Southern District of New York

United States Attorney for the Southern District of New York, Jamie McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that VICTOR ALVELO has been charged with possessing approximately thousands of images and videos depicting child pornography, including images that depict pre-pubescent children engaging in sexually explicit conduct.  ALVELO was arrested yesterday and presented before U.S. Magistrate Judge Gary Stein in Manhattan federal court.

“Victor Alvelo, the General Superintendent of the New York City Department of Sanitation (‘DSNY’), is accused of possessing thousands of images of graphic child sexual abuse,” said U.S. Attorney Jamie McDonald.  “Sexual abuse of children inevitably leads to irreparable harm to those innocent and vulnerable victims.  Our Office is committed to pursuing justice against those who commit these unfathomable acts.  Together with our partners at HSI and the NYPD’s Computer Crimes Squad, we will work tirelessly to detect predators, prosecute them, and protect our community’s children.

“As a former senior public official, Victor Alvelo allegedly betrayed the confidence placed in him by the city and the public, even brazenly using his government-branded clothing to store files containing material that no person should ever possess,” said HSI New York Acting Special Agent in Charge Pete Gizas.  “Those who seek out and keep child sexual abuse material perpetuate the abuse of children and fuel a predatory market built on their exploitation.  HSI New York will continue to stand shoulder to shoulder with our law enforcement partners to identify offenders, pursue justice, and safeguard our community’s children, vulnerable populations, and the public at-large.” 

“Victor Alvelo allegedly possessed thousands of disturbing images of child pornography, including victims as young as 12 years old,” said NYPD Commissioner Jessica S. Tisch.  “The NYPD will be relentless in stopping predators who seek to exploit and harm children.  I thank our investigators, including the NYPD’s Computer Crimes Squad, and law enforcement partners for finding this illegal and vile material, and working to hold this perpetrator accountable.”  

According to the allegations contained in the Complaint:(1) 

ALVELO served as a General Superintendent of the DSNY until his retirement in or about August 2025.  From at least in or about August 2022 through on or about August 3, 2026, ALVELO possessed approximately thousands of images and videos depicting child pornography on devices within his residence.  The child pornography files were found in, among other places, a USB flash drive in the front pocket of a jacket bearing DSNY insignia inside ALVELO’s residence.

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ALVELO, 61, of the Bronx, New York, is charged with one count of possessing child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age, which carries a maximum sentence of 20 years in prison.  

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

Mr. McDonald praised the outstanding work of HSI, including the Child Exploitation Investigations Team, the United States Postal Inspection Service, and the NYPD Computer Crimes Squad.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Paulena B. Prager 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.

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    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.

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that PERRY FREEMAN was sentenced to 292 months in prison by U.S. District Judge Kenneth M. Karas for distributing fentanyl that resulted in the death of a Westchester County resident, conspiring to distribute crack cocaine, and illegally possessing ammunition.  On February 11, 2026, FREEMAN pled guilty before U.S. Magistrate Judge Andrew E. Krause. 

“Perry Freeman, a recidivist drug dealer, sold fentanyl to a victim who died shortly after taking the drugs,” said U.S. Attorney Jamie McDonald.  “This Office will not rest until the public is safe and that those who peddle this poison have been brought to justice, as Perry Freeman now has.”

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

On or about November 10, 2021, FREEMAN sold fentanyl to his victim, a 37-year-old man. 

Shortly thereafter, the police responded to a report of a burning car in a parking lot in the Town of Mohegan Lake, New York, approximately a three-minute drive from FREEMAN’s apartment building.  They found a Ford Focus on fire; the victim was in the driver’s seat with his foot on the accelerator pedal.  After the fire department put the fire out, the victim—who was dead—was pulled out.  Investigators determined that the car had caught fire after overheating while the accelerator pedal was depressed for an excessive period of time while the car was in park, i.e., while the victim was passed out in the driver’s seat with his foot on the pedal.

The Westchester County Medical Examiner’s Office, which is part of the Westchester Department of Laboratories and Research, performed an autopsy on the victim.  The victim had lethal levels of both fentanyl and norfentanyl (a metabolite of fentanyl) in his blood, and there was some darkening of the victim’s lungs, which indicated smoke inhalation before his death.  The victim’s cause of death was certified as both acute fentanyl intoxication and accident.

In addition, FREEMAN conspired to distribute crack cocaine over a period of years and possessed five shotgun shells in his apartment despite being prohibited from doing so due to multiple prior felony convictions, including convictions for narcotics offenses in 2008, 2012, 2016, and 2022. 

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In addition to the prison sentence, FREEMAN, 40, of Mohegan Lake, New York, was sentenced to five years of supervised release.

Mr. McDonald praised the outstanding investigative work of the Drug Enforcement Administration and the Yorktown Police Department for their assistance in the investigation.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Michael D. Maimin and Ben Arad are in charge of the prosecution.

A three-count complaint was unsealed today charging Mohammad Yousef Hasna, also known as “Orhan Korkmaz” and “Abu al-Baraa,” 45, of Istanbul, Turkey, with conspiring to provide material support to Hamas, a U.S. designated foreign terrorist organization (FTO), and related terrorism financing charges. As alleged, Hasna used his senior role at a purported global humanitarian organization to coordinate directly with Hamas’s senior leadership regarding the delivery of funds and supplies to Gaza, and the distribution of those funds and supplies at Hamas leadership’s instructions. Hasna was arrested in the United Kingdom today.

“The money that flows from sham charities like the one described in the complaint fuels Hamas’s terrorist activities, including the atrocities the group committed on October 7,” said Assistant Attorney General for National Security John A. Eisenberg. “Hamas cannot function without injections of money through its illicit financial networks. The National Security Division will continue to work tirelessly to disrupt Hamas’s operations, including through the prosecutions such as this.”

“Mohammad Hasna is alleged to have abused his position as the global director of a purported humanitarian organization to raise money and provide funds and supplies to Hamas, a brutal terrorist organization responsible for the murders of dozens of Americans and over a thousand other innocent victims, including as part of the heinous atrocities of October 7,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “Hasna worked closely with Hamas’s senior leadership to deliver supplies, food, funding, and other materials to terrorists under the guise of humanitarian aid. Our arrest of Mohammad Hasna demonstrates our commitment to dismantling Hamas’s illicit global financing networks and the sham charities that support terrorist organizations and their violent aims using the lie of philanthropy.”

“The accused allegedly used a purported humanitarian aid organization to raise funds and provide financing and supplies to Hamas, a ruthless international terrorist organization,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division. “According to the criminal complaint, the defendant coordinated his actions closely with a senior leader of Hamas and knew the resources were going to that group rather than to needy non-combatants. The FBI is committed to cutting off funding and other assistance to terrorist organizations and will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”

According to the allegations contained in the complaint, Hasna is the global director of a purported international charity registered in the United Kingdom (the “Sham Charity”). In that role, Hasna allegedly provided financing and commodities to Hamas, including by coordinating extensively with individuals at the highest levels of Hamas. As alleged, Hasna worked closely with senior Hamas leader Ghazi Hamad (Hamad), a member of Hamas’s governing body known as the Politburo and the Minster for the Ministry of Social Development in Gaza (MoSD), a putative governmental agency that is controlled by Hamas. 

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000-armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of 251 hostages. 

Following the October 7 Hamas Massacres, in its disclosures to UK authorities, the Sham Charity reported that its total gross income nearly doubled from approximately $41.8 million USD in fiscal year 2023, to approximately $81.56 million USD in fiscal year 2024. The Sham Charity represented that it spent approximately $91 million on charitable activities in the fiscal year ending July 31, 2025. 

Since at least 2023, Hasna and Hamad coordinated the delivery of purported humanitarian aid organized by or allocated to the Sham Charity into Gaza for Hamas’s benefit, repeatedly coordinating the delivery of supplies, food, and other items by Hasna (under the guise of humanitarian aid from the Sham Charity) directly into Hamad’s and Hamas’s hands. In coordination with Hamad and at Hamad’s direction, Hasna allegedly arranged (1) deliveries of cash to Hamad; (2) the procurement of supplies for import to Gaza; (3) transportation of supplies into Gaza by truck from Egypt and elsewhere; (4) deliveries to warehouses controlled by the Sham Charity or by MoSD, according to Hamad’s instructions; and (5) distribution of those supplies to lists of recipients identified by Hamad. As part of this scheme, Hasna and Hamad concealed where the supplies were being delivered or stored, including by misrepresenting that supplies were being delivered to MoSD when in fact they were being delivered to warehouses controlled by Hasna; having supplies delivered initially to MoSD but then redistributed to the actual receiving parties; and taking pictures and videos of the supplies that omitted any signage inside the warehouses that would reveal their location or control. 

Hasna is charged with conspiring to provide material support to Hamas, conspiring to finance terrorism, and financing terrorism, each of which carries a maximum penalty of 20 years in prison.

A federal district judge will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors. 

The Counterterrorism Section of the Department of Justice’s National Security Division thanks the U.K. authorities and the Israeli Security Agency for their assistance with this investigation. The Justice Department’s Office of International Affairs and the United Kingdom’s law enforcement authorities provided significant assistance.

This case is being handled by the Southern District of New York’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner, Michael D. Lockard, and Juliana N. Murray are in charge of the prosecution, with assistance from Alicia Cook of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director in Charge of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Jarod Brown, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the unsealing of a three-count Complaint charging MOHAMMAD YOUSEF HASNA, a/k/a “Orhan Korkmaz,” a/k/a “Abu al-Baraa,” a Turkish resident, with conspiring to provide material support to Hamas, a U.S.-designated foreign terrorist organization (“FTO”), and related terrorism financing charges.  As alleged, HASNA used his senior role at a purported global humanitarian organization to coordinate directly with Hamas’s senior leadership regarding the delivery of funds and supplies to Gaza, and the distribution of those funds and supplies at Hamas leadership’s instructions.  HASNA was arrested in the United Kingdom today and ordered detained pending extradition proceedings.

“Mohammad Hasna is alleged to have abused his position as the global director of a purported humanitarian organization to raise money and provide funds and supplies to Hamas, a brutal terrorist organization responsible for the murders of dozens of Americans and over a thousand other innocent victims, including as part of the heinous atrocities of October 7,” said U.S. Attorney Jamie McDonald.  “Hasna worked closely with Hamas’s senior leadership to deliver supplies, food, funding, and other materials to terrorists under the guise of humanitarian aid.  Our arrest of Mohammad Hasna demonstrates our commitment to dismantling Hamas’s illicit global financing networks and the sham charities that support terrorist organizations and their violent aims using the lie of philanthropy.”

“The money that flows from sham charities like the one described in the complaint fuels Hamas’s terrorist activities, including the atrocities the group committed on October 7,” said Assistant Attorney General for National Security John A. Eisenberg.  “Hamas cannot function without injections of money through its illicit financial networks.  The National Security Division will continue to work tirelessly to disrupt Hamas’s operations, including through the prosecutions such as this.”

“The accused allegedly used a purported humanitarian aid organization to raise funds and provide financing and supplies to Hamas, a ruthless international terrorist organization,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division.  “According to the criminal complaint, the defendant coordinated his actions closely with a senior leader of Hamas and knew the resources were going to that group rather than to needy non-combatants.  The FBI is committed to cutting off funding and other assistance to terrorist organizations and will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”

“Mohammad Hasna allegedly used a charity to funnel millions of dollars in aid to Hamas—a designated terrorist organization responsible for countless terrorist attacks, death, and destruction around the world,” said FBI New York Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Joint Terrorism Task Force continues to fight for peace by working with our partners to identify threats to the United States and our allies.”

According to the allegations contained in the Complaint:(1)

HASNA is the global director of a purported international charity registered in the United Kingdom (the “Sham Charity”).  In that role, HASNA allegedly provided financing and commodities to Hamas, including by coordinating extensively with individuals at the highest levels of Hamas.  In particular, and as alleged, HASNA worked closely with senior Hamas leader Ghazi Hamad (“Hamad”), a member of Hamas’s governing body known as the Politburo and the Minister for the Ministry of Social Development in Gaza (“MoSD”), a putative governmental agency that is controlled by Hamas. 

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization by the United States since 1997.  From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad.  Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror.  On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of 251 hostages. 

Following the October 7 Hamas Massacres, in its disclosures to UK authorities, the Sham Charity reported that its total gross income nearly doubled from approximately $41.8 million USD in fiscal year 2023, to approximately $81.56 million USD in fiscal year 2024.  The Sham Charity represented that it spent approximately $91 million on charitable activities in the fiscal year ending July 31, 2025. 

Since at least 2023, HASNA and Hamad coordinated the delivery of purported humanitarian aid organized by or allocated to the Sham Charity into Gaza for Hamas’s benefit, repeatedly coordinating the delivery of supplies, food, and other items by HASNA (under the guise of humanitarian aid from the Sham Charity) directly into Hamad’s and Hamas’s hands.  In coordination with Hamad and at Hamad’s direction, HASNA allegedly arranged (1) deliveries of cash to Hamad; (2) the procurement of supplies for import to Gaza; (3) transportation of supplies into Gaza by truck from Egypt and elsewhere; (4) deliveries to warehouses controlled by the Sham Charity or by MoSD, according to Hamad’s instructions; and (5) distribution of those supplies to lists of recipients identified by Hamad.  As part of this scheme, HASNA and Hamad concealed where the supplies were being delivered or stored, including by misrepresenting that supplies were being delivered to MoSD when in fact they were being delivered to warehouses controlled by HASNA; having supplies delivered initially to MoSD but then redistributed to the actual receiving parties; and taking pictures and videos of the supplies that omitted any signage inside the warehouses that would reveal their location or control. 

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HASNA, 45, of Istanbul, Turkey, is charged with conspiring to provide material support to Hamas, conspiring to finance terrorism, and financing terrorism, each of which carries a maximum sentence of 20 years in prison.

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

Mr. McDonald praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and Washington Field Office.  Mr. McDonald also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, our U.K. partners, and the Israeli Security Agency for their assistance with this investigation.  The Justice Department’s Office of International Affairs and the United Kingdom’s law enforcement authorities provided significant assistance. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sarah L. Kushner, Michael D. Lockard, and Juliana N. Murray are in charge of the prosecution, with assistance from Alicia Cook of the Counterterrorism Section.

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

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    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.

United States Attorney for the Southern District of New York, Jamie McDonald, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office (“DOE OIG”), Jamila Davis, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service, Ketty Larco-Ward, announced today that NYDIRA ADAMS a/k/a “Nadira Adams,” a/k/a “Nadira Adams-McMillan,” was sentenced to two years in prison for carrying out a scheme in which she charged federal student loan borrowers to submit documents containing misrepresentations and false statements to the United States Department of Education to take advantage of the Public Service Loan Forgiveness program. ADAMS’s scheme sought to cause the Department of Education to forgive over $6 million in federal student loan debt based on lies, misrepresentations, and falsehoods.  The defendant pled guilty on April 30, 2026, before U.S. District Judge Denise L. Cote, who imposed today’s sentence.

“Nydira Adams defrauded the Department of Education out of millions of dollars and preyed upon individuals seeking relief from federal student loan debt,” said U.S. Attorney Jamie McDonald.  “Through lies, misrepresentations, and false documents, Adams abused the Public Service Loan Forgiveness program—a federal program intended to benefit individuals who dedicate at least 10 years of their careers to public service or non-profit work. And she did so to enrich herself. Today’s sentencing sends a clear message: individuals who swindle the Government and taxpayer-funded programs will be held accountable.”  

“Nydira Adams thought she could game the system and would not get caught, but she was wrong,” said DOE OIG Special Agent in Charge Jamila Davis.  “The OIG will continue to work with our law enforcement partners to aggressively pursue those who abuse the Public Service Loan Forgiveness program or any Federal education program for their own selfish purposes.  America’s taxpayers and students deserve nothing less.”

“Through lying, cheating, and manipulation, Ms. Adams devised a scheme to defraud the Department of Education and her clients by depicting herself as someone who held proprietary information on DOE programs, cheating those who truly needed student loan forgiveness and other assistance from the Department of Education,” said USPIS Inspector in Charge Ketty Larco-Ward.  “Her actions are unconscionable and today’s sentence sends a message, that no matter who you claim to be, when you lie and steal from the public, postal inspectors and their law enforcement partners will be there to bring you to justice for your criminal activity.”

According to court documents, statements made in court, and evidence presented during the sentencing:

From at least in or about March 2023 through at least in or about January 2025, Adams held herself out as the “Student Loan Default Guru” and operated a business under the same name.  In reality, AdAMS used misrepresentations, false statements, and false documents to deceive the Department of Education into forgiving federal student loans issued to borrowers who paid Adams thousands of dollars for her purported services. On multiple occasions, Adams knowingly and intentionally caused applications for Department of Education relief programs to be submitted which contained falsehoods pertaining to the borrowers’ eligibility for the relief programs. Among other falsehoods, ADAMS claimed that one California-based borrower worked full-time at a New-York-based religious institution and falsely represented that another borrower worked full-time for a public school district.  Adams’s scheme resulted in an intended loss of over $6 million to the Department of Education.       

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In addition to the prison term, ADAMS, 38, of Pensacola, Florida, was sentenced to three years of supervised release. 

Mr. McDonald praised the outstanding investigative work of the DOE OIG—Eastern Regional Office; the U.S. Postal Inspection Service, New York; and the Special Agents assigned to the United States Attorney’s Office for the Southern District of New York. 

 This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.  

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the arrests of CATORA NOEL, DARREN STEPHENSON, and IMANI-KAI BROWN, who are charged with stealing the personal identifying and financial information of dozens of victims as part of a conspiracy to fraudulently take over those victims’ bank accounts and initiate over a million dollars in unauthorized wire transfers and ATM withdrawals.  NOEL and STEPHENSON were arrested in Brooklyn, New York, this morning and presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.  BROWN was arrested today in Miami, Florida, and will be presented tomorrow in the Southern District of Florida before U.S. Magistrate Judge Edwin G. Torres.

“As alleged, Noel, Stephenson, and Brown engaged in a coordinated scheme to defraud financial institutions and steal over $1.6 million from the bank accounts of dozens of hardworking New Yorkers,” said U.S. Attorney Jamie McDonald.  “As part of this scheme, Stephenson exploited his employment at a bank to feed sensitive customer information to his co-defendants, who intercepted bank debit cards and posed as bank customers over the phone and in person.  Thanks to the tireless efforts of our law enforcement partners, this insider scheme has been disrupted.”

“The co-defendants spent years targeting and exploiting dozens of U.S. businesses and innocent victims, stealing more than $1.6 million through compromised personal and confidential information,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI remains relentless in our mission to hold accountable and impose repercussions on those who prey on our country and our communities through fraudulent and predatory schemes.”

 As alleged in the Complaint:(1)

From at least in or about July 2022 through in or about September 2024, NOEL, STEPHENSON, and BROWN participated in an identity theft scam and related fraud operation involving primarily a bank with multiple locations in the New York metropolitan area (“Victim Institution-1”). Through the fraud scheme, one or more of the participants, including NOEL, intercepted new or replacement bank debit cards that Victim Institution-1 mailed to its customers. 

The defendants unlawfully obtained customers’ bank debit cards by stealing bank debit cards from mail deposits and placing recorded calls to banks, impersonating customers by providing the customer’s name, personal identifying information (“PII”), and debit card number, and requesting that the bank mail a debit card for the customer’s account to an address accessible to the defendants or their co-conspirators.  NOEL, STEPHENSON, and BROWN communicated through, among other means, text messages and an encrypted messaging application and exchanged the information, including names, PII, and bank card and account numbers, of bank customers. STEPHENSON, a former Victim Institution-1 employee, used his privileged access to customer account information to steal customer PII and provide it to his co-conspirators in furtherance of the scheme.

Among other things, NOEL then posed as bank customers of Victim Institution-1 to conduct unauthorized and fraudulent transactions, including wire transfers, teller withdrawals, and automated teller machine (“ATM”) withdrawals.   Specifically, NOEL posed as bank customers by calling and visiting Victim Institution-1, providing the customer’s PII and account information, and requesting a wire transfer or withdrawal of funds from the customer’s Victim Institution-1 account to another bank account.  Alternatively, NOEL would use the intercepted bank cards to conduct fraudulent withdrawals from ATM machines.

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NOEL, 42, and BROWN, 33, both of Brooklyn, New York, and STEPHENSON, 41, of Valley Stream, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.  NOEL is also charged with one count of access device fraud, which carries a maximum sentence of 10 years in prison. 

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

Mr. McDonald praised the outstanding investigative work of Operation Riptide of the FBI New York Field Office and Cyber Crimes Task Force, as well as the New York City Police Department and U.S. Customs and Border Protection.

This action is part of Operation Riptide, an ongoing FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime, cyber-enabled crime, and fraud against the American people.  Last year, Americans reported over $20 billion in losses to cybercrime, a 26% single-year increase.  Operation Riptide is the FBI’s sustained enforcement response to that threat.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Dana R. McCann is in charge of the prosecution.

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

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

Jamie McDonald has assumed the role of United States Attorney for the Southern District of New York.  Earlier today, Judge Laura Taylor Swain, Chief District Judge for the Southern District of New York, informed the Office that the Court has appointed Mr. McDonald to serve as United States Attorney for the Southern District of New York, pursuant to 28 U.S.C. § 546(d), upon U.S. Attorney Jay Clayton’s resignation. Yesterday, Mr. Clayton was confirmed by the Senate to serve as Director of National Intelligence.  Mr. Clayton tendered his resignation as U.S. Attorney, effective earlier today.  Mr. McDonald was sworn in as the U.S. Attorney by Chief Judge Swain. 

Sean S. Buckley will continue in his role as Deputy United States Attorney, Amanda Houle will continue in her role as Chief of the Criminal Division, and Jeff Oestericher will continue in his role as Chief of the Civil Division as contemplated in the transition announcement of July 8, 2026.

Mr. McDonald previously served in the Office as an Assistant United States Attorney in the Criminal Division until 2017.  In that role, Mr. McDonald participated in significant organized crime, white collar, and violent crimes prosecutions, including those of senior members of the Genovese Organized Crime Family; the sitting New York State Assembly Speaker, Sheldon Silver; and a 48-defendant rival street gangs case.

From 2017 to 2020, Mr. McDonald served as the Director of Enforcement at the U.S. Commodity Futures Trading Commission (CFTC), where he had overall responsibility for all aspects of the CFTC’s enforcement program, including its investigations, litigations, and market surveillance activities.  Under his leadership, the agency prioritized cases involving market manipulation, other forms of market abuse, and fraud, as well as the pursuit of parallel actions with the Department of Justice.  Notably, during the last year of Mr. McDonald’s time at the CFTC, the agency brought an unprecedented number of enforcement actions. 

