ALFANO said several times, “I don’t make threats, I make promises.”  He also expressly swore to carry out his threats and said, “I really don’t care if I go to jail or not.”

On Monday, June 24, 2024, ALFANO received his parcel on the next business day after it had been mailed out on the Friday before.

ALFANO has a history of encounters with law enforcement because of prior threats he has made against others, including local police officers, delivery persons, and customer service representatives.

*                *                *

ANTHONY ALFANO, 46, of Ossining, New York, is charged with threatening interstate communications, which carries a maximum sentence of five years in prison, and willfully making a threat involving fire, which carries a maximum sentence of 10 years in prison.

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

Mr. Williams praised the outstanding work of the USPIS in investigating the threats charged in the Complaint and undertaking security measures to protect USPS employees and facilities.  Mr. Williams also thanked the Village of Ossining Police Department and City of Peekskill Police Department for their assistance in this case.

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced today the unsealing of a Complaint charging MIGUEL DE JESUS REYES MEDINA a/k/a “Azua,” and ERIK ALBERTO LOPEZ VALDEZ with conspiracy to distribute fentanyl and distribution of protonitazene, a novel synthetic opioid that is up to three times more potent than fentanyl.  REYES MEDINA and LOPEZ VALDEZ were arrested today.  LOPEZ VALDEZ will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger, and REYES MEDINA will be presented before Judge Lehrburger tomorrow, July 19, 2024.

U.S. Attorney Damian Williams said: “As alleged, Miguel de Jesus Reyes Medina and Erik Alberto Lopez Valdez engaged in a scheme to sell dangerous narcotics to New Yorkers, including a novel, and potentially lethal, synthetic opioid.  As part of that scheme, the defendants sold protonitazene, which, as alleged, is as much as three times more deadly than fentanyl.  This prosecution underscores my Office’s unwavering commitment to protecting our communities from the deadly opioid crisis, including from emergent synthetic opioids that pose even greater threats than fentanyl.  We will not allow drug dealers to hide behind novel changes to the chemical structure of drugs to avoid prosecution.”

DEA Special Agent in Charge Frank A. Tarentino III said: “Today’s arrests show the commitment the DEA and our law enforcement partners have in targeting those poisoning our communities.  As alleged, these individuals are not only responsible for the distribution of the lethal drug fentanyl, but the distribution of protonitazene, a novel synthetic opioid that is up to three times more potent than fentanyl.  It is safe to say that the removal of these individuals, and the distribution of these illicit drugs from our streets, saved another family from having to bury their loved one.  The DEA and members of our NYDETF remain committed to doing everything we can to bring those responsible to justice.”

As alleged in the Complaint:[1]

In or about April 2024, REYES MEDINA agreed to sell fentanyl to a confidential source (the “Source”) working with law enforcement.  REYES MEDINA negotiated the price and quantity of fentanyl to be provided, requesting $2,000 for 74 grams of fentanyl.  On or about April 10, 2024, REYES MEDINA met with the Source and provided a 74-gram package of narcotics.  During the meeting, REYES MEDINA emphasized that the narcotics were high quality and strong.  Then, on or about April 16, 2024, REYES MEDINA arranged to have LOPEZ VALDEZ deliver a further 420-gram package of narcotics to the Source for the price of $12,250, which LOPEZ VALDEZ did.  Following the arrest of REYES MEDINA and LOPEZ VALDEZ, laboratory testing determined that the packages of narcotics provided to the Source by REYES MEDINA and LOPEZ VALDEZ consisted of nearly 500 grams of protonitazene, a synthetic opioid that is up to three times more potent than fentanyl.

*                *                *

REYES MEDINA, 49, of Yonkers, New York, is charged with one count of conspiracy to distribute fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and two counts of distribution of protonitazene, each of which carry a maximum sentence of 20 years in prison. 

LOPEZ VALDEZ, 38, of Camden, New Jersey, is charged with one count of conspiracy to distribute fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and one count of distribution of protonitazene, which carries a maximum sentence of 20 years in prison. 

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

Mr. Williams praised the outstanding work of the DEA, the New York City Police Department, and the New York State Police in connection with this investigation.

The prosecution is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney William C. Kinder is in charge of the prosecution.

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

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

Maxim Marchenko, 52, was sentenced today to three years in prison followed by three years of supervised release for his role in procuring dual-use, military grade OLED micro-displays for Russian end users.

“Today’s sentence holds Mr. Marchenko accountable for his role in a procurement syndicate that funneled U.S.-manufactured military-grade microelectronics to end users in Russia, illegally delivering controlled technologies worth hundreds of thousands of dollars,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department remains relentlessly focused on dismantling illicit procurement networks led by individuals like the defendant, who use their business skills and connections to advance the Russian war agenda.”

“The transshipment of military-grade microelectronics through Hong Kong to Russia helps fuel the engine of Russia’s war machine,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “Today’s sentencing is just the latest example of our unceasing efforts to target and disrupt illegal Russian procurement networks.”

“This office will stop at nothing to hold accountable those who seek to circumvent our laws to gain access to some of our most sensitive technologies,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s sentence should be a reminder that no number of shell companies or obfuscation will stop this office in its pursuit of those who seek to illicitly gain access to controlled technologies.” 

“Marchenko and his co-conspirators operated an international smuggling network of sensitive microelectronics used in military gear and other weapons systems,” said Executive Assistant Director Robert Wells of the FBI National Security Branch. “Today’s sentencing demonstrates the FBI’s resolve in doing our part to protect national security and prevent American military technology from being diverted to foreign adversaries and hostile nation states.”

According to court documents, Marchenko is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (Alice Components), Neway Technologies Limited (Neway) and RG Solutions Limited (RG Solutions). Marchenko and two co-conspirators, who are also Russian nationals, operate an illicit procurement network in Russia, Hong Kong and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, Marchenko and his co-conspirators used shell companies based in Hong Kong and other deceptive means to conceal from U.S. government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that Marchenko and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night vision goggles, thermal optics and other weapon systems.

To perpetrate the scheme, Marchenko and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using Marchenko’s Hong Kong-based shell companies, including Alice Components, Neway and RG Solutions. Members of the conspiracy, including Marchenko, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong and other countries outside of Russia for use in electron microscopes for medical research or hunting rifles. In reality, the OLED micro-displays were destined for end users in Russia. Marchenko and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.

To conceal the fact that these OLED micro-displays were destined for Russia, Marchenko and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by Marchenko in third countries, such as Hong Kong. Marchenko then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, Marchenko and other members of the conspiracy used Hong Kong-based shell companies, principally operated by Marchenko, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, Marchenko’s shell companies funneled more than $1.6 million to the United States in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.

The FBI, Commerce Department’s Bureau of Industry and Security and Department of State’s Diplomatic Security Service investigated the case with assistance from the Justice Department’s Office of International Affairs.

Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah for the Southern District of New York prosecuted the case, with assistance from Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section.

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.

Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; Matthew S. Axelrod, the Assistant Secretary of Export Enforcement for Department of Commerce’s the Bureau of Industry and Security (“BIS”); and Robert Wells, the Executive Assistant Director of the National Security Branch of the Federal Bureau of Investigation (“FBI”), announced that MAXIM MARCHENKO was sentenced today by U.S. District Judge Nelson S. Román to three years in prison for his role in procuring dual-use, military grade OLED micro-displays for Russian end users.  MARCHENKO previously pled guilty to money laundering and smuggling charges before U.S. Magistrate Judge Victoria Reznik on February 29, 2024. 

U.S. Attorney Damian Williams said: “This Office will stop at nothing to hold accountable those who seek to circumvent our laws to gain access to some of our most sensitive technologies.  Today’s sentence should be a reminder that no number of shell companies or obfuscation will stop this Office in its pursuit of those who seek to illicitly gain access to controlled technologies.” 

Assistant Attorney General Matthew G. Olsen said: “Today’s sentence holds Mr. Marchenko accountable for his role in a procurement syndicate that funneled U.S.-manufactured military-grade microelectronics to end users in Russia, illegally delivering controlled technologies worth hundreds of thousands of dollars.  The Justice Department remains relentlessly focused on dismantling illicit procurement networks led by individuals like the defendant, who use their business skills and connections to advance the Russian war agenda.”

BIS Assistant Secretary of Export Enforcement Matthew S. Axelrod said: “The transshipment of military-grade microelectronics through Hong Kong to Russia helps fuel the engine of Russia’s war machine.  Today’s sentencing is just the latest example of our unceasing efforts to target and disrupt illegal Russian procurement networks.”

FBI Executive Assistant Director Robert Wells said: “Marchenko and his co-conspirators operated an international smuggling network of sensitive microelectronics used in military gear and other weapons systems.  Today’s sentencing demonstrates the FBI’s resolve in doing our part to protect national security and prevent American military technology from being diverted to foreign adversaries and hostile nation states.”

According to the allegations contained in the Information and other filings and statements made in court:

MAXIM MARCHENKO is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (“Alice Components”), Neway Technologies Limited (“Neway”), and RG Solutions Limited (“RG Solutions”).  MARCHENKO and two co-conspirators (“CC-1” and “CC-2”), who are also Russian nationals, operate an illicit procurement network in Russia, Hong Kong, and elsewhere overseas.  This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users.  To carry out this scheme, MARCHENKO, CC-1, and CC-2 used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia.  The technology that MARCHENKO and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night vision goggles, thermal optics, and other weapon systems.

To perpetrate the scheme, MARCHENKO and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using MARCHENKO’s Hong Kong-based shell companies, including Alice Components, Neway, and RG Solutions.  Members of the conspiracy, including MARCHENKO, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong, and other countries outside of Russia for use in electron microscopes for medical research or hunting rifles.  In reality, the OLED micro-displays were destined for end users in Russia.  MARCHENKO and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.

To conceal the fact that these OLED micro-displays were destined for Russia, MARCHENKO and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by MARCHENKO in third countries, such as Hong Kong.  MARCHENKO then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia.  In addition, MARCHENKO and other members of the conspiracy used Hong Kong-based shell companies, principally operated by MARCHENKO, to conceal the fact that payments for the OLED micro-displays were coming from Russia.  In total, between in or about May 2022 and in or about August 2023, MARCHENKO’s shell companies funneled more than $1.6 million to the U.S. in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.

*                *                *

In addition to the prison term, MARCHENKO, 52, a Russian citizen who resided in Hong Kong, was sentenced to three years of supervised release.

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 BIS.  Mr. Williams also thanked the FBI’s Legal Attaché office in Australia; the U.S. Department of State’s Diplomatic Security Service; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; and the Office of International Affairs of the Department of Justice’s Criminal Division for their assistance.

This case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah are in charge of the prosecution, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section.

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.

Damian Williams, the United States Attorney for the Southern District of New York, announced that NIKOLAY LEVINSON was sentenced today to 26 months in prison for mailing threatening communications.  LEVINSON previously pled guilty before U.S. District Judge Edgardo Ramos, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “Nikolay Levinson sent vile racist, anti-Semitic, and anti-Muslim threats for the sole purpose of instilling fear in innocent members of our community.  This sentence should serve as a reminder that we will never stop protecting the community from such disturbing, hateful conduct.”   

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

From June through November 2022, shortly after his release from prison for similar offenses, LEVINSON mailed six threatening letters to five victims in the Bronx, Manhattan, and Brooklyn, New York, and at least 35 other anonymous, threatening, hateful, racist, anti-Semitic, and anti-Muslim letters to victims in the greater New York City area.  LEVINSON sent the letters, which often contained racial epithets and Nazi imagery, to businesses, schools, synagogues, and individuals.

*                *                *

In addition to the prison term, LEVINSON, 41, of Palisades Park, New Jersey, was sentenced to three years of supervised release.

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

The case is being prosecuted by the Office’s White Plains Division and Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.

Note: View the indictment here.

Sue Mi Terry, 54, of New York, New York, was arrested yesterday and presented on criminal charges related to offenses under the Foreign Agents Registration Act (FARA).

According to court documents, after leaving U.S. government service and for more than a decade, Terry worked as an agent of the government of the Republic of Korea (ROK), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, Terry publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers and enabled ROK officials to gain access to U.S. government officials. In exchange for these actions, ROK intelligence officers provided Terry with luxury goods, expensive dinners and more than $37,000 in funding for a public policy program focusing on Korean affairs that Terry controlled.

From in or about 2001 to in or about 2011, Terry served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan and Oceanic Affairs for the White House National Security Council and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, Terry has worked at academic institutions and think tanks in New York City and Washington, D.C. Terry has made media appearances, published articles and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea and various regional issues impacting Asia. Terry has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea.

As she admitted in a voluntary interview with the FBI in 2023, Terry served as a valuable “source” of information for the ROK National Intelligence Service (ROK NIS), the primary intelligence agency for the ROK. For example, in or about June 2022, Terry participated in a private, off-the-record group meeting with a U.S. Secretary level official regarding the U.S. Government’s policy toward North Korea. Immediately after the meeting, Terry’s primary ROK NIS point of contact, or handler, picked up Terry in a car with ROK Embassy diplomatic plates. While in the car, Terry passed her handler detailed handwritten notes of her meeting, which were written on the letterhead of a think tank where Terry had recently worked. Terry’s handler then photographed the notes while still sitting in the car with Terry.

Weeks later, at the request of her ROK NIS handler, Terry hosted a happy hour for Congressional staff. Although the happy hour was ostensibly on behalf of the think tank where Terry worked, the ROK NIS paid for it with Terry’s knowledge. Terry’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer. 

ROK government rewarded Terry for her services. For example, Terry’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which Terry selected during shopping trips with her handlers. One of Terry’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat. In addition to luxury goods, Terry’s ROK NIS handlers provided her expensive meals, including at Michelin-starred restaurants. Terry’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that Terry controlled at the think tank where she worked. In addition, ROK government officials paid Terry to write articles in both the U.S. and Korean press conveying positions and phrases dictated by the ROK government.

Terry is charged with one count of conspiracy to violate FARA and one count of failure to register under FARA. If convicted, she faces a maximum penalty of 10 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 R. Wells of the FBI’s National Security Branch made the announcement. 

The FBI’s Counterintelligence Division and New York Field Office are investigating the case with assistance from the FBI Washington Field Office.

Assistant U.S. Attorneys Kyle A. Wirshba, Alexander Li and Sam Adelsberg for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.

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, 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 yesterday charging SUE MI TERRY with offenses under the Foreign Agents Registration Act (“FARA”).  TERRY was arrested on July 16, 2024, in New York, New York, and presented before U.S. Magistrate Judge Robert W. Lehrburger.  The case is assigned to U.S. District Judge Lorna G. Schofield.

U.S. Attorney Damian Williams said: “As alleged, Sue Mi Terry, a former CIA and White House employee, subverted foreign agent registration laws in order to provide South Korean intelligence officers with access, information, and advocacy.  Terry allegedly sold out her positions and influence to the South Korean government in return for luxury handbags, expensive meals, and thousands of dollars of funding for her public policy program.  The charges brought should send a clear message to those in public policy who may be tempted to sell their expertise to a foreign government to think twice and ensure you are in accordance with the law.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: “Compromising national security endangers every American by weakening our defenses and putting lives at risk.  Sue Mi Terry, a former CIA and White House official, was arrested for allegedly acting as an unregistered agent for South Korea.  For over a decade, despite repeated warnings, Terry allegedly exploited her think tank roles to advance a foreign agenda.  As alleged, she disclosed sensitive U.S. government information to South Korean intelligence and used her position to influence U.S. policy in favor of South Korea… for money and luxury gifts.  Her alleged actions posed a severe threat to national security.  This arrest sends a clear message: the FBI will pursue and arrest anyone who endangers our nation’s security by collaborating with foreign spies.”

As alleged in the Indictment:[1] 

After leaving U.S. government service and for more than a decade, TERRY worked as an agent of the government of the Republic of Korea (“ROK”), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law.  As covertly directed by ROK government officials, TERRY publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers, and enabled ROK officials to gain access to U.S. government officials.  In return for these actions, ROK intelligence officers provided TERRY with luxury goods, expensive dinners, and more than $37,000 in funding for a public policy program focusing on Korean affairs that TERRY controlled. 

From in or about 2001 to in or about 2011, TERRY served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan, and Oceanic Affairs for the White House National Security Council, and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council.  Since leaving government service in or about 2011, TERRY has worked at academic institutions and think tanks in New York City and Washington, D.C.  TERRY has made media appearances, published articles, and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea, and various regional issues impacting Asia.  TERRY has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea. 

Since leaving U.S. government service, TERRY served as a valuable source of information for the ROK National Intelligence Service (“ROK NIS”), the ROK’s primary intelligence agency.  For example, in or about June 2022, TERRY participated in a private, off-the-record group meeting with the U.S. Secretary of State regarding the U.S. government’s policy toward North Korea.  Immediately after the meeting, TERRY’s primary ROK NIS point of contact, or “handler,” picked up TERRY in a car bearing ROK Embassy diplomatic license plates.  While in the car, TERRY provided her handler detailed handwritten notes of her meeting with the U.S. Secretary of State.  TERRY’s handler photographed the notes while sitting in the car with TERRY. 

Weeks later, at the request of her ROK NIS handler, TERRY hosted a happy hour for Congressional staff.  Although the happy hour was under the auspices of the think tank where TERRY worked, the ROK NIS paid for it with TERRY’s knowledge.  TERRY’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer. 

The ROK government rewarded TERRY for her services.  For example, TERRY’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which TERRY selected during shopping trips with her handlers.  One of TERRY’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat.  

In addition to luxury goods, TERRY’s ROK NIS handlers provided her with expensive meals, including at Michelin-starred restaurants.  TERRY’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that TERRY controlled at the think tank where she worked.  In addition, ROK government officials paid TERRY to write articles in both the U.S. and Korean press conveying positions and phrases provided by the ROK government. 

*                *                *

TERRY, 54, of New York, New York, has been charged with one count of conspiracy to violate FARA, which carries a maximum sentence of five years in prison, and one count of failure to register under FARA, which carries a maximum sentence of five 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 outstanding investigative work of the Counterintelligence Division of the FBI’s New York Field Office.  Mr. Williams also thanked the Counterintelligence Division and Foreign Influence Task Force of FBI Headquarters, the Mission Services and Counterintelligence Divisions of the FBI’s Washington Field Office, the Amtrak Police Department, 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 Sam Adelsberg, Alexander Li, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.

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.

U.S. Attorney Damian Williams said: “Moments ago, a jury convicted Senator Robert Menendez of corruption offenses.  This case has always been about shocking levels of corruption.  Hundreds of thousands of dollars of bribes, including gold, cash, and a Mercedes-Benz.  This wasn’t politics as usual; this was politics for profit.  Because Senator Menendez has now been found guilty, his years of selling his office to the highest bidder have finally come to an end.  Corruption isn’t costless: it erodes public trust, and it undermines the rule of law.  That’s why we’re so committed to fighting it, regardless of political party.  I want to thank the career prosecutors and law enforcement agents who meticulously investigated and prosecuted this case.  Their work brought this egregious corruption to light.  They are the best of the best, and I am enormously proud to serve with them.” 

*                *                *

ROBERT MENENDEZ, 70, of Englewood Cliffs, New Jersey; WAEL HANA, 40, of Edgewater, New Jersey, and originally of Egypt; and FRED DAIBES, 66, of Edgewater, New Jersey, were convicted of the charges listed in the chart below. 

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by Judge Stein.  Sentencing for MENENDEZ, HANA, and DAIBES has been scheduled for October 29, 2024.  

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.  Mr. Williams also thanked the Internal Revenue Service, Criminal Investigation for its invaluable assistance on the investigation and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for its support of the case.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Eli J. Mark, Paul Monteleoni, Lara Pomerantz, Daniel C. Richenthal, and Catherine Ghosh, and Special Assistant U.S. Attorney Christina Clark, are in charge of the prosecution, with the assistance of Paralegal Specialists Connor Hamill, Rachel Wechsler, and Braden Florczyk.

Count

Defendant(s)

Charge

Potential Maximum Prison Term

1

MENENDEZ

HANA

DAIBES

Conspiracy to commit bribery

Five years 

2

MENENDEZ

HANA

DAIBES

Conspiracy to commit honest services wire fraud

20 years

3

MENENDEZ

Conspiracy to commit extortion under color of official right

20 years 

4

MENENDEZ

DAIBES

Conspiracy to commit obstruction of justice

5 years

5

MENENDEZ

Bribery – actions to benefit Wael Hana and Egypt

15 years

6

HANA

DAIBES

Bribery – actions to benefit Wael Hana and Egypt

15 years

7

MENENDEZ

HANA

DAIBES

Honest services wire fraud - actions to benefit Wael Hana and Egypt

20 years

8

MENENDEZ

Extortion under color of official right – actions to benefit Wael Hana and Egypt

20 years

9

MENENDEZ

HANA

Honest services wire fraud - actions to benefit Jose Uribe and Uribe’s Associates

20 years

10

MENENDEZ

Extortion under color of official right – actions to benefit Jose Uribe and Uribe’s Associates

20 years 

11

MENENDEZ

Bribery – actions to benefit Fred Daibes and Qatar

15 years 

12

DAIBES

Bribery – actions to benefit Fred Daibes and Qatar

15 years

13

MENENDEZ

DAIBES

Honest services wire fraud – actions to benefit Fred Daibes and Qatar

20 years

14

MENENDEZ

Extortion under color of official right – actions to benefit Fred Daibes and Qatar

20 years

15

MENENDEZ

HANA

Conspiracy for a public official to act as a foreign agent

Five years

16

MENENDEZ

Public official acting as a foreign agent

Two years

17

MENENDEZ

Conspiracy to commit obstruction of justice

Five years

18

MENENDEZ

Obstruction of justice

10 years 

“Miles Guo, an exiled Chinese businessman and purported billionaire, brazenly operated several interrelated fraud schemes, all designed to fleece his loyal followers out of their hard-earned money so that Guo could spend his days in his 50,000 square foot mansion, driving his $1 million Lamborghini, or lounging on his $37 million yacht.  Thousands of Guo’s online followers were victimized so that Guo could live of a life of excess.  Today, Guo’s schemes have been put to an end.  Moments ago, a unanimous jury found Miles Guo guilty of racketeering conspiracy and various securities fraud, wire fraud, and money laundering charges.  He faces decades in prison.  I commend the career prosecutors of this Office and our law enforcement partners for bringing this case and seizing hundreds of millions of dollars’ worth of fraud proceeds so that justice can be brought to Guo’s victims.  This Office will not waver in our dedication to prosecuting malicious and harmful fraud schemes.”