Following his tenure at the Southern District of New York and the CFTC, Mr. McDonald served as a Partner at Sullivan & Cromwell LLP where he was Co-Head of both the firm’s Securities & Commodities Investigations Practice and its Commodities, Futures and Derivatives Group.  While at Sullivan & Cromwell, Mr. McDonald also served as an Adviser to the American Law Institute’s Principles of Compliance, Risk Management, and Enforcement.  Mr. McDonald previously served as a Visiting Scholar at Harvard Business School and as a Senior Fellow at New York University Law School’s Program on Corporate Compliance and Enforcement.

Earlier in his career, Mr. McDonald served as a law clerk to Chief Justice John G. Roberts, Jr., of the U.S. Supreme Court and Judge Jeffrey S. Sutton, Jr., of the U.S. Court of Appeals for the Sixth Circuit.  From 2008 to 2009, Mr. McDonald served as a Deputy Associate Counsel in the Office of the White House Counsel.

Originally from Oklahoma, Mr. McDonald graduated from the University of Virginia School of Law and from Harvard College.  

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MATTHEW MELTON was sentenced to 51 months in prison for committing securities fraud by running a Ponzi scheme.  MELTON pled guilty in April 2026 to securities fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence.

“Matthew Melton sold investors on a sophisticated trading strategy and guaranteed extraordinary returns,” said U.S. Attorney Jay Clayton.  “In reality, the supposed algorithm did not exist, and he used investor money to fund his lifestyle and sustain his scheme before fleeing the country.  Our Office and our partners are committed to holding financial fraudsters personally accountable, and if you defraud our retail investors, we will bring you to justice.  In the past 18 months, our Office has criminally charged 27 CEOs and corporate leaders with fraud, charged 12 individuals with insider trading, and doubled the number of insider trading investigations year over year.”

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

MELTON promoted an investment vehicle he called “Price Physics,” which purported to invest in futures contracts using a proprietary trading algorithm.  He promised investors guaranteed returns of up to 12% per month, of which he said he would keep only 2% as compensation.  In reality, there was no proprietary trading algorithm, and MELTON invested almost none of the millions of dollars he raised in the manner promised to investors.  The few times that MELTON did make trades, it was not in futures contracts, and the trading was generally unprofitable.  For the most part, instead of trading, MELTON used his investors’ money to pay his personal expenses—including mortgage payments and sailing excursions—and to pay earlier investors in Ponzi-like fashion.

On approximately December 15, 2020, MELTON received word of a criminal investigation.  Four days later, MELTON fled the United States and stopped using his email account, credit cards, bank accounts, and phone number, and soon after, MELTON soon stopped communicating with investors.  MELTON remained at large for the next three years, until he was apprehended by law enforcement in October 2023, while he was traveling through the United Kingdom.  MELTON was extradited back to the United States in December 2025.

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In addition to the prison term, MELTON, 62, of Boulder, Colorado, was ordered to pay restitution, in an amount to be determined within 90 days, and forfeiture in the amount of $3,756,135, representing proceeds from his illegal scheme.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.  

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that DERRICK VAN YEBOAH, a/k/a “Van,” was sentenced to 85 months in prison for his role in an international criminal organization that stole more than $100 million from victims via romance scams and business email compromises.  On March 5, 2026, VAN YEBOAH pled guilty to one count of conspiracy to commit wire fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence.

“Romance scammers do not simply steal money—they weaponize trust,” said U.S. Attorney Jay Clayton.  “Van Yeboah and his co-conspirators exploited trust, loneliness, and legitimate business relationships to steal more than $100 million.  Today’s sentence reflects the seriousness of these calculated frauds and our commitment to pursuing international criminal organizations that target Americans.”

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

VAN YEBOAH was a member of a criminal organization primarily based in Ghana that committed romance scams and business email compromises against individuals and businesses located across the United States.  Many of the conspiracy’s victims were vulnerable older men and women who were tricked into believing that they were in online romantic relationships with persons who were, in fact, fake identities assumed by members of the conspiracy.  Once members of the conspiracy had gained the trust of their victims, they deceived those victims into sending their money to the enterprise or into helping them launder funds from other victims.  The conspirators also committed business email compromises to trick and deceive businesses into wiring funds to the enterprise.  In total, the conspiracy stole and laundered more than $100 million from dozens of victims.  After stealing the money, the  fraud proceeds were then laundered to West Africa.

VAN YEBOAH personally perpetrated many of the romance scams by impersonating fake romantic partners in communications with victims.  For example, in 2019 and 2020, VAN YEBOAH assumed fake identities to engage in romance scams with an Ohio woman and a Delaware woman and induced them into transferring approximately $4.2 million to accounts belonging to members of the conspiracy.  Similarly, in 2024, VAN YEBOAH assumed a fake identity to engage in a romance scam with a North Carolina man and induced him into transferring approximately $123,000 to accounts belonging to members of the conspiracy by claiming that he needed funds for both a parent’s funeral and to recover gold and diamonds from Italy.

VAN YEBOAH is being held responsible for more than $10 million he stole from victims via his romance scams.

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In addition to the prison term, VAN YEBOAH, 41, of Ghana, was sentenced to two years of supervised release and ordered to pay $10,149,429.17 in forfeiture.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  The Justice Department’s Office of International Affairs worked with the International Cooperation Unit of the Office of the Attorney-General of Ghana to secure VAN YEOBAH’s August 7, 2025, extradition to the United States.  Ghana’s Economic and Organized Crime Office, the Ghana Police Service – INTERPOL, Ghana’s Cyber Security Authority, and Ghana’s National Intelligence Bureau all provided significant assistance to ensure VAN YEOBAH’s extradition.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that EDWARD GENE SMITH was sentenced today by U.S. District Judge Paul A. Engelmayer to 30 years in prison for drugging a female victim (“Victim-1”) with the intent to rape her, enticing another female victim (“Victim-2”) to travel to New York where SMITH drugged and sexually assaulted her, receipt of child pornography, and obstruction of justice.  SMITH also admitted to additional conduct relating to other victims. 

“Edward Gene Smith is a sexual predator and a serial rapist,” said U.S. Attorney Jay Clayton.  “He spent years hiding behind wealth, education, and status while he committed egregious sexual crimes.  He drugged and raped women, documenting his crimes with extensive notes planning how he would torture and punish his victims, and surreptitiously photographing them, while they were nude and unconscious.  The defendant also obtained and maintained a trove of thousands of files of child sexual abuse material.  The defendant took steps to hide his crimes, and, when he was caught, obstructed the investigation by compelling a victim he had drugged and raped to sign a false letter of support.  He is now where he belongs, in prison.  Every New York family is safer with the defendant off the streets.”

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

Between approximately 2015 and June 2024, SMITH, who was during that approximate time period a senior executive of major financial institutions, planned to drug, attempted to drug, and/or drugged numerous women with the intent to incapacitate them and/or render them unable to consent to sexual activity.  SMITH did, in fact, engage in sexual activity with multiple of these women, and, in at least some cases, surreptitiously took videos or photographs of his criminal sexual activity. 

At least on or about April 23, 2023, SMITH drugged and raped Victim-1 in his Central Park South residence.  Specifically, unbeknownst to Victim-1, SMITH gave Victim-1 one or more alcoholic beverages that he had laced with Klonopin, a controlled substance.  After Victim-1 consumed the drugged drink, SMITH physically restrained Victim-1, and raped her while she was unconscious.  While Victim-1 was still unconscious, SMITH also took a video of himself sexually assaulting Victim-1, and then shared that video with others via an encrypted messaging platform, on a channel that was dedicated to sharing depictions of incapacitated or unconscious women in sexually exploitative positions.

Previously, between in or about 2019 and in or about 2020, SMITH repeatedly drugged and sexually assaulted Victim-2. SMITH met Victim-2 in 2019 when Victim-2 was a college student and persuaded Victim-2 to relocate to New York City, which she did.  SMITH thereafter controlled Victim-2’s finances, social life, and activities, and repeatedly drugged and sexually assaulted Victim-2 over the course of several months.  During this time period, SMITH caused Victim-2 to engage in sexual activity through coercion and force, including threatened and physical assault and physical restraint.  Additionally, SMITH informed Victim-2 of one or more firearms that he possessed and showed Victim-2 at least one such firearm.

In or about the Fall of 2021, SMITH communicated with another victim (“Victim-3”), who was then 17 years old.  SMITH followed a similar pattern with Victim-3.  While Victim-3 was still 17 years old, SMITH solicited explicit photographs from Victim-3.  Shortly after Victim-3 turned 18 years old, SMITH caused Victim-3 to travel to New York City, attempted to drug Victim-3, and then physically and sexually assaulted her. In or about October 2023, SMITH caused Victim-3 to travel to New York City again, which she did, and drugged and sexually assaulted her.  Around this time, SMITH also posted Victim-3’s photographs and personal contact information to a website advertising prostitution services, without Victim-3’s knowledge. 

Between approximately 2012 and June 2024, SMITH also received via the internet and possessed a large volume of images and videos on his personal devices that depicted children, including prepubescent children, being sexually abused.

In or about August 2024, after a search warrant was executed at SMITH’s residence, revealing that SMITH possessed child pornography on his electronic devices, SMITH paid Victim-1 thousands of dollars to sign a false document in an attempt to obstruct the investigation.  Also in or about August 2024, SMITH solicited other individuals to sign false documents in an attempt to obstruct the investigation.

If you have been victimized by SMITH in any way or have any additional information about his illegal behavior, please call the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI.

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In addition to the prison term, SMITH, 50, of New York, New York, was sentenced to a lifetime of supervised release.

Mr. Clayton praised the outstanding work of the FBI.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Remy Grosbard, Rita Maxwell, Daniel Richenthal, and Joe Zabel are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.

United States Attorney for the Southern District of New York, Jay Clayton, and Criminal Division Chief, Amanda Houle, announced today a voluntary compliance agreement (the “Agreement”) under Title III of the Americans with Disabilities Act (“ADA”) with Weill Cornell Medicine (“WCM”), pursuant to which WCM acknowledges that policies and programs during physician Darius Paduch’s tenure at WCM were inadequate to detect, prevent, and respond to the sexual abuse of patients.

“Today’s landmark agreement with WCM is a direct reflection of our Office’s pledge to prioritize combating sexual abuse through a victim-centered approach,” said Criminal Division Chief Amanda Houle.  “When victims are front of mind for our core community institutions—including in healthcare—sexual abuse is better detected, reported, and prosecuted so that perpetrators are held responsible and others are deterred.  Today’s agreement shows the benefits to victims when we pair criminal accountability for individual perpetrators with institutional obligations to maintain the strongest possible controls to safeguard against future sexual abuse. Thanks to the work of our dedicated Assistant U.S. Attorneys, Darius Paduch is spending his life in prison for his horrific crimes and, importantly, WCM, a leader in healthcare for New Yorkers, is committed to maintaining an industry-leading sexual-abuse prevention program and to self-reporting any future federal crimes involving sexual misconduct to our Office.  In addition to requiring continued enhancement of controls and reporting, the agreement requires WCM to commit $30 million and other non-financial support to establish the WCM Institute for Safe Patient Care and Patient Empowerment.  We look forward to working with the Institute to set new, higher standards for collaboration among medical institutions, patient safety organizations, regulators, and law enforcement aimed at stopping sexual abuse and ensuring prompt reporting of sexual misconduct in the healthcare system and in our community more generally.” 

“Along with U.S. Attorney Jay Clayton, I am proud to announce this agreement as a milestone in our ongoing victim-oriented effort, which is carried out every day by the women and men of the Southern District, including in our Civil Rights and Human Trafficking Unit.  In the past 18 months, our Office has charged more than 45 individuals with federal sex crimes, including teachers, licensed therapists, bankers, and others in positions of significant trust, as well as gang members and drug traffickers. Our Office will continue with full force to prosecute perpetrators and to hold institutions to the highest standards in protecting victims.”

“As the public has seen time and again, when medical institutions fail to implement and enforce robust safeguards to protect patients from sexual abuse, victims suffer unspeakable harms, and the public trust in the doctor-patient relationship is undermined,” said U.S. Attorney Jay Clayton.  “Today’s agreement sends a strong, clear message to all healthcare institutions: patient sexual abuse should never happen in our healthcare system, and institutions must devote the necessary resources to build and continuously monitor and improve programs that detect, report, and prevent sexual abuse—without exception. The agreement also underscores the commitment of our Office, in particular our Civil Rights and Human Trafficking Unit, to protecting victims from sex crimes in all corners of society. Together with our law enforcement partners, including the FBI and the NYPD, we are working with our schools, hospitals, businesses, government organizations, and other institutions to ensure that processes for identifying predators are improved and victims feel safe coming forward.”

Title III of the ADA prohibits places of public accommodation from discriminating against any individual on the basis of disability.  Victims of Darius Paduch’s sexual abuse suffered from certain genetic conditions, as well as sexual and erectile dysfunction, each of which constitutes a “disability” under the ADA.  In 2024, following a criminal trial in this District, Paduch was convicted of six counts of inducement to travel to engage in unlawful sexual activity, and five counts of inducement of a minor to travel to engage in unlawful sexual activity, in violation of Title 18, United States Code, Sections 2422(a), (b), and 2.  Paduch was sentenced to life imprisonment for his crimes.

The out-of-court Agreement resolves a yearslong criminal investigation during which the U.S. Attorney’s Office determined that over Paduch’s tenure, WCM maintained policies and programs insufficient to detect, prevent, and respond to Paduch’s widespread sexual abuse of patients.  Specifically, as detailed in the Agreement announced today, the investigation found, among other things, the following:

• From at least 2009 to 2019, Paduch sexually abused many of his patients—including boys as young as 13 years old.  During that time, WCM policy delegated to the now-former Urology Department chair (the “Former Urology Chair”) primary responsibility and authority to investigate staff and patient complaints, as well as the discretion to escalate complaints to the Dean or Vice Dean of the Medical School. 
• Between 2012 and 2014, the Former Urology Chair and the WCM Human Resources Department received reports of instances of Paduch using inappropriate sexual language and engaging in inappropriate conduct with colleagues. 
• In 2015 and 2016, the Former Urology Chair received two reports from two doctors that Paduch had manually masturbated one patient to become erect for an exam and directed another patient to masturbate while Paduch remained in the room.  The Former Urology Chair did not escalate these allegations against Paduch or report them to others at WCM. 
• In March 2018, WCM, including the Former Urology Chair, received a complaint alleging that Paduch told a patient to masturbate in his presence to become erect for an exam and showed the patient photographs of other men’s penises during the consultation.  WCM assigned that complaint to a WCM employee who had not received training and had no experience in investigating sexual abuse allegations.  The Former Urology Chair did not inform the investigator or anyone else at WCM of the prior complaints relating to Paduch.  
• In November 2018, an adult male patient reported to the Former Urology Chair that Paduch had engaged in what the patient described as sexual and nonsexual misconduct, including masturbating in front of the patient on Paduch’s boat and sending him lewd electronic messages.  The report was assigned to the same inexperienced investigator assigned to handle the March 2018 complaint.  As a result of the investigation, WCM ended Paduch’s employment at WCM by not renewing Paduch’s faculty appointment at WCM.  WCM sent Paduch’s patients a letter noting that Paduch was no longer practicing at WCM but did not provide the reason for his non-renewal.  Further, when the Former Urology Chair received inquiries from a separate medical institution where Paduch was subsequently hired and abused patients, he did not disclose the reason for Paduch’s termination from WCM or disclose any patient complaints. 

Since learning of Paduch’s sexual abuse, WCM has paid or agreed to pay victims over $1 billion to settle civil claims to date, and is committing additional funds to address detection, prevention, and reporting of sexual abuse and misconduct in the healthcare setting.  To that end, WCM will commit $30 million to create the Institute for Safe Patient Care and Patient Empowerment, which will be dedicated to the adoption of meaningful sexual abuse and misconduct risk mitigation policies, procedures, and practices at healthcare providers in New York and nationwide.

As part of the Agreement, WCM also acknowledged that the policies and programs that WCM had in place at the time of Paduch’s offenses were not adequate to detect, prevent, and respond to sexual abuse of patients and, in fact, failed to detect and sufficiently respond to Paduch’s conduct.  WCM has proactively taken significant remedial measures that WCM has committed to maintaining and enhancing during the term of the Agreement.  Under the Agreement, WCM will maintain, monitor, and, as necessary or appropriate, enhance such measures, which include a chaperone requirement with routine compliance oversight and monitoring and policy changes to fill governance and procedural gaps regarding the escalation and investigation of patient misconduct complaints.  Further, during the term of the Agreement, WCM is required to self-report to the U.S. Attorney’s Office any evidence of a criminal violation involving sexual misconduct. WCM must also conduct three separate internal reviews during the term of the Agreement to evaluate WCM’s sexual misconduct prevention programs.  WCM must certify semiannually its compliance with the terms of the Agreement. 

*                *                *

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

This case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with assistance from the Civil Rights Unit in the Civil Division.  Assistant U.S. Attorneys Marguerite B. Colson, Elizabeth A. Espinosa, Ni Qian, and David J. Kennedy are in charge of the case. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that on Friday, July 24, 2026, a jury found SAMUEL BAUTISTA, a/k/a “Sammy,” guilty of racketeering conspiracy, attempted murder and assault, and additional firearms and drug-related charges.  BAUTISTA was found guilty following a two-week trial before U.S. District Judge George B. Daniels and is scheduled to be sentenced on December 2, 2026. 

“On the evening of January 19, 2022, Bautista, an armed drug trafficker, shot at a rival dealer but missed, instead striking an 11-month-old baby girl who was seated in a car seat beside her mother in the face,” said U.S. Attorney Jay Clayton.  “Somehow, she survived, but with devastating injuries.  It was such an outrageous crime that it captured the attention of people across this city and this country the night it occurred.  New Yorkers want gun toting criminals off our streets and we hear them.  We will not allow armed drug traffickers to take this city from the women and men who are raising their families here.  And to the gangs who think the streets of New York are their territory to fight over, we remind you that you can cover your head, you can cover your face, but eventually, we will find you.  And when we find you, you will be convicted and you will go to federal prison.”

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

From 2011 to 2023, members of 2860, a violent drug-trafficking organization and street gang based at 2860 Grand Concourse in the Bronx, New York, distributed large quantities of cocaine base, in a form commonly referred to as “crack,” to their customers on the street.  Notwithstanding a prior federal drug-trafficking conviction for this very criminal activity, BAUTISTA was released from federal prison in 2016 and resumed armed drug trafficking.  At all times, the members of 2860 fought with rival dealers, with whom they clashed on many occasions, including on January 19, 2022, when BAUTISTA shot at a rival dealer and instead hit the baby girl. 

A number of BAUTISTA’s co-conspirators and fellow members of 2860 previously pled guilty and are awaiting sentencing, and the rival dealer whom BAUTISTA targeted on January 19, 2022, was also convicted and sentenced on multiple drug and firearms-related charges.

*                *                *

BAUTISTA, 33, of the Bronx, New York, was convicted of racketeering conspiracy, attempted murder and assault in aid of racketeering, and multiple firearms and drug-related charges.  The racketeering conspiracy and multiple firearms and drug-related charges all carry a maximum sentence of life in prison.  BAUTISTA faces a combined mandatory minimum sentence of 25 years.  

Mr. Clayton praised the victim’s parents for their commitment to obtaining justice for their daughter and the outstanding work of the New York City Police Department and the Federal Bureau of Investigation.  Mr. Clayton also thanked the Bureau of Prisons, the New York City Department of Correction, and the Utica Police Department for their assistance.

This case was investigated and prosecuted as part of Project Safe Neighborhoods (“PSN”), the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe.  Coordinated by the U.S. Attorneys’ Offices in each of the 94 federal districts, PSN is tailored to particular communities to address strategically specific violent crime and public safety challenges.  As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe.  PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Thomas John Wright and Ryan W. Allison are in charge of the prosecution, with the assistance of Paralegal Specialist Sandy Alcantara.

United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of DEREK WACHOB for orchestrating a multi-year scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million.  WACHOB pled guilty today to one count of wire fraud before U.S. District Judge J. Paul Oetken.

“Derek Wachob portrayed himself as a billionaire and accomplished CEO, but the success he projected was a fiction sustained by fraud,” said U.S. Attorney Jay Clayton.  “He defrauded victims—including some of his closest friends—of more than $66 million and used their money to bankroll a lifestyle of luxury cars, vacations homes, private jets, helicopters, and yachts.  In New York, we celebrate ambition, hard work, and honest achievement.  These are bedrock principles that fueled the growth of our great city.  Fraudsters undermine those principles and erode the trust in the fairness of our society.  Today’s guilty plea sends a message that fraud will not be tolerated and ensures Wachob faces the consequences of his lies.”

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

From at least in or about October 2022 through in or about August 2024, WACHOB—the Chief Executive Officer of a large manufacturer of steel pipes based in Sapulpa, Oklahoma (“Company-1”)—engaged in a scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million.  To obtain money from each of the victims, WACHOB lied and misled the victims by, among other things, falsely claiming to offer purported business opportunities based on future steel purchases that WACHOB pledged to make.  WACHOB used these misrepresentations to take millions of dollars from even some of his closest friends.  Instead of using the victims’ money as promised, WACHOB spent the funds to maintain his extravagant lifestyle of expensive cars, vacation homes, private jets, helicopters, and yachts, and prop up Company-1, which was struggling financially and in debt.

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WACHOB, 53, of Sapulpa, Oklahoma, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  WACHOB is scheduled to be sentenced by Judge Oetken on November 17, 2026.

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also thanked the U.S. Attorney’s Office for the Northern District of Oklahoma for its assistance.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of a four-count Indictment charging CANDICE JOHNSTON, a/k/a “Queen,” with racketeering conspiracy, murder in aid of racketeering, murder through the use of a firearm, and conspiring to traffic firearms in connection with JOHNSTON’s long-running leadership of the Red Life Militia gang, one of the sets of the nationwide Bloods gang.  JOHNSTON was arrested this morning and was presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.  The case is assigned to U.S. District Judge John P. Cronan.

“As alleged, Candice Johnston, known as ‘Queen,’ was a leader of a violent set of the Bloods gang calling themselves the Red Life Militia,” said U.S. Attorney Jay Clayton.  “During Johnston’s reign, on May 31, 2017, she ordered the brutal robbery and murder of Noel Farrow in the Bronx.  The people of the Bronx did not ask for, want, or deserve a destructive, self-proclaimed ‘militia,’ led by criminals in their neighborhood.  New Yorkers deserve to live safely in their neighborhoods, free from the influence of gangs like that which Johnston led and glorified.  The women and men of this Office will continue to relentlessly pursue and dismantle violent street gangs that jeopardize the safety of our communities.”

“As alleged, Candice Johnston led a violent Bloods set built on murder, armed robbery, gun and narcotics trafficking, promotion of prostitution, and other serious crimes,” said HSI Acting Special Agent in Charge Pete Gizas.  “By allegedly directing the robbery and murder of a former drug supplier and receiving illegal firearms trafficked from North Carolina to the Bronx, she stands accused of introducing lethal firepower and bloodshed into a Bronx neighborhood.  Together with our law enforcement partners, HSI will do everything in our power to keep New Yorkers safe.” 