Damian Williams, the United States Attorney for the Southern District of New York, announced today that VITALY FARGESEN and IGOR PALATNIK were sentenced to 4 years and 78 months in prison, respectively, by U.S. District Judge Loretta A. Preska for participating in a fraudulent scheme to defraud investors in CanaFarma Corp. and, later, CanaFarma Hemp Products Corp. (together, “CanaFarma”), by soliciting funds based upon false and misleading representations, failing to invest investor’s funds as promised, and secretly misappropriating millions of dollars of CanaFarma funds.  PALATNIK was sentenced on January 11, 2024, and FARGESEN was sentenced today.

U.S. Attorney Damian Williams said: “Vitaly Fargesen and Igor Palatnik orchestrated a sophisticated scheme to obtain millions of dollars from investors by falsely pledging to spend their funds building a legitimate business.  Instead, Fargesen and Palatnik deceived investors about the nature of their business and kept millions of dollars of investor funds for their own personal use.  After they were charged, Fargesen and Palatnik attempted to escape accountability by obstructing this Office’s investigation of their crimes.  Today’s sentence should serve as a reminder that if you steal from investors and cover up your crimes, you will pay a steep price.”

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

From in or about March 2019 to in or about March 2020, CanaFarma was a privately held Delaware corporation with offices in New York, New York.  Beginning on or about March 19, 2020, CanaFarma was listed on the Canadian Stock Exchange, and beginning on or about March 23, 2020, CanaFarma was listed on the Frankfurt Stock Exchange.  CanaFarma marketed itself to the investors as a “fully integrated cannabis company addressing the entire cannabis spectrum from seed to delivery of consumer products.”  To the public, FARGESEN was held out as Senior Vice President of Strategic Planning and PALATNIK as Senior Vice President of Product Acquisition at CanaFarma.  In truth, the two men exercised full control of CanaFarma but hid their control from the investing public by, among other things, convincing an experienced businessman to falsely present himself to the market as the CEO of the company.

Using their control of CanaFarma, FARGESEN and PALATNIK devised and carried out a scheme to defraud CanaFarma’s investors by soliciting approximately $14 million in funds, including investments in private shares of CanaFarma, with false and misleading representations concerning the company’s management, products, and financials; failing to invest investor’s funds as promised; and secretly misappropriating at least $4 million of CanaFarma funds for their own benefit.  FARGESEN and PALATNIK effectuated the scheme by, among other things, controlling CanaFarma through a nominal CEO who reported to FARGESEN and PALATNIK, lying to investors regarding CanaFarma’s actual and anticipated operations, attempting to artificially inflate CanaFarma’s reported revenue, making false statements to CanaFarma’s auditors, and misappropriating millions of dollars of investor funds.

*                *                *

In addition to the prison sentence, FARGESEN, 54, of Manalapan, New Jersey, and PALATNIK, 49, of Morganville, New Jersey, were each ordered to forfeit $1,733,000 and to pay restitution in the amount of $4,703,915.26.

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

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Margaret Graham, Adam Hobson, and Sarah Mortazavi are in charge of the prosecution.

“Moments ago, a unanimous jury found Sung Kook ‘Bill’ Hwang and Patrick Halligan guilty of a massive market manipulation scheme via the private investment firm Archegos.  As the evidence at trial has shown, Hwang, founder and owner of Archegos, and Halligan, Archegos’s Chief Financial Officer, made false assurances and lied to Wall Street investment banks to induce them to provide capital to Archegos, which Hwang and Halligan then used to inflate the stock prices of several publicly traded companies.  Hwang and Halligan lied about Archegos’s positions in these companies and just about every other materially important metric investment banks would use in determining the firm’s creditworthiness.  In doing so, Hwang and Halligan were able to fraudulently inflate a $1.5 billion portfolio into a $36 billion portfolio.  This verdict should send a resounding message that this Office will continue to police the financial markets with an eagle eye and swiftly hold accountable those who think they can cheat the system.”

Damian Williams, the United States Attorney for the Southern District of New York, announced that YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN were sentenced yesterday to 14 years, 14 years, and 12 years in prison, respectively, for child sexual exploitation and kidnapping offenses.  The defendants, leaders of an extremist religious sect called Lev Tahor, masterminded a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York.  The defendants then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband” to allow him to continue his illegal sexual relationship with Minor-1.  The defendants were convicted in March 2024 following a five-week jury trial before U.S. District Judge Nelson S. Román. 

U.S. Attorney Damian Williams said: “The sentencing of the Weingarten brothers holds them accountable for kidnapping children from their mother in the middle of the night, including for the purpose of coercing a child into a sexual relationship with an adult.  This Office will do everything in its power to protect children and use every available tool to investigate and prosecute those who sexually exploit them.”

 According to the allegations contained in the Superseding Indictment, other court filings, and the evidence presented at trial:

The WEINGARTEN brothers—YAKOV, SHMIEL, and YOIL—are U.S. citizens and senior leaders of Lev Tahor, an extremist religious sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala.  Lev Tahor leaders, including the WEINGARTENs, embraced several extreme practices, including forced family separations, child marriages, and underage sex.

In or about 2017, Lev Tahor leaders arranged for a 12-year-old girl, Minor-1, to be “married” to a then-18-year-old man.  Though they were never legally married, they were religiously “married” the following year, when Minor-1 was 13 and her “husband” was 19.  Lev Tahor leadership, including the WEINGARTENs, required young brides such as Minor-1 to have sex with their husbands, to tell people outside Lev Tahor that they were not married, and to lie about their ages.  For example, Lev Tahor leaders instructed child brides to deliver babies inside their homes instead of at a hospital to conceal the mothers’ young ages from outsiders.

In or about October 2018, the mother of Minor-1 determined that it was no longer safe for her children to remain in the Lev Tahor community, which was then living in Guatemala.  The mother escaped from the group’s compound, arrived in the U.S. in early November 2018, and was eventually joined by all six of her children, including Minor-1.  Also in November 2018, a Brooklyn family court granted her sole custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.

After the mother fled and settled in New York with her children, the WEINGARTENs and their co-conspirators devised a plan to kidnap Minor-1, then 14 years old, to return her to Guatemala and to her then-20-year-old “husband.”  In December 2018, they kidnapped Minor-1 and her brother in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico.  In order to carry out the kidnapping, the defendants used disguises, aliases, drop phones, fake travel documents, and an encrypted application.  At the time of the kidnapping, Lev Tahor leaders were seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran. 

Following a three-week search involving hundreds of local, federal, and international law enforcement entities, Minor-1 and Minor-2 were recovered in Mexico and returned to New York.  In or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap the children but were unsuccessful.

*                *                *

In addition to the prison terms, YAKOV WEINGARTEN, 34, SHMIEL WEINGARTEN, 28, and YOIL WEINGARTEN, 36, each of Guatemala, were sentenced to five years of supervised release.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the New York State Police, the Sullivan County District Attorney’s Office, U.S. Customs and Border Protection, the Rockland County Sheriff’s Department, the Village of Spring Valley Police Department, Special Agents with the U.S. Attorney’s Office for the Southern District of New York, the Department of State, the Transportation Security Administration, and our law enforcement partners in Mexico, Guatemala, Canada, and Israel.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Sam Adelsberg, Jamie Bagliebter, and Jim Ligtenberg, and paralegal specialist Shannon Becker, are 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 Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging SHYMELL EPHRON, a/k/a “Shy,” with two counts of coercion and enticement of minors to engage in unlawful sexual activity and five drug-trafficking counts, including two counts of using a minor to distribute narcotics and two counts of distributing narcotics to a minor.  EPHRON was arrested today and will be presented in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.  The case is assigned to U.S. District Judge Margaret M. Garnett.

U.S. Attorney Damian Williams said: “As alleged, Shymell Ephron raped and sexually abused two teenagers he found in Times Square, plied them with drugs and alcohol, and directed them to sell his drugs on the streets of New York City.  This Office is committed to keeping New York City safe from sexual predators, and thanks to the hard work of our law enforcement partners and the career prosecutors of this Office, Ephron has now been arrested and charged for his egregious conduct.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: “Shymell Ephron allegedly targeted two minor female victims for repeated sexual abuse, using illicit substances to encourage cooperation.  He directed them to participate in his unlawful drug trafficking operation by exploiting their innocence for nefarious purposes, as alleged.  Along with our law enforcement partners, the FBI remains committed to apprehending sexual predators and eliminating sources of illegal narcotics in our city.” 

NYPD Commissioner Edward A. Caban said: “The charges leveled against this alleged predator are the result of NYPD investigators and our local, state, and federal law enforcement partners working together to protect everyone in our community, especially young victims.  I commend the members of the FBI’s Westchester Safe Streets Task Force and the prosecutors at the office of the U.S. Attorney for the Southern District of New York for their continued focus on holding accountable individuals who allegedly target children.”

As alleged in public court filings, statements at public court proceedings, and the Indictment:[1] 

EPHRON and his co-conspirators have distributed narcotics, including ecstasy and crack cocaine, since at least in or about May 2024 in Times Square and other locations in New York City.  EPHRON has also offered and provided narcotics, including ecstasy and cocaine, to others in an effort to have sex with them.  On or about May 17, 2024, EPHRON approached two teenage girls in Times Square while he and a co-conspirator were selling drugs.  EPHRON convinced the two girls to follow him to his residence in Harlem, where they stayed with EPHRON for several days.

EPHRON engaged in multiple acts of forcible rape, forcible touching, sexual abuse, and sex with a minor while the girls were staying in EPHRON’s apartment.  EPHRON repeatedly provided the girls with ecstasy, marijuana, and alcohol, and EPHRON also directed the girls to sell his drugs on the streets of New York City.  EPHRON provided a cellphone to the girls to monitor their whereabouts, direct them to sell narcotics, and to persuade, induce, and entice them to return to his apartment each night so he could engage in unlawful sexual conduct with them.  Law enforcement agents with the FBI and NYPD eventually rescued the two girls.

There may be more victims of this alleged conduct.  If you have information to report, contact the FBI through its toll-free Tip Line at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.  

*                *                *

EPHRON, 35, of New York, New York, is charged with two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of narcotics conspiracy, which carries a maximum potential sentence of 20 years in prison; two counts of distributing narcotics using a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 45 years in prison; and two counts of distributing narcotics to a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 40 years in prison.

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

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

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Ryan W. Allison and Michael R. Herman 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 phase 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 that HDR GLOBAL TRADING LIMITED, a/k/a “Bitcoin Mercantile Exchange” or “BitMEX” (“BITMEX”), pled guilty today to violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) program.  The case is assigned to U.S. District Judge John G. Koeltl. 

U.S. Attorney Damian Williams said: “As BitMEX’s founders and long-time employee admitted in federal court in 2022, the company, one of the leading cryptocurrency derivatives platforms in the world from 2015 to 2020, operated in the United States without any meaningful anti-money laundering program, as required by federal law.  As a result, BitMEX opened itself up as a vehicle for large-scale money laundering and sanctions evasion schemes, posing a serious threat to the integrity of the financial system.  Today’s guilty plea indicates again the need for cryptocurrency companies to comply with U.S. law if they take advantage of the U.S. market.”  

FBI Acting Assistant Director in Charge Christie M. Curtis said: “By only mandating lax service access credentials, BitMEX not only failed to comply with nationally required anti-money laundering procedures designed to protect the US financial markets from illicit actors and transactions, but knowingly did so to increase the business’s revenue.  Today’s plea represents the FBI’s steadfast dedication to ensuring adherence to all U.S. financial laws, protecting the U.S. financial system, and holding accountable those who attempt to establish a workaround for profits.”

According to the allegations in the Information and other filings and statements made in court:

Arthur Hayes, Benjamin Delo, and Samuel Reed founded BITMEX in or about 2014, and Gregory Dwyer became BITMEX’s first employee in 2015 and later its Head of Business Development.  BITMEX, which has long serviced and solicited business from U.S. traders and also operated through U.S. offices, was required to register with the Commodity Futures Trading Commission (“CFTC”) and to establish and maintain an adequate AML program.  AML programs ensure that financial institutions, such as BITMEX, are not exploited for illicit purposes and serve to protect the integrity of the U.S. financial system and national security, more broadly.

The company and its executives knew that because BITMEX operated in the United States, including by serving U.S. customers, it was required to implement an AML program that included a “know your customer” (“KYC”) component but chose to flaunt those requirements, requiring only that customers provide an email address to use BITMEX’s services.  Indeed, senior executives each knew that customers residing in the United States continued to access BITMEX’s trading platform through at least in or about 2018 and that BITMEX policies nominally in place to prevent such trading were toothless or easily overridden to serve BITMEX’s bottom line goal of obtaining revenue through the U.S. market without regard to U.S. criminal laws.  Corporate executives took affirmative steps purportedly designed to exempt BITMEX from the application of U.S. laws like AML and KYC requirements, despite knowing of BITMEX’s obligation to implement such programs by operating in the United States.  As part of BITMEX’s willful evasion of U.S. AML laws, the company lied to a bank about the purpose and nature of a subsidiary to allow the company to pump millions of dollars through the U.S. financial system.

*                *                *

HDR GLOBAL TRADING LIMITED, an entity incorporated in the Republic of Seychelles, pled guilty to one count of violating the Bank Secrecy Act, which carries a maximum sentence of five years in prison and a fine. 

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 the judge.

Mr. Williams praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad and thanked the attorneys and investigators at the CFTC whose expertise and diligence were integral to the development of this investigation.

The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Jessica Greenwood, Samuel Raymond, and Thane Rehn are in charge of the prosecution. 

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 that U.S. COMPOUNDING, INC. (“USC”), a subsidiary of DMK Pharmaceuticals Corporation, pled guilty to multiple fraud offenses before U.S. District Judge Arun Subramanian, and a former USC executive, SAM GLOVER, was charged in an Indictment with conspiring to violate the Food, Drug, and Cosmetic Act (“FDCA”).  GLOVER was arrested this morning and is expected to be presented today before a U.S. Magistrate Judge in the Eastern District of Arkansas.

U.S. Attorney Damian Williams said: “Distributing prescription drugs with sham prescriptions is wrong and illegal.  The corporate resolution entered into today, and the indictment of Sam Glover, an executive who oversaw and allegedly perpetuated that scheme, reflects this Office’s commitment to holding accountable those who seek to violate laws designed to ensure that the drugs distributed across the United States are safe, necessary, and legal.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: “U.S. Compounding, Inc. and its former executive, Sam Glover, allegedly committed various frauds and violated the Food Drug and Cosmetic Act by falsifying prescription orders.  Despite scrutiny by members of the company who suspected the orders were unverified, the company’s leadership continued to allow the requests and collect profits as a result.  This investigation is part of the FBI’s larger effort to ensure that both individuals and organizations who devise complex fraud schemes are prevented from furthering their illegitimate arrangements and making money off mistruths.”

According to admissions and court documents, as well as the allegations in the Indictment:[1]

Beginning in approximately 2015, while USC was still a privately-held corporation, a USC sales representative (“Sales Rep 1”) entered into an illegal arrangement with a veterinarian (the “Veterinarian”), wherein Sales Rep 1 would use the Veterinarian’s state veterinary licenses to generate false prescriptions in order to justify shipping prescription drugs directly to consumers, including to consumers in the Southern District of New York, in violation of the FDCA.  Those consumers otherwise lacked bona fide prescriptions for those drugs.  The Veterinarian was promised a 10% commission of all such sales generated using his credentials, even though Sales Rep 1 and his supervisor, GLOVER, the Vice President of Sales at USC, knew that the prescriptions issued in the Veterinarian’s name were a sham.  GLOVER, Sales Rep 1, and the sales team working under them generated approximately $1 million in sales annually because of the false prescription scheme, which comprised approximately one-third of Sales Rep 1’s total sales of USC drugs.

On or about March 28, 2016, USC was acquired by Adamis Pharmaceuticals Corporation (“Adamis”), a publicly traded company that has since changed its name to DMK Pharmaceuticals Corporation (“DMK”).  USC retained its essential functions, operating as a wholly owned subsidiary of Adamis, and much of its staff remained employed, including GLOVER.  Following the acquisition, an executive at Adamis (the “Adamis Executive”) was made aware of the scheme and the Veterinarian’s role in it.  GLOVER, in conjunction with the Adamis Executive and Sales Rep 1, continued the false prescription scheme and attempted to enter into a sham consulting agreement with the Veterinarian that purported to pay the Veterinarian an hourly rate for consultations.  In actuality, the consulting agreement was a means to cover up the commission payments the Veterinarian was receiving as part of the scheme.  GLOVER and others intended to claim the Veterinarian was a USC consultant if the commission payments to the Veterinarian were ever questioned.

In or about December 2019, the head of the USC pharmacy responsible for fulfilling prescription drug orders (“Pharmacist-1”) resigned due to USC’s failure to halt the practice of fulfilling drug orders submitted by USC’s sales representatives based on unverified prescriptions.  Pharmacist-1’s replacement (“Pharmacist-2”) refused to fulfill any further orders for prescription drugs predicated on unverified prescriptions submitted by USC’s sales representatives.  Pharmacist-2 raised concerns regarding USC’s prescription practices with GLOVER and the Adamis Executive.  Pharmacist-2’s concerns were initially dismissed, but they ultimately convinced Adamis to implement a new veterinary software platform that was intended to eliminate the involvement of USC’s sales representatives in the creation or submission of prescriptions in connection with drug orders.  Nonetheless, GLOVER, the Adamis Executive, and Sales Rep 1 allowed sales representatives to submit false prescriptions through the new software, circumventing the control that Pharmacist-2 had insisted on implementing.  Consequently, in or about September 2020, Pharmacist-2 and two other pharmacists employed at USC resigned.  A fourth pharmacist employed at USC resigned the following week.  USC sales representatives continued to falsely indicate through the new software that drug orders were accompanied by valid prescriptions when they were not.

In or about July 2020, in response to increased perceived scrutiny of USC’s operations, USC sales representatives ceased submitting false prescriptions in the name of the Veterinarian.  Instead, USC sales representatives falsely classified direct-to-consumer sales of prescription drugs as sales of office stock to the Veterinarian, on the pretext that the Veterinarian was prescribing these drugs to USC’s customers.  According to USC’s internal sales data, sales of a particular prescription drug to the Veterinarian’s practice increased proportionally as direct-to-consumer sales of that drug declined.

In or about April 2021, the Arkansas State Board of Pharmacy issued an Order and Notice of Hearing directed to the pharmacist who replaced Pharmacist-2.  Prior to any hearing, USC entered into a consent order wherein USC agreed to cease all operations in Arkansas, and USC agreed to relinquish its Arkansas State licenses as a pharmacy and wholesale distributor.  USC also entered into a resolution in which they made the following factual admissions: USC “failed to ensure prescribing veterinarians were licensed in the state into which product was ordered and/or shipped”; USC “allowed for issuance of veterinary legend products directly to consumers without receipt of a legal prescription”; USC “provided remuneration directly to a veterinarian in connection with a veterinary prescription”; USC “provided veterinary prescriptions drugs to animal owners without the authorization of a licensed veterinarian and a prescription”; and USC “filled veterinary prescriptions for patients that did not have a valid practitioner-patient relationship.”

The U.S. Attorney’s Office for the Southern District of New York reached its resolution with USC based on a number of factors, including the nature, seriousness, and pervasiveness of the offense conduct.  The U.S. Attorney’s Office also considered USC and its parent company’s efforts to cooperate with the federal criminal investigation.  After learning of the federal criminal investigation in May 2021, Adamis, through its Audit Committee, cooperated in the investigation, which included making presentations to, and addressing questions posed by, the U.S. Attorney’s Office after conducting an internal investigation.  Moreover, since learning of the investigation, Adamis, on behalf of USC, made remedial efforts, including ceasing all USC’s operations;   terminating all employees and severing its relationships with all individuals involved in the criminal conduct, including senior personnel; and engaging a third party to conduct a cross-company enterprise risk assessment evaluating governance, product services, internal audit, risk management, compliance, and operations and implementing and effectuating the resulting recommendations.

Pursuant to the plea agreement, USC agreed that it is subject to an approximately $4.2 million forfeiture payment and a criminal fine of up to $16.9 million.

*                *                *

GLOVER, 45, of Arkansas, is charged with one count of conspiring to violate the FDCA, which carries a maximum sentence of five years in prison. 

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

Mr. Williams praised the outstanding investigative work of the FBI.  Mr. Williams also thanked the Food and Drug Administration and the Customs and Border Protection for their support of this investigation.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Sarah Mortazavi and David Felton 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 today the guilty plea of ELIJAH BERMUDEZ, a/k/a “Quiet,” in connection with his criminal activities as a member of the violent gang Bully Hard Hunna Blood (“Bully Hard”), including his role as the shooter in the June 20, 2020, murder of 16-year-old bystander Frederick Wells, known to his friends and family as “Khabir.”  The murder arose out of a dispute between Bully Hard gang members and members of a rival set of Bloods called the Untouchable Gorilla Stone Nation (“Gorilla Stone”), which led to, three months later, a retaliatory September 21, 2020, broad daylight murder of a second minor victim, 15-year-old Jalani Jones, in Poughkeepsie.  BERMUDEZ pled guilty today before U.S. District Judge Nelson S. Román.  

U.S. Attorney Damian Williams said: “In a tragic three-month stretch in 2020, brutal gang violence between the Bully Hard and Gorilla Stone sets of the Bloods caused two senseless murders of minor victims in Poughkeepsie.  Previously, Gorilla Stone leader Brandon Soto was convicted and sentenced to 35 years in prison for his role in planning out and ordering the retaliatory September 21, 2020, murder of a 15-year-old.  Today, thanks to our law enforcement partners and the dedicated prosecutors of this Office, Elijah Bermudez has now admitted to an earlier, June 20, 2020, murder that prompted the retaliatory September 2020 murder.  Today’s plea is a reminder that this Office will relentlessly pursue any gangs who threaten the safety of New Yorkers.”