“Candice Johnston served as the leader of the Bloods’ Red Life Milita, allegedly trafficking guns and drugs across the city, brazenly touting her gang affiliation on social media, and ordering the cold-blooded murder of a drug supplier,” said NYPD Commissioner Jessica S. Tisch.  “Her arrest is the direct result of the NYPD’s precision policing strategy at work: dismantling gangs, taking guns off our streets, and holding those who commit violence accountable.  I thank HSI and the U.S. Attorney’s Office for the Southern District of New York for their partnership in this case and their continued work to keep New Yorkers safe.” 

As alleged in the Indictment, other publicly filed documents, and statements made in court:(1)

JOHNSTON was the leader of the Red Life Militia, a subset of the United Blood Nation (“UBN”), a faction of the nationwide Bloods street gang.  The Red Life Militia gang engaged in, among other activities, acts involving murder, assault, gun trafficking, narcotics trafficking, promotion of prostitution, and robberies.  JOHNSTON frequently publicized her leadership in Red Life Militia through social media, displaying gang signs, tattoos, and other insignia of the gang, some of which include the following:

On May 31, 2017, JOHNSTON ordered a subordinate member of her gang to rob and murder Noel Farrow—a former drug supplier to the gang—in the Bronx, New York, which resulted in Farrow’s death from gunshot wounds. 

JOHNSTON also received firearms that had been illegally obtained in North Carolina and transported to JOHNSTON in the Bronx.

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JOHNSTON, 44, of the Bronx, New York, is charged with racketeering conspiracy, which carries a maximum sentence of life in prison; murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; murder through the use of a firearm, which carries a maximum sentence of life in prison or death; and conspiracy to receive firearms from out of state, which carries a maximum term of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of Special Agents and Task Force Officers of HSI, the NYPD and their Intelligence Section, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.  Mr. Clayton also thanked the Federal Bureau of Investigation for its invaluable assistance.

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant United States Attorneys Alexandra S. Messiter 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 phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that International Union of Journeymen and Allied Trades (“IUJAT”), United Service Workers Union, IUJAT National Union (“USWU”), Home Healthcare Workers of America, IUJAT (“HHWA”), Service Professionals Union Local 726 IUJAT (“LOCAL 726”), and United Welfare Fund - Welfare Division (“UWF”) (collectively, the “Defendants”) agreed to pay $3,850,000 to resolve allegations that they violated the False Claims Act by falsely certifying that they were eligible for Paycheck Protection Program (“PPP”) loans. 

The Defendants are organized as tax-exempt non-profit organizations pursuant to Section 501(c)(5) of the Internal Revenue Code.  The PPP was established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to assist small businesses nationwide adversely impacted by the COVID-19 pandemic.  Administered by the SBA, the program provided forgivable loans to eligible borrowers.  In April 2020, Section 501(c)(5) non-profit organizations were not eligible to apply for or receive PPP loans.  The settlement resolves claims that the Defendants violated the False Claims Act by falsely certifying their eligibility for PPP loans because, as 501(c)(5) non-profit organizations, the Defendants were ineligible for the loans at the time they applied.

“The Paycheck Protection Program was created to help eligible small businesses weather the economic strain of the pandemic through forgivable loans,” said U.S. Attorney Jay Clayton.  “The defendants here applied for and received millions of dollars in taxpayer funds for which they were not eligible.  This Office is committed to protecting taxpayer dollars and recovering public funds that flow to those who do not qualify.” 

As alleged in the Complaint filed in Manhattan federal court:

IUJAT, USWU, HHWA, and LOCAL 726 are labor unions, and UWF is an employee benefit plan that provides welfare benefits to members of these labor unions.  Between April 16 and April 20, 2020, each Defendant submitted, through its authorized representative, an application for a PPP loan.  In total, the Defendants received $3,316,966 in PPP loans.  Each Defendant certified on its loan application that it was eligible to receive the loan under the rules in effect at the time, and each Defendant later applied for and obtained full forgiveness of its loan.

At the time they applied in April 2020, the Defendants were 501(c)(5) non-profit organizations and were therefore ineligible to receive PPP loans.  Before applying, the Defendants were aware that an SBA regional employee had advised their contact at a bank that only 501(c)(3) and 501(c)(19) non-profit organizations were eligible for PPP loans.  Nevertheless, each Defendant decided to apply for and accept a loan.

The Defendants, at a minimum, acted with reckless disregard or deliberate ignorance of the fact that they were ineligible for the PPP funds at the time they applied.  In fact, the Defendants became aware on April 9, 2020, that the AFL-CIO—the nation’s largest federation of unions—had advised that labor unions were ineligible for PPP loans. 

As part of the settlement, the Defendants admitted and accepted responsibility for certain conduct alleged by the United States, including the following:

• Each Defendant certified on its PPP borrower loan application that it was eligible to receive the loan under the rules of the SBA in effect at the time the application was submitted.
• Before applying for the PPP loans, the Defendants were aware that an SBA regional employee had advised their contact at a bank that only 501(c)(3) and 501(c)(19) non-profit organizations were eligible for PPP loans.  The Defendants are not 501(c)(3) and 501(c)(19) non-profit organizations. 

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

Mr. Clayton praised the Small Business Administration’s Office of General Counsel for its assistance with this case.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging MICHAEL STAMP and MARCUS PLANK with securities fraud.  The charges arise from an alleged insider trading scheme in which STAMP and PLANK used confidential information belonging to their then-employer, Volkswagen Group, concerning a joint venture between Volkswagen and Rivian Automotive, Inc. to make hundreds of thousands of dollars in illegal profits.  STAMP and PLANK were arrested today and will be presented in the U.S. District Court for the Northern District of California.  The case has been assigned to U.S. District Judge Katherine Polk Failla.   

“Michael Stamp and Marcus Plank’s alleged exploitation of their employer’s confidential information allowed them to make more than $300,000 in illegal profits,” said U.S. Attorney Jay Clayton.  “When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently.  Insider trading is a crime that New Yorkers want pursued with vigor.  Its effects ripple through the financial system, harming ordinary investors and eroding public confidence.  Today’s charges underscore the commitment of this Office and our law enforcement partners to protecting the integrity of our markets and holding accountable those who choose to violate the law.”

“The case of Michael Stamp and Marcus Plank shows the FBI's commitment to protecting the integrity of our financial markets,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The co-defendants are alleged to have engaged in insider trading for personal gain, and we will work with our partners to identify those who threaten the United Stated economic system.”

According to the allegations contained in the Indictment:(1) 

Between April and July 2024, STAMP and PLANK engaged in a scheme to trade in the securities of Rivian Automotive, Inc. based on material nonpublic information concerning a multibillion-dollar joint venture between Rivian and Volkswagen Group.  STAMP and PLANK were employees of a Volkswagen subsidiary and worked in the United States on temporary assignment form Germany.  Through their positions, they gained access to confidential, nonpublic information concerning Volkswagen’s ongoing negotiations with Rivian about a potential joint venture.  Despite owing duties of trust and confidence to their employer, STAMP and PLANK began purchasing options and equity positions in Rivian shortly after learning of the joint venture discussions.  On June 25, 2025, Rivian and Volkswagen publicly announced their joint venture, and Rivian’s share price rose 23% the following day.  STAMP and PLANK then sold their Rivian positions, with STAMP realizing approximately $250,000 in profits, PLANK realizing at least approximately $50,000 in profits, and PLANK’s close family member realizing approximately $12,000 in profits.  STAMP and PLANK understood their actions were illegal.  For example, eight days prior to the announcement of the joint venture, STAMP searched “statute of limitations insider trading,” and following the announcement PLANK’s close family member searched, in German, “how is insider trading prosecuted?”

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STAMP, 31, of San Jose, California, and PLANK, 45, of San Jose, California, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison. 

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

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

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

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   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.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JAY LUCAS, the founder and managing partner of Lucas Brand Equity LLC (“LBE”), a private equity fund based in Manhattan, pled guilty to securities fraud, investment adviser fraud, wire fraud, and money laundering in connection with a scheme to raise over $50 million from investors by falsely representing that their money would be invested in early-stage health and wellness companies.  Instead, LUCAS diverted much of that money to cover personal expenses, promote unrelated ventures, and make Ponzi-like payments to earlier investors.  LUCAS pled guilty today before U.S. Magistrate Judge Robyn F. Tarnofsky. 

“Lucas lied to investors to induce them into investing millions of dollars in private equity funds that he created, promising to invest their money in emerging companies in the health and wellness space,” said U.S. Attorney Jay Clayton.  “In reality, Lucas used much of the money to pay for personal expenses and ventures entirely unrelated to the funds, and to make Ponzi-like payments to other investors.  Today’s plea reflects the continued commitment of this Office and our law enforcement partners to holding accountable investment advisers who abuse their investors’ trust to illegally enrich themselves.”

As alleged in the Indictment: 

LUCAS is the founder and managing partner of LBE and three private funds: Lucas Brand Equity LP (“Fund One”), L.B. Equity Emerging Growth LP (“Fund Two”), and L.B. Equity Wellness Growth L.P. (“Fund Three”).  Since 2017, LUCAS has defrauded investors by, among other things, systematically misappropriating their funds. 

LUCAS told investors that LBE’s “core strategy is to invest in these small to mid-size emerging brands, provide value added services to differentiate them and catalyze growth to a sufficient scale for exit.”  LUCAS raised over $50 million from investors and, instead of using the money as he promised, spent much of it on personal expenses, including alimony, rent, a vanity newspaper project in his hometown, and political consultants.  He also used new investor money to pay earlier investors in Ponzi-like fashion, enriching himself while starving the Funds and portfolio companies of capital.  In addition, LUCAS funneled investor money to Immunocologie, a luxury skincare business run by LUCAS’s wife, without disclosing that conflict of interest.  Much of the money for Immunocologie was then spent on trips, social events, and other unprofitable ventures.  Moreover, LUCAS arranged for LBE, not the Funds, to take majority ownership interest in Immunocologie, giving himself and not his clients an equity interest in the business. 

LUCAS’s misconduct left the Funds chronically undercapitalized and unable to cover basic fund expenses, including salaries for LBE employees.  Internally, employees continued to express frustration about LUCAS’s misuse of investor money, writing that LUCAS’s spending was “not spending on LBE,” was “literally fraudulent,” and was “a huge betrayal of investor trust and most likely illegal.” 

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LUCAS, 71, of Portsmouth, New Hampshire, pled guilty to one count of securities fraud, one count of wire fraud, and one count of money laundering, each of which carries a maximum prison term of 20 years, and one count of investment adviser fraud, which carries a maximum prison term of five years.  

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

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in the investigation.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Adam S. Hobson and David J. Robles are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that ASHANTI WASHINGTON, a/k/a “Shani Boni,” pled guilty today before U.S. Magistrate Judge Robyn F. Tarnofsky to committing perjury at the March 2025 federal criminal trial of United States v. Kevin Perez, in which Perez, who goes by the name “Kay Flock,” was on trial for racketeering, murder, and firearm offenses.  The case is assigned to U.S. District Judge George B. Daniels.

“As she has now admitted, Ashanti Washington swore an oath to tell the truth while testifying in federal court, but then lied to smear a murder victim and help a gang leader try to escape accountability for his violent crimes,” said U.S. Attorney Jay Clayton.  “Truth under oath is central to our system of justice, and this Office is committed to protecting it.”

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

On March 10, 2025, trial began in the matter of United States v. Kevin Perez, 23 Cr. 99 (LJL).  At the trial, Perez faced charges of racketeering conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, and possession, use, brandish, and discharge of a firearm during and in relation to the attempted murder in aid of racketeering.  On March 20, 2025, the jury returned guilty verdicts as to racketeering conspiracy, attempted murder, and the firearm discharge count, and returned a not guilty verdict with respect to the murder count.  Perez was sentenced principally to 30 years in prison by the U.S. District Judge Lewis J. Liman. 

On March 17 and 18, 2025, Washington testified at Perez’s trial as a witness during the defense case and lied under oath about central facts relevant to the murder charges that Perez was facing.  At trial, Perez claimed that he shot and killed the victim out of self-defense. 

Washington, who was with Perez at the time of the killing, falsely testified that the murder victim had threatened to shoot and kill Perez.  WASHINGTON’s false testimony had an immediate and direct impact on evidentiary rulings in the trial. 

As WASHINGTON has now admitted, the victim in fact never threatened to shoot or kill Perez.

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WASHINGTON, 24, of the Bronx, New York, pled guilty to one count of perjury at a federal criminal trial, which carries a maximum term of five years in prison.

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

Mr. Clayton praised the work of the Department of Homeland Security – Homeland Security Investigations and the New York City Police Department.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Michael Herman, Patrick R. Moroney, and Ni Qian are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Regional Director of the U.S. Federal Protective Service (“FPS”), Robert D. Sooter, announced charges against ANDREW ARRABACA after he set a fire outside of 26 Federal Plaza, sending flames and smoke up the outside of the building.  ARRABACA was arrested yesterday and presented today before U.S. Magistrate Judge Robyn F. Tarnofsky.

“As alleged, the defendant caused a scene of destruction and mayhem by setting a fire at the entrance to a federal building in lower Manhattan which houses thousands of federal employees and receives hundreds of visitors daily,” said U.S. Attorney Jay Clayton.  “I am thankful for the brave, swift response of our law enforcement partners who stopped the defendant before he could cause greater harm.  Once again, our bravest ran to the fire.  Anyone who commits reckless acts that endanger New Yorkers and federal employees on federal property will be subject to serious federal criminal charges.”

“Andrew Arrabaca allegedly attempted to disrupt and harm the individuals and infrastructure of 26 Federal Plaza,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “His alleged acts appear to have been motivated by his anti-Government and anti-ICE beliefs.  His unlawful conduct was immediately thwarted by the heroic response of the Federal Protective Service Officers, NYPD Officers, FBI Special Agents, and FBI Police Officers.  FBI New York has zero tolerance for violence targeted at federal employees who choose to serve all Americans.”  

“As alleged in the complaint, Andrew Arrabaca traveled to a government building in Lower Manhattan armed with weapons and explosive devices,” said NYPD Commissioner Jessica S. Tisch.  “Because of the quick and brave actions of law enforcement, no one was seriously injured, and Arrabaca was taken into custody.  This incident is a stark reminder of the dangers that law enforcement officers face and the importance of the NYPD’s work with our federal partners to keep the people of New York City safe.”

“The Federal Protective Service is dedicated to safeguarding federal property and ensuring the safety of all who work in and visit these facilities,” said FPS Regional Director Robert D. Sooter.  “Our mission is to protect federal buildings, their occupants, and visitors by providing comprehensive law enforcement services.  Safety is a top priority; we remain committed to maintaining secure environments that support the vital work of our nation’s government.” 

As alleged in the Complaint:(1)

On the morning of July 20, 2026, ARRABACA set off several fireworks in front of the Jacob K. Javits Federal Building at 26 Federal Plaza and shot a BB rifle in the direction of the building.  ARRABACA then poured a bucket of flammable liquid onto the ground outside one of the building entrances and ignited the liquid.  The liquid exploded into flames.  ARRABACA was captured on video footage shooting the BB gun, pouring and igniting the liquid, and running from the scene, as pictured below in still images from surveillance videos:

After setting the fire, ARRABACA retrieved a box of fireworks from a utility wagon that he had wheeled to the area and threw the box into the fire.  Law enforcement agents apprehended and arrested ARRABACA just as an explosion sounded from the direction of the fire.

ARRABACA was wearing military-style camouflage pants, a belt with tactical pouches containing BB pellets and carbon dioxide cartridges, and a helmet bearing several phrases, including, “Kill yourself.”  A cross-body bag containing a knife and matches was concealed under ARRABACA’s clothing, and a New York driver’s license for ARRABACA was recovered from ARRABACA’s person. 

As pictured below, after ARRABACA’s arrest, law enforcement agents searched the wagon and recovered numerous items, including a BB rifle and a pellet rifle, a machete, two hatchets, a mallet, a hammer, and what appeared to be several fireworks, including a cylindrical, multi-shot consumer firework with a printed label reading “Nuclear Warhead” and a black and yellow radiation symbol.  A sign on the wagon bore the phrase “ICE Off Our Streets.”

During a recorded, Mirandized post-arrest interview, ARRABACA stated, in substance and in part, that he was motivated to act by anti-government beliefs, including a belief that government authorities were unlawfully harming people, and that he had targeted the building entrance because he previously observed that it was a busy one.

At the time of ARRABACA’s actions, the entrances to the Federal Building were guarded by law enforcement officers and/or government-contracted security guards and there were numerous individuals in the immediate vicinity of the Federal Building.  As pictured below, some individuals were just feet away from ARRABACA as he poured and lit a flammable liquid, creating a fireball.

Multiple individuals were evaluated for injuries, including at least one victim who appeared to have been hit with debris from the fire and/or explosion, resulting in a gash on the back of the victim’s head.

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ARRABACA, 43, of Poughkeepsie, New York, is charged with destruction of property owned or leased by the United States by means of fire or explosives and causing personal injury or substantial risk of injury, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of 40 years in prison.

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

Mr. Clayton praised the outstanding response of the FPS and the FBI New York Field Office.  Mr. Clayton also praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section.

This case is being handled by the Office’s National Security and International Narcotics Unit and General Crimes Unit.  Assistant U.S. Attorneys Jane Chong, Samantha Fry, and Varun A. Gumaste are in charge of the prosecution, with assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section of the Department of Justice’s National Security Division.

1.  

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, Westchester County District Attorney, Susan Cacace, Bronx District Attorney, Darcel D. Clarke, Bergen County Prosecutor, Mark Musella, and Commissioner of the Westchester County Department of Public Safety, Terrance Raynor, announced today the unsealing of a 15-count Indictment charging 11 defendants (the “BB7 Defendants”) with racketeering conspiracy in connection with their membership in or association with the “Bad Boys” (“BB7”) set of the Trinitarios street gang, as well as with a spate of other BB7-related violent crimes committed between September 2023 and September 2025—including five murders and multiple assaults and armed robberies.  A 12th defendant, JAROL LEDESMA, a/k/a “El Nueve,” a/k/a “Lil Nueve,” was charged with Hobbs Act robbery and interstate stalking offenses in connection with the gunpoint robbery of a prominent international music artist, which was allegedly carried out with members and associates of BB7 in June 2025.  The case is assigned to U.S. District Judge Philip M. Halpern.

“As alleged, the BB7 Trinitarios, operating from their historical headquarters in the Bronx, terrorized communities in New York City, Westchester, and northern New Jersey, night after night,” said U.S. Attorney Jay Clayton.  “This indictment reflects a broad-based effort by SDNY and our dedicated federal and local partners to stop the violence and bring relief to affected communities across the tri-state area.  Collectively, we are committed to holding gang leaders and their deadly associates accountable for their truly brutal conduct.  This is what our New York families want us to do—and we applaud the FBI, the Westchester County Police Department, the New York City Police Department, the Westchester County District Attorney’s Office, the Bronx District Attorney’s Office, the Bergen County Prosecutor’s Office, the Essex County Prosecutor’s Office, the Westchester County Department of Public Safety, the Passaic County Prosecutor’s Office, and the Manhattan District Attorney’s Office for their efforts to bring justice and safety to the streets of the New York metropolitan area.”

“Members of the BB7 criminal organization allegedly carried out a campaign of violence that left victims and families suffering unimaginable loss,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Today's outcome sends a clear message: this type of violence will never be tolerated in New York.  The FBI New York Safe Streets Task Force remains steadfast in our mission to dismantle violent gangs, protect the American public, and deliver justice for the victims.”  

“These defendants, members of the Trinitarios gang, took part in a wave of violence and crime that claimed multiple lives and terrorized neighborhoods,” said NYPD Commissioner Jessica S. Tisch.  “This takedown is the result of the NYPD’s precision policing strategy and our relentless work targeting dangerous gangs and guns.  I thank our NYPD investigators and law enforcement partners for their commitment to dismantling these groups and making our streets safer.”

“Dismantling this network of organized violent criminals would hardly have been possible without one of the most extensive interagency partnerships in Westchester’s recent history,” said Westchester County DA Susan Cacace.  “I am proud of the significant role my office played in identifying and apprehending the individuals who murdered Ariela Mejia-Polanco last year in an act of unconscionable violence.  Either the highways of this county belong to the criminal gangs, or they belong to the public; through these charges, we are reaffirming that the rights of the law-abiding public will always come first. We can never allow our streets to be overtaken by organized criminal activity, and I thank all of our interagency partners for working in tandem to ensure this remains a durable promise.”

“I commend the outstanding work of the members of my office, the Southern District of New York, the New York City Police Department, and the FBI,” said Bronx DA Darcel D. Clarke.  “Their close collaboration resulted in the federal indictment of these defendants and demonstrates the power of coordinated law enforcement.  By holding violent offenders accountable, we are helping make our neighborhoods safer. To the families of the three men who lost their lives in these Bronx cases—Frankelis Tavarez, Adam Waldropt, and Gabriel Alvarez—I hope you find some measure of comfort in knowing that local and federal law enforcement are working together tirelessly to seek justice for your loved ones.  My office remains committed to pursuing justice with integrity while protecting our communities from violent crime.”

“Organized street gangs are not just a local problem,” said Bergen County Prosecutor Mark Musella.  “They are a regional public safety threat.  When criminals are willing to cross state lines to destroy lives, our response must be equally coordinated, equally determined, and completely relentless.  I am proud to say that in this case, cooperation among agencies and a dogged commitment by all involved brought us to this moment.” 

“The scope of work that was done by police and prosecutors to bring down this criminal enterprise is nothing short of outstanding,” said Westchester County Department of Public Safety Commissioner Terrance Raynor.  “I would like to commend the detectives from our General Investigations Unit, Forensic Investigations Unit, and our Real Time Crime Center—and all of our law enforcement partners—for their exemplary work. Inter-agency collaboration and technology were the keys to a successful conclusion in this particular homicide investigation.” 

As alleged in the Indictment and other documents filed in federal court:(1) 

From at least in or about September 2023 through September 2025, the BB7 Defendants, and others known and unknown, were members and associates of BB7, a “set” of the Trinitarios street and prison gang.  Members and associates of BB7 engaged in, among other activities, acts involving murder, assault, robbery, carjacking, narcotics trafficking, and wire fraud in and around the greater metropolitan area of New York City, including the Bronx and northern New Jersey.  In addition to racketeering conspiracy, the Indictment charges all of the BB7 Defendants with additional offenses, including:

On or about March 30, 2024, in the Bronx, SOSA and MANON murdered Frankelis Tavarez.