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

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

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

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BERMUDEZ, 31, of New York, New York, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of being a felon in possession of ammunition, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to possess ammunition after a felony conviction, which carries a maximum sentence of five years in prison.  BERMUDEZ is scheduled to be sentenced by Judge Román on October 17, 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 Westchester County Safe Streets Task Force.  Mr. Williams also thanked the City of Poughkeepsie Police Department and Dutchess County District Attorney’s Office for their assistance in the case.

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

Damian Williams, the United States Attorney for the Southern District of New York announced today that the United States filed a civil lawsuit against GRISTEDE’S FOODS NY, INC. (“GRISTEDES”) alleging violations of the Clean Air Act and the Environmental Protection Agency’s (“EPA”) Recycling and Emissions Reduction Rule (“RER Rule”) due to GRISTEDES’ failure to comply with regulations designed to limit the emission of refrigerants from appliances at its store into the atmosphere.  The United States and GRISTEDES simultaneously entered into a Consent Decree resolving that lawsuit.  The Consent Decree requires GRISTEDES to pay a $400,000 civil penalty and to undertake millions of dollars of repairs to reduce its future emissions of refrigerants that are greenhouse gasses.

U.S. Attorney Damian Williams said: “Between 2019 and 2021, Gristedes systematically violated EPA refrigerant regulations, resulting in greenhouse gas emissions at a rate far higher than others in the industry.  To give a sense of scale, Gristedes’ emissions had a global warming effect equal to driving a car 140,000,000 miles.  As a result of our lawsuit, Gristedes is now required to reduce its emissions by over 70% from their 2020 levels to offset at least some of the damage it has caused, and it will face significant additional penalties under the Consent Decree if it fails to do so.”

The Clean Air Act and the RER Rule impose requirements on the owners and operators of commercial refrigeration appliances to prevent the emission of regulated refrigerants into the atmosphere.  Many refrigerants (including those utilized in GRISTEDES stores) are powerful greenhouse gases that contribute to global climate change when emitted.  They also deplete the ozone layer and are toxic to humans when present in the air in large quantities.

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

GRISTEDES has owned and operated a chain of approximately 20 supermarkets in New York City.  Between 2019 and 2021, despite utilizing regulated refrigerants known as hydrochlorofluorocarbons and hydrofluorocarbons at its supermarkets, GRISTEDES systematically failed to comply with key aspects of the RER Rule — failing to calculate the rate at which its appliances were leaking when adding new refrigerants, failing to timely repair leaks, failing to conduct verification testing after repairing appliances, failing to retrofit or retire leaking appliances, and failing to report chronically leaking appliances to EPA. 

As a result, GRISTEDES’ refrigerators have leaked refrigerants into the atmosphere at a rate far higher than industry standards.  These leaks have emitted more than 40,000 pounds of regulated climate-impacting refrigerants, with a greenhouse gas effect equivalent to driving an average, gasoline-powered vehicle an extra 140,000,000 miles.

In the Consent Decree, GRISTEDES admits, acknowledges, and accepts responsibility for the following conduct between 2019 and 2021: 

• Failing failed to adopt or implement refrigerant management practices that were consistent with the RER Rule.
• Failing to calculate the leak rates for appliances upon addition of refrigerants to those appliances and to maintain records of the same. 
• Failing to repair appliances that had leak rates above applicable thresholds under the RER Rule and to maintain records of the same.
• Failing to perform initial and follow-up verification tests to ensure that the repairs were successful, to perform subsequent leak inspections at intervals required by the RER Rule, and to maintain records of the same.
• Failing to implement retrofit or retirement plans for the appliances that had uncontrolled leaks or to maintain records of the same.
• Failing to submit reports to EPA related to chronically leaking appliances.
• Maintaining corporate-wide leak rates of 40%, 59%, and 46% in 2019, 2020, and 2021, respectively, resulting in the emission of 42,094 pounds of refrigerants, in total.

Pursuant to the Consent Decree, GRISTEDES will pay a penalty of $400,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable.  Further, the Consent Decree requires GRISTEDES to undertake repairs of its commercial refrigeration equipment with an estimated cost of $13,500,000, to adopt a comprehensive refrigerant compliance management plan, to convert three stores to utilize advanced refrigerants with low global warming potential, and to lower its corporate leak-rate below 16%.  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’s Region 5 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. Attorneys Zack Bannon and Dominika Tarczynska are in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that MONA FAIZ MONTRAGE was sentenced to 12 months and one day in prison by U.S. District Judge J. Paul Oetken on June 28, 2024.  MONTRAGE previously pled guilty on February 21, 2024, to conspiracy to receive stolen money.

U.S. Attorney Damian Williams said: “Mona Faiz Montrage knowingly received illegal funds from older Americans who were victims of romance scams and now faces serious consequences for her actions.  Romance scams such as Montrage’s harm vulnerable, elderly victims not only in the cruel betrayal of trust in the realization that their online romantic connection was fiction, but by also callously stealing their money.  This Office and our law enforcement partners are relentless in bringing fraudsters who target Americans to justice, no matter where they are.”

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

From at least in or about 2013 through in or about 2019, MONTRAGE was a member of a criminal enterprise (the “Enterprise”) based in West Africa that committed a series of frauds against individuals and businesses in the U.S., including romance scams. 

Many of the Enterprise’s romance scam victims were vulnerable, older men and women who lived alone.  The Enterprise frequently conducted the romance scams by sending the victims emails, text messages, and social media messages that deceived the victims into believing that they were in romantic relationships with a person who was, in fact, a fake identity assumed by members of the Enterprise.  Once members of the Enterprise had successfully convinced victims that they were in a romantic relationship and had gained their trust, they convinced the victims, under false pretenses, to transfer money to bank accounts the victims believed were controlled by their romantic interests, when, in fact, the bank accounts were controlled by members of the Enterprise.

MONTRAGE is a Ghanaian public figure who rose to fame as an influencer through her Instagram profile under the username “Hajia4Reall,” which at one point had approximately 3.4 million Instagram followers and was among the top 10 most followed profiles in Ghana.

MONTRAGE received money from approximately forty victims of romance frauds, whom members of the Enterprise tricked into sending money.  Among the false pretenses used to induce victims to send money to MONTRAGE were payments to transport gold to the U.S. from overseas, payments to resolve a fake Federal Bureau of Investigation (“FBI”) investigation, and payments to assist a fake U.S. Army officer in receiving funds from Afghanistan.

In total, MONTRAGE controlled bank accounts that received over $2 million in fraudulent funds for the Enterprise.

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In addition to the prison term, MONTRAGE, 32, of Accra, Ghana, was sentenced to three years of supervised release and order to forfeit $216,475 and pay restitution in the amount of $1,387,458.

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 Mitzi Steiner and Kevin Mead are in charge of the prosecution.

“Today, Doctor William Washington was found guilty by a unanimous jury of engaging in a widespread scheme to defraud the NBA Players’ Health and Welfare Benefits Plan.  This scam by former players — some who earned tens of millions in successful NBA careers — and health care providers caused a loss of over $5 million to the health care benefit plan.  The players and doctors who engaged in this audacious scheme clearly thought it would go unnoticed — they were wrong.  Washington now stands convicted of federal crimes for facilitating fraud and betraying his oath as a health care provider.” 

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JUSTIN HEATH SMITH, an adult film actor who uses the stage name “Austin Wolf.”  SMITH is charged with sending and receiving hundreds of videos of child pornography via the Telegram application.  Those videos depicted children as young as infants, including a video showing a 10-year-old child bound and raped.  In addition to sharing child pornography via Telegram, SMITH is also charged with possessing hundreds of additional videos containing child pornography in his Manhattan apartment.  SMITH will be presented later today before U.S. Magistrate Judge Robyn F. Tarnofsky in Manhattan federal court. 

U.S. Attorney Damian Williams said: “As alleged, Justin Heath Smith received and distributed hundreds of recordings containing child pornography, including a ghastly video showing a young child bound, beaten, and raped.  Our investigation into Smith is ongoing, and we urge anyone with information about Smith’s conduct to call the FBI at 1-800-CALL-FBI.  Together with our law enforcement partners, we will relentlessly pursue those predators who victimize children and prosecute them to the fullest extent of the law.” 

FBI Assistant Director in Charge James Smith said: “I want to make it clear: those who distribute child sexual abuse images prey upon the most vulnerable in our society.  Each image is a crime scene, leaving lasting scars on innocent victims.  The FBI is relentless in our pursuit of these perpetrators.  We will track them down, arrest them, and ensure they face justice for the harm they cause.”

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

Between March 24 and March 28, 2024, SMITH, using an anonymous Telegram account, exchanged hundreds of videos containing child pornography with another individual whose phone was later seized and searched by the FBI pursuant to a search warrant.

An undercover FBI agent subsequently began a conversation with SMITH’s anonymous Telegram account.  In the course of those conversations, SMITH revealed details that confirmed his identity.

On April 21, 2024, the FBI executed a search warrant at SMITH’s Manhattan apartment, which revealed an SD card with hundreds of videos containing child pornography.

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SMITH, 43, of New York, New York, is charged with one count of distribution and receipt of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and one count of possession of child pornography, which carries a maximum sentence of 10 years in prison.   

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

Mr. Williams praised the outstanding investigative work of the FBI.  Mr. Williams urged anyone who has additional information about SMITH’s conduct to call the FBI at 1-800-CALL-FBI or to submit a tip at tips.fbi.gov.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Getzel Berger 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.

Damian Williams, the United States Attorney for the Southern District of New York; Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service ("USPIS"); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of CALEB ECCLES-GONSALVES in connection with his sale and distribution of firearms, machinegun conversion devices (“MCDs”), silencers, ammunition, and narcotics.  ECCLES-GONSALVES was arrested this morning in St. Petersburg, Florida, and will be presented later today in the U.S. District Court for the Middle District of Florida.  The case is assigned to U.S. District Judge Richard M. Berman. 

U.S. Attorney Damian Williams said: “As alleged, Caleb Eccles-Gonsalves participated in a scheme to illegally traffic various contraband into and around New York City, including guns, narcotics, and gun accessories like machinegun conversion devices, silencers, and ammunition.  Machinegun conversion devices 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 we will continue working diligently with our law enforcement partners to keep these devices and other illegal guns out of New York City.”

HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, the defendant trafficked illicit high-powered weapons, accessories, and ghost guns and in turn overlooked the incalculable dangers posed to the public.  HSI New York is committed to working with law enforcement partners to confront violent crime and its underlying causes directly.  I commend HSI’s Violent Gang Task Force, the New York Police Department, and the U.S. Attorney’s Office for the Southern District of New York for our shared dedication to removing illegal guns from our streets.”

USPIS Inspector in Charge Daniel B. Brubaker said: “The defendants allegedly used the U.S. Mail to traffic and distribute illegal firearms and other contraband in New York City without any regard for public safety in our communities.  The United States Postal Inspection Service will continue to aggressively pursue and investigate anyone who attempts to use the mail to encourage gun violence and ongoing drug use in our communities.  Combating these illegal activities will always be a priority for postal inspectors.  I commend our partners in the NYPD, HSI, and the U. S. Attorney’s Office for the Southern District of New York for their collaborative efforts on this investigation.”

NYPD Commissioner Edward A. Caban said: “These charges punctuate that the manufacturing and trafficking of fully assembled untraceable ghost guns, as well as their component parts, is among the most pressing public safety concerns in New York City today.  NYPD investigators and our federal partners will continue to vigorously pursue these types of cases in order to deliver on our promise to keep all New Yorkers safe, and to hold accountable anyone who allegedly involves themselves in this illicit trade.”

According to the allegations in the Indictment unsealed today in Manhattan federal court, as well as publicly filed court documents and statements at public court proceedings:1

From about July 2023 up to and including June 2024, ECCLES-GONSALVES participated in a conspiracy to sell at least two MCDs, multiple firearms — including a privately manufactured “ghost” gun (depicted below) — and narcotics.  An MCD is a combination of parts that, when installed on a semiautomatic firearm, enables the firearm to automatically shoot more than one shot, without manual reloading, by a single function of the trigger.  A “ghost” gun is an unserialized, privately manufactured firearm that is difficult to trace and typically constructed from a kit.

ECCLES-GONSALVES and his co-conspirators used the U.S. Postal Service (“USPS”) to ship MCDs as well as firearms from Florida to New York.  In addition, ECCLES-GONSALVES advertised multiple guns, including at least one rifle, as available for sale.  Law enforcement seized USPS parcels during the course of the investigation and seized, among other things, a privately manufactured “ghost” gun, a silencer, an MCD, ammunition, and magazines.  A photo of a "ghost gun" and silencer seized from a USPS parcel during the course of this investigation is copied below:

At the time of his arrest today, law enforcement officers executed a search warrant in the home in which ECCLES-GONSALVES was staying in St. Petersburg, Florida.  During the search, as depicted below, law enforcement officers recovered, among other things, 13 firearms, magazines, ammunition, and a lower receiver.

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ECCLES-GONSALVES, 29, of Brooklyn, New York, is charged with conspiracy to possess and transfer a machinegun, which carries a maximum potential sentence of five years in prison; possession and transfer of a machinegun, which carries a maximum potential sentence of 10 years in prison; conspiracy to engage in the unlicensed business of dealing in firearms, which carries a maximum potential sentence of five years in prison; and narcotics distribution, which carries a maximum potential sentence of 20 years in prison.

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 work of HSI, the NYPD, and USPIS.   

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Ashley C. Nicolas and Timothy Ly 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

SYRACUSE, NEW YORK – Lauren Roosa, age 39, formerly of Clay, New York, was sentenced today to 72 months in federal prison for her role in a drug-trafficking organization that distributed methamphetamine in Onondaga County and elsewhere in Central New York.

The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.

As part of her prior guilty plea, Roosa admitted that from approximately January 2020 through at least April 2021, she conspired with others to distribute methamphetamine in Central New York, which had been transported from California. Roosa further admitted that she agreed to receive shipments of methamphetamine at her residence in Clay, New York, which had been sent via commercial delivery service by coconspirators. One of these shipments contained 879 grams of pure methamphetamine. Roosa also acknowledged that she knew that a coconspirator had stored methamphetamine at a small convenience store in Syracuse, New York, which included 405 grams of pure methamphetamine seized by law enforcement, and that the $17,460 in U.S. currency also seized from that location was drug proceeds.

United States District Judge David N. Hurd also ordered Roosa to serve a 3-year term of supervised release to follow her release from prison, and the forfeiture of a total of $22,010 seized currency.

This case was investigated by DEA, U.S. Internal Revenue Service Criminal Investigation (IRS-CI), New York State Police-Violent Gang and Narcotics Enforcement Team (NYSP-VGNET), Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, Syracuse Police Department, Oklahoma City Police Department, San Bernardino County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.

Damian Williams, the United States Attorney for the Southern District of New York, announced that SILFREDO CASTILLO MARTINEZ was sentenced today to 25 years in prison for producing child pornography with a minor victim who was under his watch in the Bronx daycare CASTILLO MARTINEZ owned and operated.  On March 21, 2024, CASTILLO MARTINEZ pled guilty to sexual exploitation of a child and production of child pornography before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Silfredo Castillo Martinez exploited the trust placed in him as a daycare provider by sexually abusing one of the minor children under his care and recording that abuse.  This lengthy prison sentence holds Castillo Martinez accountable for his horrific crimes and the extraordinary harm and trauma he caused.” 

According to the allegations contained in the Superseding Information and the Complaint:

From about July 2015 through about May 3, 2022, CASTILLO MARTINEZ operated a licensed daycare facility for children at his residence in the Bronx, New York (the “Daycare Facility”). 

From about May 2018 through about July 2018, CASTILLO MARTINEZ induced an 11-year-old minor (“Minor Victim-1”) who attended the Daycare Facility to engage in sexually explicit conduct with him at the Daycare Facility while CASTILLO MARTINEZ recorded that conduct on his cellphone and camera. 

On about May 3, 2022, law enforcement agents executed a search warrant at CASTILLO MARTINEZ’s residence and seized several electronic devices belonging to CASTILLO MARTINEZ.  Those devices contained, among other things, several images and a video containing child pornography depicting Minor Victim-1 and approximately 9,800 other images depicting child pornography.

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In addition to his prison term, CASTILLO MARTINEZ, 34, of the Bronx, New York, was sentenced to a lifetime of supervised release.   

Mr. Williams praised the outstanding investigative work of the U.S. Secret Service’s Internet Crimes Against Children Task Force, the Federal Bureau of Investigation, and the New York City Police Department.  Mr. Williams also thanked the Bronx County District Attorney’s Office for its assistance.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Jackie Delligatti 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 settled a civil fraud lawsuit against VISITING NURSE SERVICE OF NEW YORK d/b/a VNS HEALTH, VISITING NURSE SERVICE OF NEW YORK HOME CARE II d/b/a VISITING NURSE SERVICE OF NEW YORK HOME CARE, and VNS HEALTH BEHAVIORAL HEALTH, INC. (collectively, “VNS”).

VNS, which operates one of the largest non-profit home and community-based health care organizations in the U.S., is licensed by the New York State Office of Mental Health (“OMH”) to serve as an Assertive Community Treatment (“ACT”) Program provider.  The settlement resolves claims that VNS violated the False Claims Act by fraudulently billing Medicaid for services that it either failed to provide or failed to document to persons with serious mental illness at the ACT Program VNS operated in Far Rockaway, Queens (the “VNS Far Rockaway ACT Program”).  Specifically, the settlement resolves claims that from January 1, 2014, through December 31, 2018, VNS submitted or caused to be submitted false claims to Medicaid for monthly payments for 103 patients at the VNS Far Rockaway ACT Program who did not receive the full array of services that VNS was required to provide under the ACT Program or for whom VNS did not adequately or timely document provision of such services in accordance with applicable regulations or the ACT guidelines.

Under the settlement approved June 25, 2024, by U.S. District Judge Paul A. Engelmayer, VNS will pay the U.S. $381,766.59 and has admitted and accepted responsibility for conduct alleged in the U.S. Complaint.  VNS has also agreed to pay the State of New York $572,649.89 to resolve state law claims for a total combined recovery of $954,416.48.

U.S. Attorney Damian Williams said: “The patients with serious mental illness who were receiving services from VNS’s Far Rockaway location deserved better.  These individuals needed, and Medicaid agreed to pay for, a full suite of monthly support services so that they could better manage their disabilities.  This Office will hold health care providers accountable when they fail to provide the necessary services that the federal and state governments are paying for.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “As an Assertive Community Treatment Program in the State of New York, the defendants obtained funds from the Medicaid program to which they were not entitled because they did not record or provide appropriate services to a vulnerable patient population.  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: 

VNS, as an ACT Program provider, receives monthly payments from Medicaid for each patient enrolled in its ACT Program.  In order to receive these payments, VNS must comply with certain regulations and guidelines promulgated by OMH, as well as their own contractual agreements with OMH.

However, in violation of these regulations, guidelines, and contractual agreements, VNS repeatedly failed to provide or document essential services to 103 patients at the VNS Far Rockaway ACT Program.  Specifically, VNS repeatedly failed to complete intake forms and/or conduct initial assessments, failed to complete immediate needs assessments, failed to complete service plans, failed to provide and/or record monthly psychiatric visits, and failed to record progress notes.

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

▪           Intake Forms and Initial Assessments: Intake forms and initial assessments record necessary background information about the patient, inform subsequent treatment, and set a baseline for improvement while the patient is in the program.  In multiple instances and contrary to the ACT guidelines, VNS failed to complete intake forms and/or initial assessments for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete intake forms and/or initial assessments in a timely manner, or failed to provide the necessary supervisory review and approval of intake forms and/or initial assessments.

▪           Immediate Needs Assessments: Immediate needs assessments are used to determine patient needs as to safety/dangerousness, food, clothing, shelter, and medical needs.  In multiple instances and contrary to the ACT guidelines, VNS failed to complete immediate needs assessments for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete immediate needs assessments in a timely manner, or failed to provide the necessary supervisory review and approval of immediate needs assessments.

▪           Comprehensive Assessments: Comprehensive assessments provide a necessary baseline to provide services and are updated to reflect the patient’s changing needs over time.  In multiple instances and contrary to the ACT guidelines, VNS failed to complete comprehensive assessments for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete comprehensive assessments in a timely manner, or failed to provide the necessary supervisory review and approval of comprehensive assessments.

▪           Service Plan: Service plans set forth specific objectives and planned services necessary to facilitate achievement of the patient’s recovery goals.  In multiple instances and contrary to the ACT guidelines, VNS failed to complete service plans for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete service plans in a timely manner, or failed to provide the necessary supervisory review and approval of service plans.

▪           Psychiatric Visits: In multiple instances and contrary to the ACT guidelines, VNS failed to document psychiatric visits for patients enrolled in the VNS Far Rockaway ACT Program.

▪           Progress Notes: Progress notes document service contacts and attempted contacts, progress or lack of progress toward goals, and significant events.  In multiple instances and contrary to the ACT guidelines, VNS failed to record progress notes for patients enrolled in the VNS Far Rockaway ACT Program until several days or even weeks after the contact with the patient.  In addition, VNS sought and received payment at the full monthly level even though, based on the progress notes, they were entitled only to partial payment based on the number of documented contacts with the patient.

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

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Mr. Williams thanked HHS-OIG and the New York Medicaid Fraud Control Unit for their assistance with this case.

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

The former president of Honduras, Juan Orlando Hernández, 55, also known as JOH, was sentenced today to 540 months in prison and 60 months of supervised release for cocaine importation and related weapons offenses. The former two-term president was in office until weeks before his extradition to the United States in April 2022. Hernández was convicted on March 8 following a three-week jury trial. 

“As President of Honduras, Juan Orlando Hernández abused his power to support one of the largest and most violent drug trafficking conspiracies in the world, and the people of Honduras and the United States bore the consequences,” said Attorney General Merrick B. Garland. “Thanks to the diligent work of the Justice Department’s agents and prosecutors, Hernández will now spend more than four decades in prison. The Justice Department will hold accountable all those who engage in violent drug trafficking, regardless of how powerful they are or what position they hold.”

“The Drug Enforcement Administration (DEA) is relentlessly focused on dismantling drug trafficking organizations that threaten the safety and health of the American people,” said DEA Administrator Anne Milgram. “Former Honduran President Juan Orlando Hernández financed his political career with drug trafficking profits and abused his authority as President of Honduras to traffic hundreds of tons of cocaine to the United States. Let me be clear, political actors who use their power to traffic in drugs and corruption will be brought to justice in the United States.”

“As the former two-term president of Honduras, Juan Orlando Hernández had every opportunity to affect positive change for his country," said U.S. Attorney Damian Williams for the Southern District of New York. "Instead, Hernández helped to facilitate the importation of an almost unfathomable 400 tons of cocaine to this country: billions of individual doses sent to the United States with the protection and support of the former president of Honduras. Now, after years of destructive narco-trafficking of the highest imaginable magnitude, Hernández will spend 45 years where he belongs: in federal prison.”

According to court documents, from at least in or about 2004, up to and including in or about 2022, Hernández, the former two-term president of Honduras and former president of the Honduran National Congress, was at the center of one of the largest and most violent drug-trafficking conspiracies in the world. During his political career, Hernández abused his powerful positions and authority in Honduras to facilitate the importation of over 400 tons of cocaine into the U.S. Hernández’s co-conspirators were armed with machine guns and destructive devices, including AK-47s, AR-15s, and grenade launchers, which they used to protect their massive cocaine loads as they transited across Honduras on their way to the United States, protect the money they made from the eventual sale of this cocaine, and guard their drug-trafficking territory from rivals. Hernández received millions of dollars of drug money from some of the largest and most violent drug-trafficking organizations in Honduras, Mexico, and elsewhere, and used those bribes to fuel his rise in Honduran politics. In turn, as Hernández rose to power in Honduras, he provided increased support and protection for his co-conspirators, allowing them to move mountains of cocaine, commit acts of violence and murder, and help turn Honduras into one of the most dangerous countries in the world.

During his time in office, Hernández publicly promoted legislation and the efforts he purported to undertake in support of anti-narcotics measures in Honduras. At the same time, he protected and enriched the drug traffickers in his inner circle and those who provided him with cocaine-fueled bribes that allowed him to obtain and stay in power in Honduras. For example, Hernández selectively upheld extraditions by supporting and taking credit for extraditions to the United States of certain drug traffickers who threatened his grip on power, while at the same time promising drug traffickers who bribed him and followed his instructions that they would remain safe in Honduras. In addition, Hernández and his co-conspirators abused Honduran institutions, including the Honduran National Police and Honduran military, to protect and grow their conspiracy. Among other things, members of the conspiracy used heavily armed Honduran National Police officers to protect their cocaine loads as they transited through Honduras towards the United States for eventual distribution. Members of the conspiracy also turned to violence and murder to protect and grow their drug trafficking enterprise, attacking and murdering rival traffickers and those who threatened their grip on the Honduran cocaine trade.

Several of Hernández’s co-conspirators have already been convicted and sentenced in connection with this investigation. Among others, Hernández’s brother, Juan Antonio Hernández Alvarado, also known as Tony Hernández, was convicted after trial in October 2019 and sentenced to life in prison, and Geovanny Fuentes Ramirez, a violent cocaine trafficker who met with Hernández on multiple occasions to discuss their drug trafficking partnership, was convicted after trial in March 2021 and sentenced to life in prison. Juan Carlos Bonilla Valladares, also known as El Tigre, the former chief of the Honduran National Police, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on Aug. 1, and Mauricio Hernández Pineda, a former member of the Honduran National Police and Hernández’s cousin, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on July 2.

In total, Hernández and his co-conspirators trafficked more than 400 tons of U.S.-bound cocaine through Honduras during Hernández’s tenure in the Honduran government. This amounts to well over approximately 4.5 billion individual doses of cocaine.

The DEA investigated the case.

The Justice Department’s Office of International Affairs provided valuable assistance in securing Hernández’s arrest and extradition.

Trial Attorneys Andrea Broach and Jessica Fender of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Jacob H. Gutwillig, David J. Robles, Elinor L. Tarlow, and Kyle A. Wirshba for the Southern District of New York prosecuted the case.

Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that JUAN ORLANDO HERNANDEZ, a/k/a “JOH,” was sentenced today to 45 years in prison for cocaine importation and related weapons offenses.  HERNANDEZ is the former two-term president of Honduras and was in office until weeks before his extradition to the U.S. in April 2022.  HERNANDEZ was convicted on March 8, 2024, following a three-week jury trial before U.S. District Judge P. Kevin Castel, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “As the former two-term president of Honduras, Juan Orlando Hernandez had every opportunity to affect positive change for his country.  Instead, Hernandez helped to facilitate the importation of an almost unfathomable 400 tons of cocaine to this country: billions of individual doses sent to the United States with the protection and support of the former president of Honduras.  Now, after years of destructive narco-trafficking of the highest imaginable magnitude, Hernandez will spend 45 years where he belongs: in federal prison.”

Attorney General Merrick B. Garland said: “As President of Honduras, Juan Orlando Hernandez abused his power to support one of the largest and most violent drug trafficking conspiracies in the world, and the people of Honduras and the United States bore the consequences.  Thanks to the diligent work of the Justice Department’s agents and prosecutors, Hernandez will now spend more than four decades in prison.  The Justice Department will hold accountable all those who engage in violent drug trafficking, regardless of how powerful they are or what position they hold.”

DEA Administrator Anne Milgram said: “DEA is relentlessly focused on dismantling drug trafficking organizations that threaten the safety and health of the American people. Former Honduran President Juan Orlando Hernandez financed his political career with drug trafficking profits and abused his authority as President of Honduras to traffic hundreds of tons of cocaine to the United States.  Let me be clear, political actors who use their power to traffic in drugs and corruption will be brought to justice in the United States.”

As reflected in the Superseding Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:

From at least in or about 2004, up to and including in or about 2022, HERNANDEZ, the former two-term president of Honduras and former president of the Honduran National Congress, was at the center of one of the largest and most violent drug-trafficking conspiracies in the world.  During his political career, HERNANDEZ abused his powerful positions and authority in Honduras to facilitate the importation of over 400 tons of cocaine into the U.S.  HERNANDEZ’s co-conspirators were armed with machine guns and destructive devices, including AK-47s, AR-15s, and grenade launchers, which they used to protect their massive cocaine loads as they transited across Honduras on their way to the U.S., protect the money they made from the eventual sale of this cocaine, and guard their drug-trafficking territory from rivals.  HERNANDEZ received millions of dollars of drug money from some of the largest and most violent drug-trafficking organizations in Honduras, Mexico, and elsewhere, and used those bribes to fuel his rise in Honduran politics.  In turn, as HERNANDEZ rose to power in Honduras, he provided increased support and protection for his co-conspirators, allowing them to move mountains of cocaine, commit acts of violence and murder, and help turn Honduras into one of the most dangerous countries in the world.

During his time in office, HERNANDEZ publicly promoted legislation and the efforts he purported to undertake in support of anti-narcotics measures in Honduras.  At the same time, he protected and enriched the drug traffickers in his inner circle and those who provided him with cocaine-fueled bribes that allowed him to obtain and stay in power in Honduras.  For example, HERNANDEZ selectively upheld extraditions by supporting and taking credit for extraditions to the U.S. of certain drug traffickers who threatened his grip on power, while at the same time promising drug traffickers who bribed him and followed his instructions that they would remain safe in Honduras.  In addition, HERNANDEZ and his co-conspirators abused Honduran institutions, including the Honduran National Police and Honduran military, to protect and grow their conspiracy.  Among other things, members of the conspiracy used heavily armed Honduran National Police officers to protect their cocaine loads as they transited through Honduras towards the U.S. for eventual distribution.  Members of the conspiracy also turned to violence and murder to protect and grow their drug trafficking enterprise, attacking and murdering rival traffickers and those who threatened their grip on the Honduran cocaine trade.   

Several of HERNANDEZ’s co-conspirators have already been convicted and sentenced in connection with this investigation.  Among others, HERNANDEZ’s brother, Juan Antonio Hernandez Alvarado, a/k/a “Tony Hernandez,” was convicted after trial in October 2019 and sentenced to life in prison, and Geovanny Fuentes Ramirez, a violent cocaine trafficker who met with HERNANDEZ on multiple occasions to discuss their drug trafficking partnership, was convicted after trial in March 2021 and sentenced to life in prison.  Juan Carlos Bonilla Valladares, a/k/a “El Tigre,” the former chief of the Honduran National Police, pled guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on August 1, 2024, and Mauricio Hernandez Pineda, a former member of the Honduran National Police and HERNANDEZ’s cousin, pled guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on July 2, 2024.

In total, HERNANDEZ and his co-conspirators trafficked more than 400 tons of U.S.-bound cocaine through Honduras during HERNANDEZ’s tenure in the Honduran government.  

*                *                *

In addition to the prison term, HERNANDEZ, 55, of Honduras, was sentenced to five years of supervised release and ordered to pay a fine of $8 million.

Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, the Organized Crime Drug Enforcement Task Forces’ (“OCDETF”) New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and the National Security Division’s Counterterrorism Section. 

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.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jacob H. Gutwillig, David J. Robles, Elinor L. Tarlow, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorneys Andrea Broach and Jessica Fender of the National Security Division’s Counterterrorism Section. 

Damian Williams, the United States Attorney for the Southern District of New York, announced today that VERNON E. COPELAND III was sentenced to life in prison by U.S. District Judge Kenneth M. Karas for his years-long aggravated sexual assault, enticement, and transportation of a minor.  COPELAND was convicted of coercion and enticement of a minor, aggravated sexual abuse, and transportation of a minor with intent to engage in sexual activity following a week-long jury trial in July 2023.

U.S. Attorney Damian Williams said: “For years, Vernon E. Copeland III preyed on some of the most defenseless members of our community.  Four of his victims, one of whom was just nine years old when Copeland began abusing her, faced him at trial and courageously told their harrowing stories.  This lengthy prison sentence finally holds Copeland accountable for his horrific crimes and the devastating harm and trauma he caused to minor victims and their families.”

According to court documents and the evidence presented at trial:

In a motel on Thanksgiving Day in 2004, COPELAND raped two minors, one of whom was 17 at the time and another of whom was 15 at the time.  In 2010, COPELAND raped another minor who was 16 at the time in an apartment in Newburgh, New York.  From 2016 to 2020, COPELAND repeatedly raped and sexually abused a girl when she was between the ages of 9 and 13 years old.  In 2020, COPELAND fled the State of New York when he suspected that law enforcement might be closing in on him.  In 2021, he was arrested in Florida and brought back to the Southern District of New York to be prosecuted.

*                *                *

In addition to the prison term, COPELAND, 39, of Newburgh, New York, was sentenced to lifetime supervised release.

Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation, Hudson Valley Safe Streets Task Force, the Town of Newburgh Police Department, and the Tampa Police Department in Tampa, Florida, in connection with this investigation.

The prosecution is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Danielle Sassoon and Timothy Ly, with assistance from former U.S. Attorney Lindsey Keenan, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging ROSANNA LISA STANLEY and GINA GUY for their roles in a series of romance schemes and for laundering the proceeds of those schemes.  STANLEY was arrested in North Miami Beach, Florida, and will be presented in federal court in the Southern District of Florida later today.  GUY was arrested in New York, New York, and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Robyn F. Tarnofsky.

U.S. Attorney Damian Williams said: “As alleged, Rosanna Lisa Stanley and Gina Guy callously defrauded elderly victims who were simply looking for companionship.  They allegedly used the millions of dollars in fraud proceeds to lead lives of luxury at their victims’ expense.  As today’s arrests demonstrate, perpetrators of romance scams will be held to account for their crimes.”

FBI Assistant District in Charge James Smith said: “Gina Guy and Rosanna Lisa Stanley allegedly took advantage of innocent individuals seeking companionship and exploited them for their own benefit.  Collecting millions of dollars from their victims, the perpetrators allegedly gained and betrayed the trust of primarily elderly individuals to fund their luxury purchases.  The FBI is committed to ensuring those who capitalize on personal connections for selfish reasons are brought to justice and prevented from repeating their crimes.”

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

STANLEY, from about 2009 to about 2024, and GUY, from about 2020 to about 2024, defrauded at least 16 victims (the “Victims”) of more than $7 million.  As part of that scheme, STANLEY and GUY lured the Victims, who were nearly all elderly individuals, into purported romantic or close personal relationships through in-person meetings, phone calls, text messages, and an online dating platform.  After earning the Victims’ trust, STANLEY and GUY convinced the Victims to transfer money to STANLEY and GUY under false pretenses, including by, among other things, falsely representing that STANLEY and GUY needed money for fake businesses and organ transplants.  Once STANLEY and GUY received the Victims’ money, they moved the money through shell company bank accounts to avoid detection by law enforcement.  Ultimately, STANLEY and GUY used the money for their personal benefit, including, for example, for luxury vehicles, a boat, high-end jewelry, and other luxury products.

*                *                *

STANLEY, 48, of North Miami Beach, Florida, and GUY, 37, of New York, New York, are each charged with one count of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of conspiracy to commit money laundering, each of 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 the judge.  

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

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Diarra M. Guthrie and Lauren Phillips are in charge of the prosecution.

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

[1] As the introductory phrase signifies, the 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 that ADEDAYO JOHN was sentenced today by U.S. District Judge Loretta A. Preska to seven years in prison for his role as a leader of a money laundering and bank fraud ring that laundered millions of dollars in proceeds derived from business email compromises and romance fraud schemes impacting more than 50 victims.  JOHN previously pled guilty to one count of conspiracy to commit money laundering and one count of conspiracy to commit bank fraud on January 4, 2024.  In total, 11 defendants have pled guilty for their roles in the money laundering and bank fraud schemes.

U.S. Attorney Damian Williams said: “The defendants in this case have acknowledged their roles as part of a criminal enterprise that not only defrauded businesses by assuming the online identities of legitimate entities, but also preyed on elderly people, deceiving victims into sending money in phony romance scams.  As a leader of the scheme, Adedayo John played a particularly important role in the enterprise and victimization of individuals and companies across the country.  Today’s sentence ensures that he will be held accountable for his actions.”

According to the Indictment and other court documents:

JOHN, OLUWADAMILOLA AKINPELU, KAZEEM RAHEEM, MORAKINYO GBEYIDE, WARRIS ADENUGA, a/k/a “Blue,” SMART AGUNBIADE, LATEEF GOLOBA, SAMSONDEEN GOLOBA, OLAWOYIN PETER OLAREWAJU, EMMANUEL ORONSAYE-AJAYI, and ARAMIWALE SHITTU (collectively, the “defendants”) participated in either a money laundering conspiracy, a bank fraud conspiracy, or both, which received funds stolen from victims.

Victims were typically defrauded in one of two ways.  In some instances, business email compromise fraud schemes were used to trick businesses into transferring funds to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of the defendants or their co-conspirators.  In other instances, romance scams were used, primarily through electronic messages sent via email, text messaging, social media, or online dating websites, to deceive victims – many of whom were older men and women – into believing they were in romantic relationships with fake identities, and then using false pretenses to cause the victims to transfer funds to bank accounts controlled by the defendants or their co-conspirators.

As a result of these frauds, law enforcement officers have identified transfers of more than $19 million into bank accounts under the control of the defendants.

JOHN was a leader of the U.S.-based members of the business email compromises and romance fraud schemes.  JOHN directed other members of the conspiracy to open new bank accounts and/or to be ready to receive money that was going to be sent from others, and he assisted members with procuring fake passports and other identification documents in order to open fraudulent bank accounts.  JOHN also attempted to facilitate the delivery of flowers to a victim of one of the the romance scams.  As part of the scheme, approximately $4.5 million in fraud proceeds passed through bank accounts opened and/or controlled by JOHN, and JOHN led a group of individuals based in the U.S. for whom approximately $19 million in fraud proceeds passed through their bank accounts.

*               *                *

In addition to the prison term, JOHN, 35, of Katy, Texas, was sentenced to three years of supervised release and ordered to forfeit $4,513,438.23 and two vehicles.  He was also ordered to pay restitution in the amount of $1,561,562.95.  In total, the defendants in this case were ordered to forfeit over $25 million in fraud proceeds and pay over $8 million in restitution. 

Mr. Williams praised the outstanding investigative work of the U.S. Secret Service.  

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Connie Dang, Kaylan Lasky and Matthew Weinberg are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that a grand jury has returned an Indictment charging CHRISTOPHER REESE, a/k/a “Christopher Eugene Thomas,” with federal crimes related to his tricking federal criminal defendants and their family members into paying REESE, who is not a lawyer, to perform unlicensed legal services for them in federal courts.  REESE is already in federal custody in connection with a separate case.  The case is assigned to U.S. District Judge Valerie E. Caproni.

U.S. Attorney Damian Williams said: “As alleged in a criminal indictment, Christopher Reese sought to profit off the hopes and anxieties of criminal defendants and their families while abusing federal courts for his own financial gain.  Reese allegedly tricked people into paying him for legal services he wasn’t authorized to provide, and after promising he could get inmates out of prison time and time again, the only thing Reese achieved was taking money for himself.  It’s time for Reese’s alleged fraud on defendants, their families, and the courts to end.”

According to the Indictment:[1]

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

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

REESE has earned many thousands of dollars from this scheme, and in connection with the proceeds he earned from his legal-services scheme, REESE committed additional crimes.  First, REESE was on supervised release in connection with a separate federal criminal case in this District during most of the scheme.  In connection with his supervision, and in order to avoid paying criminal restitution that he owed, REESE made false statements to the U.S. Probation Office regarding his finances.  Second, REESE laundered the proceeds of his scheme by using a co-conspirator who assisted him with the scheme to effectively act as a bank for him and engaging in financial transactions designed to conceal the source and movement of the fees REESE collected from his victims.

*                *                *

REESE, 56, of East Meadow, New York, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of unauthorized practice of law in a federal enclave, which carries a maximum sentence of four years in prison; one count of making false statements to the U.S. Probation Office, which carries a maximum sentence of five years in prison; and one count of 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 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.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Josiah Pertz 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.

[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; Todd Kim, the Assistant Attorney General for the Environment and Natural Resources Division of the Justice Department; David M. Uhlmann, the Assistant Administrator for the Office of Enforcement and Compliance Assurance of the Environmental Protection Agency (“EPA”); and Lisa F. Garcia, the Regional Administrator for Region 2 of the EPA, announced today that the United States filed a civil lawsuit against the WESTCHESTER JOINT WATER WORKS (“WJWW”), the TOWN/VILLAGE OF HARRISON, the VILLAGE OF MAMARONECK, and the TOWN OF MAMARONECK (collectively, “the defendants”), along with a Consent Decree resolving the case.  The lawsuit alleges that the defendants violated the federal Safe Drinking Water Act (“SDWA”) in 2019 due to the presence of contaminants in the public water system in excess of the level set by EPA, and thereafter WJWW violated an EPA administrative order requiring the construction of a water filtration plant by specified deadlines.  The Consent Decree requires the defendants to construct a drinking water filtration plant projected to cost $138 million, take steps to protect source water quality, and pay a $600,000 civil penalty to the United States.

U.S. Attorney Damian Williams said: “Public water systems have the critical responsibility of ensuring that our communities have safe drinking water.  Thanks to today’s settlement, Westchester Joint Water Works will finally construct a long-delayed drinking water filtration facility to protect the Westchester County communities it serves.”

Assistant Attorney General Todd Kim said: “Today’s agreement kickstarts a path to ensuring a reliable and healthy source of water for 120,000 residents of Westchester County.  The building of a much-needed water filtration plant will address the source of the Safe Drinking Water Act violations and will help secure the area’s long-term needs.”

EPA Assistant Administrator David Uhlmann said: “Everyone living in the United States deserves safe drinking water.  Today’s agreement requires Westchester Joint Water Works to construct a new filtration system to prevent contaminated drinking water and to protect the quality of the water for a water system that serves multiple communities, including at least one that has been overburdened by environmental impacts.  Westchester residents should expect nothing less.”

EPA Regional Administrator Lisa F. Garcia said: “WJWW will build a drinking water filtration plant that will ensure clean and safe drinking water for 120,000 people in Westchester County, immediately pay a $600,000 civil penalty to the federal government and implement a $900,000 Supplemental Environmental Project to improve source water quality through decreased stormwater discharge into the Kensico Reservoir.  We are happy to partner with the State of New York to address this long-standing violation of the Safe Drinking Water Act and protect public health.”

According to the allegations of the Complaint, the Consent Decree filed with the Court, and other public records:

The defendants failed to ensure that the drinking water they supply to approximately 120,000 Westchester County residents complies with federal limits on potentially cancer-causing disinfection byproducts resulting from water treatment.  Specifically, the defendants own and/or operate a public water system (the “WJWW Water System”).  During the first, second, and third quarters of 2019, the WJWW Water System violated the SDWA and its Stage 2 Disinfectants and Disinfection Byproducts Rule (“Stage 2 DBPR”) because it supplied water exceeding legal limits for certain chemicals resulting from the disinfection process — specifically, five regulated haloacetic acids known as “HAA5.”  Although the WJWW Water System has taken certain short-term measures to mitigate risk to its consumers, defendants have failed to implement necessary corrective actions — including WJWW’s failure to construct and operate a filtration plant required by an EPA administrative order. 

Compliance with the SDWA is not only a public health necessity but also a matter of environmental justice.  At least one of the municipalities relying on defendants’ drinking water is overburdened and underserved, facing disproportionate environmental and other burdens.

The United States’ lawsuit seeks an injunction compelling defendants to comply with the SDWA and EPA’s administrative order, including by constructing a filtration plant, and civil monetary penalties.  The State of New York is contemporaneously joining the lawsuit to assert its own claims under state law and a previously entered state court judgment requiring the construction and operation of a filtration plant.