From on or about June 27, 2025, through on or about June 28, 2025, several of the defendants, including MARTHA, MERCEDES MARTE, PERALTA GOMEZ, PEÑA, and LEDESMA, used, among other means, a GPS tracker to stalk several victims by car from Massachusetts through Westchester County, the Bronx, and Manhattan to a hotel parking lot in the vicinity of Fort Lee, New Jersey.  There, while brandishing multiple firearms, they robbed a prominent international music artist in the middle of a U.S. tour of, among other things, high-value jewelry. 

On or about July 28, 2025, PLACENCIA, MERCEDES MARTE, PERALTA GOMEZ, CARBUCCIA, and PEÑA organized, planned, and carried out a retaliatory shooting targeting rival gang members in the vicinity of Paterson, New Jersey.

On or about July 28, 2025, at a car meet in the Bronx, MARTINEZ murdered Gabriel Alvarez and Adam Waldropt.

On or about August 2, 2025, in the vicinity of Newark, New Jersey, SOSA, PLACENCIA, MERCEDES MARTE, PERALTA GOMEZ, ABAD RIVAS, CARBUCCIA, and PEÑA murdered Alvis Perez Liriano.

On or about August 16, 2025, in the Bronx, MARTHA, MERCEDES MARTE, and CARBUCCIA planned, directed, and conducted an attempted armed robbery, during which CARBUCCIA and other members and associates of BB7 used firearms to shoot and seriously injure two victims.

On or about August 17, 2025, in the vicinity of Mount Vernon, New York, MARTHA, MERCEDES MARTE, PERALTA GOMEZ, ABAD RIVAS, CARBUCCIA, and PORTES GUABA, together with other members and associates of BB7, attempted to commit an armed carjacking of a black Mercedes-Benz G63 AMG SUV driven by Ariela Mejia-Polanco north from upper Manhattan through the Bronx into Westchester, where they shot and killed Mejia-Polanco during a high-speed pursuit on the Cross County Parkway.

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

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

Mr. Clayton praised the outstanding investigative work of the FBI.  He also thanked the NYPD, the Westchester County District Attorney’s Office, the Bronx District Attorney’s Office, the Bergen County Prosecutor’s Office, the Essex County Prosecutor’s Office, the Westchester County Department of Public Safety, the Passaic County Prosecutor’s Office, the Paterson Police Department, and the Manhattan District Attorney’s Office.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Carmi Schickler, John Sarlitto, and Christopher Morel are in charge of the prosecution.  Assistant U.S. Attorneys Timothy Ly and Patrick Moroney of the Office’s Violent Organizations and Crime Unit investigated the March 2024 murder of Frankelis Tavarez.  

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

CHARGE

DEFENDANTS

MINIMUM AND MAXIMUM PENALTIES

Count One 

Racketeering Conspiracy 

Title 18, United States Code, Section 1962(d)

CHELDRID SOSA

ERICK PLACENCIA

JUSTIN MARTHA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JEILIN PORTES GUABA 

JAVIER PEÑA 

ANGEL MANON

DARWIN MARTINEZ 

Count Two 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

CHELDRID SOSA 

ANGEL MANON 

Maximum: life in prison or death 

Minimum: life in prison

Count Three 

Interstate Stalking

Title 18, United States Code, Sections 2261A(1), 2261(b)(3), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ 

JAVIER PEÑA 

JAROL LEDESMA 

Count Four 

Interstate Stalking

Title 18, United States Code, Sections 2261A(2), 2261(b)(3), and 2

JUSTIN MARTHA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

JAVIER PEÑA 

JAROL LEDESMA 

Count Five 

Hobbs Act Robbery

Title 18, United States Code, Sections 1951, and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE 

JOSE PERALTA GOMEZ 

JAVIER PEÑA

JAROL LEDESMA 

Count Six 

Conspiracy to Commit Hobbs Act Robbery 

Title 18, United States Code, Section 1951

JUSTIN MARTHA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

JAVIER PEÑA

JAROL LEDESMA

Count Seven 

Firearm Use, Carrying, and Possession

Title 18, United States Code, Sections 924(c)(1)(A)(i) and (ii), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

JAVIER PEÑA

JAROL LEDESMA 

Maximum: life in prison

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

Count Eight 

Attempted Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(5), and 2

ERICK PLACENCIA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

WILFREN CARBUCCIA

JAVIER PEÑA 

Count Nine 

Murder in Aid of Racketeering

Title 18, United States Code, Section 1959(a)(1)

Maximum: life in prison or death

Minimum: life in prison

Count Ten 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

Maximum: life in prison or death 

Minimum: life in prison

Count Eleven 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

CHELDRID SOSA 

ERICK PLACENCIA 

MICHAEL MERCEDES MARTE 

JOSE PERALTA GOMEZ

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JAVIER PEÑA

Maximum: life in prison or death 

Minimum: life in prison

Count Twelve

Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(3), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

WILFREN CARBUCCIA

Count Thirteen 

Firearm Use, Carrying, and Possession 

Title 18, United States Code, Sections 924(c)(1)(A)(i), (ii), and (iii), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE 

WILFREN CARBUCCIA

Maximum: life in prison

Minimum: 10 years in prison, which must be consecutive to any other term imposed.

Count Fourteen 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ 

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JEILIN PORTES GUABA 

Maximum: life in prison or death 

Minimum: life in prison

Count Fifteen 

Attempted Carjacking Resulting in Death 

Title 18, United States Code, Sections 2119(3), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE 

JOSE PERALTA GOMEZ

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JEILIN PORTES GUABA 

1. ^

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

A New York man and woman made an initial appearance today in Brooklyn, New York on charges of conspiracy to launder money derived from cyber investment fraud scams.

According to the indictment unsealed today, between 2020 and 2022, Zhuoying Chen, 27, of Brooklyn, New York and Haojie Zhang, 38, of Queens, New York managed a network of more than a dozen individuals based in Queens and Brooklyn, who opened 140 bank accounts in the name of approximately 45 shell companies to launder at least $43 million in proceeds of investment scams. Then, Chen and Zhang allegedly conspired with China-based co-conspirators to transfer the funds involved in the fraud schemes abroad.  

According to the indictment, the fraud schemes consist of perpetrators contacting victims via messaging services or social media applications. The perpetrators would initiate relationships with the victims and gain their trust, convincing victims to send money for lucrative investment opportunities. The perpetrators would show the victims fake profits on the purported investment and encourage the victims to invest more. The perpetrators would then steal the victim’s funds. 

“As alleged in the indictment, the defendants laundered fraud proceeds, enabling scammers to continue to victimize Americans and deprive them of their hard earned money,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Dismantling Chinese money laundering networks that support investment fraud schemes is critical to protecting Americans. The Criminal Division will relentlessly pursue the financial networks that fuel and profit from these fraud schemes.” 

“As alleged, the defendants were key members of a sophisticated money laundering network that funneled over $40 million in victim funds to bank accounts in China,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Our Office will continue in its strong tradition of holding accountable anyone who seeks to prey on vulnerable victims with investment fraud schemes.” 

“The defendants’ alleged operation laundered more than $40 million from American victims and deposited them directly in Chinese accounts overseas,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI’s New York Field Office. “The FBI is committed to working alongside our federal partners to dismantle scam compounds that seek to steal the hard-earned money of our citizens.”

“For nearly two years, these two Chinese nationals allegedly ran a sophisticated, illicit network that laundered funds stolen from unsuspecting victims’ life savings,” said Acting Executive Associate Director John A. Condon of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). “Thanks to the dedicated efforts of HSI and our partners on the Homeland Security Task Force, this dangerous criminal enterprise has been exposed. HSI special agents remain relentless in their pursuit to dismantle money laundering networks and bring to justice anyone who seeks to profit from defrauding hard-working Americans.”

“Today’s indictment shows we’re not backing down against fraudsters who target innocent people — justice is coming for those who steal from hardworking Americans,” said Special Agent in Charge Harry T. Chavis Jr. of IRS Criminal Investigation (IRS-CI) New York. “This case reflects how IRS‑CI and our partners work side‑by‑side to uncover money‑laundering networks and protect the public. Together, we’re pushing forward to ensure Americans’ hard‑earned money is safe from schemes like these.”

“Investment fraud schemes exploit the trust of victims through false promises of favorable returns,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS)’s New York Division. “The US Postal Inspection Service is committed to investigating fraud and protecting the community from those who seek to profit through deception.”

The charge of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison.

The case is being investigated by FBI New York, HSI New York, IRS-CI New York, and USPIS New York.

Trial Attorneys Claire Galasso, David Ginensky, and Adrienne Rosen of the Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorneys Benjamin Weintraub and David Berman for the Eastern District of New York are prosecuting this case. MNF Financial Investigator Sheila Olander supported the investigation alongside former MNF Financial Investigator Kelly O’Mara.

The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

MNF’s Money Laundering and Forfeiture Unit investigates and prosecutes sophisticated money laundering schemes involving financial facilitators, gatekeepers, and other individuals and entities laundering criminal proceeds, and litigates complex civil forfeiture cases to recover assets on behalf of victims.

This prosecution is also part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, and Director of the Federal Bureau of Prisons (“BOP”), William K. Marshall III, announced today the unsealing of an Indictment charging KYLE BROWN, a former federal correctional officer with the BOP, with three counts of sexual abuse of a ward for engaging in sexual acts with an inmate he was responsible for guarding.  BROWN was arrested this morning and presented before U.S. Magistrate Judge Victoria Reznik.  The case is assigned to U.S. District Judge Philip M. Halpern.

“Sexual abuse will be met with federal charges throughout our society; it has no place anywhere and victims deserve protection everywhere,” said U.S. Attorney Jay Clayton.  “When a correctional officer abuses their power and harms an inmate, it is not only a violation of federal law—it is a betrayal of the trust that New York families place in our institutions.  We will continue to protect victims, pursue the truth, and hold accountable anyone who abuses their power for their own sexual gratification.”

“As alleged, Kyle Brown abused his authority to engage in sexual acts with an inmate under his protection,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI is committed to holding corrupt civil servants accountable.”

“The safety and security of federal prisons are of the utmost importance, and the DOJ OIG vigorously investigates allegations of abuse of inmates by Federal Bureau of Prisons staff to ensure that those who break the law and the public’s trust are held accountable,” said DOJ OIG Special Agent in Charge Ryan T. Geach.

“The allegations in the case represent a profound abuse of authority and a betrayal of public trust,” said BOP Director William K. Marshall III.  “Anyone who exploits their position of authority disgraces this profession and has no place in the Federal Bureau of Prisons.  Working alongside our law enforcement partners, we will pursue anyone who violates the law and ensure they are held accountable.”

According to the allegations in the Indictment and other public filings: 

Between in or about 2024 and on or about July 1, 2026, BROWN was employed as a federal correctional officer at Federal Correctional Institution, Otisville (“FCI Otisville”).  On three occasions between December 26, 2025, and April 4, 2026, BROWN engaged in anal and/or oral sex with an inmate who was incarcerated at FCI Otisville and over whom BROWN had authority.

                                                            *                *                *

BROWN, 27, of Newburgh, New York, is charged with three counts of sexual abuse of a ward, which carries a maximum sentence of 15 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the FBI and DOJ OIG, as well as the FBI Hudson Valley White Collar Crime Task Force and Otisville FCI Special Investigative Swift Response.

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division.  Assistant U.S. Attorneys Christopher Morel and Madison Reddick Smyser 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.   

United States Attorney for the Southern District of New York, Jay Clayton, announced that TODD FAUSTIN, a former correction officer at Rikers Island, was sentenced today to 15 months in prison by U.S. District Judge Lewis J. Liman for making false statements relating to healthcare matters in connection with use-of-force incidents that took place within Rikers Island.  As part of his sentence, FAUSTIN was ordered to pay $370,336.79 in restitution and $370,336.79 in forfeiture.

“Todd Faustin lined his own pockets by exploiting one of the most sensitive interactions in our justice system: the use of physical force against prisoners,” said U.S. Attorney Jay Clayton.  “Our justice system relies on correction officers to act safely and honestly while serving in our prisons.  Today’s sentence demonstrates that when officers abuse the system and undermine New Yorkers’ trust, they will be held criminally accountable.”

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

The New York State Workers’ Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including employees of the New York City Department of Correction (“DOC”).  Payments made by the Board to DOC employees are paid from the New York City Treasury. For years, FAUSTIN was employed by the DOC as a correction officer and was assigned to work at Rikers Island. During that time, FAUSTIN falsely claimed that he was injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force.  Rather than approaching use-of-force incidents with the gravity and sensitivity that such moments deserve, the defendant actively sought out these incidents and attempted to instigate them to steal money from the workers’ compensation system. 

*                *                *

In addition to the prison term, FAUSTIN, 43, of New York, New York, was sentenced to one year of supervised release and ordered to pay restitution and forfeiture. 

Mr. Clayton praised the outstanding work of the New York City Department of Investigation, the New York State Office of Inspector General, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York. 

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit and the Public Corruption Unit.  Assistant U.S. Attorneys Kaiya Arroyo and Stephanie Simon are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today the last sentencing of gang members and narcotics distributors as a result of a long-running investigation conducted by the Federal Bureau of Investigation (“FBI”) in Newburgh and Poughkeepsie, New York.  26 of the defendants were convicted of being members, associates, and co-conspirators of the violent street gang the Young Gunnaz (“YG”), including YG leader Kashad Sampson.  12 of the defendants were convicted of being members and associates of the violent street gang the Double Nine Grim Reapers (“Grimz”), including Grimz leaders Jeremy Williams, Randy Jones, and James White.  U.S. District Judge Kenneth M. Karas imposed the sentences in the YG case, United States v. Kashad Sampson, et al., 22 Cr. 640, and U.S. District Judge Philip M. Halpern imposed the sentences in the Grimz case, United States v. Jeremy Williams, et al., 22 Cr. 641.  RODNEY GEORGE, a defendant in the Sampson case, was the last in this series to be sentenced and received 108 months in prison.  

“For years, members and associates of the Young Gunnaz and the Double Nine Grim Reapers brought shootings, armed robberies, narcotics trafficking, and fraud to communities across the Hudson Valley,” said U.S. Attorney Jay Clayton.  “Today’s final sentencing marks the end of a years-long prosecution that removed over 40 of these violent gang members and drug traffickers from our streets.  No gang should get to claim a block, a neighborhood, or a city as its own, and this Office will continue to work with our federal, state, and local partners to dismantle violent criminal organizations and protect the communities they prey upon.”

As alleged in the Indictments, other court filings, and statements made during court proceedings:

Since at least 2018, the Grimz has been a brutally violent street gang.  The Grimz was founded by co-defendants Jeremy Williams, a/k/a “Dubs,” and Randy Jones, a/k/a “Nickelz,” and has hundreds of members across New York State, including throughout Orange County, Dutchess County, and the New York State prison system.  The Grimz is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws and celebrates gun violence.  The highest-ranking members and leaders of the Grimz, like co-defendants James White, a/k/a “Infared,” and Octavious Griffin, a/k/a “Tate,” have so-called “serial numbers” within the Grimz, which include the name of a 9-millimeter firearm.

Since at least 2019, the YG has been a violent street gang that operated through New York State and engaged in large-scale narcotics trafficking, wire fraud, armed robberies, and shootings.  For the most part, the YG defendants were part of the PlayBoyGzz subset of YG, which was led by, among others, co-defendant Kashad Sampson, a/k/a “Shoca.”  Like the Grimz, senior members of YG glorified violence and demanded action from its members. 

For years, the Grimz and YG terrorized communities in this District and demonstrated a complete disregard for human life.  The Grimz defendants were responsible for multiple armed robberies and shootings in the City of Newburgh, including the November 3, 2020, attempted murder of a rival gang member.  During that attempted murder, which involved co-defendants Justice Jackson, a/k/a “Tweak,” Tyrell Simon, a/k/a “Rello,” a/k/a “Insane,” Thomas Rodriguez, a/k/a “Tom Tom,” a/k/a “Checks,” and others, Rodriguez shot a rival gang member multiple times while the rival gang member sat in his vehicle.  The rival gang member survived after receiving life-saving medical treatment at two different hospitals.  The Grimz were also responsible for trafficking large amounts of deadly narcotics, like crack cocaine and heroin, on the streets and for trafficking K2, a synthetic cannabinoid, within the New York State prison system. 

The YG defendants were responsible for at least approximately 13 shootings, three armed robberies, and a large-scale narcotics trafficking conspiracy responsible for flooding the streets with fentanyl, heroin, crack cocaine, and other drugs.  In addition, some of the YG defendants also participated in a widespread scheme to defraud the New York state unemployment insurance program during the COVID-19 pandemic.  In total, these defendants made just over $1,000,000 through this scheme and caused at least one of their victims to fall into financial ruin because, as a result of YG’s fraud, the victim lost her total disability social security payment. 

*                *                *

The counts of conviction and sentences imposed on the defendants in the Sampson and Williams cases are contained in the chart below.

Mr. Clayton praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, City of Newburgh Police Department, New York State Police, Town of New Windsor Police Department, Town of Newburgh Police Department, New York City Police Department, and Nassau County Police Department.  Mr. Clayton also thanked the FBI’s Westchester Safe Streets Task Force, the New York City Department of Correction, Correction Intelligence Bureau, the Department of Labor Office of the Inspector General, and the City of Poughkeepsie Police Department for their assistance in the investigation.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jennifer N. Ong, Ryan W. Allison, and Margaret N. Vasu are in charge of the prosecution.

United States v. Kashad Sampson, et al., 22 Cr. 640 (KMK)

Defendant

Age

Counts of Conviction

Sentence

Kashad Sampson, 

a/k/a “Shoca”

27

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

200 months in prison

Five years’ supervised release

George Delgado,

a/k/a “Groc”

26

Racketeering Conspiracy

Assault with a Deadly Weapon in Aid of Racketeering

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

144 months in prison

Three years’ supervised release

Gabriel Roman, 

a/k/a “Gabe”

26

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

Aggravated Identity Theft

160 months in prison

Three years’ supervised release

Dallas Archer,

a/k/a “Muggas”

29

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

90 months in prison

Three years’ supervised release

Bruce Allen,

a/k/a “Bam”

28

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

Brandishing a Firearm in Furtherance of a Crime of Violence

154 months in prison

Three years’ supervised release

Syncere Tatum,

a/k/a “Syn”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

160 months in prison

Three years’ supervised release

John Lalanne,

a/k/a “JJ”

27

Racketeering Conspiracy

Brandishing a Firearm in Furtherance of a Crime of Violence

120 months in prison

Four years’ supervised release

Raekwon Jackson,

a/k/a “Tree”

26

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

170 months in prison

Four years’ supervised release

Bashir Mallory,

a/k/a “BG,”

a/k/a “Bear”

22

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

140 months in prison

Five years’ supervised release

Mekhi McDonald, 

a/k/a “Khi”

22

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

168 months in prison

Four years’ supervised release

Christopher Tate,

a/k/a “Bag”

23

Racketeering Conspiracy

Narcotics Conspiracy

140 months in prison

Four years’ supervised release

Kristopher Burgess Cunningham,

a/k/a “KG”

32

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

90 months in prison

Three years’ supervised release

Dejon Scott,

a/k/a “Red Dot”

30

60 months in prison

Three years’ supervised release

Davon Waddell,

a/k/a “Spotem,”

a/k/a “Light Skin Day Day”

28

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

Brandishing a Firearm in Furtherance of a Crime of Violence

164 months in prison

Four years’ supervised release

Zyrell Williams,

a/k/a “Zabb”

21

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

96 months in prison

Three years’ supervised release

Demetrius Ware,

a/k/a “Doom Doom”

21

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

90 months in prison

Three years’ supervised release

Antonio Pittman,

a/k/a “Ant”

24

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

84 months in prison

Three years’ supervised release

24

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

108 months in prison

Three years’ supervised release

Christopher Johnson,

a/k/a “Brisko”

32

Brandishing a Firearm in Furtherance of a Crime of Violence and Drug Trafficking Crime

Hobbs Act Robbery

Narcotics Conspiracy

144 months in prison

Four years’ supervised release

24

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

130 months in prison

Four years’ supervised release

Eric Steadman,

a/k/a “Little Man”

25

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

120 months in prison

Three years’ supervised release

Donald Leid,

a/k/a “Big Lip Day Day”

32

Narcotics Conspiracy

Brandishing a Firearm in Furtherance of a Crime of Violence and a Drug Trafficking Crime

94 months in prison

Five years’ supervised release

Tevin George,

a/k/a “Tev Roc”

32

84 months in prison

Five years’ supervised release

Devin Williams,

a/k/a “Twin,”

a/k/a “Dev”

29

54 months in prison

Three years’ supervised release

Dante Johnson, 

a/k/a “D Rose”

28

60 months in prison

Three years’ supervised release

George Tatum,

a/k/a “Buddy”

48

140 months in prison

Five years’ supervised release

Coleridge Lewter,

a/k/a “Korrupt”

45

72 months in prison

Three years’ supervised release

Rodney George,

a/k/a “Taco”

49

Narcotics Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

108 months in prison

5 years’ supervised release

United States v. Jeremy Williams, et al., 22 Cr. 641 (PMH)

Defendant

Age

Counts of Conviction

Sentence

Jeremy Williams,

a/k/a “Dubs”

37

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

300 months in prison

Three years’ supervised release

James White,

a/k/a “Infared”

47

Racketeering Conspiracy

Narcotics Conspiracy

300 months in prison

Three years’ supervised release

Messiah Jackson,

a/k/a “Two”

25

Racketeering Conspiracy

Narcotics Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

210 months in prison

Five years’ supervised release

Justice Jackson,

a/k/a “Tweak”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

180 months in prison

Five years’ supervised release

Octavious Griffin,

a/k/a “Tate”

39

Racketeering Conspiracy

Brandishing a Firearm in Furtherance of a Crime of Violence

234 months’ imprisonment

Five years’ supervised release

Markell Williams,

a/k/a “15”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

204 months in prison

Five years’ supervised release

Tyrell Simon,

a/k/a “Insane,”

a/k/a “Rello”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

180 months in prison

Five years’ supervised release

Joshua Hendrick.

a/k/a “Hendrix”

26

121 months in prison

Three years’ supervised release

Elijah Briggs,

a/k/a “Eli”

29

87 months in prison

Three years’ supervised release

Shamell Williams,

a/k/a “Mello Trend”

33

87 months in prison

Three years’ supervised release

Thomas Rodriguez,

a/k/a “Tom Tom,”

a/k/a “Checks”

34

Racketeering Conspiracy

Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering

Discharge of a Firearm in Furtherance of a Crime of Violence

Narcotics Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

360 months in prison

Five years’ supervised release

A complaint was unsealed today charging Abdul Zahir Qadeer, also known as “Haji Abdul Zahir,” a former general in Afghanistan’s Border Force and First Deputy Speaker of Afghanistan’s National Assembly’s House of the People, with conspiring to import heroin and methamphetamine and related firearms offenses. Qadeer is expected to appear in federal court in Manhattan today following his arrest in Nairobi, Kenya, on April 15, 2025, and extradition to the United States on July 10, 2026.