In the Consent Decree, the defendants admit, acknowledge, and accept responsibility for the following, among other matters:

• WJWW directly supplies water to approximately 60,000 individuals in the Town/Village of Harrison, the Village of Mamaroneck, and the Town of Mamaroneck, as well as portions of the City of Rye and the City of New Rochelle, and indirectly supplies drinking water to an additional approximately 60,000 residents of the Village of Larchmont, the City of Rye, the Village of Rye Brook, and the Village of Port Chester.
• EPA has set the “maximum contaminant level” for the five regulated disinfectant byproducts known as HAA5 at the level of 0.060 mg/L.
• In the first, second, and third quarters of 2019, the WJWW Water System contained water with levels of HAA5 in excess of 0.060 mg/L, as determined by testing performed by WJWW and reported to EPA.
• EPA issued an administrative order dated November 26, 2019, which required, among other things, that WJWW ensure the WJWW Water System’s compliance with the Stage 2 DBPR by constructing and operating a filtration plant by certain milestone dates.  The administrative order required construction to commence by January 1, 2022.
• WJWW has not yet commenced construction of, and does not operate, a filtration plant.

The Consent Decree requires defendants to build and commence operation of a filtration plant by July 1, 2029.  WJWW has publicly estimated the cost of the project to be $138 million.  The Consent Decree also establishes various interim deadlines for the construction project and requires WJWW to continue to implement measures to ensure the safety of its water supply until the filtration plant is operational.

The Consent Decree also requires WJWW to pay a $600,000 civil penalty to the United States and to spend at least $900,000 on a supplemental environmental project to modify an extended detention basin in the Rye Lake portion of the Kensico Reservoir and manage invasive species in the area.  This supplemental environmental project is expected to improve source water quality in the Reservoir by decreasing natural organic material and turbidity.

The Consent Decree resolves claims by New York to enforce a previous state judgment against WJWW for violating separate regulations requiring the implementation of filtration.  In addition to the construction of the filtration facility, the defendants will pay New York a $650,000 civil penalty and spend at least $6,800,000 on two state water quality benefit projects.

*                *                *

The Consent Decree is subject to public comment and approval by the Court.  Notice of the proposed Consent Decree will be published in the Federal Register, and the public will have the opportunity to submit comments on the Consent Decree for a period of at least 30 days before the parties seek the Court’s approval.

Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work on this matter.  He also thanked the New York State Department of Health and the New York Attorney General’s Office for their collaboration.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that DOMINIC FRANCIS LABIRAN, a citizen of the United Kingdom and Nigeria, was extradited Tuesday, June 18, from Benin.  LABIRAN was charged with participating in an international money laundering conspiracy between March and June of 2019.  LABIRAN was arrested in Benin on or about October 29, 2021, on an Interpol Red Notice and was presented and arraigned today before U.S. District Judge Katherine Polk Failla.

U.S. Attorney Damian Williams said: “As alleged, Dominic Francis Labiran participated in a conspiracy to launder millions of dollars.  This extradition not only highlights the effectiveness of global cooperation, but shows that no matter where they are or how long it takes, law enforcement will find and hold accountable those who engage in fraudulent schemes and money laundering.”

According to the allegations in the Indictment:[1]

Beginning in at least 2013, one of LABIRAN’s co-conspirators, Alade Kazeem Sodiq, a/k/a “Eluku,” and others defrauded financial institutions by falsely representing themselves as bank accountholders in order to conduct financial transactions without the consent of the true accountholders.  Beginning in or about January 2019, one of the participants in that scheme who had agreed to cooperate with law enforcement (“CW-1”) contacted Sodiq and said that CW-1 could fraudulently obtain funds from a U.S.-based business.  CW-1 told Sodiq that CW-1 needed bank accounts in the U.S. through which CW-1 could launder the criminal proceeds.  Sodiq agreed to provide bank accounts to CW-1 and introduced CW-1 to LABIRAN and another co-conspirator, Abdulai Kennedy Saaka, a/k/a “Kenny.”  LABIRAN and Sakka agreed to provide accounts in their names or over which they exercised control in exchange for a fee of nearly 50% of the money that passed through the accounts.  Law enforcement subsequently moved funds from a covert account to the designated accounts and then on to a second covert account, less the agreed-upon fees.

*                *                *

LABIRAN, 62, a citizen of the United Kingdom and Nigeria, is charged with conspiracy to commit money laundering and money laundering, each of 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 defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI.  He further thanked the Justice Department’s Office of International Affairs, the U.S. Embassy in Benin, and the Diplomatic Security Service, as well as authorities in Benin’s Ministry of Justice and Legislation and the Beninese Republican Police for their assistance in securing the defendant’s extradition from Benin.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Jonathan Rebold and Andrew Rohrbach 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 should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and Amaleka McCall-Brathwaite, the Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), announced today that the United States has settled a civil fraud lawsuit against CHRISTOS SPYROPOULOS; IOANNIS GEORGIADES; GALATIA ASPROU; ARISTOTELIS SPYROPOULOS; IORDANIS SPYROPOULOS; LIMANI 51, LLC; ESTIATORIO LIMANI LLC; LML HOSPITALITY LLC; ONIRO TAVERNA LLC; BC INTERNATIONAL GROUP, INC.; and BCI SERVICES LLC (collectively, the “Defendants”) for including false information in their applications for Paycheck Protection Program (“PPP”) loans, in violation of the False Claims Act.  The PPP, administered by the SBA, was created to provide forgivable loans to small businesses struggling to fund payroll and certain other qualifying business expenses because of the effects of the COVID-19 pandemic.  The settlement resolves claims that the Defendants—four restaurants located in New York, two companies based in New Jersey that  distribute, sell, and service fur apparel, and five individuals who owned/managed these businesses—inflated payroll figures in their PPP loan and forgiveness applications by, among other things, misrepresenting that family members and an acquaintance of the owners/managers were employed by the businesses when they were not, and listing the same individuals as “full-time employees” of multiple businesses. 

Under the settlement approved today by U.S. District Judge Edgardo Ramos, the Defendants will pay the U.S. $4,646,700.21 and have admitted and accepted responsibility for conduct alleged in the Government’s Complaint.  Specifically, the Defendants admitted that they misrepresented and inflated their payroll and employee headcounts in their PPP loan and forgiveness applications, and that they requested and received PPP loans for amounts that were substantially above what they were entitled to receive. 

U.S. Attorney Damian Williams said: “The Paycheck Protection Program was created to help struggling small businesses weather the worst moments of the COVID-19 pandemic.  These defendants submitted false information to artificially inflate the PPP loans they received.  This Office will continue to hold accountable those who engaged in fraud to secure pandemic relief funds for which they were not eligible.”

SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite said: “This settlement reinforces our unwavering commitment to protecting the integrity of SBA’s programs.  Wrongful practices, such as inflating payroll and employee numbers, divert essential funds from deserving businesses.  I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

As alleged in the Complaint filed in Manhattan federal court:

Under the PPP, eligible businesses could obtain SBA-guaranteed loans to spend on payroll costs, rent or mortgage, and other specified business expenses.  The amount of PPP funds a business was eligible to receive was determined by the number of individuals employed by the business and their average payroll costs.  Businesses applying for a PPP loan were required to provide documentation to confirm that they had in the past paid employees the compensation represented in the loan application.  In addition, the PPP loan application required businesses (through their authorized representatives) to acknowledge the PPP Rules and make certain affirmative certifications in order to be eligible to obtain the PPP loan.  The SBA also provided for forgiveness of PPP loans.  To receive forgiveness, borrowers were required to submit signed loan forgiveness applications and documents containing certain information and certifications. 

The six defendant companies applied for and received six first-draw PPP loans and six second-draw PPP loans for a total of more than $11.9 million, nearly all of which was fully forgiven.  The five individual defendants were involved in preparing the PPP loan and forgiveness applications and personally signed the applications on behalf of their companies.

The Defendants improperly inflated the PPP loan amounts and the amounts forgiven by falsely claiming that six family members and one acquaintance of the individual defendants were bona fide employees of the businesses when, in fact, they were not (and distributing the PPP funds to these “no show” employees); falsely claiming that three of the individual defendants were full-time employees of LIMANI 51 when, in fact, they were not; falsely claiming that individuals were full-time employees of multiple businesses and including their full salaries in the calculation of the loan and forgiveness amounts for each of those businesses; and mispresenting that they were entitled to forgiveness for wages paid to certain owners and employees that exceeded the maximum amount permitted under the PPP Rules.     

As part of the settlement, the Defendants admit, acknowledge, and accept responsibility for the following conduct:

• In their second-draw PPP loan application and first and second-draw PPP loan forgiveness applications, ESTIATORIO LIMANI, LIMANI 51, ONIRO TAVERNA, and LML HOSPITALITY misrepresented and inflated their payroll and employee headcounts by including wages attributable to six family members and an acquaintance of the individual defendants in the calculation of the PPP loan and PPP loan forgiveness amounts, even though the seven individuals were “no show” employees who never undertook any work for the corporate defendants and therefore were ineligible for consideration.
• In its second-draw PPP loan application and first and second-draw PPP loan forgiveness applications, LIMANI 51 misrepresented and inflated its payroll and employee headcounts by stating that three individual defendants were “full-time employees” of the entity when they were not.
• In their first-draw and second-draw PPP loan applications and PPP loan forgiveness applications, ESTIATORIO LIMANI, LIMANI 51, ONIRO TAVERNA, LML HOSPITALITY, BC INTERNATIONAL, and BCI SERVICES each misrepresented and inflated their payroll and headcounts by erroneously listing some of the same individuals as “full-time employees” of different companies and including their full wages in the PPP loan and forgiveness applications submitted for each of the companies.  For example, in BC INTERNATIONAL and BCI SERVICES’ second-draw PPP loan forgiveness applications, they each simultaneously listed 13 individuals as “full-time employees” of both companies—and sought forgiveness for the employees’ full wages at both companies—resulting in $481,240.42 of loan proceeds being paid to these individuals, which was an improper use of funds.
• BC INTERNATIONAL and BCI SERVICES misrepresented in their loan forgiveness applications for their first-draw and second-draw PPP loans that they were entitled to forgiveness for wages paid to their owners and certain employees that exceeded the maximum amount permitted under the PPP Rules.
• As a result of the above-referenced conduct and misrepresentations, each of the six defendant companies requested and received PPP loans for amounts that were substantially above what they were entitled to receive.  

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 SBA-OIG for its assistance with this case.

The case is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorney Adam M. Gitlin is in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced that DANZEL MACKINS, a/k/a “Putt,” and DARRIN SAMUELS, a/k/a “Klepto,” were sentenced today to 30 and 20 years in prison, respectively, for trafficking drugs, possessing firearms, and participating in the murder of Felton Durant, Jr. on April 25, 2021.  MACKINS and SAMUELS were members of a drug crew based in Brooklyn that distributed crack cocaine on a regular basis from 2019 to 2022.  MACKINS and SAMUELS both carried firearms in connection with their drug trafficking and participated in the killing of Durant, who was shot to death when MACKINS and SAMUELS, together with other members of their drug crew, set off across Brooklyn for the purpose of hunting down and killing the leader of a rival drug crew.  MACKINS previously pled guilty to drug trafficking conspiracy and firearms possession on November 28, 2023.  SAMUELS previously pled guilty to drug trafficking conspiracy on November 21, 2023.  U.S. District Judge Lewis A. Kaplan accepted both guilty pleas and imposed today’s sentences.

U.S. Attorney Damian Williams said: “On April 25, 2021, Felton Durant was shot to death in broad daylight on a weekend afternoon over a drug dispute.  Both Danzel Mackins and Darrin Samuels participated in that brutal killing, which took place in the middle of a busy public housing development in South Brooklyn.  Because of the hard work of the NYPD and the career prosecutors of this Office, Mackins and Samuels have now both been held responsible for this heinous crime.  I remain committed to devoting every resource needed to target gun violence in this City.  To be clear, as I have said before and will now say again, we are not going to give up any neighborhood, anywhere in this City to drug violence.”

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

From 2019 to 2022, MACKINS and SAMUELS were members of a drug crew that operated in the Brooklyn neighborhood of Bedford-Stuyvesant, selling large quantities of crack cocaine in retail transactions.  MACKINS and SAMUELS each carried firearms on multiple occasions in connection with their drug trafficking.  For example, in January 2020, MACKINS used a firearm to fire multiple shots at multiple fleeing persons on the street.  He later possessed additional firearms that the New York City Police Department (“NYPD”) seized from him in October 2020 and October 2021.  In August 2020, SAMUELS possessed a firearm that the NYPD seized from him together with a quantity of crack cocaine.  In addition, in April 2021, both MACKINS and SAMUELS were carrying firearms as they traveled within Brooklyn from Bedford-Stuyvesant to Red Hook, where they planned to locate and kill the leader of a rival drug crew.  Together with other members of their drug crew, MACKINS and SAMUELS found Durant — a member of the rival drug crew, but not the leader — and Durant was shot and killed on sight.  Later, in January 2022, while members of the NYPD attempted to arrest MACKINS for the charges in this case, MACKINS tried to flee law enforcement in a car, an attempt which ended when MACKINS ran into a 77-year-old woman, causing her grievous injury.

*                *                *

In addition to their prison terms, MACKINS, 32, of Brooklyn, New York, and SAMUELS, 36, of Brooklyn, New York, were sentenced to five years and three years of supervised release, respectively.

Mr. Williams praised the outstanding investigative work of the NYPD and thanked the Kings County District Attorney’s Office for its assistance in this case.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Thomas John Wright is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that PETER KHAIMOV, ALEXANDER GULKAROV, and ROMAN ISRAILOV were sentenced to 15 years, 12 years, and seven years in prison, respectively, by U.S. District Judge Paul G. Gardephe for crimes related to their orchestration of a $40 million fraud targeting No-Fault automobile insurance companies.  KHAIMOV previously pled guilty to one count of conspiracy to commit bribery, one count of conspiracy to commit healthcare fraud, and one count of conspiracy to commit money laundering and was sentenced on June 11, 2024.  GULKAROV previously pled guilty to one count of conspiracy to commit bribery, one count of conspiracy to commit healthcare fraud, and one count of aggravated identity theft and was sentenced on June 20, 2024.  ISRAILOV previously pled guilty to one count of conspiracy to commit healthcare fraud and one count of aggravated identity theft and was sentenced on May 23, 2024.

U.S. Attorney Damian Williams said: “Peter Khaimov, Alexander Gulkarov, and Roman Israilov organized one of the largest No-Fault insurance frauds in New York history, stealing $40 million through their operation of sham medical clinics and pharmacies.  By posing as legitimate medical providers, they exploited the system, prescribed unnecessary treatments, and jeopardized patient care.  This case exemplifies our relentless pursuit of justice against those who think they can outsmart the system, and I commend the FBI and our dedicated team of prosecutors for their outstanding work in dismantling this massive fraud operation.”

According to the Indictment, the Informations to which KHAIMOV, GULKAROV, and ISRAILOV pled guilty, their plea agreements, and statements made in court:  

New York and New Jersey No-Fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate and below a particular monetary threshold.  Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims without the need to bill the victims themselves.  This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes and the costs associated with an extended investigation of the accident. 

From 2014 through 2021, KHAIMOV, GULKAROV, and ISRAILOV (collectively, the “Clinic Controllers”) conspired to unlawfully own, run, and profit from medical clinics and pharmacies in the New York area.  KHAIMOV, GULKAROV, and ISRAILOV knew that clinics and pharmacies are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians.  They nonetheless agreed to submit bills to insurance companies falsely representing that the clinics were owned and operated by licensed medical practitioners, and for medical practitioners to lie under oath during Examinations under Oath (“EUOs”) about the ownership, control, and finances of the clinics.  KHAIMOV, GULKAROV, and ISRAILOV unlawfully obtained from insurance companies at least $40,000,000 as part of the scheme.

In connection with the scheme described above, KHAIMOV, GULKAROV, and ISRAILOV also arranged for medical practitioners, including physicians, to prescribe unnecessary medical treatments (including MRIs, EMG/NCV testing, spinal injections, and computerized radiologic mensuration analysis), unnecessary durable medical equipment (including cervical home traction devices and lumbar back support), and medically unnecessary medications (including prescription strength painkillers, topical creams, and topical gels).  KHAIMOV and GULKAROV received kickbacks from MRI facilities, pain management doctors, and other specialized care providers, who performed these unnecessary medical treatments.  KHAIMOV and GULKAROV further personally arranged for the unnecessary medications to be filled at pharmacies under the control of the conspirators.  

GULKAROV also overbilled insurance companies for treatments provided by medical practitioners.  In connection with the scheme, GULKAROV owned and operated a billing company, which submitted bills to insurance companies overstating the amount of time that practitioners spent treating patients.  The billing company also used improper, unlisted billing codes to bill insurance companies in excess of what is permitted under No-Fault regulations.

The Bribery Scheme

KHAIMOV, GULKAROV, and ISRAILOV further agreed to pay bribes in connection with the above-described scheme.  From at least 2014 through November 2019, they agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals for the confidential names and numbers of motor vehicle accident victims.  As part of the scheme, KHAIMOV, GULKAROV, and others provided approximately $150,000 for the creation of a call center that called victims and lied to them to induce victims to receive medical treatment at, among other places, clinics controlled by KHAIMOV, GULKAROV, and ISRAILOV.  KHAIMOV and GULKAROV further personally paid the operation of the call center hundreds of thousands of dollars in bribe payments in cash.

As part of the bribery scheme, KHAIMOV also personally attempted to recruit others to disclose confidential names and numbers of motor vehicle accident victims.  These people included, among others, a hospital employee.  KHAIMOV was ultimately unsuccessful because these other individuals refused to provide confidential information.

As part of the scheme, GULKAROV arranged for an New York City Police Department (“NYPD”) officer to provide confidential information from NYPD servers.  In particular, this officer sent GULKAROV over 400 photos of confidential NYPD motor vehicle accident reports using the encrypted messaging application, WhatsApp.  GULKAROV then re-transmitted the reports to others so that they could call patients, lie to them, and direct them to clinics controlled by KHAIMOV, GULKAROV, and ISRAILOV.

Money Laundering and Obstruction Conduct

KHAIMOV, GULKAROV, and ISRAILOV laundered the proceeds of the bribery and healthcare fraud from the bank accounts of the medical clinics and pharmacies to personal accounts using a variety of methods.  Among other things, KHAIMOV, GULKAROV, and ISRAILOV agreed to have medical practitioners sign blank checks from the clinics’ bank accounts, which KHAIMOV, GULKAROV, and ISRAILOV used to pay personal expenses such as luxury vacations around the world, expensive meals, jewelry, and parties.  GULKAROV also used the blank checks to pay for hundreds of thousands of dollars of construction-related expenses for a three-story, multimillion dollar home in Queens, New York.

KHAIMOV, GULKAROV, and ISRAILOV arranged for checks from the clinics’ bank accounts to be cashed at shell companies under their control or the control of co-conspirators.  Over two dozen of these shell companies were opened by foreign nationals, who entered the country on tourism visas, opened bank accounts for the shell companies, provided the debit cards to the co-conspirators, and then left the country.

KHAIMOV and GULKAROV additionally agreed to use the Wisnicki & Associates and Wisnicki Neuhauser (collectively, the “Wisnicki Firm”) to launder proceeds from the No-Fault scheme.  KHAIMOV and GULKAROV wrote over $150,000 in checks to the Wisnicki Firm from the No-Fault clinics’ bank accounts.  The Wisnicki Firm did not provide any legal services to the No-Fault clinics.  Instead, the Wisnicki Firm used this money to purchase real estate for KHAIMOV and another individual.  The conspirators deducted the payments to the Wisnicki Firm on the clinics’ tax returns as legal expenses.

In addition, GULKAROV engaged in a multi-month obstruction scheme beginning in February 2021.  In February and March 2021, the Government served grand jury subpoenas on the medical practitioners involved in the No-Fault scheme.  GULKAROV immediately contacted at least half-a-dozen of his co-conspirators and ordered them not to speak with law enforcement.  In return, GULKAROV gave his co-conspirators money to pay for attorneys.  GULKAROV also obtained the phones of multiple practitioners and deleted his communications with them from their devices. 

Thereafter, on or about April 1, 2021, the Government served a grand jury subpoena on the Wisnicki Firm for documentation surrounding the $150,000 in payments made from the clinics to the Wisnicki Firm.  GULKAROV agreed with others that the Wisnicki Firm would fabricate retainer agreements for transmission to the grand jury.  The fabricated retainer agreements, which were backdated to 2016 and 2017, falsely represented that the No-Fault clinics had retained the Wisnicki Firm for legal services.

During the following months, in or about April and May 2021, GULKAROV approached multiple medical practitioners and ordered them to sign the backdated, fabricated retainer agreements.  The medical practitioners complied.  GULKAROV also provided these medical practitioners with checks, written from the Wisnicki Firm, returning the purported “retainer fees” paid to the Wisnicki Firm.  GULKAROV ordered the medical practitioners to deposit the checks, withdraw the money in small cash increments, and return the cash to GULKAROV.  At least one medical practitioner complied.

Lastly, in or about early 2022, KHAIMOV approached a cooperating witness (the “CW”), who was the registered owner of one of KHAIMOV’s pharmacies.  KHAIMOV drove to the CW’s house and began honking his car horn outside.  The CW came out, at which point KHAIMOV told the CW that he heard the CW was speaking with law enforcement.  KHAIMOV instructed the CW to stop doing so.

*                *                *

KHAIMOV, 44, GULKAROV, 37, and ISRAILOV, 42, all of Queens, New York, were each sentenced to three years of supervised release, respectively, and they were each ordered to forfeit money judgments of $40,000,000.  The Court deferred determination of restitution.

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division.  Assistant U.S. Attorneys Mathew Andrews, Ryan Allison, and Timothy V. Capozzi are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal Fair Housing Act (“FHA”) lawsuit against TOLL BROTHERS, INC. and TOLL BROTHERS REALTY TRUST (collectively, “TOLL BROTHERS”), relating to their failure to design and construct new apartment buildings so as to be accessible to persons with physical disabilities.  The lawsuit also names certain TOLL BROTHERS affiliates as well as other entities that participated in the design or construction of these residential complexes, as well as a condominium association whose cooperation is essential to ensure retrofits.  Upon filing suit, the United States also submitted to the Court a proposed consent decree with LENDLEASE (US) CONSTRUCTION LMB, INC. f/k/a BOVIS LEND LEASE LMB, INC., (“LENDLEASE”), which participated in the design and construction of one such building.  This settlement is subject to the review and approval of the U.S. District Judge assigned to the case.