“While purporting to be a political leader of Afghanistan, Abdul Zahir Qadeer was allegedly leading a criminal enterprise dealing in dangerous and addictive narcotics and heavy weapons,” said Acting Attorney General Todd Blanche. “The Drug Enforcement Administration led an investigation that ended Qadeer’s audacious criminal activity, and now he will face justice in the United States.”

“Abdul Zahir Qadeer, a former high-ranking Afghan government official, allegedly also held a dual role as a large-scale international narcotics and military-grade weapons trafficker,” said U.S. Attorney Jay Clayton for the Southern District of New York. “In an attempt to traffic massive amounts of poison and weaponry — including heavy machine guns and rocket-propelled grenade launchers — Qadeer allegedly sold a two-kilogram test shipment to a buyer, which was delivered in South Africa. Unbeknownst to Qadeer, that buyer was working with the DEA. The scale of potential devastation Qadeer was attempting to bring to the U.S. is terrifying. This brazen effort underscores the need for the commitment and expertise of our career prosecutors and DEA partners.”

“"The world is safer now that Abdul Zahir Qadeer is facing justice in the United States. As a former General for Afghanistan's Border Force, Qadeer was entrusted to protect his country's borders — instead, he exploited his position to facilitate drug and weapons trafficking that fueled violence and instability,” said Administrator Terrance C. Cole of the Drug Enforcement Administration (DEA). “Make no mistake; we will use the full weight of the United States government to bring such individuals to justice. No matter where you are, no matter how powerful you think you are — you are not out of our reach.”

According to the allegations contained in the complaint and other public filings: Qadeer is a former member of Afghanistan’s National Assembly, which functioned as the legislature of Afghanistan until the Taliban regained control of the country in or about August 2021, and he was elected First Deputy Speaker of the National Assembly’s House of the People in or about 2012. Qadeer previously served as a general in Afghanistan’s Border Force, a paramilitary police organization responsible for securing Afghanistan’s border, commanding its Eighth Border Battalion in Takhar Province, Afghanistan. Qadeer is pictured below, dressed in blue, toward the left of the image:

Qadeer was also, until his arrest, a large-scale international narcotics and weapons trafficker.  As alleged in the complaint, Qadeer engaged in extensive negotiations with an individual who purported to be a member of an international drug trafficking organization (the “DTO”) but, unbeknownst to Qadeer, was in fact a confidential source (CS-1) working at the direction of the DEA.

In or about November 2024, CS-1 began communicating with Qadeer about their potential partnership in trafficking hundreds of kilograms of heroin and methamphetamine for importation into and sale in the United States for the purported DTO. As an early step in their partnership, on or about Dec. 10, 2024, Qadeer sold a two-kilogram test shipment of methamphetamine delivered to CS-1’s associate in Johannesburg, South Africa, in exchange for approximately $14,000.

Thereafter, Qadeer continued to negotiate with CS-1 regarding the sale to the DTO of hundreds of kilograms of heroin and methamphetamine, along with hundreds of heavy machine guns, assault rifles, sniper rifles, rocket-propelled grenade launchers, pistols, and grenades, which CS-1 represented would be used by the DTO to protect its drug trafficking activities from interdiction by the United States government. Pictured below is a purported weapons order from CS-1 that Qadeer agreed to fulfill: 

Upon receiving the weapons order, Qadeer provided CS-1 with quotes of how much he would charge to source each weapon, including, for example, $11,579 for one sniper rifle, $9,670 for one type of machine gun, and $1,770 for 10 grenades in one box.

In or about April 2025, Qadeer attended a meeting in Nairobi, Kenya, with several individuals who he believed to be members of the DTO he would supply with narcotics and weapons. In reality, it was a meeting between Qadeer and multiple DEA confidential sources. Kenyan law enforcement officers arrested Qadeer immediately following the meeting.

Qadeer has been charged with narcotics importation conspiracy, which carries a minimum penalty of 10 years in prison and a maximum penalty of life in prison; using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a minimum penalty of 30 years in prison and a maximum penalty of life in prison; and conspiring to use and carry machine guns and destructive devices during, and possess machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a maximum penalty of life in prison. 

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

DEA’s Special Operations Division Bilateral Investigations Unit investigated the case. The FBI’s Tactical Aviation Unit assisted with Qadeer’s extradition to the United States from Kenya. The Office of International Affairs of the Department of Justice’s Criminal Division and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigations also provided assistance.

Assistant U.S. Attorneys Jonathan L. Bodansky and Chelsea L. Scism for the Southern District of New York are prosecuting the case.

The charges contained in a complaint are merely accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced today the unsealing of a Complaint charging ABDUL ZAHIR QADEER, a/k/a “Haji Abdul Zahir,” a former general in Afghanistan’s Border Force and First Deputy Speaker of Afghanistan’s National Assembly’s House of the People, with conspiring to import heroin and methamphetamine and related firearms offenses.  QADEER was presented earlier today before U.S. Magistrate Judge Henry J. Ricardo and ordered detained pending trial, following his arrest in Nairobi, Kenya, on April 15, 2025 and extradition to the United States on July 10, 2026. 

“Abdul Zahir Qadeer, a former high-ranking Afghan government official, allegedly also held a dual role as a large-scale international narcotics and military-grade weapons trafficker,” said U.S. Attorney Jay Clayton.  “In an attempt to traffic massive amounts of poison and weaponry—including heavy machine guns and rocket-propelled grenade launchers—Qadeer allegedly sold a two-kilogram test shipment to a buyer, which was delivered in South Africa.  Unbeknownst to Qadeer, that buyer was working with the DEA.  The scale of potential devastation Qadeer was attempting to bring to the U.S. is terrifying.  This brazen effort underscores the need for the commitment and expertise of our career prosecutors and DEA partners.”

“While purporting to be a political leader of Afghanistan, Abdul Zahir Qadeer was allegedly leading a criminal enterprise dealing in dangerous and addictive narcotics and heavy weapons,” said Acting Attorney General Todd Blanche.  “The Drug Enforcement Administration led an investigation that ended Qadeer’s audacious criminal activity, and now he will face justice in the United States.”

“The world is safer now that Abdul Zahir Qadeer is facing justice in the United States,” said DEA Administrator Terrance C. Cole.  “As a former General for Afghanistan’s Border Force, Qadeer was entrusted to protect his country's borders—instead, he exploited his position to facilitate drug and weapons trafficking that fueled violence and instability.  Make no mistake; we will use the full weight of the United States government to bring such individuals to justice.  No matter where you are, no matter how powerful you think you are—you are not out of our reach.”

According to the allegations contained in the Complaint and other public filings:(1)

QADEER is a former member of Afghanistan’s National Assembly, which functioned as the legislature of Afghanistan until the Taliban regained control of the country in or about August 2021, and he was elected First Deputy Speaker of the National Assembly’s House of the People in or about 2012.  QADEER previously served as a general in Afghanistan’s Border Force, a paramilitary police organization responsible for securing Afghanistan’s border, commanding its Eighth Border Battalion in Takhar Province, Afghanistan.  QADEER is pictured below, dressed in blue, toward the left of the image:

QADEER was also, until his arrest, a large-scale international narcotics and weapons trafficker.  As alleged in the Complaint, QADEER engaged in extensive negotiations with an individual who purported to be a member of an international drug trafficking organization (the “DTO”) but, unbeknownst to QADEER, was in fact a confidential source (“CS-1”) working at the direction of the DEA. 

In or about November 2024, CS-1 began communicating with QADEER about their potential partnership in trafficking hundreds of kilograms of heroin and methamphetamine for importation into and sale in the United States for the purported DTO.  As an early step in their partnership, on or about December 10, 2024, QADEER sold a two-kilogram test shipment of methamphetamine delivered to CS-1’s associate in Johannesburg, South Africa, in exchange for approximately $14,000.  Thereafter, QADEER continued to negotiate with CS-1 regarding the sale to the DTO of hundreds of kilograms of heroin and methamphetamine, along with hundreds of heavy machine guns, assault rifles, sniper rifles, rocket-propelled grenade launchers, pistols, and grenades, which CS-1 represented would be used by the DTO to protect its drug trafficking activities from interdiction by the United States government.  Pictured below is a purported weapons order from CS-1 that QADEER agreed to fulfill: 

Upon receiving the weapons order, QADEER provided CS-1 with quotes of how much he would charge to source each weapon, including, for example, $11,579 for one sniper rifle, $9,670 for one type of machine gun, and $1,770 for 10 grenades in one box.

In or about April 2025, QADEER attended a meeting in Nairobi, Kenya, with several individuals who he believed to be members of the DTO he would supply with narcotics and weapons.  In reality, it was a meeting between QADEER and multiple DEA confidential sources. Kenyan law enforcement officers arrested QADEER immediately following the meeting.

*          *          *

ABDUL ZAHIR QADEER, 52, of Afghanistan, has been charged with narcotics importation conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and conspiring to use and carry machine guns and destructive devices during, and possess machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a maximum sentence of life in prison. 

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

Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit.  Mr. Clayton also thanked the Federal Bureau of Investigation’s Tactical Aviation Unit, which assisted with QADEER’s extradition to the United States from Kenya; the Office of International Affairs of the Department of Justice’s Criminal Division; and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigations for their assistance.

The prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jonathan L. Bodansky and Chelsea L. Scism 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.

United States Attorney for the Southern District of New York, Jay Clayton, announced that WEIDONG GUAN, a/k/a “Bill Guan,” the former Chief Financial Officer of The Epoch Times Association, Inc. (the “Epoch Times”), an international media company headquartered in New York, New York, pled guilty yesterday to participating in a conspiracy to engage in transactions involving criminal proceeds as part of a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, the Epoch Times.  GUAN pled guilty before District Judge Victor Marrero.  Sentencing has not yet been scheduled. 

“Weidong Guan orchestrated an elaborate multimillion-dollar money laundering scheme to increase revenues at the company where he served as Chief Financial Officer,” said U.S. Attorney Jay Clayton.  “Corporate leaders like Guan should take notice: boosting revenues through crime will not pay.  This Office is committed to holding perpetrators of financial crimes accountable and compensating victims.” 

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

From at least in or about 2019, through in or about May 2024, GUAN, while serving as Chief Financial Officer of the Epoch Times, conspired with others to participate in a sprawling, international scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Epoch Times and related entities. GUAN did so by using the Epoch Times’ funds to purchase crime proceeds loaded onto gift cards and prepaid debit cards at discounted rates of approximately 70 to 80 cents on the dollar, and then laundering those crime proceeds back to the Epoch Times under the guise of fake “donations” to the Epoch Times.  When banks notified GUAN that the transactions at issue were suspicious and asked GUAN to explain their source, GUAN knowingly misled the banks to believe the transactions were legitimate rather than criminal.   

*               *                *

GUAN, 63, of Secaucus, New Jersey, pled guilty to one count of conspiring to engage in transactions involving criminal proceeds, which carries a maximum sentence of ten years in prison.  GUAN also agreed to forfeit at least $67 million, representing property involved in the offense, and separately to pay restitution up to $67 million.  The criminal conduct at issue does not relate to the Epoch Times’ newsgathering activities.

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

One of GUAN’s co-conspirators, Le Van Hung, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” pled guilty on June 29, 2026, to participating in a conspiracy to commit identity theft based on his role in the money laundering scheme.  HUNG is scheduled to be sentenced on October 9, 2026.

Mr. Clayton praised the outstanding investigative work of the Department of Labor’s Office of Inspector General, the Department of State’s Diplomatic Security Service, and 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 Public Corruption Unit. Assistant U.S. Attorneys Benjamin M. Burkett, Rebecca T. Dell, Paul M. Monteleoni, Daniel C. Richenthal, and Amanda C. Weingarten are in charge of the prosecution, with the assistance of Paralegal Specialists William Spehr and Emma Vorchheimer.

Appointment of James M. McDonald

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that James M. McDonald will rejoin the Office as Deputy U.S. Attorney for the Southern District of New York for a period of transition.

“Mr. McDonald, an alumnus of the Office, is a remarkably accomplished, highly respected, and widely sought after counselor, strategist, and advocate, inside and outside the courtroom,” said U.S. Attorney Jay Clayton.  “Jamie is President Trump’s choice to be the next U.S. Attorney for the Southern District of New York, and he is an outstanding choice to lead the women and men of the Office in their efforts to serve New York families and all Americans.”     

Jamie McDonald’s experience as a lawyer and manager is vast. In addition to serving as an Assistant U.S. Attorney in the Southern District of New York, Mr. McDonald served as the Director of Enforcement at the Commodity Futures Trading Commission, as a Deputy Associate Counsel in the Office of the White House Counsel, and as a law clerk to Chief Justice John G. Roberts, Jr., of the U.S. Supreme Court and Chief Judge Jeffrey S. Sutton, Jr., of the U.S. Court of Appeals for the Sixth Circuit.

Prior to his appointment, Mr. McDonald was a Partner at Sullivan & Cromwell LLP where he was Co-Head of both the firm’s Securities & Commodities Investigations Practice and its Commodities, Futures and Derivatives Group.  He currently serves as an Adviser to the American Law Institute’s Principles of Compliance, Risk Management, and Enforcement.  Mr. McDonald previously served as a Visiting Scholar at Harvard Business School and as a Senior Fellow at New York University Law School’s Program on Corporate Compliance and Enforcement.

Mr. McDonald, originally from Oklahoma, graduated from the University of Virginia School of Law and from Harvard College.  

SDNY Leadership Transition

U.S. Attorney Jay Clayton, who has led the Office since April 2025, was recently nominated by President Trump to serve as the Director of National Intelligence.  To best serve the public and ensure a seamless transition in Office leadership, Deputy U.S. Attorney McDonald will begin to supervise the work and operations of the Office while Mr. Clayton attends to the Senate confirmation process. 

During this transition period, the executive leadership team of Sean Buckley, Amanda Houle, Jeff Oestericher, and Karl Metzner will continue to lead the Office’s work.  

“Under Sean, Amanda, Jeff, and Karl’s leadership, the Office has thrived,” said U.S. Attorney Jay Clayton.  “Their strategic allocation of resources, coordination with the NYPD, the FBI, HSI and other law enforcement partners, and their mentorship of our AUSAs have made our streets safer, combatted the efforts of terrorists and drug cartels, and pursued perpetrators of sexual exploitation and hate crimes in all aspects of our society.  We have steadfastly protected the interests of the United States, including rooting out fraud and abuse, and ensuring those entitled to benefits receive them.  It has been my great pleasure to work with Sean, Amanda, Jeff, and Karl, and I know that, with the addition of Jamie, they will continue to be an extremely effective leadership team.”

Jay Clayton Applauds the Work of the SDNY and its Law Enforcement Partners

Statement of U.S. Attorney Jay Clayton:

“In my first days as U.S. Attorney in April 2025, I asked the members of the Office ‘Where would New York families want us to focus our resources?’  Their answers led to setting the following priorities for the Office: 

• Removing career, gun-toting criminals from our streets;
• Combating the deadly fentanyl epidemic by bankrupting drug cartels and incarcerating gang leaders and their deadly soldiers; 
• Pursuing foreign adversaries who are committed to harming Americans, sowing dissent, and undermining our freedoms; and 
• Uncovering and prosecuting sex crimes and hate crimes across our communities. 

We also turned our ‘white collar’ resources on the most egregious fraudsters, insider traders, and abusers of our financial systems, public trust, and benefits programs — focusing on individual accountability and the interest of victims.

Through the round the clock efforts of the women and men of the Office, and in partnership with the NYPD (the greatest police force in the world), our DOJ colleagues, the FBI, Homeland Security, the DEA, the Department of State, the Department of the Treasury, and our many other law enforcement colleagues, we have delivered on these priorities for our fellow New Yorkers and our fellow Americans.  I am grateful to every member of the Office and the tens of thousands of officers, agents, and others who wake up every day with a commitment to ensuring our safety and protecting our freedoms.  Their dedication to the public, expertise in the law, skills in advocacy, and most importantly, mutual support, are unparalleled.”     

Below are some examples of the results of this team effort in our priority areas.

Removing Career, Gun-Toting Criminals from Our Streets

In April 2025, the SDNY joined with the Gun Violence Strategies Partnership (GVSP), an important New York City-led organization where representatives of over twenty city, state, and federal law enforcement bodies meet seven days a week to immediately and collectively address gun violence from the previous day.  Dedicated SDNY personnel work continuously with the GVSP and the NYPD to identify gun crimes where federal charges will remove career, gun-toting criminals from our streets immediately and continuously. 

Through our efforts to combat gun violence, in the past 15 months, over 250 individuals with career criminal histories have been charged with federal gun crimes and detained pending trial.  More importantly, compared to 2024, the murder rate in New York City is down by 25% and trending lower.  New York is our safest large city.  This is what New York families want and deserve.        

Combatting the Deadly Fentanyl Epidemic; Bankrupting Drug Cartels; Incarcerating Gang Leaders and their Deadly Soldiers

The illegal drug trade is a scourge on America.  The international drug cartels are committed to flooding all aspects of our society — schools, businesses, public housing, etc. — with addictive drugs.  These are billion dollar, often foreign government-enabled criminal organizations that have vast production and distribution networks.  Hooking Americans, corrupting government and business leaders, and brutally defending their turf is their stock-in-trade.  They knowingly embrace the death and destruction that follow. 

We have joined the Administration’s whole of government approach to combatting these enemies of America.  From New York City, Yonkers, White Plains, and Newburgh, to South and Central America, to China and the Middle East, our prosecutors and law enforcement partners are on a mission to bankrupt the cartels and take back our parks, schools, and housing projects.  We are winning.  Provisional reporting shows overdose deaths in New York in 2025 were down by approximately 25% compared to 2024 and continue to drop to their lowest levels in years.  The Office is committed to continuing this trend. 

In October 2025, together with the NYPD and the DEA, we shut down open-air drug dealing in Washington Square Park and charged over 15 individuals with federal drug crimes involving multiple overdose deaths.  Children can now play safely in Washington Square Park, and we have taken that model to other parks and housing projects.  Drug gangs in New York now know our truth: if you deal in fentanyl, you deal in death, and we will hold you accountable. 

In April of 2026, we charged nine current and former Mexican officials with drug trafficking, weapons offenses, and related federal crimes.  These allegations center on coordination with the Sinaloa Cartel, an organization responsible for the deaths of tens of thousands of Americans.  We also charged drug trafficking and weapons offenses involving Nicolas Maduro and other Venezuelan officials and Mexico’s Jalisco New Generation Cartel (CJNG).

The drug cartels affiliate with large-scale gangs, including Tren de Aragua (TDA), in their bloodthirsty efforts to expand and protect drug distribution.  Our focus on incarcerating gang leaders and their soldiers has resulted in charges against more than 40 alleged gang members in the past year.  In December 2025, we charged a top leader of TDA with racketeering, terrorism, and drug trafficking offenses.  We also charged leaders of the Anti-Tren splinter gang with similar offenses and have overall secured convictions against more than 10 TDA-related gang members, including multiple convictions for murder, drug-trafficking, and sex-trafficking.

Some believe we must accept cartels, gangs, and deadly drugs as part of our community.  They have been proven wrong. 

Pursuing Foreign Adversaries Who Threaten our Safety and Seek to Sow Discontent

Hamas, Hezbollah, Al-Qaeda, the IRGC, and ISIS are terrorist organizations and sworn enemies of the United States and western society, seeking to kill Americans at home and abroad.  Together with partners across the federal government, we are bringing their leaders to justice. 

In May 2026, Mohammad Al-Saadi, an alleged senior operative of Kata’ib Hezbollah and the IRGC, was arrested on terrorism charges involving multiple attacks and attempted attacks in Europe, Canada, and the U.S.  Al-Saadi is now detained in the United States and awaits trial in Manhattan.  This is one of several recent actions by our Office to disrupt the IRGC threat, including in the cybersecurity space. 

These terrorist organizations rely on foreign governments and others for funding.  Our Office is working with our federal partners to cut off their access to funds and to charge those who provide financial and other support for terror.  We recently charged Reda Sabassi in connection with his efforts to divert funds raised through purported charitable campaigns to Hamas and for personal use, and, together with our federal partners, we are pursuing similar targets. 

Our social media platforms and on-line networks are being exploited by terrorists, hostile foreign governments, and their proxies to commit offensive hacking of critical infrastructure networks and to radicalize young men and women and sow political and social discontent.  This activity is pervasive.  The costs to our foreign adversaries to radicalize and inflame using social media are low and the “benefits” to our adversaries can be great. 

In March 2026, we charged two men with multiple federal terrorism charges for allegedly throwing bombs into a crowd outside the New York City Mayor’s residence (Gracie Mansion).  Our Indictment alleges that these young men, residents of Pennsylvania, were radicalized on-line, including by watching ISIS propaganda, and intended to kill in upwards of sixty people. 

We also continue in our investigations of efforts by foreign adversaries to wage influence campaigns within the United States, to affect U.S. public policy and opinion, and to interfere with government functions. 

A great challenge we all face, and one our Office is facing head on, is protecting our sacred freedoms of speech, free association, and privacy while combatting foreign actors who use criminal means in efforts to exploit our open communications and other networks to harm us.

Uncovering and Prosecuting Sex Crimes and Hate Crimes Across Our Communities

Sex crimes, including the sexual exploitation of minors, are all too prevalent in our communities, including our schools, our hospitals, and our places of worship — the places we must trust most and must keep free from predators.  Our Office has dedicated substantial resources to this mission and adopted a victim-oriented approach to uncovering and prosecuting sexual predators. 

In the past 18 months, our Office has charged 41 individuals with federal sex crimes, including teachers, licensed therapists, bankers, and others in positions of significant trust, as well as gang members and others involved in violent crime.  Our Office, including through our Civil Rights and Human Trafficking Unit, has focused on advocating for victims by holding accountable perpetrators of sex crimes from all corners of society, including drug dealers and gang members, well-resourced financial industry leaders, real estate professionals, and public media personalities.  In addition, our prosecutors and our Civil Division AUSAs are working with our schools, hospitals, and other institutions to ensure that processes for identifying predators are improved and victims feel safe coming forward.    

In the past 18 months, the Office has also prosecuted several significant hate-based crimes in New York City, including a defendant charged with three hate crimes in connection with repeated assaults of Jewish victims in New York City between 2024 and 2025; a violent attack on a visiting Israeli rabbi on the street outside a well-known kosher restaurant, allegedly based on his religion; and an alleged attack on a gay man in the Bronx.  To further our work in this area, we hosted a conference with community leaders at NYU Law School on June 8, 2026.  The conference, titled Combatting Hate Crimes in NYC, brought together approximately 100 leaders from a diverse range of religious, ethnic, and other backgrounds to discuss federal and state efforts to prevent, investigate, and prosecute hate crimes.

When someone is attacked because of who they are — because of their faith, their ethnicity, their race, their sexual orientation — the message is not just directed at that one victim.  The message is sent to an entire community: you are not safe here. You do not belong here. You are vulnerable.

That message is unacceptable — in New York City, or anywhere else in the United States.

Prosecuting and Deterring Fraud, Waste, and Abuse

The world-leading success of our financial markets is a direct result of their integrity and the public trust.  Our Office has had a remarkably active role in ensuring market integrity in the last 18 months, criminally charging 27 CEOs and corporate leaders with fraud, charging 12 individuals with insider trading, and doubling the number of insider trading investigations year over year.  Beyond our financial markets, we have relentlessly pursued and charged those responsible for defrauding consumers, investors, and lenders of more than $1 billion in the past year alone, as well as those who cheat taxpayers by defrauding our local and federal government out of millions more.   

Our Civil Division has continued its exemplary efforts to combat benefits fraud — a scourge that wastes billions of taxpayer dollars every year.  In April 2025, we obtained a judgment after trial of nearly one billion dollars against Omnicare for fraudulently billing Medicare and Medicaid for drugs dispensed without a proper prescription.  In December 2025, we entered into a $37.76 million health care fraud settlement with CVS Pharmacy, Inc. for dispensing more insulin than patients needed and improperly receiving reimbursements from Medicare and Medicaid.  And just last month, we obtained a $36.5 million settlement of a False Claims Act suit against Matrix Medical Network for submitting false and invalid patient diagnoses to the Government to artificially inflate its Medicare payments. 

We have also improved our program that incentivizes companies to report misconduct so that it can quickly be addressed, individuals can be held accountable, and victims can be made whole.  Since its launch on February 24, 2026, SDNY’s Corporate Enforcement and Voluntary Self‑Disclosure Program for Financial Crimes has quickly gained traction and yielded tangible results.  Companies have a mechanism through which they can quickly commit to cooperation, restitution, and remediation and, in exchange, have prompt and predictable results.  Following the announcement of our program, our self-reports have substantially increased. Importantly, several of the resulting investigations have led to the identification of criminal conduct well beyond the reporting companies that, absent the self-report, may have gone undetected. 

A first public and flagship example of the benefits of this program to the public is Telekom Malaysia Berhad, which self-reported a fraud scheme and promptly received a declination conditioned on full cooperation, and, just weeks later, we were able to charge senior leaders at the company’s U.S. subsidiary with fraud. 

Our efforts to root out misconduct and build public trust have extended to prosecution of public officials who prioritize greed over the public good.  In January 2026, we charged a former high-ranking City Hall official with abusing his position to commit bribery and fraud.  In February 2026, we secured an indictment charging the former commanding officer of the New York City Police Department School Safety Division and a Florida businessman with bribery offenses.  We have also secured convictions and sentences of former high-ranking chiefs in the New York City Fire Department for soliciting and accepting bribes;  70 NYCHA employees charged with bribery, fraud, or extortion offenses; and defendants who have defrauded federal programs and charities out of millions. 

Conclusion

“Working with the women and men of the SDNY and our partners on behalf of New York families and all Americans to keep them safe from harm, protect their freedoms, and improve their quality of life, has been an immense privilege.  The Office is in great hands, has remarkable professionals, and will deliver more and more for the people of New York and America in the days to come.

I thank President Trump for entrusting me with this important role, Acting Attorney General Todd Blanche for his leadership, my colleagues at the SDNY for their unwavering commitment to the priorities of the Office, and the people of New York for their partnership, including, importantly, Police Commissioner Jessica Tisch and the women and men of the NYPD. New York is the greatest city on Earth, in the greatest country on Earth, because we support each other’s safety and freedom.”

United States Attorney for the Southern District of New York, Jay Clayton, announced today the return of two antiquities which were stolen from the Republic of Indonesia as part of an organized looting network and sold by antiquities dealer Douglas Latchford to an American collector (the “Collector”).  In or about late 2021, the Collector voluntarily relinquished a total of 34 Cambodian and Southeast Asian antiquities purchased from Latchford.  The two antiquities were returned to Indonesia today at a ceremony celebrating their repatriation at the Indonesian consulate.

“Today, we celebrate the return of Indonesia’s cultural heritage to the Indonesian people,” said U.S. Attorney Jay Clayton.  “This Office is committed to thwarting the illicit trafficking of looted and stolen art and antiquities.  We will continue to partner with HSI to end callous profiteering from stolen artworks of cultural significance, and we thank the collector of these works for their voluntary safe return.  It is with great pleasure that we send these artworks on the final leg of their journey home.” 

 The antiquities returned to Indonesia today are two 8th Century standing bronze Buddhist sculptures depicting Avalokiteshvara, approximately 16 and 20 inches tall.  The sculptures were illicitly removed from archeological sites in Indonesia by a team of looters decades ago and then sold to Latchford, who was based in Bangkok.  Between 2003 and 2007, Latchford sold these and other Southeast Asian antiquities to the Collector.  Over the years, Latchford lied to and withheld information from the Collector to conceal that the pieces were stolen.  The two bronze sculptures returned to Indonesia were the subject of a civil forfeiture action filed in this District, United States v. A Late 12th Century Bayon-Style Sandstone Sculpture Depicting Eight-Armed Avalokiteshvara, et al., 22 Civ. 229 (JMF), and identified as “Sculpture-12” and “Sculpture-27” in the civil forfeiture complaint. 

Since 2012, the U.S. Attorney’s Office for the Southern District of New York, in partnership with Homeland Security Investigations (“HSI”), has successfully investigated, identified, and repatriated dozens of stolen and illegally imported Cambodian and other Southeast Asian antiquities in the possession of individuals and institutions in the United States.  Latchford was previously indicted in the Southern District of New York in 2019 for orchestrating a multi-year scheme to sell looted Cambodian and other Southeast Asian antiquities on the international art market.  The Indictment was later dismissed due to Latchford’s death.  

*                *                *

Mr. Clayton thanked HSI for its outstanding work to recover and repatriate the stolen and looted cultural property. 

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

United States Attorney for the Southern District of New York, Jay Clayton, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a six-count Indictment charging SEAN CHISOLM, a/k/a “Slutty,” with the sex trafficking of a 16-year-old victim (“Minor Victim”), coercion and enticement of the Minor Victim, transportation of the Minor Victim from another state to New York for unlawful sexual activity, sexual exploitation of a child, and two counts of receipt and distribution of child pornography.  CHISOLM was arrested today and will be presented at a later date. The case is assigned to U.S. District Judge George B. Daniels.

“As alleged, Sean Chisolm lured a 16-year-old girl to New York so that he could sexually exploit and traffic her,” said U.S. Attorney Jay Clayton.  “Chisolm then had her engage in dangerous sex work, from which he financially profited.  Crimes like these, which target and exploit our most vulnerable, are among the worst crimes in our society.  The message from our Office and the NYPD is clear: if you sexually abuse a minor, we will find you and you will go to prison.”

“This defendant targeted a minor, coerced her into traveling out of state, and cruelly exploited and trafficked her for money,” said NYPD Commissioner Jessica Tisch.  “These crimes are not only illegal, they are absolutely reprehensible, and the NYPD is committed to protecting children from predators like this defendant.  I thank our NYPD investigators and law enforcement partners for their work on this case to bring this criminal to justice and prevent other children from being victimized by him.”

As alleged in the Indictment and other public filings:(1)

Beginning around January 2026, CHISOLM enticed the Minor Victim to travel from out-of-state, where she lived with her family, to New York so that the Minor Victim could engage in commercial sex work at CHISOLM’s direction.  Before the Minor Victim traveled to the Bronx, CHISOLM obtained from the Minor Victim a photograph and two videos that depicted the Minor Victim naked.  CHISOLM also talked with the Minor Victim about the sex acts that he wanted to engage in with her when she arrived. 

Between approximately February 2026 through March 2026, CHISOLM acted as Minor Victim’s self-described “pimp,” arranging for multiple acts of commercial sex for the Minor Victim and requiring the Minor Victim to provide him with her earnings. CHISOLM also posted an advertisement on an online classifieds website, featuring naked photos of the Minor Victim, which advertised the Minor Victim as, among other things, “Fetish Friendly.” In addition, during this time, CHISOLM filmed a video of the Minor Victim engaging in a sex act, which he told her he was planning to post online to expand her customer base. 

As early as their first conversation, CHISOLM was aware that the Minor Victim was 16 years old and frequently discussed with the Minor Victim the precautions that they would need to take as a result of the Minor Victim’s age.  For example, CHISOLM told the Minor Victim, “We just have to move correct ma[.]  Because of ya age feel me?  Never let anyone know ya real age but me NOBODY.”  CHISOLM also instructed the Minor Victim, “My rules is listen to me nd don’t tell nobody your real age nobody but daddy should know that.”      

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CHISOLM, 33, of the Bronx, New York, is charged with sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; coercion and enticement of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; transportation of a minor for unlawful sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison; and two counts of receipt and distribution of child pornography, each of which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 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 defendant will be determined by a judge.

Mr. Clayton praised the outstanding work of the NYPD SVU Citywide Human Trafficking Squad and the Special Agents, Task Force Officers, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area from the U.S. Attorney’s Office for the Southern District of New York in connection with this investigation.  Mr. Clayton also thanked the Bronx County District Attorney’s Office and the FBI-NYPD Child Exploitation and Human Trafficking Task Force in New York.

This case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division.  Assistant U.S. Attorneys Ariel Cohen and Meredith Foster are in charge of the prosecution.

The charge contained in the Indictment is merely an allegation, 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 in this release constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Nashville Field Office of the Federal Bureau of Investigation (“FBI”), Terence G. Reilly, announced today the filing of two civil forfeiture Complaints for more than $19.5 million in cash and stock obtained through pump-and-dump market manipulation schemes involving CTRL Group Limited (“CTRL Group”) and Dreamland Limited (“Dreamland”), Hong Kong-based companies listed on the Nasdaq stock exchange.  The proceeds were previously seized pursuant to judicially-authorized seizure warrants. 

“Today’s action demonstrates our unwavering commitment to protecting U.S. investors and safeguarding the integrity of our markets,” said U.S. Attorney Jay Clayton.  “These schemes, driven by Asia‑based small‑cap foreign issuers seeking to manipulate share prices and exploit American investors, pose serious risks to those who place their trust in our financial system.  Investors should exercise caution when dealing with thinly traded foreign issuers, as these companies can be especially vulnerable to manipulation and can expose investors to significant, often hidden, risks.  I want to thank the FBI and our law enforcement partners for their exceptional work and their continued dedication to rooting out this conduct and prioritizing the recovery of funds stolen from victims.”

“Pump-and-dump schemes erode the integrity of our capital markets and cause financial hardship for countless investors,” said FBI Special Agent in Charge Terence G. Reilly.  “The recovery of $19.5 million is an important first step toward providing relief for victims and should serve as a reminder that the FBI will vigorously investigate and pursue those who seek to manipulate financial systems for personal gain.”

According to the allegations contained in the Complaints filed in Manhattan federal court today:(1)

CTRL Group 

CTRL Group is a British Virgin Islands-registered company that purports to offer marketing and advertising services in Hong Kong, including mobile game promotions.  CTRL Group began trading on the Nasdaq stock exchange under the symbol MCTR on January 22, 2025.  

In late May and early June 2025, various social media accounts on multiple platforms began to post hundreds of identical comments touting MCTR as a stock that was going to increase in value.  For instance, these users would make a post saying “$MCTR Here We Go” or “$MCTR New alerts have been posted in the last hours,” followed by a link to a Discord group chat that purported to offer investment advice. 

On June 3, 2025, MCTR stock price and trading volume spiked sharply.  MCTR opened at $7.12 per share—up more than 50% from the prior day—hit an intra-day high of $33.69 per share, and closed at $32.90 per share, with approximately 44,200,000 shares trading that day, a jump of more than 70,000% compared to the previous day.  Similar price surges occurred on June 4 and June 5.  The surge in MCTR’s price and volume was accompanied by a surge in social media activity promoting MCTR.  After the social media activity stopped, MCTR’s stock price dropped.  By the end of June 2025, MCTR’s stock price had declined to $2.82 per share.

Between MCTR’s initial public offering and June 5, 2025, and primarily during the period of social media promotion discussed above, 10 U.S. brokerage accounts engaged in massive, profitable, and anomalous trading in MCTR, selling a combined total of approximately 1,065,313 shares for total proceeds of approximately $11,966,324.44.  These 10 accounts were opened by individuals located in China or Hong Kong.  Although the accounts were ostensibly owned and controlled by different people, eight of these accounts logged into their brokerage accounts with the same IP address and/or MAC address as at least one of the other accounts, indicating collusion.

On or about June 1, 2026 and June 23, 2026, the Government seized approximately $10.3 million in cash from the 10 brokerage accounts pursuant to seizure warrants issued by the U.S. District Court for the Southern District of New York.

Dreamland 

Dreamland is a Cayman Islands-incorporated company that purports to operate an event management business in Hong Kong.  Dreamland began trading on the Nasdaq stock exchange under the symbol TDIC on July 23, 2025. 

Between May 13-14, 2026, the share price of TDIC surged more than ten-fold, apparently driven at least in part by social media campaigns promoting TDIC as a “short squeeze” play.  Between January 2, 2026, and May 12, 2026, TDIC’s closing price ranged between $0.57 and $2.36 per share, with an average daily trading volume of approximately 2,600,000 shares.  On May 13, 2026, TDIC’s stock price suddenly soared to an intra-day high of $30.00 per share, before closing at $23.05 per share, with approximately 109,000,000 shares trading.  The following day, May 14, 2026, TDIC’s share price opened at $21.49 and declined to a closing share price of $0.80. By June 12, 2026, TDIC’s price closed at $0.23 per share.

On or about May 14, 2026, during the sudden surge in TDIC’s share price, a U.S. brokerage firm notified the Financial Industry Regulatory Authority (“FINRA”) of unauthorized trades as a result of compromised login credentials, resulting in potential stock manipulation of TDIC.  The credentials, which belonged to a third-party financial advisor that used the brokerage’s trading platform, were used to attempt to access eight client accounts and successfully accessed three client accounts, which attempted to purchase a combined total of approximately 1,361,488 shares of TDIC for a total of approximately $22,882,550.70 (an average share price of $16.81).  All of the purchases appear to have been cancelled by the brokerage. 

Around the same time as the social media promotion of TDIC and the compromised account activity, a brokerage account held in the name of Imperial Vision Fund SPC – Series 1 SP (“Imperial Vision”) sold approximately 1,486,841 shares of TDIC for total proceeds of approximately $17,692,745.89.  Imperial Vision purports to be a Hong Kong-based investment fund incorporated in the Cayman Islands, and it previously purchased TDIC shares directly from Dreamland.

On June 15, 2026, the Government seized approximately $8.4 million in cash and approximately $850,000 worth of securities from the Imperial Vision brokerage account pursuant to a seizure warrant issued by the U.S. District Court for the Southern District of New York.

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Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also expressed appreciation for the assistance of FINRA and the Securities and Exchange Commission’s Cross-Border Task Force.

The two cases are being handled by the Office’s Securities and Commodities Fraud Task Force.  Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the CTRL Group action. Assistant U.S. Attorney Alexander Li is in charge of the Dreamland action.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.  These allegations are not proven until a court awards a judgment in favor of the United States.

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

Attorney for the United States, Sean S. Buckley, Acting under Authority Conferred by 28 U.S.C. § 515, announced that MILES GUO, a/k/a “Ho Wan Kwok,” a/k/a “Guo Wengui,” a/k/a “Brother Seven,” a/k/a “The Principal,” a/k/a “Boss,” was sentenced yesterday by U.S. District Judge Analisa Torres to 30 years in prison for racketeering conspiracy, conspiracy to commit wire fraud, securities fraud, and money laundering, among other charges, for leading an expansive and complex scheme to solicit more than $1 billion of investments in various entities and programs through false statements and misrepresentations to thousands of GUO’s online followers.  On July 16, 2024, GUO was convicted following a seven-week jury trial.

“Miles Guo led a massive scheme to steal more than $1 billion through lies and deception from thousands of Americans and victims around the world,” said Attorney for the United States Sean S. Buckley.  “After immigrating to this country, rather than being satisfied with the many legitimate opportunities afforded to him, Guo exploited the trust that thousands had placed in him for his own greed.  This sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimize families to enrich themselves will be met with significant consequences.”

According to the charging documents, public court filings, statements made in court, and evidence admitted at GUO’s trial: 

GUO’s schemes began when he announced the founding in 2018 of purported charitable organizations—the Rule of Law Foundation and Rule of Law Society—by falsely promising potential donors that he was contributing the first $100 million to their cause. Trading on the Rule of Law groups’ purported charitable works, GUO launched an unregistered offering of stock in his media venture, GTV. 

When the GTV stock offering came under scrutiny by the U.S. Securities and Exchange Commission, GUO and his co-conspirators turned to other schemes.  GUO obtained another $100 million through a program in which victims were told they could lend money to networks of GUO’s supporters and receive GTV stock in addition to interest payments.  At around the same time, GUO raised at least approximately $240 million by selling memberships in G|CLUBS, a purported membership club that promised GTV stock in exchange for members’ dues and offered little to no other material benefits.  In a 2021 broadcast on GTV, GUO launched the Himalaya Exchange, a purported cryptocurrency ecosystem where people could trade “H Coin” and “H Dollar,” which were phony digital assets that were fraudulently described as blockchain-native cryptocurrencies but were in fact little more than made-up figures on an internal company spreadsheet. 

GUO perpetuated these interrelated fraud schemes over approximately five years by installing figurehead executives at companies that GUO actually controlled, promising investors that he would personally guarantee their funds against loss, and broadcasting serial lies about everything from the benefits available to G|CLUBS members to the made-up gold reserve that he claimed stood behind the value of his phony digital assets.  Along the way, GUO and his family spent victims’ stolen funds on a $26.5 million mansion in New Jersey, an $832,000 Lamborghini, two multimillion-dollar sports cars for GUO’s son, and a $2 million yacht, among many other extravagant purchases. Between 2022 and 2023, the United States seized more than $630 million of GUO’s criminal proceeds in addition to luxurious items such as sports cars, a mansion, and expensive furniture, some of which are pictured below:

If you believe you are a victim of GUO’s fraud, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je. 

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In addition to the prison term, GUO, 55, originally from the People’s Republic of China, was ordered to pay a $900 special assessment.  GUO was ordered to forfeit $889 million in proceeds from his illegal schemes, as well as his interest in specific property including a $26.5 million mansion in New Jersey, a Lamborghini, a Rolls Royce Phantom, and a Bugatti sports car. 

Mr. Buckley praised the investigative work of the Federal Bureau of Investigation.  Mr. Buckley further thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action against GUO.

The case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division.  Assistant U.S. Attorneys Micah F. Fergenson, Ryan B. Finkel, Justin Horton, and Juliana N. Murray are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that Tameka Babulal, a/k/a “Tameka Williams,” a/k/a “Sharniece Williams,” a/k/a “Meek Williams,” a former United States Postal Service (“USPS”) mail carrier assigned to Mount Vernon, New York, was sentenced to 39 months in prison by U.S. District Judge Cathy Seibel for abusing her position as a mail carrier to steal checks, credit cards, financial mail, and personal identifying information from victims on her mail route, and using that stolen mail and information to commit fraud and aggravated identity theft.  The sentence imposed by Judge Seibel included 15 months on BABULAL’s mail theft, fraud, and false statement offenses, followed by a mandatory consecutive 24-month sentence for aggravated identity theft.

“Postal workers are entrusted with some of the most sensitive materials Americans send and receive: checks, credit cards, tax documents, Social Security information, and financial mail,” said U.S. Attorney Jay Clayton.  “Tameka Babulal betrayed that trust by stealing from the very people on the mail routes she was paid to serve and then using their mail and identities to commit fraud.  Today’s sentence makes clear that those who corrupt the mail system from within and exploit the public’s trust for personal gain will be held accountable.”

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

From in or about December 2022 through May 23, 2024, BABULAL conspired with others in a scheme to possess, steal, and misuse mail stolen from the USPS in Mount Vernon, New York.  BABULAL stole hundreds of mail items from hundreds of victims whose mail she touched, including checks, credit cards, financial mail, tax documents, Social Security cards, and other sensitive materials.  She kept those items at the Hempstead, New York, residence she shared with her husband and co-conspirator, Joel Babulal.  BABULAL’s victims included elderly people in their 90s, young adults in their early 20s, business owners, churchgoers, military personnel, and other everyday people.

When law enforcement executed a search warrant at the Babulal residence on May 23, 2024, officers recovered, among other things, dozens of checks, treasury checks, and money orders in victims’ names, including blank or washed checks; 51 credit cards in other people’s names; unopened financial mail appearing to contain credit cards or checks; several Social Security cards and tax documents in other people’s names; bundles of unopened mail and packages; and a USPS postal bin filled with victims’ undelivered mail.

Using the mail and other items she stole from victims on her mail route, BABULAL carried out an extensive credit card, check, and identity theft fraud scheme involving dozens of victims.  BABULAL’s credit card scheme involved at least around $40,922.41 in fraudulent transactions using stolen credit cards.  Additionally, BABULAL’s check fraud scheme involved $13,510 in fraudulent transactions using stolen checks, and her possession of an additional at least $78,705.05 in checks and money orders.  To commit her crimes, BABULAL used various means of identification of her victims.  For example, BABULAL and her co-conspirators used their victims’ names, dates of birth, Social Security numbers, addresses, and other identifying information to fraudulently open accounts, submit credit-card applications, activate payment cards, and attempt transactions.

The Government’s investigation also revealed that BABULAL made false statements to obtain her USPS position.  In her USPS employment application, she falsely claimed that she had previously worked at a Taco Bell restaurant under a supervisor named “Mark Khan.”  In fact, “Mark Khan” was not a real person, and both the name “Mark Khan” and the phone number she listed for him were used by BABULAL’s husband and co-conspirator, Joel Babulal.

On March 18, 2026, BABULAL pled guilty before Judge Seibel to conspiracy to steal and unlawfully possess mail, theft of mail by a postal employee, unlawful possession of mail, conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, aggravated identity theft, and false statements.  BABULAL’s husband, Joel Babulal, pled guilty to conspiring with his wife and is scheduled to be sentenced on September 14, 2026.

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In addition to the prison term, BABULAL, 38, of Hempstead, New York, was sentenced to three years of supervised release and ordered to pay restitution and forfeiture.

Mr. Clayton praised the outstanding investigative work of the USPS, Office of Inspector General, and the United States Postal Inspection Service.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Reyhan Watson, John Sarlitto, and James McMahon are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging eight defendants—VAGAN GULIAN, ZHIRAYR GUMRUYAN, SEVAK KOCHARIAN, ARAIK SETRAKIAN, VITALY KOSHELAN, ARKADIY PASTIN, JASHANPREET SINGH, and EDGAR BEZHANIAN—with conspiracy to transport and possess stolen property in connection with an international, organized scheme to steal cargo from commercial shippers.  