U.S. Attorney Damian Williams said: “This is the 19th suit that this Office has filed to remedy the failure of real estate developers to comply with the Fair Housing Act.  We appreciate Lendlease’s cooperation in taking responsibility for its actions so that more properties are more accessible to more people.  This Office will remain vigilant in ensuring that developers and architects comply with the FHA and remedy inaccessible housing in this District.”

The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities.

According to the allegations in the Complaint:

The inaccessible conditions at TOLL BROTHERS’ buildings include excessively high thresholds at building entrances and entrances to common use areas, common use bathrooms that lack grab bars, excessively high thresholds at entrances to individual apartments and within the apartments, and bathrooms in individual apartments that lack sufficient clear floor space for people who use wheelchairs.  These features in the common use areas of TOLL BROTHERS’ buildings, as well as in the buildings’ apartment interiors, did not meet the specifications set forth in the Fair Housing Accessibility Guidelines, Design Guidelines for Accessible/Adaptable Dwellings.

The Complaint identifies, by way of example, inaccessible conditions at the following five properties:

• The Sutton, at 959 First Avenue, New York, New York 10022.

• 49 North 8th Street, Brooklyn, New York 11211 (“North 8th”).  Based upon an investigation by the Department of Housing and Urban Development (“HUD”), the Complaint names several entities as defendants that were involved in the design and construction of North 8th: LENDLEASE (with whom, as noted above, the Government has reached an agreement subject to Court approval); GREENBERGFARROW ARCHITECTS; TOLL LAND XIII LIMITED PARTNER; TOLL NORTHEAST LP COMPANY, INC.; and NORTH8 CONDOMINIUM ASSOCIATION, INC., which has been named as a defendant not because it created the accessible conditions but because its cooperation is essential to making retrofits to the property.

• 3000 Goldfinch Boulevard in Princeton, New Jersey (“Parc at Princeton Junction”).  The Complaint names TB PRINCETON VILLAGE LLC as a developer of the Parc at Princeton Junction.

• 134 Plymouth Road in Plymouth Meeting, Pennsylvania (“Parc Plymouth Meeting”).  The Complaint names TB-BDN PLYMOUTH APARTMENTS as a developer of Parc Plymouth Meeting.

• 10 Provost Street, Jersey City, New Jersey 07302.

Similar inaccessible conditions existed at nine additional properties: Emerson at Edge on the Hudson, 203 Legend Drive, in Sleepy Hollow, New York; 160 Morgan Street in Jersey City, New Jersey; 527 Old Bridge Turnpike in East Brunswick, New Jersey; 900 Wessex Place in Princeton, New Jersey; 45 North Main Street in Phoenixville, Pennsylvania; 275 2nd Avenue in Needham, Massachusetts; 2150 Astoria Circle in Herndon, Virginia; and 1011 1st Street, SE and 200 K Street, NE in Washington, D.C.

Due to the inaccessible conditions at the buildings they designed and constructed, TOLL BROTHERS engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and denied such rights to people with disabilities.  The Complaint seeks a court order directing TOLL BROTHERS to retrofit individual apartments as well as the public and common use areas of the buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate people who suffered discrimination due to the inaccessible conditions.

Under the settlement with LENDLEASE, LENDLEASE agreed to establish procedures to ensure FHA compliance at future development projects and agreed to institute policies and training to ensure that their employees and agents will comply with the FHA’s accessibility requirements.  LENDLEASE also agreed to pay a civil penalty of $10,000, commensurate with its role in designing and/or constructing North 8th.

People who believe they may have experienced discrimination due to the inaccessible conditions at the above-named buildings developed by TOLL BROTHERS may contact the Civil Rights Complaint account at USANYS-CivilRights@usdoj.gov, use the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to: 

U.S. Attorney’s Office, Southern District of New York 

86 Chambers Street, 3rd Floor 

New York, New York 10007 

Attention: Chief, Civil Rights Unit

The suit against TOLL BROTHERS is the 19th lawsuit filed by this Office with developers and architects to remedy inaccessible housing in this District, including suits against The Durst Organization, Glenwood Management, Silverstein Properties, Related Companies, and Atlantic Development.

*                *                *

Mr. Williams thanked HUD for its assistance on the investigation.

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

Damian Williams, the United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrests of JOSE RIVERA and JOMAR CRESPO for the armed carjacking of the personal vehicle used by a Sergeant for the NYPD.  During the incident, both RIVERA and CRESPO brandished firearms, including a .40-caliber Glock with a “switch” that converts the semiautomatic pistol into an automatically firing machinegun and a 9-millimeter Glock with an extended magazine.  The defendants were arrested on June 15, 2024, in Manhattan and presented yesterday before U.S. Magistrate Judge James L. Cott.

U.S. Attorney Damian Williams said: “As alleged, armed with a machinegun and semi-automatic handgun, both with extended magazines, the defendants committed a brazen and terrifying act of violence against a member of law enforcement when they stole his car at gunpoint.  Whether cop or civilian, anyone victimized by this sort of crime can count on my Office to seek swift justice.”

ATF Special Agent in Charge Bryan Miller said: “Carjacking is an extreme act of violence that terrorizes communities and senselessly puts innocent lives in danger.  I thank the men and women of the ATF/NYPD Joint Firearms Task Force, the NYPD, as well as the U.S. Attorney’s Office for the Southern District of NY for bringing these individuals swiftly to justice.  We will expend all necessary resources to ensure that offenders like these defendants are quickly brought to justice and punished to the maximum extent of the law.  ATF will continue to work diligently with our local, state, and federal partners to keep our streets safe.”

NYPD Commissioner Edward A. Caban said: “The NYPD’s swift apprehension of the men who allegedly committed this brazen armed carjacking should serve as a warning to others that criminal acts in New York City will never be tolerated.  I thank the prosecutors in the office of the U.S. Attorney for the Southern District for their steadfast partnership and for demonstrating that egregious affronts to public safety will always face the strictest of consequences.”  

According to the allegations in the Complaint and statements made in public court proceedings:1

On the evening of June 14, 2024, in Harlem, JOSE RIVERA and JOMAR CRESPO committed a gunpoint carjacking during which they stole the personal vehicle (the “Car”) of an NYPD Sergeant (the “Victim”).  Specifically, RIVERA and CRESPO approached the Victim’s Car from behind, one on the driver’s side and the other on the passenger’s side.  Both RIVERA and CRESPO wore black clothing and facemasks, and both brandished handguns at the Victim.  After ordering the Victim to turn over his keys, RIVERA and CRESPO drove off in the Car, traveling to the vicinity of West 138th Street and Broadway, where RIVERA and CRESPO were captured on various surveillance cameras, as seen below:

NYPD officers apprehended RIVERA and CRESPO after a foot chase, during which they discarded two firearms (“Firearm-1” and “Firearm-2,” respectively).  Firearm-1 was determined to be a loaded Glock 27 .40-caliber pistol equipped with what appears to be a Glock automatic switch device (the “Glock Switch”), which, if operable, would cause Firearm-1 to automatically shoot more than one shot by a single function of trigger.  Firearm-2 was determined to be a loaded Glock 17 9-millimeter pistol with an extended magazine that could hold up to approximately 30 rounds of ammunition.  Both Firearm-1 and Firearm-2 had flashlights mounted beneath their barrels.  Photographs of Firearm-1 and Firearm-2 appear below:            

*                *                *

JOSE RIVERA, 20, and JOMAR CRESPO, 21, both of Waterbury, Connecticut, are charged with carjacking, which carries a maximum potential sentence of 15 years in prison; using and carrying firearms, including a machinegun, during and in relation to the carjacking, which carries a mandatory minimum sentence of 30 years in prison and a maximum potential sentence of life in prison; and possessing a machinegun, which carries a maximum potential sentence of 10 years in prison.

The statutory minimum and maximum sentences are prescribed by Congress and 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 ATF, the NYPD, and NYPD Task Force Officers from the Special Investigations Division assigned to the Southern District of New York.   

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Frank Balsamello and Marguerite B. Colson are in charge of the prosecution.

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

1 As the introductory phrase signifies, the 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 that JASON SKEET was sentenced to 37 months in prison for conspiring to smuggle contraband to inmates at Rikers Island in exchange for bribes between January 2020 and June 2022.  SKEET smuggled contraband, including marijuana, to inmates approximately 100 times during that period.  SKEET previously pled guilty to conspiracy to commit bribery before U.S. District Judge Jennifer H. Rearden, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Jason Skeet flagrantly abused his position of public trust by repeatedly smuggling contraband to inmates in exchange for bribes.  Rikers Island is less safe, for inmates and officers alike, when corrections officers accept bribes to smuggle contraband.  This prosecution and today’s sentence reflect this Office’s commitment to bring accountability to those in the corrections system who abuse their positions of trust.”   

According to the Complaint, the Information, court filings, and public court proceedings:

From approximately January 2020 through June 2022, the defendant conspired with others to smuggle contraband, including marijuana, cigarettes, and food, to inmates housed at the Northern Infirmary Command on Rikers Island in exchange for bribes.  The defendant smuggled contraband for inmates housed on Rikers Island approximately 100 times between the start of the COVID-19 pandemic and June 2022 in exchange for tens of thousands of dollars in bribe payments. 

For example, on April 20 and May 9, 2022, an inmate (“Inmate-1”), using a contraband cellphone, texted the defendant requesting cigarettes and marijuana.  On each occasion, SKEET agreed to smuggle in the contraband in exchange for $1,000, and Inmate-1 proceeded to transfer $1,000 via CashApp into an account identified by SKEET.  With respect to the May 9, 2022, contraband request, SKEET, referencing two Ziploc bags containing marijuana, texted Inmate-1, in part, “two BIG zip coming your way.”  The contraband cellphone used by Inmate-1 was later recovered by law enforcement and found to contain the below photographs, taken only a few days after SKEET agreed to smuggle bags of marijuana for Inmate-1. 

SKEET later acknowledged during a voluntary interview with law enforcement officers that he smuggled contraband to inmates on Rikers Island approximately 100 times since the start of the pandemic in exchange for bribes. 

In imposing a sentence at the top of the advisory Sentencing Guidelines range, Judge Rearden remarked that SKEET’s “conduct was serious and dangerous and reflected an extraordinary lack of respect for the law.”

*                *                *

In addition to the prison term, SKEET, 46, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to forfeit $45,644.

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

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Adam Z. Margulies, Jonathan E. Rebold, and Derek Wikstrom are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction of RICARDO FERGUSON, a/k/a “Maybach,” for the December 5, 2021, murder of Robert Brown, Sr. inside of the Aqueduct Park walkway in the University Heights neighborhood of the Bronx.  FERGUSON shot Brown in the head and attempted to steal crack cocaine and money from Brown’s pockets during a dispute over drug sales.  The defendant was found guilty following a six-day trial before U.S. District Judge Richard M. Berman. 

U.S. Attorney Damian Williams said: “Ricardo Ferguson murdered Robert Brown, Sr. by shooting him in the head in the middle of a New York City park in broad daylight.  Today’s conviction sends an important message to drug dealers who commit violent crimes that they will be apprehended and prosecuted to the full extent of the law.”

According to the allegations in the Indictment and evidence at trial:

FERGUSON and others participated in a conspiracy to distribute crack cocaine in the vicinity of the Aqueduct Park walkway in the University Heights neighborhood of the Bronx.  In the months leading up to the murder, FERGUSON and his co-conspirators threatened Robert Brown, Sr. because Brown had been selling bags containing larger quantities of crack cocaine than the other dealers in the park.  On December 5, 2021, FERGUSON and a co-conspirator attacked and attempted to rob Brown in the Aqueduct Park walkway.  During the attempted robbery, FERGUSON pulled out a gun and shot Brown in the head.  Brown was 63 years old at the time of the murder.

*                *                *

FERGUSON, 38, of the Bronx, New York, was convicted today of conspiracy to distribute crack cocaine, which carries a maximum sentence of 20 years in prison; attempted Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; murder through the use of a firearm, which carries a maximum sentence of life in prison; and using and carrying a firearm in furtherance of drug trafficking, which was brandished and discharged, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  FERGUSON is scheduled to be sentenced by Judge Berman on October 9, 2024.

Mr. Williams praised the outstanding investigative work of the New York City Police Department (“NYPD”), the Special Agents and NYPD Task Force Officers from the Special Investigations Division assigned to the Southern District of New York, and the New York/New Jersey High Intensity Drug Trafficking Area analysts.

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Dominic Gentile, Jun Xiang, Mathew Andrews, and Peter Davis are in charge of the prosecution, with the assistance of Paralegal Specialist Ananya Sankar.

ਇੱਕ ਭਾਰਤੀ ਨਾਗਰਿਕ ਨੂੰ ਕਿਰਾਏ ਦੇ ਬਦਲੇ ਕਤਲ ਦੇ ਦੋਸ਼ਾਂ ਦਾ ਸਾਹਮਣਾ ਕਰਨ ਲਈ ਚੈੱਕ ਗਣਰਾਜ ਤੋਂ ਸੰਯੁਕਤ ਰਾਜ ਅਮਰੀਕਾ ਹਵਾਲੇ ਕੀਤਾ ਗਿਆ ਸੀ।

ਨਿਖਿਲ ਗੁਪਤਾ, ਜਿਸਨੂੰ ਨਿਕ, 53, ਇੱਕ ਭਾਰਤੀ ਨਾਗਰਿਕ ਵਜੋਂ ਵੀ ਜਾਣਿਆ ਜਾਂਦਾ ਹੈ, ਨੂੰ 30 ਜੂਨ, 2023 ਨੂੰ ਚੈੱਕ ਗਣਰਾਜ ਵਿੱਚ ਗ੍ਰਿਫਤਾਰ ਕੀਤਾ ਗਿਆ ਸੀ ਅਤੇ ਨਜ਼ਰਬੰਦ ਕੀਤਾ ਗਿਆ ਸੀ, ਅਤੇ ਸੰਯੁਕਤ ਰਾਜ ਅਤੇ ਚੈੱਕ ਗਣਰਾਜ ਵਿਚਕਾਰ ਦੁਵੱਲੀ ਹਵਾਲਗੀ ਸੰਧੀ ਦੇ ਅਨੁਸਾਰ ਹਵਾਲਗੀ ਕਰ ਦਿੱਤੀ ਗਈ ਸੀ। ਗੁਪਤਾ 14 ਜੂਨ ਨੂੰ ਅਮਰੀਕਾ ਪਹੁੰਚੇ ਸਨ ਅਤੇ ਅੱਜ ਉਨ੍ਹਾਂ ਨੂੰ ਦੋਸ਼ਾਂ ਤਹਿਤ ਪੇਸ਼ ਕੀਤਾ ਗਿਆ।

ਅਟਾਰਨੀ ਜਨਰਲ ਮੈਰਿਕ ਬੀ. ਗਾਰਲੈਂਡ ਨੇ ਕਿਹਾ, “ਇਹ ਹਵਾਲਗੀ ਸਪੱਸ਼ਟ ਕਰਦਾ ਹੈ ਕਿ ਨਿਆਂ ਵਿਭਾਗ ਅਮਰੀਕੀ ਨਾਗਰਿਕਾਂ ਨੂੰ ਚੁੱਪ ਕਰਵਾਉਣ ਜਾਂ ਨੁਕਸਾਨ ਪਹੁੰਚਾਉਣ ਦੀਆਂ ਕੋਸ਼ਿਸ਼ਾਂ ਨੂੰ ਬਰਦਾਸ਼ਤ ਨਹੀਂ ਕਰੇਗਾ”। ਨਿਖਿਲ ਗੁਪਤਾ ਨੂੰ ਹੁਣ ਭਾਰਤ ਵਿੱਚ ਸਿੱਖ ਵੱਖਵਾਦੀ ਅੰਦੋਲਨ ਦੇ ਸਮਰਥਨ ਲਈ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਨੂੰ ਨਿਸ਼ਾਨਾ ਬਣਾਉਣ ਅਤੇ ਉਸ ਦੀ ਹੱਤਿਆ ਕਰਨ ਲਈ, ਭਾਰਤ ਸਰਕਾਰ ਦੇ ਇੱਕ ਕਰਮਚਾਰੀ ਦੁਆਰਾ ਨਿਰਦੇਸ਼ਤ ਇੱਕ ਕਥਿਤ ਸਾਜ਼ਿਸ਼ ਵਿੱਚ ਸ਼ਾਮਲ ਹੋਣ ਲਈ ਇੱਕ ਅਮਰੀਕੀ ਅਦਾਲਤ ਵਿੱਚ ਨਿਆਂ ਦਾ ਸਾਹਮਣਾ ਕਰਨਾ ਪਵੇਗਾ। ਮੈਂ ਵਿਭਾਗ ਦੇ ਏਜੰਟਾਂ ਦਾ ਧੰਨਵਾਦੀ ਹਾਂ ਜਿਨ੍ਹਾਂ ਨੇ ਇਸ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਨੂੰ ਨਾਕਾਮ ਕੀਤਾ ਅਤੇ ਇਸ ਗ੍ਰਿਫਤਾਰੀ ਅਤੇ ਹਵਾਲਗੀ ਵਿੱਚ ਸਹਾਇਤਾ ਲਈ ਸਾਡੇ ਚੈੱਕ ਭਾਈਵਾਲਾਂ ਦਾ।

ਡਿਪਟੀ ਨੇ ਕਿਹਾ, "ਭਾਰਤੀ ਕਤਲ ਦੀ ਇਹ ਸਾਜ਼ਿਸ਼ - ਕਥਿਤ ਤੌਰ 'ਤੇ ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਨੂੰ ਮਾਰਨ ਲਈ ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਕਰਮਚਾਰੀ ਦੁਆਰਾ ਰਚੀ ਗਈ ਸੀ - ਇੱਕ ਉੱਚਤਮ ਅਮਰੀਕੀ ਅਧਿਕਾਰ ਦੀ ਵਰਤੋਂ ਕਰਨ ਲਈ ਇੱਕ ਰਾਜਨੀਤਿਕ ਕਾਰਕੁਨ ਨੂੰ ਚੁੱਪ ਕਰਾਉਣ ਦੀ ਬੇਸ਼ਰਮੀ ਦੀ ਕੋਸ਼ਿਸ਼ ਸੀ: ਉਸਦੀ ਬੋਲਣ ਦੀ ਆਜ਼ਾਦੀ," ਡਿਪਟੀ ਨੇ ਕਿਹਾ। ਅਟਾਰਨੀ ਜਨਰਲ ਲੀਜ਼ਾ ਮੋਨਾਕੋ। “ਮੁਦਾਇਕ ਦੀ ਹਵਾਲਗੀ ਨਿਆਂ ਵੱਲ ਇੱਕ ਮਹੱਤਵਪੂਰਨ ਕਦਮ ਹੈ, ਅਤੇ ਮੈਂ ਇਸ ਮਾਮਲੇ ਵਿੱਚ ਸਹਾਇਤਾ ਲਈ ਸਾਡੇ ਚੈੱਕ ਭਾਈਵਾਲਾਂ ਦਾ ਧੰਨਵਾਦੀ ਹਾਂ। ਅਸੀਂ ਇੱਥੇ ਜਾਂ ਵਿਦੇਸ਼ ਵਿੱਚ ਅਮਰੀਕੀ ਨਾਗਰਿਕਾਂ ਨੂੰ ਨੁਕਸਾਨ ਪਹੁੰਚਾਉਣ ਦੀ ਕੋਸ਼ਿਸ਼ ਕਰਨ ਵਾਲਿਆਂ ਦੀ ਪਛਾਣ ਕਰਨ, ਵਿਘਨ ਪਾਉਣ ਅਤੇ ਜਵਾਬਦੇਹ ਬਣਾਉਣ ਲਈ ਲਗਾਤਾਰ ਕੰਮ ਕਰਨਾ ਜਾਰੀ ਰੱਖਾਂਗੇ।”

FBI ਦੇ ਡਾਇਰੈਕਟਰ ਕ੍ਰਿਸਟੋਫਰ ਵੇਅ ਨੇ ਕਿਹਾ, "ਇਸ ਮੁਦਾਲਾ ਨੂੰ ਅਮਰੀਕੀ ਧਰਤੀ 'ਤੇ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਦੀ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਵਿੱਚ ਉਸਦੀ ਕਥਿਤ ਭੂਮਿਕਾ ਲਈ ਹਵਾਲਗੀ ਕਰ ਦਿੱਤੀ ਗਈ ਹੈ”। "FBI ਵਿਦੇਸ਼ੀ ਨਾਗਰਿਕਾਂ, ਜਾਂ ਇਸ ਮਾਮਲੇ ਲਈ ਕਿਸੇ ਹੋਰ ਦੁਆਰਾ, ਸੰਯੁਕਤ ਰਾਜ ਵਿੱਚ ਸੰਵਿਧਾਨਕ ਤੌਰ 'ਤੇ ਸੁਰੱਖਿਅਤ ਆਜ਼ਾਦੀਆਂ ਨੂੰ ਦਬਾਉਣ ਦੀਆਂ ਕੋਸ਼ਿਸ਼ਾਂ ਨੂੰ ਬਰਦਾਸ਼ਤ ਨਹੀਂ ਕਰੇਗੀ। ਅਸੀਂ ਆਪਣੇ ਨਾਗਰਿਕਾਂ ਅਤੇ ਇਨ੍ਹਾਂ ਪਵਿੱਤਰ ਅਧਿਕਾਰਾਂ ਦੀ ਰੱਖਿਆ ਲਈ ਦੇਸ਼ ਅਤੇ ਵਿਦੇਸ਼ ਵਿੱਚ ਆਪਣੇ ਭਾਈਵਾਲਾਂ ਨਾਲ ਕੰਮ ਕਰਨਾ ਜਾਰੀ ਰੱਖਾਂਗੇ।”