GULIAN, GUMRUYAN, and SETRAKIAN were arrested in California and will be presented in the Central District of California; KOSHELAN was arrested in Florida and will be presented in the Southern District of Florida; SINGH was arrested in Pennsylvania and will be presented in the Eastern District of Pennsylvania; PASTIN was arrested in New York and will be presented before U.S. Magistrate Judge Stewart D. Aaron; and KOCHARIAN is in custody in connection with a pending case and will be presented in the Southern District of New York.  BEZHANIAN is at large.  The case has been assigned to U.S. District Judge Andrew L. Carter.

“As alleged, the defendants were members of a sophisticated, international enterprise whose members stole millions of dollars’ worth of merchandise and sold those stolen goods on the black market,” said U.S. Attorney Jay Clayton.  “Organized cargo theft is an attack on the integrity of our nation’s commercial supply chain and our markets more generally.  Those who conspire to disrupt commerce and harm consumers will be met with a coordinated law enforcement response.  Our Office is committed to ridding our supply chains of organized crime, and we will pursue those who exploit global commerce for illicit gain.”

“These eight defendants allegedly were members of an international network to steal merchandise and resell these stolen goods at the direct expense of sellers, shippers, and buyers,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Eurasian Organized Crime Task Force works to dismantle illegal operations designed to generate illicit profits both domestically and internationally.” 

As alleged in the Indictment and documents submitted to Court: 

Between in or around March 2023 and the present, the defendants, together with others known and unknown, carried out a large-scale, organized scheme to steal cargo from commercial shippers (the “Cargo Theft Enterprise”). In total, the Cargo Theft Enterprise stole goods worth at least approximately $10 million.  The Cargo Theft Enterprise operated throughout the United States and targeted high-value merchandise including electronics, liquor, meat, fish, eggs, clothing, skincare products, and cryptocurrency mining machines, among numerous other items.  The defendants and other members of the Cargo Theft Enterprise perpetrated their scheme by diverting, possessing, transporting, and selling numerous loads of stolen merchandise.  The Cargo Theft Enterprise relied on the coordinated efforts of at least one “dispatcher” located abroad and facilitators, drivers, and workers located in the United States.

In a typical theft, at least one member of the Cargo Theft Enterprise fraudulently impersonated a legitimate shipping carrier, or other shipping supply chain personnel and companies, to obtain a contract to transport goods from a shipping company to a customer.  Other members of the Cargo Theft Enterprise then picked up the load or otherwise diverted the truck containing the load away from its intended destination, including by altering the delivery address and other information on shipping paperwork, and by removing geolocation tracking devices affixed to shipped cargo to track its location and ensure it reaches its proper destination.  Once the truck reached the Cargo Theft Enterprise’s intended destination, members of the scheme offloaded and sold the stolen merchandise—including to co-conspirators known as “fences,” who knowingly purchased and resold stolen merchandise on the secondary market—for an illicit profit. 

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VAGAN GULIAN, 37, of Glendale, California; ZHIRAYR GUMRUYAN, 36, of Northridge, California; SEVAK KOCHARIAN, 37, of Brooklyn, New York; ARAIK SETRAKIAN, 36, of Los Angeles, California; VITALY KOSHELAN, 56, of Dania Beach, Florida; ARKADIY PASTIN, of Brooklyn, New York; JASHANPREET SINGH, 29, of Oaklyn, New Jersey; and EDGAR BEZHANIAN, 46, of Yerevan, Armenia, are each charged with one count of conspiracy to transport and possess stolen merchandise, which carries a maximum sentence of five years in prison.  

KOCHARIAN is separately charged with one count of conspiracy to commit extortion, which carries a maximum sentence of twenty years in prison.  That case is pending before U.S. District Judge Naomi Reice Buchwald.

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

Mr. Clayton praised the outstanding investigative work of the FBI’s Eurasian Organized Crime Task Force. Mr. Clayton also thanked the New York City Police Department, the New Jersey State Police, the Port Authority Police Department, the Manhattan District Attorney’s Office, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that KWANE REYNOLDS was convicted of possessing ammunition after a felony conviction.  REYNOLDS was found guilty following a three-day trial before U.S. District Judge Jeannette A. Vargas. 

“Kwane Reynolds, who had previously been convicted of a felony, shot a victim in the stomach at point-blank range on a busy public street in the Bronx,” said U.S. Attorney Jay Clayton.  “This Office is committed to prosecuting to the maximum extent of the law gun violence committed by violent felons.”

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

 On December 30, 2024, on a public sidewalk in the Bronx in broad daylight, the defendant fired two shots at another individual (the “Victim”).  The shooting was captured on surveillance video, which showed that, following a verbal dispute between the defendant and the Victim, REYNOLDS drew a firearm and shot the Victim in the stomach at close range. REYNOLDS then fled the scene on a bicycle.  REYNOLDS has previously been convicted of a felony. 

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REYNOLDS, 58, of Yonkers, New York, was convicted of knowingly possessing ammunition after having been convicted of a felony, which carries a maximum penalty of 15 years in prison.  A sentencing date has not yet been scheduled. 

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

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Cameron Molis, Joe Zabel, and Jacob R. Fiddelman are in charge of the prosecution, with assistance from Paralegal Specialist Frank Mastroianni. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that LE VAN HUNG, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” pled guilty to participating in a conspiracy to commit identity theft based on his role in a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, a multinational media company headquartered in New York, New York (the “Media Company”).  HUNG pled guilty today before U.S. Magistrate Judge Stewart D. Aaron and is scheduled to be sentenced by U.S. District Judge Victor Marrero on September 29, 2026. 

“For nearly four years, Le Van Hung oversaw an operation that stole the identities of thousands of Americans for use in a sprawling money laundering conspiracy,” said U.S. Attorney Jay Clayton.  “Today’s guilty plea, together with Hung’s agreement to forfeit $67,000,000 and make restitution to victims of this scheme, demonstrate the commitment of this Office to hold perpetrators of financial crimes accountable and to stand up for victims.”

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

From at least in or about 2020, through in or about May 2024, HUNG, while working for the Vietnamese office of the Media Company, conspired with others to participate in a sprawling, transnational scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Media Company and related entities.  In order to further the money laundering scheme, HUNG exploited stolen personally identifiable information and documents of thousands of U.S. residents in order to, among other things, open and maintain financial accounts that were used to launder fraud proceeds.  HUNG also recruited and managed various co-conspirators, including co-conspirators who worked with the Media Company’s “Make Money Online” team. 

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HUNG, 31, of Vietnam, pled guilty to one count of conspiring to commit identity theft, which carries a maximum sentence of five years in prison.  HUNG also agreed to forfeit at least $67 million, representing proceeds traceable to the offense, and separately to pay restitution up to $67 million.

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

Mr. Clayton praised the outstanding investigative work of the Department of Labor’s Office of Inspector General, the Department of State’s Diplomatic Security Service, and 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 Public Corruption Unit. Assistant U.S. Attorneys Benjamin M. Burkett, Rebecca T. Dell, Paul M. Monteleoni, Daniel C. Richenthal, and Amanda C. Weingarten are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Administrator of the Food Safety and Inspection Service of the U.S. Department of Agriculture (“USDA-FSIS”)’s Office of Investigation, Enforcement and Audit, William Griffin, announced today that U.S. District Judge Edgardo Ramos has imposed civil penalties on defendants FIRST GOLD COAST CORPORATION d/b/a GOLD COAST TRADING COMPANY (“First Gold”), KWABENA ASAMOAH ADJEI, CHRISTOPHER AHENKORA, and MICHAEL AHENKORA for violating a previously entered judicial consent decree requiring the defendants to comply with food safety laws at their meat and poultry business.  The order imposes a $120,500 civil penalty on the defendants for continuing to sell uninspected and misbranded poultry products and for failing to complete mandatory food safety training.

“This Office has no tolerance for parties who continue in their unlawful ways after they commit to come into compliance,” said U.S. Attorney Jay Clayton.  “This conduct is all the worse where, as here, it endangers the safety of the food that families put on their tables.  The imposed financial penalty should serve as notice to all parties that they must live up to their legal commitments and comply with the law.”

“As the USDA agency responsible for ensuring that America’s meat, poultry, and egg products remain the safest in the world, FSIS is committed to taking swift action to protect consumers and carry out our public health mission,” said FSIS Assistant Administrator for the Office of Investigation, Enforcement and Audit William Griffin.  “The work of our inspection personnel and investigators to enforce Federal regulations, along with our partnerships with state and local governments, will continue to ensure the safety of our food supply.”

The Federal Meat Inspection Act (“FMIA”) and Poultry Products Inspection Act (“PPIA”) protect public health by ensuring the nation’s commercial supply of meat and poultry is safe, wholesome, and accurately labeled and packaged.  These requirements allow consumers to have confidence in the safety of their meat and poultry products and permit public health officials to trace problems to their source.

This Office first sued First Gold and its then-owner, Daniel Ahenkora, in October 2015, alleging that they had violated the FMIA and the PPIA by selling uninspected and misbranded meat and poultry products.  The Court promptly entered a consent decree enjoining First Gold, Daniel Ahenkora, and affiliated parties from further violations. In December 2024, First Gold and three of Daniel Ahenkora’s sons—KWABENA ASAMOAH ADJEI, CHRISTOPHER AHENKORA, and MICHAEL AHENKORA, who had taken over the business around May 2023—signed an amended consent decree, which was approved by the Court on December 3, 2024.  Among other things, the amended consent decree prohibited the defendants from selling, offering for sale, or receiving in commerce any uninspected or misbranded meat or poultry and required them to complete mandatory training on the FMIA and PPIA. 

The defendants, however, proceeded to violate the amended consent decree.  Specifically, on or about June 26, 2025, First Gold sold approximately 120 pounds of uninspected, misbranded poultry products—namely, 30 pounds of smoked turkey drums, 30 pounds of smoked turkey wings, 30 pounds of fresh turkey wings, and 30 pounds of fresh turkey drums—to a New Jersey retailer.  First Gold used a bandsaw in the store to slice the turkey products without the benefit of federal inspection and then misbranded the products by repackaging them into the original manufacturer boxes that bore the marks of federal inspection, in violation of the amended consent decree.  The defendants also failed to complete the training required by the amended consent decree.

The Court’s June 26, 2026, order requires the defendants to pay a total civil penalty of $120,500—comprising $60,000 for the sale of 120 pounds of misbranded, uninspected turkey products and $60,500 for the defendants’ failure to complete the amended consent decree’s training requirements.  The order also requires the defendants to present a plan for coming into compliance with the amended consent decree's training requirements.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that CARL ERIK RINSCH, a Los Angeles-based director and writer, was sentenced today by U.S. District Judge Jed S. Rakoff to 30 months in prison for fraudulently stealing $11 million from a subscription video-on-demand streaming service (“Streaming Company-1”) in connection with a planned science-fiction television show called “White Horse,” and then laundering that money.  RINSCH was convicted following a week-long trial in December 2025 before Judge Rakoff.

“Carl Erik Rinsch orchestrated a scheme to steal millions by seeking $11 million from a subscription streaming service, falsely claiming that money would be used to finance a television show that he was creating,” said U.S. Attorney Jay Clayton.  “Instead of using the money to make the show, Rinsch made risky bets on highly speculative stock options and cryptocurrency, and spent millions of dollars on luxury goods for himself.  Today’s sentence sends a deterrent message: fraud will not be tolerated.”

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

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

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

But RINSCH did not use those funds to make the show.  Instead, within days, RINSCH began transferring the funds through numerous bank accounts before consolidating them in a personal brokerage account.  RINSCH then used those funds to speculate on stock options.  His trading was unsuccessful, and in less than two months after receiving $11 million from Streaming Company-1, RINSCH had lost more than half of that money.

Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse.  Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including at least $1.7 million on credit card bills; at least $3.3 million on furniture, antiques, and mattresses; at least $387,000 on a Swiss watch; and at least $2.4 million on five Rolls Royces and a red Ferrari.

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In addition to the prison term, RINSCH, 48, of Los Angeles, California, was sentenced to three years of supervised release, $11 million in forfeiture, and $700 in mandatory special assessments. 

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

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Timothy V. Capozzi, Jackie Delligatti, David A. Markewitz, Kevin Mead, and Adam Sowlati are in charge of the prosecution, with the assistance of Paralegal Specialists Maria Larracuente and William Coleman.

United States Attorney for the Southern District of New York, Jay Clayton, announced that THOMAS DOYLE, a/k/a “AJ” or “Austin Doyle,” pled guilty to wire fraud in connection with a scheme by DOYLE to defraud the owner of the painting “Mother and Child on a Hammock” by the 19th-century French Realist painter Gustave Courbet.  DOYLE was previously convicted in the Southern District of New York in 2011 of a separate art-related fraud.  DOYLE pled guilty today before U.S. District Judge Arun Subramanian and is scheduled to be sentenced on November 9, 2026. 

“Thomas Doyle defrauded the owner of a valuable painting by telling a series of brazen lies to get the painting and then sell it so he could keep the profits for himself,” said U.S. Attorney Jay Clayton.  “Today’s guilty plea reflects the commitment of this Office and its law enforcement partners to hold all fraudsters accountable, including bad actors seeking to conduct fraud schemes in the U.S. art market.” 

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

Between December 2022 and March 2025, DOYLE defrauded an art dealer (“Victim-1”) in connection with the sale of the painting “Mother and Child on a Hammock” (the “Hammock”) by Gustave Courbet.  In June 2024, Victim-1 agreed to let DOYLE take custody of the Hammock to facilitate its viewing by a potential buyer.  Soon after, DOYLE told Victim-1 that he had a potential buyer for the Hammock, and Victim-1 authorized DOYLE to sell the painting on his behalf for $550,000.  By early August 2024, DOYLE falsely informed Victim-1 that he had sold the Hammock for that price. 

Instead, DOYLE’s associate (“Associate-1”), acting on DOYLE’s behalf, offered the Hammock for consignment to a Manhattan gallery (“Gallery-1”).  DOYLE provided Associate-1 with a false provenance for the Hammock that was passed on to Gallery-1.  Gallery-1 sold the Hammock on October 1, 2024, for $125,000 to an art collector, and most of the proceeds from the sale went to DOYLE.  

DOYLE never remitted to Victim-1 any proceeds from the sale of the Hammock.  Instead, by February 2025, DOYLE had spent all the proceeds from the sale of the Hammock on personal expenses and his own debts.  DOYLE subsequently falsely blamed his failure to pay Victim-1 on the purported buyer, fraudulently claiming the buyer had yet to pay when in fact DOYLE had been paid and was spending the proceeds of the Hammock sale. 

*                *                *

DOYLE, 68, of Connecticut, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.  DOYLE also agreed to forfeit all proceeds from the offense and pay $125,000 in restitution to the victim.  

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging JERMAINE BROWN with drug-trafficking crimes that led to two fatal overdoses.  BROWN was presented today before U.S. Magistrate Judge Ona T. Wang and ordered detained.  The case has been assigned to U.S. District Judge Katherine Polk Failla.

“As alleged, for years, Jermaine Brown dealt dangerous drugs, including heroin laced with fentanyl, to New Yorkers,” said U.S. Attorney Jay Clayton.  “Today’s unsealed indictment against Brown reiterates our Office’s clear message: if you deal in fentanyl, you deal in death, and our office will hold you accountable.”

“As alleged, Jermaine Brown callously pumped heroin laced with fentanyl into our communities, and in turn contributed to the horrific overdose deaths of two victims,” said HSI Acting Special Agent in Charge Pete Gizas.  “His arrest removes an accused ruthless drug trafficker from our streets and provides a measure of long-overdue relief to the victims’ families and the neighborhoods he preyed upon.  Every day, HSI New York is relentlessly committed to working with the U.S. Attorney’s Office, the NYPD, and our invaluable law enforcement partners to investigate these heinous crimes and protect our communities from the lethal threat of fentanyl and other narcotics.”

“As alleged, this defendant distributed lethal drugs, including fentanyl-laced heroin, which ultimately led to the overdose deaths of two victims,” said NYPD Commissioner Jessica S. Tisch.  “We will not allow drug peddlers to flood our communities with dangerous poisons and put lives at risk without facing consequences.  Thanks to the efforts of our NYPD investigators, alongside the U.S. Attorney’s Office for the Southern District of New York, we are holding this criminal accountable.” 

As alleged in the Indictment and documents submitted to the Court: 

From at least in or around 2022 through at least in or around December 2025, BROWN, a Manhattan-based dealer, sold a variety of controlled substances, including heroin, to numerous customers.  BROWN provided drugs to some customers over extended periods of time.  Some of BROWN’s customers, however, were unaware that heroin sold by BROWN also at times contained fentanyl.  Multiple victims who bought fentanyl-laced heroin from BROWN were poisoned by BROWN’s fentanyl and died.  Specifically, BROWN’s drugs caused a least two overdose deaths: (i) the death of a 33-year-old man on or about March 19, 2024, in New York, New York and (ii) the death of a 35-year-old woman on or about December 10, 2025, in Frankin Square, New York.

BROWN relied on multiple coconspirators to facilitate his drug trafficking.  Multiple individuals sourced narcotics for BROWN, including in response to explicit requests from BROWN for fentanyl.  BROWN also relied on multiple individuals to assist in the distribution of narcotics by delivering or reselling BROWN’s narcotics, including fentanyl, to others. 

On June 25, 2026, law enforcement searched Brown’s room in a Manhattan hotel pursuant to a judicially authorized warrant.  The search revealed a multitude of narcotics in pill and powder form, along with a duffel bag full of cash.  Photographs of some of the seized items are shown below:

*                *                *

BROWN, 55, of New York, New York, is charged with one count of conspiracy to distribute narcotics resulting in death and two counts of distribution of narcotics resulting in death, all of which carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. 

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

Mr. Clayton praised the outstanding investigative work of HSI and the NYPD.  Mr. Clayton also thanked the Nassau County Police Department. 

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Getzel Berger and Lauren Phillips 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.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), Naomi Gruchacz, announced that the United States has settled a civil healthcare fraud lawsuit against DR. ROBERT SIMON, a New Jersey-based urologist, and DR. NICOLE FLEISCHMANN, a New York-based urologist.  The settlement resolves claims that SIMON and FLEISCHMANN violated the False Claims Act by repeatedly subjecting their patients to medically unnecessary surgical procedures in connection with an implantable neurostimulation medical device and then improperly obtaining payments from Medicare for these same unnecessary procedures.

Under the settlement, which was approved yesterday by U.S. District Judge Paul G. Gardephe, SIMON will pay a total sum of $1,112,695.88 plus interest, and FLEISCHMANN will pay a total sum of $1,101,044.80 plus interest.  As a part of the settlement, SIMON and FLEISCHMANN also made extensive factual admissions regarding their conduct.  Among other things, SIMON and FLEISCHMANN admitted that they each caused Medicare to pay claims for implantations of a neurostimulation medical device that were not medically reasonable and necessary and did not comply with Medicare’s billing rules and guidance.

“Dr. Simon and Dr. Fleischmann performed unnecessary surgical procedures on their patients who suffered from urinary incontinence and then billed a taxpayer-funded program for these procedures,” said U.S. Attorney Jay Clayton.  “This illegal scheme violated the trust at the heart of doctor-patient relationships and our healthcare system.  This Office is committed to holding medical providers accountable, protecting patient care, and safeguarding the integrity of taxpayer-funded programs.”

“Health care providers who perform medically unnecessary services can pose a significant risk to patients, especially when pre-operative tests are not completed appropriately and follow-up procedures are performed without sufficient justification,” said HHS-OIG Special Agent in Charge Naomi Gruchacz.  “HHS-OIG continuously works with key law enforcement partners to seek resolutions that hold accountable individuals who exploit federal health care programs.”

As alleged in the Complaint: 

The InterStim device is designed to treat urinary incontinence by sending electrical stimulation to a patient’s sacral nerve.  InterStim’s implantable components include a neurostimulator, a battery, and a thin wire—known as a lead—that connects to the sacral nerve, as well as other components that facilitate transmission of electrical impulses to the sacral nerve.  Relevant Medicare rules require that before a doctor may permanently implant an InterStim device, the patient must have had a successful test stimulation that met specific defined criteria.  The test stimulation is designed to determine whether the InterStim device is likely to be successful in improving the patient’s urinary incontinence.

From January 1, 2011, through December 31, 2022, FLEISCHMANN violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare for medically unreasonable and unnecessary InterStim surgical procedures by failing to perform the required preoperative testing before implanting the InterStim device into patients and unnecessarily implanting two InterStim devices into a patient during the same surgical procedure. 

Similarly, from January 1, 2011, through October 18, 2021 (the “Simon Covered Period”), SIMON violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare for medically unreasonable and unnecessary InterStim surgical procedures by: failing to perform the required preoperative testing before implanting the InterStim device into a patient; unnecessarily implanting two InterStim devices into a patient during the same surgical procedure; performing medically unreasonable and unnecessary battery and InterStim device replacement and revision surgeries; and improperly billing Medicare twice for removing the lead used to stimulate a patient’s sacral nerve during preoperative testing. 

SIMON frequently performed unnecessary procedures on patients to replace the InterStim batteries after the InterStim device had been implanted into his patients, despite the fact that there was often no indication that these batteries needed to be replaced.

SIMON and FLEISCHMANN also frequently implanted two InterStim devices into a patient during the same surgical procedure, in a procedure known as bilateral implantation.  They did this without conducting the required preoperative test to determine that one InterStim device would effectively treat the patient’s urinary incontinence, much less that two InterStim devices would be more effective than one. 

As part of the settlement, SIMON and FLEISCHMANN admitted and accepted responsibility for certain of their own respective conduct alleged by the United States, including the following:

• SIMON and FLEISCHMANN were aware that the Centers for Medicare and Medicaid Services (“CMS”) had issued a National Coverage Determination (“NCD”)—which is a binding statement by CMS setting a national policy granting, limiting, or excluding Medicare coverage for a specific medical item or service—concerning the implantation of sacral nerve stimulators, such as InterStim, to treat urinary incontinence.
• Specifically, SIMON and FLEISCHMANN were aware that in 2002 CMS issued NCD 230.18, which stated that in order to establish that a permanent InterStim implantation is medical necessary, a patient must first undergo a successful test stimulation during which the patient demonstrates a 50% or greater improvement.  This improvement is measured through voiding diaries, which are used by the patient to record their symptoms of urinary incontinence.
• SIMON and FLEISCHMANN primarily performed a percutaneous nerve evaluation test (“PNE”) before permanently implanting the InterStim device into patients.  The PNE is supposed to take place over at least three, and up to seven, days.  SIMON and FLEISCHMANN repeatedly billed Medicare for permanent InterStim implantations despite failing to first complete a successful PNE.  Instead of completing a full PNE, SIMON and FLEISCHMANN frequently conducted an abbreviated test.  Further, SIMON and FLEISCHMANN also failed to collect and keep the voiding diaries required by NCD 230.18.
• SIMON also admitted and accepted responsibility for additional conduct alleged by the United States, including the following:
• During the Simon Covered Period, SIMON rarely concluded that a PNE did not support a permanent implantation—doing so for approximately 3% of his patients who received a PNE.  In these instances, SIMON contemporaneously recorded in his office notes that the PNE did not support a permanent InterStim implantation.  Nevertheless, in each of these cases, SIMON still performed a permanent implantation of the InterStim device and falsely documented in his surgical notes that the PNE had been successful.
• During the Simon Covered Period, SIMON frequently performed medically unreasonable and unnecessary InterStim device revision and replacement surgeries on his patients and then billed Medicare for these procedures.  Specifically, SIMON often surgically removed and replaced InterStim batteries within three years or less of the implantation, despite the fact that InterStim batteries were supposed to last for approximately five years. 
• SIMON also frequently replaced InterStim neurostimulators and added a second InterStim device for patients who started with one InterStim device, without any objective evidence that the neurostimulator needed to be replaced or that the patient would benefit from the implantation of a second InterStim device. 