ਨਿਊਯਾਰਕ ਦੇ ਦੱਖਣੀ ਜ਼ਿਲ੍ਹੇ ਲਈ ਅਮਰੀਕੀ ਅਟਾਰਨੀ ਡੈਮਿਅਨ ਵਿਲੀਅਮਜ਼ ਨੇ ਕਿਹਾ, "ਜਿਵੇਂ ਕਿ ਕਥਿਤ ਤੌਰ 'ਤੇ, ਬਚਾਓ ਪੱਖ ਨੇ ਭਾਰਤ ਤੋਂ ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਕਰਮਚਾਰੀ ਦੇ ਨਾਲ ਇੱਥੇ ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ, ਭਾਰਤੀ ਮੂਲ ਦੇ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਦੇ ਖਿਲਾਫ ਇੱਕ ਅਸਫਲ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚੀ ਸੀ।" “ਅੱਜ ਦੀ ਹਵਾਲਗੀ ਉਨ੍ਹਾਂ ਲੋਕਾਂ ਦੀ ਜਾਂਚ, ਅਸਫਲ ਅਤੇ ਮੁਕੱਦਮਾ ਚਲਾਉਣ ਦੇ ਸਾਡੇ ਅਟੱਲ ਸੰਕਲਪ ਨੂੰ ਸਪੱਸ਼ਟ ਕਰਦੀ ਹੈ ਜੋ ਇੱਥੇ ਅਤੇ ਹੋਰ ਕਿਤੇ ਅਮਰੀਕੀ ਨਾਗਰਿਕਾਂ ਨੂੰ ਨੁਕਸਾਨ ਪਹੁੰਚਾਉਣ ਅਤੇ ਚੁੱਪ ਕਰਵਾਉਣ ਦੀ ਕੋਸ਼ਿਸ਼ ਕਰਦੇ ਹਨ। ਅਸੀਂ ਇਸ ਹਵਾਲਗੀ ਵਿੱਚ ਸਾਡੇ ਚੈੱਕ ਸਰਕਾਰ ਦੇ ਹਮਰੁਤਬਾ ਦੇ ਨਜ਼ਦੀਕੀ ਸਹਿਯੋਗ ਲਈ ਧੰਨਵਾਦ ਕਰਦੇ ਹਾਂ”।

“ਪਿਛਲੇ ਸਾਲ, ਡੀਈਏ ਨੇ ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਕਰਮਚਾਰੀ ਅਤੇ ਇੱਕ ਅੰਤਰਰਾਸ਼ਟਰੀ ਨਸ਼ੀਲੇ ਪਦਾਰਥਾਂ ਦੇ ਤਸਕਰ ਨਿਖਿਲ ਗੁਪਤਾ ਦੁਆਰਾ ਰਚੀ ਗਈ ਇੱਕ ਹੱਤਿਆ ਦੀ ਸਾਜਿਸ਼ ਦਾ ਪਰਦਾਫਾਸ਼ ਕੀਤਾ ਸੀ। ਗੁਪਤਾ 'ਤੇ ਦੋਸ਼ ਹੈ ਕਿ ਉਸ ਨੇ ਅਮਰੀਕਾ ਦੀ ਧਰਤੀ 'ਤੇ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਦੀ ਹੱਤਿਆ ਕਰਨ ਦੀ ਖ਼ਤਰਨਾਕ ਸਾਜ਼ਿਸ਼ ਰਚੀ ਸੀ। DEA ਦੀ ਪਹਿਲੀ ਤਰਜੀਹ ਹਮੇਸ਼ਾ ਅਮਰੀਕੀ ਲੋਕਾਂ ਦੀ ਸਿਹਤ ਅਤੇ ਸੁਰੱਖਿਆ ਹੁੰਦੀ ਹੈ,” DEA ਪ੍ਰਸ਼ਾਸਕ ਐਨੀ ਮਿਲਗ੍ਰਾਮ ਨੇ ਕਿਹਾ। “ਇਹ ਹਵਾਲਗੀ DEA ਨਿਊਯਾਰਕ ਡਿਵੀਜ਼ਨ ਦੀ ਡਰੱਗ ਇਨਫੋਰਸਮੈਂਟ ਟਾਸਕ ਫੋਰਸ ਦੀ ਸਖ਼ਤ ਮਿਹਨਤ ਅਤੇ ਵਚਨਬੱਧਤਾ ਦਾ ਨਤੀਜਾ ਹੈ, ਜਿਸ ਵਿੱਚ DEA, ਨਿਊਯਾਰਕ ਸਟੇਟ ਪੁਲਿਸ, ਅਤੇ ਨਿਊਯਾਰਕ ਸਿਟੀ ਪੁਲਿਸ ਵਿਭਾਗ ਸ਼ਾਮਲ ਹਨ। ਇਹ ਕੇਸ DEA ਦੁਆਰਾ ਵਿਸ਼ਵ ਭਰ ਵਿੱਚ ਸਾਡੇ ਕਾਨੂੰਨ ਲਾਗੂ ਕਰਨ ਵਾਲੇ ਭਾਈਵਾਲਾਂ, ਜਿਵੇਂ ਕਿ ਚੈੱਕ ਗਣਰਾਜ ਦੇ ਨੈਸ਼ਨਲ ਡਰੱਗ ਹੈੱਡਕੁਆਰਟਰ, ਅਤੇ ਨਾਲ ਹੀ ਇੱਥੇ ਘਰ ਵਿੱਚ ਸਾਡੇ ਸੰਘੀ ਕਾਨੂੰਨ ਲਾਗੂ ਕਰਨ ਵਾਲੇ ਭਾਈਵਾਲਾਂ ਨਾਲ ਬਣਾਈਆਂ ਗਈਆਂ ਭਾਈਵਾਲੀ ਦਾ ਪ੍ਰਮਾਣ ਵੀ ਹੈ।"

ਅਦਾਲਤੀ ਦਸਤਾਵੇਜ਼ਾਂ ਦੇ ਅਨੁਸਾਰ, ਪਿਛਲੇ ਸਾਲ, ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਕਰਮਚਾਰੀ (CC-1) ਨੇ ਇੱਕ ਅਟਾਰਨੀ ਅਤੇ ਰਾਜਨੀਤਿਕ ਕਾਰਕੁਨ, ਜੋ ਕਿ ਭਾਰਤੀ ਮੂਲ ਦਾ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਹੈ, ਦੇ ਖਿਲਾਫ ਇੱਕ ਕਤਲ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚਣ ਲਈ ਭਾਰਤ ਅਤੇ ਹੋਰ ਥਾਵਾਂ 'ਤੇ ਗੁਪਤਾ ਅਤੇ ਹੋਰਾਂ ਨਾਲ ਮਿਲ ਕੇ ਕੰਮ ਕੀਤਾ ਸੀ।

ਗੁਪਤਾ ਇੱਕ ਭਾਰਤੀ ਨਾਗਰਿਕ ਹੈ ਜੋ ਭਾਰਤ ਵਿੱਚ ਰਹਿੰਦਾ ਹੈ, CC-1 ਦਾ ਇੱਕ ਸਹਿਯੋਗੀ ਹੈ, ਅਤੇ ਉਸਨੇ CC-1 ਅਤੇ ਹੋਰਾਂ ਨਾਲ ਆਪਣੇ ਸੰਚਾਰ ਵਿੱਚ ਅੰਤਰਰਾਸ਼ਟਰੀ ਨਸ਼ੀਲੇ ਪਦਾਰਥਾਂ ਅਤੇ ਹਥਿਆਰਾਂ ਦੀ ਤਸਕਰੀ ਵਿੱਚ ਆਪਣੀ ਸ਼ਮੂਲੀਅਤ ਦਾ ਵਰਣਨ ਕੀਤਾ ਹੈ। CC-1 ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਏਜੰਸੀ ਦਾ ਕਰਮਚਾਰੀ ਹੈ ਜਿਸਨੇ ਆਪਣੇ ਆਪ ਨੂੰ "ਸੁਰੱਖਿਆ ਪ੍ਰਬੰਧਨ" ਅਤੇ "ਖੁਫੀਆ" ਵਿੱਚ ਜ਼ਿੰਮੇਵਾਰੀਆਂ ਦੇ ਨਾਲ "ਸੀਨੀਅਰ ਫੀਲਡ ਅਫਸਰ" ਵਜੋਂ ਦਰਸਾਇਆ ਹੈ ਅਤੇ ਭਾਰਤ ਦੇ ਕੇਂਦਰੀ ਰਿਜ਼ਰਵ ਪੁਲਿਸ ਬਲ ਵਿੱਚ ਪਹਿਲਾਂ ਸੇਵਾ ਕਰਨ ਅਤੇ "ਅਧਿਕਾਰੀ [] ਸਿਖਲਾਈ ਪ੍ਰਾਪਤ ਕਰਨ ਦਾ ਹਵਾਲਾ ਦਿੱਤਾ ਹੈ”। "ਲੜਾਈ ਕਰਾਫਟ" ਅਤੇ "ਹਥਿਆਰਾਂ" ਵਿੱਚ। CC-1 ਨੇ ਭਾਰਤ ਤੋਂ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚੀ ਸੀ।

ਮਈ 2023 ਵਿੱਚ ਜਾਂ ਇਸ ਦੇ ਲਗਭਗ, CC-1 ਨੇ ਯੂ.ਐੱਸ. ਵਿੱਚ ਪੀੜਤ ਦੀ ਹੱਤਿਆ ਨੂੰ ਅੰਜਾਮ ਦੇਣ ਲਈ ਗੁਪਤਾ ਨੂੰ ਭਰਤੀ ਕੀਤਾ, ਪੀੜਤ ਭਾਰਤ ਸਰਕਾਰ ਦੀ ਇੱਕ ਜ਼ਬਰਦਸਤ ਆਲੋਚਕ ਹੈ ਅਤੇ ਇੱਕ ਯੂਐਸ-ਅਧਾਰਤ ਸੰਗਠਨ ਦੀ ਅਗਵਾਈ ਕਰਦੀ ਹੈ ਜੋ ਉੱਤਰੀ ਰਾਜ, ਪੰਜਾਬ ਦੇ ਵੱਖ ਹੋਣ ਦੀ ਵਕਾਲਤ ਕਰਦੀ ਹੈ। ਭਾਰਤ ਜੋ ਸਿੱਖਾਂ ਦੀ ਇੱਕ ਵੱਡੀ ਆਬਾਦੀ ਦਾ ਘਰ ਹੈ, ਭਾਰਤ ਵਿੱਚ ਇੱਕ ਨਸਲੀ ਧਾਰਮਿਕ ਘੱਟ ਗਿਣਤੀ ਸਮੂਹ। ਪੀੜਤ ਨੇ ਜਨਤਕ ਤੌਰ 'ਤੇ ਕੁਝ ਜਾਂ ਪੂਰੇ ਪੰਜਾਬ ਨੂੰ ਭਾਰਤ ਤੋਂ ਵੱਖ ਕਰਨ ਅਤੇ ਖਾਲਿਸਤਾਨ ਨਾਮਕ ਸਿੱਖ ਪ੍ਰਭੂਸੱਤਾ ਸੰਪੰਨ ਰਾਜ ਸਥਾਪਤ ਕਰਨ ਲਈ ਕਿਹਾ ਹੈ, ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਨੇ ਪੀੜਤ ਅਤੇ ਉਸਦੀ ਵੱਖਵਾਦੀ ਸੰਗਠਨ ਨੂੰ ਭਾਰਤ ਤੋਂ ਪਾਬੰਦੀ ਲਗਾ ਦਿੱਤੀ ਹੈ।

CC-1 ਦੇ ਨਿਰਦੇਸ਼ਾਂ 'ਤੇ, ਗੁਪਤਾ ਨੇ ਇੱਕ ਵਿਅਕਤੀ ਨਾਲ ਸੰਪਰਕ ਕੀਤਾ ਜਿਸਨੂੰ ਗੁਪਤਾ ਇੱਕ ਅਪਰਾਧਿਕ ਸਹਿਯੋਗੀ ਮੰਨਦਾ ਸੀ ਪਰ ਅਸਲ ਵਿੱਚ ਉਹ ਇੱਕ ਗੁਪਤ ਸਰੋਤ ਸੀ ਜੋ DEA (CS) ਨਾਲ ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਪੀੜਤ ਨੂੰ ਕਤਲ ਕਰਨ ਲਈ ਇੱਕ ਹਿੱਟਮੈਨ ਨੂੰ ਕਰਾਰ ਦੇਣ ਵਿੱਚ ਸਹਾਇਤਾ ਲਈ ਕੰਮ ਕਰ ਰਿਹਾ ਸੀ। CS ਨੇ ਗੁਪਤਾ ਦੀ ਜਾਣ-ਪਛਾਣ ਇੱਕ ਕਥਿਤ ਹਿੱਟਮੈਨ ਨਾਲ ਕਰਵਾਈ, ਜੋ ਅਸਲ ਵਿੱਚ ਡੀਈਏ ਅੰਡਰਕਵਰ ਅਫਸਰ (UC) ਸੀ। CC-1 ਬਾਅਦ ਵਿੱਚ, ਗੁਪਤਾ ਦੁਆਰਾ ਦਲਾਲਾਂ ਵਿੱਚ, ਪੀੜਤ ਦੀ ਹੱਤਿਆ ਕਰਨ ਲਈ UC ਨੂੰ $100,000 ਦਾ ਭੁਗਤਾਨ ਕਰਨ ਲਈ ਸਹਿਮਤ ਹੋ ਗਿਆ। 9 ਜੂਨ, 2023 ਨੂੰ ਜਾਂ ਲਗਭਗ, CC-1 ਅਤੇ ਗੁਪਤਾ ਨੇ ਇੱਕ ਸਹਿਯੋਗੀ ਨੂੰ ਕਤਲ ਲਈ ਪੇਸ਼ਗੀ ਭੁਗਤਾਨ ਵਜੋਂ UC ਨੂੰ $15,000 ਨਕਦ ਦੇਣ ਦਾ ਪ੍ਰਬੰਧ ਕੀਤਾ। CC-1 ਦੇ ਸਹਿਯੋਗੀ ਨੇ ਫਿਰ ਮੈਨਹਟਨ ਵਿੱਚ UC ਨੂੰ $15,000 ਡਿਲੀਵਰ ਕੀਤਾ।

ਜੂਨ 2023 ਵਿੱਚ ਜਾਂ ਇਸ ਦੇ ਆਸ-ਪਾਸ, ਕਤਲ ਦੀ ਸਾਜ਼ਿਸ਼ ਨੂੰ ਅੱਗੇ ਵਧਾਉਣ ਲਈ, ਸੀਸੀ-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਪੀੜਤ ਬਾਰੇ ਨਿੱਜੀ ਜਾਣਕਾਰੀ ਪ੍ਰਦਾਨ ਕੀਤੀ, ਜਿਸ ਵਿੱਚ ਪੀੜਤ ਦੇ ਘਰ ਦਾ ਪਤਾ, ਪੀੜਤ ਨਾਲ ਜੁੜੇ ਫ਼ੋਨ ਨੰਬਰ ਅਤੇ ਪੀੜਤ ਦੇ ਰੋਜ਼ਾਨਾ ਦੇ ਵਿਹਾਰ ਬਾਰੇ ਵੇਰਵੇ ਸ਼ਾਮਲ ਸਨ। ਗੁਪਤਾ ਨੇ ਫਿਰ UC. CC-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਦੀ ਪ੍ਰਗਤੀ ਬਾਰੇ ਨਿਯਮਤ ਅੱਪਡੇਟ ਪ੍ਰਦਾਨ ਕਰਨ ਦਾ ਨਿਰਦੇਸ਼ ਦਿੱਤਾ, ਜਿਸ ਨੂੰ ਗੁਪਤਾ ਨੇ ਪੀੜਤ ਦੀਆਂ ਨਿਗਰਾਨੀ ਵਾਲੀਆਂ ਤਸਵੀਰਾਂ ਦੇ ਨਾਲ-ਨਾਲ CC-1 ਨੂੰ ਅੱਗੇ ਭੇਜ ਕੇ ਪੂਰਾ ਕੀਤਾ। ਗੁਪਤਾ ਨੇ UC ਨੂੰ ਇਸ ਕਤਲ ਨੂੰ ਜਲਦੀ ਤੋਂ ਜਲਦੀ ਅੰਜਾਮ ਦੇਣ ਦੇ ਨਿਰਦੇਸ਼ ਦਿੱਤੇ, ਪਰ ਗੁਪਤਾ ਨੇ UC ਨੂੰ ਇਹ ਵੀ ਵਿਸ਼ੇਸ਼ ਤੌਰ 'ਤੇ ਨਿਰਦੇਸ਼ ਦਿੱਤਾ ਕਿ ਉਹ ਉੱਚ ਪੱਧਰੀ ਅਮਰੀਕੀ ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਦੇ ਅਧਿਕਾਰੀਆਂ ਵਿਚਕਾਰ ਆਉਣ ਵਾਲੇ ਹਫ਼ਤਿਆਂ ਵਿੱਚ ਹੋਣ ਵਾਲੇ ਅਨੁਮਾਨਿਤ ਰੁਝੇਵਿਆਂ ਦੇ ਸਮੇਂ ਦੇ ਆਲੇ-ਦੁਆਲੇ ਕਤਲ ਨਾ ਕਰਨ।

18 ਜੂਨ, 2023 ਨੂੰ ਜਾਂ ਲਗਭਗ, ਨਕਾਬਪੋਸ਼ ਬੰਦੂਕਧਾਰੀਆਂ ਨੇ ਬ੍ਰਿਟਿਸ਼ ਕੋਲੰਬੀਆ, ਕੈਨੇਡਾ ਵਿੱਚ ਇੱਕ ਸਿੱਖ ਮੰਦਰ ਦੇ ਬਾਹਰ ਹਰਦੀਪ ਸਿੰਘ ਨਿੱਝਰ ਦਾ ਕਤਲ ਕਰ ਦਿੱਤਾ। ਨਿੱਝਰ ਪੀੜਤ ਦਾ ਸਾਥੀ ਸੀ, ਅਤੇ ਪੀੜਤ ਦੀ ਤਰ੍ਹਾਂ, ਸਿੱਖ ਵੱਖਵਾਦੀ ਲਹਿਰ ਦਾ ਆਗੂ ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਦਾ ਸਪੱਸ਼ਟ ਆਲੋਚਕ ਸੀ। 19 ਜੂਨ, 2023 ਨੂੰ ਜਾਂ ਲਗਭਗ, ਨਿੱਝਰ ਦੇ ਕਤਲ ਤੋਂ ਅਗਲੇ ਦਿਨ, ਗੁਪਤਾ ਨੇ ਯੂਸੀ ਨੂੰ ਦੱਸਿਆ ਕਿ ਨਿੱਝਰ “ਨਿਸ਼ਾਨਾ ਵੀ ਸੀ” ਅਤੇ “ਸਾਡੇ ਬਹੁਤ ਸਾਰੇ ਨਿਸ਼ਾਨੇ ਹਨ।” ਗੁਪਤਾ ਨੇ ਅੱਗੇ ਕਿਹਾ ਕਿ, ਨਿੱਝਰ ਦੇ ਕਤਲ ਦੇ ਮੱਦੇਨਜ਼ਰ, ਪੀੜਤ ਨੂੰ ਮਾਰਨ ਲਈ "ਹੁਣ ਇੰਤਜ਼ਾਰ ਕਰਨ ਦੀ ਕੋਈ ਲੋੜ ਨਹੀਂ" ਸੀ। 20 ਜੂਨ, 2023 ਨੂੰ ਜਾਂ ਲਗਭਗ, CC-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਪੀੜਤ ਬਾਰੇ ਇੱਕ ਖ਼ਬਰ ਭੇਜੀ ਅਤੇ ਗੁਪਤਾ ਨੂੰ ਸੁਨੇਹਾ ਭੇਜਿਆ, “[i]t’s [a] ਹੁਣ ਪਹਿਲ ਹੈ।”

ਗੁਪਤਾ 'ਤੇ ਕਿਰਾਏ 'ਤੇ ਕਤਲ ਕਰਨ ਅਤੇ ਕਿਰਾਏ 'ਤੇ ਕਤਲ ਕਰਨ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚਣ ਦਾ ਦੋਸ਼ ਹੈ। ਦੋਸ਼ੀ ਸਾਬਤ ਹੋਣ 'ਤੇ, ਉਸ ਨੂੰ ਹਰੇਕ ਦੋਸ਼ ਲਈ ਵੱਧ ਤੋਂ ਵੱਧ 10 ਸਾਲ ਦੀ ਕੈਦ ਦੀ ਸਜ਼ਾ ਹੋ ਸਕਦੀ ਹੈ। ਇੱਕ ਸੰਘੀ ਜ਼ਿਲ੍ਹਾ ਅਦਾਲਤ ਦਾ ਜੱਜ ਯੂ.ਐੱਸ. ਸਜ਼ਾ ਸੁਣਾਉਣ ਦੇ ਦਿਸ਼ਾ-ਨਿਰਦੇਸ਼ਾਂ ਅਤੇ ਹੋਰ ਕਾਨੂੰਨੀ ਕਾਰਕਾਂ 'ਤੇ ਵਿਚਾਰ ਕਰਨ ਤੋਂ ਬਾਅਦ ਕੋਈ ਵੀ ਸਜ਼ਾ ਨਿਰਧਾਰਤ ਕਰੇਗਾ।

FBI ਅਤੇ DEA ਮਾਮਲੇ ਦੀ ਜਾਂਚ ਕਰ ਰਹੇ ਹਨ।

ਨਿਆਂ ਵਿਭਾਗ ਦੇ ਅੰਤਰਰਾਸ਼ਟਰੀ ਮਾਮਲਿਆਂ ਦੇ ਦਫਤਰ ਨੇ ਗੁਪਤਾ ਦੀ ਗ੍ਰਿਫਤਾਰੀ ਅਤੇ ਹਵਾਲਗੀ ਨੂੰ ਸੁਰੱਖਿਅਤ ਕਰਨ ਲਈ ਚੈੱਕ ਅਧਿਕਾਰੀਆਂ ਨਾਲ ਕੰਮ ਕੀਤਾ।

ਨੈਸ਼ਨਲ ਸਕਿਓਰਿਟੀ ਡਿਵੀਜ਼ਨ ਦੇ ਕਾਊਂਟਰ ਇੰਟੈਲੀਜੈਂਸ ਅਤੇ ਐਕਸਪੋਰਟ ਕੰਟਰੋਲ ਸੈਕਸ਼ਨ ਦੇ ਟ੍ਰਾਇਲ ਅਟਾਰਨੀ ਕ੍ਰਿਸਟੋਫਰ ਕੁੱਕ ਅਤੇ ਰੌਬਰਟ ਮੈਕੁਲਰਜ਼, ਟ੍ਰਾਇਲ ਅਟਾਰਨੀ ਏ.ਜੇ. ਨੈਸ਼ਨਲ ਸਕਿਓਰਿਟੀ ਡਿਵੀਜ਼ਨ ਦੇ ਅੱਤਵਾਦ ਰੋਕੂ ਸੈਕਸ਼ਨ ਦੇ ਡਿਕਸਨ ਅਤੇ ਨਿਊਯਾਰਕ ਦੇ ਦੱਖਣੀ ਜ਼ਿਲ੍ਹੇ ਲਈ ਸਹਾਇਕ ਯੂਐਸ ਅਟਾਰਨੀ ਕੈਮਿਲ ਐਲ ਫਲੇਚਰ, ਐਸ਼ਲੇ ਸੀ. ਨਿਕੋਲਸ ਅਤੇ ਅਲੈਗਜ਼ੈਂਡਰ ਲੀ ਇਸ ਕੇਸ ਦੀ ਪੈਰਵੀ ਕਰ ਰਹੇ ਹਨ।

ਇਲਜ਼ਾਮ ਸਿਰਫ਼ ਇਲਜ਼ਾਮ ਹੈ। ਸਾਰੇ ਬਚਾਓ ਪੱਖ ਉਦੋਂ ਤੱਕ ਨਿਰਦੋਸ਼ ਮੰਨੇ ਜਾਂਦੇ ਹਨ ਜਦੋਂ ਤੱਕ ਕਨੂੰਨ ਦੀ ਅਦਾਲਤ ਵਿੱਚ ਵਾਜਬ ਸ਼ੱਕ ਤੋਂ ਪਰੇ ਦੋਸ਼ੀ ਸਾਬਤ ਨਹੀਂ ਹੋ ਜਾਂਦਾ।

एक भारतीय नागरिक को चेक गणराज्य से संयुक्त राज्य अमेरिका प्रत्यर्पित किया गया, ताकि उस पर हत्या के लिए पैसे देने का आरोप लगाया जा सके।

निखिल गुप्ता उर्फ निक, 53 वर्षीय भारतीय नागरिक को 30 जून, 2023 को चेक गणराज्य में गिरफ्तार कर हिरासत में लिया गया और संयुक्त राज्य अमेरिका और चेक गणराज्य के बीच द्विपक्षीय प्रत्यर्पण संधि के अनुसार प्रत्यर्पित किया गया। गुप्ता 14 जून को अमेरिका पहुंचे और आज उन पर आरोप लगाएगए।

अटॉर्नी जनरल मेरिक बी. गारलैंड ने कहा, "इस प्रत्यर्पण से यह स्पष्ट हो जाता है कि न्याय विभाग अमेरिकी नागरिकों को चुप कराने या उन्हें नुकसान पहुंचाने के प्रयासों को बर्दाश्त नहीं करेगा।" “निखिल गुप्ता को अब एक अमेरिकी अदालत में न्याय का सामना करना पड़ेगा, क्योंकि वह एक कथित साजिश में शामिल था, जिसका निर्देशन भारत सरकार के एक कर्मचारी द्वारा किया गया था, जिसमें भारत में सिख अलगाववादी आंदोलन का समर्थन करने वाले एक अमेरिकी नागरिक को निशाना बनाकर उसकी हत्या करने की साजिश रची गई थी। मैं विभाग के एजेंटों का आभारी हूं जिन्होंने इस हत्या की साजिश को नाकाम कर दिया और हमारे चेक साझेदारों का भी इस गिरफ्तारी और प्रत्यर्पण में उनकी सहायता के लिए आभारी हूं।”

डिप्टी अटॉर्नी जनरल लिसा मोनाको ने कहा, "यह हत्या की साजिश - जिसे कथित तौर पर न्यूयॉर्क शहर में एक अमेरिकी नागरिक की हत्या के लिए भारतीय एक सरकारी कर्मचारी द्वारा रचा गया था - एक राजनीतिक कार्यकर्ता को एक सर्वोत्कृष्ट अमेरिकी अधिकार: अभिव्यक्ति की स्वतंत्रता का प्रयोग करने पर चुप कराने का एक बेशर्म प्रयास था।" "प्रतिवादी का प्रत्यर्पण न्याय की दिशा में एक महत्वपूर्ण कदम है, और मैं इस मामले में सहायता के लिए हमारे चेक भागीदारों का आभारी हूं। हम यहां या विदेश में अमेरिकी नागरिकों को नुकसान पहुंचाने की कोशिश करने वालों की पहचान करने, उन्हें रोकने और उन्हें जवाबदेह ठहराने के लिए लगातार काम करते रहेंगे।”

FBI के निदेशक क्रिस्टोफर रे ने कहा, "इस प्रतिवादी को अमेरिकी धरती पर एक अमेरिकी नागरिक की हत्या की साजिश में उसकी कथित भूमिका के लिए प्रत्यर्पित किया गया है।" “FBI संयुक्त राज्य अमेरिका में संवैधानिक रूप से संरक्षित स्वतंत्रता को दबाने के लिए विदेशी नागरिकों या किसी अन्य व्यक्ति के प्रयासों को बर्दाश्त नहीं करेगी। हम अपने नागरिकों और इन पवित्र अधिकारों की रक्षा के लिए देश और विदेश में अपने साझेदारों के साथ मिलकर काम करना जारी रखेंगे।”

न्यूयॉर्क के दक्षिणी जिले के अमेरिकी अटॉर्नी डेमियन विलियम्स ने कहा, "जैसा कि आरोप लगाया गया है, प्रतिवादी ने भारत से एक भारतीय सरकारी कर्मचारी के साथ मिलकर न्यूयॉर्क शहर में भारतीय मूल के एक अमेरिकी नागरिक की हत्या की असफल साजिश रची।" "आज का प्रत्यर्पण उन लोगों की जांच करने, उन्हें विफल करने और उन पर मुकदमा चलाने के हमारे अडिग संकल्प को स्पष्ट करता है जो यहां और अन्य जगहों पर अमेरिकी नागरिकों को नुकसान पहुंचाने और चुप कराने की कोशिश करते हैं। हम इस प्रत्यर्पण में अपने चेक सरकार के समकक्षों के घनिष्ठ सहयोग के लिए उन्हें धन्यवाद देते हैं।”

“पिछले वर्ष, DEA ने एक भारतीय सरकारी कर्मचारी और अंतरराष्ट्रीय मादक पदार्थ तस्कर निखिल गुप्ता द्वारा रची गई हत्या की साजिश का पर्दाफाश किया था। गुप्ता पर आरोप है कि उन्होंने अमेरिकी धरती पर एक अमेरिकी नागरिक की हत्या की खतरनाक साजिश रची थी। DEA की पहली प्राथमिकता हमेशा अमेरिकी लोगों का स्वास्थ्य और सुरक्षा है,” DEA प्रशासक ऐनी मिलग्राम ने कहा। "यह प्रत्यर्पण DEA न्यूयॉर्क डिवीजन के ड्रग एन्फोर्समेंट टास्क फोर्स की कड़ी मेहनत और प्रतिबद्धता का परिणाम है, जिसमें DEA, न्यूयॉर्क राज्य पुलिस और न्यूयॉर्क सिटी पुलिस विभाग शामिल हैं। यह मामला DEA द्वारा दुनिया भर में हमारे कानून प्रवर्तन साझेदारों, जैसे चेक गणराज्य के राष्ट्रीय ड्रग मुख्यालय, और साथ ही यहां हमारे संघीय कानून प्रवर्तन साझेदारों के साथ बनाई गई साझेदारियों का भी प्रमाण है।”

अदालती दस्तावेजों के अनुसार, पिछले वर्ष एक भारतीय सरकारी कर्मचारी (CC-1) ने गुप्ता तथा भारत और अन्य स्थानों पर अन्य लोगों के साथ मिलकर, अमेरिकी धरती पर एक वकील और राजनीतिक कार्यकर्ता, जो भारतीय मूल का अमेरिकी नागरिक है, की हत्या की साजिश रची थी।

गुप्ता एक भारतीय नागरिक है जो भारत में रहता है, CC-1 का सहयोगी है, तथा उसने CC-1 और अन्य के साथ अपने संचार में अंतर्राष्ट्रीय मादक पदार्थों और हथियारों की तस्करी में अपनी संलिप्तता का उल्लेख किया है। CC-1 एक भारतीय सरकारी एजेंसी का कर्मचारी है, जिसने खुद को "सुरक्षा प्रबंधन" और "खुफिया" जिम्मेदारियों वाले एक "वरिष्ठ क्षेत्र अधिकारी" के रूप में वर्णित किया है और पहले भारत के केंद्रीय रिजर्व पुलिस बल में सेवा करने और "युद्ध शिल्प" और "हथियारों" में "अधिकारी प्रशिक्षण" प्राप्त करने का संदर्भ दिया है। CC-1 ने भारत से हत्या की साजिश का निर्देशन किया था।

मई 2023 में या उसके आसपास, CC-1 ने गुप्ता को अमेरिका में पीड़ित की हत्या की योजना बनाने के लिए भर्ती किया। पीड़ित भारत सरकार का मुखर आलोचक है और एक अमेरिकी-आधारित संगठन का नेतृत्व करता है जो पंजाब के अलगाव की वकालत करता है, जो उत्तर भारत का एक राज्य है जो भारत में एक जातीय-धार्मिक अल्पसंख्यक समूह सिखों की एक बड़ी आबादी का घर है। पीड़ित ने सार्वजनिक रूप से पंजाब के कुछ या पूरे हिस्से को भारत से अलग करने और खालिस्तान नामक एक सिख संप्रभु राज्य की स्थापना करने का आह्वान किया है, और भारत सरकार ने पीड़ित और उसके अलगाववादी संगठन पर भारत में प्रतिबंध लगा दिया है।

CC-1 के निर्देश पर, गुप्ता ने एक व्यक्ति से संपर्क किया, जिसके बारे में गुप्ता का मानना था कि वह एक आपराधिक सहयोगी है, लेकिन वास्तव में वह एक गोपनीय स्रोत था, जो न्यूयॉर्क शहर में पीड़ित की हत्या करने के लिए एक हत्यारे को अनुबंधित करने में सहायता के लिए DEA (CS) के साथ काम कर रहा था। CS ने गुप्ता को एक कथित हिटमैन से मिलवाया, जो वास्तव में डीईए का एक अंडरकवर अधिकारी (UC) था। इसके बाद CC-1 ने गुप्ता द्वारा मध्यस्थता करते हुए, पीड़ित की हत्या के लिए UC को 100,000 डॉलर का भुगतान करने पर सहमत हुआ। 9 जून, 2023 को या उसके आसपास, CC-1 और गुप्ता ने एक सहयोगी के माध्यम से हत्या के लिए अग्रिम भुगतान के रूप में UC को 15,000 डॉलर नकद पहुंचाने की व्यवस्था की। इसके बाद CC-1 के सहयोगी ने मैनहट्टन स्थित UC को 15,000 डॉलर की राशि पहुंचा दी।

जून 2023 में या उसके आसपास, हत्या की साजिश को आगे बढ़ाने के लिए, CC-1 ने गुप्ता को पीड़ित के बारे में व्यक्तिगत जानकारी प्रदान की, जिसमें पीड़ित का घर का पता, पीड़ित से जुड़े फोन नंबर और पीड़ित के दिन-प्रतिदिन के आचरण के बारे में विवरण शामिल थे, जिसे गुप्ता ने फिर UC को दे दिया। CC-1 ने गुप्ता को हत्या की साजिश की प्रगति पर नियमित अपडेट देने का निर्देश दिया, जिसे गुप्ता ने अन्य चीजों के अलावा, पीड़ित की निगरानी तस्वीरें CC-1 को भेजकर पूरा किया। गुप्ता ने UC को यथाशीघ्र हत्या को अंजाम देने का निर्देश दिया, लेकिन गुप्ता ने UC को यह भी स्पष्ट निर्देश दिया कि वह उच्च-स्तरीय अमेरिकी और भारतीय सरकारी अधिकारियों के बीच आगामी सप्ताहों में होने वाली संभावित बैठकों के समय के आसपास हत्या न की जाए।

18 जून 2023 को या उसके आसपास, नकाबपोश बंदूकधारियों ने कनाडा के ब्रिटिश कोलंबिया में एक सिख मंदिर के बाहर हरदीप सिंह निज्जर की हत्या कर दी। निज्जर पीड़िता का सहयोगी था और पीड़िता की तरह ही सिख अलगाववादी आंदोलन का नेता तथा भारत सरकार का मुखर आलोचक था। निज्जर की हत्या के अगले दिन यानी 19 जून 2023 को गुप्ता ने UC को बताया कि निज्जर भी “लक्ष्य था” और “हमारे पास बहुत सारे लक्ष्य हैं।” गुप्ता ने कहा कि निज्जर की हत्या के मद्देनजर, अब पीड़ित को मारने में “इंतजार करने की कोई जरूरत नहीं है।” 20 जून 2023 को या उसके आसपास, CC-1 ने गुप्ता को पीड़िता के बारे में एक समाचार लेख भेजा और गुप्ता को संदेश दिया, “यह अब [एक] प्राथमिकता है।”

गुप्ता पर भाड़ेपरहत्या करने और भाड़ेपरहत्या की साजिश रचने का आरोप है। यदि वह दोषी पाया जाता है तो उसे प्रत्येक आरोप के लिए अधिकतम 10 वर्ष की जेल की सजा हो सकती है। संघीय जिला न्यायालय का न्यायाधीश अमेरिकी सजा संबंधी दिशानिर्देशों और अन्य वैधानिक कारकों पर विचार करने के बाद ही कोई सजा निर्धारित करेगा।

FBI और DEA मामले की जांच कर रहे हैं।

न्याय विभाग के अंतर्राष्ट्रीय मामलों के कार्यालय ने गुप्ता की गिरफ्तारी और प्रत्यर्पण सुनिश्चित करने के लिए चेक अधिकारियों के साथ काम किया।

राष्ट्रीय सुरक्षा प्रभाग के प्रति-खुफिया और निर्यात नियंत्रण अनुभाग के ट्रायल अटॉर्नी क्रिस्टोफर कुक और रॉबर्ट मैककुलर्स, राष्ट्रीय सुरक्षा प्रभाग के आतंकवाद निरोधक अनुभाग के ट्रायल अटॉर्नी ए.जे. डिक्सन और न्यूयॉर्क के दक्षिणी जिले के सहायक अमेरिकी अटॉर्नी केमिली एल. फ्लेचर, एशले सी. निकोलस और अलेक्जेंडर ली इस मामले की पैरवी कर रहे हैं।

अभियोग केवल एक आरोप है। सभी प्रतिवादियों को तब तक निर्दोष माना जाता है जब तक कि उन्हें न्यायालय में उचित संदेह से परे दोषी साबित नहीं कर दिया जाता है।

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; Anne Milgram, the Administrator of the Drug Enforcement Administration (“DEA”); and Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), announced today the extradition of NIKHIL GUPTA, a/k/a “Nick,” from the Czech Republic on the murder-for-hire charges contained in a Superseding Indictment.  GUPTA was arrested and detained in the Czech Republic on June 30, 2023, and extradited pursuant to the bilateral extradition treaty between the U.S. and the Czech Republic.  GUPTA arrived in the Southern District of New York on June 14, 2024, and was arraigned on the charges in the Superseding Indictment before U.S. Magistrate Judge James L. Cott today.  The case is assigned to U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said: “As alleged, the defendant conspired from India with an Indian government employee in an unsuccessful assassination plot to assassinate, right here in New York City, a U.S. citizen of Indian origin who has publicly advocated for the establishment of a sovereign state for Sikhs, an ethnoreligious minority group in India.  Today’s extradition makes clear our unwavering resolve to investigate, thwart, and prosecute those who seek to harm and silence U.S. citizens here and elsewhere.  We thank our Czech government counterparts for their close cooperation in this extradition.”

Attorney General Merrick B. Garland: “This extradition makes clear that the Justice Department will not tolerate attempts to silence or harm American citizens.  Nikhil Gupta will now face justice in an American courtroom for his involvement in an alleged plot, directed by an employee of the Indian government, to target and assassinate a U.S. citizen for his support of the Sikh separatist movement in India.  I am grateful to the Department’s agents who foiled this assassination plot and to our Czech partners for their assistance in this arrest and extradition.”

Deputy Attorney General Lisa Monaco said: “This murder-for-hire plot — allegedly orchestrated by an Indian government employee to kill a U.S. citizen in New York City — was a brazen attempt to silence a political activist for exercising a quintessential American right: his freedom of speech.  The extradition of the defendant is a vital step toward justice, and I am grateful to our Czech partners for their assistance in this matter.  We will continue working relentlessly to identify, disrupt, and hold accountable those who seek to harm American citizens here or abroad.”

DEA Administrator Anne Milgram said: “Last year, the DEA uncovered an alleged assassination plot orchestrated by an Indian government employee and Nikhil Gupta, an international narcotics trafficker.  Gupta is alleged to have orchestrated a dangerous plot to murder a U.S. citizen on U.S. soil.  DEA’s number one priority is always the health and safety of the American people.  This extradition is the result of the hard work and commitment of the DEA New York Division’s Drug Enforcement Task Force, which is comprised of DEA, the New York State Police, and the New York City Police Department.  This case is also a testament to the partnerships DEA has built with our law enforcement partners around the globe, like the Czech Republic’s National Drug Headquarters, as well as our federal law enforcement partners here at home.” 

FBI Director Christopher A. Wray said: “This defendant has been extradited for his alleged role in a plot to assassinate a U.S. citizen on American soil.  The FBI will not tolerate attempts by foreign nationals, or anyone else for that matter, to repress constitutionally-protected freedoms in the U.S.  We will continue to work with our partners at home and abroad to protect our citizens and these sacred rights.” 

As alleged in the Superseding Indictment and other public court documents:[1]

Last year, an Indian government employee (“CC-1”), working together with others in India and elsewhere, including GUPTA, directed a plot to assassinate, on U.S. soil, an attorney and political activist, who is a U.S. citizen of Indian origin (the “Victim”).

GUPTA is an Indian national who resides in India, is an associate of CC-1, and has described his involvement in international narcotics and weapons trafficking in his communications with CC-1 and others.  CC-1 is an Indian government agency employee who has variously described himself as a “Senior Field Officer” with responsibilities in “Security Management” and “Intelligence” and has referenced previously serving in India’s Central Reserve Police Force and receiving “officer [] training” in “battle craft” and “weapons.”  CC-1 directed the assassination plot from India.

In or about May 2023, CC-1 recruited GUPTA to orchestrate the assassination of the Victim in the U.S.  The Victim is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India.  The Victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the Victim and his separatist organization from India.

At CC-1’s direction, GUPTA contacted an individual whom GUPTA believed to be a criminal associate but was in fact a confidential source working with the DEA (the “CS”) for assistance in contracting a hitman to murder the Victim in New York City.  The CS introduced GUPTA to a purported hitman, who was in fact a DEA undercover officer (the “UC”).  CC-1 subsequently agreed, in dealings brokered by GUPTA, to pay the UC $100,000 to murder the Victim.  On or about June 9, 2023, CC-1 and GUPTA arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder.  CC-1’s associate then delivered the $15,000 to the UC in Manhattan.

In or about June 2023, in furtherance of the assassination plot, CC-1 provided GUPTA with personal information about the Victim, including the Victim’s home address, phone numbers associated with the Victim, and details about the Victim’s day-to-day conduct, which GUPTA then passed to the UC.  CC-1 directed GUPTA to provide regular updates on the progress of the assassination plot, which GUPTA accomplished by forwarding to CC-1, among other things, surveillance photographs of the Victim.  GUPTA directed the UC to carry out the murder as soon as possible, but GUPTA also specifically instructed the UC not to commit the murder around the time of anticipated engagements scheduled to occur in the ensuing weeks between high-level U.S. and Indian government officials.

On or about June 18, 2023, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada.  Nijjar was an associate of the Victim, and like the Victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government.  On or about June 19, 2023, the day after the Nijjar murder, GUPTA told the UC that Nijjar “was also the target” and “we have so many targets.”  GUPTA added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the Victim.  On or about June 20, 2023, CC-1 sent GUPTA a news article about the Victim and messaged GUPTA, “[i]t’s [a] priority now.”

*                *                *

GUPTA, 52, an Indian national, has been charged with murder-for-hire, which carries a maximum sentence of 10 years in prison, and conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison.

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

Mr. Williams praised the outstanding investigative work of the DEA’s New York Drug Enforcement Task Force and the Counterintelligence Division of the FBI’s New York Field Office.  Mr. Williams also thanked the DEA’s Special Operations Division, the DEA’s Vienna Country Office, the FBI’s Prague Country Office, the Department of Justice’s National Security Division, and the Czech Republic’s National Drug Headquarters for their assistance.  The DEA’s New York Drug Enforcement Task Force comprises agents and task force officers of the DEA, New York City Police Department, and the New York State Police.

The Justice Department’s Office of International Affairs worked with Czech authorities to secure the arrest and extradition of Gupta.

This case is being handled by the Office’s National Security and International Narcotics Unit, Violent and Organized Crime Unit, and Narcotics Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas, and Alexander Li are in charge of the prosecution, with assistance from Trial Attorneys Christopher Cook and Robert McCullers of the National Security Division’s Counterintelligence and Export Control Section, as well as Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section.

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