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

*                *                *

Mr. Clayton praised the outstanding investigative work of HHS-OIG. 

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that LEWIS LI was sentenced today to six years in prison by U.S. District Judge Philip M. Halpern for his role in the forceful abduction and extortion of a man in Peekskill, New York. 

"Today’s sentence reflects the seriousness of this crime and the fear and trauma that Li inflicted on the victim,” said U.S. Attorney Jay Clayton.  “Abducting a man in broad daylight, beating him up, and threatening him and his family is a grave offense that ravages the sense of safety that every community deserves.  Our Office remains committed to protecting the public and ensuring that those who endanger our communities face justice.”

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

On January 28, 2025, LI and his co-conspirators forcefully abducted and threatened their business partner (“Victim-1”) in an effort to obtain almost $1 million from Victim-1.  LI and his co-conspirators planned and prepared for the abduction for at least five days beforehand, taking steps that included purchasing and placing a GPS tracker on the underside of Victim-1’s car, surveilling Victim-1’s home, and digging through Victim-1’s trash.  At approximately 11:30 a.m. on January 28, 2025, LI and three co-conspirators followed and abducted Victim-1 outside of a grocery store on Park Street in Peekskill, New York, forcing Victim-1 into the backseat of a vehicle driven by one of the co-conspirators (“CC-1”) in broad daylight.  LI and his co-conspirators restrainedVictim-1 in the Jeep for approximately one hour and 45 minutes, before dropping Victim-1 off on the street in Elmsford, New York.  During that time, LI and his co-conspirators beat and used a stun gun on Victim-1 and threatened Victim-1 to return approximately $930,000 in cash that LI believed Victim-1 had stolen.

While Victim-1 was in the vehicle, LI and his co-conspirators also threatened Victim-1, in sum and substance, that the money belonged to people involved in organized crime, that Victim-1 owed them an additional $100,000, and that the lives of Victim-1 and Victim-1’s family were in danger unless Victim-1 paid the additional sum.  LI and the others also forced Victim-1 to record a video admitting that Victim-1 had taken the money.  As a result of the abduction, force, and threats, Victim-1 arranged for the disputed cash to be picked up by two of LI’s co-conspirators at a location in Peekskill, New York.  Only after the cash had been retrieved and counted did LI and his co-conspirators release Victim-1 from the vehicle, dropping Victim-1 on the street in Elmsford, New York.

In the days following the abduction, LI and CC-1 continued to threaten to harm Victim-1 and his family in an ongoing effort to extort $100,000 from him.  LI was arrested approximately one week after the abduction, before Victim-1 made any further payments.  In the apartment where LI was arrested, officers found, among other items, a stun gun and LI’s phone, which LI had hidden in the oven.

*               *                *

In addition to the prison term, LI, 36, of Huntington Beach, California, was sentenced to three years of supervised release and ordered to forfeit $910,000.     

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation’s Westchester Safe Streets Task Force. 

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jorja Knauer and Benjamin Levander are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that JOSE MEDINA was sentenced today by U.S. District Judge Lewis A. Kaplan to 27 and a half years in prison for coercing and enticing two minors, committing a felony offense while being a registered sex offender, and possessing child pornography.  MEDINA previously pled guilty on March 11, 2026, before U.S. Magistrate Judge Gary Stein.

“Jose Medina coerced two minors, boys just seven and nine years old, to engage in sexual acts with their mother,” said U.S. Attorney Jay Clayton.  “He then created child pornography videos depicting his crimes.  Participating in this depraved act of sexual abuse was not the end.  The defendant also physically assaulted the boys, including beating and tasing them.  Today, I hope that some measure of justice has come for the victims.” 

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

In February 2024, while MEDINA was living in a truck with his then-girlfriend (“Female-1”) and Female-1’s two minor children (the “Victims”), he coerced and encouraged the Victims to engage in sexual acts with their mother, Female-1, including vaginal, oral, and anal sex.  MEDINA recorded child pornography videos depicting these crimes.  After MEDINA and Female-1 ended their relationship in September 2024, MEDINA returned home to the Bronx, New York, where he distributed the child pornography videos to at least three individuals, including a family friend who promptly reported MEDINA to child protective services.  Further investigation revealed that MEDINA had been physically, emotionally, and sexually abusing the Victims, while they were in his and Female-1’s care. 

At the time MEDINA coerced the Victims to engage in sexual acts with Female-1, he was already a registered sex offender, based on a prior conviction for raping a 14-year-old girl.   

*                *                *

In addition to the prison term, MEDINA, 57, of the Bronx, New York, was sentenced to five years of supervised release. 

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

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Remy Grosbard is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), was sentenced to three years in prison for committing securities fraud in connection with a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information.  KOMISSAROV pled guilty to one count of securities fraud on February 3, 2026, before U.S. District Judge Alvin K. Hellerstein, who imposed today’s sentence.

“Vadim Komissarov, the former CEO of Trident Acquisitions Corp., is going to prison for defrauding his shareholders,” said U.S. Attorney Jay Clayton.  “This Office will continue to work with our law enforcement partners to hold executives of public companies accountable when they commit fraud and lie about it.”

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

From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud investors in TDAC and investors in TDAC’s successor company, Lottery.com (the “Revenue Scheme”).  In short, KOMISSAROV and his confederates created the false appearance of revenue-generating business activity for AutoLotto, in advance of a vote by TDAC shareholders on a proposed merger between TDAC and AutoLotto, and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”

KOMISSAROV later schemed to obstruct the U.S. Securities and Exchange Commission (“SEC”)’s investigation.  For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme.  KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . . if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.”  KOMISSAROV also gave false and misleading sworn testimony to the SEC about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.

*                *               *

In addition to the prison term, KOMISSAROV, 54, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $607,028.70, representing the proceeds of KOMISSAROV’s sale of Lottery.com stock before the market was made aware of the fraudulent scheme.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Northeast Region Office of the U.S. Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, announced the unsealing of a Complaint charging TERRI LYNN OUTER, a former contractor with the Bureau of Prisons working at a federal prison in Orange County, New York, with bribery, providing or possessing contraband in prison, and conspiracy to provide or possess contraband in prison.  OUTER was arrested today and will be presented this afternoon before U.S. Magistrate Judge Victoria Reznik. 

“As alleged, Terri Lynn Outer accepted bribes from federal inmates, their family members, and their associates in exchange for smuggling contraband, including drugs, into a federal prison,” said U.S. Attorney Jay Clayton.  “The DOJ refuses to tolerate such corruption in our prisons.  It makes our prisons more dangerous and makes rehabilitation more difficult.”

“Outer’s alleged attempt to accept bribes and smuggle contraband jeopardized the safety and security of the institution,” said DOJ OIG Special Agent in Charge Ryan T. Geach.  “The DOJ OIG is committed to working with its law enforcement partners to bring to justice any Bureau of Prisons employee or contractor who abuses their authority and attempts to smuggle illegal contraband into federal prisons.”

As alleged in the Complaint:(1)

From January 2024 through August 2025, OUTER was employed as a contractor at FCI Otisville, working as a dental assistant.  During her time there, OUTER solicited and received payments in return for smuggling contraband and prohibited objects into the prison. OUTER received more than $163,000 from inmates’ family members and associates, and engaged in extensive communications with inmates, former inmates, and their family members and associates, including discussions with an inmate about having the contents of a package weighing over six pounds smuggled into FCI Otisville. 

On or about August 1, 2025, prison staff searched a specific supply room used by the Health Services Department at FCI Otisville, to which OUTER had access.  During that search, prison staff found contraband that included approximately 3.2 pounds of marijuana and 6.7 pounds of loose-leaf tobacco, pictured below:

Marijuana discovered at FCI Otisville

Tobacco discovered at FCI Otisville

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OUTER, 50, of Montague, New Jersey, is charged with one count of bribery, which carries a maximum sentence of 15 years in prison; one count of providing or possessing contraband in prison, which carries a maximum sentence of five years in prison; and one count of conspiracy to provide or possess contraband in prison, which also carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of DOJ OIG; the United States Postal Inspection Service, New York Domicile; the FCI Otisville Special Investigative Services; and the New Jersey State Police.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Carmi Schickler and Timothy Deal are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and OUTER 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.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the Boston-New York Field Division of the Social Security Administration, Office of Inspector General (“SSA OIG”), Amy Connelly, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Special Agent in Charge of the Diplomatic Security Service (“DSS”) New York Field Office, Brian Wood, announced today the unsealing of a Complaint charging VERONICA YARASET MOLINA with theft of government funds, healthcare fraud, passport fraud, and aggravated identity theft.  YARASET MOLINA was arrested this morning and presented earlier today before U.S. Magistrate Judge Ona T. Wang.

“For nearly two decades, Veronica Yaraset Molina allegedly stole the identity of an American citizen and used it to loot federal benefit programs of nearly $800,000 in taxpayer funds,” said U.S. Attorney Jay Clayton.  “This Office will pursue those who defraud federal benefit programs.”

“Veronica Yaraset Molina allegedly used a stolen identity to orchestrate a nearly 20-year fraud scheme to siphon off hundreds of thousands of dollars in benefits meant for vulnerable Americans,” said HSI Special Agent in Charge Pete Gizas.  “This kind of calculated fraud is not a victimless crime; it drains taxpayer resources, corrupts vital safety net programs, and inflicts lasting damage on innocent victims who are denied the assistance they need when disaster strikes.  HSI New York, as a leading member of the Homeland Security Task Force New York, is fully committed to relentlessly pursuing fraudsters who exploit our systems and our communities, and we will continue to work side-by-side with the U.S. Attorney’s Office and our law enforcement partners to identify, dismantle, and bring to justice anyone who engages in this kind of predatory conduct.”

“The Diplomatic Security Service mandate extends beyond protecting State Department people, property and information—it includes safeguarding the integrity of U.S. travel documents,” said DSS New York Field Office Special Agent in Charge Brian Wood.  “Molina's alleged use of a fraudulently obtained U.S. passport to repeatedly enter this country is exactly the kind of threat DSS is uniquely positioned to investigate, and we are proud to have worked alongside our law enforcement partners to bring this case to light.”

“The defendant, a Dominican national, is accused of using a stolen identity to fraudulently obtain approximately $120,000 in Social Security disability benefits, unlawfully enriching herself at the expense of American taxpayers,” said SSA OIG Special Agent in Charge Amy Connelly.  “We remain steadfast in our mission to safeguard the integrity of Social Security programs and will continue to aggressively pursue those who exploit vulnerable systems through fraud, identity theft, and other criminal conduct.”

As alleged in the Complaint:

YARASET MOLINA, a Dominican national who has been unlawfully present in the United States since at least approximately 2000, and who assumed the stolen identity of a United States citizen (“Victim-1”), engaged in a nearly 20-year scheme to fraudulently obtain approximately $800,000 in federal benefits, including Social Security disability benefits, Supplemental Nutrition Assistance Program (“SNAP”) benefits, Medicare benefits, and unemployment benefits, to which she was not entitled.

As alleged, YARASET MOLINA repeatedly used Victim-1’s identity to apply for and receive the foregoing benefits across multiple federal programs.  YARASET MOLINA also used Victim-1’s identity to apply for and receive a United States passport, which she used to return to the United States from the Dominican Republic on several occasions.  Due at least in part to YARASET MOLINA’s identity theft scheme, Victim-1 was unable to receive Federal Emergency Management Agency (“FEMA”) benefits in the wake of Hurricane Maria in or about 2017.

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YARASET MOLINA, 51, of the Dominican Republic, is charged with four counts of theft of government funds, in violation of 18 U.S.C. § 641, each of which carries a maximum sentence of 10 years in prison; healthcare fraud, in violation of 18 U.S.C. § 1347, which carries a maximum sentence of 10 years in prison; passport fraud, in violation of 18 U.S.C. § 1543, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, in violation of 18 U.S.C. § 1028A, which carries a mandatory minimum sentence of two years in prison, to run consecutively to any other term of imprisonment imposed. 

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

Mr. Clayton praised the SSA-OIG, HSI, DSS, the U.S. Postal Inspection Service, the U.S. Department of Agriculture’s Office of Inspector General, the U.S. Department of Health and Human Services’ Office of Inspector General, and the U.S. Department of Labor’s Office of Inspector General for their assistance in this case.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Nicholas D. Pavlis 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.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”).  The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people.  The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANTHONY WALLACE was sentenced today by U.S. District Judge Mary Kay Vyskocil to 33 years and four months in prison for kidnapping a minor, coercing and enticing a minor, transporting a minor interstate for unlawful sexual activity, and producing and possessing child pornography.  WALLACE was convicted following a week-long jury trial in December 2025 before Judge Vyskocil.

“Anthony Wallace met a 15-year-old girl on the street and targeted her for unimaginable abuse and cruelty,” said U.S. Attorney Jay Clayton.  “Over the course of weeks, Wallace physically, sexually, and psychologically abused this minor victim, until she courageously escaped out a fire escape.  This type of abuse and exploitation is every parent’s worst nightmare.  Wallace is now where he belongs and where every New York parent wants him—off our streets.  Our office, together with the NYPD and our federal partners, has devoted substantial resources to combatting sex trafficking and sex crimes involving children and our most vulnerable.  Our victim-oriented approach has resulted in more prosecutions and more predators off the streets.  It also has shown us that we must do more, and we are most effective when we engage as early as practicable with victims and with our communities.  If you have been a victim of a sex crime or have information regarding a sex crime, please call 1-866-874-8900.”

According to the allegations contained in the Indictment, the evidence presented at trial, and other statements made in public court proceedings:

In March 2024, WALLACE met a 15-year-old girl (the “Minor Victim”) in Binghamton, New York.  Over the next four weeks, WALLACE subjected the Minor Victim to escalating physical, sexual, and psychological abuse.  At first, WALLACE kept the Minor Victim against her will in an apartment in Binghamton.  There, WALLACE assaulted the Minor Victim and forced her to disguise her appearance by dyeing her hair and wearing a mask.  WALLACE also gave the Minor Victim a steady stream of drugs, including methamphetamine and marijuana.  While in Binghamton, WALLACE created child pornography of the Minor Victim, which he kept on his cellphone.

On April 1, 2024, WALLACE transported the Minor Victim from Binghamton across state lines, ultimately bringing her to the Bronx, New York, where he kept her in a barricaded apartment.  While in the Bronx, WALLACE continued to physically assault the Minor Victim and forcibly raped her.

On April 4, 2024, the Minor Victim escaped through the window of the Bronx apartment while WALLACE was sleeping.  The Minor Victim immediately called 911 and was eventually returned home to her parents.

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In addition to the prison term, WALLACE, 33, of the Bronx, New York, was sentenced to 10 years of supervised release, along with $3,000 in restitution and $500 in mandatory special assessments. 

Mr. Clayton praised the outstanding investigative work of the FBI’s C20 task force and the NYPD.  He also thanked the Broome County Sherriff’s Office for their assistance in this investigation. 

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Ariana L. Bloom, Remy Grosbard, Joseph H. Rosenberg, and Alexandra N. Rothman are in charge of the prosecution, with the assistance of Paralegal Specialists Samantha Roberts and Benjamin Coolman.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSEPH MALVASIO, a/k/a “Joe Cohen,” and GREGG MARCUS, a/k/a “Gregg Pierce,” were convicted of wire fraud and conspiracy to commit wire fraud in connection with a years-long advance-fee scheme through which they defrauded hundreds of victims of at least approximately $18 million.  MALVASIO and MARCUS were found guilty following a two-week trial before U.S. District Judge Jesse M. Furman. 

“Joseph Malvasio and Gregg Marcus perpetrated an advance-fee scheme whose victims were defrauded into paying millions of dollars for loans the defendants never intended to make,” said U.S. Attorney Jay Clayton.  “The victims needed these loans to buy property and build businesses. But the defendants simply charged upfront fees and pocketed their victims’ money—approximately $18 million. This Office is committed to rooting out fraud and holding those responsible accountable.”

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

From at least in or about March 2017 through at least in or about August 2023, MALVASIO and MARCUS operated an advance-fee scheme that defrauded hundreds of victims of approximately $18 million.  MALVASIO and MARCUS operated this fraudulent scheme through their ownership and operation of a business called Global Capital Partners Fund LLC (“GCPF”).  MALVASIO and MARCUS falsely represented that GCPF was a legitimate business that would provide loans to individuals who were interested in funding for private commercial projects.  Instead, MALVASIO and MARCUS defrauded victims, collecting thousands of dollars in fees from each victim without intending to issue a loan. MALVASIO also committed the same scheme using two other entities, called Harbor Equity and Commercial Private Equity.  

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MALVASIO, 68, of Fort Lauderdale, Florida, and Bridgehampton, New York, and MARCUS, 60, of Bay Harbor Islands, Florida, were each convicted of one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.  MALVASIO was also convicted, separately, of a second count of wire fraud.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Sentencing is scheduled for October 8, 2026.

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Georgia V. Kostopoulos, Patrick J. Gallagher, Adabelle U. Ekechukwu, Jaclyn Delligatti, Micah F. Fergenson, and Daniel G. Nessim are in charge of the prosecution, with assistance from Paralegal Specialists Saadhana Jakka and Myrnette Millington.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that NATHAN AUSTAD, a/k/a “Snoopy,” was sentenced to 18 months in prison for his role in a scheme to hack user accounts on a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts, resulting in losses of hundreds of thousands of dollars to the users.  On December 12, 2025, AUSTAD pled guilty to one count of conspiring to commit computer intrusion before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.

"Nathan Austad and his co-defendants hacked an online betting website to compromise the accounts of over 60,000 users by purchasing their already stolen credentials on the darkweb and utilizing their previous passwords from other websites,” said U.S. Attorney Jay Clayton.  “The defendants acknowledged the federal investigation into their conduct while they were committing their crimes, even having the hubris to say the FBI could not do anything about it.  They were wrong.  Austad’s prison sentence today demonstrates the commitment of the DOJ, the FBI, and all our federal partners to protecting our on-line markets.”

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

On or about November 18, 2022, AUSTAD and others launched a “credential stuffing attack” on the Betting Website.  During a credential stuffing attack, a cyber threat actor collects stolen credentials, or username and password pairs, obtained from other large-scale data breaches of other companies, which can often be purchased on the darkweb.  The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers, in order to compromise accounts where the user has maintained the same password.  Here, in connection with the attack on the Betting Website, AUSTAD and his coconspirators made a series of attempts to log into the Betting Website user accounts using a large list of stolen credentials.

AUSTAD and his coconspirators successfully compromised approximately 60,000 user accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack.  In some instances, AUSTAD and his coconspirators were able to add a new payment method of their own on the account (i.e., to a newly added financial account belonging to the hacker) and then use it to withdraw all the existing funds in the Victim Account to themselves, thus stealing the funds in each affected Victim Account.  Using this method, AUSTAD and others stole approximately $600,000 from approximately 1,600 Victim Accounts on the Betting Website for themselves.

Access to the Victim Accounts were also sold on various websites that traffic in stolen accounts, which are frequently referred to as “Shops.”  AUSTAD directly controlled and profited from his own shop, which was named after the character Snoopy from the Peanuts comic strip.  A photo of AUSTAD’s Shop website with victim companies redacted is below:

On or about December 2, 2022, AUSTAD messaged about the existence of this investigation, “everyone shouldve been prepared for this before cashing out lol,” and a coconspirator replied, “lol fbi can’t do shit.”  On or about May 19, 2023, AUSTAD messaged about the existence of this investigation, “like we didnt know the risk when we started lol . . . everyone knows their committing fraud.”

AUSTAD also controlled cryptocurrency accounts that received cryptocurrency worth approximately $465,000, including proceeds of his crimes.

AUSTAD is the third defendant to be sentenced in this investigation.  On January 31, 2024, U.S. District Judge Lewis A. Kaplan sentenced Joseph Garrison to 18 months in prison.  On April 16, 2026, U.S. District Judge Naomi Reice Buchwald sentenced Kamerin Stokes, a/k/a “TheMFNPlug,” to 30 months in prison.

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In addition to the prison term, AUSTAD, 21, of Farmington, Minnesota, was sentenced to three years of supervised release and ordered to pay $463,684.48 in forfeiture and $1,327,061 in restitution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that HIRAM CARRERO was sentenced to 66 months in prison for setting fire to a man who was sleeping on a New York City subway car.  CARRERO previously pled guilty to arson on March 5, 2026, and was sentenced today by U.S. District Judge Lewis J. Liman.

“Setting fire to another person is a breathtaking, horrific, and unconscionable crime,” said U.S. Attorney Jay Clayton.  “Thanks to first responders and the women and men of the NYPD and the FDNY, the victim’s life was saved, and a horrific tragedy was averted.  Subway safety is front of mind for our Office, the NYPD, and our federal partners.  Today’s sentence demonstrates that anyone who terrorizes New Yorkers on the subway or anywhere else will face swift justice.”

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

In the early morning hours of December 1, 2025, CARRERO boarded a New York City subway car at the 34th Street – Penn Station subway stop.  He picked up a piece of paper (depicted in the screenshot below) and used it to set fire to a man asleep on the train.  CARRERO stepped back onto the platform as the doors closed, leaving the victim locked inside the car to burn as the train departed.

Video from inside the train car shows that as the train traveled north towards the next station, the fire flared up, engulfing the victim’s legs and a portion of the train car in flames.  When the train arrived at 42nd Street – Times Square, the victim emerged, burning from the train (depicted in a screenshot below).

Minutes later, first responders at the station rushed to extinguish the flames.  The victim was transported to the hospital in critical condition after sustaining life-threatening injuries from the fire.

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In addition to his prison sentence, CARRERO, 19, of New York, New York, was sentenced to three years of supervised release and ordered to pay restitution.

Mr. Clayton praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York City Police Department and the New York City Fire Department Fire Marshals.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Cameron Molis is in charge of the prosecution.